This is a smile for you today - visiting the basement yesterday I came across this little guy who is obviously helping CBH cut costs on the bug contract!
Mark Hardy, the man doing the CBH books off site, has come up trumps again. Not content with getting the October statements out in the first few days of the month, yesterday the profit and loss accounts for August and September arrived via email.
Jacques Delorme has some assistance at last as Phil Galiano arrived late Wednesday and they were out and about the roofs and terraces yesterday.
We are waiting to hear the result, if any, of the settlement mediation meeting arranged for yesterday in the matter of the Pool Bar Lessee.
11 comments:
The crab in the basement is also a reminder of the problem with rain and irrigation water penetrating the building basement. I think most of us hope that this repair is among the higher priorities since constant soaking of the concrete planks is potentially very damaging.
Ted Mulvihill
is hoped that this will bRe the critter in the basement
Hi Ted, this just goes to show that I can't mess with a comment - but as the first part made sense I decided to publish anyway, even though you obviously meant the bit at the end be deleted!
It is good to finally get current financials. It was not good to see that we were operating in the red. It would sure be nice to have comparative financials with a year to date column to see how we are doing for the year. Since these are really the first financials we have seen since the 7/31/06 audited financials were released, it would be nice if Mr. Hardy would circulate the January thru July financials by email as well. Also, it would be nice to have an explanation as to why there is no CB truck rental income reflected since we have been told that the BOD determined in a private meeting earlier this year (with no minutes or notice to owners) that the CB truck is now a profit center and that the president,among others, has rented the truck.
I agree with the third blogger and would also add that I would like to see the 25% charge (12 1/2 %) on rentals broken out in the income column. The P&L should be very specific in it's reporting in order to satisfy all the owners who have grave concerns over the disbursement of their monies. In otherwords, where did it all go? We need details, details, details, going back to July, 06
Anything short of that is just more subterfuge, designed to keep us in the dark.
ACTUAL VS. FACTUAL...
Your right it is great to get financials even if they are not correct. That being the key word.
Everybody wake up!!
You can not have a profit and loss statement where ACTUAL INCOME is stated on the monthly maintenance as the same each month of $59,340.91. It does not work this way.
Could this be the PROJECTED amount of income we were to collect every month vs god only knows what we actually received. (This makes this profit and loss statement completely inaccurate..) Meaning we are running in the negative even more.
Same thing with the expenses - Are they budgeted expenses vs. actual expenses. Or a little bit of both?
No money paid out to the G7 project/Spalling for the month of August and September.
What is still outstanding vs paid.
What is still outstanding to be paid on legal, etc.
People wake up!!! We have big problems. Bigger then this Profit and Loss picture even painted.
SOMEBODY RUN FOR OFFICE WITH ACCOUTNING EXPERIENCE, ATTORNEYS, CONSTRUCTION AND MUCH NEEDED MANAGERIAL EXPERIENCE.
WAKE UP, before you do not have a unit left to wake up in....
MORE FUZZY NUMBERS
Thank you to Anonymous for explaining what that statement says-and does NOT say. I have heard a few owners say they do not care about receiving statements because they do not understand them anyway. It is your obligation, as an owner, to try to understand them. Financial statements can lie too. The missing information is where the real truth is. Take the statement to your accountant, a friend who runs a business, your banker, or your atty and ask them to tell you what is and is not there in the Coral Beach P&L and year end statements. Afterall, if you didn't know how to read your monthly checking account statement, wouldn't you ask someone you trust to help you understand it so you know how much money you actually have in your account?
Time is running out, but it is not too late yet! Wake up and take action before you find out you no longer own what you thought you owned. You can begin by volunteering to run for the 2008 Board.
The good news is that this year there is a whole new scenario. Now that the Bahamian government is looking over the shoulders of our present board members, they will not be able to get away with the threats and harassment they got away with last year. If they try, it will just add more evidence to the government's case against them.
