Category Archives: Finances

ARE RECEIVERSHIPS EVER A GOOD IDEA?

Regardless of what issues your community may be facing, receivership should only be considered as an absolute last resort, and only in the most dire of circumstances. Receiverships are expensive, time-consuming and transfer decision/making power to someone outside of the … Continue reading

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Budgeting and Reserve Funding for Your Association is a must!

By: Beth Mulcahy, Esq. Here are our Quick Tips for the Annual Budgeting Process that will make sure your board is assessing the current and future needs of the association. In a planned community, the budget must be approved by … Continue reading

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Fraud and Embezzlement in Your Association-How to Spot It & How to Avoid It

It has happened; there are funds missing from the checking account. Figures do not line up and you cannot get in touch with anyone. The board always sees a financial statement at each board meeting, so what went wrong? Any … Continue reading

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Bankruptcy 411

By Beth Mulcahy, Esq. When a homeowner files a bankruptcy (and lists an association as a creditor in the bankruptcy), there is an automatic stay in place, which prohibits the association from proceeding forward with collection against the owner or … Continue reading

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Financial Controls to Help Prevent Embezzlement and Fraud

Our law firm suggests that boards have the following accounting and financial controls in place to prevent embezzlement and fraud in their association: 1. Keep association records up to date; 2. Assign control of all reserve funds to the entire … Continue reading

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Reserve Studies 411

by Beth Mulcahy, Esq. Our association board is considering hiring a company to prepare a reserve study but we aren’t really sure what a reserve study is. Can you define a reserve study for us? How much do reserve studies cost? A … Continue reading

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Is an Association Required to Have an Audit Done Every Year?

By Beth Mulcahy, Esq. It’s that time of the year again… Fiscal year 2015 has ended for most of our association clients and boards are now considering the next requirements with regard to the association’s 2015 financial books and records. … Continue reading

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Mulcahy Law Firm, P. C.: Collecting Assessments is Easier through Prompt Action!

Board members often tell Mulcahy Law Firm, P.C. that collecting delinquent assessments is one of the most difficult duties they have to oversee.   This blog will provide a few quick tips to help boards more effectively collect delinquent assessments. First, … Continue reading

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Mulcahy Law Firm, P.C.: Fraud and Embezzlement in Your Association-How to Spot It & How to Avoid It

It has happened; there are funds missing from the checking account. Figures do not line up and you cannot get in touch with anyone. The board always sees a financial statement at each board meeting, so what went wrong? Any … Continue reading

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What is a Disclosure Statement and Who Can Charge it?

By Beth Mulcahy, Esq. An association may charge a “disclosure fee” to compensate the association for the costs incurred in the preparation of a disclosure statement furnished by the association pursuant to A.R.S. Section 33-1806 (planned community)/33-1260 (condo). Requirements for … Continue reading

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