2015 Audit

Fox Hill Homeowners' Association

www.foxhillhomeowners.com
Olympia, Washington

Hawk near Fox Ridge Lane, January 2012
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2015 Audit Report
Fox Hill Homeowners Association
Homeowner auditor committee:
John Stockman, Ralf Schreiner and Mikel Costello

Submitted June 17, 2015
Click HERE for printable pdf version

Audit Committee and homeowners,

The Board of Directors for the Fox Hill Homeowners Association has received and understands the recommendations and outcomes of the audit that was conducted for 2015. We have made the following updates, changes, modifications, or have taken no action on the following listed items noted by the audit committee and have provided a description of the action(s) as follows.

1. Monthly statements should be the cover sheet to each month of financial transactions and should be followed by 1) bank statements, 2) any invoices in transaction order, 3) payment receipt (proof of payment for the invoice), 4) any additional correspondence regarding the transactions, and 5) copies of receipts issued for payments made to the HOA (i.e. dues). It is recommended that a 3-ring binder (or equivalent organizing folder) be used for each fiscal year; not using the same book for multiple fiscal years. Any financial transaction regarding the HOA should possess (at a minimum) an invoice to be paid, proof of payment, receipts for income, and an itemized record of where it came from. This should be the fiscal practice of the Fox Hill treasurer. Monthly statements could easily provide summaries of itemized transactions.

 Sonya will take this into consideration for future reference and for future audits. Almost positive, if it were not for her health issues, the financial documents would have been more organized and better prepared for the audit team review.

2. Upon review of the financial records, there was no itemized list(s) of payments received for homeowner dues or positive inventory/issuance/payment for front gate remotes. We recommend that a list be maintained of all homeowners that can reflect their payment of dues to the HOA treasurer and may be combined with information regarding their front gate remote purchases/inventory. This list could reduce the amount of documentation by combining information and remain updated every month as changes occur. No action(s) have been documented indicating that correspondence has been sent to those households concerning late dues.

A list of all homeowner dues receipts and those unpaid at the time, were provided at the annual meeting. The process for obtaining dues from those who have not paid, has been informal and via direct contact from the treasurer and/or other board members. Larry will now incorporate tracking gate remote distribution into his director duties.

 3. It was identified that a missing invoice/receipt for $273.74 on 3/16/14 should be tracked down. It is recommend to the treasurer to contact the vendor (Best Buy) and ask for the appropriate paperwork (proof of payment) to validate this expense which they can easily do.

It is my understanding that this Best Buy receipt for the treasurer’s Quick Books copy has been found, shown to the audit committee and will be included with all of the other receipts for future audits. It has been the practice of the board for the treasurer to have a specified allowance that is built into and approved for the budget (HOA Admin), where she can purchase any necessary supplies to perform the treasurer duties.

 4. It is requested that a separate section of the annual “binder” is maintained to allow for the retention of additional quotes for provided and already agreed upon services be included. Documenting the quotes received would provide context, contact information, and price analysis for future HOA boards.

 
The board will now include all present and future quotes for agreed upon services in a separate section of the annual binder for future reference.

5. We recommend the board develop and submit for consideration and approval by the entire HOA, a bylaw that defines the parameters of the board’s ability to make expenditures on behalf of the HOA without formal vote of the association members. (if this has not already been addressed or noted in the CCRs or current business practices). Having at least 2 (maybe 3) people that have the ability (and limitation) to spend monies is important in the case of emergencies and audit purposes, but keeping this privilege to a select few is also important (from an auditor's and homeowner’s point of view).

In order to make this addition to the bylaws would require a formal process likely started at the next annual meeting, if still deemed necessary. It is and has always been the board’s practice to have only a few members of the board who have the ability to make expenditures out of HOA funds. Currently Sonya (Jeff P. was able to, but has been removed) and now Dana/Larry (Both added as a result of Sonya’s health issues) are the board members with this ability. All current HOA expenditures (no matter what the cost) obviously go through the treasurer, but are approved by the entire board.

Sincerely, 


Bill Hanson, President
Bill's E-mail


Kelly Gregerson, Vice President
Kelly's E-mail

Dana Townsend, Secretary
Dana's E-mail

Sonya Ybarra, Treasurer
Sonya's  E-mail


Larry Ganders, Director
Larry's E-mail





Goldfinch at Fox Hill

Goldfinch at Fox Hill
Spring, 2015



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