Operating Loss - Is the BOD Concerned?

The 2023 Annual Audit was finally released to the Members of the Association on Wednesday, January 8, 2025. It was months late. The Board received it about September 20, 2024. Why did the Board withhold it from the Members for over 100 days???

One of the reasons might be found on Page 10.

"Net Operating Income      (385,903)"

DOESN'T THAT MEAN THAT THE HOA OPERATED AT A LOSS IN 2023?

A $385,903 LOSS.

The Net Operating Loss was then mitigated by a "Reserve Transfer Reclassification" of $314,677. 

Is that the use of $314,677 from Reserves for Operations?

Should a line have been drawn for Operations, and then Reserves addressed? 

A public presentation of an Audit should be accompanied by projected slides or large posters with graphs. Most people cannot follow verbal discussions of an audit. It's even harder to follow when it's hard to hear the Auditor. The Board did not release the Audit before the meeting, so interested parties could not prepare their questions.

Perhaps Brent Mikula, a CPA and homeowner on the Finance Committee, could be asked to explain the 2023 Annual Audit "in English" and clarify how to understand the "Net Operating Loss" of almost $400,000.

Who was Treasurer for most of 2023? Vernell Butler

When Butler was not re-elected as Treasurer in November 2023, after the election of directors, he quit. He quit as Treasurer and as a Board member.

I'm pretty sure there is a rule in the Governing Documents that prohibits using Reserves for Operations. If it is allowed at all, I would think the approval of the Board would be required.

The only questions asked of the Auditor were by Jeff Lummel, a member of the Finance Committee. Unfortunately, his voice doesn't carry far, and he didn't use the microphone. 

The Board of Directors owes a clear explanation to the Members about this.

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