Southampton Bylaws, Article XIII, Section 3 requires an annual audit of the books and records of the Association.
During this audit, do look into the checks (#1711, #1771, #1818) made out to former Board members Handley and Thompson.
Is there an invoice to the Association for these disbursements?
Is there documentation to support the payee's claim against the Association?
Is there lawful Board authorization (see § 55-79.75.C), noted in the minutes of Board meetings, for these disbursements?
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CMS sent my note to the Board instead of the auditor. The following is my letter to the auditor sent on March 14, 2008:
VIA FAX TO (703)796-6878
Daly, Hamad & Associates
Attn: Daniel H. Hamad
1037 Sterling Road, Suite 204
Herndon, VA 20170
Dear Mr. Hamad:
RE. AUDIT OF SOUTHAMPTON CONDOMINIUM
I would like to draw your attention to three checks written by CMS Services for which there is not the required paper trail: #1711 for $3000, #1771 for $4085, and #1818 for $1800.
There is no invoice from Handley to the Association (the invoices are to Handley), and there is no claim or justification for reimbursement filed by Handley with the Association.
As you probably know, § 55-79.75.C. of the Virginia Condominium Act states: "No contract, motion or other action adopted, passed or agreed to in executive session shall become effective unless the executive organ or subcommittee or other committee thereof, folloWing the executive session, reconvenes in open meeting and takes a vote on such contract, motion or other action which shall have its substance reasonably identified in the open meeting."
There is no record of a Board vote on these disbursements.
I am a concerned homeowner at Southampton. I setup and managed the Operations Review Division of the Iowa Commerce Commission that was responsible for financial and management audits of Iowa's electric, telephone, and gas utilities.
I look forward to your drawing attention to these issues in your audit report.
Sincerely,
*
Enver Masud
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