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February 2, 2023 at 11:01 am #7773Rana GoodmanKeymaster
HELP YOUR COMMUNITY
READ THIS AND THEN FILE TO BE A BOARD CANDIDATE BEFORE FRIDAY THE 3RD @ 4 PM
By: Forrest Quinn
WE ARE NOT GETTING WHAT WE ARE PAYING FOR.
SCA’s COO’s annual compensation package is about $315,000. Yet, the COO has so little regard for residents she doesn’t even work an eight-hour day at SCA’s office (typically arriving after 8 AM and leaving before 4 PM with many Fridays off). But to make up for the lost time, she requests assessment increases to add more staff.
About 15 months ago, the COO hired an SCA resident as Chief Financial Officer (CFO). The CAM at the time (licensed HOA manager) told the Board that hiring a resident for a managerial position was a professional ethics/standards violation. That CAM left SCA shortly after that.
SCA is wasting money because the COO isn’t knowledgeable enough to know that SCA doesn’t need a CFO. SCA’s accounting is bookkeeping, not finance. SCA’s “CFO” doesn’t manage multiple locations in multiple states. The “CFO” does not supervise other professionals like CPAs, MBAs, degreed accountants, etc. The “CFO” has no check signing authority. Shockingly, the “CFO” doesn’t even sign SCA’s tax return. Instead, the COO pushes that liability off onto unpaid volunteers. SCA’s accounting manager is not a CFO.
The COO’s CFO pick had no HOA experience and no CFO experience (no fund accounting experience, no reserve study experience, no reserve funding experience, no assessment experience, no HOA income tax experience, and no construction or project management experience). Nevertheless, our COO was generous with our money and started the inexperienced “CFO” as most assuredly, the highest-paid HOA accountant in Nevada with a $190,000 to $200,000 compensation package.
You would think that top-of-the-line compensation would provide top-of-the-line results. You would be wrong.
SCA’S FINANCIALS ARE NOT COMPLIANT WITH NEVADA LAWS AND REGULATIONS:
SCA’s 2023 budget did not provide adequate reserve funding.
The Villa’s “additional assessment” is non-compliant.
SCA’s interim financial statements are not prepared per Generally Accepted Accounting Principles (GAAP).
SCA doesn’t prepare monthly financial statements.
THE COO’S NON-COMPLIANCE WITH CC&RS – CORRECTED BY VOLUNTEERS
The COO denied Villa owners the use of their property by denying their requests to install backyard patios. Volunteers found and corrected her error.
Due to the lack of funding, much-needed improvements were blocked for years. The COO never alerted the Board that SCA’s CC&Rs included a project funding mechanism called the Asset Enhancement Fee (AEF). Before a volunteer corrected this, about $1.7 million in improvement funding was lost since the COO’s arrival.
MILLION DOLLAR RESERVE STUDY ERRORS – CORRECTED BY VOLUNTEERS.
The COO and her CFOs have missed millions of dollars in Reserve Study errors. This includes overvalued masonry walls, use of improper reserve techniques, and missing landscaping replacement costs. All of the above were detected and corrected by volunteers.
There is a 2023 Reserve Study under contract, but there isn’t anyone on staff or on the Board with a proven understanding of Reserve studies.
DESPITE TOP COMPENSATION – NO PROACTIVE MANAGEMENT
Ironically, SCA’s Chief Operating Officer doesn’t provide operating information. Image the COO of General Motors not disclosing how many cars are made or sold. At SCA, how many residents use our facilities? How many fitness classes are held? How many residents are participating in bus trips or attending variety shows? These and other metrics should be compared over time to determine if SCA is improving or declining. Then corrective action can be taken as required. How can the Board or residents make informed decisions without knowing this information?
To reduce risk, financial forecasting is a fundamental CFO duty. But SCA’s COO/CFO refuse to prepare multi-year assessment forecasts.
No strategic planning. If the COO/CFO don’t know 55+ HOA market trends, they should work elsewhere. Instead, they should identify emerging HOA market issues and develop solutions for the evolving HOA environment.
Whether you are pro or anti-restaurant, where is the information to make a decision? It is astounding the residents must FIRST pay $1.2 to $1.4 million before anyone starts a marketing/feasibility analysis to determine if the money was well spent.
IF YOU WANT CHANGE, YOU MUST RUN FOR SCA’S BOARD OF DIRECTORS.
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