HPP BIZ: Part the second

[kalakoa]

It was no ones fault.

I suggest that it is irresponsible to float a large bond issue to pay for a project whose cost might fluctuate due to the price of commodities.

[Chunkster]

The bond was very irresponsible, and I was told after the election by the board member who wrote the ballot proposal that it was written to imply that all the roads would be paved. I knew it was too good to be true and didn't vote for it, but I stuck with paying like everybody else.

As for Obie's numbers, the most recent published financial statement is here:

http://www.hppoa.net/newsite/wp-content/...0-2018.pdf

If I'm reading it correctly, the cash flow report says the total bond cost paid out that year was $1,365,000. With revenue of $2,793,000, that should leave $1,430,000 for operations. FWIW, an expense of $417,000 was incurred in January, 2018 for refinancing the bond at a lower interest rate. It seems like a lot to pay, but it was a smart move because it will lower the overall cost of the bond by a lot more. Somebody in authority at that time did something right.

Disclaimer: I am not an accountant, and will gladly correct my assumptions about all this if someone can show them to be wrong.

Edited for typos.

[reni]

Obie posts
"The audit was for the period ending 6/30/18 but it was not posted until Feb 2019.
It takes that long to do the audit,"...........

"so this years audit is still in progress."

,, Your link is to a financial statement audit. (ending 6/30/18)

No, it does not take "that long to do a audit", of this type. The examination is on "test basis"
not forensic..

Below from Salberg & Co. C.P.A., P.A.

1. What is a financial statement audit?

A financial statement audit is an examination, on a test basis, of evidence supporting the amounts and disclosures in a company's financial statements and that such amounts and disclosures are accounted for in accordance with a generally accepted set of standards
2. What is the purpose of an independent financial statement audit?

To provide financial statement users with reasonable, but not absolute, assurance that the financial statements prepared by management are fairly presented. This assurance is provided in the form of a written opinion report signed by the Certified Public Accounting firm.

6. How long does it take to complete an audit?

The time to start and complete an audit will vary with the size of the company and the quality of its internal bookkeeping, accounting and record keeping. In general if a company's records are in good order, the audit process should take anywhere from three to six weeks.

(over 25 years of working with our C.P.A., NEVER did I wait months for this type of audit).

[Obie]

"Your link is to a financial statement audit. (ending 6/30/18)"

Read the Independent Auditor's Report at the end you will find Hilo, Hawaii February 1 , 2019

[Obie]

"It was no ones fault.

I suggest that it is irresponsible to float a large bond issue to pay for a project whose cost might fluctuate due to the price of commodities."

Hindsight is 20-20 .

[kalakoa]

Hindsight is 20-20 .

Committing a substantial portion of future income to debt service is never a good idea.

[reni]

"Read the Independent Auditor's Report at the end you will find Hilo, Hawaii February 1 , 2019"

I read it all......and it does not take 8 months for this.

Ridiculous on your part to even suggest that this is common place, or
o.k..

And why would you???

Either our books were a mess or for some reason, a financial statement, audit was not requested in a timely fashion......
again.... why would YOU attempt to defend this?

[My 2 cents]

I can agree with Obie that the bond is probably the taproot of your current financial struggles. I can't agree that it was no one's fault.

I was on the OLCA board during that period, and we were given a very similar offer by the same company at the same time. We looked into it and rather quickly saw it as a bad idea and rejected the offer. With all the criteria being very similar, why do you suppose we came to the opposite decision? A decision that looks pretty good with that 20-20 hindsight right about now.

[Obie]

"
Either our books were a mess or for some reason, a financial statement, audit was not requested in a timely fashion......
again.... why would YOU attempt to defend this?"

Just pointing out the facts.Look at all of the previous audits, They were released in October.So there are 2 months remaining until the normal release date.

[Kenney]

Again, The Membership voted for a Forensic Audit two years ago this coming October. This still has not been done. When it has, this topic of Audits can be ended once and for all, and the questions about what is really happening with our $ can finally be answered to our satisfaction. (despite objections of powers that be, who really do not want us to know)

As for the Bond, that was the handiwork of another Rogue BOD, who didn’t care what the Membership voted for. Everyone I knew voted no, yet somehow it was done anyway. Another sad story for the Membership of HPP that we have been and will continue to pay for ad nauseam..