Post by lou on Jan 22, 2014 0:57:02 GMT -5
Glen Haven Owners and Residents,
I sent the attached letter dated December 11, 2013, to the Board of Directors to voice my displeasure with their disregard and non-response to two members' earlier requests to review minutes and financial documentation. Although I did not request those records, I too asked to see some contracts for which I have had no response. I am particularly concerned that the Board chooses to not have open meetings, post minutes, and ignores all requests for anything. I recognize that it took a lot of effort and persistence on Shauna's part to get access to the limited information that she did. She did an outstanding job and unfortunately identified several problems. She offered her expert services to help the Board through this and even suggested that they might want to contact other financial experts. There's always the "shout out" for volunteerism, but this Board chooses not to accept it when offered. My more in-depth concerns are expressed in this letter.
Wednesday, December 11, 2013
Dear GHPOA Board of Directors:
J. Thacker (President), E. Green (Vice President), M. Davis (Secretary), H. Sharrar (Treasurer), and Members -- R. Mihalik, D. Jewell, L. Cannon, H. Brown, G. Gillette, M. Mattes, and A. Blair
As a member of the GHPOA, I am writing this letter in regard to the November 8, 2013, letter sent to you from Shauna Johnstone and Ron Preuitt, former Board Presidents, concerning the financial management of the GHPOA fund. I have not seen the documentation on which Shauna wrote her letter; however, she shared a copy of the letter with me, which is the basis upon which I am writing. Please don’t interpret this letter to mean that I am against the Board because of the concerns Shauna raised, or earlier issues currently before the Board unrelated to those stated in her letter, or against any individual Board member. I am really concerned with the position that the GHPOA may find itself in if her analysis is not taken seriously and her recommendations are not addressed.
Of the documentation Shauna was able to review, she identified sixteen items as concerns, requirements, or deficiencies in the Board’s management of the funds received from the dues-paying members. These range from lack of meetings and documented minutes, lack of receipts for payments, a conflict of interest, lack of bids for services, to not preparing form 1099s, to name a few. A major concern is the GHPOA is not currently meeting Federal and State tax requirements, which can put the GHPOA’s tax-exempt standing in jeopardy with monetary penalties. As you know, Shauna had already provided excerpts from the IRS code for nonprofits in earlier emails and through the Glen Haven Forum. Also, the enclosed article by Brett Hersh, an Enrolled Agent with the IRS, published in the Martinsburg Journal on November 3, 2013, addresses proper tax reporting for small businesses. This article supports Shauna’s statements that businesses are required to file form 1099s for those whom they pay in excess of $600.00, and that unincorporated vendors, contractors, and casual laborers who receive over $600.00 from a business in any given year are required to disclose this income on their personal/business tax returns. Neither a business nor an individual is excused from these requirements and there are stiff penalties to both for not meeting them.
As do Shauna and Ron, I, too, would like to see the Board be transparent with the membership concerning Board actions. Shauna noted there were no documented meetings and recorded minutes; that all business was handled by email. I agree that up-front and personal, regular meetings should be held. We have resident/member addresses, a bulletin board, the Glen Haven Forum, and personal email addresses available to announce dates and agendas of upcoming meetings. One or all of these media could be used so that those members and owners/residents who choose to attend can do so. In all likelihood, few if any would attend, but it would let the community know you value their involvement.
Continuing on the topic of transparency, I would like to know the Board’s rationale for moving GHPOA Board records from Glen Haven premises to the Board attorney’s office, which prevents ready access for information that members wouldn’t need to request if the Board had announced meetings, posted minutes, and otherwise been open with their activities. In doing this, the Board raised its own red flag, which is reason for anyone to question how the Board is managing and spending funds. Until this past year, records have been kept in Board officers’ homes where meetings were held, as it is often necessary to have materials readily available for association business. Of course, nothing prohibits the Board from engaging the services of an attorney and providing him/her with documents in order for him/her to render an opinion or provide proper guidance, etc. on a matter. Further, nothing requires that records be located in Board officers’/members’ homes, but with use of any repository, there can’t be unreasonable restrictions preventing members from access to them.