You can also help by starting a petition to insist on a SECRET ballot where nobody will be able to have access to the proxies before, during or after the election. Isn't that the way elections are run in Canada, the US and the Bahamas? Why should it be any different at Coral Beach? It is time to bring the Articles and Amendments in line with current Bahamian law.
DID YOU KNOW
Let's be very clear about last year's election,did you know that if you take away Mario Donato's votes, approximately half the owners voted for the Slate of 7 ?!
That little known fact has been carefully guarded information.
With all that has come to light concerning this year's board: Bruno's deportation, board personnel purchases using the Hotel Bond to avoid duty, property changing hands under the table, financials not properly audited and distributed to Owners as required by law, the next group of candidates will have a much easier time being elected as a whole slate. Will it be easy? Absolutely not! Do you really think this year's Board wants anyone else looking into how they have conducted Coral Beach business
(read that: how they have spent Coral Beach money)? They are going to fight dirty and fight like hell to keep anyone new off the board! That is why it is imperative to set up an incorruptible election, unlike last year. This year they are being caught in the web of their own lies, so there is no time like the present to run for the board.
Come on Coral Beach Owners; are you going to step up to the plate to save your investment, or are you going to just "roll over and play dead" in the face of the opposition. You have the power to make change for the betterment of Coral Beach, but only if you get involved!
I have contacted Mark Hardy and asked him to respond to the questions raised on the accounts in the post published on the 21st at 3.47pm:
"I will look into the questions you raise HOWEVER commonly accepted accounting treatment is to base information on an 'accruals basis' not a cash basis. Thus the revenue shown is what was billed each month (which for maintenance fees would normally be the same each month) not what was paid and for expenditure would be what had been incurred and not what bills have physically been paid. By reporting what has been received in cash and paid out in cash is called cash accounting. As previously mentioned the Financial Statements are prepared based upon an accruals basis. I hope this clarifies things a little."
Assuming CB uses the accrual method, can Mr.Hardy please explain why no amounts are billed/accrued for CB truck rental and for CB's share of owner's rentals?
Hello Everyone
If I understand Mark's comment correctly he is doing the Income on an Accrual basis which means then we should be doing the expenses the same way?
Capital projects such as spalling should be appearing in the accrual? Or do we handle capital projects differently?
Pay whenever?
It should be amortised over the period of the project if we are really accruing expenses as well.?
AS OWNERS WE ALL WOULD LIKE TO SEE OUR CASH FLOW...................
OUR RECEIVABLES VS. OUR PAYABLES ON A REAL TIME BASIS.
(not on an accrual basis.) Accrual is an overview or a snapshot...
ALSO WHAT IS IN THE BANK AS OF THE END OF SEPTEMBER.... CD's Checking and Reserve
HOPEFUL THAT THIS CLARIFIES EVERYTHING
Hi Anon & readers:
This replies to a comment expressing concern that maintenance is being shown as 59,340.91 each month. My understanding is that it is conventional accounting practice to do this. That is, they should be posting what is billed, since the revenue is recognized at that time rather than at the time of receipt.
However, of concern are the following:
1.) Coral Beach has run at a loss for two months without any disbursements for the Spalling and Painting Project. Is this the pattern year to date?
2.) It would be reasonable to ask for a breakdown on 7344 in Building Repairs.
3.) Water consumption in a time of low occupancy seems excessive.
I sincerely hope that Phil and Bruno do not intend to announce another 10% maintenance fee reduction without presenting a detailed justification.
Ted Mulvihill
Section 106 of CB's articles provides that the directors "shall cause true accounts to be kept of the property of the Company; of the sums of money received and expended by the Company, and the matters in respect of which such receipt and expenditures take place; and of the assets,credits and liabilities of the Company." While this does not prohibit accrual accounting methods, I agree with the blogger that it should mandate a cash flow statement showing actual income and expenses on a cash basis since this would be a "true account" of income and expenses.
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