A quick glance at the Mauldin & Jenkins audit of the Association’s “very clean” books reveals that food and beverage actually lost an astounding $721k in 2023 rather than the $656k disclosed to the community by management. (l) This is not okay.
Note: In addition to the $721k food and beverage loss, additional expenses totaling $361k are attributed to “clubhouse management”.
One must seriously wonder if our board of directors ever had any plans to accurately disclose the food and beverage losses to the community as they move forward with the unauthorized $7.68 million clubhouse renovation.
Other pivotal changes . . .
And as a result of this increase to the F&B losses along with other adjustments that took place even after the March 25th posting of the year end financial statements, both year end income AND property owner’s equity have been reduced on the audited financial statements. Still not okay.
Note: Perhaps management believes that the mere stamping of the word “preliminary” on the internal financial statements absolves them of all responsibility for accurate financial reporting to the community.
Meanwhile, any evidence of this anomaly has been eradicated on the POA website as the entire year end financial package posted on or about March 25th has been removed with nothing currently posted in it’s place. (2) (3)
And unfortunately, none of these changes were mentioned in the PR extravaganza known as the June 27th board meeting.
Obviously, the auditors/accountants and the property owners are looking at two different sets of books.
As for those food and beverage losses . . .
Losses of this magnitude can only be attributed to gross mismanagement or worse and should not be allowed to continue.
Further, it is most difficult not to surmise that the board of directors and management intentionally hid the information regarding these losses from the property owners in order to advance their clubhouse agenda.
That clubhouse renovation . . .
Given the unexplained and astounding food and beverage losses coupled with a 21% increase in cost above and beyond what the property owners approved in August 2023, it would be wrong and financially irresponsible for the board to proceed with the $7.68 million clubhouse renovation. And yet those are the plans.
Without belaboring this unpleasant news further, it is important to acknowledge that these posts and analyses are all for naught if the community fails to step forward to demand positive change and put a stop to the clubhouse renovation fiasco now.
That said, closing for now by echoing the opening message . . .
The food and beverage function actually lost $721k in 2023.
and
Our leadership never even bothered to tell us.
Pass it on.
. . . . .
Should you wish to see additional articles posted in the future, please subscribe for an email notification or check back frequently. And as always, feel free to contact me at thepcrosses@gmail.com for questions or further discussion. Meanwhile, take care, stay safe and thank you for your readership.
Patricia Cross
10438 Big Canoe
References:
1) 2023 Audited Financial Statement, dated June 27th, 2024, by Mauldin and Jenkins, a) Pgs. 3 – 7 (POAwebsite>login>POA>financials>AuditedFinancials>2023)
Note: Revenues @ $2,419,088 (pg. 4) less expenses @ $3,140,556 (pg. 5) = $721,468
2) Screenshot of financial page on POA website
3) December 2023 Financial Package, originally posted to the POA website on or about March 25th, 2024 retained in PDF format
With this new review of Clubhouse financial losses, what does the POA board or GM propose the $7+ million renovation to The Clubhouse will do to bring down annual losses? What is their realistic marketing plan to woo property owners to visit The Clubhouse regularly?
As always happens when a new or improved facility is touted with much hype, initially there will be an increase in those visiting The Clubhouse. After all, property owners will want to see what their “loan” bought. Fast forward 12 months…will the number of diners continue to grow or will the novelty wear off?
I was here when the “new Sconti” opened with a wonderful reception with groaning tables filled with gourmet delights. The honeymoon didn’t last long when food and service became disappointing.
Has there been a serious assessment of the problematic issues facing The Clubhouse? Perhaps addressing why staff turn over is so high or why so many chefs leave after a short stay? Stay away from the spin this time. That tale is old and ineffective. Fancy new digs won’t solve those problems. Being closed for a year won’t help either. Folks will find a new watering hole. I realize plans are in the works to set up temporary food service to replace The Clubhouse, but that’s not the same as having a Clubhouse that was once promoted as Big Canoe’s version of Cheers. Let’s keep enjoying The Clubhouse as a casual meeting place where good food and service is key.
Until the underlying issues facing our Clubhouse are resolved, things won’t change and we’ll be owing millions of dollars. Let’s fix what’s broken before adding more debt.
Recently the board and GM purchased new Clubhouse furnishings and dishes to upgrade the ambiance for those enjoying a meal. Has there been an increase in reservations or walk-ins since we spent many dollars for these upgrades?
Additional in depth evaluation is needed before more debt is taken on. Many property owners asked for a revote on Renew Big Canoe as the figures and projections changed. That request fell on deaf ears. Why?
Thank you for all you do. I have been a property owner for 38 years and agree that all of the problems could and should be done with a new Board and management team.
I’ve been a property owner for 23 years & I agree!
