MOTION 1 2017-09-28
“All unit holders shall make payments in a manner approved by the Board. For greater certainty, the Board shall not recognize payments made by direct deposit to the Corporation’s bank account”.
Residents have unfortunately not been informed of matters of fact related to this issue:
- Spadina Condominium Corporation had for some 20 years, commencing in 1977, respected Generally Accepted Accounting Principles (GAAP) and Canadian condominium accounting guidlines, by using two separate bank accounts, both of course in the name of SPADINA CONDOMINIUM CORPORATION. One bank account was for the Operating Fund and another for the Reserve Fund.
- The following are general accepted guidelines for condominium corporations:
- The corporation must have at least two bank accounts, one designated as an operating account and one as a reserve account.
- Bank accounts must be solely in the name of the Corporation
- Unit owners since 1977, were provided with assurance that THEIR MONEY was being deposited into their OWN SEPARATE BANK ACCOUNT in the name of their Corporation, with no COMMINGLING OF THEIR FUNDS with other condominium corporations.
- However, the Board has permitted the commercial owner’s property management company to ignore responsible and generally accepted guidelines, which has in turn resulted in unit owner funds being deposited in the bank account of the commercial owner’s management company. at How much are we paying for a commingled account shared with many others, versus the fees paid for our Spadina Corporation private account which is not being permitted for use! I would ask, WHAT RESIDENT WOULD NOT SEEK ADDRESS OF EACH OF THESE CLAIMS?
- Residents have therefore lost the assurance of security of their funds in their own private bank account under the name of Spadina Condominium Corporation. Their funds are now deposited into the BANK ACCOUNT of a McClocklin owned company.
- This McClocklin owned company, combines OUR RESIDENT FUNDS with many “other parties”. This is referred to as “commingling of funds” and of course opens exposure to liability. If one of these “other parties” becomes subject to a legal finding of liability, our resident funds obviously become subject to the resulting shared liability exposure.
- Our Auditor for many years, DELOITTE, advised our Board, that McClocklin’s insisted change to using a single COMMINGLED BANK ACCOUNT, would definately result in much more time spent by the Auditor resulting in a much higher audit fee. Deloitte’s review of this COMMINGLED ACCOUNT, took substantially more audit time than what had previously been taken when we had for many years, used our own two bank accounts in the name of our own Corporation. Residents should simply request of the Board, a copy of the commingled bank account statement from the bank, where resident funds are deposited. You will in turn, be truly enlightened as to why this is a very troubling matter.
Residents do not realize that our Board approved the return to a segregated bank account in 2009 in the name of Spadina Condominium Corporation. I personally have made direct online payments to this account since that time, fully knowing where my funds were at. These payments have been made very efficiently via online transfers which are more cost efficient than the current arrangement demanded by Colliers. It is apparent that McClocklin’s wish to have total control of resident funds by insisting upon resident deposits into their own bank account. Knowledgable residents will appreciate these facts and VOTE NO!