Written for the UCO Reporter and never published. (To hot to handle)
UCO DEFAULTS ON
2012 BUDGETED RESERVE PAYMENT OF $336,938
Starting in fiscal 2011 David Israel, president, supported by his two minions, Ed Black treasurer and Roger Carver, CAM, pushed his then favorite project...the ill fated roadway and drainage restoration.
Project totaling more than $4.5 million to be completed in one year. At the time there was
$3, 300,000 in the villages reserve accounts. The project engineer's report clearly stated that if the funds were unavailable, that the work could be done over a three-year period.
Despite this professional recommendation, Mr. Israel pushed forward, putting the Village in financial jeopardy. The method he used to convince the majority of the delegates is best described by Edward J Ross a seasoned architect and then president of Oxford 100 Condominium Association. Mr. Ross circulated throughout the village in 2011, a two-page letter correctly titled SECRETS, LIES AND DECEPTION. A must read for everyone. "Again and again, they conceal and hide everything and they do without reservation."
I addressed the reckless manner many times that Mr. Israel was handling the Village's finances as well as the deficient manner that Mr. Black was handling the Village's books and monthly treasurer's reports. Mr. George Lowenstein CPA and myself were asked to meet with the Village's independent accountant in order to help Mr. Black correct the Village's books and monthly reports It is evident that the recommended changes to the books and the monthly reports were never made.
Century Village, on January 1, 2011, (as per the independent auditors statement) UCO had over $3 million in equity. Because of Mr. Israel's reckless spending policy, as of December 31, 2011, (as per the independent auditors) Century Village, only had approximately $23,000 in equity. This was the result of Mr. Israel's outrages spending policies leaving the village at tremendous economic risk.
Prior to becoming treasurer in 2012, Ms. Tetro recognized the Village's dire economic position. In pursuit of the treasurer's office wrote a one-page letter circulated throughout the village entitled is The 2012 Budget Misleading?
Some of the most salient points which are pointed out is that the 2012 budget:
$3, 300,000 in the villages reserve accounts. The project engineer's report clearly stated that if the funds were unavailable, that the work could be done over a three-year period.
Despite this professional recommendation, Mr. Israel pushed forward, putting the Village in financial jeopardy. The method he used to convince the majority of the delegates is best described by Edward J Ross a seasoned architect and then president of Oxford 100 Condominium Association. Mr. Ross circulated throughout the village in 2011, a two-page letter correctly titled SECRETS, LIES AND DECEPTION. A must read for everyone. "Again and again, they conceal and hide everything and they do without reservation."
I addressed the reckless manner many times that Mr. Israel was handling the Village's finances as well as the deficient manner that Mr. Black was handling the Village's books and monthly treasurer's reports. Mr. George Lowenstein CPA and myself were asked to meet with the Village's independent accountant in order to help Mr. Black correct the Village's books and monthly reports It is evident that the recommended changes to the books and the monthly reports were never made.
Century Village, on January 1, 2011, (as per the independent auditors statement) UCO had over $3 million in equity. Because of Mr. Israel's reckless spending policy, as of December 31, 2011, (as per the independent auditors) Century Village, only had approximately $23,000 in equity. This was the result of Mr. Israel's outrages spending policies leaving the village at tremendous economic risk.
Prior to becoming treasurer in 2012, Ms. Tetro recognized the Village's dire economic position. In pursuit of the treasurer's office wrote a one-page letter circulated throughout the village entitled is The 2012 Budget Misleading?
Some of the most salient points which are pointed out is that the 2012 budget:
a. Appears to be a Ponzi scheme.
b. The 2013 budget would of necessity require an additional line item to cover the repayment
c. The purpose of this letter is to alert you to what I believe is a very dangerous financial plan,
d. At the conclusion of the paving contracts, there will not be very much money (if any) in our reserve and operating accounts.
Unfortunately, due to the pressures of David Israel the prior treasurer, Ed Black and the lack of support of the other officers, apparently Ms. Tetro was unable to fulfill her own agenda of straightening out the UCO treasury. Despite my suggestions to correct these monthly reports to the delegates,it was never done, deficient reporting continued throughout the year.
b. The 2013 budget would of necessity require an additional line item to cover the repayment
c. The purpose of this letter is to alert you to what I believe is a very dangerous financial plan,
d. At the conclusion of the paving contracts, there will not be very much money (if any) in our reserve and operating accounts.
Unfortunately, due to the pressures of David Israel the prior treasurer, Ed Black and the lack of support of the other officers, apparently Ms. Tetro was unable to fulfill her own agenda of straightening out the UCO treasury. Despite my suggestions to correct these monthly reports to the delegates,it was never done, deficient reporting continued throughout the year.
When the draft of the 2013 Budget was presented, I objected to the manner of reporting and stated that the outside auditors should review the numbers to date as the numbers which the budget was based on was clearly incorrect!
