[et_pb_section bb_built=”1″ inner_width=”auto” inner_max_width=”1080px”][et_pb_row][et_pb_column type=”4_4″ custom_padding__hover=”|||” custom_padding=”|||”][et_pb_text _builder_version=”4.11.3″ text_text_shadow_horizontal_length=”text_text_shadow_style,%91object Object%93″ text_text_shadow_horizontal_length_tablet=”0px” text_text_shadow_vertical_length=”text_text_shadow_style,%91object Object%93″ text_text_shadow_vertical_length_tablet=”0px” text_text_shadow_blur_strength=”text_text_shadow_style,%91object Object%93″ text_text_shadow_blur_strength_tablet=”1px” link_text_shadow_horizontal_length=”link_text_shadow_style,%91object Object%93″ link_text_shadow_horizontal_length_tablet=”0px” link_text_shadow_vertical_length=”link_text_shadow_style,%91object Object%93″ link_text_shadow_vertical_length_tablet=”0px” link_text_shadow_blur_strength=”link_text_shadow_style,%91object Object%93″ link_text_shadow_blur_strength_tablet=”1px” ul_text_shadow_horizontal_length=”ul_text_shadow_style,%91object Object%93″ ul_text_shadow_horizontal_length_tablet=”0px” ul_text_shadow_vertical_length=”ul_text_shadow_style,%91object Object%93″ ul_text_shadow_vertical_length_tablet=”0px” ul_text_shadow_blur_strength=”ul_text_shadow_style,%91object Object%93″ ul_text_shadow_blur_strength_tablet=”1px” ol_text_shadow_horizontal_length=”ol_text_shadow_style,%91object Object%93″ ol_text_shadow_horizontal_length_tablet=”0px” ol_text_shadow_vertical_length=”ol_text_shadow_style,%91object Object%93″ ol_text_shadow_vertical_length_tablet=”0px” ol_text_shadow_blur_strength=”ol_text_shadow_style,%91object Object%93″ ol_text_shadow_blur_strength_tablet=”1px” quote_text_shadow_horizontal_length=”quote_text_shadow_style,%91object Object%93″ quote_text_shadow_horizontal_length_tablet=”0px” quote_text_shadow_vertical_length=”quote_text_shadow_style,%91object Object%93″ quote_text_shadow_vertical_length_tablet=”0px” quote_text_shadow_blur_strength=”quote_text_shadow_style,%91object Object%93″ quote_text_shadow_blur_strength_tablet=”1px” header_text_shadow_horizontal_length=”header_text_shadow_style,%91object Object%93″ header_text_shadow_horizontal_length_tablet=”0px” header_text_shadow_vertical_length=”header_text_shadow_style,%91object Object%93″ header_text_shadow_vertical_length_tablet=”0px” header_text_shadow_blur_strength=”header_text_shadow_style,%91object Object%93″ header_text_shadow_blur_strength_tablet=”1px” header_2_text_shadow_horizontal_length=”header_2_text_shadow_style,%91object Object%93″ header_2_text_shadow_horizontal_length_tablet=”0px” header_2_text_shadow_vertical_length=”header_2_text_shadow_style,%91object Object%93″ header_2_text_shadow_vertical_length_tablet=”0px” header_2_text_shadow_blur_strength=”header_2_text_shadow_style,%91object Object%93″ header_2_text_shadow_blur_strength_tablet=”1px” header_3_text_shadow_horizontal_length=”header_3_text_shadow_style,%91object Object%93″ header_3_text_shadow_horizontal_length_tablet=”0px” header_3_text_shadow_vertical_length=”header_3_text_shadow_style,%91object Object%93″ header_3_text_shadow_vertical_length_tablet=”0px” header_3_text_shadow_blur_strength=”header_3_text_shadow_style,%91object Object%93″ header_3_text_shadow_blur_strength_tablet=”1px” header_4_text_shadow_horizontal_length=”header_4_text_shadow_style,%91object Object%93″ header_4_text_shadow_horizontal_length_tablet=”0px” header_4_text_shadow_vertical_length=”header_4_text_shadow_style,%91object Object%93″ header_4_text_shadow_vertical_length_tablet=”0px” header_4_text_shadow_blur_strength=”header_4_text_shadow_style,%91object Object%93″ header_4_text_shadow_blur_strength_tablet=”1px” header_5_text_shadow_horizontal_length=”header_5_text_shadow_style,%91object Object%93″ header_5_text_shadow_horizontal_length_tablet=”0px” header_5_text_shadow_vertical_length=”header_5_text_shadow_style,%91object Object%93″ header_5_text_shadow_vertical_length_tablet=”0px” header_5_text_shadow_blur_strength=”header_5_text_shadow_style,%91object Object%93″ header_5_text_shadow_blur_strength_tablet=”1px” header_6_text_shadow_horizontal_length=”header_6_text_shadow_style,%91object Object%93″ header_6_text_shadow_horizontal_length_tablet=”0px” header_6_text_shadow_vertical_length=”header_6_text_shadow_style,%91object Object%93″ header_6_text_shadow_vertical_length_tablet=”0px” header_6_text_shadow_blur_strength=”header_6_text_shadow_style,%91object Object%93″ header_6_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″ z_index_tablet=”0″]
Summary of HEPOA Finances and Fiscal Policies
When Janet became VP of the BOD, she asked Jean if her role would include reviewing monthly bank statements and reconciliations and signing off on them. Jean explained to Janet that HEPOA does not need to do that because we are small, and she is a CPA. Janet suggested that we should have some minimal best-practice fiscal procedures, such as having someone approve invoice payments, and someone review monthly statements. The response from Jean was that this was considered insulting and aggressive and that Janet simply was too inexperienced to understand how things should work.
Jean explained to Janet that we are a 501c3, and operate under a 501c3 Trust Agreement and if we do anything not allowed by this agreement, we will be sanctioned by the IRS. She said we are limited to writing 3 checks per month from our operating expense account, which is a special kind of Money Market Account that is required by the 501c3 Trust. Janet asked to see some paperwork explaining this trust and Jean said it has been lost. But the bank has a record of the rules we must follow and they hold us strictly to these. Jean also explained that by law, our Reserve Funds must never earn interest and must be kept in a checking account.
(click here to listen to Jean’s explanation.)
Jean has explained to Janet repeatedly that our Money Market account only allows us to write 3 checks per month. She calls it a 501c3 Trust Account, and says that both the IRS and the bank are very strict about the number of checks allowed from this account per month. The 501c3 Trust Agreement only allows us to write 3 checks per month, and supposedly, this is very common. Jean explained that when more than 3 checks are required in any one month, she and Dean use their personal credit card and then store up their expenses and pay themselves back in some later month when HEPOA needed to write fewer than 3 checks. She also explains that in her job for a corporation she had to set up a third checking account in order to be able to write more than 3 checks per month, and this is a very common requirement.
(click here to listen to Jean’s explanation)
Later, Jean explained to Janet again why we cannot use a checking account for our operating expenses. Repeatedly, Janet has tried to ask why we cannot use a checking account for operating expenses or get a debit card so that people do not have to use personal credit cards and then be reimbursed may be many months later when 3 checks are not needed. Jean answers as if Janet has asked to use Road Fund money for expenses, or that she is suggesting that Jean goes with people who need to spend money or have them get a price and come back for a check. She is not answering what Janet has asked. The question is why can’t we use a checking account for our expenses.
