February 4, 2013
TO: Mr. Edmund LaFrance via email:
elafrance@wmdouglas.com
FROM: Madeline Y. Claveloux
RE: Invoice & Payment Procedures - WPA Board and William Douglas Contract
CC: WPA Board, Wedgefield Examiner
Please place a copy in the correspondence file and distribute to the WPA Board
I wrote the Board and asked to review the invoice and payment files for the William Douglas WPA contract. I received the following from the WPA Board Secretary. “Note that we do not receive monthly invoices from WDM. The income statement shows an auto payment for the monthly fee as per the contract. You may notify Edmund at William Douglas regarding any specific invoices in question, that are not listed on the income statement.”
This response left me with a number of questions that perhaps you, or someone on the board can answer. I was surprised that this is the method utilized to pay the management company. Please send me a report of the monthly auto payments from the start of contract through January 2013. If there are variances over or under $2525.00, please provide the detail.
At a glance with auto payment, it appears that no one on the board signs off approving the expense. Is that true? If not, and there is sign off by the board, please tell me how that is accomplished, and where the records are held. Who signs the checks?
My questions are generated by a number of concerns. I’ve reviewed the contract.
WDM should compose, type, and mail eight (8) letters per month. Yet, I just reviewed the correspondence file from October - end of December 2012 and for the most part, resident letters go unanswered by WDM, or the board. I didn’t see WDM response letters attached. In rare instances, there were board responses attached.
WDM will assist in securing project bids and in contract development. Yet, WDM secured bids for a reserve study, a contract was developed, and signed by the WPA president, and then payment stopped on the check to the contractor. Rumor has it that the president signed a contract different from the one approved by the board. What happened? As a resident I couldn’t review the RFP because the board said your office issued the RFP. Did the board review the document? If so, who? Please provide a copy of the RFP.
WDM is to assist ARC. When a resident wrote you about a “failed to maintain” property. You asked the resident to take a picture. Later after you failed to respond, a board member advised the resident that it was no worse than a lot of properties here. What assistance has WDM provided to ARC and how many attempts at solving issues are in progress, or completed?
WDM is to prepare and present to the Board of Directors monthly financial statements, including agents fee, and render monthly statements of receipts and disbursements. The contract with WDM was to commence on May 2, 2012. I attend most monthly board meetings. Almost monthly, it is reported that the treasurer has spent hours with you. Yet, they further state that more adjustments to the reports are in progress. In the mean time items such as gazebo maintenance appear, something we don’t have. During the January meeting, the treasurer used the term erroneous in describing some items contained in the report. Shouldn’t the WPA be receiving customized, accurate reports?
WDM is to perform a number of mailings each year. Which mailings have you prepared outside of the assessment mailing? Why weren’t you involved in the annual meeting mailing?
WDM agent shall file necessary court action involved in the collection of delinquent assessments, using legal counsel designated by Board. Have you been filing the necessary court actions?
WDM receives a portion of the late fees collected on delinquent accounts. How do you invoice and receive payment for those fees? What sign off does the board have for those payments?
After reviewing the contract and files allowed by this board, I am left feeling that we are paying a steep fee for nothing more than accounting & reporting services that have not been customized to meet WPA reporting needs, and a bill collection service. The records I would normally be allowed to review as a resident are unavailable because according to the board, you have them. It also could appear that you are receiving payments for services that haven‘t been rendered according to the terms of the contract, and the board may have removed themselves from the authority of review, sign off of acceptance of a job completed per the contract, while providing easy access to payment.
I have written you in the past. At one point you emailed me stating that I would receive an answer in a designated period of time, and never was answered. This came after you asked me to resend my request. I have been directed to write to you. I’d appreciate a complete response.
