May Legal Expenses $13,643.41 (CORRECTION: $8,269.92)

Edit: An error in this blogpost was realized on 8/1/25 and corrected.


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. The correct amount is $8,269.92. How much of that was for the lawsuit against Gus Philpott (me)? 

Line 4219 is "Attorney Legal Fee". This is where a problem may be in the March 31, 2025 monthly report. Line 4219 is listed under Income in the Financials.

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 (CORRECTION: received) $5,373.49 in legal fees (Line 4219). This is in error. The $5,373.49 is recorded as Income, but no source is indicated in Notes.

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

The March 2025 financial statement shows -$4,964.74 (which means expenditure (or adjustment), not income) on Line 4219. What was that expenditure for?

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) for in March 2025? A negative expense (CORRECTION: income) is an income (CORRECTION: expense) item (or an adjustment). What was it for?

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

Who directed something to happen that resulted a positive negative adjustment ($4,964.74)? Where did that money go? 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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