Four draft motions, revised v3

Draft motion 2: Budget Transparency and Independent Financial Audit

Full draft text

I move that the Association provide every homeowner with (a) the proposed annual budget and assessment, with supporting prior-year budget-versus-actual results and an explanation of reserve transfers, and (b) an independent financial audit of the Association’s accounts for fiscal years 2023, 2024 and 2025, conducted by a qualified independent certified public accountant or public accounting firm with no financial or management relationship to the Association, its directors or its management agent other than the audit engagement. The audit shall examine the completeness and accuracy of financial statements, assessment and fine income, expenditures, legal and management fees, transfers to and from reserves, bank reconciliations, and material accounting adjustments. The Board is requested to commission the audit within thirty (30) days and provide the completed report, including material findings and any management response, to every lot owner within fifteen (15) days after receipt. The proposed annual budget and supporting information shall be furnished in accordance with Declaration Section 4.05, as amended, and the members shall have an opportunity to consider any budget disapproval through the applicable procedure and voting requirements. The Board shall provide members with a written timetable and progress update if the audit cannot reasonably be completed within the requested period.

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.

Context

• The CPA audit is a new, homeowner-requested higher level of assurance. It does not claim that Bylaws §9.6, as amended, already requires a CPA audit; the amendment apparently refers to financial statements or a review, and its effective wording must be verified.
• Depending on the governing documents and voting procedure, a member motion asking the Board to commission an audit may be advisory. A simple member vote may not be able to compel it.
• The auditor would be engaged through a documented, conflict-checked process and work to professional auditing standards. An audit gives reasonable assurance; it is not a promise to detect all fraud.
• The report would go to all lots electronically or by mail, with secure homeowner access and redaction of sensitive data; account details would not be posted publicly.
• 2026 year-to-date figures could be covered by interim agreed-upon procedures if the auditor recommends it. That would not be a completed full-year audit.
• Budget delivery follows Declaration §4.05 as amended, not Bylaws §3.3. Any member disapproval follows the recorded procedure and voting requirements; it is not automatic.

Source / basis

Declaration §4.05 as amended; Bylaws §9.6 (operative wording to be verified); 2023–2025 year-end statements and the 2026 September statement.

Proposer

Adam Moore

Seconder

Adam Clegg

Board response

TBD

Proposer and seconder are named by the homeowners preparing these drafts. Nothing here has been recorded in an Association minute, and no Board reply has been received.