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MarilynC (South Carolina)
Posts: 16
Posted:
There are 2 budgets for our community. The master budget has 251 single family homes. The sub-budget is for 24 condos. The Condo owners are supposed to pay the master budget for the common expenses which are or should be? only for areas in the community which we all share example pool, clubhouse, gate..... But on the master budget they have also included painting and pressure washing their homes. It states in the master by-laws that these 2 items are the owners responsibilty--not the hoa. Condo owners are not receiving any value for this $25,000. but we have to contribute to this expense. Thats just one of my concerns I questioned the board about. I went tpo the clubhouse to go over the financial records and found some suprising entries. A member of the board came over to tell me how wrong I was--but with everything he said--he said nothing!!! It has been several days before I could get back to the financials and some of the pages have been removed and pages are not in order. Example statements dated May 2009 in with pages of dec 2010. Now I am being viewed as a trouble maker. But I refuse to be bullied and need some guidance from others who have encountered this. We have a management company and they say its up to the people on the master board. I live in SC.
SusanW1 (Michigan)
Posts: 5,202
Posted:
We have seen this kind of conern over and over here. The "sub-condo" gives money to the "master Association" and wants to see where the funds go.

Unless you aare given an itemized expenditure so that you can "track" your dues, you can just assume that it went into one big pot.

Has your HOA been given an itemized expenditure listing so you can tract where your money goes?

AnnD2 (Connecticut)
Posts: 76
Posted:
Fraud is a matter for the police.
MarilynC (South Carolina)
Posts: 16
Posted:
I have asked for itemized expenses and at first I was told it was percentages and way too complicated. So my question was if its so complicated then how are they able to figure it out?? This community changed management company in 06 and the neighbors trll me thats when regime fees doubled. I moved here in 07. The builder went bankrupt and thats when condo owners organized but before then they never had meetings.
And I've wondered was their response meant to tell me anyone not elected to this board is too stupid. I ran for the board but was told not enough members voted and they dropped the number of members required on the board. And sometimes its whats not being said which speaks the loudest. Actually when I started questioning the board about the budget I didn't expect this reaction from a few questions. If nothing to hide why remove pages from expense records? If I call police then what? State law doesn't do anything? These people can steal from us but because they are on a hoa board they can get away with this?
MarilynC (South Carolina)
Posts: 16
Posted:
I have asked for itemized expenses and at first I was told it was percentages and way too complicated. So my question was if its so complicated then how are they able to figure it out?? This community changed management company in 06 and the neighbors trll me thats when regime fees doubled. I moved here in 07. The builder went bankrupt and thats when condo owners organized but before then they never had meetings.
And I've wondered was their response meant to tell me anyone not elected to this board is too stupid. I ran for the board but was told not enough members voted and they dropped the number of members required on the board. And sometimes its whats not being said which speaks the loudest. Actually when I started questioning the board about the budget I didn't expect this reaction from a few questions. If nothing to hide why remove pages from expense records? If I call police then what? State law doesn't do anything? These people can steal from us but because they are on a hoa board they can get away with this?
PeterD3 (Florida)
Posts: 708
Posted:
Quote:
Posted By AnnD2 on 03/04/2011 10:28 AM
Fraud is a matter for the police.

No.
SusanW1 (Michigan)
Posts: 5,202
Posted:
If this is based on percentages, then figure them out at YOUR end first.

You know how much you give to the master assoc., figure out how much goes to each category. They ought to be able to give you the costs and the percentages.

For example, if the lawn work costs $1,000 and your HOA pays 30%, that's $300 of your $21,000

Why don't you get an accountant involved to come in and help figure this out.

It really should be very simple.

MarilynC (South Carolina)
Posts: 16
Posted:
I have already done the precentages. And when taking this info to the board they said I was right but they would form a committee to study why we are paying more. Really? When can we start doing this study? Not sure when. And they need to find people who can understand budgets!!! I have done the math on both budgets on each line item, I have gone through by-laws for master and sub, I have looked at the financial records. I have been told there is nothing I can do, and that this is none of my business. And after months of asking questions--nothing. So thats why I suspect fraud. And some of the bank records that had been in the binder has been removed. The financial records are kept in the clubhouse and any member has access. The pages I was studying on Tuesday had been removed by Friday. Since 2005 condo owners pay 255% more for the regime fees. The single family has only gone up 25% since 2005. I thank everyone for your input.
RogerB (Colorado)
Posts: 5,067
Posted:
Marilyn, I would make a request to the master Board for an audit. If that Board will not initiate an audit you could initiate a petition in accorance with your master association's governing documents and with enough members' signature cause an audit to be done on the master association's financial records.
MarilynC (South Carolina)
Posts: 16
Posted:
I asked about the audit which as stated in the by-laws is required to be done by April 15th of each year. And was told they were gonna have it done on the sub but when I questioned about the master I was told that was none of my business. About six months ago I was able to look through the earlier financials and the management company was replaced the middle of 2006. And I was able to compare some differences between the two. But now those records have been removed and I was told they are destroyed.
MarilynC (South Carolina)
Posts: 16
Posted:
This is a 55 and over community. I have seen some of these people bullied and brought to tears and they don't get involved anymore. And I was told no one wants to run for a position on master board any more. Which is sad that a few has decided they get to run everything and do whatever without having to account. I expect honesty and fairness which is not happening. I will not be bullied which has me labeled as a trouble maker.
DagmarB (Georgia)
Posts: 21
Posted:
You as a owner have a right to a complet set of Financial Statements, even from the Master Assoc. Do you have a CPA who handles all cash receipts and invoices? If not, get together with the other owners and demand an audit.
I am a Treasurer and an Accountant, but we have a CPA who handles our cash receipts,expenses and Financial Statements. I also share Financial Statements with all owners on a quarterly basis. My recommandation have 3 line items and bids for your condominium , the common areas and the rest of the property.
Seems like shoddy accounting practices.

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