Annuity: There Must Have Been a Vote; right?

For $126,351 to be moved out of a Reserve fund at South Carolina Federal Credit Union, there must have been action by the Board of Directors; right?

For $126,351 to be invested in an annuity, there must have been action by the Board of Directors; right?

What should those actions have been?
  • Receipt and study of a proposal to do so;
  • Hearing a presentation of the proposal to do so;
  • Studying and evaluating the pros and cons;
  • Being informed of any relationship between the salesman and the buyer or Annuitant;
  • Being informed who the Annuitant would be;
  • Being informed of side-by-side "numbers" (year-end values for each of the first five years), since cash might be needed for expenses for Reserve items;
  • Being informed of sales commissions and other expenses of the purchase;
  • Beng informed of any expenses for borrowing against or for terminating the annuity at various intervals.
Assuming that the transaction was finalized before the board election on November 18, 2025, who were the board members at that time?

Danny Trapp, President
Tanisha Holmes, Vice President
Noel Weatherbee, Secretary
William Hill, Treasurer
Patricia Pollin, Director
Brenda Bryant, Director
Linda Potter, Director

I don't know yet who the Annuitant is, but I don't have any reason to think it could be anyone except Danny Trapp, the Board President at the time.

Of these seven, who was privy to what was going on? Was any board member not aware of what was going on?
Trapp?
Holmes?
Weatherbee?
Hill?
Pollin?
Bryant?
Potter?

Since there is nothing recorded in any set of Minutes of Regular Board Meetings about these transactions, when was the decision made?
  • When was the annuity purchased?
  • How and when was payment delivered to the issuer of the annuity?
  • If money had to leave the credit union and be paid to the annuity issuer, who authorized that?
  • When did the Board, by majority vote, authorize that person to direct the funds from the credit union to the issuer of the annuity?
  • Who accepted delivery of the annuity after it was issued?
  • Who is the Owner of the annuity?
  • Who will receive the monthly income from the annuity on a certain date in the future?
  • Where is the annuity held?
  • Because it is carried on the 1/31/2026 Financial Report as "BOD - SC Federal Credit Union Annuity 60.2029 (Unreconciled)", was the Credit Union involved in the sale of the annuity?
Perhaps ALL the withdrawals from Reservc funds in the past ten years should be audited, including who authorized the withdrawals and how the withdrawals were documents in Minutes of Board Meetings.

Comments

Post a Comment

Popular posts from this blog

June 3rd BOD Meeting now Closed to Members

The HOA office sent out an email at 3:29PM that read, in part, Due to Brookland Baptist Church being unavailable to accommodate the scheduled Board of Directors meeting on June 3rd, the meeting will now be held at the Summit Association office. Please note that space is limited at this location; therefore, only Voting Members and Committee Chairs will be invited to attend in person. One would think they would splash a message on the homepage of the HOA's website and change the location in the Calendar on the website; but No to both.  This last-minute change is highly adverse to the interests of the Members of the Association. The HOA must have some deal with Brookland Baptist Church Northeast for the rental of the meeting room. The dates must be arranged for the year. The HOA makes a "donation" to the Church for the use of the room. It's actually not a "donation", because the HOA receives something of value in exchange; i.e., the use of the meeting room.  Wh...
Read more

What Story Do the Financials Tell?

At the May 6, 2025 Board of Directors meeting, the March Financial Operating Results were available. Did you pick up a copy? Was there any discussion of them? Usually there is not. Do board members examine them before the meeting? Does anyone on the Board really understand them?  Look at the page for the Operating Expenses - Variances. Twelve Line Items are shown. No totals are shown. Big mistake. But are the totals intentionally omitted? For these 12 Items the total of "YTD Variances" is $61,784.93. As of the end of March, the HOA has over-spent the 2025 Budget by $61,784.93. Look at the reason given for the over-spending in Line Item GL-5111 Irrigation Contract. "This is over budget and will remain over budget due to the 2025 budget is $75,000 and the monthly contracted cost is $10,140." Is this worded to intentionally confuse any reader by stating the annual amount in the budget, but the monthly amount for the contracted cost? If the yearly contract for Irrigat...
Read more

About Fines in The Summit's HOA

Do you bother to inspect the Budget when it is proposed for the following year? Do you ever examine the monthly financial reports of the HOA? How much do you think the HOA will collect in fines this year? How much do you think the HOA collected in Fines last year? The Line in the Budget that you'll want to look at is Line 4600 Fines - Violations. Sitting down? In 2024 the HOA collected $57,446.91 in Fines. The amount budgeted in 2024 was $20,000. In 2025 the HOA expects to collect $50,000. As of June 30, 2025 the HOA has collected $38,670. At this pace the HOA will collect $77,340 in the full year, or $27,340 (55%) more than estimated in the Budget. Why are fines running so high? Should the Board just grin and rub their hands together in glee, or should the Board create an ad hoc Committee to examine the Fines category and determine what can be done to reduce the penalties on its Members? If you were the Board President, what would you do? Just smile and spend the money, or invest...
Read more