Minutes of Meeting with the Auditor
PRAVEEN T
<praveenthn@gmail.com>The meeting was held to discuss the audit, maintenance collections, and related financial matters for the year FY 2024–2025. The following points were discussed and noted:
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The Auditor confirmed that there was an approximate ₹89 lakh shortfall in maintenance collections during FY 2024–2025, primarily during the first three quarters of the financial year. It was also noted that the current Auditor was serving as the Association’s accountant during that period.
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The Auditor confirmed that members of the previous Managing Committee may submit their observations or findings even after completion of the audit process. The previous Managing Committee requested that the current Association issue an official letter to facilitate the recording of such observations; however, the Treasurer declined to issue the requested letter.
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The Auditor clarified that the audit report is not a prerequisite for payment of quarterly income tax liabilities. Any delay in payment may attract applicable interest and statutory penalties under the Income-tax Act.
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The Auditor and residents advised the Treasurer to clear the outstanding income tax liability at the earliest opportunity in order to minimize further interest and statutory penalties.
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The Treasurer stated that residents were willing to pay lower maintenance charges despite the Association incurring higher expenses during the period, and that no essential services were affected. The Auditor observed that any shortfall in maintenance collections as compared to expenses results in financial liabilities such as delayed payment to vendors, may reduce the effective corpus fund, shown as Loss for the period in audit report.
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The Auditor clarified that the corpus fund and fixed deposits are not the same. The corpus fund represents the Association’s net financial position after considering factors such as shortfalls in maintenance collections, outstanding liabilities, and other financial adjustments, whereas fixed deposits constitute only one category of assets held by the Association.
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It was noted that timely collection of maintenance charges sufficient to meet quarterly expenses is essential for the financial sustainability of the Society and to avoid the accumulation of liabilities and financial stress.
President Palmsprings
<palmsprings.president@gmail.com>Hi Praveen,
I agree with some of your points, but that does not justify the delay in signing the original audit. The signature was delayed by more than three months, which in turn delayed the current audit (2025–2026)—an unprecedented situation for our society. Current Treasurer was not involved in the matters you referenced in Point 5, and the statements you attributed are incorrect. Furthermore, you altered the earlier conversation: the Treasurer for 2024–2025 (whoever held the office then) stated that lowering maintenance charges did not affect any essential services or operations in our society. The Auditor, however, correctly noted that any shortfall between collections and expenses creates financial liabilities—such as delayed vendor payments and a reduced effective corpus—reported as a Loss for the period in the audit.
Additionally, the tasks I undertook—arranging the meeting with the Auditor, obtaining clarifications from previous association members, and incorporating your observations into the audit report—should have been completed by you and your team before the AGM, but you failed to do so. Moreover, you excluded residents from several wings and intentionally ignored those wings; omitting entire wings and their residents is neither fair nor acceptable. The Treasurer was on the attendance list, so why was he not copied on the email? Why was the association mail id not copied as well?
Regarding the letterhead issue: the Treasurer alone cannot decide on letterhead use. Singling out the Treasurer and blaming him alone for denying letterhead use is neither accurate nor acceptable.
Is there any reason you and your team are raising all these points now, which should have been presented before the AGM? I do not agree with this timing or intent.
Partha Pritam Patra
<parthapritam.patra@gmail.com>Thank you, Subramanyam, for keeping us in the loop.
It appears that you had extensive discussions with the Auditor, the previous Association, and members of the association before that (selected members).
Could you please outline the key findings shared by the Auditor?
What is the total amount involved? Is it the ₹78 lakh or ₹80 lakh or ₹89 lakh that has been discussed, or is it a different figure altogether? Where exactly was the financial gap identified, and what was the Auditor's conclusion regarding it?
What were the key observations or comments from the previous-to-previous Association members?
Most importantly, what reasons did the previous Association provide for not signing the audit report for more than three months?
A clear summary of the findings, observations, and explanations would help all residents better understand the matter.
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Nandeesh Gunaki
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SDA Palm Springs Association
<sda.palmsprings.association@gmail.com>PRAVEEN T
<praveenthn@gmail.com>Hi Prasath,
It is not surprising that you have ended up in a catch-22 situation when Advance income tax was collected from residents and then not paid to the Income Tax Department, without informing the residents.
If you’re looking for a way forward, the best next step may be to call a GBM and explain to the residents:
- The seriousness of our current financial position, which has arisen due to the short collection from your previous tenure to the current tenure.
- Why have you not signed the audit report which contains wrong fixed deposit details, which has been pending for 24 months.
Otherwise, please follow the decision and resolution passed by the Association. If anything is still unclear, please check with the Association’s appointed lawyer.
@Subbu,
Thanks for acknowledging the approximate ₹89 lakh shortfall in first quarters of FY 2024–25.
Please clearly specify which points you agree with and which you do not, if any, along with the reasons. This will help us understand your interpretation of the discussion with the auditor.
Was this email written by you personally? During the meeting, both we and the Auditor explained the financial position in detail. At that time, you said you understood the finances. However, your current email seems to contradict what was discussed and acknowledged in the meeting. I’d appreciate your clarification.
Finally, we’ve been telling residents for the past years that there’s a short collection in FY 24-25. It took you two years to get that, but failed to issue association letter head to document it.
PRAVEEN T
SDA Palm Springs Association
<sda.palmsprings.association@gmail.com>PRAVEEN T
<praveenthn@gmail.com>Hi Prasath,
Please read my previous email again. You will find the answer to your question there.
It is not surprising that you have ended up in a catch-22 situation when Advance income tax was collected from residents and then not paid to the Income Tax Department, without informing the residents.
If you’re looking for a way forward, the best next step may be to call a GBM and explain to the residents:
- The seriousness of our current financial position, which has arisen due to the short collection from your previous tenure to the current tenure.
- Why have you not signed the audit report which contains wrong fixed deposit details, which has been pending for 24 months.
Otherwise, please follow the decision and resolution passed by the Association. If anything is still unclear, please check with the Association’s appointed lawyer.
Any member of the Association should also be able to remind the Treasurer of the resolution passed on 13 June 2026, as it appears to have been overlooked. It would also be helpful to explain who proposed and supported that resolution so there is no further confusion regarding its origin or intent.
Regards,
Praveen T
Partha Pritam Patra
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