DonM12 (Hawaii)
Posts: 1
Posts: 1
Posted:
Our management company submitted a budget which the board did not approve for several months. The board knew the budget was significantly understated based on existing contracts and contracts that were submitted within days after the budget was submitted by the board. Our management company estimated we would have a reserve of $1.4 million.
In fact our reserve is $500,000 less than estimated, and the board did not even spend
$859,000 budgeted. That is a difference of almost $1.36 million. Additionally we have discovered that our deliquencies are in excess of $200,000. While we can find no theft or illegalities, the owner want to know what actions we could take with an expectation of success to recover some of this money. This would see a serious breech of fiduciary responsibility.
In fact our reserve is $500,000 less than estimated, and the board did not even spend
$859,000 budgeted. That is a difference of almost $1.36 million. Additionally we have discovered that our deliquencies are in excess of $200,000. While we can find no theft or illegalities, the owner want to know what actions we could take with an expectation of success to recover some of this money. This would see a serious breech of fiduciary responsibility.