Financials
From the HOA's year-end statements for 2023–2025 and the September 30, 2026 year-to-date statement. 2026 is incomplete and is shown separately.
Quick synopsis
01
Homeowners have raised concerns about how Association funds are budgeted, spent, transferred into reserves and reported back to the community. Residents say proposed budgets, year-end accounts and meeting records have not always been made available in a way that lets them understand or question financial decisions. The Association’s governing documents establish responsibilities for annual-meeting notice, budget communication, financial reporting and the keeping of records. These concerns deserve transparent documentation, an explanation of recorded financial inconsistencies and fair access to the information every owner needs to participate.
Homeowner concern
02
Transfers TO reserves increase reported expenses without being operating spending. The homeowner-supplied budget summary reports zero budgeted fines; 2025 statement fine revenue was $8,700 versus a $9,498 projected reserve draw. Discovery and statement totals differ by $890 in 2023 and $690 in 2024; these numbers alone do not establish motive.
Statements / supplied budget summary / HOA account
Association discovery response, October 20, 2026 (cited selectively as Association statements; not published) · private; not linked
03
Documented ledger and bank reconciliations of fine income and reserve transfers, explanations of adjustments, and an independent financial review with access to supporting records.
Request / analysis
Bylaws §3.3 requires written notice of the annual meeting at least 21 days beforehand. The separate rule on delivering the proposed budget to owners—normally at least 21 days before the annual meeting—comes from Declaration §4.05 as amended, not the Bylaws.
Paraphrase. Verify the exact §4.05 amended wording before quoting.
Original Bylaws §9.6 called for an annual audit, with a copy furnished to members who request it in writing. Homeowner notes indicate a later amendment changed this to a financial statement or financial review. We ask for whichever review and report the operative amended documents require. Members’ reported non-receipt of year-end accounts is a concern, not a finding that unsolicited distribution was required.
Requires verification: confirm the original §9.6 phrasing against the scan, and whether and how the amendment applies.
Bylaws §5.6 makes the Secretary responsible for keeping minutes; §9.10 gives members a right to inspect records on written request. The Bylaws are not presented here as requiring AGM minutes to be sent automatically to every owner. The Association reports no member quorum at its last three AGMs, so no AGM minutes to produce, and separately says it could not locate Board minutes from January 2023 onward.
Member (AGM) records and Board records are distinct.
The question
Do the HOA's budgets, reported spending, reserve transfers and fine income line up across 2023–2026?
Dues and reserves are shared resources. Comparing like periods and separating spending from transfers helps homeowners understand what the community can afford and what still needs explanation.
Each year the HOA adopts an expense budget; the 2026 budget is $65,682, funded mainly by $690 annual dues on 88 lots.
DocumentedBylaws §4.11 authorizes rules and fines; fine income is reported in the statements.
DocumentedYear-end statements show reported expenses above budget in 2023–2025, largely because reserve transfers were booked as expenses.
Documented2023 year-end financial statement (opens in new tab)2024 year-end financial statement (opens in new tab)2025 year-end financial statement (opens in new tab)
Each year's budget planned a draw from reserves; each statement shows $0 actually drawn.
Documented2023 year-end financial statement (opens in new tab)2024 year-end financial statement (opens in new tab)2025 year-end financial statement (opens in new tab)September 2026 financial statement (opens in new tab)
Fine-income figures in the HOA's Oct 20 response differ from the statements for 2023 and 2024.
HOA representationAssociation discovery response, October 20, 2026 (cited selectively as Association statements; not published)
Period: Jan 1 – Sep 30 (YTD) · Full-year expense budget $65,682.00 · September 2026 financial statement (opens in new tab)
Year-to-date only (January 1 – September 30, 2026). Do not compare these figures with the full-year totals of earlier years.
$8,597.05 spent through Sep 30 against a full-year budget of $4,885.00, already $3,712.05 over. Not annualized.
$6,525.00 through Sep 30 of $8,700.00 for the year.
Assessment budget: $690 × 88 lots × 94% projected collection = $57,076.80.
Budget: the full-year expense budget.
Reported total expenses: the statement's total, which includes reserve allocations posted as expense.
Excl. reserve allocation: total expenses minus accounts 900 + 905 (2023–2025) or the reserve-interest transfer (2026). Money moved to reserves is savings, not operating spending.
Reported expenses of $79,847.49 exceeded the $66,175 budget, but $25,110.68 were transfers into reserves. Without them, operating spending was $54,736.81. Income of $86,136.86 left a $6,289.37 surplus. A $9,098.20 reserve draw was planned; none was made.
Reported expenses of $87,852.14 included $33,299.14 in reserve transfers; operating spending was $54,553.00 against a $66,763 budget. Net was $934.56. A $9,686 draw was planned; none was made. A $9,479.72 judgment collected is accounted for separately from fines.
Reported expenses of $77,109.67 included $13,190.22 in reserve transfers; operating spending was $63,919.45 against $66,575. Net was −$1,392.02, the first deficit in the period. The year included $4,614 of unbudgeted fence capital spending. A $9,498 draw was planned; none was made.
Incomplete year. Through September 30, expenses of $53,625.19 ran above the $43,760 budget for those nine months; net is $26,412.07 because most dues arrive early in the year. Legal costs of $8,597.05 already exceed the $4,885 full-year legal budget.
