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JimK
(Utah)

Posts:4

06/13/2006 1:29 PM
What does the HOA have to disclose to the homeowners? The reason I ask is our HOA is now managed by a member and not a management company as before. Now we have a total lack of communication between the board / management and the members regarding matters. Many have asked for financial statements, budgets, etc and have been told that the HOA does not have to provide any information to owners? I thought that the HOA had to disclose all information to homeowners when asked. Is this not the case?

HaroldS
(Arizona)

Posts:904

06/13/2006 2:38 PM
All records should be available to members. What are your state laws? In Arizona an association cannot charge a member for making books and records available for review. They have ten business days from a request by an owner or a designated agent to make records available or to make copies of requested records. They can only charge 15 cents per page for copies of records. Records now aailable to the members even include pending or contemplated litigation. So many boards forget that the HOA belongs to and is financed by the members. It is not a secret society for the pleasure of the board. Harold

JimK
(Utah)

Posts:4

06/13/2006 2:51 PM
Thanks for the information as I have asked several times in writing with either no response or sorry you can't have access to these documents. Our association has turned into a secret society as they have closed meetings, discourage public input and never follow-up on any concerns. Thanks again

LuciusD

Posts:0

06/14/2006 4:23 PM
I think you will find that disclosure requirements vary from state to state. There is a movement in many states to increase statutory requirements for disclosure and open meetings. Enforcement of the state laws also varies widely. If you post the state your are in, someone will probably be able to tell you specifically.

CharlesC
(Washington)

Posts:9

06/15/2006 8:55 AM
We live in Washington state .My wife and I have been asking to see the bank records for the past three years .That's how long this one guy has been president. The president told me "you will only see what I want you to see". So far that is true .After a fruitless annual meeting, ending with two of the three board members walking out of the annual meeting with out adjorning and no budget approve ,we the homeowners still have not seen any type financial records to justify any budget.The homeowners where presented with 5 different budgets to select from. Do you see a problem yet ? This homeowner is not going to pay his dues and when we get to court I'll show the judge how many times I've contacted the board to see the financial and my personal file which is (two or three inches thick).Are you all out there getting the Picture yet. Oh by the way ,from what I've seen the president is the only one with the check book.CharlesC

JimK
(Utah)

Posts:4

06/15/2006 9:32 AM
Here is a perfect example of what we are dealing with as homeowners. I really like the first comment regarding incorrect accounting. Maybe this is why they will not make the financial reports avalible as they have something to hide. Also, our HOA is in Utah and as for laws I am reasearching that now. CPA Suggestions for internal control changes; SEE ATTACHED for complete explanations * Accounting records in 2005 are incorrect since switching from Advantage Management so time needs to be spent adjusting the balances to match the audit starting Jan. 2006. * Produce Monthly Financial Reports to be reviewed at monthly Board Meetings * Bank accounts be reconciled each month with copy stapled to the monthly bank statement * $500 limit on association credit cards (2) General Manager and Maint. * All GM credit card purchases over $500 to be pre-approved by the SSOA Treasurer. Treasurer to review all credit card purchases by General Manager * Active checking accounts reduced from 4 to 2, change them to interest earning accts. * Equipment- capitalization limit be established for equip. with useful life over 1 yr. * Accounts receivable-establish allowance for doubtful accounts receivable (ensures that the receivable balance is collectable) * Checks over $5,000 need a double signature * Consolidate financial accounts * Have yearly Budgets reflect actual and variances dollars * Board must approve all expenditures that will exceed budgeted expenditures. * All Board Meeting minutes should be read and voted on at the following meeting

JimK
(Utah)

Posts:4

06/15/2006 9:33 AM
Here is a perfect example of what we are dealing with as homeowners. I really like the first comment regarding incorrect accounting. Maybe this is why they will not make the financial reports avalible as they have something to hide. Also, our HOA is in Utah and as for laws I am reasearching that now. CPA Suggestions for internal control changes; SEE ATTACHED for complete explanations * Accounting records in 2005 are incorrect since switching from Advantage Management so time needs to be spent adjusting the balances to match the audit starting Jan. 2006. * Produce Monthly Financial Reports to be reviewed at monthly Board Meetings * Bank accounts be reconciled each month with copy stapled to the monthly bank statement * $500 limit on association credit cards (2) General Manager and Maint. * All GM credit card purchases over $500 to be pre-approved by the SSOA Treasurer. Treasurer to review all credit card purchases by General Manager * Active checking accounts reduced from 4 to 2, change them to interest earning accts. * Equipment- capitalization limit be established for equip. with useful life over 1 yr. * Accounts receivable-establish allowance for doubtful accounts receivable (ensures that the receivable balance is collectable) * Checks over $5,000 need a double signature * Consolidate financial accounts * Have yearly Budgets reflect actual and variances dollars * Board must approve all expenditures that will exceed budgeted expenditures. * All Board Meeting minutes should be read and voted on at the following meeting

SwanB
(Washington)

Posts:199

06/15/2006 9:40 AM
CharlesC: I live in Washington state and in an HOA too. I took the liberty of going to the RCWs for our state and copying the article which is relevant to what you are referring to. You will find the text following this. Your Board President is in violation of State statute whether he or she is aware of it or not. RCW 24.03.135 Required documents in the form of a record — Inspection — Copying. Each corporation shall keep at its registered office, its principal office in this state, or at its secretary's office if in this state, the following documents in the form of a record: (1) Current articles and bylaws; (2) A list of members, including names, addresses, and classes of membership, if any; (3) Correct and adequate statements of accounts and finances; (4) A list of officers' and directors' names and addresses; (5) Minutes of the proceedings of the members, if any, the board, and any minutes which may be maintained by committees of the board. The corporate records shall be open at any reasonable time to inspection by any member of more than three months standing or a representative of more than five percent of the membership. Cost of inspecting or copying shall be borne by such member except for costs for copies of articles or bylaws. Any such member must have a purpose for inspection reasonably related to membership interests. Use or sale of members' lists by such member if obtained by inspection is prohibited. The superior court of the corporation's or such member's residence may order inspection and may appoint independent inspectors. Such member shall pay inspection costs unless the court orders otherwise. 󞪄 c 265 § 14; 1986 c 240 § 24; 1967 c 235 § 28.]

WardellD
(Washington)

Posts:64

06/15/2006 8:23 PM
I would like to remind you again that this site does not know you and you should give these people the respect by being honest and by telling the truth. You have attended many board meetings in 2004 and never once asked to look at the records that were religiously brought every single month in a rather large and heavy tote box. Here is a paragraph from an email that was sent to you September 5, 2005 “As you recall, you were in attendance at the March 2005 annual HOA meeting and you spoke out at the meeting and told all homeowners that you had requested to look at the HOA records. One of the board members asked you how many times you had looked at the records that were available at the many meetings you attended in 2004-2005. If I remember correctly, your answer was “NONE”. You then stated to all homeowners in attendance that you would look at the HOA records the very next month (April 2005) following the annual meeting. Based on the meeting minutes you have yet to really follow through with your statement to the homeowners unless you count the less than five minutes you spent looking at the books in June 2005.” Then remember I came in and sat with you for a half hour and you looked at the books (If you would like me to post your request that you needed more time because a half hour was not enough, please give me permission. You also had the opportunity to look at the books when the management company had the books your intention is to harass the board any way you can. Now remember you just told these people you have been asking for three years. Thanks

ShirleyC
(California)

Posts:46

07/08/2006 8:11 PM
I am in Calif. and the davis sterling act (online) has a list of required disclosures by the board.

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