(click here to listen to Jean’s explanation)
Although Jean insisted to Janet repeatedly that HEPOA is a 501c3, she filed tax returns for a non-profit corporation that is not tax-exempt (1120-H). This would indicate that either she knew we were not a 501c3 or she didn’t know what tax returns should be filed based on tax status.
Jean explained during a BOD meeting that she pays vendors who present invoices, not knowing what any agreement had been for the work. When presented with an invoice, she just pays it and Janice signs it, and neither of them have any information about what they are paying.
Although in 2020 the BOD became aware of the clause in the bylaws that they could not spend more than $1,000 without a member vote and had decided to create a proposed budget, Jean continued to caution Janet that it was too early to create a proposed budget and would not provide the information needed for doing so.
(click here–for proposed budget discussion and explanation of payment process)
We had an HOA lawyer review our situation and discovered that our votes had all been done incorrectly and none were valid. We must have a proposed budget that members vote on. And only our 1999 RC&R were legally valid. Any member could challenge the HEPOA for any reason and would win the case. They could ask for their dues back, sue the BOD for lack of due diligence, etc. The lawyer also confirmed that we are not a 501c3. The BOD agreed that we should explain to the members where we were and how we were going to move forward to solve this problem. Janet and Dean shared the Talking Points with the BOD, who were to share them with members. These explained how we would provide proposed budgets that must be approved by members, conduct a Reserve Study to determine what the maintenance needs are for the road, and create transparent fiscal procedures.
After this, Robert hired someone to seal the cracks without a bid, no contract, and no proposed budget. The vendor presented Jean with an invoice for $5,000 and she simply paid it, as is the custom. When BOD members tried to slow this down, Robert and Jean argued that this was how they were accustomed to operating. Duane had spoken with Robert repeatedly both before and after he brought this to a vote of the BOD, that we needed to complete the Reserve Study, and put road work into a proposed budget. After Robert moved forward with the work, Duane emailed the BOD to note that we had no bid, no price, no agreement about what would be done, and this now put us in a position to not be able to do a special assessment at a later date if needed.
Click here for Robert’s response.
In addition to questioning the fiscal procedures, Janet asked Jean if she could review the insurance policies shortly after becoming VP. Jean resisted allowing Janet to review the insurance policies, but after months of requesting to review them, she gave them to her. Janet asked why the liability insurance was for a for-profit company with 27 lots, with a headquarters at Shelia’s house. Jean assured Janet that was fine and did not need to be looked into. After a year, Janet contacted the insurance company and got the policy changed.
Janet discovered that although the Bylaws said we were to have Fidelity (i.e. Theft) insurance, we did not have it. Jean said we didn’t need it because she is a CPA. When asked to get a quote so that we could discuss whether to include Theft Insurance in the proposed budget, Jean reported to the BOD in Oct 2020 that it would cost $522 per year. Later, Janet called our West Jefferson agent, Allen Cockeran, and he said it would be about $100 a year or so if we have fiscal procedures that included all things on a best-practices check list. We only do one thing on the list (2 signatures), so he recommended not getting this kind of insurance until we put those practices in place because not doing so would raise the cost significantly. He also said there is no requirement or discount for the treasurer being a CPA.
(Jean’s explanation, click here.)
After the lawyer confirmed that we are not a 501c3, Jean told the BOD that the bank also had just discovered that we are not a 501c3 as they had previously thought, and we can now write more than 3 checks per month. No explanation has been given as to how this happened or if we still have the same accounts or if we got new accounts. All of our fiscal procedures that Jean has explained we must have were because of this 501c3 Trust Agreement that our accounts were a part of. This is where we now are.
[/et_pb_text][et_pb_text _builder_version=”4.11.3″ text_text_shadow_horizontal_length=”text_text_shadow_style,%91object Object%93″ text_text_shadow_horizontal_length_tablet=”0px” text_text_shadow_vertical_length=”text_text_shadow_style,%91object Object%93″ text_text_shadow_vertical_length_tablet=”0px” text_text_shadow_blur_strength=”text_text_shadow_style,%91object Object%93″ text_text_shadow_blur_strength_tablet=”1px” link_text_shadow_horizontal_length=”link_text_shadow_style,%91object Object%93″ link_text_shadow_horizontal_length_tablet=”0px” link_text_shadow_vertical_length=”link_text_shadow_style,%91object Object%93″ link_text_shadow_vertical_length_tablet=”0px” link_text_shadow_blur_strength=”link_text_shadow_style,%91object Object%93″ link_text_shadow_blur_strength_tablet=”1px” ul_text_shadow_horizontal_length=”ul_text_shadow_style,%91object Object%93″ ul_text_shadow_horizontal_length_tablet=”0px” ul_text_shadow_vertical_length=”ul_text_shadow_style,%91object Object%93″ ul_text_shadow_vertical_length_tablet=”0px” ul_text_shadow_blur_strength=”ul_text_shadow_style,%91object Object%93″ ul_text_shadow_blur_strength_tablet=”1px” ol_text_shadow_horizontal_length=”ol_text_shadow_style,%91object Object%93″ ol_text_shadow_horizontal_length_tablet=”0px” ol_text_shadow_vertical_length=”ol_text_shadow_style,%91object Object%93″ ol_text_shadow_vertical_length_tablet=”0px” ol_text_shadow_blur_strength=”ol_text_shadow_style,%91object Object%93″ ol_text_shadow_blur_strength_tablet=”1px” quote_text_shadow_horizontal_length=”quote_text_shadow_style,%91object Object%93″ quote_text_shadow_horizontal_length_tablet=”0px” quote_text_shadow_vertical_length=”quote_text_shadow_style,%91object Object%93″ quote_text_shadow_vertical_length_tablet=”0px” quote_text_shadow_blur_strength=”quote_text_shadow_style,%91object Object%93″ quote_text_shadow_blur_strength_tablet=”1px” header_text_shadow_horizontal_length=”header_text_shadow_style,%91object Object%93″ header_text_shadow_horizontal_length_tablet=”0px” header_text_shadow_vertical_length=”header_text_shadow_style,%91object Object%93″ header_text_shadow_vertical_length_tablet=”0px” header_text_shadow_blur_strength=”header_text_shadow_style,%91object Object%93″ header_text_shadow_blur_strength_tablet=”1px” header_2_text_shadow_horizontal_length=”header_2_text_shadow_style,%91object Object%93″ header_2_text_shadow_horizontal_length_tablet=”0px” header_2_text_shadow_vertical_length=”header_2_text_shadow_style,%91object Object%93″ header_2_text_shadow_vertical_length_tablet=”0px” header_2_text_shadow_blur_strength=”header_2_text_shadow_style,%91object Object%93″ header_2_text_shadow_blur_strength_tablet=”1px” header_3_text_shadow_horizontal_length=”header_3_text_shadow_style,%91object Object%93″ header_3_text_shadow_horizontal_length_tablet=”0px” header_3_text_shadow_vertical_length=”header_3_text_shadow_style,%91object Object%93″ header_3_text_shadow_vertical_length_tablet=”0px” header_3_text_shadow_blur_strength=”header_3_text_shadow_style,%91object Object%93″ header_3_text_shadow_blur_strength_tablet=”1px” header_4_text_shadow_horizontal_length=”header_4_text_shadow_style,%91object Object%93″ header_4_text_shadow_horizontal_length_tablet=”0px” header_4_text_shadow_vertical_length=”header_4_text_shadow_style,%91object Object%93″ header_4_text_shadow_vertical_length_tablet=”0px” header_4_text_shadow_blur_strength=”header_4_text_shadow_style,%91object Object%93″ header_4_text_shadow_blur_strength_tablet=”1px” header_5_text_shadow_horizontal_length=”header_5_text_shadow_style,%91object Object%93″ header_5_text_shadow_horizontal_length_tablet=”0px” header_5_text_shadow_vertical_length=”header_5_text_shadow_style,%91object Object%93″ header_5_text_shadow_vertical_length_tablet=”0px” header_5_text_shadow_blur_strength=”header_5_text_shadow_style,%91object Object%93″ header_5_text_shadow_blur_strength_tablet=”1px” header_6_text_shadow_horizontal_length=”header_6_text_shadow_style,%91object Object%93″ header_6_text_shadow_horizontal_length_tablet=”0px” header_6_text_shadow_vertical_length=”header_6_text_shadow_style,%91object Object%93″ header_6_text_shadow_vertical_length_tablet=”0px” header_6_text_shadow_blur_strength=”header_6_text_shadow_style,%91object Object%93″ header_6_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″ z_index_tablet=”0″]