Thus, I am asking again why you determined it necessary to move all records (many of which are public information and others that don’t bear any relevance to the rental issue for which you initially hired the attorney) to the attorney’s office instead of another more acceptable venue for easier access. Did you obtain a price comparison with other places for storage only, since member review time should not be included, and if so, where and how much? Did you look at places for storage on Glen Haven premises? I am requesting a copy of any and all bids. Since the attorney’s office is the Board’s current repository with a gatekeeper, do you have a contract separate from the Board’s legal matters with a breakdown of costs to the GHPOA fund for this attorney’s storage, the fee for the attorney to make them available when requested, and the fee to allow members to review them? I am requesting a copy of the contract and fee schedule. Along with being inconvenient and inaccessible, this doesn’t appear to be a prudent use of GHPOA funds since there is no direct or indirect benefit to the GHPOA membership.
I am not trying to cause dissension or to point fingers, but to let you know that I, too, as an owner and a long-term, dues-paying member, am concerned with how funds are spent and documented. I am concerned whether funds will continue to be available for really necessary projects and expenses, such as future road maintenance. Although I own and live here, I am not “wedded” to Glen Haven and for the most part don’t care what others do as long as I am not affected and it’s not illegal or immoral, but I don’t want to see bad things happen to good people either. I don’t want to see a loss to any homeowner because the Board knowingly chose to ignore laws and regulations or because funds were spent unnecessarily.
Lastly, of eleven Board members, there has not been a single letter, email, telephone call, or home visit acknowledging Shauna’s and Ron’s letter. Over one month has passed since it was sent. They are not trying to interfere or usurp your authority. Instead, several problems have been identified and they have offered their assistance to help you close the gaps. Please consider their offer and meet with them. This is particularly important to address the form 1099 issues. A status update with what has been done to date would be a great start. Since some of you are retired and others may be off work during the holidays, a meeting between Christmas and the New Year may be an ideal time. When you schedule the meeting with Shauna and Ron, I also request to be notified of the date, time, and place so that I can be present as well. My mailing address is 27 Connie Avenue, Harpers Ferry, WV 25425. My email address is louthom3@comcast.net and telephone number is 304-876-7077. I am also expecting a timely response to the concerns, questions, and requests for documentation that I raised in this letter. I await your reply. Thank you for your consideration.
Sincerely,
(Signed-LouThompson)
Lou Thompson
Enclosure
cc: Shauna Johnstone, Ron Preuitt
I sent the attached letter dated December 11, 2013, to the Board of Directors to voice my displeasure with their disregard and non-response to two members' earlier requests to review minutes and financial documentation. Although I did not request those records, I too asked to see some contracts for which I have had no response. I am particularly concerned that the Board chooses to not have open meetings, post minutes, and ignores all requests for anything. I recognize that it took a lot of effort and persistence on Shauna's part to get access to the limited information that she did. She did an outstanding job and unfortunately identified several problems. She offered her expert services to help the Board through this and even suggested that they might want to contact other financial experts. There's always the "shout out" for volunteerism, but this Board chooses not to accept it when offered. My more in-depth concerns are expressed in this letter.
Wednesday, December 11, 2013
Dear GHPOA Board of Directors:
J. Thacker (President), E. Green (Vice President), M. Davis (Secretary), H. Sharrar (Treasurer), and Members -- R. Mihalik, D. Jewell, L. Cannon, H. Brown, G. Gillette, M. Mattes, and A. Blair
As a member of the GHPOA, I am writing this letter in regard to the November 8, 2013, letter sent to you from Shauna Johnstone and Ron Preuitt, former Board Presidents, concerning the financial management of the GHPOA fund. I have not seen the documentation on which Shauna wrote her letter; however, she shared a copy of the letter with me, which is the basis upon which I am writing. Please don’t interpret this letter to mean that I am against the Board because of the concerns Shauna raised, or earlier issues currently before the Board unrelated to those stated in her letter, or against any individual Board member. I am really concerned with the position that the GHPOA may find itself in if her analysis is not taken seriously and her recommendations are not addressed.
