Reviewing Financial Records Issue

My condo development was self managed for over 30 years. Recently, the board contracted a property management company. Financial discrepancies involving the treasurer were uncovered and that individual resigned. Some residents, including myself, pushed the board for a complete audit since one was never done - only financial reviews. The board decided not to do an audit and announced a financial review is sufficient. Now, the board president is conducting their own audit of a few past board members. I served on the board several years ago and was presented a letter by the association's law firm. The letter states I must produce receipts for all the items purchased for the association during my tenure that I was reimbursed for within the next 14 days. These receipts were submitted to the treasurer at the time of reimbursement for a check to be cut. It then states that their records show that I purchased items for gutter repair, caulk, light bulbs, etc. when I handled the grounds, not buildings. If the current president would review the meeting minutes for that time period, they would see that the director handling buildings resigned so the president at that time and myself were handling the work orders pertaining to the buildings.

The letter also states that board members cannot be compensated and they noted I didn't pay a month during my tenure. I did pay and have the cancelled check to prove it.

The spreadsheet created by the president for items that I must justify is riddled with errors. This just further confirms the need for the board to complete an independent audit.

What's everyone's take on this? BTW - the current president dislikes me and has singled me out on multiple occasions.

I wasn't an officer. I was a director. My main responsibility was to oversee all things related to the grounds -- lawncare, snow removal, roads/driveways, sprinklers, care of landscaping, etc. The director that overseen the buildings stepped down at the beginning of my tenure, so I helped with all of those work orders for 8 months.

The treasurer, who obviously didn't maintain the best of recotds, also served as the secretary.

I'm not sure if the current president was authorized, since they aren't transparent.

At this point, my inclination would be to tell the attorney his questions should be directed to the Association’s Treasurer. Organize all of your documentation so you are prepared to present it. But it is not your responsibility to prove the Association did not misappropriate money - it’s the Association’s responsibility.

On the other hand, it might make sense to clear it all up right now. Is the attorney a decent person? You could offer to answer his questions, but only if he will sit down with him in person so you can demonstrate all of what you are saying. At that time you could also mention the personality conflict, and express that you hope the Board President does not make any public accusations or slander you in any way based on what appears to be a very careless “audit.”

Sound advice, however, the attorney's letter stated to present the documentation to the HOA president and to direct all questions to the HOA president. I'm not comfortable doing that, since this person is a bully.

The current president also is making the accusation that I exceeded the $400 limit by purchasing 5 trees for delivery and install on the common grounds. The amount was @ $1300. I have an email discussing this purchase along with a number of other improvements with the board via email. Again, this was during the height of COVID so board meetings weren't consistent. I just feel that this borderlines on being very petty since other board members aren't being scrutinized.

At the meeting, I would also ask the Board if they authorized the President to incur legal costs by having the Association attorney send you a letter when a simple email would have produced the same results.

It goes without saying, keep copies of what you would give to the board for yourself.