Does anyone consider the following an adequate Financial Report

Started by PatrickF1 • 17 replies • 541 views

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PatrickF1 (Texas)
Posts: 2

Posted:

February 28, 2021
RE: Statement of financial condition as of February 28, 2021.
As of this date the association has cash on hand of $7392.63. The association has no outstanding
debt other than normal monthly costs for insurance, electric for gates, water for entry flowers,
telephone for entry gates, lawn maintenance for entry and insurance.
This information is certified as of this date by the board secretary and treasurer,
Sincerely,

this was sent out by the treasurer (Wife of Developer)...she refuses to provide anything else..

MelissaP1 (Alabama)
Posts: 13,836

Posted:

What is wrong with it? Short to the point and covers cash on hand and expenses. Sounds like collections are good. Anything else need to know that won't be in the meeting notes?

Former HOA President

KerryL1 (California)
Posts: 14,550

Posted:

It sounds like you have very few common area items. Still there definitely eatery should be deposits into a reserve account so you'll have the funds to repair and replace, say, the gates when needed.

Is, for instance, your HOA responsible for the streets and/or sidewalks? Common area lighting?

TimB4 (Tennessee)
Posts: 21,059

Posted:

As a member of the Association, you likely have the option of requesting to review the actual documents (bank statements, invoices, etc.). Follow what is in your applicable statutes and governing documents to request.

Note: reviewing the documents is not the same as receiving a copy. It requires you to make arrangements during normal business hours to go to the office and look at the documents.

Is there some underlying issue that you are concerned about?

MaxB4
Posts: 3,513

Posted:

In short, it shouldn't be acceptable to anyone.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Max why is it not acceptable to anyone exactly? It reads pretty much like what a "meeting" note should read. Short and covers the bases. You want more details that is in the copy of the finance sheet and/or meeting notes. All available for viewing once complete/approved.

Our HOA ONLY board members were to have access to collections. That is because it was our job to collect. Plus it can be personal reasons due to non-payment. I like to leave the "details" to the board but the overall to membership when it comes to collections. Do you want everyone know you owe dues or have access to know you do?

The report OP posted covered there was no collection issues. They had this amount of money on hand. Their bills responsible for were covered. What else do you need to know?

Former HOA President

SueW6 (Michigan)
Posts: 814

Posted:

You are still under developer control. Be glad you even got the cash on hand figure.

Usual treasurers report would contain Balance Sheet ( of ALL accounts); year to date revenue/ expenditures vs budgeted; current month’s expenses.

MaxB4
Posts: 3,513

Posted:

Quote:

Posted By MelissaP1 on 03/05/2021 4:21 AM
It reads pretty much like what a "meeting" note should read.

For real? Every association I have been associated with had a balance sheet and income/expense sheet provided. At the very least, accounting was done with Quickbooks or some professional HOA software, not some excel spreadsheet. That's why some people are former treasurers.

Accounts Receivable is collections, it should how much, not who. Where is a reserve account, as they have gates, entry way etc. How about a simple budget. It appears they may be under developer control, but why should anyone expect less?

PatrickF1 (Texas)
Posts: 2

Posted:

Thanks for sharing MelissaP!...the concensus between the residents is that they are hiding something. The builder is shaky, only delivered 26 homes in 3 years out of 50 planned. we are looking at a forced takeover of the board which consists of the Builder, his Wife, and his son(who longer is associated with the company).

I wouldn't consider what they sent out as being adequate for a Lemonade Stand.

We have retained an attorney and are going to force the issue.

KellyM3 (North Carolina)
Posts: 2,239

Posted:

Quote:

Posted By PatrickF1 on 03/04/2021 4:20 PM
February 28, 2021
RE: Statement of financial condition as of February 28, 2021.
As of this date the association has cash on hand of $7392.63. The association has no outstanding
debt other than normal monthly costs for insurance, electric for gates, water for entry flowers,
telephone for entry gates, lawn maintenance for entry and insurance.
This information is certified as of this date by the board secretary and treasurer,
Sincerely,

this was sent out by the treasurer (Wife of Developer)...she refuses to provide anything else..