Historical Record of Explanations Regarding Finances
[/et_pb_text][et_pb_text _builder_version=”4.11.3″ text_text_shadow_horizontal_length=”text_text_shadow_style,%91object Object%93″ text_text_shadow_horizontal_length_tablet=”0px” text_text_shadow_vertical_length=”text_text_shadow_style,%91object Object%93″ text_text_shadow_vertical_length_tablet=”0px” text_text_shadow_blur_strength=”text_text_shadow_style,%91object Object%93″ text_text_shadow_blur_strength_tablet=”1px” link_text_shadow_horizontal_length=”link_text_shadow_style,%91object Object%93″ link_text_shadow_horizontal_length_tablet=”0px” link_text_shadow_vertical_length=”link_text_shadow_style,%91object Object%93″ link_text_shadow_vertical_length_tablet=”0px” link_text_shadow_blur_strength=”link_text_shadow_style,%91object Object%93″ link_text_shadow_blur_strength_tablet=”1px” ul_text_shadow_horizontal_length=”ul_text_shadow_style,%91object Object%93″ ul_text_shadow_horizontal_length_tablet=”0px” ul_text_shadow_vertical_length=”ul_text_shadow_style,%91object Object%93″ ul_text_shadow_vertical_length_tablet=”0px” ul_text_shadow_blur_strength=”ul_text_shadow_style,%91object Object%93″ ul_text_shadow_blur_strength_tablet=”1px” ol_text_shadow_horizontal_length=”ol_text_shadow_style,%91object Object%93″ ol_text_shadow_horizontal_length_tablet=”0px” ol_text_shadow_vertical_length=”ol_text_shadow_style,%91object Object%93″ ol_text_shadow_vertical_length_tablet=”0px” ol_text_shadow_blur_strength=”ol_text_shadow_style,%91object Object%93″ ol_text_shadow_blur_strength_tablet=”1px” quote_text_shadow_horizontal_length=”quote_text_shadow_style,%91object Object%93″ quote_text_shadow_horizontal_length_tablet=”0px” quote_text_shadow_vertical_length=”quote_text_shadow_style,%91object Object%93″ quote_text_shadow_vertical_length_tablet=”0px” quote_text_shadow_blur_strength=”quote_text_shadow_style,%91object Object%93″ quote_text_shadow_blur_strength_tablet=”1px” header_text_shadow_horizontal_length=”header_text_shadow_style,%91object Object%93″ header_text_shadow_horizontal_length_tablet=”0px” header_text_shadow_vertical_length=”header_text_shadow_style,%91object Object%93″ header_text_shadow_vertical_length_tablet=”0px” header_text_shadow_blur_strength=”header_text_shadow_style,%91object Object%93″ header_text_shadow_blur_strength_tablet=”1px” header_2_text_shadow_horizontal_length=”header_2_text_shadow_style,%91object Object%93″ header_2_text_shadow_horizontal_length_tablet=”0px” header_2_text_shadow_vertical_length=”header_2_text_shadow_style,%91object Object%93″ header_2_text_shadow_vertical_length_tablet=”0px” header_2_text_shadow_blur_strength=”header_2_text_shadow_style,%91object Object%93″ header_2_text_shadow_blur_strength_tablet=”1px” header_3_text_shadow_horizontal_length=”header_3_text_shadow_style,%91object Object%93″ header_3_text_shadow_horizontal_length_tablet=”0px” header_3_text_shadow_vertical_length=”header_3_text_shadow_style,%91object Object%93″ header_3_text_shadow_vertical_length_tablet=”0px” header_3_text_shadow_blur_strength=”header_3_text_shadow_style,%91object Object%93″ header_3_text_shadow_blur_strength_tablet=”1px” header_4_text_shadow_horizontal_length=”header_4_text_shadow_style,%91object Object%93″ header_4_text_shadow_horizontal_length_tablet=”0px” header_4_text_shadow_vertical_length=”header_4_text_shadow_style,%91object Object%93″ header_4_text_shadow_vertical_length_tablet=”0px” header_4_text_shadow_blur_strength=”header_4_text_shadow_style,%91object Object%93″ header_4_text_shadow_blur_strength_tablet=”1px” header_5_text_shadow_horizontal_length=”header_5_text_shadow_style,%91object Object%93″ header_5_text_shadow_horizontal_length_tablet=”0px” header_5_text_shadow_vertical_length=”header_5_text_shadow_style,%91object Object%93″ header_5_text_shadow_vertical_length_tablet=”0px” header_5_text_shadow_blur_strength=”header_5_text_shadow_style,%91object Object%93″ header_5_text_shadow_blur_strength_tablet=”1px” header_6_text_shadow_horizontal_length=”header_6_text_shadow_style,%91object Object%93″ header_6_text_shadow_horizontal_length_tablet=”0px” header_6_text_shadow_vertical_length=”header_6_text_shadow_style,%91object Object%93″ header_6_text_shadow_vertical_length_tablet=”0px” header_6_text_shadow_blur_strength=”header_6_text_shadow_style,%91object Object%93″ header_6_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” z_index_tablet=”500″ border_radii=”on|7px|7px|7px|7px” border_width_all=”3px” border_color_all=”#537772″ vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″]
| When | What | Description | Text |
|---|---|---|---|
| Nov 6, 2021 | Annual Meeting | Jean gave the Treasurer’s Report | Although Jean has explained repeatedly in the past that no one can see or know anything about our finances until the BOD has voted to accept the report, she did not present the 2020 Treasurer’s Report that she had presented to the BOD on Aug 5. Instead, she presented the Jan 2021 to June 2021 Report. She did not distribute copies, however, she gave Gay a copy for the records. Jean explained how this would not be on the web because you cannot put partial year reports on the web. (In the past, she provided only partial year reports for the web.) She explained the assessment amount as being a mix of 2020 and 2021 dues, depending on when they were received. She explained that she cannot hold any checks to deposit in January so that our accounting shows current year receipts because it is illegal to hold checks for more than 4 days without depositing them. She said the bank is very strict about this. Coincidently, the bank had previously told her that because our accounts are tied to a 501c3 Trust that we had only 4 days to deposit a check after receiving it or we would lose our tax-exempt status. No explanation was ever given for how the bank determined we are not a 501c3, and how they are now holding us to a different set of strict standards than those they have required of us in the past. |
| Nov 4, 2021 | BOD meeting | Jean attended the meeting at Gay’s house, even though she had resigned. Shelia explained that she changed her mind, because we need her. Jean’s resignation set two events that would trigger her resignation taking effect – finding someone to take the job, and doing the November mailing. Until those are taken care of, she is staying. When Shelia said she is staying Jean only said “we’ll see.” Jean provided a description of her credentials and talked about budgets she had managed in large corporations. Robert joined in to confirm that these were multi-million dollar budgets that Jean is used to managing. Shelia pointed out directly to Janet that Jean’s job is especially hard to do while being harassed. Gay recommended that Jean write a job description for the treasurer to assist in the transition. | When discussing how to pay the church for meeting space, Gay asked if we could get a debit card. Jean responded that it is illegal to do so, then modified that to explain that it may be legal but you don’t want to do it because debit cards make you very vulnerable to fraud. |
