Unbeknownst . . .

It’s probably fair to say that 2025 will not go down in the history books as one of Big Canoe’s finest. Instead the year was fraught with controversy, a tarnished election process, disregard for our governing documents, ever increasing secrecy and dismissal from our elected leadership and the accumulation of over $15 million in debt. This is not a bashing of our leadership. It is a recitation of fact.

And even throughout the holiday season, much has taken place as new information continues to come to light since the previous post on this site. (1) https://bcmatters.org/budgetgate/

A windfall for the Association . . .

With the application and possibility for the Employee Retention Tax Credit kept under wraps since early 2024, it was certainly a pleasant surprise to learn of the $1.7 million IRS payment. Needless to say, without that unexpected windfall, property owner capital assessments may have increased exponentially in 2026 with even the POA Treasurer emphasizing that capital assessment increases were deferred due to receipt of the payment. (2a)

Note: Using the same math found in the GM’s New Years Day eblast, (3) capital assessment increases might have been as much as $45 without the unexpected IRS payment to help fund the 2026 capital budget.

In fact, the Director of Finance’s cash flow presentation and financial statements posted to the POA website, both reflected a $1.7 million transfer from the operating account to the Capital Fund during the month of October. (2b) (4)

However, according to recently posted finance committee minutes, management did not make the recommendation to transfer the $1.7 million, and the committee did not concur with that recommendation until November 18^th. (5)

And what does this mean?

It means either that the October financial documents were falsified to include a transfer that had not yet taken place or management transferred the funds prior to obtaining the required concurrence of the Finance Committee.

And while some may view this as an insignificant transgression, others might reasonably wonder how many other financial entries have been manipulated throughout the year.

Keep in mind that Mauldin & Jenkins does not audit the monthly financial statements posted to the POA website. Instead, they audit only the final year end results after months of adjusting entries have been made by management.

Note: For the record, this writer alerted a previous board to many accounting irregularities such as this only to be met with threats of legal action from the Association’s legal counsel. (6)

But then there’s more . . .

While celebrating the receipt of the ERTC payment at the November open board meeting, both management and the POA Treasurer failed to mention that Mauldin & Jenkins now recommends filing an amendment to the 2021 990T tax return. This amendment will result in additional accounting expenses to be accrued in 2025. (5)

Though somewhat unclear, the amendment is presumably required as a result of the ERTC payment.

One might ask if this amendment will also require a restatement of the audited financial statements?

And will the amended return be posted to the POA website? If so, when?

Perhaps answers to these questions will be forthcoming.

Note: The actual application for the ERTC was prepared by the Association’s independent accounting firm, Mauldin & Jenkins for an additional fee of approximately $75k.

Continued murmurings . . .

Although this may be old news for some, subsidies of the food and beverage operation continue to be a topic of conversation between friends and neighbors. And with leadership acknowledging in the recent Voice of the Community survey  (7) that the operation is currently being subsidized approximately $15 per month, it is most important for everyone to recognize exactly how that $15 ($180 per year) is being used.

Specifically, $15 per month of each household’s assessment is actually being used to supplement the cost of the meals and bar tabs of those property owners and guests who visit the clubhouse.

This message should be openly shared and broadcast throughout the hills and valleys of Big Canoe.

• • The $15 “subsidy” does not pay for the facility;

• • or the cleaning crew;

  • or the interest expense on the clubhouse portion of debt;

  • or the clubhouse manager’s salary;

  • or the taxes and insurance on the facility.

Instead, those expenses are charged to various operating departments rather than the food and beverage operation and consume additional assessment dollars totaling at least $25 per month ($300 per year) per household.

New trademark registrations and a conflict of interest? . . . 

As noted in several previous posts on this site, (8) after executing the trademark purchase agreement in April 2025, the Association immediately began applying for additional trademark registrations in order to expand the enforcement capabilities of the Association to include additional goods and services such as wearing apparel, golf paraphernalia, and “marketing the community nationwide to prospective new residents and property owners”.

With seventeen new applications for trademark registration submitted to date, seven have been recently registered; eight are pending registration; and two are in limbo.

Of additional interest comes the realization that immediately upon the December 16^th registration of five new trademarks, the Association’s attorney and law firm that prepared the trademark applications as well as the original purchase agreement was removed from record and replaced with the attorney and law firm that represented Mike Rhodes and Big Canoe Brokerage during the April 2025 purchase agreement negotiations. (9) (10)

How odd is that?

This change certainly screams conflict of interest if not at a minimum, poor business judgment.

Note: No documentation has been found in any minutes of the Association denoting the approval of this change in legal counsel.

And then there’s that secret negotiation between the elected board and the developer  . . .

As originally noted in a previous post on this site, (11) https://bcmatters.org/lines-in-the-sand/ minutes from several closed door board meetings referenced discussions between the developer and the elected board regarding a potential trademark license agreement.

