It is most unfortunate that at our recent AGM, resident questions received either total rejection or no reasonable response.
Two major and fundamental issues of the AGM were intentionally avoided by the Board and unfortunately residents as well who chose to remain silent as to the following:
- Intentional and unlawful concealment of commercial owner use of corporation funds to pay for personal improvements and operating expenses within their condominium. A resident review of invoices for only one fiscal year, revealed well over $25,000 in illicit use of corporate funds for the personal use of the commercial owner at the expense of residents. Following this review, the Board has continued to adamantly reject any further resident review of financial records and refuses to comment of on this $25,000 plus in illicit expenditures as well as thousands more in inappropriate spending. The evidence is very clear.Residents can see this evidence for themselves via a further resident review of the financial records of the Corporation. Do residents really wish to turn a blind eye and continue to support the intentional concealment of this very serious and illicit conduct?
With many thousands of dollars in illicit expenditures revealed and accompanied by clear source document evidence in a review of just one fiscal year, how much more might be revealed in an open and transparent review of prior and subsequent fiscal periods since 2015?
- 2. Board rejection of our Bylaws and the Condominium Property Act requiring unit owner approval of Reserve Fund expenditures. More the $2 million dollars of reserve fund expenditures have proceeded without the required unit owner resolution approving these expenditures or any responsible funding plan.
As a result, with no such funding plan in place reflecting responsible preparedness for coming Reserve Fund expenditures, residents face very troubling news as revealed in the attached documents. The coming Reserve Fund Study due in March, will confirm a very serious Reserve Fund deficit as a result of fund management neglect. Based upon current data illustrated in the attached Reserve Fund Analysis, ADDITIONAL residential fee contributions of $300 to $400 per month over the next four years will be necessary to fund this projected deficit and rebuild the Reserve Fund. Why was this not disclosed by the Board at the recent AGM? Not very good news for those who care about the resale value of their condo.
No responsibly minded resident should accept any further neglect of these very troubling issues and no professionally qualified auditor representing resident interests should either. Financially troubled condo corporations usually get into these situations as a result the neglect of responsible planning of both expenditures and funding which has been clearly demonstrated here.
Should residents continue to choose silence as their response to the above, it will be to their own detriment. Please review the attached information which will provide you with some interesting facts which should help in understanding this serious situation.
Dennis Tofin #603