Board Should Call a Special Board Meeting

The Summit HOA's Board of Directors should immediately announce a Special-Called Board Meeting and make it open to the Membership. It should not be a closed, private, secret meeting. Documentation in the form published Minutes should promptly be published on the HOA's website (within days of the Meeting, not weeks).

The topics? The annuity that is shown on the January 31, 2026 Balance Sheet and the $126,351.61 that was apparently withdrawn from savings or money market to pay for it.

Who is named as the Annuitant? I've heard one name mentioned. Why would it be anyone else?

There are probably 25 questions that should be asked and answered. Some of them are listed here. The HOA should be brutally honest (transparent) with the Members.

It is the Board of Directors (Bryant, Lummel, Potter, Turley-Moore, Holmes, Hill, Weatherbee) who must ask these questions without flinching. Five of them were on the Board that was sitting when the transactions took place, assuming the transactions happened before the November 18, 2025 Board election. Did all five know? Did only some of the five know?

Why is there no record in the Minutes about these transactions?

Why does the January 31, 2026 Balance Sheet (Line 1050) read "BOD - SC Federal Credit Union Annuity 06.2029 (Unreconciled)"? Did a financial advisor of SC FCU sell the annuity to the HOA?

To me, that indicates that the BOD (Board of Directors) is the titled Owner of the investment and that SC Federal Credit Union is the issuer. Why would the BOD be the Owner? Shouldn't the Association be the Owner?

What is today's Actual Cash Value (net of all surrender charges)? Members, that's what the $126,351.61 is worth today!

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

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

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