Independant Financial Audit

I live in Texas. Our Condo By Laws state that.......

///"" To keep and maintain full and accurate books showing all of the receipts and expenses or disbursements and to permit examination there of at any reasonable time by each of the owners and to cause to be prepared by a competent CPA and annual financial statement of the Association.

To prepare and deliver annually to each owner a statement showing all receipts, expenses or disbursements since last statement.////""

1. The annual HOA figures shown at the annual HOA meeting are the HOA generated numbers.

2. I want to see the competent CPA annual financial statements that the by laws require. (Will these be detailed or what should they look like?>>). I am thinking this CPA document should validate their annual HOA numbers,or by looking at the CPA report I should be able to "Connect the Dots" on their annual HOA report, right? This document should have figures on it right?

3. What if these annual CPA reports that the by Laws require can't be produced?

4. If it proves that the annual HOA financial numbers are grossly inaccurate, can we as the HOA community get a petition to get a full financial audit of the MC? If so...what would the percentage need to be? I realized or have read that a independent audit could cost as much as $17,000 for a HOA that generates income in excess of $1,750,000 per year, which our HOA falls into that category.

5. Could lack of CPA reports be a justification for the full independent audit? I am open to anything to include calling the Local News troubleshooters etc.

Ma'am, I am not on a witch hunt. Hear me out.

I live in one of the 2 public communities. I attend monthly HOA meetings last 6 of 8. Of the 1275 HOA homeowners there is usually only one other man in the crowd other than me.

Now the reason I want to get to view the finances is that during a special meeting for the NON gated communities last week the President of the HOA stood up and stated that by Law we had to pay the exact same dues as the other gated communities which is FALSE.

Our By Law Amendments state that the Gated communities will pay significantly more than the non gated communities... This is NOT happening and I am being Over charged. The MC lady chimed within 10 seconds of me calling them out on their bad info fumbled around for a few seconds and stated the the gated communities only cost the HOA 3% more, and they are only getting grease for their gates. A week before at the annual HOA meeting a man had recently moved to our HOA from a Ritzy area in another part of town and complained about the HOA prices. He lives in a gated community. The BOD fired back we have 10 gated communities and all these private roads to take care of.

I want to get to the real cost of what our non gated communities are actually costing and get our rates reduced. I think we are paying approx 50% more than we should, using their figures. I am not going to get "steam rolled" by a 3% figure and take it as fact. This 3% figure was pulled out of the air withing 10 seconds of the president stating we had to be charged the same dues as the other 10 communities.

This HOA knows all the parking rules and all the trash can rules. The MC that manages the day to day business get $200,000. They need to know the rules before they bill us. I understand the BOD is volunteer. The MC is not. Had I not attended the last 6 or 8 and have heard all the whispering and we will discuss it in the executive session I probably would not being here seeking free advice. Luckily everyone here is not suspicious of others motives. So thank you kindly for your input and have a great Holiday Season.

John,

I would caution you about discarding advice that challenges your thinking. Even if the presentation of the post might not be agreeable, the intend of the poster is to assist. The members of this forum don't know what you know. What might seem to be common knowledge to you isn't to others who are not involved in it. When someone on this site challenges a posters comments it's because they saw something in the way it was presented or information was missing that the OP thought everyone knew. Challenges can be very beneficial if they are allowed to be. At the very least, it's good practice in explaining the issues better.

It's also possible that some posters have only read this one thread and therefore only know what you posted in this thread. That's the danger of having multiple threads that ask the same question.

Melissa,

John has several threads on this site that deals with the same issue. I suspect it's because this issue is one he wants to resolve and values our input. Here are the links to his other posts:

Texas HOA Audit Question

Looking for Texas HOA Rule Expert

Request to my Texas HOA MC Is this OK????

Independant Financial Audit

It is all clear as day down. Thanks for the clarification.
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It's the best bluffers, cheaters, or best card holders that win the pot....

Former HOA President

Thanks Tim. I got enough information for this board to move forward with a constructive strategy. I am not out to cause trouble for the HOA. I can honestly say I want our board and HOA to be successful. I just want to get charged a fair price for services rendered.

Our governing documents state that the non gated communities will pay significantly less for dues than the non gated communities. Being charged a fair price is my only motivation. I am tired of pitching in for the eventual paving of the 15+ miles of their private streets, the decorative light poles, the full entrance gate replacements, and on and on.

The non gated communities (2) generate almost $500,000.00 income every 3 years for the HOA. If it was not for trash service I really have a hard time putting my finger on what they are doing for me. Well I take that back. I did get a ticket for my next door neighbor's trash can once, and the HOA also attempted to give me a ticket for my trash can being out while I was in the process of cutting my lawn once too, so I guess I am getting something after all.

Tim..Thanks again your on the Christmas mailing list!
:o)