In an attempt to help the Village by having the proper information to vote on the budget, I did the following:
a. August 29, 2012, I sent an e-mail asking for certain pertinent information relating to the 2013 budget to be available. I was turned down.
b. Despite a memo distributed on September 5, 2012, inviting residents of Century Village to review the proposed budget; and to call or send an e-mail with specific questions and concerns. None were responded to.
c. On September 22, 2012, requesting that UCO's accounting firm be present at a meeting with UCO bookkeeping and myself, I sent a certified letter David Israel agreeing with UCO's terms.
d. On September 28, 2012, I received a letter signed by David Israel denying this request.
Because of the lack of knowledge and intellectual honesty, the budget for 2013 was pushed through in October, 2012, without the aid of professional help. Our reserves were stripped and there is no way of knowing what the real numbers are because of the stubbornness of those in charge who failed to listen to professional advice!
It is no surprise that almost immediately thereafter, David Israel with Hat in-Hand had to admit that they bad committed a gross error and failed to honor the 2012 Reserved Budget commitment and did not have the funds to pay the $336.938 budget reserves.
They asked for forgiveness of this obligation.
In spite of all this, at the officer's meeting, I advised them that the December treasurer's report contained gross errors, including the failure to include in the "expenses" substantial amounts which were unpaid, but due. Furthermore, the report showed that the actual expenses were $600,000, less than the budgeted expenses. This too was a gross error.
At the December Delegates meeting, the same report was presented without the correction of these errors. Why? At the January 30, 2013 Officers' Meeting, it was clearly stated that UCO does not have the money to timely pay its bills and needs to wait until new monies come in.
Interestingly enough, at the February 1 Delegate's assembly, when the report was delivered, it failed to advise the delegates of this situation.
WE WILL NOT KNOW WHERE WE ACTUALLY STAND UNTIL THE COMPLETION AND PUBLISHING OF THE AUDITED REPORT!
Well we all know the outcome of the first report of the new Treasurer, Howard O'Brien. The net result is a shortfall, underfunded amount of $1.7 Million, $16 per month per unit owner for 5 years
And then there is the fact, that this was not the beginning of the attack on our wallets, just a continuation.
EDWARD R. GROSSMAN, CPA
edwardgrossman@comcast.net
b. Despite a memo distributed on September 5, 2012, inviting residents of Century Village to review the proposed budget; and to call or send an e-mail with specific questions and concerns. None were responded to.
c. On September 22, 2012, requesting that UCO's accounting firm be present at a meeting with UCO bookkeeping and myself, I sent a certified letter David Israel agreeing with UCO's terms.
d. On September 28, 2012, I received a letter signed by David Israel denying this request.
Because of the lack of knowledge and intellectual honesty, the budget for 2013 was pushed through in October, 2012, without the aid of professional help. Our reserves were stripped and there is no way of knowing what the real numbers are because of the stubbornness of those in charge who failed to listen to professional advice!
It is no surprise that almost immediately thereafter, David Israel with Hat in-Hand had to admit that they bad committed a gross error and failed to honor the 2012 Reserved Budget commitment and did not have the funds to pay the $336.938 budget reserves.
They asked for forgiveness of this obligation.
In spite of all this, at the officer's meeting, I advised them that the December treasurer's report contained gross errors, including the failure to include in the "expenses" substantial amounts which were unpaid, but due. Furthermore, the report showed that the actual expenses were $600,000, less than the budgeted expenses. This too was a gross error.
At the December Delegates meeting, the same report was presented without the correction of these errors. Why? At the January 30, 2013 Officers' Meeting, it was clearly stated that UCO does not have the money to timely pay its bills and needs to wait until new monies come in.
Interestingly enough, at the February 1 Delegate's assembly, when the report was delivered, it failed to advise the delegates of this situation.
WE WILL NOT KNOW WHERE WE ACTUALLY STAND UNTIL THE COMPLETION AND PUBLISHING OF THE AUDITED REPORT!
Well we all know the outcome of the first report of the new Treasurer, Howard O'Brien. The net result is a shortfall, underfunded amount of $1.7 Million, $16 per month per unit owner for 5 years
And then there is the fact, that this was not the beginning of the attack on our wallets, just a continuation.
EDWARD R. GROSSMAN, CPA
edwardgrossman@comcast.net
This is a continuing thing. Israel thinks he can get away with anything. So far, thanks to the nodding delegates, he can and is.
ReplyDeleteIf the delegates don't take their heads out of the sand and get David Israel out of office on the quick, they will all wind up in the poorhouse.
DeleteMr. Grossman mentions a two-page letter entitled SECRETS, LIES AND DECEPTION that I authored on October 31, 2011, regarding the secret plan to rig UCO Insurance Bids. Mr. Israel was well aware of this crooked scheme and he covered it up.
ReplyDeleteMy attorneys were well aware of what he did together with his Insurance Committee Chairperson. Still, the Delegates did nothing.
Tens of thousands of dollars of Public Money was involved, and it was suggested by law enforcement officials that major felonies may have been committed, yet the Delegates did nothing.
This was just another huge SCANDAL that someone should have included in the SCANDAL series written on this Blog.