CAI-NJ March 2017

has the fiduciary duty to act in the best interest of the association. How Can Associations Protect Themselves It is certainly eye opening to con- sider the funds the members of the association are contributing monthly could be syphoned and not used for their intended purpose. It is very important that all board members have an understanding of the controls in place with their management com- pany or in-house staff to mitigate risks. Once the procedures and policies are outlined and in place it is even more important to ensure that those proce- dures are being properly followed. An organization can have the best proce- dures and policies, but if they are not properly implemented they have little actual value to the association. A few CONT I NU E S ON PAGE 49

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