August 2023 Financial Statement - now on HOA website

For Association Members (that's you, the homeowner) who are beginning to follow the financial reports of the HOA, the August 2023 Financial Statement has finally been published on the website. Go to www.summithomeowners.com Then hover over RESIDENTS; click on DOCUMENTS; click on Financial Operating Results; click on August 2023.

On Page 1 you'll notice a worthless graph that includes erroneous datapoints for Aug 22 to Apr 23. 

See the Manager Notes. "Overall The Summit's Financials are very strong and currently are operating under budget." That tells you exactly nothing. If the financials are very strong, why is the Board considering a 10% increase in dues?

Do you notice immediately what is missing? Maybe this explains the delay in releasing the August 2023 Financial Statement.

There is no report of the delinquent dues! The numbers for Current, Over 30, Over 60, and Over 90, and the Total Accounts Receivables are missing. They are not reported.

However, this sentence, in Bold, was carelessly left in the report: "Variances are based off of YTD numbers." What variances?

Why didn't the Treasurer explain this at the October 3, 2023 regular board meeting? Why didn't any board member ask? Why wasn't the CAMS property manager asked to explain the missing information?

The only clue to delinquent accounts is found on Line 1200 of the Balance Sheet. Accounts Receivables, as of 8/31/2023, total $498,271.51.

How does that compare with 7/31/2023?

7/31/2023 $570,056.02

8/31/2023 $498,271.51

The change of $71,784.51 is meaningless without an explanation. Was a portion of that from homeowners who had not paid their 7/1/2023 dues by July 31? Was a portion from other delinquent dues? Did the attorney collect some of it?

Line 1300 Allowance of Uncollectable Accounts ($471,162.07) is 94.6% of the Receivables.  Shouldn't that concern the board? Who determines that allowance? No explanation for that was given at the October 3, 2023 board meeting? Is it time for the HOA to retain an independent CPA as its accountant?

Why is there $903,322.51 in cash in Operating Funds? The cost to operate the HOA is an average of $121,170 per month.

What are Pre-Paid Assessments? Have some homeowners paid their January 1, 2024 dues far ahead of time? How likely is that?

What is $421,600 in Deferred Revenue?

What is the $28,261.38 to SCS for Administrative Costs (Line 2330 on the Balance Sheet)? Is that a monthly debt? Why isn't this on the Income &  Expense Statement? That's just this month of August. SCS is an affiliate or subsidiary of CAMS. If it is a Current Liability, doesn't it get paid "currently"? If it gets paid monthly, but the next month's liability is about the same, what is the expense for? That's over $300,000 for the year, and it is in addition to the $140,000 for office staff compensation (Line 6005; misleadingly named as "On-Site Maintenance") and $75,500 for Management Fee's [sic] (Line 6000).

Why was $5,280 paid to RCSD for the Courtesy Patrol (Line 6050)? The Special Duty Agreement was canceled as of 8/30/2023. The September 2023 board meeting Minutes include, in part, "Research could not find any evidence that showed a reduction in crime."  The August payment must have been for July hours. Who ordered so much deputy time (110 hours) for a program that was failing to deliver benefits? 

How could Water (Line 7010) be ($5881.17)? Did the HOA get a big refund from the City of Columbia? Why didn't the Board members ask about that? Maybe because the Board members didn't get the financial statement far enough in advance of the board meeting to examine them? Didn't Vernell say that at the October 3rd board meeting?