Review of Financials and Minutes (December 2009)
After my regular quarterly review of the HOA financials, I sent the following email for feedback/answers.
Date: Thu, 3 Dec 2009 17:54:42 -0600
Subject: Review of Financials and Minutes
From: James Nunn
To: theboard@plantation-springs.com
CC: atuey@principal-mgmt.com
Hi Board,
I just completed a review of the financials and some records for the Association, and I wanted to follow up with some questions that I asked April (some of which she has already provided a response to), and raise a couple of others having now had an opportunity to further review the information I collected during my visit to PMG's office.
1. In the October 2009 report, it is shown that we have paid a total of $136.32 towards a $250.00 annual fee for workers compensation. April advised that the board has been paying this fee to cover injuries to volunteers who do work in our community (for example, creek clean ups). While the cost of this is minimal, I do not see the need to pay for insurance for workers (or employees) when we do not have any employees (as defined by Texas). The general liability and umbrella insurance that we pay each year is designed to cover any issues that may occur in our common areas, and the worker's compensation is an unnecessary charge for our Association. I would ask that board to consider not continuing this fee next year.
2. In May, an entry was made for a bad debt of $198.00, but there is no record of this being discussed by the board, or any approval that this amount was to be written off. April is checking this, as it may have been coded incorrectly, but April was not aware of what this may relate to. This is submitted for your review.
3. A charge was made in October for "Management Fees - Other" and when I asked April about this, she advised that this was to bring the Association in compliance with SB 1919 (81R). The filing fee for this document is significantly less than the charge made, and I wanted to know what the extra charge may have been for. (I have not asked April for this as i had to review the bill, and I did not have access to this during my visit with her.)
4. Currently this year the Association has incurred $1615.18 for Miscellaneous Expenses. This exceeds the planned budget for this item. Can you please explain why we have such high costs for this item?
5. The cost of landscaping, which does not have a budgetted amount, is currently $2070.62. Can you please explain what these unbudgetted costs relate to?
6. Finally, after a review of the board minutes, I have a suggestion, and a couple of questions relating to the official record of the Association.
(a) As the minutes are the official record of the Association, for a homeowner to be assured that decisions are being made at a meeting where a quorum exists can you please list all directors who are present at future meetings? (I raised this with April, and she advised that she would raise this with the board.)
(b) In the minutes of April 13, 2009, there is approval to remove a tree at the rear of a property on Whitefish Lake Drive, however there is no approval of the amount for this. Can your please advise what this amount was?
(c) At the same meeting (April 13), the decision was made to maintain the landscape of a property on Nantucket Court, however there is no approval of the amount that would be incurred, or the proposed action of the board to recover these costs. Can you please advise what the current expense that has been incurred relating to this decision, and what has been done to recover these costs?
(d) At the meeting of the board on September 9, 2009, the board convened into Executive Session for 15 minutes. Can you also advise what the purpose was for the board to convene into executive session? Also was any decision/action made as a result of this meeting? While I am not asking for the details of the discussion, which remain confidential, I am asking for the reason that the board decided to hold an executive session during the meeting (for example, "legal issues" or "discussion of delinquent accounts").
I appreciate your review of the above items, and look forward to your feedback.
Regards,
James Nunn