This time, a Board President of an Idaho homeowner’s association took $20,000 from his association. This type of thievery happens every day in all different types of organizations. It happens in community associations like this one, churches, private clubs, nonprofits, etc. Whether you’re a volunteer board member in a condominium, religious organization, nonprofit or some other type of organization, you have the same fiduciary duty to look out for the best interest of your organization and all of its members. When you sit back, do not review records and prepare for meetings, miss meetings, etc. you are creating risk for your organization and perhaps yourself personally.
In this case, board members didn’t satisfy their fiduciary responsibilities. It took them three years to review records and learn of the inappropriate actions of their Board President. It was reported it wasn’t until “another executive member proceeded to gather bank statements for the association’s accounts, along with copies of checks and deposit slips” did he learn of the theft. Board members should have had access to those financial documents and reviewing them regularly to make sure their organization’s members’ moneys were protected.
Board membership is serious business and there is no excuse for not protecting your organization and yourself from risk.
Read about this Idaho HOA Board’s Experience with a President Thief.