Management Company Takes Our Late Fees

[marilene]

My question involves a condominium located in the State of: California

I am the treasurer of a small HOA. I just found out that our management company is charging us the monthly $5.00 late charge (that we charge homeowners when their dues are late) and then we are suppose to be reimbursed from the homeowner if they pay their bill. Is this normal? The late charge should not be money out of our pocket, its just a penalty imposed on late payers. Even though it is a minimum amount, why should they get the money when we might not even get it.

Please let me know if anyone has had this same issue and if this is normal procedures.
By the way, sending late notices if part of the management company's job, we pay copies and postage but that should be it.

[Mr. Knowitall]

What does your contract with the management company say about the collection of late fees, and who is entitled to those fees?