HOA Financial Review or Audit??

Our HOA has NEVER had any type of Financial Review or Audit done. Never in the 17 years we have been around has there been an audit or review. We've taken in nearly 2 million bucks and spent nearly all of it on operations and some questionable projects. The CC&R nor the By Laws, written by the long gone developer, do not address any type of Periodic or Annual review of HOA finances.

I have reason to believe that some of the books have questionable entries and lots of sloppy bookkeeping. Over the past several years I have found entries that raised questions to me and a few other members. When asked about them I usually get no response. I have also gone to the Treasurer to ask why no money has been put into our reserve fund for the past 4 years. We usually budget for about $4-$5K to be put into the Reserve Account. Since 2013, nothing has been put in it. She asked I no longer contact her regarding this matter. She never answered the question regarding the Reserve account.

When I have asked the BOD to consider a Financial review or audit I'm told none is needed. Should I be concerned about this? Unless I can get the CC&R or By laws changed I do not think the books will ever be checked. I also asked the Treasurer to certify the accounts are accurate. She would not. Suggestions?

We are working on replacement of most or all BOD members in December. The problem may be resolved at that time.
DennisG

AS asked on one of your other threads, Dennis: Does GA have not state statutes about this topic? Audit or financial reviews?

Also, you have a lot of amenities and should obviously be contributing quite a lot to your reserves each year. It's good you & others want t get re id of the correct Board. But I think homeowners need to be prepared to expect dues increases in '18.

I appreciate the recent comments. To address a couple of issues.

GA has as law dealing wit POA's of which the developer expressly exempted the HOA from in 2000. This Exemption Disclosure is printed on the cover sheet of the CC&R. The HOA has never gotten serious about falling under the POA Act. It could be that there is some language that deals with Financial reviews/audits in it.

I have lived here since 2002. The HOA was formed in 2000 and the first homes went up in 2001. Since 2003 or 2004 I have raised the issue with every BOD regarding the financial aspect of governance. We are not very large (189) homes and perhaps no one looked at where we spend the money and who's balancing our books.

Last year when I spotted irregularities in our books I addressed it privately with the BOD. I pointed out 3 or 4 issues that seemed obvious to me. No joy. Later in the year the President came to my house and said there was no need for a Financial review or audit since the MC was audited??? SO. Did that mean our books were audited or reviewed? He could not answer the question.

This afternoon at 1PM I and another member went to the MC office to look at specific financial records for a project that appears to have cost us nearly 3 times what we were told. Quoted at $16.7K and appears to be around $43 or $44K. We sent a certified letter to them asking for specific records. The state law says we are entitled to view and copy the records within 5 days after they receive our request.

The letter was received and signed for on Oct. 2. On Oct 12 I sent an email asking for a status. They responded and said the records would be available on Monday, the 16th. That's 2 weeks to simply open up the file on this project and lay the contract and invoices on the conference table for us to review.

We arrived today and spoke with the office manager. It was like a deer looking in headlights. No one had any idea who we were and why we were there. The MC is small. About 5 people total. Anyway I produced a copy of the certified letter and the email confirming the date. the 16th. They called the MC boss. No response. After 15 minutes they came back to us and said they had nothing to show us. We left.

A few minutes ago the MC president emailed me and said she meant NEXT Monday, the 23rd!!! I did not reply to her as this is the second time in two years that she seems to not understand a date and time, that she agrees too and then is a no show.

Anyway, we smell a cover-up and my friend said he was going to court to force the production of documents.

I appreciate everyone's thoughts. We'll sort it out. Yes, we are looking at a BOD replacement.
DennisG