How do you know if you need CONDO PARTNER? Here are some of the common misconceptions condo board members and property managers experience:
- Board member: “We already pay the condo manager to deal with all the risks and daily issues. Why do I need CONDO PARTNER?”
- Each board members is legally responsible for oversight of the corporation independent of the activities of the property manager (Condo Act 1998).
- When was the last time your board performed a formal annual audit of the condo corporation’s risks and assessed the internal controls as part of the process underpinning the auditor’s annual statement to shareholders?
- The property manager must also independently sign off on the annual assessment of risks and controls. When was the last time the condo manager participated in a formal annual assessment of the corporation’s risks and internal controls?
- Board member and Property manager: “We have insurance in place for both the corporation and for board member liability, so we are covered no matter what.”
- Is the insurance coverage adequate – how much do you have?
- Insurance coverage can be withdrawn by the insurer if they can demonstrate that there was ineffective risk management and internal controls, negligence or misleading statements with respect to the management of the corporation.
- Board member and Property manager: “If we have some annual operating budget issues, we can just pull the extra money from the reserve fund.”
- Actually no. The reserve fund is to be used for capital items based on the engineering estimates and not as an emergency piggy bank as reserve withdrawals undermine the corporation’s ability to finance required improvements and replacements of building infrastructure.
- Property manager and board members: “We already have an operating manual so we don’t need any controls.”
- Are you sure? When was the last time those controls were validated for effectiveness?