Good news - Mark Hardy has circulated some financial information today. I hope that those Owners amongst us who have skills in analysing the figures will give their view of the financial state of Coral Beach Hotel and related companies. I am certain that many Owners would appreciate their professional opinions.
At this point I do not know who has received the information and in what form it is being sent to Owners. I wait to hear if I should post it on email.
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9 comments:
Pat
The financial info was sent to me as an email attachment that I cannot open.
To have this info on your site would be of great help.
I have reservations about posting the financial documents on to the blog - if you send me an email I will send scans or try to forward the documents in a different format if you know which one works for your system.
I too would prefer you not post the financial statement and accompanying letters on the blog. I happened to see on the tourism board newsgroup a couple of weeks ago that someone by the name of "Augie" posted the web address of this blog. I don't think Coral Beach financial statements should be privvy to everyone who knows this blog address.
While I share your unease about posting any financial info on the blog, please remember any SHARP buyer interested in a unit at Coral Beach will be requesting this info up front. If they fail to think of it, be sure, their attorney will not.
Regarding the finacials. I have just downloaded all of the 5 dosuments, they are all in .8 font so I really need to re do the excel files. Would someone plese correct me if I am worngm but I thought that the annual audit was to be done be an outside agencey. The outside agency will make a complete audit of the books, including the checking account, and the reserves as well as the CD. We were in the process of an outside audit at the last AGM and it was supposed to be finished by March - that never happened. Now Mr Hardy states that "having had discussions with a number of local firms....if would be more cost effective for me to do the complete audit...." I am sorry but I am not satisfied with an in house audt, especially after what I know went on this past summer.
It sounds to me like the outside audit firms they contacted do not want to touch these financials with a ten foot pole. That should convince owners that the numbers we will be given cannot be trusted.
From Ted Mulvihill:
To Mark Hardy,
Further to your memo, "Financial Information" specifically with reference to your gracious offer to be Bookkeeper/Accountant and to perform the audit of Coral Beach financial records as noted in your paragraph shown below.
"Having had discussions with a number of local audit and accounting firms, it was eventually decided that it would be more efficient and cost effective for me to perform a complete audit of the numbers and financial books for the year ending July 2007. This audit work is currently ongoing but has already involved significant review of the financial records since I started working on the finances in mid-July. I expect this work to be completed in early January at which point, final numbers will be produced. These will be in the same format as formerly produced by the previous auditors."
The Board should have directed you that it is illegal for Coral Beach Management Ltd not to produced 'audited' financial statements.
In the Bahamian Law of Property and Condominium Conveyancing on page 9 clause 17 (2), it states: "Annual accounts duly audited by a qualified auditor shall be rendered by the corporate body to all owners at least once in every year.
These actions are of great concern to me.
Ted Mulvihill
From Tyrone Anderson
To: All Owners
Re: Summary of year end financial results dated December 14, 2007.
The current audit by Mark Hardy is ongoing, completion expected early January.
In fairness to Mark I will reserve comments until the audit is completed, hopefully early January he would have completed separate P & L for Kenilworth.
It is very disappointing to know that Deloitte & Touche was not engaged for the July 2007 audit. I trust that Deloitte & Touche will be present at the AGM to answer questions relating to the July 2006 audited financials, which were not completed prior to the last AGM.
Tyron Anderson
Candidate for BOD 2008
The following are ‘excerpts’ from communications with Mark Hardy. From appearances so far, Mark is a hard working conscientious young man.
REMARKS FROM MARK HARDY IN RESPONSE TO MY QUESTIONS
The requirement is a qualified auditor- I am a qualified auditor with over 10 years experience in auditing (and over 10 years as Financial Controller in Freeport and Mexico) and have performed numerous audits on condos in Freeport in my time at Coopers and Lybrand and free-lance (many other condos on the island adopt a similar approach).
For 2006/7 year end I came in during July when the previous bookkeeper left and my work has really been of an audit / tidy up nature for that period. My day to day involvement was primarily in August onwards and thus for year ending July 2008. I would not perform a similar audit role as I would not be an independent third party.
MULVIHILL’S COMMENTS TO MARK
I think all owners will appreciate your conscientiousness.
If it satisfies the legal requirements, I have no problem with you auditing yr ending July 2007 because of unexplained extraordinary circumstances. As mentioned I was not impressed with Deloitte and recommended that we seek approval to change auditors. Their fees escalated annually. Their track record in my time as an owner was unsatisfactory. For example:
1. 2004 audit report very late & no Management Letter.........these were blamed on the hurricanes.
2. 2005 no audit. I believe the reasons given by Rufa are implausible. The following is the qualification from Deloitte.
PRIOR YEAR QUALIFICATION
The scope of the prior year's audit was limited due to changes in key management and the Company's inability to provide sufficient support for financial statement balances. Due to the lack of evidence, we were unable to satisfy ourselves as to whether the prior year's financial statements presented fairly in all material respects, the Company's financial position and the results of its operations and its cash flows for the year ended July 31, 2005.
3. 2006 audit report but no Management Letter......at least none Rufa told us about. I tried to enquire but Auditor; Jon Swain never returned my calls or e-mails.
4. Neither Deloitte nor any other external auditor retained as you know. Owners should persist in obtaining an explanation from the 2007 Board.
Ted Mulvihill
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