Request for volunteers to review my spreadsheets

We have an out of control board and MC and after giving them several chances to post HOA records, correct the financials and the related funds and so many more violations, a group of homeowners are completely fed up!

I am now gathering all the statute and document #s that are being violated and then will file a complaint with DORA/RE division who supposedly investigates MCs and their agents - which could put their CAM licenses at risk.

Another thing I want to present to the state is my analysis of a reserve account that shows when and how $335K has been misappropriated.

I would like some input (comments, suggestions, clarifications, questions, etc.) from this site on my spread sheets.

If you will respond with your email, I will reply with the attachment (.xls format)

Thanks in advance,
Linda
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P.S. If you need additional information, there is a lot of detail in other posts:

Subject: Missing Reserve Funds - Atrocious Accounting - Reserve Study Errors - Denial of Records
http://www.hoatalk.com/Forum/tabid/55/view/topic/forumid/1/postid/200896/Default.aspx

Budget Requirements
http://www.hoatalk.com/Forum/tabid/55/view/topic/forumid/1/postid/216885/Default.aspx

Melissa, but I wonder if there is some embezzling going on. I have seen it before. If this is in place, then chances are good the management company and board are in cahoots to keep the current board members using unlawful means. I am grateful Linda has this alternative resource, DORA/RE division, to use.

Linda

My email is [email protected]

I am saying look at the RESULTS and NOT the Cause! There are other ways of handling this situation than running off to an outside source.

My biggest concern is: Was this project they paid for with the controllers damaging to the HOA besides how it was funded? Was there absolutely no benefit? Was it something that never needed done?

Here's the deal. This could be a LEARNING OPORTUNITY for everyone involved instead of a punitive one. I would go to the board meetings or write a letter to the board quoting the exact references in your CC&R's that they violated. Let them know the relationship they are to have with the MC. The MC does NOT run the HOA. The HOA tells the MC what to do per their contract. I would also point out that such decisions require a membership vote versus a HOA board vote.

Why are we fighting this decision if the decision overall did not do any real significant damage than procedural? I say get on the board or educate the board. Bring in the rules and review. It may just be that no one ever read them. The MC does NOT have to follow them as they are NOT a member of the HOA. They have their own rules/laws to follow.

The 3 bid system is just a good business practice. It's NOT a law or rule. It could be that they did not get another bid because the original company had offered the controllers as an "upgrade" or "option" they could later install. Which means they would not be getting a competing bid if this was part of an option of the original contractor.

Don't go jumping down a rabbit hole you don't know how to dig yourself and neighbors out of. Look at the end results.You complain now what? The board doesn't get fired does it? The MC doesn't quit? Are you ready to submit bids for new board members or a new MC? Again, cart before the horse. Instead you and your neighbors can already take this step. Remove the board and fire the MC. It's all in your hands already instead of putting it into someone elses.

Kerry,

If that is your strength, it is a good one! Especially since you're dealing with more than one operating budget. We have two different reserves and only one operating account (it's pretty simple, really) but the MCs still can't get the accounting correct.

Melissa,
The "controllers" is not the main issue. It is just the final straw!!

If you had really read my original post, you would have noted there is $335K missing from one of the reserve accounts. And the board is dwindling the money down to pay for it's special agendas. Maybe the controllers was a good idea - maybe not, but they violated our governing documents in spending the money for a capital improvement without member approval. And that money they spent is RESTRICTED and should be in the proper account where it can ONLY be spent on "private streets".

And EVERYTHING has already been brought to the board and MC attention (at meetings and in emails)to no avail.

The MC DOES have to follow our governing documents as well as state laws but they do not- even when told they are in violation.

Kerry,

I think you are correct in the definitions. And I think that in the beginning the errors were probably unintentional - but not so much accidental as due to incompetence; however, these errors have now been brought to their attention and they refuse to do anything about it stating "we're not going back in time" and "we're not going to re-invent the wheel." These quotes were from the Nov, board meeting - but still, the errors continue. They even put out F/S in May that did not balance.
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Just to clarify: a few years ago, Clusters homes were charged more in dues to cover their domestic water (operating budget) and to also cover the "private streets" (reserve budget). But in 2006, individual water meters were installed at each cluster home and from then on, they paid their own water/sewer bills. So there was no longer a need for that operating budget.

The way the cluster homes are set up is probably different than what you are thinking. Each owner is responsible for their own landscaping inside their fences - usually the back yard, sometimes the side too. However, our homes butt up to the common greenbelt that is not our property so the landscaping is paid through the HOA equally by all the homes.

But a big change that the board wants to make is to amend our declaration letting the board determine what is a cluster lot common expense. But they don't list those - I guess it will just be up to whatever board is in place at whatever time. And worse, they want to separate the two different types of cluster homes - attached garages and detached garages. Although there doesn't seem to be a difference that would require separate levels for dues.

So if the amendment passes, there would be three operating budgets and three reserve accounts. What a disaster!!!
It would probably be as complicated as your accounts. A lot of homeowners hope to stop that from passing.

Btw, how many different accounts does your HOA have? And what makes up the differences in the budgets?

Not sure what you mean by playing hero or victim. In my former two HOAs, change started with constructive, hard, relentless criticism by members of board actions, followed by the complainants campaigning about abuses and running for the board. They were not "playing" anything. They were objecting to how the grounds were not being maintained, affecting everyone's property values.

Surely the late great Margaret Mead has been quoted here before: "Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it's the only thing that ever has." Was Margaret wrong?

I think Linda has begun appropriately setting the stage for a change in board membership.

Kerry,

Yes, that would be prudent. However, it is an HOA attorney that came up with this BS.

This is a generic declaration that the attorneys use, making some changes that the board wants. The first draft was mailed to homeowners last year for feedback. A lot of upset homeowners. The attorneys have put EVERYTHING into the proposed declaration making a mess of the whole thing. Due to changing MC last year, the board put this on hold. They are now renewing that issue and we should be getting the new draft soon.
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CC&R only differences:
"Uniform Rate of Assessments" ... The difference between the higher and lower uniform rates will be related to the cost of private street repairs servicing the higher assessed lots."
"Separate Bank Accounts" ... The treasurer will establish a bank account separate from the general account to be used exclusively for monies collected for the payment of Association owned private street maintenance and no other purpose."
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Your budgets and financials are quite complex. Ours are pretty simple but the MC (and 3 before them) screws the accounting up all the time. How does your MC handle all the complexities?