Would you fire your accountant and treasurer?

Consider just two areas of the June 30, 2023 Financial Statement of the Summit's HOA that was distributed at the August 8th board meeting.

If you were the owner of the HOA, just based on these two areas, would you fire your accounting people and treasurer?

FIRST AREA

The June 30th financial statement lists "Members Receivables". This would be the unpaid dues or, as the old-timers around here call them, "regime fees". Invoices go out in late November or December, and the dues/fees are due January 1st, late after January 31.

$  18,738.50 Current

$  10,642.25 Over 30 days

$  13,425.00 Over 60 days

$389,632.54 Over 90 days

$432,483.29 Total Member Receivables

Unpaid dues were late after January 31. So, as of June 30, how could any amounts be Current, Over 30 days, or Over 60 days. ALL unpaid dues are "Over 90 days". Right?

SECOND AREA

On the June 30, 2023 Balance Sheet the Accounts Receivable are listed as

$432,483.29 Accounts Receivable (Line 1200)

$    8,215.93 Accounts Receivable - Other (Line 1222)

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

QUESTION 1: Why would the Allowance for Uncollectible Accounts be greater than the total of Accounts Receivable?

QUESTION 2: Are ALL of the Accounts Receivable uncollectible?

The answer to Q. 1 is unknown.

The answer to Q. 2 is No. Not only "No", but absolutely No. Some of that money is collectible. A lot of it should be!

Shouldn't the Allowance for Uncollectible Accounts only be a portion of the Accounts Receivable? 

The Financial Overview Report for June 2023 includes the boilerplate statement that appears every month. "Collection Activity is being conducted in accordance with Association policy."

There is either something wrong with the Collection Activity or something wrong with the policy!!!

Back to my original question. If you were the owner of the HOA, just based on these two areas, would you fire your accounting people and treasurer?

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