open records findings discussed with nma 01-14-2014
TRANSCRIPT
Regency Oaks Community
Corro’ll Driskell, Regency Oaks Member
Dennis Brazil, Regency Oaks Member
January 14, 2014
Why are we here?
Due to Discrepancies in the October 2013 Budget presented at the Annual Meeting
We questioned the insistence of the NMA to continue the terms of the 2013 Advisory Committee into 2014 against the wishes of the community by denying the right to vote.
Investigation of the 2011, 2012 & 2013 Petty Cash Accounts as a result of the aforementioned budget discrepancies.
Preliminary examination of the previously listed years revealed possible fraud, theft and ethics violations on the part of 2011–2012 & 2012-2013 Advisory Committee and committee chair members.
Failure of the Advisory Committee, NMA and Board of Directors to fulfill their fiduciary responsibilities to manage and monitor a true and accurate budget.
Actual vs Budgeted
What we’re alleging?
Advisory Committee actively discouraged review of the community financial records by delaying response to open records request(s).
Advisory Committee & NMA actively discouraged homeowners from requesting an audit by not following voting guidelines.
NMA failed to require petty cash reports, invoices and receipts to be submitted monthly as required by the governing documents for a number of years.
The illegal and unethical management of Regency Oaks financial resources has caused substantial harm to our community.
Deliberate attempts/actions were taken to deceive and misappropriate community funds.
NMA and Board of Directors has failed in their fiduciary responsibilities to the Regency Oaks Community a number of years.
Petty Cash Report - January 2011
January 6, 2011 January 16, 2011
NOTE: The 2011 Year doesn’t include any Petty Cash Reports or Receipts for Expenses.
Petty Cash Report – February 2011
February 14, 2011 February 26, 2011
Why didn’t NMA request the petty cash reports and expense receipts as required?
Why weren’t petty cash reports and receipts for expense not provided to NMA as required?
Petty Cash Report - April
The frequency of checks to JCS increased from 2011 to 2013.
Petty Cash Report – April 2012
Check for $2000 for Michael Cost for Regency Oaks
Petty Cash Report – January 2013
Consistent Mis-Reporting on Clubhouse Rentals Jan. 2013 Rental
J.C.S. is Michael Salandy
Check for JCS. Signed by Michael
Clean-up Party for JCS. Charged to Regency Oaks
Invoice Dates vs Check Dates
NOTE: Consistently, checks were written before invoice dates throughout 2013.
Regency Oaks Paid Twice
NOTE: This is another example of missing records and unauthorized payments.
Who is Michael Salandy?
2011 Summary2011
TOTAL PAID OUT TO JCS AMOUNT MONTH$100.00 JAN$171.00 FEB$212.00 MARCH$405.00 APRIL$420.00 MAY$445.00 JUNE$280.00 JULY$340.00 AUGUST$340.00 SEPTEMBER$100.00 OCTOBER$160.00 NOVEMBER$220.00 DECEMBER
TOTAL $3,193.00
TOTAL PAID OUT TO X-MANN ENTERPRISESAMOUNT MONTH
TOTAL $0.00
TOTAL PAID TO MICHAEL SALANDAY AMOUNT MONTH$197.41 JULY
$17.08 AUGUST$425.50 OCT
TOTAL $639.99
2011 Report
TOTAL PAID TO MICHAEL SALANDY AND HIS COMPANIES $3,832.99
Total NSFs for the Year $0.00
2012 Summary2012
NON SUFFICIENT FUND FEE (NSF) AMOUNT MONTH$25.00 MARCH$36.00 APRIL
$272.00 DECEMBER
TOTAL $333.00
TOTAL PAID OUT TO JCS AMOUNT MONTH$160.00 JAN$160.00 FEB$320.00 MARCH$605.00 MAY$280.00 JUNE$400.00 JULY$280.00 AUGUST$280.00 SEPTEMBER$280.00 OCTOBER$100.00 NOVEMBER$900.00 DECEMBER
TOTAL $3,765.00
TOTAL PAID OUT TO X-MANN ENTERPRISESAMOUNT MONTH$175.00 JUNE
$75.00 JULY$150.00 AUGUST
TOTAL $400.00
TOTAL PAID TO MICHAEL SALANDAY AMOUNT MONTH$2,000.00 APRIL
$160.00 APRIL$92.80 AUGUST$68.00 AUGUST
$172.24 DECTOTAL $2,493.04
2012 Report
TOTAL PAID TO MICHAEL SALANDY AND HIS COMPANIES $6,658.04
Total NSFs for the Year $333.00
2013 Summary2013
NON SUFFICIENT FUND FEE (NSF) AMOUNT MONTH$34.00 APRIL
$204.00 JUNE$204.00 JULY
$34.00 DECEMBER
TOTAL $476.00
TOTAL PAID OUT TO JCS AMOUNT MONTH$605.57 JAN$280.00 FEB$400.00 MARCH$280.00 APRIL$340.00 MAY$580.00 JUNE$690.00 JULY$400.00 AUGUST$725.00 SEPTEMBER$550.00 OCTOBER$340.00 NOVEMBER$340.00 DECEMBER
TOTAL $5,530.57
TOTAL PAID OUT TO X-MANN ENTERPRISESAMOUNT MONTH$300.00 JAN$125.00 MARCH
TOTAL $425.00
TOTAL PAID TO MICHAEL SALANDAY AMOUNT MONTH$113.71 JAN
$40.23 FEB$126.17 JUNE$108.01 AUGUST
$44.50 NOVEMBERTOTAL $432.62
2013 ReportTOTAL PAID TO MICHAEL SALANDY AND HIS COMPANIES $6,388.19
Total NSFs for the Year $476.00
Total Amount paid to JCS and XMAN over a 3 years period, is approximately $18K.
Policy
Advisory Committee Handbook
Financial Policies & Procedures
Why we care?
Restore integrity to our Advisory Committee and committee chairs.
Restoration of all funds to their rightful accounts to allow for reserves to be built and maintained.
Why you should care?
If proven to be true, NMA’s reputation will be damaged significantly by this failure to execute their fiduciary responsibility and raise further questions in other communities that they manage.
Internal management of this situation will minimizes negative exposure to the NMA name and brand.
Minimize further financial impact on NMA and the Regency Oaks community’s homeowners if outside actions become necessary.
What do we want?
An immediate cease and desist order issued to J.C.S, X-Man Enterprises (Joyce Salandy, Michael Salandy) and any associated businesses.
An immediate suspension from the current Advisory Committee, and any and all committees that are currently occupied by members, from the 2011-2012 & 2012-2013 Advisory Committee, Messengers Alberta Taylor, Lisa Smith, Joyce Salandy and Michael Salandy until after the completion of the investigation. If found to be guilty of criminal and/or ethical violations we expect prosecution as allowed to the fullest extent of the law as a deterrent to future similar activity.
The Advisory Handbook will be updated to state that, “All persons running for the Advisory Committee and any offices on HOA committees must not have been convicted of or plead no contest to financial improprieties to hold office.
All checks written should have a minimum of 2 signatures regardless of the amount as required by general accounting practices.
Based on sufficient evidence of improprieties by the Advisory Committee, the Board of Directors and NMA and their failure to properly fulfill their fiduciary responsibilities, we now request a full independent audit of the 2011, 2012 and 2013 budget at NMA’s expense with oversight by Messenger Corro’ll Driskell.
Article IV Officers
Our Options
Report the activities to the Media.
Ask a Judge to appoint a Receiver over the Regency Oaks Community
Regency Oaks Community
Corro’ll Driskell, Regency Oaks Member
Dennis Brazil, Regency Oaks Member
January 14, 2014