| Oct 23, 2021 | Email from Jean, resigning from the BOD. | Duane asked Jean in email if she could provide him with the IRS tax status letter, the Dec 2020 Bank Statements for both accounts, and the 2020 tax return so that he would have some backup to go with the Treasurer’s Report that would be presented to the members. When Jean presented the Treasurer’s report to the BOD in Aug, Gay pointed out that we couldn’t verify anything about it because there was no backup. So, the BOD had simply accepted that she presented it, not that we knew anything about the validity of it. Priscilla (CPA) had told Janet to get a copy of the IRS letter, which would tell us our tax status. Our big questions include what our tax status is and whether we file the correct returns. | In response to Duane’s request, Dean brought over Page 1 of 4 for the MM account, and the one-page statement for the checking account. On both statements, the “Parent Account” number was redacted. She provided the IRS letter, which confirmed that we are not a 501c3. The tax return was an 1120-H form, which is the correct form for a non-profit corporation, not for a 501c3. Jean must have known we were not a 501c3 all along if she had that letter and filed the 1120-H. She emailed the BOD in response to Duane’s request: On Sat, Oct 23, 2021 at 2:58 PM Dear Board Members, Since I am not willing to see any one member of this Board ( or any two members) telling others who are serving on the Board what to do, I am resigning as Duane suggested in his earlier e-mail. I will stay only until you can find someone else to do this since we are near year-end and notices for dues must go out for next year at the end of November. I will work with whomever takes over as Treasurer to see that they have an understanding of what must be done. I have enjoyed working with most of you on the Board over the years and will miss being involved, but I am quite “burned out”. Yours truly, Jean Moore Treasurer |
| Oct 11, 2021 | Email from Jean explaining that we are not a 501c3 | Gloria Moore Mon, Oct 11, 9:23 AM Janet, We are not a 501c(3) or 501c(4). I thought that I made that clear at the last Board Meeting after my lengthy conversation with the bank representative. This is why I could never find any documentation. We are a very simple Small Homeowners Association which is one reason we have to be careful about charging extra fees that must be declared as income. IRS regulations, not State, make that determination. Jean |
|
| Sept 30, 2021 | Jean’s answer to questions about mowing costs and estimates for Fidelity Bonding Insurance | I asked Jean about the cost of mowing being so variable, and how she recorded waiving Chris’s fees. It seems she counts them as income but does not count the expense, from what Gay and I could see. I also asked her about her report to the Board during the Oct 2020 meeting (recorded via Zoom: Click here) “One more question: You said last year that you got a quote for $522 for Fidelity Bonding insurance. Was that from the company that we buy our D&O insurance from? You said we would get a $30 discount if we purchased 3 years in a row, but this price is only good if the Treasurer is a CPA. Did he give you a price for 3 years if the Treasurer is not a CPA? You may not want to keep the job 3 years from now.” I asked this because I spoke with our agent, Allen Cockerhan, and he said it would cost as low as $100 per year if we had everything on a checklist in our fiscal procedures, and that they have no requirements or discounts for being a CPA. It is also not required if the treasurer is not a CPA. | deanjean@skybest.com Sep 30, 2021, 2:40 PM to me, Gay Janet and Gay, We are using the same mower that we used last. year. Last year he started late (because we had a difficult even finding someone) so we had fewer bills for the year at $160 per trip. That price went up to $215 per mowing & clipping trip this year but is still $135 less that our original company and he includes clipping in his base cost. Their charge for that was an additional $100 each month. He may go up a little next year to cover increased fuel costs, but I still don’t think he will be as much as the original group and he does a decent job. Our cost for this 2021 year is probably going to be between $2800 to $3000. He missed one mowing early in the year in April because of rain. I really doubt that we can beat him. There are very few choices. I do not pay Chris anything directly unless it would be for ice melt. He does not pay a membership fee and we do not pay him. This was his verbal agreement with the developer before the Association was formed. We confirmed that with the developer. I was not involved in the arrangement and I have stayed out of it. The truth is that it will cost he Association a lot more money if we have to pay every time for outside scrapers to come here and they will not likely be available as soon as the snow stops. People in the back and upper parts of the neighborhood would be stuck at home until they got here. The insurance quote that I got was from our local agent. He said the insurers would likely require the policy when I step away, if we can get them to write it. He felt that we would be required an annual audit when that happens unless we can find another CPA who will do it.. We can always try another agent, but they will working with the same insurers. The fact is, our capital may never reach the $100,000 ceiling because we have to use some of it as we go. Yours, Jean |
| Aug 5, 2021 | Board meeting reflection on roads | Duane and Jimmy reviewed the roads, noted alligator cracks and linear cracks. They planned to pursue a review study and make a recommendation from the information. Robert asked to join the road committee. After being told by Duane that we needed expert advice and a proposed budget presented to members, to do road repairs Robert brought “crack filling” for a vote to the Board. Janet protested that we would need to put this in a proposed budget. The Board voted and recommended that the Road Committee agree on how to proceed. As reflected in the minutes, Robert said the estimate was approximately $3,000 for the work, which is significantly higher than the last time this was done. Duane told Robert to wait until we had a budget, a bid, a contract but he went forward with the work anyway. The previous contract from the same vendor was for about $1700, and said the next time would be likely to cost half this due to less prep work needed. We have no procedure for approving payments. The vendor had no contract, no written bid. The cost was $5,000 as compared with the $900 that his first bid suggested, or the $3,000 that Robert quoted the Board. | Robert’s Explanation of Crack Sealing |
| Aug 5, 2021 | Board meeting. Janet notes | After the lawyer confirmed that we are not a 501c3, Jean reported to the Board that she had originally believed our account was a 501c3 Trust Account because when she and Janice Landen first went into the bank together to deposit member checks, the banker told her they were just under the wire because the checks had to be deposited within 4 days and they barely made it. This led her to conclude that the account must be a 501c3 Trust Account because that is how those accounts work. She had just had a long conversation with the banker recently, and discovered that our account that we are using now is not a 501c3 Trust Account, and we can now write more than 3 checks per month. (It was not clear whether this is a new account opened because we have discovered that we are not a 501c3, or if the account had always allowed more than 3 checks or what. I listened to every word and could not tell. Previously, when I asked Jean to explain the Trust Account, and whether there was a beneficiary to the Trust, and what it meant, she said that because the bank had changed hands repeatedly, they had lost the paperwork so we don’t know.) | |
| July 2021 | Note: we need to check our other insurances. | I followed through with the insurance agent to modify our liability insurance and rewrite it for a non-profit corporation HOA. Jean had told me it was fine the way it was, written for a for-profit corporation with 27 lots. I suggested we needed to check our bank account and our B&O insurance, and the Board was not interested in doing so. These have not been checked as of Nov 2021. | Jean Explaining Why We Don’t Have All Facts of Our Trust Agreement in Oct 2020 Meeting (Jean has explained to me repeatedly that the Trust Agreement dictates most if not all of our financial procedures, and the bank and the IRS hold us to them, even though we don’t have any copies of anything. I’ve asked for copies and this is why I can’t see anything that explains it.) |
