Yes, as our headline states, your board voted to contract with the same CPA who closes our books each month, to perform an audit on himself. To me it comes down to it being unethical, failure to secure a concrete outside audit/opinion, a poor business decision, and a failure to utilize our assessment dollars in the best interests of Wedgefield. Quite frankly it looks corrupt!
Corrupt is a strong word, but I stand by it. It comes at a time that residents have brought me information regarding our financial asset handling by the board, that they don't want discussed on the blog regarding questionable practices, and actions of the board. As they talked to me about it, they were afraid of back lash from this board. My advice to them has been to take their issues in writing to the board (let me publish their letters - minus their names, and the board response), stand up during resident comments of the monthly board meetings - ask questions - demand answers. Most don't follow through. These residents have told me that individual board members have verbally presented a questionable circumstance to them, didn't find the situation to be ethical, and would take care of it. Yet, these board members fail to stand up, and bring it to the board table. Why residents, don't you?
With that said, and your board feeling no demonstrated need to operate openly, honestly according to our governing documents, I found the move by the board to contract with the same CPA who does the books monthly, to audit the same books questionable. You maybe surprised to know that every time I prepare to write on the blog, that I question my motives. I question in looking at a topic whether I can be sued for my writing. So on this issue, having friends outside the association who had worked with audits in their work, I put a quick simple survey on FaceBook, and sought their work experienced opinions. I got 10 responses very quickly. Here's the backgrounds of the individuals who answered: 2 non profit executive directors, one human resource director, a mid level auto industry manager, finance office worker, manager in major industry, former political aide, a police officer/first responder, etc. All have been involved as volunteers on community boards, and lived and worked in 5 states.
Was my genuine concern motivated by Wedgefield politics, or would it be a concern of reasonable, experienced business people? Here is the actual survey, and the quick results. I removed the names of the responders for their privacy.
I'm conducting a survey that I hope you will help me with. A simple yes, or no will do, but if you have comments that will help. My home owners association has contracted with the CPA that does our financials monthly, to do the annual audit. Is it legal, and ethical for the same firm that performs the accounting month after month, to perform the annual audit?
1) No.... what's the point then? What's the checks and balances and accountability.
2) It may be legal, but it doesn't provide any checks and balances . Anyone with half a brain would see the conflict. The audit is useless and they should save the money.
3) Could be like the inmates running the jail, but is an audit legally required?
4) I'd never do it. You would never have an unbiased, second party opinion.
5) No way!
6) No conflict of interest no check and balance.
8) No
9) It's a conflict!
Doesn't look to me like my concern is "Wedgefield politically motivated"! Looks to me like prudent, responsible people would question this move. Why aren't you? Why aren't individual board members who are holding information surrounding our questionable finances and our governance speaking out from the board table. In regard to the board I think they are afraid to challenge in our behalf, and some are just plain corrupt.
