Lost financial records

Started by NicoleP1 • 5 replies • 1823 views

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NicoleP1 (South Carolina)
Posts: 2

Posted:

Our HOA Treasurer has claimed to have lost all financial records from 1996 to 2007. This HOA is being sued for being not legelly formed. No homeowner has ever seen the books as they are kept in treasurer's home. Shis is not bonded even though bylaws state she must be. What can we do flush her out as we do believe records are lost as claimed. We believe she does not want to submit them in Discovery of lawsuit.

TimB4 (Tennessee)
Posts: 21,061

Posted:

Nicole,

If your Treasurer is a member of the Board and if your Association has a Crime Insurance policy, then they are bonded.

If the records are lost, they will have to be recreated as best they can. Start with bank records and minutes (as typically a financial report is part of the minutes of a Board meeting). Contact State and Federal tax departments to get copies of tax records.

This will cost the Association a good amount of money for copies of those records.

Tim

SusanW1 (Michigan)
Posts: 5,202

Posted:

Call an emergency meeting of the board. Motion to have the following actions:

1) The president and another officer need to march to the bank and close out all accounts (get her name off any accounts)

2) get copies of all the checking account statements. If you want copies of all past checks, then there will be a charge for that unless you have the check ledger OR get the checks returned to you.

Bring these motions to the bank, just in case they are needed.

Then:

3) contact all vendors and tell them to submit all bills to another address.

4) contact the utility companies and ask for a printout of all payments for the past years (payment history)

5) The secretary should have the minutes of all meetings which should also include the treasurer's report.

Try to put together the last 2 years, and then, when there's time, reconcile even more back history.

Things are not lost - they just need to be gathered together.

Unless you suspect embezzelment or fraud, just move on from where you are today.

NicoleP1 (South Carolina)
Posts: 2

Posted:

The entire HOA is under the control of the treasurer. The community is bluecollar and doEes not participate for fear of reprisal from this group. They do as they please and as the treasurer is also a councilperson, she is protected by the City. There have been 180 liens placed out of 230 homes ...homeowners are bullied into paying their dues though we receive nothing for it. At one time the developer installed a pool and a adjoining changing room and toilets. Treasurer had the pool filled in and placed a sign in fromt of the poolhouse "COMMUNITY CENTER' It is under lock and key and open to homeowners three times a year for meetings which no more than 10 persons attend. Recently the HOA spent $8,900.00 for repairs to the building which is a joke. There are two tennis courts which no one uses ...they are unsafe and also under lock and key. No one has ever seen the books, nor are we allowed to see minutes of the meetings. The neighborhood is apathetic and pay her but a few of us have stopped and she has placed liens on our properties in violation of the CCrs which clearly state they will be heard in Small Claims Court. I was sued in Small Claims Court, but was able to provide documents that the HOA was not valid. The case was dismissed yet she placed a lien on my property. I am elderly living on social security and was able to take my case to SDCLegal Aid who are representing me. The HOA has not answered any of the Discovery questions writing that I shouldd get records myself. I am being bullied with threats but keep going. I believe in the words of Desmond Tutu who said "To remain neutral in situations of injustice is to be compliant in that injustice". This HOA has an insatiatiable lust for money and seem to be in business only for that purpose. We get NOTHING.

CharlesB17
Posts: 112

Posted:

TimB4 is correct. Nothing is lost. It will be time consuming to recover the data. We had a president that went rogue, hire ppl and paved his road and driveway without BOD approval. Then, when he was voted out, he took and alledgedly destroyed all the mitigating evidence. It took us a while to recover it all. Then We contacted MyComPlus and all of our records are kept on a server and is viewable to all the homeowners. We became transparent with the books and secured them on an off site server to prevent this from ever happening again.
You should consider this, or something similiar in the cloauds sto prevent this from occurring again. In the mean time, follow TimB4's advice and recover the records. The bank keeps records for 7 - 10 years. They will be glad to help you and take your money.
1 ounce of prevention is worth a pound of cure.
My2cents - 'nufff said

TimB4 (Tennessee)
Posts: 21,061

Posted:

Quote:

Posted By NicoleP1 on 05/08/2011 6:29 AM

The entire HOA is under the control of the treasurer. The community is bluecollar and doEes not participate for fear of reprisal from this group.

Nicole,

Is the Association still under control of the Developer?

Bottom line is that the only way to counter this type of activity is for the membership to get involved. If they chose to not get involved (for what ever reason) then those that are willing to volunteer, serve and be involved will be the people controlling the show.

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