When questioned via Ask the POA, leadership failed to address several questions while citing their common disclaimer that the information “does not fall within the definition of the books and records that Property Owners are authorized to review per the governing legal documents of Big Canoe Property Owners Association, Inc. nor under the Georgia Nonprofit Corporation Code”. (12)

Notably, after the Ask the POA inquiry, any references to these negotiations went underground and never surfaced again until the POA President’s announcement at the December 2025 Annual Meeting. (13) At that time the President stated that an agreement had been reached between Big Canoe Company (developer) and the POA wherein the developer would pay the POA a total of $60k over time for use of the trademark with $10k already paid upfront.

Although some highlights were shared, other “terms and conditions” of the license agreement were deemed confidential.

Note: It remains implausible to this writer that as the original owner of the trademarks, Big Canoe Company (developer) did not retain rights of usage through the transfer of ownership to Big Canoe Brokerage and subsequently the POA.

Let’s get real here now . . .

More importantly, Big Canoe Company is the community’s developer as defined in the governing documents at Article I, Section 1(k) of the 1988 General Declaration of the Covenants and Restrictions. (14)

There can be no confidential agreements between the elected board of directors and Big Canoe Company as the rights and powers of the developer are clearly outlined in the governing documents. No more and no less.

In fact, Article IV, Section 7 of the 1988 covenants  references “the rights of the Company, its successors and assigns, to own, use, operate, develop, construct, maintain, market and sell properties at Big Canoe . . .” (15)

Thus it is inconceivable that any legal agreement would be required to enable the Company to continue using the name “Big Canoe” in its business affairs.

Given the secrecy, could the developer have been granted additional concessions unbeknownst to the property owners and stakeholders of the Association?

Further, no documentation can be found granting the elected members of the board any authority to negotiate enhanced concessions, terms and conditions and/or private deals with the “Company” without complete transparency and likely approval of the property owners.

All that said, the content of this agreement to include all terms and conditions must be made available to all property owners immediately.

This writer will continue to insist that leadership produce copies of this agreement and urges every property owner to do the same.

Pausing for now . . .

There is so much more to be said given the entire election debacle along with the standard discussions of financial matters yet not enough room on these pages. Stay tuned for upcoming updates either by subscribing for an email notification or checking back frequently.

But for now, each property owner might want to reflect on the above examples of leadership’s continued manipulation of financial information, secrecy, and disregard for our governing documents. Anything that can be done individually or collectively to challenge the current status quo might prove worthwhile.

And do remember. This is our Big Canoe.

. . . . .

Should you believe the information found in these posts is important, please continue to share with your friends and neighbors wherever possible. And as always, feel free to contact me directly 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) “Budgetgate”, bcmatters.org, December 1^st, 2025, https://bcmatters.org/budgetgate/

2)   Big Canoe POA Board Meeting, November 20^th, 2025, 18^th, 2024, video on Youtube at a) 41:45; b) 20:42 https://www.youtube.com/watch?v=t02C60Z5XKs

3)   “Welcome to 2026 from your POA” , January 1^st, 2026, GM’s New Years Day eblast,   ($1.7 million/$112k*3)

4)   October 2025 Financial Package, Balance Sheet, Pg. 2; Statement of Cash Flows, Pg. 4; and Statement of Operations and Restricted Funds, Pg. 6 (POAwebsite>login>POA>financials>2025>October)

5)   Finance Committee Meeting Minutes, November 18^th, 025 (POAwebsite>login>POA>Committees>Finance>Minutes>2025>November)

6)   “Unfinished business”, bcmatters.org, July 3^rd, 2023, https://bcmatters.org/unfinished-business/

7)   Voice of the Community survey

8)   “An albatross”, bcmatters.org, May 27^th, 2025, https://bcmatters.org/an-albatross/

“An albatross updated”, bcmatters.org, May 31^st, 2025, https://bcmatters.org/an-albatross-updated/

“Lines in the sand”, bcmatters.org, August 19^th, 2025, https://bcmatters.org/lines-in-the-sand/

“Fairy tales”, bcmatters.org, September 5^th, 2025, https://bcmatters.org/fairy-tales/

9)   USPTO Change Address or Representation Form

10)   Big Canoe Brokerage Change Address or Representation Form

11)   “Lines in the sand”, bcmatters.org, August 19^th, 2025, https://bcmatters.org/lines-in-the-sand/

12)   POA President’s  AskThePOA Response#17759

13)   December 5^th, 2025 Annual Meeting, Video at 13:30 (POAwebsite>login>POA>meetings>videos>2024>annual meeting)

14)    Article I, Section 1(k) of the 1988 General Declaration of Covenants and Restrictions.

15)   Article IV, Section 7 of the 1988 covenants