First Annual Meeting

Started by ValerieS2 • 10 replies • 1568 views

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ValerieS2 (Michigan)
Posts: 244

Posted:

Advice please - this will be our Boards first annual meeting. As treasurer I will be giving a report. I will not be saying a whole lot, just basically stating monies received and expenditures to date. I plan to have a handout available with a breakdown of those two categories. (see attached)

Is this okay to hand out? Should I be saying much more?

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MelissaP1 (Alabama)
Posts: 13,836

Posted:

In our HOA, the COLLECTIONS report went ONLY to the Board members. The EXPENDITURES report can go out to any member. We as the board did NOT reference any person behind in dues by their names. It was just by LOT numbers. It's best NOT to reveal personal information about members as it is a sensitive topic to some. It also can create some kind of "vigilantism" against owners who owe money which isn't pretty and hard to handle. Plus regular members can't take action only the BOD can about owner's who owe money. It's just best to keep collections general in "how much we collected this month" etc...

You will get the question: "Did the board approve this expense? and why?". Be prepared to answer that on every payment even if it's for electricity. All costs fluctuate and there are reasons. Example: Our water bill was EXTREMELY high in the summer for the pool. Our pool person was forgetting to turn off the hose and left for the day. I always had to catch it hours later. I got the board to vote for a timer for the water hose at the pool. This saved us ALOT of money. However, you discussing this issue on expenditures may take a "cause/effect" explanation. So be prepared for the backstory.

You will do okay. Will get used to it and NEVER EVER answer a question if you do NOT know the answer. Just reply "I will look that up and get back to you". Good luck!

Former HOA President

SusanW1 (Michigan)
Posts: 5,202

Posted:

Does "in bank" mean end of year balance?

Did the board pass a budget? How do the actual expenditures compare with the budget?

Do you have any other funds? (Savings, Reserve, Emergency)

Do you produce a Balance Sheet if you do?

I see that you have listed every lot and marked the PAID ones. The board should be prepared to answer questions about what they are doing to collect the unpaid dues.

ValerieS2 (Michigan)
Posts: 244

Posted:

Thank you for the responses. It was my understanding (from a colleague who sits on the Board of another HOA in Michigan)that members have the right to know what lots are delinquent. I am not sure.

ValerieS2 (Michigan)
Posts: 244

Posted:

We have a small reserve, the Board approved the budget back in April and we are under budget right now but there are still a lot of unknowns.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

They may be able to know what "Lots" are delinquent but NOT the names of the owners. That is a privacy issue and a need to know information. A person who can't levy a lien/foreclosure doesn't need to know the name of the person delinquent. They just need to know there are delinquencies. It's best to handle it this way as feelings and emotions get involved if you put names out there. Lot numbers aren't that personal and are more business like. You have to realize that person who is delinquent may be AT that meeting as well...

Former HOA President

ValerieS2 (Michigan)
Posts: 244

Posted:

Melissa,

My example that I attached references ONLY lot numbers. Though it won't take a deep thinker to figure which lots belong to whom...

SusanW1 (Michigan)
Posts: 5,202

Posted:

You need to provide a Balance Sheet to the Members listing ALL accounts and what is their end of year;

Checking $100
Savings 50
Reserve 200

ValerieS2 (Michigan)
Posts: 244

Posted:

The annual meeting is Aug 16th but it is not End of Year for accounting (fiscal year is January to December.

We only have one account right now. The balance sheet template I have is basically just stating what is in the one account. Does it need to reflect future liabilities?

ValerieS2 (Michigan)
Posts: 244

Posted:

Susan - please see attached - does this seem to cover it?

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📎1815461281571.doc(55 KB)

BradP (Kansas)
Posts: 2,640

Posted:

Valerie...good luck. I think the more information you can give the homeowner's the better, tends to stir conversation and questions which is good. The one thing I don't necessarily agree with is providing information on which lots have paid and which ones haven't. I understand that information is available and can be given out but I tend to think it creates ill will amongst neighbors and towards the board. Even though you are only posting lot numbers people are fairly smart and can figure out who is who. But, that is a decision your board will have to make.

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