CONFORMANCE WITH BYLAWS
The Bylaws of the HOA address various aspects related to accounting, Officer responsibilities and the implications of dues payment, which is voluntary, on Member rights. This review included the Bylaws requirements, changes made in June 2005, and, to the extent possible from available records, the adherence to the prescribed procedures and authorities applied by the Officers during the audit period. A key source of information was the Board and General Meeting minutes, of which available records are not complete. We note that the Officers changed throughout the period by elections and vacancy replacements, and so, were not the same individuals over the audit period.
All references relate to sections of the Bylaws, which are available on the HOA website at http://neighborhoodlink.com/evergreen/epehoa/ under Community Pages. Capitalized terms are defined in the Bylaws.
Treasurer
Section 2.10 describes the duties of the Treasurer, who, when elected, is an Officer of the HOA. This most important of Officers handles and accounts for all of the funds of the HOA, which can be many thousands of dollars that belong to the HOA Members, and is required to report to the Members regularly. Section 2.01 requires that all Officers be elected, not appointed, including to fill vacancies (Section 2.05).
The current Treasurer is not elected, and is therefore, not an Officer of the HOA Board. The Treasurer was appointed in August 2006 (meeting minutes, online) by other Officers to fill a vacancy, which is not consistent with the Bylaws requirements. While this condition does not reflect upon the performance of the Treasurer, it does make that position unofficial with respect to voting as an Officer and the presence of a quorum at Board meetings where HOA decisions are made on behalf of the Members. Prior to appointment, the Treasurer acted in that capacity for several months and although three General Meetings have occurred where the Treasurer could have been elected and made an Officer, that was not done.
In addition, the Bylaws allow for the Treasurer to be covered by a surety bond paid by the HOA. Currently, no surety bond for the Treasurer exists.
It is recommended that the Board strictly adhere to the Bylaws, especially with respect to the election of Officers, including holding Special Meetings when vacancies are created so as to not disenfranchise the Members of their proper right of elected representation. It is further recommended that a surety bond cover the Treasurer.
Dues Authorization
Section 6.05 requires that HOA Dues, which are voluntary, ?“shall be in an amount as established from time to time by the Voting of the Members.?” The current Dues of $50 per Owner appear to predate the audit period, but no record of their authorization by a Voting of the Members was found.
It is recommended that the Board take the opportunity at the next Meeting to conduct a Voting of the Members to authorize the Dues amount, as required by the Bylaws. And, given the current state of the accounts balance, the Board might consider increasing the recommended Dues amount.
The Bylaws of the HOA address various aspects related to accounting, Officer responsibilities and the implications of dues payment, which is voluntary, on Member rights. This review included the Bylaws requirements, changes made in June 2005, and, to the extent possible from available records, the adherence to the prescribed procedures and authorities applied by the Officers during the audit period. A key source of information was the Board and General Meeting minutes, of which available records are not complete. We note that the Officers changed throughout the period by elections and vacancy replacements, and so, were not the same individuals over the audit period.
All references relate to sections of the Bylaws, which are available on the HOA website at http://neighborhoodlink.com/evergreen/epehoa/ under Community Pages. Capitalized terms are defined in the Bylaws.
Treasurer
Section 2.10 describes the duties of the Treasurer, who, when elected, is an Officer of the HOA. This most important of Officers handles and accounts for all of the funds of the HOA, which can be many thousands of dollars that belong to the HOA Members, and is required to report to the Members regularly. Section 2.01 requires that all Officers be elected, not appointed, including to fill vacancies (Section 2.05).
The current Treasurer is not elected, and is therefore, not an Officer of the HOA Board. The Treasurer was appointed in August 2006 (meeting minutes, online) by other Officers to fill a vacancy, which is not consistent with the Bylaws requirements. While this condition does not reflect upon the performance of the Treasurer, it does make that position unofficial with respect to voting as an Officer and the presence of a quorum at Board meetings where HOA decisions are made on behalf of the Members. Prior to appointment, the Treasurer acted in that capacity for several months and although three General Meetings have occurred where the Treasurer could have been elected and made an Officer, that was not done.
In addition, the Bylaws allow for the Treasurer to be covered by a surety bond paid by the HOA. Currently, no surety bond for the Treasurer exists.
It is recommended that the Board strictly adhere to the Bylaws, especially with respect to the election of Officers, including holding Special Meetings when vacancies are created so as to not disenfranchise the Members of their proper right of elected representation. It is further recommended that a surety bond cover the Treasurer.
Dues Authorization
Section 6.05 requires that HOA Dues, which are voluntary, ?“shall be in an amount as established from time to time by the Voting of the Members.?” The current Dues of $50 per Owner appear to predate the audit period, but no record of their authorization by a Voting of the Members was found.
It is recommended that the Board take the opportunity at the next Meeting to conduct a Voting of the Members to authorize the Dues amount, as required by the Bylaws. And, given the current state of the accounts balance, the Board might consider increasing the recommended Dues amount.
