WELCOME TO THE WELLINGTON GREENS HOME ASSOCIATION WEB SITE
THIS IS A REPORT FROM OUR ACCOUNTANT REGARDING FINANCIAL SAFEGUARDS IN PLACE AT WELLINGTON GREENS. Submitted January 17, 2019
Recently, a resident asked the Board of Directors what type of internal controls they had in place to protect the HOA funds that are collected and used for expenses from the 277 residents of Wellington Greens Home Association. I was asked to explain the measures taken to ensure that the funds are used appropriately for the benefit of all of the HOA’s residents and that the proper internal controls are in place. Here is a detailed explanation of the process currently used by Wellington Greens:
- Vendor bills are received, reviewed, and approved by Dan Riner.
- Once the vendor bill is approved for payment, the bill is given to the current board treasurer, Dick Vautravers, to issue a check to the vendor. The treasurer is in control of the checkbook at all times and keeps it in a secure and locked cabinet when not in use. There are three signers on the Wellington Greens checking account which are all members of the board – Jim Davidson, Carol Conway, and Dick Vautravers. If the treasurer is out of town, the checkbook is given to Don McIntyre who will then write the checks during the treasurer’s absence and request that either Jim Davidson or Carol Conway sign the checks. Upon Dick’s return, the checkbook is returned to him.
- The vendor checks are recorded on the check register and given to an independent accountant, Professional Accounting Services, on a monthly basis to enter into their accounting software. The accountants computer is protected with extensive security features and uses anti-virus software to protect the integrity of the information contained within the computer.
- The accountant prepares and mails the 277 resident dues statements at the beginning of each month using their accounting software.
- The accountant collects and records the payments into the accounting software and deposits the funds into the Wellington Greens checking account at Pinnacle Bank. The accountant does not have access to the bank account other than to make deposits into it.
- The accountant then requests a monthly bank statement from Carol Conway who has online access to the checking account.
- The accountant reconciles the deposits made and vendor checks written during the month against the check register and questions the Board regarding any vendor checks that vary from the regular, recurring monthly vendor bills such as electricity, water, recycling, and garbage disposal. This is not in any way an all-inclusive list as there are several monthly recurring bills.
- Any checks written to non-recurring vendors, examples of which are those vendors who perform services such as the construction of the maintenance building, the clubhouse remodel project, or extensive repairs are questioned by the accountant. However, in most cases, the board has informed the accountant that these expenses will be upcoming and gives the accountant an estimate of the total expense as well as the vendors who will be providing the services. The accountant will then request a completed Form W-9 from the vendor to be used for tax purposes at the end of the year.
- Once the bank reconciliation is completed and all vendor related questions answered, the accountant prepares five monthly financial statements which are given to the Board of Directors. These financial statements include:
- Year-to-date profit and loss statement with a comparison to the year-to-date budget
- Current month profit and loss statement
- Balance sheets which compares the current period end date to that of the same period in the prior year
- Year-to-date and current month profit and loss statements which compares these numbers to that of the same period in the prior year
- Current accounts receivable report of monies owed by residents at the time of the monthly board meeting
- At the end of each fiscal year, the accountant compiles extensive work-papers which tie out each balance sheet account. These work-papers are provided to Watts and Hershberger P.C., specifically James Watts, CPA, to review and then prepare the yearly tax return and sign a compilation report. The compilation is given to all residents at the annual meeting in October.
- The board treasurer prepares the upcoming fiscal year budget which is discussed at the annual meeting and provided to the accountant.
Each of these items insures that there are controls in place to safeguard the funds collected and expensed on the residents behalf – specifically the segregation of duties for the various accounting functions. Your Board of Directors want make sure that you feel protected against any type of theft that could possibly occur. If you have any additional questions or concerns, please feel free to reach out to me at 402-525-5383 or e-mail me at email@example.com.
Barb Geiger, CPA
dba Professional Accounting Services
RESULTS OF ASSOCIATION ANNUAL MEETING HELD ON OCTOBER 28, 2018
The annual meeting of the Wellington Greens Homes Association was held on Sunday, October 28, 2018, at Aldersgate United Methodist Church, 8320 South Street at 2:00 p.m. Steve Imes and Dick Vautravers were re-elected to their Board positions. The Board will meet on November 20, 2018 to elect officers for the new year. Many thanks to Jim Wharry and Allan Barber for agreeing to run for the Board.
The Board is looking for Committee volunteers to serve on the Finance, Architectural, Landscape, Long-Range Planning, Golf, Concrete and Social Committee. This is a great way to learn more about our community and meet other residents. See the November newsletter for more details.
Celebration of Wellington 50th birthday!
SHORT HISTORY: Wellington Greens was built between 1968 and 1974. It consist of 277 units which are home to 350 to 400 residents. There are twenty named courts which are typical of neighborhoods everywhere, but individual in nature. The grounds of Wellington Greens, including its 9 hole grass greens, par three hole golf course dazzles visitors with its wide assortment of mature trees and shrubs that are wonderfully maintained by a dedicated grounds staff. Townhouse owners only have to care for their small patios, the crew takes care of the rest. The population tends to be older, but there are working people, families with school-age children, singles and couples. Some neighbors gather for weekly card games at the clubhouse. The clubhouse is available to the residents for showers, parties, or most any kind of gatherings. The community is still thriving after 46 years.
DO NOT MAKE CHANGES TO YOUR UNIT WITHOUT PERMISSION
A number of residents have made changes to their units without permission from the Architectural Committee or the Board and have had to redo it to conform to the by-laws and covenants. Do not shingle or change trim or siding color without contacting the Architectural Committee or a Board member located under the “contact us” drop down. In most cases, you will be granted permission, but the covenants and by-laws that you were given when you purchased your unit explicitly state the style of roof and the colors of trim and siding. Also, according to the covenants and by-laws, you are not permitted to plant trees or add anything to the common areas.
Some Fall Pictures of Wellington Greens:
Some pictures of the Ground Hog Day Storm, 2016