Updated Replacement Fund and Restricted Assets Tabulation

2009 December 30
Last update: 2009 Dec 31. Click on History for changes and updates.

__During and following the 2009 Dec 29 Town Hall Meeting, several of the members had an extensive discussion of the shortfall in the Replacement Fund / Restricted Assets accounts. This was covered in my 2009 Oct 13 letter to the Board re Preservation (Replacement) Fund & Restricted Assets. No action was taken by the Board concerning the 2009 Oct 13 letter.

__The continuation of this post is my 2009 Dec 30 email to the Board re the subject title of this post.

Don Nordeen
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• Key Words: Accounting Practices - MOA, Financial Information - 2007 General, Financial Information - 2008 General, Financial Information - 2009 General, MOA Board of Directors, MOA Operations - General/Total, Reserves for Capital Repair [Preservation Fund], accounting, AICPA Audit & Accounting Guide for Common Interest Reality Associations, AICPA Audit & Accounting Guide, AICPA, audit, board of directors, CIRA, preservation fund, preservation, replacement fund, replacement, reserve fund, reserve

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Voting Results on $100 Dues Increase Plus COLA

2009 December 19
Click on History for changes and updates.

__The results of the voting at the 2009 Dec 19 Special Members' Meeting on the Board's Proposal for a $100 increase in the Dues Cap plus COLA are the following as reported by the elections committee:

• Eligible Voters = 1,743
• Quorum = 175
• Ballots Cast = 1,292
• Valid Ballots = 1,245
• Invalid Ballots = 47
• "Yes" Votes = 431
• "No" Votes = 814

This represents a 35% to 65% defeat of the Board's proposal. These numbers are slightly different from those announced at the Special Members' Meeting, and are the corrected numbers published in an email from MOA.

__When time permits, I may add some of the members' comments in the continuation of this post.

Don Nordeen
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• Key Words: Accounting Practices - MOA, Business Reviews - 2009, Financial Information - 2009, MOA Board of Directors, MOA Members & Members' Rights, abuse, access to records, accounting standard, accounting, balanced budget, budget, civility, closed meeting, closed session, Covenants Conditions and Restrictions, dues, duty of obedience, executive session, GAAP for community associations, GAAP for homeowners associations, GAAP for property owners associations, governance, governing documents, members' rights, replacement fund, reserve fund, special meeting, user fees, vote

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Further Thoughts and Information on the Dues Increase Proposal

2009 November 30
Click History for a list of changes and updates.

__As the title suggests, the continuation of this post is my email to MOA Members and provides further thoughts on the Board's proposal for a $100 increase in the dues cap plus COLA. Exchanges of email communications have occurred. As in any good debate, there are different points of view. Any disagreements should lead to a better understanding. The unfortunate part concerning this proposal is that the board did not facilitate a members' debate prior to developing the proposal for a vote.

__My Summary View on MOA's Challenges — I would like to see more emphasis on reaching out to one another and focusing on the common interests to bring the members together to operate, maintain and preserve the recreational facilities in a manner that considers the interests of all the members and is as fair as possible to all members. Reference: my 2007 Jun 13 email to MOA Members titled, We are all in this Michaywe boat together.

Memo: Some of the links including the one above in this post are to my password-protected weblog. If you are a MOA member, please refer to the Welcome & Home page for information on access.

Don Nordeen
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Please be advised that the writer is not an attorney, and this is not legal
advice. The information is based on research on information available
in the public domain.
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• Key Words:_ Accounting Practices (MOA), Business Reviews, Dues and Assessments, Financial Information (2009), MOA Board of Directors, MOA Operations (General/Total), abuse, access to records, accounting standard, accounting, balanced budget, budget, civility, closed meeting, closed session, Covenants Conditions and Restrictions, dues, duty of obedience, executive session, GAAP for community associations, GAAP for homeowners associations, GAAP for property owners associations, governance, governing documents, members' rights, replacement fund, reserve fund, special meeting, user fees, vote

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2008 Audit Report for Michaywe Owners Association

2009 June 23
Last edit: 2010 Feb 17. Click History for a list of changes and updates.

__The continuation of this post is my email to Mr. David Myler of the CPA firm conducting the 2008 audit concerning the report made by a staff member of this firm at the 2008 MOA Annual Meeting. The email supports and explains my comments and questions at the Annual Meeting.

__I did recommend this firm because it focuses on reviews and audits for owners associations and has the knowledge of the accounting standards applicable to owners associations.

__The results have been disappointing. The content and format for the audit reports have changed each year. Many of the requirements in the applicable audit and accounting guide for owners associations do not appear to have been applied.

__ The lack of consolidated financial statements, however, is the responsibility of the MOA Board which did not authorize their preparation even though required as part of GAAP.

Don Nordeen
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• Key Words:_ • Accounting Practices, MOA; • Financial Information, 2008 General; • MOA Operations, General/Total; • Reserves for Capital Repair; accounting principles; AICPA Audit & Accounting Guide for Common Interest Reality Associations; AICPA Audit & Accounting Guide; audit; CIRA; Common Interest Realty Association; consolidated financial statement; preservation fund; transparency

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Comments on the 2007 Audit Reports

2009 May 18

Last edit: 2010 Feb 17. Click on History for changes and updates.

__MOA has had two different auditors (CPAs) in the years since 2000. Significant changes were made in the format and content in the review/audit reports by the CPA from 2000 to 2005. A major restatement of MOA's 2000-2004 income statement and other accounts was made in 2005 to correct the handling of the losses in the Pines Club Corporation. Beginning in 2006, a new CPA firm was engaged, who made further changes in both format and content. The new CPA used a different method for entering PCC's losses into MOA's accounting.

__MOA members are rightfully confused. No one on the board has explained what has happened and why. Without intervention by someone, the same errors and discrepancies are likely to be carried over into the audit reports for 2008.

__The continuation of this post is my email to MOA's CPA commenting on the 2007 audit reports which contain the possible errors and discrepancies.

Don Nordeen
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• Key Words:_ Accounting Practices (MOA), Financial Information (2007), Financial Information (2008), MOA Operations (General/Total), Preservation Fund, accounting principles; AICPA Audit & Accounting Guide for Common Interest Reality Associations; AICPA Audit & Accounting Guide; audit; CIRA; Common Interest Realty Association; consolidated financial statement; preservation fund; transparency

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Board's Proposal for Dues Increase and Discussion Forum for MOA Members

2009 February 14
Click History for a list of changes and updates.

__The continuation of this post is my email to MOA members on the stated subjects.
Don Nordeen
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• Key Words:_ Accounting Practices (MOA), Financial Information (2009 General), Governing Documents, Members' Rights, MOA Board of Directors, MOA Operations (General/Total), accounting, balanced budget, budget, duty of obedience, GAAP for property owners associations, governing documents, replacement fund, reserve fund

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Audit Considerations for 2006

2007 May 07
Last edit: 2010 Feb 16. Click History for a list of changes and updates.

__ The continuation of this post is an email to the board summarizing the accounting and audit concerns regarding MOA's financial accounting and reports. Fourteen subject areas are covered, which is an indication of the magnitude of the opportunities for improvement. My goal is to help make the accounting and accounting practices so well founded that even over a beer after a round of golf the members comment that they have no quarrels with the accounting. With solid credibility in the accounting, the members can better spend their efforts on helping to make the necessary improvements.

__ Please post your comments.

Don Nordeen
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Continue reading Audit Considerations for 2006.

• Key Words:_ Financial Information, 2006 General; Financial Information, 2005 General; Financial Information, General; MOA Accounting Practices; MOA Board of Directors; MOA Operations, General/Total

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