WHAT ARE WE ARGUING ABOUT? PART1

[Robert Stern]

I got a very intolerant email from a homeowner who insisted I got it wrong and if I wanted to hear the truth listen to Mike Quinn’s( SCA Finance Committee Member) video where he explains the Reserves and 2023 Reserve Study and Financial Statements. I listened and Mike was a fine speaker and funny and as a fellow Armor Officer I do not question his integrity at all. But I do question his presentation as in this first case it misses the point. Listen to it and then evaluate both sides.

Mike accurately describes SCA’s Financial Statement Preparation and Distribution Policy but totally misses the point.
1. As a former CPA, CFO, President of a company and business advisor on operations my point is that with financial statements it is important that they are accurate, monthly and with variance analysis against budget and previous years and in context with Year to Date projections to provide the necessary detail to effectively manage the business. Mike did not address that. And the current CFO and reporting mechanisms are deficient. Yes monthly statements are prepared and only given to the board quarterly for approval and upon approval posted on website. So January through March perhaps presented to Board at April meeting and then posted thereafter, Not a good policy for managerial control nor transparency.
2. And the second point is Mike said you could go to finance committee monthly meeting if you are that interested and still the variance analysis would not be available and attending is a burden homeowners should not have to bear. Post it. Mike also said that you could fill out and submit a request for each Month with the office. While Mike is probably operating under that belief there are examples that such requests are denied as management is waiting from Board to approve is the reason given. Result: Dysfunction and homeowners in the dark. It’s a stall as there are not examples of the board disapproving any financial statement. Answer: Post them immediately.

That’s what many of us are arguing about and those in charge seem to be deaf as the best case. Part 2 in a couple days.

[Author]

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