An Inconvenient Obligation

Officers and Directors of a corporation have an obligation to safeguard the assets of the corporation and to eliminate unnecessary, wrongful or illegal expenses. What happened to over $500,000 in the past two years?

Even the officers and directors of a "little" non-profit corporation, such as The Summit Community Association, Inc. (The Summit's HOA), have this obligation. It's called Fiduciary Responsibility. They must set aside friendships and perform their fiduciary duties faithfully.

When they get even a sniff of a wrongful act, they must (keyword: must) take action. Officers and directors may be neighbors and friends. There shouldn't be opposite factions in a "small" HOA, not that The Summit's HOA is small.

For those who don't know, there are 2,480 properties in the Association. Some of the properties no longer have homes on them, due to fires. Those homes may or may not be re-built, but the property owner still pays, or is obligated to pay, the annual assessment (now $560/year).

The 2026 Proposed Budget (apparently not yet Approved) is $1,567,000, up 10.1% from $1,423,100 in 2025.

On 1/31/23 the HOA had Cash Assets of $1,970,554.24
On 1/31/24 the HOA had Cash Assets of $1,733,776.90 (down $236,777.34)
On 1/31/25 the HOA had Cash Assets of $1,612,024.81 (down $121,752.09)
On 1/31/26 the HOA had Cash Assets of $1,166,687.95 (down $445,336.86)

In two years (2024-2025) Cash Assets declined $567,088.95 (32.7%)!

Why didn't any Treasurer or CAMS alert the Board, the Voting Members, and the Members??? Why didn't the President report this decline to the Members?

The 2024-2026 litigation was wrong. The CC&Rs prohibited it. But that was only $25,-$30,000.

The $126,000 for the Annuity didn't disappear. It only changed form. Now it's a semi-liquid asset of unstated cash value (Not the $126,351.61 carried on the books). The Actual Cash Value (ACV; net of surrender charges) is easily available from the insurance company by a phone call or online. It is the ACV that belongs in the financial statement.

But where did the rest of the cash go?

The Board cannot sweep this under the rug. The Board must launch an investigation in the actions of the Board in 2024-2025. Who was on the Board during part or all of Nov. 2023 - Nov. 2025? 

President - Danny Trapp
Vice-Presidents - Brenda Bryant, Tanisha Holmes
Secretary - Tanisha Holmes, Ciara Bates, Noel Weatherbee
Treasurers - Linda Potter, LaToya Adams, William Hill
Director - Patricia Pollin*
Director - Dennis Rybicki
Director - Tommie Williams

* Pollin was appointed to the Board (Nov. 2023) but was never eligible to be appointed to or to serve on the Board. The term to which she was appointed expired in November 2025.)

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