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Why is property manager withholding HOA financial information?

Posted on Sun, Nov 13, 2011 @ 07:01 AM
  
  
  
  
  
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I am presently having a problem with our property manager obtaining information regarding the miscellaneous expenses reported on the monthly report to homeowners. To be honest, our monthly miscellaneous expenses are very high eg. $5,300 for the month of August 2011. I presented my concern to our property manager who was conducting our HOA meeting, and asked him to tell the homeowners present, what line items accounted for the $5.300. He informed the homeowners that he did not have that information at hand, and asked me to contact him to obtain that information. I've emailed my request for this information with no response from our property manager. It's been now, 3 requests that I have made asking him for the information. I am very disappointed that he is not responding. I'm only fulfilling his instructions to contact him to obtain this information. According to the Illinois Condominium Act Section 19,delivering information properly req uested, is a legal obligation and not a courtesy to unit owners. Early in the year, the HOA board rejected my proposal to have a finance committee. I am not trying to be a difficult homeowner. I am only trying to obtain pertinent information regarding questionable expenses. There are other homeowners concerned as well. Should I continue pursuing this matter? What is a reasonable fee for copies of this information, if the property manager brings it up? The miscellaneous expenses report is only one single page. How much could that be?

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Comments

There should be a State run comission that can over ride or listen to our problems. 
 
It seem the Manager & Board can do anything they want with no one to answer too.
Posted @ Sunday, November 13, 2011 7:42 AM by Paul
Two years ago our condo became managed by a new company. Soon after many structural and non structural changes were made.....all shoddy work and some eliminated. Unfortunately, our Board seems to be insync with the company with very little satisfactory transparency. The tenants are elderly and finanacial secure for the most part and do not speak up. The inquiries in to what is or is not going on comes from the same 8 or 9 residents who are not the majority. Elections are coming up soon and it is imperative to reelect a new Board with few volunteers to run because of the obvious control that is allowed to go on. Can you suggest 
 
 
 
anything. Our beautiful condo of under thirty five units, atrium, water fall among many other larger issues are going unaddressed and monopolized by the mangagement company who seems to be in cohoots with the board. thanks for any input.......Lilly Please do not post my email
Posted @ Sunday, November 13, 2011 7:45 AM by Lily Johns
I am not familiar with the laws in IL, but generally speaking, any homeowner is permitted to inspect the books and records of his/her HOA during normal business hours with adequate advance notice to the PM company. My suggestion would be to send an email to your PM with copies to each board member explaining what information you would like to inspect, then suggest several dates and times that you are available to do so in his/her office. 
 
You are correct to be suspicious: charges to a miscellaneous expense account should be very small and infrequent.
Posted @ Sunday, November 13, 2011 7:49 AM by Larry Davis
In Massachusetts, state law dictates that financial records (including records of all receipts and expenditures, be made available to unit owners upon request. Have you checked your state laws?
Posted @ Sunday, November 13, 2011 7:52 AM by Bob
In What state is your HOAlocated?? Most states have a lawn that applies to both HOAs and Condos and there are provisions in that law, if such exists, which can supersede your HOA documents in case of conflicts. 
But I have grave concerjns that you allow your property manager to conduct meetings. UIsuially the bylaws require that the President of the Board of Diredctors does so. I emphasize the property manager is responsible to the Board. The Board hired him and can fire him. By allowing him to run your meeting the Board is allowing and underling to dictate to them whatever he wisheImmediately review your bylaws and determine what requirements you fine in regardn to a management company and for conduct of board and annual meetings.
Posted @ Sunday, November 13, 2011 8:30 AM by Charles Adler
Perhaps you should attend another board member and ask the question again and also mention the numerous unanswered emails you've sent. Or, send a letter to the mgr, with return receipt request. Also copy the board members, or at least the Pres. No more communication by email! The mgr should have been able to answer your question; I know our mgr would have. Although the mgr doesn't prepare the f/s he/she should be able to speak intelligently about it and explain everything that is contained in the statements. 
 
Since you mention that the mgr conducted the board meeting; it appears that you may have a "puppet" BOD. This is not a good thing. The BOD should be running the show and telling the mgr what he/she should be doing; not the other way around. Boards who operate this way are usually not aware that they are resp. for anything that goes wrong even if the mgr is making all the decisions. A shake up of your BOD may be due!
Posted @ Sunday, November 13, 2011 8:59 AM by mary
You have a HUGE problem. I have seen this many times before.  
 
I suggest you speak to other owners and find a common concern. If others don't have any concerns (this is common), forget your concern too. There is little you can do on your own. If there are others that share your concern, make another request of the Board and have as many owners as possible sign on to the request. If there is no response, Contact an attorney that specializes in condo issues. Make sure that is what he/she does every day for a living. Do this at once.
Posted @ Sunday, November 13, 2011 9:01 AM by lawrence weiss, realtor
The only thing you can do is elect a new board, and demand info from the management co. Have an indep. aduit completed. Depending on answers you will have to decide what to do. I would recommend not firing the management co. until after to audit. It should be easier to get truer answers. They can always be fired afterward.
Posted @ Sunday, November 13, 2011 9:17 AM by Donna J. A.
Miscellaneous expenses are a red flag signaling one of two possibilities. 1) theft, and/or 2)ineptness by the bookkeeping department.  
 
In my business I managed to keep miscellaneous expenses on my statements to hundreds of dollars on expenses and revenues of 3-4 million dollars.  
 
Attributing expenses to  
appropriate accounts isn't always easy, but , certainly, if the bookkeeper would sit down with management on a daily or weekly basis and decide to add accounts if necessary miscellaneous would shrink to reasonable levels.  
 
Take down that red flag.
Posted @ Sunday, November 13, 2011 9:18 AM by It's 10:15, time for Martha Deane
Most owners just don't want to get involved. Sometimes owners understand problems but cannot convince the Board or the other other owners that a problem exists. 
 
there should be a method of getting government auditors into every condo and HOA. Or, legislation should be requiring y a outside auditing and reporting by and independent firm not relying on management reporting.
Posted @ Sunday, November 13, 2011 9:35 AM by Harry Williams
You can see the general consensus is that you as a unit owner have every right to inspect a copy of the financials for the association. You can make the demand of the association's president or any board officer. Normally, they have a set specific time frame in which to make those record available. If I were you I would hound the board officers to no end until this information is made available. The dollar figure's you're talking about coming out of a miscellaneous account seem very hight to me as well. Has there been any large project that might require added funding, perhaps that where the funds went, a reasonable expenditure; but without accounting for it, you'll never know. Keep after the BOARD, they tell the Property Manager what is done.
Posted @ Sunday, November 13, 2011 11:21 AM by cebo
Until the laws governing hoas/condos are changed to give home owners the right to see unedited bank statements showing all checks cashed and to whom etc. without going through costly ligigation to obtain these rights. Little will change. Until there are actual penalties for violating these laws, home owners will continue to be robbed of the right to protect the thousands of dollars in the investment of their homes. 
 
Managers and condo boards know they are un-policed. Sticky fingers have a long time to dalley in the till. When finally uncovered the money is gone and never seen again.
Posted @ Sunday, November 13, 2011 11:58 AM by serola
Quarterly or, in larger Associations, monthly check runs, and statements should be automatic and should be emailed or mailed to all owners.
Posted @ Sunday, November 13, 2011 12:15 PM by It's 10:15 -- Time for Martha Dean
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