As previously reported the Meadowcreek attorney did turn over a box of receipts for examination. While not complete, the records did show some patterns that are disturbing. Here are a few items for consideration:
1. Not a single invoice was marked paid. It seems that a good practice would be to stamp the invoice paid, and provide a date and a reference check number. This makes it a lot easier to reconcile the records.
2. Large receipts did not have an approval for payment by a board member. In fact, payments exceeding $1000 and up to $8000 + did not have any approval for payment on the invoice. Who authorizes such payments? Is approval required at some level?
3. Invoices for town home repairs that were staggered according to level of completion were not approved for payment by a board member. Who inspected the work to insure that the partial payment was actually due and payable? Who determined that the work was actually completed and to standards? Some of these were quite large, and deserved closer scrutiny.
4. Many invoices included state sales tax. If we are a non profit corporation under Texas law, are we required to pay sales tax? Several thousands of dollars might have been retained by the Association if we are exempt from state sales tax.
5. Petty cash expenses did not include a reason for purchase. Pizza bills of $200 were noted without any explanation. Why was this necessary? Who monitors these expenditures and approves the reimbursement?
As no bank records for the entire period (2008-2009) were included in the box of records, it makes it almost impossible to reconcile the expenditures. Maybe a request for additional items is in order. Also missing were the contracts/agreements with suppliers that would explain how and when payments were due for larger expenditures.
It appears that little oversight is in place for the expenditures made by the Association. Some changes are needed here. Money does not grow on trees, and our contributions to the Association should not be treated with such casual regard, especially when we hear that we are out of money.
It also appears that the only way many questions will be answered is through a true audit of all financials. This, while probably costly, would probably be worth the expenditure. What do you the reader think? Lets see some comments.
1. Not a single invoice was marked paid. It seems that a good practice would be to stamp the invoice paid, and provide a date and a reference check number. This makes it a lot easier to reconcile the records.
2. Large receipts did not have an approval for payment by a board member. In fact, payments exceeding $1000 and up to $8000 + did not have any approval for payment on the invoice. Who authorizes such payments? Is approval required at some level?
3. Invoices for town home repairs that were staggered according to level of completion were not approved for payment by a board member. Who inspected the work to insure that the partial payment was actually due and payable? Who determined that the work was actually completed and to standards? Some of these were quite large, and deserved closer scrutiny.
4. Many invoices included state sales tax. If we are a non profit corporation under Texas law, are we required to pay sales tax? Several thousands of dollars might have been retained by the Association if we are exempt from state sales tax.
5. Petty cash expenses did not include a reason for purchase. Pizza bills of $200 were noted without any explanation. Why was this necessary? Who monitors these expenditures and approves the reimbursement?
As no bank records for the entire period (2008-2009) were included in the box of records, it makes it almost impossible to reconcile the expenditures. Maybe a request for additional items is in order. Also missing were the contracts/agreements with suppliers that would explain how and when payments were due for larger expenditures.
It appears that little oversight is in place for the expenditures made by the Association. Some changes are needed here. Money does not grow on trees, and our contributions to the Association should not be treated with such casual regard, especially when we hear that we are out of money.
It also appears that the only way many questions will be answered is through a true audit of all financials. This, while probably costly, would probably be worth the expenditure. What do you the reader think? Lets see some comments.
I really think that this board has been abusing their power, and here most of us are, not paying attention, so why not??? This right here is the prime example of the root of greed and corruption. They're doing it right under our noses! THIS NEEDS TO COME TO A STOP I'M TIRED OF PYAING THOUSANDS FOR MY GRASS TO BE MOWED AND FOR SLOPPY TOWNHOME REPAIRS
ReplyDeleteSeveral Town Home members have voiced similar concerns regarding the quality of repairs. In fact, they feel that some work was done in a manner that will only result in further damage (paint over mold, etc). Someone needs to question the contractor and get some answers.
ReplyDeleteI feel as home owners we need to hire a lawyer to go after the HOA's lawyer, managment, and the old sitting board members this would not include the newly elected board members. As an owner of a 501 non profit anyone that had the right to any funds and dispursment of those funds are liable and can be sued for misappopriated use! I am fed up with board members that run things for thier own benefit. I cant wait till tomorrows meeting the old board members better have some answers or I'll get my own lawyer and sue them all!
ReplyDelete