Complaints

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• Initial Complaint

  Date:09/03/2024

  Type:Order Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  A property management company hired by the board of directors to manage the homeowners association at ***** ***** Estates in ******, Georgia. The company prepares all financial documents, maintains all accounts and disburses payments on behalf of the sub division since October 1, 2023. Since that time, several financial discrepancies were discovered by the membership totaling missing funds of approximately $18,186.00. Concerned residents took measures starting in February of 2024 through to present day to get answers with no cooperation from Keystone Association Managers. Their avoidance to provide the information or answer for the past 6 months has lead me to reach out to the BBB. All monthly financial statements can be forwarded at your request.

  Business Response

  Date: 09/13/2024

  Hello,

  We noticed this complaint today and are awaiting a letter from our client regarding this matter that should help clear it up.  We will respond after the letter is received.

  Business Response

  Date: 09/13/2024

  Hello,

  We noticed this complaint today and are awaiting a letter from our client regarding this matter that should help clear it up.  We will respond after the letter is received.

  Business Response

  Date: 09/16/2024

  Thank you for bringing the concerns of ****** **** to our attention. We take any inquiry regarding the financial management of the associations we serve very seriously.

  We want to clarify that Keystone Association Managers does not owe $18,168 to the ***** ***** HOA. The discrepancy noted stems from a difference in accounting methods when we first took over management of the association. The previous manager used an accrual accounting system, while we converted to a cash accounting system when we began in October 2023.

  Under the accrual method, the dues received at the beginning of the year were placed on the balance sheet as a liability, and then a portion was recognized each month as income. When we converted to the cash system, we no longer accrued this income monthly, leaving the liability on the balance sheet for October, November, and December of 2023. This resulted in a variance of approximately $18,186.00 in the budget for November 2023, which was equal to two months of accruing $9,093.08 per month.

  Once this variance was brought to our attention, we made the appropriate journal entries to accrue the income for those months and reissued the financial statements. Both the initial board and the subsequent board reviewed these revised financials after the annual meeting and confirmed that no funds were missing.

  We are attaching the balance sheet and income statements that were prepared in 2023 without accruing this amount each month, as well as the balance sheet and income statements for the same periods after correcting.  Note that the cash balances in the asset portion of the balance sheet does not change from one to the other.  The only changes are the liabilities on the balance sheet, the dues income on the income statements, and the calculated retained earnings.

  The homeowner-elected Board for the Association has reviewed this and determined that no funds are missing.  We are also including the minutes of the April 2024 Board of Directors Meeting for ***** ***** HOA where this was discussed and the Board determined that no funds were missing.

  We hope this explanation addresses your concerns. Please feel free to reach out if you need any further clarification.
  Sincerely,
  

  
  

  Customer Answer

  Date: 09/19/2024

  [To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

   Complaint: ********

  I am rejecting this response because of the below explanation

   

  Thank you for your response.  Unfortunately, the financial information has not been updated to reflect this, and to your point the accounting basis has always been listed as cash under Keystone Management.  Also, the board you referenced resigned their positions all within 1 month after approving the minutes including President ******** *********, Vice President **** *******, Treasurer ******* *********** and Secretary **** ****. The fund discrepancy was also a topic brought up by the resigned board members in the July residents town hall meeting (page 2 of the attachment) demanding for an answer. The need for an answer requested from the resigned board members to the fund discrepancy clearly shows their failure to obtain a resolution with Keystone Management, even after approving May's 2024 monthly minutes in which they served as board members.  We were also members of the financial committee (no required committee minutes ever recorded by Chair and Treasurer, ******* ***********) and the discrepancy was discussed over several meetings with never receiving corrected reports or explanation of the discrepancy.  Treasurer ******* *********** reported a meeting date with Keystone was set for June of 2024 with the resolution of the financial discrepancy being one of the topics. Brandy Waters, community manager, was contacted by concerned residents and she advised the conversation would only include Treasurer ******* ***********.  No resolution was reached and never an answer reported to the financial committee or other concerned residents of the community.  We stepped up to serve on the board in July and August after the mass exodus of the previous board of directors, and our action for Keystone after the July Board meeting was for Keystone Management accounting manager to provide an explanation and upload revised documents.  This was never received as of the end of August.  
  
  
  The difference in accounting between the previous management company and Keystone was brought up in the explanation, but in September we reported $81,838.35 year to date in dues, then in October (first month with Keystone) we reported $88,534.75 year to date in dues assessments.  The numbers month to month do not add up September to December 2023 (page 3 of the attachment).
  
  
  Let us be clear, we are not accusing anyone of taking money.  It is more than likely a discrepancy in the calculations or reporting, and if so, updated documentation needs to be loaded into the homeowner portal and an email from Keystone sent to the community explaining what happened and why revised financial documentation was uploaded for October, November and December.  Also, if audited by the IRS, there is no explanation as to why in November we had collected $97,627.90 in dues and then in December we only had collected $79,441.60.
  
  
  It was also mentioned in the minutes that we had over $16,000 in delinquent dues, but our budget shows we were $29,675.40 short for the year showing a difference of over $13,000 of unaccounted for funds with the delinquent dues taken into account.
  
  
  Our request is for the financial documentation to be cleaned up and proper amounts reported since Keystone took over in October 2023.  It has been almost a year since they took over.

  Regards,

  ****** ****