Can A Members Access To Check Register

Are you on the board? If so, it appears your board hasn't been forthcoming and transparent about the budget, so I don't blame this homeowner for being upset - and the homeowners should be rallying together to sack this board if this continues (yes, that means you too).

In our community, the check register and general ledger are part of the monthly financial report and homeowners can request copies of them, if they want - the only thing they don't get is the delinquency report which provides privileged information on individual accounts. Homeowners can be given total numbers: delinquent accounts, the amount owed to the association, how many accounts are with the association attorney for collection and so on.

You need to check your documents to see what it says regarding the rights of association members (homeowners), but I believe California law does allow homeowners to request and review association records - there is a Davis-Stirling website sponsored by an HOA law firm that provides good information. The site address escapes me, but there are California participants on this board (where are you Kerry?) who may know it.

The check register, however, is only part of the story, so this guy will also need to review the income/expense statements, contracts, invoices and Board meeting minutes to get a complete picture. If the books need to be audited, it's best that the homeowners get rid of this board first and then order an audit. You may find you have an issue with delinquencies - too many mean the board has to make tough decisions on what essential bills must be paid, especially if the board hasn't been aggressive in pursuing payment. You may have aging buildings and grounds where deferred maintenance has caught up with you and now you have to pay more for everything (inflation, remember?) Maybe you don't have reserves or they're too low and - your assessments may actually be too low for the number of services the association provides. It could be a combination of things - and yes, theft is also a possibility (a board member or several and/or the property manager.

Stop worrying about finding ways to keep this person from looking at the association's finances - he and everyone else is entitled to them because they're the ones paying the bills. Instead, take a look at your income and expenses for the last 3-5 years and start drilling down. There are probably line items that have increased faster than others and you need to figure out why and come up with ways to address that. If this homeowner is a CPA, you may even wish to take advantage of his skill set and put together some sort of budget committee that can take a detailed look at the budget to see what needs to be done, as well as evaluate internal controls that should be reducing or preventing waste and embezzlement.

Has your HOA raised it's dues any in last 3 years? You may be losing money because your not keeping up with expenses. Costs typically raise every few years. It may be you are not collecting enough. Will that be a problem to raise the funds with or without the trust issues? I ask because what if it's found the reason your HOA is "going downhill" in the maintenance issues is because your not collecting enough?

The Management company is to be working for the HOA. It's not the other way around. I would go to the board and request the expense reports. Mind you Collection reports may be privileged information amongst the board. However, they should be able to give you a rough number of collections they receive each month. That is a very important number because you may be surprised that people are refusing to pay since they aren't seeing "results". If that is the case it eats your HOA like a cancer. People won't pay extra or contribute if they think their money is going no where. However, the money is needed to address the issues they are complaining about.

Yes, The homeowner has a right to examine the records. Sounds like the CPA needs to get on the board and stop the hemorrhaging. As an association member you have many recourses if you think there is something hinky going on in your HOA finances.

All three of these documents, along with the check register could be doctored. I'd want to see original bank statements and invoices to confirm that the reports are accurate.

Yes, MichaelB, any Owner in a CA HOA may inspect most HOA records, but the request needs to be made in wiring. So to simply verbally demand them at the next open meeting will get this CPA/Owner nowhere. didn't you used to be on the board, Michel?

You and he need to review the davis-stirling.com website to see what records are subject to Owner inspection and the correct way to ask for records. This are a CA HOA law firm that has tons of useful info for Owners. Here's a start for you:

Davis-stirling.com-> Main Index -> "Records" to get you to the menu.
Ownership of records
Request for information
Record retention policy

INSPECTION BY MEMBERS
*Member Rights
-enforcement rights
-inspect and copy
-records subject to review
-records not reviewable

As you'll see you only may look at the current year + the previous two years. Also, you may not write to the Board or Prop. Mgr. demanding they compile records, e.g., to gather all the receipts for street cleaning or whatever.

As a director, I personally like reviewing the disbursement reports and the voucher reports because both of these, at least as put together by our MC, include what the service is v. merely the vendor's name. Then, IF these look odd or you see anomalies, dig deeper.