Ask for a financial statement. Subtle difference. Your treasurer may not have an adequate skillset.

NpS (Pennsylvania)
Posts: 4,216

Posted:

Attorney should make formal request for:
1. Income Statement
2. Balance Sheet
3. Annual Budget
4. Capital Budget (to fund replacement items like gate mechanisms and phone systems)

What do your documents say about terms and conditions for turnover to owners?

Sikubali jukumu. Read all posts at your own risk.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Your still Developer controlled. Not much can do till it is turned over to the owners. Sounds like setting yourselves up for a "witch hunt" if it is all done with suspicious minds.

Our HOA we handed out the financial expense reports out at every meeting and if anyone wanted a copy that was a member. However, when it came to collections. That report stayed with the Board members only. You can inquire about your own personal account but not every member's account. Just stated the overall collection amount/rate.

We also never discussed a member's name when it came to collections. We stated the lot # and then what we were doing to collect. Which was if we had a lien, going to lien, or foreclosure considerations. It is up to the board to take actions against owners whom are behind in dues not individual members.

So if you wanted a break down list ask for it individually. It doesn't have to be provided unless requested to view.

Former HOA President

DouglasK1 (Florida)
Posts: 2,046

Posted:

Based on my experience with developer control, you're lucky you got what you did. Ours was totally non-responsive to homeowners and provided absolutely nothing in the way of reports.

The only way to get through to them was to talk to the builder's representatives and have them contact the developer. Since the builder was actually buying lots from them, the developer answered the phone when the builder called.

Escaped former treasurer and director of a self managed association.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By PatrickF1 on 03/05/2021 8:58 AM
Thanks for sharing MelissaP!...the concensus between the residents is that they are hiding something. The builder is shaky, only delivered 26 homes in 3 years out of 50 planned. we are looking at a forced takeover of the board which consists of the Builder, his Wife, and his son(who longer is associated with the company).

I wouldn't consider what they sent out as being adequate for a Lemonade Stand.

We have retained an attorney and are going to force the issue.

Please keep us informed.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

Posted By MaxB4 on 03/05/2021 6:43 AM

Posted By MelissaP1 on 03/05/2021 4:21 AM
It reads pretty much like what a "meeting" note should read.

Have you ever been the developer?

MaxB4
Posts: 3,513

Posted:

Quote:

Posted By JohnC46 on 03/05/2021 1:28 PM

Posted By MaxB4 on 03/05/2021 6:43 AM

Posted By MelissaP1 on 03/05/2021 4:21 AM
It reads pretty much like what a "meeting" note should read.

Have you ever been the developer?

No, but I have worked with many. The the OP stated, this might be acceptable for a lemonade stand.

BenA2 (Texas)
Posts: 1,273

Posted:

No. At minimum a financial report should show income and expenses and current balance. In Texas, you are entitled to almost all records and could demand to see all financial records (if you are an owner), as long as it is a property owners association. If it is under development and the association has not been established yet, you may not be entitled to that information.

MiaR1 (Illinois)
Posts: 46

Posted:

Agree with others who say that financial record should show more than just what Patrick stated. But, I guess one needs to weigh the pros and cons before pursuing this further. If the developer will soon turn over the property to a new association then it might be best to invest energy in setting things straight within Decs and bylaws. If the developer will be in charge for a while, then, it may make sense to discuss with the developer and ask for additional financial details for the sake of transparency. Bottom line is and as crazy as it may sound, (speaking from own experience) when you own property in “association” with others, as owners it’s our collective funds that pay for everything, but we “forget” /don’t care/don’t know how to fight back etc when we are dealing with mediocrity and disservice. Sorry, I am a heavily disappointed condo owner who has experienced rhetoric, false narratives against me in our self managed condo association where taking sides with people of same culture, race has always taken precedence over solving financial problems. Hence, my answer to your question the way I answered.

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