Where is the Money- the undisclosed financial condition of LLHOA

Numbers don't lie, but do we see the whole picture?

Member Samantha commented: We have over $200,000 in reserves and $60,000 in our operating account. That's where the money is. We started a fraction of that. I don't see the problem. LLHOA update replied: Samantha,

It is understandable that you might think these numbers tell the whole picture, these are the numbers presented in the treasurer’s report at the last board meeting.

The whole picture is quite different because much was not included in that report. It is true that the HOA has $215,000 in the reserve and $60,000 in the operating account. It is also true that the HOA owes $242,600, leaving the HOA with net cash balance of $32,400.

The HOA owes $50,000 in uncashed checks, $72,000 in checks written but not sent because there are no funds in the operating account to pay, plus $43,600 approved by the board to be borrowed from the reserve account to pay the down payment on the new insurance policy, then there is $50,000 owed to Mr. Barone and this month’s $27,000 legal fee payable to Zack Levine.

$275,000 - $242,600*= $32,400

*(And this is not a complete list of LLHOA's outstanding financial obligations.)

So, you too should be asking, “Where Is the Money?” Our HOA takes in over $75,000 each month or $900,000 in the past 12 months with only a $32,400 net balance. There has not been a monthly contribution to the reserve account in months according to the records. The monthly expenses have exceeded the monthly income for the past several months. The money is not in the reserve account or the operating account. Where is the money?