Uncollectibles > Outstanding Dues. How?

In the June 30, 2023 financials that were released at the August 8th board meeting, some numbers just don't make sense. See if you agree.

Total Receivables (Line 1200) are $432,483.29.

Allowance for Uncollectible Accounts (Line 1300) is $454,495.41.

Why does the Uncollectible total exceed the Accounts Receivables?

At one point in the meeting the Treasurer said it was too complicated for people to  understand. Was he talking about this? It was hard to tell because he did not speak up so all could hear, and the board does not use the portable sound system that it did when pre-COVID meetings were held at The Haven.

How long has Line 1300 exceeded Line 1200 on the Balance Sheets? Only one year, but look at the other years.

                        Line 1200        Line 1300
                            A/Rs          Uncollectible?
6/30/2023     $432,483.29     ($454,495.41)
6/30/2022     $380,067.12     ($356,929.45)
6/30/2021     $350,934.33     ($295,373.44)
6/30/2020     $457,924.06     ($139,077.98)
6/30/2019     $459,707.06     ($  20,566.00)
6/30/2018     $561,714.00     ($  11,161.00)

Shortly after George Reynolds died in April 2021, I urged the board to have a forensic audit conducted. George had been the Treasurer for many years, and I believe that, anytime a long-time treasurer leaves or dies, a complete audit should be done.

Then Paul Hill took over as Treasurer, but he died in April 2022.

Then Vernell Butler took over as Treasurer. With a succession of treasurers, I again urged the board to have a forensic audit done. As Justin and Vernell often tell me, "You're not a member, and we don't have to do anything you say."

An annual audit is not the same thing as a forensic audit.

The Procedures Reference Manual (viewable on the HOA's website) contains this important instruction. Are the Board, the Finance Committee members, and the Property Manager aware of it?

Article III, Section C, ¶3 Bad Debt Write-off Procedures (Page 17). 

a. At the end of each year the Property Manager will review all delinquent property accounts
    to determine those accounts that are deemed to be "uncollectible"
b. Accounts will be deemed "uncollectible" if:
  • All collection steps have been exhausted.
  • The property is under pending foreclosure or,
  • The property has been abandoned and there is no contact information.
c. The Bad Debt Write Off list will be reviewed by the Finance Committee and any
    questions researched by the Property Manager.
d. When the Finance Committee is satisfied that the list is accurate, it will be presented to
    the full Board for approveal.

Question to the Finance Committee and the Board: Have any bad debts been written off in any recent year? Why not? 

Harken ye to the proclamations of the Treasurer:
"The finances are in good shape..." Minutes, 6/6/2023
"...the finances are in better shape than ever..." Minutes, 9/6/2022
"...the finances are in good shape." Minutes, 6/7/22

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