Monthly Archives: October 2015

How Many Sets of Financial Statements Does the Board Keep?

More than one apparently. The financials that are posted on the HOAMCO/RVS website for RVS residents are labeled “public,” which means that there is another private version that probably presents a more honest version of income and expenditures.

Go to the RVS website:   and click on Community Documents to see the financial statements. You must log in.

If you download the financials you will see that starting in February of 2015 the statements are labeled “public version.”

January 2015                                                                                    75296775january_2015_-_website.pdf

February 2015                                                                                    752147876february_2015_-_public_version.pdf

Same for March through August.

The fact that there is a private version that contains data not in the public version is disturbing. There is no reason for there to be two different statements; residents are entitled to see all financial data.

Not a Unique Situation

Fraud and embezzlement are widespread in HOAs around the country because HOA boards do not answer to anyone but themselves. See these two examples from Florida and Arizona:

Note that in neither case was a criminal case filed or money returned to the HOAs. Florida is one of the few states with an agency that regulates HOAs and even there the state did not deal with the embezzlement of funds, just the fact that the resident manager was not registered.

Currently there is an RVS audit being conducted by the accounting firm of Swain & Grieco. The accuracy of the audit will depend on which set of financial statements the Board provides the firm. My guess is that they got the “public” version. We can assume that  the accounting firm will most likely find that everything is running smoothly and correctly.

At the September Board meeting I asked the Board if they would be providing year-to-date income and expenditure to residents at the annual meeting. Not one Board member would answer my question. They remained silent. A board that handles residents’ money ethically would provide the documentation. A board that is misusing funds would not.

Folks, this is your money and you have a right to know how if the Board is spending it. You also have a right to know why there are two sets of financial statements. What is the Board hiding?

Attend the annual meeting on November 17 and ask the Board members to provide an explanation.


Send an e-mail to if you wish to participate in the full Homework Group. The meeting on Saturday, October 17th  9 a.m. to 1 p.m. in the Jemez Room at SFCC is open to everyone, even if you can’t attend the other meetings.