DUMB AND DUMBER!
Before I even start please forgive me if I get too harsh. Because my career was primarily focused on business operations from an administrative and financial perspective I am going to comment on what I call THE REJECTION OF A GREAT IDEA! And this current board majority is totally responsible. They are the Dumb and Dumber board.
During the 2023 Board of Directors election cycle then candidate Rick Ernest proposed that possibly a hybrid form of governance be considered where the accounting function would be outsourced. I don’t want to drag you through the weeds. The bottom line is that was THE REJECTION OF A GREAT IDEA! The current board simply said NO!
One of the reasons was that this current board majority supports Sandy Seddon and her continual personnel failures in bad hiring decisions for accounting and financial management. Now remember SCA is self managed requiring also its own personnel and own operating systems. And who chose the operating systems and the people to maintain them? Sandy Seddon. Everything goes back to Sandy Seddon and the board’s abdication of all operational power to the Chief Operating Officer. It’s in the governing documents and her contract. It would work if the COO was competent.
Rick Ernest’s proposal to outsource accounting if implemented would have provided a company to oversee receivables, payables, payroll and all the fund accounting. They would provide up to date tested systems of providing these services to hundreds of HOAs. They would have provided personnel and human resources to fill vacancies and all the rest. Rick argued it would be cost efficient and a more reliable work product from companies with this expertise. While management companies are not the panacea their accounting services are excellent. As a former Director and Officer of another Nevada HOA I know that 1st hand. Rick got this right. So what has happened after his proposal was rejected. Another CFO resigned under pressure after being designated incompetent but agreed to stay until a replacement was found. A search has been underway for months by paying a recruiter. The board recognizing Sandy Seddon’s failure in hiring decisions is now participating in the interviews. How do you think that’s going to turn out? I would urge them to stop and allow the new board to decide how to proceed. Perhaps outsourcing can be back on the table.
Further, the board after rejecting a Director of Technology position for the 2024 Budget changed their mind right after budget was implemented and without following the budget process requiring your ratification authorized this body addition. A lot of the justification was to upgrade and service outdated accounting operating systems. Welcome to DUMB and DUMBER!
This all could have been avoided with great cost savings by implementing the accounting outsourcing during the resigned CFO’s transition period. Expect technology costs to rise as SCA reinvents the wheel. Expect recruiting fees. Expect a future hire in the new Technology department as payroll continues its expansion. Expect the Finance Committee to Dummy Up! And expect your annual assessments to grow and grow. Not a pretty picture.
Rick Ernest was right but his great idea was rejected by a board majority responsible for so many bad decisions and the financial consequences are so noted.
Please join with me in creating a new board majority. Elections matter. Ballots mailed March 22.
Until next time….Robert