| Jul 25, 2021 | My email to the Board in response to Dean’s email about our to do list, after meeting with the lawyer, and Jean’s response | at 6:33 PM, Janet Johnson Our to-do list is actually much longer than this list. It is more important now than ever that we act according to a fiduciary standard. The fact that we are not a 501c3 means we need to check several very important things. Our Liability Insurance was written for a for-profit corporation with 27 lots. It turns out that when Stewarts took out a promissory note to buy the development from Ms. Gesling 2004 there were 27 unsold lots. They were required to set up a Trust account, with the Grantor being Heritage Estates, Inc (their for-profit corporation), Juanita Gesling was the Beneficiary, and Jimmy Reeves of Vannoy and Reeves law firm was the Trustee. Stewarts took out a Commercial General Liability insurance policy for the 27 lots. Our Commercial General Liability policy exactly reflects what the Stewarts needed for their corporation. It is most likely the case that our then treasurer left all the information the same and just changed the owner of the Commerical General Liability policy to HEPOA, and changed the office address to her house. The mailing address was changed over the years but none of this other information was ever changed. Jean has described our operating account as a 501c3Trust account. I think we need to verify that this account is not the Trust that was set up by Stewarts that has Gesling as the beneficiary. We need to compare the Tax ID on the account to the Tax ID of HEPOA. The early Board minutes report having Sherry and Janice able to sign on the HEPOA account and says that they will begin to apply for a Tax ID. You cannot open a bank account until you have a Tax ID but the minutes refer to the bank account. We need to review our accounts and make sure we own them. The lawyer said it is very unlikely that we are tax-exempt. Someone would have had to file an application with the IRS, and it would probably not be granted. There are only two ways for non-profits to be tax-exempt and we don’t fit either way. We need to review the Officers and Board insurance and make sure it was not purchased as a 501c3. A lot of people confuse “non-profit” with 501c3 and they are not the same thing. I think looking into these issues should be pretty high on our list. Janet | Gloria Moore Janet, The commercial liability policy has nothing to do with the Stewarts. I know that this was purchased by the first BOD. I don’t know where the 27 comes from. I have a call in to the provider and will try to find out. The Association policy covers common property, not lots of individuals. These are owners responsibility. Sent from my iPad |
| July 16, 2021 | Jean’s response to my request for financial information that I can use to start creating a proposed budget. | Although the BOD agreed in the Oct 2020 meeting that our governing documents required us to get member approval for any spending over $1000, and that we needed to create a Proposed Budget for the members to vote on, Jean put off all requests for information for creating the budget. Of note here is that she explains our Liability Insurance as covering only someone getting hurt due to poor maintenance, not simply getting hurt on common property. She explains here that both of our accounts are part of a 501c3 Trust. This is in response to a long series of emails from me trying to get information about our budgets and finances so I could begin drafting a proposed budget. The last in a long series to which her email here is responding included: On Thu, April 22, 2021 3:50 pm, Janet Johnson wrote: > Thanks, Jean. I don’t think it is too early to see what we need to know to be able to create a proposed budget. No one but you understands what we have spent in the past. Until recently, we had all the partial year reports on the web and you couldn’t tell anything. Looking at the full year reports, many things were hard to understand. I create proposed budgets all the time as part of my work. An understanding of the background information is needed to do it correctly. The information that goes to the members about our budgets has been very difficult to understand. As long as we didn’t need to understand it, that was fine. > But if we create a proposed budget, and the members vote on it, we need to have information presented in ways that can be understood. I know at least some of the members think things through and try to understand. | deanjean@skybest.com Jul 16, 2021, 1:32 PM to me Janet, I have not released the 2020 Financial report because it has not been approved by the Board. Dean has been waiting to hear back from the attorney about more serious issues. I will be happy to sit with you and go over details of expenses for the past 2 or 3 years if this would help.. We really do not have much in routine costs. We have the electricity and Mowing, as well as the Insurance. Our cost on the D&O policy will go up slightly this year. The Liability usually is about $300.00. This is a standard Liability policy and is intended only to cover the Association if someone should get hurt because of poor maintenance of the Gazebo or entry way. We cannot get property coverage because we don’t have anything except the Gazebo (uninsurable because it is in the 500 yr. flood plain) and our mailboxes (these would be depreciated based on age and replacement cost does not justify coverage). I have double checked on this several times and have been told that we would not get any carrier to write additional coverage beyond what we have. We have had a lot of additional expenses for preparation and mailing of documents relating to changes we are having to make. Our bank accounts are both part of a 501(c)3 Trust. This includes the checking (disbursement) account as well as the Capital Preservation (not savings) account. Once we have resolved our other legal issues, we can go through all of this. As it is, we are on hold. Jean |
| July 8, 2021 | Jean’s Response to my questions about fees and insurance | Janet Johnson to Jean, Troy, Robert, Adele, Gay, roxie2u@AOL.com, Jimmy Hi Jean, Some members have asked me questions that arose when they were reviewing the changes in the governing documents, and I cannot answer them. One asked what the web maintenance money was for. I don’t know what it was for. What did the invoices say? (A member pointed out that it is against state statute for a Board member to be paid for services.) One member asked me if we have liability insurance and if so, is it sufficient. I had to tell them we have it, but I don’t understand the policy. Can you explain what our insurance covers, what the deductible is, and what it covers? Looking at the policy, it looks to me like it is for a for-profit corporation, with the office at 167 Timbersong and is based on having 27 members. It looks like we have $10,000 coverage for medical expenses per person, and $2,000,000 coverage on advertising and products. This doesn’t seem right, but I must not know how to read this. The fact that Sheila’s house is listed as the office in the insured buildings makes me think this policy may not have been reviewed in a while. I still don’t understand that Trust Account, and why we use a savings account for the operating budget. Is this a Trust Account with a Trustee and a Beneficiary? If so, who is the trustee and who is the beneficiary? The 2008 minutes say that the Money Market account was to be transferred from the Stewarts (who most likely would have had a Trust with a Trustee and Beneficiary because of the structure of the development and holdings) to Sherrie and Janice. Everything I read says we should be