Audit of All Books and Records of Homeowners' Association and Ridge Management

Audit Performed During Week of March 13, 2006

We made a special two week long trip to Deer Ridge starting March 13, 2006 with the specific goal of performing a comprehensive audit of all books and records of both the Homeowners' Association and of Ridge Management.  The interference and delaying tactics of the Board in providing us the detailed financial statements and general ledgers has made us VERY suspicious of what they may be trying to hide. 

Click Board Response to see how they responded to my below email notification to audit.  Click Disclosure to see my response to their constraints placed on us during our audit.

As you will note on the Audit Response page, Vic's approach was to ONLY give us the bare minimum that they thought they could get away with based on their attorney's opinion.  When we were at the property, Joe did give us those items that Vic graciously allowed us owners to see.  While we are still reviewing the documents received, we have not yet been able to reach any conclusions since we were not given all the information requested.

Email Notification to Board of Our Intent to Audit

•  Adequate office space for two of us to perform a comprehensive audit.
•  Access to EVERY record and EVERY computer file that relates in ANY way to the ownership and operation of either the HOA and/or RML. for calendar years 2004 and 2005  This will require us having access to one of the networked computers at the Club House or the capability for us to log into the HOA / RML network with FULL access privileges with our own notebook computers. 
•  This audit will include, but not be limited to, FULL access to:
  • All bank records, checks, check registers, expense reports and cash ledgers
  • General ledger and detailed financial statements showing EVERY transaction
  • All correspondence with and between HOA or RML accounting firms and attorneys
  • All mailings and all emails to, or received from, any or all owners including all ballots and proxies
  • The list of all owners and their addresses as provided explicitly in Section 1 of Article XVII of the bylaws
  • All payroll and personnel records along with any and all employment contracts
  • IRS tax forms and filings of all types for both HOA and RML
  • All bids and proposals received that relate to an outside management company taking over the duties of RML
  • All bids and proposals received that relate to installation of a property wide wireless hot spot
  • All bids and proposals received that relate to cell phone tower installation on our property
  • All bids and proposals received that relate to any outsourcing of any function provided by RML
  • All minutes and notes regarding every Board or committee meeting
  • All billings made to all owners for any and all services, fees, etc.
  • Etc.
•  We will require complete access to the reservations computer in order to complete the Excel Spreadsheet that had been previously sent to you and Joe.  Since it was never completed by RML, we will need access to complete the form ourselves.  Or, if you prefer, someone in RML can complete the form prior to our arrival.  It should only take an hour or so of effort.  A copy of the Excel file is attached to this email and is also available at the www.DeerRidgeOwners.com website.
•  We will require all of the above to be stored on a CD-ROM(s) where possible.  Our intention is to take as much of the information we are owed into our possession for even more detailed analysis at a later date.
•  We will require the use of the on site photocopy equipment at no charge to us so that we can copy any and all documents to take as much of the information we are owed into our possession for even more detailed analysis at a later date.

•  The previously requested Acrobat print versions of the detailed general ledger and financial statements.
•  As much of the above data already saved to CD-ROM for us
•  As much of the above data that is not in digital format already collected and organized for us
•  Completion of the Excel Spreadsheet

Click Board Response to see how they responded to my notification to audit.