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Board confronts large receivables, considers liens and costly forensic audit
Summary
Board reported accounts receivable near $600,000, discussed setting a collection cutoff and issuing blanket liens on properties with large unpaid balances, and weighed a costly forensic audit versus internal cleanup and hiring a specialist.
The board described a substantial accounts receivable problem and discussed collection options, including a cutoff threshold for pursuit and the possibility of filing blanket liens on properties that exceed the cutoff.
Speaker 2 reported the association’s receivables “close to 600,000,” and said the board is preparing letters and may pursue liens on properties above an agreed dollar threshold. Audit committee members cautioned that a forensic audit would be expensive; Speaker 11 (Tom Mason) recommended hiring qualified external auditors if the board chooses that path, while others proposed targeted clean-up and hiring a specialist to finish prior work.
Members discussed hiring an experienced accounting lead or retaining Janice (current staff) on hourly pay to preserve institutional knowledge during the transition; estimated outside-billing rates cited ranged from about $85 to $200 per hour depending on scope and personnel. The board directed staff to develop a concrete collection policy and to return with cost estimates for an audit and for short-term contracted accounting support.
