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Sunday, July 24, 2016

Proper Financial Planning Requires Defining "Surplus"...An Anthem Opinions Editorial

Surplus Funds
A Battle Between Those Who Desire Fiscal Responsibility
and those
Who Demand Selfish Control

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We've been relatively quiet regarding the goings on in Sun City Anthem since the board election because frankly, it's still hard for many of us to comprehend the results...the questionable results...

...that brought us the latest bunch now in charge...

... a bunch whose credentials are commensurate with the likes of "Moe , "Curly", "Larry"...

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...two  bureaucratic "Lucy"s...

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... with the addition of  "Alfalfa" as the Association Treasurer.

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Yes, it's that bad....we have perhaps the most inexperienced and unknowledgeable group of individuals as Board members than at any time in the history of Sun City Anthem....

...at a time of conversion to self-management that's perhaps the most important time of our seventeen year history.

It appears the latest has to do with the word "surplus". 

What is it, and how should it be handled?  

Surplus is "excess money" not spent and not earmarked for any specific purpose.

Reserves are monies deposited in an account to be used only for the maintenance and preservation of our facilities.  In other words, they must be earmarked for a specific purpose, examples of which are a new roof for the Anthem Center or the repainting or refurnishing of a room in need of being modernized.

For years....there has been no clear definition for surplus funds, but they DEFINITELY cannot be utilized as working capital, such as paying fines to the IRS or subsidizing losses for a restaurant.

The result...

...OPEN WARFARE amongst board members between those who need to "keep an old system" where a "slush fund" is important to bury their mistakes, and  one lone wolf who is trying to convince the others that "surplus" means GIVE IT BACK to the unit owners.

Nevada Statues under NRS 116 do not define how excess surplus funds should be calculated,  and Director Jim Mayfield, seems to be the only one who wanted that defined ...

...until...

... it was recently learned that two distinguished CPAs, the current Vice Chairman and former Chairman of the Sun City Anthem Finance Committee...

...seem to be generally in agreement with Mr. Mayfield.

...and for that...we highly commend him for his determination in "doing the right thing" despite the apparent disdain from a number of Board Members...

....complicated by the stubborn and conceited attitude of the current Association Treasurer, Thomas Nissen, a man who DOES NOT EVEN CARRY A CURRENT CPA REGISTRATION.

Now...why would that be the case?

You see, the "old guard" knows that if you keep the surplus funds and place them in a working capital account, you can pull them out when you "screw up" something...and...avoid having to make it public when you do !

Mr. Mayfield, on the other hand, says..."wait a minute"....

...that excess should be RETURNED TO YOU...and  if "screw ups" take place, you should admit to them, and be forced to make them public, by SAYING WE NEED MORE OF YOUR MONEY TO COVER THE BOOBOOS, rather than burying the truth.

Seems to us that Mr. Mayfield is fighting a real battle...he's demanding that ....

"if you don't take it in, you can't spend it, because you don't have it"

He's become...the...
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Gee, what's he making all the waves about? 

Oh yeah...it's called one man's dying plea for...

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Let's give you an example as to how things work out here by comparing it to Social Security funding.

Year after year, we have been told that the Social Security funding is far below what it should be, that it's going to go broke soon. 

It is common knowledge the only way it's been allowed to stumble through the years is increasing the social security baseincreasing the normal retirement age, and increasing the contribution wage base percentage

In 1970 you paid a total of 4.2% of the first  $7,800 of your earnings, but in 2016, the amount had jumped to 6.2% of the first $118,500. Medicare taxes were paid in addition jumping from .6% on the first $7,800 of earnings to 1.45% no matter how much you earned.

Well, there's another reason that it is going broke....DRAINING IT TO PAY for OTHER STUFF that has nothing to do with funding the benefits associated with Social Security.

...and that's a good example of what's taking place with your dues money.

We have been "robbing Peter to pay Paul" by allowing funds to be improperly used as "working capital".

What is "working capital"?


Current assets minus current liabilities, and it measures how much in liquid assets a company has available on hand to meet its immediate obligations...

...and improperly placing funds in "working capital" rather than refunding them to the unit owners, has allowed the creation of a "slush fund" THAT BY LAW,  SHOULD NOT EXIST.
There have been no dues increases because of two things:

1. The current and past boards have COLLECTED TOO MUCH, and the overages have been stuck in that "working capital" sock for an undetermined purpose for a rainy day.

2. These overages have been ROBBED again and again to pay for such things as restaurant rent reductions, loans to deadbeat owners,  all to often, senseless legal fees....

...and worst of all...what appears to be a SUBSTANTIAL UNDERSTATEMENT IN THE COST OF TRANSITION TO SELF-MANAGEMENT.

Now then....if there was NO SURPLUS...what then?

