Corrections to Budget Operating Report & Balance Sheet Report

[Jim McGrath]

Hi Mary,

Thank you for the HOA Balance Sheet and Budget Operating Report. I have the following questions:

BUDGET OPERATING REPORT

I discovered a couple of problems with the Budget Operating Report that needs correcting. "5312 Association Fees" show the following:

1. Current Month Actual = $36000.00

2. Current Month Budget = $36000.00

3. Year to date Actual = $ 102.000.00 (YTD)

4. Year to date Budget = $102000.00 (YTD)

The YTD Budget through March should have been $108000.00 ($36000.00 X 3 mos). This means that there is a deficit of $6000.00, or 50 units have not paid.

If you divide the Annual Budget of $42600.00 by 12 months, this only equals $35500.00 per month, not $36000.00 per month as shown in the Current Month. Why is this?

BALANCE SHEET REPORT

1. In EQUITY PREVIOUS MONTH END, Net Income or loss is $28317.23. Where did you get this number?

2. What is the PARTNERS CAPITAL? Why is it in the HOA Balance Sheet?  Could it be that G8 is the PARTNERS CAPITAL and they are contributing funds to offset the ALLOWANCE FOR DOUBTFUL ACCOUNTS? G8 should have no part in this financial report.

Please correct the financials to reflect the correct numbers, and explain questions to Balance Sheet.

Jim

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James McGrath, Notary/Bookkeeping Services

[jim.e....@gmail.com]

I will share all my findings with the Google Group. Please be a part of the July 17 HOA Board meeting. It should be interesting.

Sent from my iPhone. James Notary Service

On Jun 25, 2014, at 1:12 AM, Aron Alarcon <aron.a...@gmail.com> wrote:

John, Jim,

Thanks for sharing these finding with me.  This HOA is getting more questionable by the minute.  I'm eager so read their explanation to the financial discrepancies.

Aron

On Tue, Jun 24, 2014 at 9:41 PM, John <jfe...@mchsi.com> wrote:

Jim,

 

I have not received the budget documents yet so I have not had a chance to look them over.  However, I am sure glad to have you looking at them.  I am not enough of an accountant to catch those details.  I will be interested in hearing the explanation.  I wonder why we are spending every penny that comes in and not setting some amount aside for the reserve.  I was told that without a reserve buyers cannot get bank financing.  Probably they want to spend it all trying to do whatever they can to make it easier for them to sell out. I do not trust their accounting of the expenses, but I do not think they would ever have an independent audit or even an assessment of how they spend the funds.  A decent comparison to other similar properties would be interesting.

 

In my mind, one of the biggest problems is that we have no local representation that assesses the use of the funds.  No board member is local and the HOA management company is out of Bakersfield.  The office people all wear  “Michaels” T-Shirts, but do not work for the HOA.  They are G-8 employees.  Is there enough detail to the documents to really understand what they are paying for vs what they are getting in services?

 

Thanks for your help and attention.

 

John

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[Jim McGrath]

Good morning Linda,

Thank you for the explanation. It would be great if your spokesperson would offer to go over the budget/actuals at the HOA meeting coming up.

Jim

On Wed, Jun 25, 2014 at 9:29 AM, Linda Ponte <lpo...@themichaelsorg.com> wrote:

Good Morning Jim,

In regards to the Budget Operating Report, the figures I reported are correct, we did not have a deficit of $6,000 the HOA dues were not increased until February therefore the dues were as follows:

January      $30,000

February    $36,000

March        $36,000

Total         $102,000

As far as the Balance Sheet, this is not G8, they are not contributing to offset the bad debt, this is the accummulation of the net income or loss over the years being carried forward.

Thank you

Linda Ponte

Regional Accounting Manager

Interstate Realty Management Company

A Member of The Michaels Organization

2020 W. Kettleman Lane, Lodi, CA 95241

Phone 209 334-6565 x2214  Fax 209 334-3712

lpo...@themichaelsorg.com

On Wed, Jun 25, 2014 at 8:20 AM, Mary Keshishian <mkesh...@themichaelsorg.com> wrote:

Hi Linda: Can you address this ? Thanks 

Mary Keshishian, CPM/Broker

The Michaels Organization 

Interstate Realty Management Co

818-679-8154 (c)

Begin forwarded message:

From: Jim McGrath <jim.e....@gmail.com>
Date: June 24, 2014 at 6:58:51 PM PDT
To: Mary Keshishian <MKesh...@themichaelsorg.com>, La Mirage HOA <la-mir...@googlegroups.com>
Subject: Corrections to Budget Operating Report & Balance Sheet Report