The HOA Owns an Annuity???

Why would The Summit's HOA own an Annuity?

The Financial Operating Results for January 31, 2026 were distributed at the March 3rd Board Meeting. 

The Balance Sheet reveals an eye-popping item.

In the very first group of numbers (ASSETS, Cash, Investment Accounts) is listed:

"BOD - SC Federal Credit Union Annuity 06.2029 (Unreconciled). Line 1050. $126,351.61"

Does anyone ever read those dry, dreary, boring financial reports that are handed out at Board meetings each month?

8/31/2025 Financial Statement Reserve Cash & Cash Equivalents Line 1088 South Carolina Federal Credit Union (Unreconciled) $126,351.61

No Financial Operating Reports have been published on the HOA's website since August 2025. The annuity must have been purchased after August 31, 2025.

10/31/25 Financial Statement (ASSETS, Cash, Bank Accounts) Line 1050 "BOD - South Carolina Federal Credit Union $126,351.61 (Financial Statement distributed at November 18, 2025 Board Meeting.)

Was the Annuity purchased in October or November 2025?

Is it "just a coincidence" that the Annuity value on the 1/31/26 financial statement is exactly the same amount of the Reserve Cash & Cash Equivalent balance for Line 1088 five months earlier?

Some questions:

Who is the Annuitant? An annuitant is a living person, similar to the Insured on a life insurance policy.

Who performed the financial analysis to determine whether an annuity was a proper purchase?

Who sold the annuity to the HOA on the life of some as-yet-unknown person, who is the named Annuitant?

Was there any relationship between the salesman and the Annuitant?

What company issued the Annuity and on what date?

How much commission was paid and to whom?

Was there any rebate, kickback, or other consideration paid or received?

Who authorized the withdrawal of $126,351.61 from S.C. Federal Credit Union (Line 1088) and a payment to an insurance company for an Annuity?

Was more than one signature required to withdraw the $126,351.61? Who signed?

Did the Finance Committee provide an opinion as to whether the annuity was an appropriate investment for the HOA?

Did the Board of Directors hear a Motion and approve that withdrawal from Reserves and the annuity purchase? On what date? Is it recorded in the Minutes?

Who is holding the annuity policy?

Who is the Owner of the annuity policy? Who is the payable-upon-death beneficiary?

If the HOA wanted out of that deal, could the purchase be rescinded?

The Board of Directors owes a complete Report to ALL Members about this transaction. Immediately.

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