Investment and CD Procedures
In 2024 the HOA took money ($126,351.61) from a Reserve Account CD and purchased an Annuity. The Board has never disclosed this to Members and discussed it at a Regular Board Meeting. Who is the Annuitant? The name of this person (believed to be a current board member) has never been disclosed. Many annuities have purchase charges (commissions) and surrender charges. The value of the annuity is reported in the Financial Operating Results at its original purchase price. That is not the actual net cash value of the annuity. When the 2024 Annual Audit was finally released, the Auditor reported the value of the annuity on December 31, 2024 as $121, 440 (a loss of $4,912). The PRM (Art. III, §C, ¶9) reads, Investment and CD Procedures: The initiation of securing CDs must follow the procedure outlines below. a. The signature cards should contain 2 names from the Property Management firm (South Community Services) and 2 names from the Summit Community Association, the President and the ...