Sincere appreciation is extended to those who may have encouraged management to reply to this writer’s unanswered Ask the POA tickets submitted weeks ago. Thus, soon after the previous post, (1) https://bcmatters.org/whitewashed-part-two/ replies were received although several were in need of significant followup. In a quest to be fair, each of those responses follow along with a brief discussion when warranted.
First, a correction is in order . . .
Apparently this writer misspoke when it was stated that it appeared that $41k in architectural and engineering fees for the now defunct postal facility project had finally been written off.
Instead, these costs remain on the books hidden in the work-in-progress totals. According to management’s AskThePOA Response#20163 , it is considered “premature” to write off the expenses at this time due to a new postal facility being rated high on the Voice of the Community Survey.
Keep in mind these costs were incurred in 2023 and 2024 for a rendering and engineering specific to a facility adjacent to the package porch as well as a subsequent location at the North Gate. However, after encountering “escalating costs” and “unexpected challenges”, the following statement was made by the POA President at the June 2024 open board meeting.
“The board has made the decision to not proceed with a new postal facility at this time. We will continue to explore other possibilities that may surface, but a brand new postal facility is not in our current plans due to other priorities”. (2) https://www.youtube.com/watch?v=cmOr7cSd68k at 1:14:00
Perhaps Mauldin & Jenkins should be contacted for guidance regarding the appropriateness and application of GAAP in allowing these costs to remain on the books. (work-in-progress, i.e. – an asset account included in the POA’s fixed asset totals).
Ongoing legal fees . . .
As it turns out, the trademark business has evolved into quite an expensive venture arguably not even fully authorized in our governing documents. (3) That said, according to AskThePOA Response#20124 , legal fees for the first month of the new year totaled $17k with $10k attributed to defense of the various trademarks. Given that legal fees associated with the trademark totaled exactly $10k for each of two consecutive months, (December – January) this writer questioned whether an agreement had been executed with the firm to provide trademark defense at a predetermined monthly fee.
Unfortunately, management has been reluctant to respond to this follow-up question. (4)
Note: Regardless, keeping this in perspective, it appears that these ongoing legal fees may exceed routine fees billed by the Association’s corporate counsel as well as the fees due the Association’s independent accountants currently contracted at an annual cost of $45k. (5)
Clearly POA priorities have been shifted.
2025 Merchandise write-offs . . .
It was also learned via AskThePOA Response#20125 that merchandise inventory deemed unsaleable as noted by the General Manager in the January board meeting totaled $23k. It is unknown how long the merchandise remained in inventory prior to being written off.
As for that write-off of the Chimneys building . . .
The delayed response to AskThePOA Ticket#20162 was both incomplete (failure to answer all questions) as well as inaccurate as noted in this writer’s AskThePOA FollowUp#20162 to the AskThePOA Response#20162 .
Once again, management has been reluctant to provide a response to these simple but most important questions. Until such time that they do, one is left to only wonder.
Other capital projects and expenses . . .
Considering that abandoned capital projects have been allowed to sit on the books without being expensed or written off, this writer submitted an additional AskThePOA Ticket#20283 requesting an itemized list of all capital expenditures held in “work-in-progress” as of the 2025 year end. With those totals representing significant dollars on the Association’s balance sheet, it is important to understand the components of WIP at all times. For example, according to information found on the audited financial statements, work-in-progress totals for previous years 2021 – 2024 were $3.4 million; $1.4 million; $1.2 million and $8.3 million respectively.
Unfortunately, it is impossible to determine the 2025 totals for work-in-progress as management has once again failed to respond to this writer’s inquiries.
Absent any response from leadership, perhaps Mauldin & Jenkins will be encouraged to give all capital expenditures captured in the work-in-progress totals appropriate review upon their annual visit to audit the Association books.
Until then.
. . . . .
Should you believe the information found in these posts is important, please continue to share with your friends and neighbors wherever possible. As for those who 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 directly at thepcrosses@gmail.com for questions or further discussion. Meanwhile, take care and thank you for your readership.
Patricia Cross
10438 Big Canoe
References:
1) “Whitewashed: Part two”, March 14th, 2026, bcmatters,org, https://bcmatters.org/whitewashed-part-two/
2) Big Canoe POA Board meeting, June 27th, 2024, video on Youtube at 1:14:00 https://www.youtube.com/watch?v=cmOr7cSd68k
3) General Declaration of Covenants and Restrictions, March 1988, Article VII, Section Two, (POAwebsite>login>POA>governingdocuments>covenants>covenants1988
5) Board Meeting Minutes, September 28th, 2023 (POAwebsite>login>meetings>Minutes>2023>September28th)
It’s hard to imagine all the shuffling going on behind the scenes as the Board and GM try to justify expenditures and projections they’ve made. It appears answers aren’t forthcoming.
As property owners we should have access to all and truthful financial information, not spin. Meetings held behind closed doors create mistrust.
We can dig out of this deepening hole by hiring a professional management team with a solid track record of serving successful communities.
While board members and the GM feel they are serving the community well, evidence speaks to the contrary.
It’s past time for accountability and honesty from those we voted to represent us.