Simply stated, you'd have to think twice before you spent the bucks, wouldn't you?

Any of you remember an old "Hi & Lois" cartoon....

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... when Hi went to a Chinese laundry and didn't have his receipt ?

The owner looked at Hi and said..

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Well, in our estimation, these words should be stamped on the foreheads of each and every person who wants to call themselves a real leader and practice financial responsibility.

So...to you "leaders" our attitude is simple...

If you need money, ASK US for our approval.

In the meantime...

GIVE THE SURPLIS BACK TO US...

In case you forgot...

..we're the ones who GAVE IT TO YOU !

Got a comment? 

What's your thought(s) on surplus? 

Keep it?

Give it back?

Send it to us at:

scaopinions@gmail.com
  1. We also suggest that you send your feelings to the members of the Sun City Anthem Board...

    ....then send a copy to us in order that we can make the community aware of how you feel as well.

    Need their email address?

    Click on our Information Page entitled "Sun City Anthem Board of Directors"...or...

    ...click here to take you there. http://anthemopinions.blogspot.com/p/sun-city-anthem-board-of-directors.html
    1. From Buddy G....to...Anthem Opinions

      If the board screws up and covers up wasted money in the amount of $85,724

      IT’S ONLY

      $1 per month per home in SCA.

      If the boards has a slush fund of $428,640

      IT’S ONLY

      $5 per month per household…

      That’s how the board thinks.

      Give bonus to employees that you are about to terminate???

      IT’S ONLY our money DICIDED by 12 and then decided by each household of 7,144…..

      WE NEED NEW THINKING

      NO DUES INCREASE IN ALL THESE YEARS PROVES THAT THE SLUSH FUND (SURPLUS) HAS BEEN WORKING FOR THE BOARD GIVEN THE NUMBER OF TIMES THEY HAVE USED IT TO COVER UP SO MANY POOR DECISIONS.
    1. From Robert N...to...Anthem Opinions

      Of course, the IRS will be happy to determine what constitutes "Surplus"

      Fool us once, shame on you.

      Fool us twice, shame on us.
  1. From Langs 3...to...Anthem Opinions

    Give it back, its the law and its ours, not theirs to spend willy nilly!!
  2. I have spent some time looking at the ineptitude of the majority of the Board, and over time come to respect Mr. Mayfield more then before. 
  3. How long can one turn a blind eye to basic corruption and robbery? 
  4. The IRS has already caught the Board once and we (the homeowners) paid a hefty fine from the "surplus" — our money. 
  5. Somebody will turn them in again eventually and then the Board won't have to worry about the surplus; as they will be giving the (your) money to the IRS again. 
  6. Write the Board about it...? 
  7. They don't listen.

5 comments:

  1. We also suggest that you send your feelings to the members of the Sun City Anthem Board...

    ....then send a copy to us in order that we can make the community aware of how you feel as well.

    Need their email address?

    Click on our Information Page entitled "Sun City Anthem Board of Directors"...or...

    ...click here to take you there.

    http://anthemopinions.blogspot.com/p/sun-city-anthem-board-of-directors.html

    ReplyDelete
  2. From Buddy G....to...Anthem Opinions

    If the board screws up and covers up wasted money in the amount of $85,724

    IT’S ONLY

    $1 per month per home in SCA.

    If the boards has a slush fund of $428,640

    IT’S ONLY

    $5 per month per household…

    That’s how the board thinks.

    Give bonus to employees that you are about to terminate???

    IT’S ONLY our money DIVIDED by 12 and then decided by each household of 7,144…..

    WE NEED NEW THINKING

    NO DUES INCREASE IN ALL THESE YEARS PROVES THAT THE SLUSH FUND (SURPLUS) HAS BEEN WORKING FOR THE BOARD GIVEN THE NUMBER OF TIMES THEY HAVE USED IT TO COVER UP SO MANY POOR DECISIONS.

    ReplyDelete
  3. From Robert N...to...Anthem Opinions

    Of course, the IRS will be happy to determine what constitutes "Surplus"

    Fool us once, shame on you.

    Fool us twice, shame on us.

    ReplyDelete
  4. From Langs 3...to...Anthem Opinions

    Give it back, its the law and its ours, not theirs to spend willy nilly!!!

    ReplyDelete
  5. I have spent some time looking at the ineptitude of the majority of the Board, and over time come to respect Mr. Mayfield more then before. How long can one turn a blind eye to basic corruption and robbery? The IRS has already caught the Board once and we (the homeowners) paid a hefty fine from the "surplus" — our money. Somebody will turn them in again eventually and then the Board won't have to worry about the surplus; as they will be giving the (your) money to the IRS again. Write the Board about it...? They don't listen.

    ReplyDelete