Audit: HOA Tax Liability? Voting? Property?

Does anyone wonder why the HOA has not posted the 2022 Annual Audit? It was presented to the Board on June 6, 2023 and could have been posted to the HOA's website on June 7th.

Today is July 9th. It's still not there. Why not? You might consider asking the Treasurer, Vernell Butler, whose email address is vernellbutler88@yahoo.com

The 2021 Annual Audit carries these important statements in the Notes, which begin on Page 6. 

Income Taxes
"Tax years 2019, 2020, and 2021 remain open with major tax jurisdictions."

What will the 2022 Annual Audit say?

SCA is a South Carolina not-for-profit corporation, and it elected to file as a homeowners' association under IRC §528 in 2021. How did it file in all the previous years?

Membership and Voting Rights

The Audit fails to clarify what voting rights are described. A homeowner only gets to vote for a Neighborhood Representative, not for any Directors on the Board.

Because no Neighborhoods are holding Annual Neighborhood Meetings and Annual Neighborhood Elections, the homeowners actually have no voting rights at all.

Property and Equipment

"The Association does not have title of any property or equipment as of December 31, 2021."

This is categorically false. The Association (SCA) owns common property, according to Deeds recorded with the Richland County Register of Deeds. These parcels are clearly shown on public maps. 

What about the building housing the office? The furniture and computers in the office? Who owns computer back-ups or cloud storage? The pools? Playgrounds? The material lot and supplies off Misty Morning Drive? 

What will the 2022 Annual Audit reveal?

Why hasn't it been published?

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