DECEIT, DISHONESTY & DISINFORMATION!
If you get a chance you can hear this with your own ears. The October Town Hall featured Greg Swenson, Board Treasurer, and 3 other board members. Near the end of the Town Hall, Forrest Quinn, former SCA Board Member and qualified CPA who also served on SCA’s Finance Committee, had an exchange with Greg Swenson, You can hear and see this as it is recorded , Access CHRONICLES of Monday October 23. There is a direct link.
In the exchange Greg Swenson did not deny that SCA has violated Nevada law and violated accepted accounting practices by failing to show in the SCA income statement the gross revenues of the Restaurant and the Expenses on separate line items. They net the numbers on one line item called Restaurant. For those that are not financial professionals that is like fingernails on a blackboard. Then Mr. Swenson disclaims responsibility by saying that the CPA approved it. He doesn’t say which CPA. I am guessing it is the CFO and she is just wrong. And it matters functionally as well as legally. And as you read further you will discover motive.
Worse yet was the disclosure by Swenson that the board granted WHG( manager of restaurant) an extension to submit their 2024 budget which was due August 15 to be delivered now by the end of October. Normally with that August budget submission the 2024 SCA budget would include WHG’s numbers for revenue and expense. But not this year.
As Mr. Quinn pressed Mr. Swenson, Swenson disclosed that the 2024 budget will include a “made up number” of a $200,000 LOSS. And that SCA has asked that WHG prepare a document that ties into the bogus number. Then prepare a second budget as to what they really believe. Listen and watch and hear it with your own ears. Just so wrong as to 2024 budget preparation. There is your motive. In 2024 for the restaurant the monthly numbers in budget comparisons to actual would be bogus. They chose to bury that fact. It was a cover up. Thank you Forrest Quinn.
What has happened to DON’T PASS GO! DO NOT COLLECT $200 and GO DIRECTLY TO JAIL? This is outrageous. Then at the 10/26 Board of Directors meeting CFO confirms this net accounting procedure that will be used for 2024. This is good cause for homeowners to reject the 2024 budget at the Ratification meeting but unfortunately it takes a 90% homeowner NO vote. Not going to happen. SCA desperately needs personnel changes as to who is in charge of accounting and financial and tax matters. The deceit, dishonesty and disinformation should not be acceptable.
Now let’s talk turkey! For Thanksgiving the Restaurant is going to sell Thanksgiving meals in a couple sittings served in the Ballroom. The Ballroom is not part of the restaurant. Are they intending to serve alcohol or ask that diners buy it in the bar and consume it in Ballroom? Any issues with City of Henderson Liquor license? Since the Ballroom is under the non profit SCA property tax entity could SCA’s non profit status be in jeopardy for using the Ballroom as part of the for profit Restaurant Business License? The Restaurant pays a separate property tax bill but that doesn’t include the Ballroom. Are SCA homeowners at risk? I don’t know but based on the ineptness of current personnel who seem to push ahead( Food and Beverage Policy at Anthem Center) until there is push back there ought to be concern. The Food and Beverage Policy got reversed with no monetary consequences but these property tax and liquor license issues don’t seem to be thought out or vetted. And there could be financial damage to SCA. Just not a lot of confidence in current governance to handle matters correctly.
Our governance at best is sloppy and at times violates the law and homeowners’ rights. Electing 2024 candidates with integrity and know-how who are willing to make the necessary staff personnel changes are our best bet.
Until next time….Robert