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1. • CommentAuthorshowme
   • CommentTimeMar 17th 2008

    
   I'm the treasurer of my HOA and sometime in 2005 a cd was purchased by a member with that member being the only signer on the account. The management company has been reporting this cd on the books since 2005 with no interest being accrued. When I asked for the detailed information on it to determine what was going on I was told to talk to the pres. The message I got was sent to her as well yet I haven't gotten a response about it. It has been over 3 weeks.
   
   Since I don't know if the money is really there or if it was cashed in but they forgot to tell the management company I'm not sure what to do. I have to give the treasury report tomorrow at our first open meeting. My belief is that since there is no proof that this money exists not to include it in the report. I would have to explain to the membership why I'm not reporting the numbers shown on the balance sheet . Unfortunatly I would have to tell them why and that isn't going to look good on the board. However, this has been on the books since 2005 so three years not one single person in the assocaition, on the board, or management company has questioned this money. Whom ever the person is that opened it is the one getting the statements.
   
   This also raises the issue about out taxes for the last few years. I'm not going to take the heat for this one so I think after I read my report I'm going to ask for the pres. (been on the board for about 5 years. 3 as secretary and 2 as pres.) to resign or vote her off. I have someone willing to second the motion.
   
   From a financial stand point am I correct in not reporting this money as existing due to the asbsence of proof?
2. • CommentAuthorPatP3005
   • CommentTimeMar 17th 2008

    
   I've worked with HOA's before, and my experience has been that they are very difficult. Usually, you are dealing with non-professionals who really don't know the correct way to do things or how things should be done.
   
   I think I would leave the CD on the books with a notation that there is a question about it. Then at the meeting, with the collective wisdom of the board, perhaps you'll get some insight. Plus, that will put pressure on the person that has the information to supply it to you.
   
   As far as voting the pres off, you're the only one that can know that. HOA's are huge personality and ego draws. You're the only one that can know how much you want to rock the boat and how much support you'll have if you rock it.
   
   Again, these are only my opinions. I'm not sure of the official GAAP response to your question about how to handle reporting the CD. My guess is though, that you don't do anything until you have a reason to or documentation to. Somebody should have the original CD paperwork - what about the bank?