Clarification on Financial information required for an assoc.

Started by AnneD • 6 replies • 1296 views

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AnneD (Washington)
Posts: 2

Posted:

This concerns a WA state association. At the last annual meeting a so called Balance Statment was circulated with no income statement. I questioned this and the Treasuer looked baffled. I explained the need and asked that it be completed. Months went by an income statement was received and it was a mess, retained earnings did not balance etc. The rest of the Board members were notified and nothing happened. An owner sent a global letter citing the concerns and the responsibilities of the Board. They siad a CPA would be hired. Two months later after another request ofr an update it is obvious that that has not happened. The owner had asked for copies of bank statements for certain periods to have records.
I know this is just plain bad management and I blame the President whom seems to run her own show shall we say.
State law is clear the CC&R are clear and I am just dumbfounded by the situation. In your experience what would you do now.

RobertR1 (South Carolina)
Posts: 5,164

Posted:

AnneD,
Go to the next Board Meeting and make a formal request for what you want. At the same time use your covenants to determine what is required by the Board. Frankly, to me, if there is anything you, as an owner, want to have record wise, make a formal request and make sure it goes in minutes. From what you are saying, you are getting a response, albeit incomplete and inaccurate, but a start. It could well be you are asking for something from someone that has no idea how to get this information. It will take some time and it will require patience and work to get the ducks in a row. I would think if the owners that show interest were to group together and attend meeting, you would be better served. I also suspect this is going to be unsettling for the association and cause turmoil.......so be it. You all will benefit. Keep good records of your requests and their responses.

If you are absolutely sure the management (BOD) knows what to do and won't do it, don't rush out and get a lawyer. Remember it took a while to get where you are at, it will take a while to get back on track,...... work it out....the best possible way in the end.

SusanW1 (Michigan)
Posts: 5,202

Posted:

I'm not sure what you want to see. Most times the following is provided to Members at the annual meeting.

Annual Revenue / Expenses vs. Budget report
Reserve Fund activity
Balance Sheet showing all funds, including Reserve Fund, emergency, etc.

You are entitled to see all financial paperwork, including a copy of all filings with the IRS. Simply request it in writng and ask for an appointment with the Treasurer. Expect to pay for any copies you want.

There was a great one-page chart shared here showing a model set-up for reporting. Maybe someone can remember what post it is on.

RobertR1 (South Carolina)
Posts: 5,164

Posted:

Susan,
I think you are referring to a chart that Roger from Colorada put up several times. It should be easy to find in the search section top right this page.

Type in "Roger", you will find it.

GlenL (Ohio)
Posts: 5,491

Posted:

Homeowners that attend our monthly meetings receive a Balance Sheet showing all Association funds on deposit, a Profit & Loss statement for the month showing the monthly & YTD income and expenditures by category and a listing of the delinquent accounts. (With H/O identification removed.)

Studies show that 5 out of 4 people have problems with fractions

MaryA1 (Arizona)
Posts: 7,043

Posted:

Anne,

This may just be an example of a board treasurer with no knowledge of accounting, much less bookkeeping! This happens all too often with our volunteer HOA boards! The best you can hope for is that a CPA is hired to prepare the taxes each year and complete a review, at least. This would also generate a properly prepared financial statement for year-end.

AnneD (Washington)
Posts: 2

Posted:

Mary, yes, you are quite right. Willingness but lack of knowledge. The President is not showing good judgement either. It is my intention to speak to a few owners and send a brief, factual email to the Board. There is usually more power in numbers. Thanks again.

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