Annual Report (audited) must be distributed

One more example of failure of the HOA's board of directors has occurred. The board of directors has failed to distribute the annual report (audit) to all the Members (homeowners) of the HOA.

Does the board know this? Did it know this and fail to follow the By-Laws?

Ignorance is one matter. Intentional disregard is another. Which is it?

By-Laws. Art. III, C, 

Section 19. Accounts and Reports. The following management standards of performance will be followed unless the Board by resolution specifically determines otherwise:  

(g) an annual report consisting of at least the following shall be distributed to all Members within one hundred twenty (120) days after the close of the fiscal year: (1) a balance sheet; (2) an operating (income) statement; and (3) a statement of changes in financial position for the fiscal year. The annual report referred to above shall be prepared on an audited or reviewed basis, as determined by the Board, by an independent public accountant; provided, upon written request of any holder, guarantor or insurer of any first Mortgage on a Unit, the Association shall provide an audited financial statement. During the Class “B” Control Period, the annual report shall include certified financial statements. 

The fiscal year of the Association ends on December 31. One hundred twenty days after December 31, 2023 was April 30, 2023.  The board may have received it by April 30, because there is an Auditor's Management Report ("Communications to Management and Those Charged With Governance”) dated April 26, 2023. 

The Auditor was at the June 6, 2023 board meeting. The Board had had the Audit for more than a month, yet did not ask any questions of the Auditor. The public had (has) not seen the Audit and was unprepared to ask questions.

Did the Board ever resolve to do otherwise? If it did (and if it did that many years ago), should such a Resolution be re-stated now to inform the current property owners?

Should all Resolutions of the Board be stated online in a separate category on the HOA's website?

If you are a homeowner, did you receive your copy of the annual report (audited)?

Publishing the annual report (audit) on the website is not sufficient to meet this requirement, because only about 1,800 of the 2,840 Members have filed email addresses on the website. That 1,800-number was provided to me by the office, when I inquired how many households received The Summit Scoop by email each month.

Is there an alternative to sending the annual report by mail to all 2,480 Members? I can think of a couple of alternatives? Can anyone on the board or at CAMS think of them?

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