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| Thursday, January 08, 2009
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| IHG Insurance (National Insurance Provider) |
| Providing Community Association Insurance for over 25 years: D&O Liability, Crime Products, Umbrella Coverage and Property Manager's Errors & Omissions Liability. |
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| Author |
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ShelleyD
(Michigan)
Posts:22
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| 10/06/2008 9:18 AM |
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I have been going over our expense reports for the last couple of years and have noticed that our Past President was being reimbursed through his Chrysler Jeep dealership for Postage, Copying newsletter expenses every month($80.00 per mo.) and wanted to be reimbursed for Revised By-laws & Restriction Consolidation expenses for $791.30. They spend money drafting up the new by-laws before taking the vote to the people and they spent money having signs made to vote yes for the new by-laws and if you wanted a NO vote you had to make your own sign which they would go around in the middle of the night and take them. We had a Communications Director at this time but the newsletter stuff still went through the Presidents company. I have wrote about several complaints we have about our board and keep asking for advise because many of you have educated me greatly and I want to make sure I make good decision for the members that voted me in the board. I ask you as someone who does not have the authority according to our attorney to call and ask for legal help as to what is legit in this community. We have no written budget so it is like a free for all.
Please help! Should the IRS be contacted or is it OK to run other business through your own. It sounds illegal to me. |
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KirkW1
(Texas)
Posts:1190
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| 10/06/2008 6:03 PM |
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I don't see anything in your post that would warrant any attention from the IRS. I will deal with a number of issues I believe you raised.
The president has done copying at his personal business and then request reimbursement. There is nothing wrong with this. The only restriction would be that if the reimbursement exceeds actual costs, then it becomes income. But it would have to be flagrant to attract any attention.
Second thing is them printing up the proposed amendment before the vote. This is required. Anything less is just not doing it right.
You also mention paying for signs to vote yes. Again this is legal.
Now the taking down of no signs is theft. But you have to prove it. And further, accusations could be considered slander if you can't back them up.
As for the association attorney, he represents the Board. They are the only ones to authorize his time. |
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SusanW1
(Michigan)
Posts:2316
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| 10/06/2008 6:48 PM |
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Shelly - this concerns me when you said:
"We have no written budget so it is like a free for all."
Do you have a Treasurer? How are bills submitted and paid? If there is no budget, then how do you know you even have the money to pay the bills? Does this Treasurer give a report at the board meetings?
You need to do more investigating. These expenditures may be approved OR there could be some irregularities going on.
You MUST insist on seeing the budget.
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ShelleyD
(Michigan)
Posts:22
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| 10/07/2008 7:15 AM |
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Susan,
Thank you for your reply. We do have a treasure that runs the community. Yes our treasurer has power over our President that's how weak our President is. There is not a planned budget. Yes! There is no budget! Yes you heard that right. No budget! At last years annual meeting our treasurer even made a comment... well we will do this if there's enough money. People yelled out don't you have a budget. They did not reply and laughed. We have money in our account and they spend whatever they want. The treasurer has something going on with the landscaper because this guy does and bills for whatever he wants, no signed contract at all and no proposals for work to be done. I am suppose to approve the landscaper bills and some things I haven't approved because the work was not authorized by me and the treasurer pays them anyway. From all the crap and confusion that is going on and trouble it is to get these people on the straight and narrow I think I should just wait until the next time we vote and just go door to door again and try and get these people out. This is utterly ridiculous of what you have to go through to protect your own money and home. To answer all your questions..the bills are sent to the treasurer and he just pays them. Yes, the treasure gives a report, he says how much is in each account and tells us what checks were written out and no not all expenditures are approved through the board. Example: Last year the Past President and our treasurer spent $17,269.00 on landscaping the front entrance to our sub. Yes, the rest of the board did not vote on it. The minutes state look for bids for front entrance landscape between 8K and 10K, that was October of 2007. The next time you here about a price is at the Annual meeting when the job had been completed already. People were furious of the price for what we got and the way it looked. Not that different then what we had there already. People aren't stupid we all have beautiful landscapes around our houses and know basically what you can get for $17,000.00 dollars. Sorry to ramble on but now I know why people can't stand HOA. |
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SusanW1
(Michigan)
Posts:2316
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| 10/07/2008 12:08 PM |
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Time for a recall - you certainly have amunition for it.
OR
wait until the next elections and be sure people are ready to serve.
In the meantime, request (get someone to motion for) an audit at either a board meeting or get up a petition of the homeowners demanding one. Call a special meeting, if necessary.
Looks like the wolves are running the chicken coop.
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