Keeping the peace in strata housing

AS an accountant and also a certified fraud examiner in risk advisory for over 11 years, I have seen and helped a variety of clients.

In the past two years, I have seen an increase in the number of enquiries and issues involving the operations of a joint management body (JMB)/management corporation (MC).

While collection and dealing with vendor performance continue to be the main issues, there appears to be an increase in cash theft and asset misappropriation of late.

Here are some suggestions to consider to avoid these issues.

1. Stop accepting cash over the counter for maintenance/sinking fund payments, and direct all monies to the JMB’s bank account(s). It might be difficult to avoid accepting cash for temporary deposits and other payments, but don’t do it if you can. Consider eWallet and other payment protocols. You can also switch to payment apps.

2. Do not pre-sign cheques. The authorised signatories should take a couple of hours a month to go through the monthly payment listing and sign cheques at that time. If you spot an unfamiliar vendor or payee, ask your building manager (BM) or property management agency (PMA) for additional details. Trust but verify.

3. Do not leave the cheque book(s) in the JMB office. Keep them safe. It is not difficult to fake a signature that you often see. If possible, move away from cheques and make all payments using online banking with a separate maker and authoriser. Do not share access credentials with one another.

4. Occasionally ask the residents via your usual communication methods if they are getting official receipts for payments made. If issues are noted, discuss them with your BM/PMA promptly.

5. Obtain quotes for services independently. Overly relying on your BM/PMA may create opportunities for issues to crop up later.

JEEVA RAJOO

Petaling Jaya