Question:
Why hasn’t the SCSH BOD hired an outside accounting firm to handle the forensic audit? Asocia should not be allowed to conduct this audit.
Answer:
Hello,
Thanks for writing and the Board will consider everyone’s comments as this process unfolds.
Since you are a lawyer, you will know better than most, that we also need to be responsible and listen to legal counsel and release the information that doesn’t put the HOA in any type of liability. Every investigation will require some degree of confidentiality so that the HOA is protected. We also don’t want the possibility of guilty parties knowing how we are proceeding for obvious reasons. But I assure you, as the process unfolds, information will be released to the homeowners when appropriate. As you know, it is usually not appropriate to release too much information in the beginning of such an investigation, but as time allows more will be forthcoming.
Since Associa has already stated the HOA will be made financially whole, it is not unexpected they would also want to investigate the damages. This audit costs the HOA nothing. We will receive all information about the audit and we will also be reviewing the material. The Board can then decide on how to proceed once knowing all the facts presented at the time. I do believe the more information I can have the better, that is never irrational but prudent in making informed decisions. There is also a motivation on the part of Associa to work diligently with our HOA to make good on concerns, because from a business perspective they too have a reputation to protect. Let’s also not forget that they too were damaged. If Associa performs well in this situation that will benefit them as a management company, so we need to evaluate all aspects of the situation. I agree that doesn’t mean to blindly follow a single course of action, but it does mean to be open to all information and evaluate carefully.
The Board has legally notified all companies and insurance carriers to insure any claim may be filed if necessary.
The Board has requested information on an independent audit so we will have that information in the future as to costs and benefits.
I do think we need to have a little patience to let the process take the time it needs, and then all of us will have more and complete information to make an informed decision in our best interest. We are proceeding down the correct path at the moment to obtain as much information as possible so that the HOA is protected. We then will rely on all the wisdom of many to reach a decision on how to proceed. It is early in the process so let’s take a moment and gather the information we need so we all understand how best to proceed in the future.
There was information relayed to homeowners that it appears the amount of money involved is less than $100,000. You can read the resume of the auditor on line in the resident only section. Let me know if you have further questions, but I assure you, these and all comments will be evaluated by the Board as we go forward.
Thank you,
Kim Fuller
President