Is the HOA a charity?

The Summit's HOA is a South Carolina non-profit corporation. But is it a charity? Absolutely not!

There are 2,480 properties that are assessed dues. The annual dues are $510. The HOA should be collecting $1,264,800 each year. Every year.

But how much is the HOA really collecting? It's hard to know, because the HOA is on the accrual method of accounting. The financial statements assume all money is being collected. We know ...

It. Is. Not.

In 2024 $100,000 was set aside for Bad Debt Expense (Line 5020). 

What amount is set aside in the 2025 Budget? $0.00. Nothing. Zilch. Nada. 

Why Nothing? So that the Budget could be balanced! If $100,000 were entered for Line 5020, then the Budget would be unbalanced, and there would be a $100,000 Deficit.

Was it the Board's hope that no one would notice the removal of Line 5020? Is it deceitful? The HOA will not collect 100% of the dues. Everyone knows that.

In fact, earlier in 2024 the HOA wrote off $100,000+ in Accounts Receivable. The Board should have discussed that in public before it did  so. There was no public discussion. There was no Motion by the Treasurer. There was no vote by the Board. It was not reported to the Members. 

Why did the Board hide that from the Members?

Is there a failure by CAMS? By the attorney handling collections? By the Board?

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