Periods differ for 2026: fine revenue is through September 30 only ($7,042.14), while $8,605.20 is the projected full-year deficit / planned reserve draw. The HOA's separate discovery figure of $7,342.14 through October 19 is not used in this chart.
Read with care: fine revenue and the planned draw are similar in size in several years. That similarity is a question for the board, not proof that fines are intended to cover deficits.
*2026 fines through Sep 30. In every year the statements report an actual reserve draw of $0, even though a draw was planned. Fine revenue for 2023–2025 is from the year-end statements (account 230 for 2023).
Select a column heading to sort. The 2026 row is year-to-date through September 30 (full-year budget shown for reference).
| 2023 | $66,175.00 | $79,847.49 | $25,110.68 | $54,736.81 | $86,136.86 | $6,289.37 | $17,565.87 | $2,487.68 | $0.00 | $9,098.20 | $8,877.45 | $102,241.56 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | $66,763.00 | $87,852.14 | $33,299.14 | $54,553.00 | $88,786.70 | $934.56 | $13,050.00 | $4,895.23 | $0.00 | $9,686.00 | $9,575.01 | $135,540.70 |
| 2025 | $66,575.00 | $77,109.67 | $13,190.22 | $63,919.45 | $75,717.65 | -$1,392.02 | $8,700.00 | $6,942.87 | $4,614.00 | $9,498.00 | $9,484.99 | $148,730.92 |
| 2026YTD Sep 30 | $65,682.00 | $53,625.19 | $222.63 | $53,402.56 | $80,037.26 | $26,412.07 | $7,042.14 | $8,597.05 | $0.00 | $8,605.20 | $35,837.12 | $148,953.55 |
Compares fine-income figures stated in the Association discovery response, October 20, 2026 (cited selectively as Association statements; not published) with the HOA's own financial statements. Differences may reflect reporting cutoffs, adjustments or errors. They need a general-ledger reconciliation and are not evidence of fraud.
| Year | Discovery figure | Statement figure | Difference | Status |
|---|---|---|---|---|
| 2023 | $16,675.87Full year | $17,565.87Full year (year-end statement)2023 year-end financial statement (opens in new tab) | $890.00 | Reconciliation requested |
| 2024 | $13,740.00Full year | $13,050.00Full year (year-end statement)2024 year-end financial statement (opens in new tab) | $690.00 | Reconciliation requested |
| 2025 | $8,700.00Full year | $8,700.00Full year (year-end statement)2025 year-end financial statement (opens in new tab) | Match | Consistent |
| 2026 | $7,342.14Through Oct 19 | $7,042.14Through Sep 30 (YTD statement)September 2026 financial statement (opens in new tab) | $300.00 | Reconciliation requested |
2026: the $300.00 difference covers different periods (Oct 19 vs Sep 30) and is consistent with a later posting, but this needs confirmation.
These flags are requests for explanation. None alleges wrongdoing.
Reserve allocations were posted as expenses in accounts 900 + 905: $25,110.68 (2023), $33,299.14 (2024) and $13,190.22 (2025). In the same years the budgets planned reserve WITHDRAWALS of $9,098.20, $9,686.00 and $9,498.00, and the statements report an actual draw of $0 each year.
Question: Please provide a bank-level reconciliation of transfers between operating and reserve accounts, and explain the terms used: an allocation or contribution moves money into reserves, while a draw or withdrawal takes money out.
The 2023 fine income of $17,565.87 includes a negative $5,300 entry in the November budget comparison.
Question: Please explain what the adjustment represents and provide the supporting entries.
A judgment collected in 2024 ($9,479.72) is separate from fine revenue and should not be treated as fine revenue.
Question: Please confirm how the judgment was recorded and which account received it.
Legal costs through September 30, 2026 are $8,597.05 against a full-year legal budget of $4,885, an overshoot of $3,712.05 with three months remaining. This is not annualized.
Question: Please explain the drivers of legal spending and the outlook for the rest of the year.
The 2026 budget projects a full-year deficit / reserve draw of $8,605.20. Account 285 shows an actual year-to-date transfer of $0.
Question: Please confirm whether a reserve draw is still planned for 2026.
Differences of $890 (2023) and $690 (2024) appear between the discovery response and the year-end statements (see table above).
Question: Please provide a general-ledger reconciliation of fine income for each year.
Draft — not adopted · Revised editorial draft (v3; Motion 2 updated v4) — pending member and counsel review
Draft motion 2
What this would accomplish: Gives every owner the full budget and supporting results, and asks the Board to commission an independent CPA audit of 2023–2025 and deliver the report to every lot owner.
Members need the full budget, prior-year results and reserve explanations before considering a budget. Any disapproval follows Declaration §4.05 as amended and its voting requirements—not an automatic veto.
Asks the Board to deliver a complete records, rules and financial-review package to every owner within 30 days, with a signed status statement for anything not supplied. It is separate: it asks for records, rules and the existing §9.6 financial review to be furnished to all owners, while the new CPA audit request stays in motion 2.
Read full text of draft motion 3Editorially revised from the Draft AGM Motion Packet v2; not copied verbatim. Not an official HOA vote, ballot or proxy, and not adopted.
The linked page shows the full revised text; the original v2 packet remains linked above. No adoption, scheduled vote or support count is implied.