PCAM APPLICATION | PAGE 11
III. Code Clarification Document (continued)
4. Undertake only those engagements that they can reasonably expect to perform with professional
competence; the Manager shall provide accurate information within his area of expertise and refrain from
the unauthorized practice of other professions. No manager should provide any service or advice that is
outside his or her field of competence which includes dispensing of professional advice that falls under the
auspices of other disciplines such as legal representatives, engineers and contractors.
5. Exercise due care and exhibit planning and supervision as specified in the written management agree-
ment, job description, or duly adopted Board policies. The intent of this statement is for the Manager
to make a good faith effort to operate within the framework of the applicable employment/agent relation-
ship and to abide by the terms of said agreement. Any failure of the Manager to fully comply with this
requirement shall not be considered relevant unless the failure is material and/or willful.
6. Disclosure of any possible conflict of interest is the key here. An example may be of assistance. A Man-
ager (individually or through a company) may have financial interest in a service contractor, supplier, or
professional firm that is being considered by that Manager’s client. Disclosure must be in writing and suf-
ficiently in advance of the selection process to allow full consideration of the possible conflicts and any
alternatives. The fact that the client may still choose the Manager’s related entity is not a violation of the
Code, provided ample disclosure was given.
7. Provide written disclosure to the client of any compensation, gratuity or other from of remuneration
from individuals or companies who act or may act on behalf of the client. Written disclosure shall be
made to the client by the Manager, confirming receipt of all commissions, rebates, discounts, payments,
or other benefits received in excess of $200.00 annually by the Manager from any vendor or vendor relat-
ed client.
8. CAI recognizes that insuring that homeowners have timely notice or that their appeal rights are
protected is limited by the extent that the Manager can influence his or her client. Thus, a Manager who
makes reasonable efforts to properly advise the client has complied with this standard, even if the client
chooses to reject the Manager’s advice.
9. Disclose to the client the extent of fidelity or other contractually required insurance carried on behalf of
the Manager and/or client and any subsequent changes in coverage, which occur during the Manager’s
engagement if the amount is lower than the contract amount requires. This standard does not require
the Manager to carry fidelity insurance unless an AAMC company or required by the contract. The change is
based upon any decrease in contractually disclosed/required coverage and/or fidelity bond coverage.
10. If the Manager is responsible for handling funds for a client, that client must have at least one, indepen-
dent cash account. This standard does not preclude a Manager from initially depositing payments into a
central account with funds promptly distributed to individual client accounts, nor does it prohibit a cen-
tral disbursement or payroll account that is promptly reimbursed by each client’s individual cash account.
When a Manager’s engagement has ended for a client, all funds must be returned to the client the earlier
of:
z the time limit under state statute, or
z the time limit in the existing management agreement, or
z within 30 days of the end of the Manager’s engagement (see also #12)
The Manager shall prepare and furnish to the client accurate and timely financial reports in accordance
with the terms of the management agreement, job description or duly adopted Board policies.
11. Original records, files, and books are those items that were given to the Manager at the beginning of
his or her engagement or were developed by the Manager and/or the client during the period of the
Manager’s engagement. This definition may be further expanded by the management agreement. Unless
provided in such an agreement or otherwise, the Manager has no obligation to provide the client with
client-related computerized data unless the client owns the computer and software and such data can be
separated from that data and software which are proprietary to the Manager. For example, if the Manager
is a company that maintains homeowner information on its central computer, the Manager shall provide
a printout of the homeowner information for the client, but need not provide that data via disk or tape.
