May Legal Expenses $13,643.41

Legal expenses are reported on two different lines in the financial statements. 

In May 2025 the HOA paid out a whopping $13,643.41 in legal fees. How much of that was for the lawsuit against Gus Philpott (me)?

Line 4219 is "Attorney Legal Fees". This is where a problem is in the March 31, 2025 monthly report.

Line 6500 is "Legal/Professional Fees". This is the Line I have been watching. 

First, Line 6500. In May 2025 the HOA paid out $8,269.92, bringing the YTD total to $13,024.69. My guess was the HOA was finally catching up on billed legal fees from Turner Padget.

HOWEVER, also in May 2025 the HOA paid $5,373.49 in legal fees (Line 4219).

THE PROBLEM? Year-to-Date (YTD) total for Line 4219 is only $1,362.22. 

The YTD total for Line 4219, as of March 31, 2025, was ($4,256.74). How could that be? Here's how, but not why:

  Line 4219      Month         YTD

$     508.47 Jan 31, 2025  $508.47

$     200.00 Feb. 28, 2025 $708.47

($4,964.74) Mar. 31, 2025 ($4,256.74)

$    245.00 Apr. 30, 2025 ($4,011.27)

$ 5,373.49 May 31, 2025 $1,362.22

What is that ($4,964.74) in March 2025? A negative expense is an income item (or an adjustment). What was it?

Did any Board Member question it? Did any member of the Finance Committee question it?

Who directed something to happen that resulted a positive adjustment of $4,964.74? Where did that money come from? Was it a transfer of funds? Should that have been a Board decision and reported in the Minutes?

For sure, no one will tell me. But, if you ask, you are entitled to a satisfactory and complete explanation. You can tell me. And I'll publish it here.

What's going on here? If there is smoke, is there a fire?

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