operating out of a checking account and should be investing our reserve fund. I need to understand why we have our money structured this way. (The Board is legally responsible to make sure we are doing things correctly–even when we are small.) Can you at least send me something to read to help me understand why our finances are set up this way? State statute says we must provide a proposed budget to the members before a meeting in which members will vote to ratify the budget. First, the Board has to approve the proposed budget. The most recent Financial statement we have is 2019. We will need some information to create a proposed budget. Have you collected any dues since we learned that the dues were raised in a way that is not valid? That would have been since early May. This current BOD may be vulnerable if you have. We will need to let the lawyer know if you have. These would have been back dues. Janet | deanjean@skybest.com Thu, Jul 8, 10:38 AM to me Janet, All insurance policies are in the name of HEPOA at 302 River Sound and have been since the year when that was changed. I got your e-mail, but I really don’t have to deal with this right now. I had guests through the 4th and have grandchildren coming today for the week-end. I will get back to you next week, but have been told that we need to do nothing until we hear back from the attorney on other, more serious questions. Doing budget work right now is probably permature. Jean |
| May 24, 2021 | Shelia’s response to my questions for the lawyer | Dean asked if any of the Board members had questions we should ask the lawyer. I sent questions to the Board about how to deal with our situation and work out of it. | Shelia Helms to me, deanjean, amwillard, gaycass, jimmyandjacki, toolanden, gjmdex4, butlertarheel Janet since you have so much time to spend on the computer, can you get the names of all the board members, all the home owners/members who have lived here and attended the meetings. Check all the votes while you’re at it. You should read all the minutes from the HOA from the beginning. Be sure to verify and get on your computer to make sure everything was done to your standards. I’m really sorry that our small peaceful area is not up to your big city standards. Most of us have left busy city life to get away from having to be worried about this attitude of “WHAT COULD HAPPEN” You get online and give ideas on how to start problems. If you don’t stop, there’s not going to be a BOD. |
| Oct 2020 | HEPOA Board Meeting Jean Explains Our Accounts | Janet had asked why we can’t use a checking account for operating expenses so that members don’t have to use their own credit cards and then sometimes wait months to be reimbursed because they must wait for a month when 3 checks are not needed. Jean had explained earlier to Janet that they have to use their credit cards all the time and wait months to get reimbursed for many expenses all at once. Jean had also explained earlier to Janet that the IRS does not allow us to make any interest on the Road Fund, so it must be kept in a non-interest bearing checking account. Janet has asked repeatedly to have this explained because of researching and finding no such laws or requirements, and also not believing that HEPOA is a 501c3. Jean explains: (see recording clip): We are governed by how the Trust is structured. We have a 501c3 Trust Account that requires all fees be deposited directly into this account. Rather than answer why we must do this, she instead answers as if the question is about paying operating expenses from the Road Fund Account. When asked why we cannot use a checking account for operating expenses, she explains the IRS does not allow this. They have very tightly controlled regulations. She explains to Janet again about how you can set up a third account, but this time adds that this opens you to fraud. Being able to write more than 3 checks per months makes you very open to fraud, she says. She explains that these trusts are very complicated, and the IRS protects them. You do not want to break your trust. In response to Janet’s concern that saving up expenses and being paid months later for many expenses at once, when there is month without 3 checks seems like not a good fiscal policy, Jean answers as if the recommendation is to give go with the member and write checks at the time when they purchase materials. Dean then agrees this would be cumbersome and no one would do it. Jean suggests this is just very complicated and legalistic. Shelia adds that we will lose our friendly personality if we keep worrying about things like this and “getting all rule oriented.” | BOD Meeting Explanation Jean was responding to Janet’s comments on the documents shared with the BOD for discussion. Recent Issues (See Financial Matters) Survey Issues Bylaws (See comments on #4) |
| Sept 6, 2020 | Jean’s response to my repeated request to develop a fiscal process where someone reviews bank reconciliations | After she repeatedly explained to me that I had no expertise compared with her for understanding law or finances, I emailed her telling her I had someone with expertise explain typical fiscal processes for non-profits and I cited the law: ARTICLE XII: RECORDS AND BOOKS: The records, books, and papers of the ASSOCIATION shall at all times, during reasonable business hours, be subject to inspection by any Member. Although she says here that she would bring the bank statements to the next Board meeting, she did not do so. | Sun, Sep 6, 2020 at 4:26 PM Janet, First of all, you should not be sharing any information regarding our HEPOA with anyone outside the Heritage Estates Board of Directors. If you should share something that resulted in a problem for the Board or the Organization, you could certainly incur a liability. Again I remind you that a Home Owners Assoc. may be a NON-Profit orgaization, but they have unique rules. Standard Not-for-Profit guidelines may or may not apply. We operate no underlying funds for our Assoc. We are not even close to the same as an Assoc. for a large neighborhood that maintains common facilities for members use such as pools, clubhouses, etc. We have all the liability coverage that was required for us. Our HEPOA does not own any property nor can we construct any or buy any because of the restrictions on our use of collected funds. We have been designated to oversee the neighboorhood’s common properties and streets so that they stay in proper condition for all to use. We don’t actually own theses. As far as bank accounts go, both of our accounts allow checkwriting. These are under a 501c3 Trust Agreement and disbursement allowances are very restricted on these. Only 3 checks per month can be written from the MM Account.(This is why most organizations require a third standard checking account.) As a CPA, I have always set up a third account and kept it funded with a monthly check or transfer from the MM Account when putting these trusts in place. However, it could be an issue to make this change at this late date and we would incur additional expenses. Since our activity is low enough that we can manage with things as they are, I could not recommend changing this because of legal implications and added expense. We rarely have more than 1 or 2 checks per month and will have none in many of the winter months. Our electric bill is drafted, so no checks are written for Blue Ridge. All funds disbursed from the Capital Preservation Account must be used for road maintenance or improvements. We are required to fund this account annually with 40% of homeowners annual dues as per our guidelines. This is based upon billings, not on collections. None of the funds can be used for any type of property purchases or construction. If you wish to see the actual bank statements, I will have these (as well as our Jan. to June 2020 Balance Sheet) at our Board Meeting. I hope this answers some of your questions. Jean |
