Special Assessment's funds unaccounted

After taking over as new vice-president,now just realized that our CPA wants to meet up with me next week to discuss how the association has over 2 million dollars unaccounted for and rumors of doing another special assessment to over that hole. Is it time to gather owners to hire a CPA inspect our books?

Hi Angel52
First off where is the President? Did the CPA come to you because he thinks the old board members may be the cause? Did the CPA show you where the money was missing from what account it should be in and was that money to be deposited and never was? Lots of ?

From your question do you not already have a CPA inspecting your books and questioning expenses??? You and your other BOD members need to find out from the CPA exactly what they know (obtain copies of any documents offered). Then after reviewing the information you need to determine if any criminal activity has taken place that you need to report to your local Attorney General. Sorry ... $2 Million Dollars unaccounted for is a HUGE RED FLAG of potential theft.

I am bit confused. So 2 million is missing from the HOA and the HOA now wants to have a special assessment to cover that loss? Now it sounds like the 2 million was in reserves? Which is usually used for capital type expenses or major repairs. (Roof replacement, road work, etc.) Was the money spent on a major project?

Now this would make sense if the HOA did have a large expenditure and wants the special assessment to repay back the reserves. It's much like borrowing from your 401K plan. It's your money but you still have to pay it back.

My opinion would not knee jerk react to a 2 million dollar loss in a large long term established HOA. As crazy as that sounds. My "It's got to be theft" alarm isn't going off. It reminds me more of the scene in Superman 2 or 3 with Richard Pryor. Richard Pryor is being hunted because he ripped off the corporation he was an accounting for. He basically was just rounding up to the nearest penny. Over time he was pocketing that difference. After 10 years it was several million dollars.

Now it could be that the HOA over time with it's accounting it did a similar thing. Rounding up or just not settling accounts to 0. Like my HOA collection report would show the money owed on the entire lot since it's creation. So it would make it look like members owed money that did not. Which if would add those odds/ends up it could look like our HOA was short in collecting a pretty good chunk of change.

Not saying that is happening here. However, it could be an accounting issue. Just don't jump to conclusions before seeing the actual numbers and how they fall.