Condo association assessed for reserves, but spent on condo fees

Last year, all owners in our condo association were assessed to pay the dues, and electric bills of a unit that was in foreclosure. The owner had moved out, leaving the place empty. The bank has settled and the condo unit has now been sold. Our condo board has decided, instead of reimbursing each unit owner their money, they are going to put the money toward one month of our dues. Those who have pre-paid for the entire year, will have to deduct from the first month dues in 2011. It is my understanding a reimbursement of assessment money was to be given back to owners, or put into a special assessment reserve, to be used toward other assessments. Can the board put the money toward our dues with, or without our approval? I would also like to know if the board can assess unit owners for the purpose of balancing the budget?
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