HOA's Money Missing

My Association's money was missing between 2000 and 2006 between 500K and one million dollars. A new board member and homeowners wanted to do inspection of all records, but the property management company and other boards denied and refused. This is unacceptable. What should people do? Any good ideas? Thanks.

IMO-get a lawyer and do it right. The PM works for you and HO's are entitled
to review docs.

In my opinion....."I hope."

No annual financial statements sent out to homeowners in 7 consecutive years. No enhanced records provided for inspection and no updates of bank cards when changing in board, and a lot more.

Homeowners did, but no response.

does not your by-laws require an annual audit. what about your tax liabilities. our by-laws state financial records are nust be available to
all residence.

Hi

First, how long have you been living in this association?
Do you have the last Audited financial statements, budget and reserve analysis?

If so, contact these people and ask for copies of any subsequent work they did for your association. They may not give it to you directly, but can tell you when they did the work. and even who did the work after they stopped. be personable and reasonable and youll get a lot of info.
The laws hold public accountants and reserve analysts accountable for all sorts of bad things!

With this information, write a registered letter to your BOD and your managment co requesting this information for the missing years. requesting they reply and provide the information within 14 days.
You are entitled to view the originals, and receive copies if you wish of all minutes of open meetings for this time period.

In the meantime find some other owners who are as concerned as you are and send a petition to the board requesting them to produce this information at the next board meeting for residents inspection.

I would also ask other concerned owners to assist with a retainer fee for an attorneys opinion. You may want to get him to write the letter for you.

The response or lack of it will prompt your follow up actions.
Best of luch. This is a very bad state of affairs.

AdrianC

" they said that they do not receive cancelled checks" Well that much could be true. There was a new Federal banking law passed last year allowing the depositing party's bank to destroy checks once paid so of course they're not returned. Haven't you noticed this in your personal bank statements? But - and a big but - you and your management company - can access your account on line and print out missing checks - or do as I do -go into the branch and have them print out the missing checks - banks are the ones who wanted this law, so it doesn't bother me one bit requesting they print out the missing checks.

Thanks Harold for the feedback. I understand that you don't mind to print out the canceled checks from the computer. My BOD and management did not want provide any enhanced records.

A good place to start, would be to review the documents you are required by law to receive -

1365. Unless the governing documents impose more stringent
standards, the association shall prepare and distribute to all of its
members the following documents:
(a) A pro forma operating budget, which shall include all of the
following:
(1) The estimated revenue and expenses on an accrual basis.
(2) A summary of the association's reserves based upon the most
recent review or study conducted pursuant to Section 1365.5, based
only on assets held in cash or cash equivalents, which shall be
printed in boldface type and include all of the following:
(A) The current estimated replacement cost, estimated remaining
life, and estimated useful life of each major component.
(B) As of the end of the fiscal year for which the study is
prepared:
(i) The current estimate of the amount of cash reserves necessary
to repair, replace, restore, or maintain the major components.
(ii) The current amount of accumulated cash reserves actually set
aside to repair, replace, restore, or maintain major components.

1365.(c) A review of the financial statement of the association shall
be prepared in accordance with generally accepted accounting
principles by a licensee of the California Board of Accountancy for
any fiscal year in which the gross income to the association exceeds
seventy-five thousand dollars ($75,000). A copy of the review of the
financial statement shall be distributed within 120 days after the
close of each fiscal year.

Have you rec'd -
1365.(a) 4. Notwithstanding a contrary provision in the governing documents, a
copy of the operating budget shall be annually distributed not less
than 30 days nor more than 90 days prior to the beginning of the
association's fiscal year.