November Variances - Look at These!

Every month in the Financial Overview Report is a listing of the Operating Expenses - "Significant Variance to Budget".

That Report is posted on the HOA's website and is available on the back table at Board Meetings.

Every month the Variances receive absolutely no mention during the board meetings. No comment is made by the Treasurer. No comment is made by the President. No comment is made by the on-site Property Manager. No questions are asked by the Board members. No questions are asked by the Members (a/k/a homeowners). No questions are asked by members of the Finance Committee.

At least one important piece of information is missing from the Variance report every month. That is the Total of the variances.

What are the Variances? What is the Total?

The Variances are the amounts over-spent by the Board, which controls the Budget. If the Total were shown, it would be like a huge red flag waving at the Board members, the Voting Members, and the Members (homeowners).

The November Financial Overview Report is available now on the HOA's website.

The November Report will be available at the January 7, 2025 monthly Board Meeting. Pick up a copy of the Financial Overview Report. For November, the variances will be on Page 2, following the useless graph on Page 1.

The Total of the Variances could be shown, but it is not. 

The Total of the YTD (Year-to-Date) Variance(s) is $120,007.53. Note that the sixth-largest variance (by dollar amount), Legal/Professional Fees of $9,116.81, is not even listed on the Variance Report! Why not??? Was CAMS told to leave it off?

For the first 11 months of 2024, the Board over-spent the budget in 12 categories by $129,000! Add that doesn't include the starting deficit of almost $28,000. Not a word was said in a public, open Board Meeting. Never was a vote taken to continue over-spending. Did they discuss this in any pre-board meeting? Did they even look at the Variances?

Look at the "YTD Variance" column. Many readers will think that a number in parentheses means that category is under-spent. It is just the opposite! This is the amount over-spent!

Look at the "YTD %" column. Again, is a negative-number misleading? For the Electricity/Lighting Repair item (GL-5010) the "-95%" means that category is over-spent.

See the "U" in the last column?  That "U" means "Unfavorable". See the tiny font at the bottom of the section? Get out your magnifying glass. 

Read the reason (excuse) for the over-spending.

Pay special attention to the excuse given for GL-6005 On-Site Staff. "The board is aware as to the reason this is over budget, and it will remain over budget the remainder of the year."

No financial officer of a business would accept that "reason". Whoever prepared the Report might as well write, "We're not going to tell you the reason; it's none of your business. We're in charge here; not you."

Where is Donald Trump when you need him? "You're fired!"

For Line 6260 Office Supplies, aren't software and a printer capital expenses? Why is a finger pointed at the treasurer? Will the Auditor agree that they should be expensed?

Look at GL-6265 Janitorial Service. The 2024 Budget was $5,000. The monthly charge is $1,550, which is $18,600 for the year. Is it misleading to state the budget for a year, but give the charge as monthly?

See also GL 5111 Irrigation Contract. The budget was $75,000, but the contract is $10,140 (which is $121,680 for the year)!

The HOA is not playing Monopoly™. This is real money. Your money!

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