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Post by Admin on Apr 30, 2015 7:47:50 GMT -5
Is there anyone out there who would study, in detail, checks and line items and try to correlate the expense to the line item? Some of these are easy but many are nearly-impossible to identify without some numbers gymnastics. As stated at the April 2015 BOD Meeting, the Board intends to start posting this info for homeowners, but I wouldn't hold my breath. It is not rocket science to post a few extra pages of content along with the currently-inscrutable "financials" and I think it would have already happened if the intent to do this was genuine. Maybe they want to wait for the new fiscal year April 1 to do this?
This information is important because when expenses are not accurately attributed to either their related line item and/or their category (or even the right budget), it results in inaccurate budget analysis upon which the next year's budget is proposed. Additionally, if expenses are "hidden" by credit card charges and bundled as a single $8,000 monthly Suntrust Bank payment, the expenditure is invisible. Therefore there is no accountability unless someone requests a records inspection of the SunTrust credit card receipts.
Members would be smart to take a more active role in the finances of SLohA in the future! Why? Because it is quite possible that we are NOT a true HOA, as defined by Florida law. Without the behavior constraints of Covenants, and without the expanded provisions of the Homeowners Association statute FS720, we are just a not-for-profit corporation. Owners become more vulnerable consumers by virtue of an absence of these protective governing documents and laws mandating HOA behaviors.
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Post by jimherbst on May 1, 2015 4:48:17 GMT -5
I would volunteer but, right now, I'm stuck in Wisconsin on some urgent business. Let me make some suggestions, however. Ask to see the General Ledger and Chart of Accounts. The General Ledger, records all financial transactions according to the Chart of Accounts. Each posting on the General Ledger makes reference to the individual account (e.g., consumable supplies, salaries and wages, etc.) to which the transaction is debited or credited. In order to decipher this information, one must also have the Chart of Accounts. The Chart of Accounts will list the codes (e.g. code no. XXX for consumable supplies). The General Ledger is most probably kept in some form of computer software such as Quickbooks in order to facilitate completion of the year-end financial statements and tax return.
With respect to the credit card bill, there should be a monthly statement of individual charges from the credit card company. But, if an individual credit card charge is a large amount, it should also be separately posted as an entry in the General Ledger.
P.S. Beware of "journal entries". These are essentially fudge factor entries posted to the General Ledger in order to make the books balance - sort of like when you make a posting to your check register to reconcile it with your monthly bank statement rather than going back and finding your error. They are, at best, a sign of sloppy bookkeeping. At worst, they are a indication of possible embezzlement. Auditors who see too many journal entries in the General Ledger will refuse to issue an unqualified opinion.
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Post by Admin on May 2, 2015 7:13:08 GMT -5
@jimherbst: I appreciate your spirit of wanting to participate in the ongoing quest to better understand our SLohA financial business and think you could bring a lot of insight and knowledge to this area--wish you were here. A Chart of Accounts with brief explanations has previously been requested but MANBOD refused to provide information. In order to better understand the barriers to acquiring baseline financial information, I am posting a recent series of email exchanges between Member and MANBOD. I think it will become very obvious that BOD does not wish owners to knowledgably participate in SLohA financial matters as evidenced by MANBOD's final (and only) response below.
The initial inquiry was made informally by email so that Member could better prepare for the Budget Meeting. As you can see, this email was ignored by MANBOD, prompting a second request.When this inquiry was not acknowledged or answered, Member paid $6 to certify an Official Records Request in order to assert his legal right to obtain information about Owner's Records and also about the Proposed Budget which had already been BOD-ratified but not made available for Owners' information: Here is MANBOD's professional and considered response:Here is another exchange which further clarifies the position of MANBOD; this was a separate question (purported increase in water costs) but is related to a Member's legitimate request for information in narrative form:And here is Member response "banging head against brick wall":I would also add that financial information is not accessible in general; raw (source) data is downloaded to a proprietary format resident only to the TOPS software, which is very expensive and not generally available to the public. It is sophisticated software which (I believe) was developed for real estate brokers (which Stmbug Ixx Inc is). (I am familiar with it from my work as a real estate agent.) The financial reports we receive are derivative reports and additional input is entered by Stmbug Ixx Inc. with notes and assigning budget line items etc. The resulting pdf reports are "read only" and cannot be manipulated as one can with an Excel report. This makes member scrutiny even more difficult. We have also asked that reports be converted to an Excel report (a matter of a few clicks) and provided to members but this, too, was ignored.
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Deleted
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Post by Deleted on May 2, 2015 10:25:49 GMT -5
Has the new manager been made aware of these facts regarding owner(s) unable to get records?
Maybe we should try another avenue of getting these records by going thru the new manager. But then again, he will refer the request to Ms. Shrodr at Stmbug Ixx, Inc., which will no doubt once again be promptly ignored and thrown in the waste basket.
So, what are owners to do in order to get viable financial info that has been previously and properly requested, and over 6 months ago, at that, yet still remains unanswered?
After reading these fruitless email requests and exchanges between management and this poor owner (beating their head against a brick wall,) it really smacks of them hiding something(s).
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Post by Dick Tracy on May 2, 2015 11:00:06 GMT -5
Just my opinion, but at some point in time a Forensic Audit will be needed after the chips fall in place.
Why would management make a owner jump through so many hoops, to better understand these financial reports.
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Post by jimherbst on May 3, 2015 0:47:05 GMT -5
I did not know the history of the requests for info. on the Chart of Accounts. Based upon your description of Stmbug Ixx's response, I am becoming very suspicious. I see no legitimate reason why Stmbug Ixx would not want to cooperate in helping SLohA members better understand its financial reporting. For the record, I am now willing to financially contribute to the cost of a forensic audit.
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