This article examines one of the most overlooked financial oversight controls in condominium and HOA governance: board review of monthly bank and investment statements and reconciliations. It explains why auditors consider the absence of this review a significant fraud risk factor, how weak monitoring creates opportunities for misappropriation and financial misstatements, and what effective board oversight should look like in practice. The article also discusses fiduciary responsibilities, internal controls, and why some jurisdictions legally require these reviews.
