The only true wisdom is in knowing you know nothing. (Socrates)

We insert below a copy of the latest correspondence with one of the Homeowners which shows incompetence at its best from the HOA. Despite having 2 CA’s (Chartered Accountants) on the existing Board of Directors, the Community Association Manager uses the Cambridge Dictionary definition of Capital Works to justify why the MOI was contravened.

The Special Levy being charged is for several projects of a Capital Expenditure nature, WITHOUT being approved by the members. Whatever happened to the generally accepted Accounting Standards like GAAP IFRS, etc?

If not incompetence, then one can only assume it is willful intent to contravene the MOI, and push through with a decision to extract more monies from the unsuspecting Homeowners. We can use our imagination to guess why!

According to the Corporate Finance Institute (7th May 2022) “Capital expenditures refer to funds that are used by a company for the purchase, improvement, or maintenance of long-term assets to improve the efficiency or capacity of the company. Long-term assets are usually physical, fixed and non-consumable assets such as property, equipment, or infrastructure, and that have a useful life of more than one accounting period”. Interestingly, IAS 16 (International Accounting Standard) has a similar definition.

Residents, we are clearly being taken for fools and that is why the HOA can throw the dictionary at us! This is disingenuous to say the least.

© Pecanwood Corruption Watch