FACTS vs. RUMORS

FACTS

  1. The 2024 draft budget has been wrongfully drafted according to law by omitting all revenue for homeowners to see. This is true based on Greg Swenson’s own admissions that also included that the budgeted loss for Restaurant in 2024 is a bogus made up number by Mr. Swenson because WHG the restaurant management company failed to meet its contractual August 15 deadline to provide SCA with the next year’s budget with revenues and projections..
  2. Sending the board passed budget for a ratification meeting with homeowners has been set for November. That means homeowners should shortly be receiving their 2024 budget packet in the mail.
  3. The 2024 Main Reserve capital expenditures have not been announced by the board and are under a great deal of criticism and review stemming from confusion about the recently fired Auditor firm headed by Gary Porter , Reserve Specialist, who I argued should have never been hired to both be Auditor and Reserve Specialist. A new auditing firm was hired to audit 2023.
  4. The Main Reserves are underfunded.
  5. The $9,000 Restaurant management Fee was refunded for two months from WHG because they failed to meet food costs and labor costs. The contract provides for other remedies after 1 year. The refund was a gesture not a requirement.

RUMORS

  1. The CFO either was fired or resigned.
  2. The 2024 Budget has already been printed but it is being contemplated to fix the errors with a do over to avoid filing of complaints for budget being prepared not in accordance with Nevada Law and Generally Accept Accounting Principles. Board is meeting to discuss and perhaps move date of ratification meeting after fixing the botched draft.
  3. The Restaurant performance is being micromanaged by the board to a fault in attempts to save it.

VIEWPOINT

SCA’s COO is a management failure but is under contract till May 2025. The board has a contractual dilemma as to whether to allow her to continue overseeing certain functions or buy her out and get a replacement. Why would the board allow her to oversee financial matters any longer? Perhaps it is time for board member Rick Ernest’s suggestion of creating a hybrid and outsourcing accounting and financial review reporting directly to board. Probably would improve work product and certainly save overhead. Why wait for a new board in 2024?

While the board is under some contractual restraints as to the restaurant evaluation of performance and remedies, it ought to begin to discuss if operations do not improve significantly and within defined contractual terms how and when will they proceed. The restaurant does get and should get a year to get things in order because that’s in the contract and it should be honored. The proper accounting reporting for the restaurant is still not in place. I share the point of view of so many that Greg Swenson ought to resign from the board based on his disclosed comments at October’s Town Hall.

Until next time…..Robert

1 Comment

  1. Lou on October 30, 2023 at 12:09 pm

    Fire the COO underlings and make her do her job! This will prove her ineptness and, perhaps, she will resign before her term ends without severance pay.

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