The Board met in Executive Session on Friday, September 1, 2017, regarding the ongoing audit of the accounting records and supporting financial documents due to a financial discrepancy. Three members of the Finance Advisory Committee also attended. The auditor gave a report and an update of the situation. He also stated that he will have a final report ready on or around September 20, 2017. When the final report is concluded, the working papers along with his findings will be made available to the Board.
When the final report is available, Associa has stated that it will pursue legal action with the appropriate authorities against all persons involved. Associa re-stated in our meeting that they have every intention of making the HOA financially whole.
Also, at that time the Board will discuss having a third-party audit based on all the facts presented.
All Associa companies including DRM and PCM have been put on notice as to possible future claims. In addition, the insurance carriers for the HOA have been put on notice as to possible future claims.
At this time, the Board cannot disclose the persons involved in the fraud but will keep the homeowners informed of all information when available for release to the public. Also, for several reasons, such as legal liability, the Board cannot release information how the fraud was accomplished because it would reveal who was involved in the fraud. When legal counsel confirms that the HOA is legally protected, all such information will be released to the homeowners.
The Board’s updated information to report, on the amount of damages, is that it is currently about $100,000. We ask for your patience as we gather the facts and review the final report.
HOA Board of Directors