Did HOA Lose $1,057 every day in 2023?

2023 Annual Audit - A Net Operating LOSS of $155.61 per home!!! (Page 10)

I have to wonder how many of the Board Members and the Finance Committee Members have studied the 2023 Annual Audit that was finally released to Members last night at the January BOD meeting. How many understand what it really says?

The Auditor's Report is dated September 20, 2024. The Board would have received it on or about that date. Number of days between September 20 and January 7? 109 days  

Did they just glance at it and sigh with relief that the Auditor gave the HOA a "clean" audit?

The Board had it for more than three months before they released it! Why wasn't it released much sooner? Had it been released sooner, Members in the audience could have asked the Auditor important questions. (I'm not allowed to ask questions.)

It had to be available to the Finance Committee as they worked on the 2025 Budget. Or did the Board keep it from the Finance Committee?

The next-to-last page tells the story that all need to hear and know.

The Net Operating Income for 2023 was ($385,903) !!! A number in parentheses means a Loss.

Why wouldn't the Board, in recognition of their fiduciary duty, increase the Annual Assessment for 2025 by $50.00 per home? That wouldn't be enough, but it is the highest possible without a vote of the Voting Members. And there aren't enough legitimate Voting Members to make a quorum for a meeting!

($385,903) for the year is ($155.61) per home. A Net Operating LOSS of $155.61 per home!!!

THAT is the story the Auditor should have told. The Auditor works for, and is paid by, the HOA (the Members). She doesn't work for the Board, and she doesn't work for CAMS. What if she had said, "Your HOA lost $1,057 every day in 2023."

On the same page, "Reserve Transfer Reclassification was $314,677", resulting in a "Total Net Income (Loss) of ($71.226)."

Does this mean that Reserves were spent on Operating Expenses?

Perhaps Brent Mikula, a homeowner, CPA, and member of the Finance Committee (who, along with Vicki McCarthy didn't want me at the December 2024 Finance Committee meeting) could be asked to tell Members in plain English at the February Board meeting just how bad the financial condition of the HOA really is.


Please share this widely in The Summit by using the "Share" button at the top-right and the lower-left of this page. Your "Share" is confidential. I do not have access to any email address used.

Comments

Post a Comment

Popular posts from this blog

Annual Meeting, Barony Place Neighborhood - continued to 5/4/2024

Barony Place Neighborhood (Barony Place I and Barony Place II attempted to hold a Neighborhood Meeting this afternoon. Of the 78 homes, seventeen (17) homes were represented, and that was not sufficient to meet the quorum requirement of 26. The meeting was continued to Saturday, May 4, 2024, 1:00PM, at 44 Barony Place Circle. An effort will be made to have at least 26 homes represented in-person or by proxy. Three homeowners have volunteered to be on the Neighborhood Committee: Tracy Manderino (Barony Place II), Della Glynn (Barony Place II) and Gwen Hayes (Barony Place I). If a quorum is present on May 4th, those present, including by proxy, will elect the Neighborhood Committee. Once the Committee has been elected, it will select one of its three committee members to be the Voting Member for the next 12 months. The other two members will be Alternates. A new announcement will be distributed to your newspaper box, along with a proxy. If you will not attend Saturday's meeting, plea...
Read more

Open Letter to Barony Place "Voting Member"

An open letter to the "Voting Member" of Barony Place Neighborhood. Good morning, Billie, If you and/or an Alternate attended last night's board of directors meeting, will you please send out a recap of the meeting to Ann Stirlen and me (and to all the homeowners and residents in Barony Place)? About a dozen homeowners from throughout The Summit showed up for the board meeting  at the church  last night, only to learn from one person that it had been switched to Zoom, which allowed the board to meet in secret. Many of them had not received the email from the office that the board was (illegitimately) closing the meeting to homeowners. There are only about 1,800 (73%) email addresses of the 2,480 Members in the website database. I attempted to join the meeting on Zoom, as I am Attorney-in-Fact for Ann Stirlen, but I was not admitted to the meeting. The HOA's attorney has quoted a section in the By-Laws that she believes allows the Board to close the meetings. That spec...
Read more

Special Assessment Possible?

How would you feel about a $3,000 Special Assessment levied by the HOA against you and every other HOA Member (homeowner)? Article X, Section 4 in the CC&Rs allows this. Are you aware of that? Should the Board do everything possible to eliminate the possibility of such a Special Assessment? What is the Board doing that might just lead directly to such an Assessment? The HOA, by actions of the President (Justin Martin), the Treasurer (Vernell Butler, and the Safety Committee Chair (Dennis Rybicki) entered into a contact with the Richland County Sheriff's Department, effective February 1, 2023. They arranged for special patrols in the Summit at a cost of $48.00/hour. In the Special Duty Agreement is a Liability clause. It reads,  "The Requestor will hold harmless the Richland County Sheriff's Department from any and all claims or liabilities resulting from service and indemnify RCSD for any loss due to any injury of its employee unless there is a determination of neglige...
Read more