I've listened to the tape of the April 16 WPA board meeting. I'm not going to transcribe every word of each report. I'm reporting what I heard to the best of my ability. Please listen to the tape yourself. TRANSCRIPTION IS UNDERLINED.
The Treasurer's Report breaks down into three items.
(1) QUICK BOOKS:
Almost immediately, DeMarchi brings a motion to the table. He says Kathy is taking a class in Quick Books and makes a motion to approve up to $100 to cover the cost of the online class and the purchase of a book. Cline seconds the motion. McBride asks what Quick Books is? DeMarchi says we use it for our accounting. McBride asks if we are using it now? DeMarchi says that is what we've been using and Kathy has been working the last several weeks to get us all updated. DeMarchi goes on to say that he'll provide a little history. He says that back in 2010 we had an accountant who did us a great disservice and we paid him almost $800/month in accounting services and he provided us reports that were not generated out of Quick Books. Then he says, "What we've found out is that over the years these reports have been allowed to accumulate inaccurately, so now we are doing the updates and getting all the files up to date." McBride, "We need Kathy to have this experience because?" DeMarchi, "Because she does the majority of the work here on the accounting system." Cline says, "She's using Quick Books, now we have the system. It's just that it can be as sophisticated as you want it. There are things she already knows ...the basic procedures. There are more up to date...because they are always updating you know and improving the system and she needs to know more technically. Most businesses do use Quick Books. It's very common for retail and wholesale." DeMarchi, "and non profits". President Walton chimes in, "That also will make it a lot easier when Al ...to generate our reports." Cline, "payroll, checks". McBride, "What you're saying is between now and...Kathy will be able to do all our financial....." Cline, "Not necessarily". DeMarchi, "Later on we're going to talk about an accountant, under new business." Cline, "But they'll be in sync because most accountants..." McMillin, "Will this Quick Books also be compatible when we do our annual audits and that sort of thing?" DeMarchi, "Yes"
The motion regarding the expenditure for Kathy's training and book, passes.
COMMENTS:
Residents, this board is using the numb them, and then continue to dumb them down approach. I haven't gotten to the end of the tape yet, but did they try and sell you a BRIDGE, by the end of this meeting? What do I mean? First, they obviously decided behind closed doors to bring the accounting totally in house. These discussions NEVER OCCURRED at the board table. Why? Why do you allow it? Second, they dribble little pieces of information so they feel safe in saying, "I think we covered that." Remember, the only indication that we had that "things were a changing", was that in March DeMarchi said he had a job description - not a request for proposal, for the "accounting function". He called it first reading, NEVER READ IT, NEVER POSTED IT ON THE WPA WEBSITE as required by the BYLAWS. Then DeMarchi moves to inaccurate "dirt throwing" tactics, saying in 2010 an accountant did a disservice, charging almost $800/month, and these reports have been running and running. Let's get it straight. In 2009, after the in house TOPPS board and staff quit and left the association high and dry, a list of needs was developed, three CPA PROPOSALS reviewed, a CPA was hired. If reports have been running recklessly since then (I have visions from the movie with Dolly Parton and the copy machine that went wild), and Armistead ignored them, McMillin and his "accountant????" ignored them, Cline along with McMillin's "accountant????" and the management company ignored them, and Kathy was watching all this and ignored them, this is just irresponsibility, or a fake scare tactic! What ever it is, it paints a picture of a need for our accounting to go out of house, and a real CPA. Look at the history of dysfunction from the transitions that occur in treasurers and "accounting functions". NO ONE HAS TO SELL QUICK BOOKS, THEY JUST HAVE TO PROVIDE A CREDIBLE "CPA FIRM" TO DO OUR WORK WITH OUR LARGEST FINANCIAL ASSET.
President Walton chimes in that it will be easier for Al to do reports. We haven't had consistent reporting since the CPA left us. None of the treasurers have been happy with what they produced. They've all changed the format, claimed their idea was the greatest and the best. Cline chimes in and speaks about payroll and checks. Remember when everything is housed with the accountant they can't just write a check. Remember when we had the road mess and the treasurer claimed he had to write a contract without a total amount of contract, to have any contract, because two board members were pressing him to write the check? During the same period of time an audit revealed that board members were being reimbursed for expenses, without receipts. McMillin announced the findings during an annual meeting. When I was talking to DeMarchi about it he told me I was one of the people (I had volunteered on a Xmas project.) who was reimbursed without receipts. I told him it wasn't so. I could describe the receipts and I had given them to Kathy. She went through some things and handed them to me. Yup, they were the receipts I described. They weren't attached to anything and we had been audited and it was noted. This is good? The clandestine step your board is about to take, removes some of the checks and balances.
Finally, why is DeMarchi making this $100 motion? As a board member, he can spend a $100. I'd like this kind of OPENESS with an at the board table discussion, before the board decides to bring our accounting in house. You listen to the tape yourself, but I believe I heard him say, "Kathy IS TAKING A CLASS" and later something about she has been working on Quick Books for weeks! All -- after the fact. How much open discussion was there anywhere? McBride doesn't seem to have been informed. He is a board member, maybe just not in the inner circle. Hmmm, no one else on the board really questions this move. Don't we elect board members with equal power, who should be provided equal information to make INDEPENDENT voting decisions at the table in our behalf? Oh I forgot, they bring $100 issues to the board table and decide big items in closed meetings.
We'll get back to "the rest of the story" regarding the "accounting function", when we review the tape for new business. That is when DeMarchi told McBride that the rest would be spelled out. DeMarchi, "Later on we're going to talk about an accountant, under new business." Basically, he is telling a fellow board member, "you wait, and I'll tell you what wa decided, and just maybe we didn't bother to include you."Want to place a bet? I'll bet you that we don't have a CPA!
(2) DE MARCHI TAKES RESPONSIBILITY FOR THE SIGN
Remember the sign that appeared at the front gate over the Easter weekend that advised residents that assessments were late. Thank DeMarchi. He claimed responsibility for it during the April meeting. He said, "We found that William Douglas had made some inaccurate mailings. OK, they had sent assessment mailings to peoples' lots and the other thing was real distressing was that we found that of all the people who hadn't paid their late fees at the time that this came about, 37% of the people who were delinquent under 2013 fees did not have a working phone, or a phone number to contact them, here in the office. Ok, I take responsibility for that sign. I thought it was a way to get people to pay up. We got a lot of flack over that." He goes on to say that he called all past due 2013 residents. This resulted in several paying. He goes on to give a run down of how many owe, how many should go to lien, etc. Cline called the sign tacky.
COMMENTS:
We won't spend a lot of time on this. I agree with Cline the sign was tacky. DeMarchi's comments about the sign and William Douglas, just don't make sense. Rather, they appear to be more blame, in an effort to make one look good. It misses the boat completely. First, if William Douglas did send inaccurate mailings, who provided them the records to do it? Do you think they just pulled information out of the air? Garbage sent to them, garbage out! How did DeMarchi call EVERY DELINQUENT 2013 resident, if 37% didn't have working phones? If the records we sent from our office to William Douglas were not correct, why should we trust this board to bring accounting in house?
(3) DE MARCHI INFORMS US THAT HE HAS TO REVISE THE 2013 BUDGET
DeMarchi, "I would like to call the Finance Committee to meet the first of May and submit a revised budget at the May Meeting, based upon the fact that we will no longer have a management company and other significant changes to the budget."
COMMENTS:
Sometimes, it is necessary to revise a budget. I have no problem with that. I do have a problem with the fact that due to all the behind closed door tactics of this board, I lack trust in what we will get, and how it really will help us.
