Budget Performance Concealment

Sunflower Community Association does not disclose budget performance.  It was reported in 2011 that 42% of the budget line items were over spent by 20% or $1,000. Budget variances are not reviewed in board meetings and newsletter updates are not provided to the homeowners.  The result typically is wasteful spending and it is the unsuspecting homeowner who pays the price in special assessments and higher dues.  Excessive budget variances are indicative of a lack of financial discipline and control.

Failure to disclose implies an intention to withhold or secrete information so that others entitled to be informed will remain in ignorance.  Concealment occurs when a person or persons substantially conceals budget performance information peculiarly within his own knowledge, or uses a report naturally calculated to lull the suspicions of residents so as to induce them to forego inquiry into a matter.

Full disclosure tells the story of what’s beneath the surface.  What you see is only what you see – there may be surprises hiding out of view.  Properly formatted budget reports are designed to help eliminate these unwelcome surprises and the recurring problem of governance fraud.

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