Q: Noticed a change to our HOA balance sheet. Can an asset on the balance sheet be liminated without any discussion or vote
In 2009 the HOA obtained a court ordered judgement again a homeowner. The HOA showed it on the balance sheet ever since as an uncollected asset (in part as a reminder it would be in the estoppel when the house was sold). That is until this Feb when the "new progressive" board removed it from the balance sheet. Can they just do that? Never notified in writing or at the Feb meeting that this change was made. Don’t know who (attorney/account/treasure/etc) made this decision.
A: It was not proper to remove it from the accounting because it is still an uncollected asset. I would be curious to know why the HOA has not collected on the asset and if it has properly preserved it's right to do so by filing the judgment in the county records (not the court records) and with the State of Florida. The issue you will face in holding the HOA accountable is that you might find you would need to hire your own HOA attorney to represent you. There are no state agencies regulating HOAs (except for elections and recalls) in the State of Florida. Florida has jurisdiction over condominiums but not HOAs.
A: You do not need a vote on what an accountant determines to be a proper accounting practice. They probably wrote it off as bad debt. Maybe they believe that the bad debt keeps the home from being marketable. Or, if they collect that amount in the future, it will be added to the receivables. What's the issue?
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