Of the documentation Shauna was able to review, she identified sixteen items as concerns, requirements, or deficiencies in the Board’s management of the funds received from the dues-paying members. These range from lack of meetings and documented minutes, lack of receipts for payments, a conflict of interest, lack of bids for services, to not preparing form 1099s, to name a few. A major concern is the GHPOA is not currently meeting Federal and State tax requirements, which can put the GHPOA’s tax-exempt standing in jeopardy with monetary penalties. As you know, Shauna had already provided excerpts from the IRS code for nonprofits in earlier emails and through the Glen Haven Forum. Also, the enclosed article by Brett Hersh, an Enrolled Agent with the IRS, published in the Martinsburg Journal on November 3, 2013, addresses proper tax reporting for small businesses. This article supports Shauna’s statements that businesses are required to file form 1099s for those whom they pay in excess of $600.00, and that unincorporated vendors, contractors, and casual laborers who receive over $600.00 from a business in any given year are required to disclose this income on their personal/business tax returns. Neither a business nor an individual is excused from these requirements and there are stiff penalties to both for not meeting them.
As do Shauna and Ron, I, too, would like to see the Board be transparent with the membership concerning Board actions. Shauna noted there were no documented meetings and recorded minutes; that all business was handled by email. I agree that up-front and personal, regular meetings should be held. We have resident/member addresses, a bulletin board, the Glen Haven Forum, and personal email addresses available to announce dates and agendas of upcoming meetings. One or all of these media could be used so that those members and owners/residents who choose to attend can do so. In all likelihood, few if any would attend, but it would let the community know you value their involvement.
Continuing on the topic of transparency, I would like to know the Board’s rationale for moving GHPOA Board records from Glen Haven premises to the Board attorney’s office, which prevents ready access for information that members wouldn’t need to request if the Board had announced meetings, posted minutes, and otherwise been open with their activities. In doing this, the Board raised its own red flag, which is reason for anyone to question how the Board is managing and spending funds. Until this past year, records have been kept in Board officers’ homes where meetings were held, as it is often necessary to have materials readily available for association business. Of course, nothing prohibits the Board from engaging the services of an attorney and providing him/her with documents in order for him/her to render an opinion or provide proper guidance, etc. on a matter. Further, nothing requires that records be located in Board officers’/members’ homes, but with use of any repository, there can’t be unreasonable restrictions preventing members from access to them.
Thus, I am asking again why you determined it necessary to move all records (many of which are public information and others that don’t bear any relevance to the rental issue for which you initially hired the attorney) to the attorney’s office instead of another more acceptable venue for easier access. Did you obtain a price comparison with other places for storage only, since member review time should not be included, and if so, where and how much? Did you look at places for storage on Glen Haven premises? I am requesting a copy of any and all bids. Since the attorney’s office is the Board’s current repository with a gatekeeper, do you have a contract separate from the Board’s legal matters with a breakdown of costs to the GHPOA fund for this attorney’s storage, the fee for the attorney to make them available when requested, and the fee to allow members to review them? I am requesting a copy of the contract and fee schedule. Along with being inconvenient and inaccessible, this doesn’t appear to be a prudent use of GHPOA funds since there is no direct or indirect benefit to the GHPOA membership.
I am not trying to cause dissension or to point fingers, but to let you know that I, too, as an owner and a long-term, dues-paying member, am concerned with how funds are spent and documented. I am concerned whether funds will continue to be available for really necessary projects and expenses, such as future road maintenance. Although I own and live here, I am not “wedded” to Glen Haven and for the most part don’t care what others do as long as I am not affected and it’s not illegal or immoral, but I don’t want to see bad things happen to good people either. I don’t want to see a loss to any homeowner because the Board knowingly chose to ignore laws and regulations or because funds were spent unnecessarily.
Lastly, of eleven Board members, there has not been a single letter, email, telephone call, or home visit acknowledging Shauna’s and Ron’s letter. Over one month has passed since it was sent. They are not trying to interfere or usurp your authority. Instead, several problems have been identified and they have offered their assistance to help you close the gaps. Please consider their offer and meet with them. This is particularly important to address the form 1099 issues. A status update with what has been done to date would be a great start. Since some of you are retired and others may be off work during the holidays, a meeting between Christmas and the New Year may be an ideal time. When you schedule the meeting with Shauna and Ron, I also request to be notified of the date, time, and place so that I can be present as well. My mailing address is 27 Connie Avenue, Harpers Ferry, WV 25425. My email address is louthom3@comcast.net and telephone number is 304-876-7077. I am also expecting a timely response to the concerns, questions, and requests for documentation that I raised in this letter. I await your reply. Thank you for your consideration.
Sincerely,
(Signed-LouThompson)
Lou Thompson
Enclosure
cc: Shauna Johnstone, Ron Preuitt