2014 March 19 BOD Minutes + UNOFFICIAL Min/Owners Comments

According to the statement or whatever that was that MK read for the Board, she/they do not know the difference between a forensic and a financial audit.  So, here are cut 'n paste excerpts of a discussion--by an accountant--explaining some of the purposes and focuses of these two very different audits.


What is the difference between an auditor (who conducts traditional financial statement audits) and a “forensic” accountant/auditor?


FORENSIC AUDIT
Forensic accounting is the specialty practice area of accountancy, which describes matters that result from actual or anticipated disputes or litigation. “Forensic” means “suitable for use in a court of law”, and it is to that standard and potential outcome that forensic accountants generally have to work.

A Forensic Audit is an examination of an organization’s or individual’s economic affairs, resulting in a report designed especially for use either in a court of law or used as part of a nonprofit’s Risk Management Program for a protection of assets. Forensic Audit is also used to determine the existence or non-existence of conflict-of-interest violations, i.e., profit or gain from insider information occurring within the ranks of the nonprofit’s board members, employees, directors, or executive committee members.

This type of audit is a detailed, all-inclusive physical examination of the nonprofit’s tangible assets, by a specially trained examiner/auditor to focus on and determine legitimate or illegitimate asset business use by board members, directors, employees, or executive committee members. A Forensic Audit also includes an examination of the nonprofit’s finances and financial reports to determine authentication and whether or not such reports reflect the true financial health of the nonprofit or if a forensic audit and analysis term (“cooking the books”) is occurring.

...it’s not unusual for the State Attorney General’s Office, the Federal Bureau of Investigation (FBI) and the Internal Revenue Service (IRS) to become involved in a Forensic Audit, especially when felony violations are uncovered.

FINANCIAL AUDITS
Financial audits are intended to show whether a company’s financial documentation matches its financial claims and all represented financial information is accurate and correct. (i.e.) IRS tax filings or submitted financial reports.A Financial Audit merely verifies the accuracy of financial information submitted by the bookkeeper or financial officer of a corporation and usually does not take into account or explore the theft or misuse of corporate assets as a Forensic Audit does. A Financial Audit’s primary function is reconciliation of the books.

DIFFERENTIALS
It should be obvious to the readers that the two main differentials are; 1) a Forensic Audit is a key component of a nonprofit’s Risk Management Program and is used as a checks-and-balance system to ensure legal compliance by board members, directors, employees and executive committee members and 2) a Financial Audit strictly deals with ensuring the numerical values or accounting numbers submitted by the bookkeeper, chief financial officer or accountant are in balance and a reconciliation of the nonprofit’s financial record is achieved.

BOTTOM LINE
Furthermore, to reiterate without being redundant, a Financial Audit hardly, if ever, takes into account theft, embezzlement, misuse or misappropriation of a nonprofit’s assets and generally focuses on balancing numbers.

It would be nice if we didn't pay school taxes--but we do (at least I do!)  My TRIM notice says that I am taxed for State School taxes at a millage rate of 5.299 and Local School Board at millage rate of 2.248.

But, in case I was paying this tax in error, I phoned the Polk County Property Appraiser and posed the question:  "Does a 55+ retirement community realize any tax exemptions or reductions in payment of school taxes?"

The answer is:

"Qualfing non-profit corporations that own common area tracts of land are exempt from paying ALL taxes on that property IF the value of the property is assessed at "Zero".  That is the case with most of the 14 tracts owned by SLohA (lady looked this up).  If an SLohA-owned property is NOT a common area, it must pay taxes including school taxes.  Being a 55+ community offers NO exemption from school taxes even on the non-common area parcels."

The second answer is:

"NO individual is exempt for any reason from paying Polk County School Taxes.  The only exemptions are overall reductions in your assessed value based on homestead, widow/widower and Senior (65+ and income-qualified)."

If you would like any more information, you could call Interim Finance Director, Polk County School Board, Cindy Wolfe, at 863-534-0540.

There is a separate Thread on this Forum about "Over 55-Qualified Communities".  In short, these Federal and State qualifications protect the corporation from age-discrimination lawsuits and do not confer any tax offsets or advantages.

Also, again, the Original Covenants do not contain a 55+ age restriction; however, the State reporting qualifications are being met by SLohA and protects it against age discrimination practices.  In reality, age restriction is not enforceable.

It was an owner.  I guess she was not corrected by the BOD either because they didn't know any different or they were basking in the shout-out and the clapping that they "saved thousands of dollars by following the Covenants".  I knew it wasn't true but called anyway.  I like to check my facts.  One phone call--5 minutes--then another 5 minutes to post.

This is not the first time I heard this rumor--but this kind of misinformation just seems to circulate and gets  institutionalized.  This reminded me about the rumor that "Polk County Emergency vehicles won't come on a call to SLR if we have speed bumps on the road."  No one questioned that either and it got mindlessly repeated over and over without examination, probably by anti-speed bump people.  A phone call is all it takes.  5 minutes.  Bizarre.

So, I heard from a Doubting Thomas whilst out and about yesterday who was unconvinced that our property taxes included "school board taxes".  So, I downloaded a random TRIM notice from the Property Appraiser's website (below):



You will have to use the member: saddleviewer and password: 123abc to see this if you are not registered as a member.

The "Official" version entered into our business record recording who can sign SLohA depository accounts.  According to audio record, Brdun, Mnc, Nttr, Suthrd and Director Brnd as well as VENDOR Bd Stmbug Ixx of Bd Stmbug Ixx Inc can sign checks.

Maybe it's that skunk that was here posting on the pre-pre medication meeting

What the hell is this mange talking about now?
Who's putting out inaccurate information about association business? I want to know! Oh, wait, better yet, let's just talk about that for a moment.

Several of us know for a FACT that there has been so very many discrepancies between what's actually discussed at these board meetings/workshops and what MANBOD's "minutes" read. When you go to the meeting then read MANBOD's version of the minutes, it's as if they are two different meetings.

Seriously, did you really think you could get away with that comment? Especially in light of the fact that we know who the real bull shitters are...MANBOD.