Email Mike Email
Residential Real Estate
Aug 23, 2019

The Value of Partnering with Financial Institutions

Sponsored Content provided by Mike Stonestreet - Co-Owner/President, CAMS (Community Association Management Services)

Community management companies, like the rest of the world, are being targeted for fraud and the threats are growing. This includes people attempting to cash fake checks at local banks, embezzlement, and cyber fraud via email and the internet.
 
It’s not easy or quick to determine fraud is happening, either; the average scheme takes 18 months before being detected, usually because it involves small amounts being siphoned-off over a long period of time as opposed to large amounts all at once. In fact, one study estimates it could take up to almost five years before your run-of-the-mill fraud — usually in the $145,000 range — is discovered.
 
Smaller businesses and organizations (like HOAs) often experience worse losses than big companies because they have limited resources to identify instances of fraud and implement effective anti-fraud measures. At CAMS, we are well-aware of the threats fraud poses, and work proactively with our HOAs to help develop strong internal controls and establish good relationships with partner banks.
 
All of our clients use our accounting services as part of their internal controls. These services include CAMS delivering monthly financial reports to Boards which cover cash disbursements, aged delinquencies, balance sheets, statements of revenues and expenses, GL trial balances, bank account reconciliations and copies of bank statements. This allows Boards to focus their attention on other areas like maintenance and landscaping or major amenities like pools, clubhouses, playgrounds, marinas and activity centers.
 
As previously mentioned, working with banks is an important consideration to prevent fraud. When it comes to HOAs and property management groups partnering with financial institutions, the biggest misstep I see is when professional community management companies are dealing with too many different banks. Another is management companies and community association Boards dealing with a number of unknown internet banks that may be located all over the world.
 
How can an HOA find the right financial institution to work with? I recommend that you work with banks that are familiar with the community association industry. There a lot of them out there which know the industry and products needed very well. Some of the more common anti-fraud areas banks focus on for HOAs include Positive Pay, an automated fraud detection tool matching the account number, check number, and dollar amount of each check presented for payment against a list of previously authorized checks; dual control and token authentication to protect wire transfers; and ACH (Automated Clearing House) protection for direct deposits, checks, bill payments and cash transfers between businesses and individuals.
 
Having close relationships with a reputable financial institution breeds familiarity with you and your organization’s processes, helping to build a sense of trust and making it easier for them to look out for you. Recently, we had one of our reliable partner banks call us to verify the validity of a check someone had brought in to be cashed. It turns out the check was fraudulent; within minutes, our bank sent us photos of the person trying to cash the check. We have also set certain rules with our partner banks; if they receive wiring instructions for one of our community associations, they are required to call to verify.
 
At CAMS, we’ve spent the last 28 years building a tech-savvy team of forward-thinking professionals helping our clients reach their goals of becoming strong, efficient and effective HOAs for their communities. Finding the right financial institutions to partner with our HOAs is an incredibly important part of reaching those goals.
 
Mike Stonestreet is a 30-year veteran of the professional HOA management industry who has achieved one of the highest education-based designations in the field, that of Professional Community Association Manager (PCAM). Community Association Management Services (CAMS) has been a leading association management company since its inception in 1991. CAMS is a trusted provider of management services, dedicated to holding themselves to a higher standard of service to the community associations they serve throughout North Carolina and South Carolina. To find out how CAMS can benefit your community or visit www.CAMSmgt.com.
 

Other Posts from Mike Stonestreet

Cams300pxx250pxblockadjune2018[1]
Ico insights

INSIGHTS

SPONSORS' CONTENT
Alyce 4 april242017

Duties of A Trustee: Choose Wisely

Alyce Phillips - Old North State Trust LLC
Christy2

Roof Maxx is a Roofing Disrupter

Christy West - Roof Rescue of Wilmington LLC/Roof Maxx
Burrus rob headshot 300x300

Forecasting the Future: Demystifying Two Common Assumptions in Our Economy

Robert Burrus - Cameron School of Business - UNC-Wilmington

Trending News

Boutique Hotel Opening Downtown

Johanna Cano - Sep 13, 2019

In The Current Issue

A Guide To Local Women's Professional Groups

The number of local groups to help women grow professionally and in the community continues to expand....


Banks Aim To Cash In With New Names

In the local market, at least four financial institutions with a presence here have embarked upon a name change in the past couple of years....


Contracting Company Builds Out

Teresa Woods-Cox started learning the construction industry at a young age, and these days she actively recruits women for her general contr...

Book On Business

The 2019 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

August 26, 2019 Power Breakfast: A Healthy Sale?
WILMA's Leadership Accelerator
2019 WilmingtonBiz Expo Keynote Lunch - CEO, nCino, Pierre Naude`