Potentail Dilemma

We have lived in this condo complex in Florida about a year and a half. In that time I have never seen a financial statement. It doesn't mean we haven't received one, I just haven't seen it. We have been through 3 property management companies in the last six months, and now I find out we're looking for another. The portfolio managers we've had are spread so thin they have done a horrible job.

Anyway, at the February board meeting I asked the then property manager for the last financial statement. I gave him my email address and heard nothing. So, prior to the March meeting I investigated the current law with regards to records...paraphrasing, it says written requests (mine was oral, so I guess he's off the hook) must be made to the board and they have 5 working days to produce the records. After 10 working days a $50 a day fine accrues up to $500. Anyway, I gave the board a written request to see the financials. I explained how I had asked the former manager yada,yada,yada and mentioned along with my request about the 5 days. The board president said they had 30 days and at the time I wasn't positive so I clammed up. I've since learned otherwise and I was right.

This board has been in office about 5 years and they are very entrenched. I'm convinced the board is not up to snuff on the current laws in a lot of areas.
Hardly any people show up at the meetings and there is little or no discussion permitted by the owners. The board is very, very quick to administer fines for violations. My question is, if they do not produce the financials after the 10th working day, should I send a message and enforce the 10 day rule and make them pay the fine? We have the potential for close to $600,000 in yearly dues (although there is about 10% in arrears). The 5th day is tomorrow and I have heard nothing. I really feel there needs to be more transparancy with where this money is going and the Florida law backs up the need for transparency. I don't have any clue if there have been inpropriaties but, I'm confident the internal controls are so weak that the environment for such is ripe. I don't think we've had an audit in a long time.

Any suggestions?

I will address your items one at a time.

Define what you think are what you consider misuse of funds FIRST.
First of all, I never accused anyone of a misuse of funds. I just want to see the records as is the right of every owner in this complex and since I have never seen them I have an interest.

Honestly, if you did read a financial report from an HOA would you know what they have expenditures for?
Honestly, I am a former CPA that has audited multiple oompanies, however never a condo association. Yes, I know my way around fund accounting and can understand a financial statement, do you?

Would a Cash payout for $200 for flowers or a contractor flip your lid? You need to match up your apples and oranges first. This means getting a copy of the meeting notes and see what matches up with the expenses and why.
We have not had meeting minutes available in over 6 months. Until they are made available, that is impossible. They are supposed to be posted on the condo's website.....the last time that was done was 2007.

When I was board member we kept the COLLECTIONS part of the financials with BOARD members ONLY. Plus we ONLY referred to LOT numbers NO names or addresses. This prevented some "vigilantism" amongst non-board members against homeowners who had issues in paying. Plus for legal reason we kept collections confidential in case the angry homeowner wanted to sue us for perceived inpropriety. Letting you know this as this may be policy within your HOA.
When did I say I wanted to know who wasn't paying? I'm not sure where this is coming from. I have no interest in knowing the details of individual uncollected accounts. I do have an interest in total revenues. I never asked for the detail of accounts receivable.

However, our EXPENDITURES were OPEN to ANY member. We'd even pass them out at the meetings to go over them. The rest of the meeting we would go through each item to make sure everyone understood why the money was spent. Plus we would also vote on additional things to spend any money the next month.
Good for you. Since I got involved I have never seen anything even remotely close to this. Financials have never been handed out much less gone over in detail at the meetings. There is no attempt to make people understand where the money is going. I've never seen a budget, a report...nada, nothing.

All of this information should be available through a board member or at Meetings. Attend your meetings and get involved. This is why your board now is sooo entrenched. They are probably the ONLY Members who care enough to participate in the HOA's duties. You can't complain about that as a "No show" equals a vote in their favor as well as an attended vote. Who's going to stop them if your not there or part of the group?
Yeah, well I agree this information should be available, but it's not. You could not be more incorrect. I go to the meetings. I am involved and under Florida law I have a right to open records.

Understand how your HOA works and functions before going for their throat. You may be surprised on what really is going on once you make the effort to try. As far as the Management company giving you any financial statements, good luck. Your better off asking a board member who should be able to get a statement for you from them
You have no idea about the specifics of what goes on in our complex and have assumed I haven't read the law. You have assumed I am not involved. You have asssumed all of the information is readily available. I don't know how they conduct condo associations in Alabama, but in Florida we have written statutes that the boards must follow. It is apparent the board has limited understanding of these laws. I asked for suggestions from some of the experienced people on this board. You have assumed I'm on a witch hunt. Thanks for your positive and constructive reply.

Thanks Rob. You're right. I've concentrated on the condo laws because since I don't think my documents are up to date. I just have what was given to us at closing.

My background is accounting, so I think it's self explanatory as to why I would want to see the books. I'm taking baby steps so as to not make waves. This board has it's own way of doing things and it needs to slowly change and get in line with state law. Currently, as you know, there is no owner discussion until the end of the meetings so crying foul is not doable.....yet.

Do I want to go for the fine? No. Not really. But, no one has challenged this board at all (at least since I've been attending meetings) and they've really ostracized the owners from any input. I'm inclined to at least make them aware of a potential fine (if the time limit expires) and then forgive it. In answering your question about what I hope to accomplish, that's probably it, a change toward more transparency. I truly believe, as does state law, that owners have a say in this process.

I really do want to see the books though. And not to be some watchdog. It's my background and I think I can help. Currently, each unit is paying about $4K a year in dues. That's out of sync with other condo associations in this area. I have seen nothing regarding an accounting. Also, I question their due diligence in the hiring of a management company. This is our third in 6 months. Soon to be fourth.

Anyway, thanks for your help. I've seen you help a lot of people on this board.

Thanks Brian...great suggestion.