I want to quit the board and sell my house!

Document everything. Build your case and when it is indisputable, have the board members replaced according to the procedure laid out in your governing instruments and have the manager indicted for embezzlement.

Paul: I have the documents to show the overcharge by the management company; but I don't think they paid the kickbacks out of the HOA account. I am sure if they did to it, it was cash. How can I get rid of a management company when they are paying off 1 or 2 other members who defend everything the management company does? If I bring the documents, the management company will say it was a mistake, pay us back, the paid off members will say "see it was just a simple mistake", the company stays and will try it again later when my term ends.

Mike: We don't have an audit because every year that I suggested it, the manager said that it was too expensive and not needed and the board agreed with the manager.

Erika,

First, I feel for you!

Second, I would not make allegations of possible kick backs on a public forum unless you had more than a "gut" feel. I do not doubt things like this happen, but it can be difficult to prove. It may also be an honest mistake that will get corrected since it has been brought to the attention of the other BOD members.

I think you have received good advice here about documenting everything. If this was in my county I would call the DA and ask for advice on how to proceed. But, I would first make sure everyone knew of my concerns, not just the Board but make sure you express your concerns in the minutes which are hopefully shared with the members?

And don't quit. If there is some dishonesty taking place, they want you to quit. Fight the good fight, prayer sent!

This right here is KEY! Do NOT quit! That is exactly what these types want. I've been volunteering for my HOA for 3 years (2 years on the Board 1 year off) and dealing with fruitcakes, dimwits, and some the most shady, deceitful, and corrupt characters I have ever met in my life.

They all play the same or similar games. One of which is to deliberately try and drive you crazy so you do quit. Maybe I am just stubborn but I absolutely refuse to quit.

Also word of advice. Be careful with allegations. Make sure you can 100% prove them before going public with them. Often it is better to just present the bare facts to the members (without any of your own commentary) and let them draw their own conclusions.

But what do your CC&R's require? Ours for instance requires an annual audit. You didn't specify the type of HOA you are in or it's size but this is what the FL statute says about audits: (If you are in a COA you need 718 instead of 720)
720.303 Association powers and duties; meetings of board; official records; budgets; financial reporting; association funds; recalls.—

(7) FINANCIAL REPORTING.—Within 90 days after the end of the fiscal year, or annually on the date provided in the bylaws, the association shall prepare and complete, or contract with a third party for the preparation and completion of, a financial report for the preceding fiscal year. Within 21 days after the final financial report is completed by the association or received from the third party, but not later than 120 days after the end of the fiscal year or other date as provided in the bylaws, the association shall, within the time limits set forth in subsection (5), provide each member with a copy of the annual financial report or a written notice that a copy of the financial report is available upon request at no charge to the member. Financial reports shall be prepared as follows:
(a) An association that meets the criteria of this paragraph shall prepare or cause to be prepared a complete set of financial statements in accordance with generally accepted accounting principles as adopted by the Board of Accountancy. The financial statements shall be based upon the association’s total annual revenues, as follows:
1. An association with total annual revenues of $150,000 or more, but less than $300,000, shall prepare compiled financial statements.
2. An association with total annual revenues of at least $300,000, but less than $500,000, shall prepare reviewed financial statements.
3. An association with total annual revenues of $500,000 or more shall prepare audited financial statements.
(b)1. An association with total annual revenues of less than $150,000 shall prepare a report of cash receipts and expenditures.
2. An association in a community of fewer than 50 parcels, regardless of the association’s annual revenues, may prepare a report of cash receipts and expenditures in lieu of financial statements required by paragraph (a) unless the governing documents provide otherwise.
3. A report of cash receipts and disbursement must disclose the amount of receipts by accounts and receipt classifications and the amount of expenses by accounts and expense classifications, including, but not limited to, the following, as applicable: costs for security, professional, and management fees and expenses; taxes; costs for recreation facilities; expenses for refuse collection and utility services; expenses for lawn care; costs for building maintenance and repair; insurance costs; administration and salary expenses; and reserves if maintained by the association.
(c) If 20 percent of the parcel owners petition the board for a level of financial reporting higher than that required by this section, the association shall duly notice and hold a meeting of members within 30 days of receipt of the petition for the purpose of voting on raising the level of reporting for that fiscal year. Upon approval of a majority of the total voting interests of the parcel owners, the association shall prepare or cause to be prepared, shall amend the budget or adopt a special assessment to pay for the financial report regardless of any provision to the contrary in the governing documents, and shall provide within 90 days of the meeting or the end of the fiscal year, whichever occurs later:
1. Compiled, reviewed, or audited financial statements, if the association is otherwise required to prepare a report of cash receipts and expenditures;
2. Reviewed or audited financial statements, if the association is otherwise required to prepare compiled financial statements; or
3. Audited financial statements if the association is otherwise required to prepare reviewed financial statements.
(d) If approved by a majority of the voting interests present at a properly called meeting of the association, an association may prepare or cause to be prepared:
1. A report of cash receipts and expenditures in lieu of a compiled, reviewed, or audited financial statement;
2. A report of cash receipts and expenditures or a compiled financial statement in lieu of a reviewed or audited financial statement; or
3. A report of cash receipts and expenditures, a compiled financial statement, or a reviewed financial statement in lieu of an audited financial statement.

Glen: The laws is actually another excuse the manager has used. Since we are under $300,000 we are not required to have a review or audit, just statements. Therefore, we do the basics, we have a CPA that just files the annual taxes and provides a annual financial statement. No reviews or audits of any kind.

Insist that the Management company give the board read-only access to the operating account along with photocopies of every check they write. If they don't want to do it, they are probably stealing from you.
Jeanne

I say go with your instincts and move. I've made that decision. I'm tired of bullies and thugs ruining what was once a nice community. Decent people are embarrassed to even have guests visit because it looks so terrible in the community. Any time we get a few decent board members they try to recall them or they get intimidated with vandalism and threats of violence to quit. Most of the problems are because of the incompetent and corrupt property manager who has run things for 25 years. We've been going downhill since the 1990s. We've also had embezzlement by directors and we'll never know how much we've lost because of the management company. Some directors are just ignorant, but most loudmouths who don't care about doing things ethically, according to the statutes, or our covenants. Since it's Florida the only way to achieve anything is to bring a civil suit and I have better things to spend my money on. I and others have tried to help the board, but it's like Sisyphus. The decent people have died out or moved. The police wouldn't even arrest anyone when the security guard and president were attacked with a crowbar. As soon as I turn 59.5 and can access my retirement savings I will buy another home and rent this one out.

Thank you everyone for your feedback.

I have gathered all the documents proving we have been "overcharged" by the management company.

My goal would be to have the management company replaced. I already collected bids from three other CAMs ready to pass out to the board.

How can I present this all to the board at the next meeting?
What questions can I ask of the manager regarding the accounting documents to get the audience/board to come to the conclusion that we need a new management company?

Thanks for all your help.