Why the errors in financial reports?

The following email was sent yesterday (June 21, 2023) to all HOA board members and members of the Finance Committee.


Good afternoon, Board Members,

Have you noticed that the 2022 Auditor's Report has not yet been posted to the HOA's website? The board meeting was June 6. What is CAMS waiting for? Did you read the Auditor's Management Report carefully? If you are truly transparent, you will post that to the website, too.

The 4/30/2023 Financials have not been posted to the HOA's website. They can be viewed in the June Minutes, but why hasn't CAMS posted them to the HOA's website in the section for "Financial Operating Results"?

Have you spotted the errors in the Manager Report for aging that is part of the June 6th Minutes? Look at the "Members Receivables"? Do you see the error? It's easy to spot, when you round off the numbers and add 9+18+420 in your head; it's nowhere near 471.

$    8,908.49 over 30 days
$  17,675.46 over 60 days
$420,449.59 over 90 days
$471,997.82 TOTAL (according to CAMS)

EXCEPT those three amounts do not total $471,997.82

The correct total is $447,033.54!

How does a simple error like that occur? It's carelessness! Or worse.

Look at the fancy graph that has been created. The Operating Cash Report for 4/30/2023 shows Reconciled Operating Cash of $307,943.31.

A month before, the 3/31/2023 Operating Cash was $823,002.35. Where is the other half-million?

Look for the blue line on the chart for Operating Cash (not Net Cash). It's not there. Who created the incomplete chart?

Didn't the Treasurer look at the Financial Reports prepared by CAMS before they were to be presented to the Board? Ask him. Did he?

At the July 11th board meeting, will Motions be made to correct these errors? Or will you just allow Justin to state that the Minutes are correct (when they are not).

Did you notice that APR or APY is still not reported for six (6) cash accounts? And that some accounts were still earning 0.01% and 0.35%?

What does BOD mean on the Reserve Accounts? What is the meaning for those accounts that are not labeled BOD? And why is "Liability Insurance Coverage" shown for the BB&T account? You should be demanding clear, complete answers about these questions.

Now, before Vernell once again tells me I am due no answers, I already know that. However, his email will arrive about three minutes after I send this. I know that I am not entitled to the answers. But you are, as are all the Homeowner-Members of the HOA. I think you're just lucky that a homeowner who is a CPA is not paying attention!

Board Members, your fiduciary responsibility obligates you to determine honest answers to these questions. Please don't just sit there during board meetings without asking vital questions. Do you get these reports before the board meetings, so that you can examine them and be prepared to ask questions?

Gus Philpott
Resident, Barony Place II

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