I've listened to the tape of the March 19th 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.
Treasurer, DeMarchi starts his report, as we've become accustom to for many months, telling us that some of the report is incorrect. Once again, we are in transition. (This time because of the management company having cancelled their contract with the WPA.) He goes on with the following information:
*2011 audit is complete. One item noted in the audit was corrected. The audit report included a statement that said there were no liens on WPA property. It was corrected because WPA property is collateral on the canal loan. Recommendations in the audit included the call for a reserve study and storage of WPA financial records from Quick Books be off site. DeMarchi noted that the reserve study is already in progress and that the auditor was unaware that the WPA has retained an off site service which downloads the information daily.
*Collections as of 3/14:
- There are 9 payment plans on past due accounts.
- 2 bankruptcies
- 3 notices out for service
- 1 account paid up in full
- 2 proceeding to arbitration
- 1 default judgment
- 3 WPA applied for default judgments
- 1 payment plan unacceptable to the board
- 14 owners are candidates for foreclosure next month. Letters will be sent.
- 66 owners unpaid for 2013
- 4 owners made partial payments
"DeMarchi states, "Search for an accountant has been started. I'm going to introduce later on, a job description for a new accountant ...for what we are looking for."
As DeMarchi is closing the report, Garrison says he wants everybody to be aware of the fact that the payable to First Federal is $91,000 and that means that in roughly six months, "it is all over", a little over a year ahead of schedule.
COMMENTS:
First, the board and DeMarchi should be credited for the close follow up on the old past due accounts and the complete reporting in this area of our finances. These steps have been a long time coming. Many past boards have failed to follow through in this area. Thanks board.
As for the 66 owners unpaid for 2013, that rests on the shoulders of this current board, particularly those that voted to change the policy manual, so there were no late penalties until after March 1st., with a payment due date of January 31. Would there still have been unpaid for 2013? Yes, but when you send mixed messages about your seriousness in collections, you condone this outcome.
I'm listening to the recording of the March meeting a little at a time. Right now I don't know how it all ends. At this point I am concerned when DeMarchi mentions that he has a job description for an accountant. Why? I fear they might be back to bringing everything in house again. I am concerned that we will end up with what we did in 2011 when McMillin changed the requirement for a CPA. They hired a person that didn't have the credentials in order to bring it back in house. What has plagued our reporting? The constant changing of how the reports look and what the current treasurer wants, which is often control. Remember, we have seen several treasurers over the last few years. Maybe DeMarchi misspoke and what we will hear later on the tape is that he has written an RFP for a real CPA to respond to. I'm not holding my breath, because I think this board who claims expertise in all things, is controlling and wants to bring the accounting in house in order to control.
