What to Do When Association Funds May Be Missing

Treat the discrepancy as unresolved

A difference may reflect timing, posting, authorization, error, or misconduct. Do not label a person or event before reliable records are reviewed. Limit discussion to people who need the information and use neutral, factual language.

Promptly contact professionals who can assess authority, deadlines, communications, and next actions for the association's specific facts.

Preserve original records and context

Preserve bank statements, transaction details, images, reconciliations, invoices, approvals, emails, system logs, user lists, contracts, meeting records, and relevant policy or bond documents in their original form where possible. Record who collected each item, when, and from what source.

Avoid overwriting metadata, annotating originals, deleting accounts, or asking a suspected person to assemble the only record set. Qualified counsel and forensic accounting professionals can advise on defensible preservation and access.

• Keep originals or reliable exports and work from copies.
• Document collection dates, sources, and custodians.
• Preserve cloud, banking, manager, and device-based records.
• Restrict changes without destroying potentially relevant information.

Consider authorized safeguards without destroying evidence

Depending on existing authority and professional advice, an association may need to review transaction permissions, preserve access logs, increase monitoring, or use dual approvals while facts are assessed. Abrupt account or device changes can also affect records, operations, employment rights, and contractual obligations.

Coordinate safeguards with qualified counsel, the financial institution, accounting professionals, and appropriate technology specialists. The goal is to reduce possible continuing exposure while preserving reliable evidence and normal essential operations.

Locate coverage and obtain deadline advice

Gather all potentially relevant policies, bonds, endorsements, declarations, applications, renewals, and broker communications. Different contracts can contain notice, discovery, proof, consent, cooperation, and preservation conditions. The actual policy or bond wording controls, and no recovery should be assumed.

Ask coverage counsel and your insurance professional about notice and communications. An accountant can assess records and quantify differences; direct reporting or law-enforcement questions to counsel and the appropriate authorities.