We’ve lived here full time for 28 years. The clubhouse restaurant/bar were losing $500k a year more than twenty years ago. Over the years POA management has hired a number of consultants whose goal was to figure out how to make the place profitable. Nothing worked.
Clubhouse dining and pub operations are loss-leaders. They will never break even, so we should stop expecting them to. As long as the overall yearly operating budget includes these losses, that’s all we can expect.
The only way the operation could ever be profitable is for more residents to regularly visit the place and eat a meal. I don’t see that happening, either. If you don’t visit the restaurant to eat at least twice a month, you have no right to complain about losses.
Also, the restaurant remodel isn’t for the benefit of the property owners. It’s just more window dressing to encourage people to move here. These kinds of expenditures are typically pushed very hard by the developer, regardless of financial impact to the people who own this place – us.
I agree, it will take increased use by property owners to add to The Clubhouse coffers. But the question remains, why don’t folks WANT to come to The Clubhouse? Unraveling that mystery makes good business sense.
Throwing borrowed money at our problem isn’t going to make it go away. Over the years we have hired consultants to figure out what we’re doing wrong to allow such enormous losses year after year. This doesn’t include recent losses due to missing inventory. That should never happen if there’s good day-to- day oversight.
When I was editor of Inside the Gates, I often spoke with some of these consultants as well as staff who simply threw up their hands in frustration saying The Clubhouse was a difficult place to work and they just couldn’t take it anymore. Tensions often run high.
This would lead one to believe inconsistent and poor management may be an issue. I’ve often heard Clubhouse employees say micromanagement runs rampant. If this is true, what can we do about it?
If losses have always been an issue and must be accepted as the cost of having a community place to eat, maybe we need to reevaluate what we’re doing and what can be done to change things.
In the 20 years I’ve lived in Big Canoe, so many suggestions have been implemented to cut losses. I remember one idea that included a fine dining experience with white tablecloths, professional flower arrangements on each table and elegant table ware. Friends and I tried out this concept one night and we were the only ones eating in the special elegant dining room. It wasn’t a fun experience at all. We felt like lepers!
Management also decided a high end wine cellar would encourage folks to come to The Clubhouse. That well appointed wine room is now used for something else. So much for exorbitantly priced wines! That certainly wasn’t a draw.
Sometimes I feel like the board and management act like a bunch of bored neighborhood 10-year-olds just sitting around when one kid jumps up and says, “Hey, let’s put on a play!”
Nothing about The Clubhouse appears to be well thought out. This includes money proposed to be spent on the Renew Big Canoe initiative.
The one idea that seems to work is keeping The Clubhouse as a fun place to hang out. The present interior of The Clubhouse lends itself to casual dining serving pub food. A visit to sports bars in the area show a full house with happy people. We can be that! The Veranda can be used for more quiet dining if preferred.
Maybe we should once again include outside weddings or events as a source of revenue. There were complaints that having The Clubhouse closed in part for these events excluded property owners from using The Clubhouse. If one wedding or event a month is a problem but would help add to revenue, people simply need to grow up!
A question- is Duffers included in The Clubhouse lost revenues? If so, what are those figures? If not, we might learn from how that little bistro is run.
I value the reporting provided by Patricia Cross and could not agree more strongly with Alice Eachus’ question about why a property owner revote is not necessary before plans are implemented. I think the by-laws require any expenditure of over 1 million dollars must specifically be approved by us (we the people, not the POA board) and since the scope of the work has significantly changed since the original “Renew Big Canoe” vote, a revote should be required. The general manager stated at the April board meeting that this would happen yet at the June 27 board meeting, the first question from a homeowner was will there be a revote and he was summarily answered “NO. The answer is no.” (See the verbal exchange on YouTube at the end of the board meeting.) Actually, I think any expenditure of over $300K should be approved by homeowners–one million dollars is much too high in my opinion. Is there a way to demand a change in our by-laws?
The POA board should be responsive to the people they represent yet everything seems to be a coverup. Patricia is right–this is not okay.
BTW, my husband and I would love to have dinner at the Clubhouse regularly but we cannot because there is no family bathroom available. Our concerns re having an accessible toilet area in the renovated clubhouse were dismissed when I wrote to “Ask the POA” in April and was told that plans were not final and changes could be made before construction. Change orders are expensive and I was trying to get consideration for ADA needs prior to the May submission to contractors. The latest artist renderings still do not include an accessible area that will accommodate a wheelchair and helper. Even entering the clubhouse requires extra assistance as the heavy door must be held open while I try to get a “running start” to “jump” the threshold to get inside. A rubber bumper slope at the transition is all that is needed.
Patricia, what can we do to help get things right? Can someone start a petition to make things more accountable and accurate? Is there a way to prevent our monthly assessments from being squandered on dishes and chairs while assuming new debt?