| August 1, 2020 | Notes from a Phone call with Jean for Jean to our financial operating procedures | She explained that because our accounts are set up for a 501c3 Trust, we can only write 3 checks per month from our operating expenses. She said this is like what she had to do for her job as risk manager for the employee self-insured account where she worked. She set up a third account and moved money out of it monthly so she could pay expenses. This is very common. She said that she and Dean charge expenses for HEPOA all the time, and then pay themselves back in a month where three checks are not needed. She explained that they used their credit cards when Jimmy was president because Jimmy and Jackie do not have any credit cards. When I asked about whether the Trust has a Beneficiary, or what kind of Trust it is, she said the bank has lost all of the paperwork because they have changed hands 3 times and Sherry was very bad at record keeping. | Phone conversation |
| Jan – Sept | I asked for copies of the insurance policies to review, and of the bank statements. | I was told that the Board does not review these because we are small. And, no one but me has ever asked for these. And that asking for them was considered harrassment. | |
| Jan 2020 | Notes from talking to Jean | When I became VP, I researched the role of a VP for HOAs, and learned it usually includes reviewing reconciliation statements and signing off, monthly as part of a basic fiscal process. I asked Jean if I was to do this. | Jean explained to me (both in email and on the phone) that because we are small, there is no requirement for having any fiscal oversight. When I suggested that we probably should, she protested that small HOAs never have any fiscal oversight, and started telling me about her credentials that further support having no oversight. And, that everything is so complicated that no one without her credentials could understand any of our finances, but we are fine because we are small and because she is a CPA. |
[/et_pb_text][et_pb_text _builder_version=”4.11.3″ text_text_shadow_horizontal_length=”text_text_shadow_style,%91object Object%93″ text_text_shadow_horizontal_length_tablet=”0px” text_text_shadow_vertical_length=”text_text_shadow_style,%91object Object%93″ text_text_shadow_vertical_length_tablet=”0px” text_text_shadow_blur_strength=”text_text_shadow_style,%91object Object%93″ text_text_shadow_blur_strength_tablet=”1px” link_text_shadow_horizontal_length=”link_text_shadow_style,%91object Object%93″ link_text_shadow_horizontal_length_tablet=”0px” link_text_shadow_vertical_length=”link_text_shadow_style,%91object Object%93″ link_text_shadow_vertical_length_tablet=”0px” link_text_shadow_blur_strength=”link_text_shadow_style,%91object Object%93″ link_text_shadow_blur_strength_tablet=”1px” ul_text_shadow_horizontal_length=”ul_text_shadow_style,%91object Object%93″ ul_text_shadow_horizontal_length_tablet=”0px” ul_text_shadow_vertical_length=”ul_text_shadow_style,%91object Object%93″ ul_text_shadow_vertical_length_tablet=”0px” ul_text_shadow_blur_strength=”ul_text_shadow_style,%91object Object%93″ ul_text_shadow_blur_strength_tablet=”1px” ol_text_shadow_horizontal_length=”ol_text_shadow_style,%91object Object%93″ ol_text_shadow_horizontal_length_tablet=”0px” ol_text_shadow_vertical_length=”ol_text_shadow_style,%91object Object%93″ ol_text_shadow_vertical_length_tablet=”0px” ol_text_shadow_blur_strength=”ol_text_shadow_style,%91object Object%93″ ol_text_shadow_blur_strength_tablet=”1px” quote_text_shadow_horizontal_length=”quote_text_shadow_style,%91object Object%93″ quote_text_shadow_horizontal_length_tablet=”0px” quote_text_shadow_vertical_length=”quote_text_shadow_style,%91object Object%93″ quote_text_shadow_vertical_length_tablet=”0px” quote_text_shadow_blur_strength=”quote_text_shadow_style,%91object Object%93″ quote_text_shadow_blur_strength_tablet=”1px” header_text_shadow_horizontal_length=”header_text_shadow_style,%91object Object%93″ header_text_shadow_horizontal_length_tablet=”0px” header_text_shadow_vertical_length=”header_text_shadow_style,%91object Object%93″ header_text_shadow_vertical_length_tablet=”0px” header_text_shadow_blur_strength=”header_text_shadow_style,%91object Object%93″ header_text_shadow_blur_strength_tablet=”1px” header_2_text_shadow_horizontal_length=”header_2_text_shadow_style,%91object Object%93″ header_2_text_shadow_horizontal_length_tablet=”0px” header_2_text_shadow_vertical_length=”header_2_text_shadow_style,%91object Object%93″ header_2_text_shadow_vertical_length_tablet=”0px” header_2_text_shadow_blur_strength=”header_2_text_shadow_style,%91object Object%93″ header_2_text_shadow_blur_strength_tablet=”1px” header_3_text_shadow_horizontal_length=”header_3_text_shadow_style,%91object Object%93″ header_3_text_shadow_horizontal_length_tablet=”0px” header_3_text_shadow_vertical_length=”header_3_text_shadow_style,%91object Object%93″ header_3_text_shadow_vertical_length_tablet=”0px” header_3_text_shadow_blur_strength=”header_3_text_shadow_style,%91object Object%93″ header_3_text_shadow_blur_strength_tablet=”1px” header_4_text_shadow_horizontal_length=”header_4_text_shadow_style,%91object Object%93″ header_4_text_shadow_horizontal_length_tablet=”0px” header_4_text_shadow_vertical_length=”header_4_text_shadow_style,%91object Object%93″ header_4_text_shadow_vertical_length_tablet=”0px” header_4_text_shadow_blur_strength=”header_4_text_shadow_style,%91object Object%93″ header_4_text_shadow_blur_strength_tablet=”1px” header_5_text_shadow_horizontal_length=”header_5_text_shadow_style,%91object Object%93″ header_5_text_shadow_horizontal_length_tablet=”0px” header_5_text_shadow_vertical_length=”header_5_text_shadow_style,%91object Object%93″ header_5_text_shadow_vertical_length_tablet=”0px” header_5_text_shadow_blur_strength=”header_5_text_shadow_style,%91object Object%93″ header_5_text_shadow_blur_strength_tablet=”1px” header_6_text_shadow_horizontal_length=”header_6_text_shadow_style,%91object Object%93″ header_6_text_shadow_horizontal_length_tablet=”0px” header_6_text_shadow_vertical_length=”header_6_text_shadow_style,%91object Object%93″ header_6_text_shadow_vertical_length_tablet=”0px” header_6_text_shadow_blur_strength=”header_6_text_shadow_style,%91object Object%93″ header_6_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″ z_index_tablet=”0″]
Other Relevant Fiscal Information
[/et_pb_text][et_pb_text _builder_version=”4.11.3″ text_text_shadow_horizontal_length=”text_text_shadow_style,%91object Object%93″ text_text_shadow_horizontal_length_tablet=”0px” text_text_shadow_vertical_length=”text_text_shadow_style,%91object Object%93″ text_text_shadow_vertical_length_tablet=”0px” text_text_shadow_blur_strength=”text_text_shadow_style,%91object Object%93″ text_text_shadow_blur_strength_tablet=”1px” link_text_shadow_horizontal_length=”link_text_shadow_style,%91object Object%93″ link_text_shadow_horizontal_length_tablet=”0px” link_text_shadow_vertical_length=”link_text_shadow_style,%91object Object%93″ link_text_shadow_vertical_length_tablet=”0px” link_text_shadow_blur_strength=”link_text_shadow_style,%91object Object%93″ link_text_shadow_blur_strength_tablet=”1px” ul_text_shadow_horizontal_length=”ul_text_shadow_style,%91object Object%93″ ul_text_shadow_horizontal_length_tablet=”0px” ul_text_shadow_vertical_length=”ul_text_shadow_style,%91object Object%93″ ul_text_shadow_vertical_length_tablet=”0px” ul_text_shadow_blur_strength=”ul_text_shadow_style,%91object Object%93″ ul_text_shadow_blur_strength_tablet=”1px” ol_text_shadow_horizontal_length=”ol_text_shadow_style,%91object Object%93″ ol_text_shadow_horizontal_length_tablet=”0px” ol_text_shadow_vertical_length=”ol_text_shadow_style,%91object Object%93″ ol_text_shadow_vertical_length_tablet=”0px” ol_text_shadow_blur_strength=”ol_text_shadow_style,%91object Object%93″ ol_text_shadow_blur_strength_tablet=”1px” quote_text_shadow_horizontal_length=”quote_text_shadow_style,%91object Object%93″ quote_text_shadow_horizontal_length_tablet=”0px” quote_text_shadow_vertical_length=”quote_text_shadow_style,%91object Object%93″ quote_text_shadow_vertical_length_tablet=”0px” quote_text_shadow_blur_strength=”quote_text_shadow_style,%91object Object%93″ quote_text_shadow_blur_strength_tablet=”1px” header_text_shadow_horizontal_length=”header_text_shadow_style,%91object Object%93″ header_text_shadow_horizontal_length_tablet=”0px” header_text_shadow_vertical_length=”header_text_shadow_style,%91object Object%93″ header_text_shadow_vertical_length_tablet=”0px” header_text_shadow_blur_strength=”header_text_shadow_style,%91object Object%93″ header_text_shadow_blur_strength_tablet=”1px” header_2_text_shadow_horizontal_length=”header_2_text_shadow_style,%91object Object%93″ header_2_text_shadow_horizontal_length_tablet=”0px” header_2_text_shadow_vertical_length=”header_2_text_shadow_style,%91object Object%93″ header_2_text_shadow_vertical_length_tablet=”0px” header_2_text_shadow_blur_strength=”header_2_text_shadow_style,%91object Object%93″ header_2_text_shadow_blur_strength_tablet=”1px” header_3_text_shadow_horizontal_length=”header_3_text_shadow_style,%91object Object%93″ header_3_text_shadow_horizontal_length_tablet=”0px” header_3_text_shadow_vertical_length=”header_3_text_shadow_style,%91object Object%93″ header_3_text_shadow_vertical_length_tablet=”0px” header_3_text_shadow_blur_strength=”header_3_text_shadow_style,%91object Object%93″ header_3_text_shadow_blur_strength_tablet=”1px” header_4_text_shadow_horizontal_length=”header_4_text_shadow_style,%91object Object%93″ header_4_text_shadow_horizontal_length_tablet=”0px” header_4_text_shadow_vertical_length=”header_4_text_shadow_style,%91object Object%93″ header_4_text_shadow_vertical_length_tablet=”0px” header_4_text_shadow_blur_strength=”header_4_text_shadow_style,%91object Object%93″ header_4_text_shadow_blur_strength_tablet=”1px” header_5_text_shadow_horizontal_length=”header_5_text_shadow_style,%91object Object%93″ header_5_text_shadow_horizontal_length_tablet=”0px” header_5_text_shadow_vertical_length=”header_5_text_shadow_style,%91object Object%93″ header_5_text_shadow_vertical_length_tablet=”0px” header_5_text_shadow_blur_strength=”header_5_text_shadow_style,%91object Object%93″ header_5_text_shadow_blur_strength_tablet=”1px” header_6_text_shadow_horizontal_length=”header_6_text_shadow_style,%91object Object%93″ header_6_text_shadow_horizontal_length_tablet=”0px” header_6_text_shadow_vertical_length=”header_6_text_shadow_style,%91object Object%93″ header_6_text_shadow_vertical_length_tablet=”0px” header_6_text_shadow_blur_strength=”header_6_text_shadow_style,%91object Object%93″ header_6_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” z_index_tablet=”500″ border_radii=”on|7px|7px|7px|7px” border_width_all=”3px” border_color_all=”#537772″ vertical_offset_tablet=”0″ horizontal_offset_tablet=”0″]
| When | What | Description | Text |
|---|---|---|---|
| Sept 2021 | HEPOA Board Meeting Robert’s explanation of why he thought it was acceptable to hire the crack sealing without putting it into the proposed budget and without expert advice in a reserve study. | For more than a year, the BOD had been discussing the fact that our Bylaws and State Law required having members vote on a Proposed Budget. We had a Road Committee that had prepared a report and gathered information about the condition of the roads. The Road Committee planned to work with an expert to do a Reserve Study. When Robert brought up voting to seal the cracks for approximately $3,000 at the Aug 5 BOD meeting, Janet pointed out that we would need to put this in a proposed budget, and get expert advice and bids. Duane reminded him of that after the meeting. The minutes reflect that the Road Committee was to agree on what to do. Robert hired the crack sealing with no written bid, no contract, and no agreed-upon cost. Jean paid the $5,000 bill because there is no process except for the Treasurer to pay all bills presented to her. Robert explained to the BOD that this is just how we’ve always done things and he did not know about any other way of doing things. Note: The last time this was done, it cost about $1,700 and the vendor said on the bid that the second time would cost about half that due to not needing the prep work. | Robert’s Explanation of Crack Sealing |
| Oct 2020 | HEPOA Board Meeting Discussion of the need for a Proposed Budget, that we currently can’t spend more than $1,000 without member vote and Jean explains the current process. | The BOD had become aware of the fact that they cannot spend more than $1,000 without a vote of the membership. They decided they needed to prepare a Proposed Budget for members to vote on. Jean described that currently, she and Janice are presented with invoices from vendors and have no idea what anyone agreed to pay them. | Discussion of Budget Committee and Current Process April 19, 2021 Janet emailed Jean asking for information for creating a proposed budget. Jean answered: deanjean@skybest.com Thu, Apr 22, 3:00 PM to me Janet, The only thing that I know about the 2009 expense is that the invoice says it was a grading and backhoe company. I was not here then since my house was not finished and closed until the very last of Dec. that year. I do not have any 2009 financial report for that year. The bank accounts were still in Eloise’s bank for part of that year and the Road Maintenance Acct. was actually established during that year. I doubt that a Statement was done since all of this was still in transition. We need to assume that it was correctly charged. Making changes for that far back would definitely just risk raising an IRS flag. A far as I am concerned the graveled area into the commons area is a “driveway” and not a “road”. This is just upkeep on that driveway and not “Road Maintenance”. I am certain that funds in the Capital Account are intended for repairs and maintenance on the paved areas(including turnarounds). The additional expense was for additional gravel. In addition, we would go ahead (and have) and pay for small items out of our regular account if the funds were available that year. That would always be preferable to going into the Capital Account if we could avoid it. We are allowed to do this at the Board’s discretion. It is taking funds from the Capital Account for routine expenses that is not allowed. Insurance went up when I insisted that we needed to have D&O coverage. It went back down $300 when Alan found a lower-cost provider for the same policy. Considering our current issues, I am sure it was the right thing to do. The cost of electricity was increased when the Board voted to change the old wood-pole streetlamps that had been installed by the original developer to a more pleasant/ softer light. We have never had anything but pleasing comments on that change. The original lights sent all the light upward and cast very bright glare into the homes that were close. The one at the main intersection shines into all three homes on Timbersong. It also shines straight into my back door and porch in the winter. The one at the front of the neighborhood is not only much more pleasing to see, but is also easier to see when coming up the main road when it is dark. These electrical charges will always have some variation as rates change and as usage on the Gazebo for nighttime events varies. We have no way to really monitor or collect for this. After we get this issue about the By-Laws resolved, assuming we do, I will sit down with everyone on the Budget Committee and we can look at the detail behind the past three years’ expenses to work on a Budget. That will help and I will be happy to do it, but I think we are a bit premature at this point. I don’t know if we can really get people to respond to the By-laws changes. Jean |
| 2018 | Treasurer’s Report Distributed at the Annual Meeting | This report was distributed to members. It should have been approved by the BOD prior to this meeting. The BOD sees no backup, no bank statements, no invoices, approves no payments. Note that the previous balance is added as income. By he end of the year, this has been corrected but never mentioned and no one comments on the change in balance. | Treasurer’s Report Distributed at 2018 Annual Meeting Year End Treasurer’s Report |
[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]