Smoke Screens and Unanswered Financial Questions

A smoke screen is defined as a ruse designed to disguise someone’s real intentions or activities. The board prints statements in the newsletters like “if spending is watched we should have a positive cash flow”, “frivolous legal actions”, “people such as this”, “threats of further litigation”, “not factually vetted”, “illegitimate”, and other ridiculous statement to cause distractions and sway the attention of the reader away from the truth. In addition, their comments and personal attacks are spiteful with intent to fuel division amongst neighbors.

Questions and complaints sent to the board by many of your neighbors remain unanswered and summarily dismissed as “nonsense” or “unintelligent questions”. I have already asked questions about money that is not accounted for, but after seeing the 2025 budget mailer, the hairs stood up on the back of my neck. An article written earlier this year pointed out that the reserves funds have dropped from 99% to 61% over the course of a few years. Based on the actions of this current board, the reserves will fall well below 50% by the end of 2025 unless something is done. But that is not all! The 2024 budget included in the 2025 budget mailer was NOT THE REAL budget approved for 2024.

Budget Account2024 Budget Approved 11/2023Actual Expenses paid for through 12/2/2024Altered 2024 Budget Changed in 11/2024Unanswered Questions

(Funds Unaccounted for are highlighted in blue)
Landscape & Supplies$8,000$3,904$16,808What expenses are being paid for in December to warrant adding almost $9,000 to the budget? That is almost $13,000 more than was spent through 12/2/24.
Facilities & Maintenance$10,000less then $5,000$17,546What was purchased with the additional $14,500?
Contingency$11,000$3,634$55,684Where on earth is this $52,050 being used for?
Payroll$85,000$51,774$85,000The board changed other budget items. Why not this one? Why was John and Lorenzo only paid 2 weeks severance? Lorenzo worked for FOSM over 30 years!
So then what happened to the $43,226? It wasn’t given to our employees.
Landscape Contract$0———>Total amount for Landscape is the SAME for 2025 as the total amounts for employees, landscape and maintenance in 2024. How is this saving us money?
Reserves Allocation$150,552$112,468This was cut by more than half WITHOUT board discussion and vote. Where did the $38,084 that was allocated from our HOA dues go if not to the reserves?
Prior Years Loss$60,801$30,401This amount was set per state law to pay back losses incurred from previous boards run by the same men. This payment was stopped in July and “moved”. Where did the $30,400 go? When is this being paid back?
Operating Owed to Reserves$21,630$10,815This amount was set per state law to pay back money borrowed from reserves in 2023. This payment was stopped in July and “moved”. Where did the $10,815 go? When is this being paid back?
Account2/28/2024 9/30/2024Unanswered Questions
#2060 Reserves Due/From Operating (Balance Sheet)$5,053.76-$137,100.93 (negative)What caused this $142,154.69 change?
#5105 Electric (Income & Expense Report)$18,250.88 Actual YTD-$29,845.09 Reported YTD (negative)Why were rebates entered in the account multiple times when they should $0 entries? This one “error” makes it look like FOSM has income in September when we should be reporting a $30,000 loss.
Maintenance Assets and ToolsDISAPPEARED. No inventory or record of disposition. Most of the tools were purchased 2022-2023.

It is up to owners to ask questions of the board and keep an eye on the finances. It is our responsibility to perform oversight. Not just for this board, but all boards. Our life savings and assets are at stake. The value of our homes is at stake. The health of our neighborhood is at stake. Perhaps it is time more people ask questions.

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1 Response

  1. David Urban says:

    Well said. We are facing huge liabilities in the coming years. This board is crippling our finances.

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