Re: [SC-SCOOP] Re: SCSCAI JANUARY 2015 SUMMARY OF OPERATIONS

-----Original Message-----
From: "rwhkc rwhkc@earthlink.net [SC-SCOOP]"
Sent: Mar 17, 2015 11:07 AM
To: SC-SCOOP@yahoogroups.com, "SC-SCOOP@yahoogroups.com"
Cc: Bernard Silver , SCBOARD , SUE PAPILION , BOB FRANK , SUN CITY SUMERLIN LSC , BOB ROBEY , My Sun City Summerlin-Blog
Subject: Re: [SC-SCOOP] Re: SCSCAI JANUARY 2015 SUMMARY OF OPERATIONS

Our common interest community problem can be solved by tracing properties once owned by those who were forced to sell and/or by tracing the when, where and how ownership changed. Who now owns and/or owned the properties.? What properties were or are owned who had access to inside information. What is that information worth? Ownership information is the key. Records have disappeared. Important  records are stored off site. Who had or still has access? What records were trashed or have gone missing?
What properties are now by individuals and/or groups who had or may still have inside information, investment groups, etc. Do they include partnerships, corporations etc. Have the properties wound up in auctions and if so, who owns them now? Some of the answers are readily available and some are not. Was payment for services rendered?

Our common interest community problem can be solved by tracing properties once owned by those who were forced to sell and/or by tracing the when, where and how ownership changed. Who now owns and/or owned the properties.? What properties were or are owned who had access to inside information. What is that information worth? Ownership information is the key. Records have disappeared. Important  records are stored off site. Who had or still has access? What records were trashed or have gone missing?
What properties are now by individuals and/or groups who had or may still have inside information, investment groups, etc. Do they include partnerships, corporations etc. Have the properties wound up in auctions and if so, who owns them now? Some of the answers are readily available and some are not. Was payment for services rendered?
There are many, many ways to get very wealthy at our expense, very quietly, without a person's name being attached. Our so-called audits do not enter this world of how some become very rich at our expense. Many have known for a long time about the out-of-state purchasers who own many homes that had inside information. That information is not readily available to the membership. It takes money to follow the trail. Some time ago I posted that rest of us are like sheep waiting to be sheared of everything we own. I have not changed that opinion.
BOB HALL
....................................................................
t very wealthy at our expense, very quietly, without a person's name being attached. Our so-called audits do not enter this world of how some become very rich at our expense. Many have known for a long time about the out-of-state purchasers who own many homes that had inside information. That information is not readily available to the membership. It takes money to follow the trail. Some time ago I posted that rest of us are like sheep waiting to be sheared of everything we own. I have not changed that opinion.
BOB HALL
....................................................................

-----Original Message-----
From: "John Galt vegasjohngalt@yahoo.com [SC-SCOOP]"
Sent: Mar 15, 2015 12:57 PM
To: "SC-SCOOP@yahoogroups.com"
Cc: Bernard Silver , SCBOARD , SUE PAPILION , BOB FRANK , SUN CITY SUMERLIN LSC , BOB ROBEY , My Sun City Summerlin-Blog
Subject: Re: [SC-SCOOP] Re: SCSCAI JANUARY 2015 SUMMARY OF OPERATIONS

Dwain,

SCSCAI financials get audited annually according to GAAS (Generally Accepted Auditing Standards). I am not aware of material audit adjustments that have been required from the auditors in the course of their audit so I am fairly confident our financials are free of material misstatements.

I think don't think combining for-profit and not-for-profit complicates things, except perhaps for taxes. The fund accounting with reserves may make things complicated. But I believe we would still have that complicating feature even if we were only not-for-profit. 

I think the issue at hand is the qualifications of administration management. It appears that things are not running as smoothly as they once did. Maybe things never ran smoothly but the chaos seems to be showing more.

The true cost of "volunteer management" is hidden, that is, you won't see it on any financials. Maybe that's a good thing. Maybe ignorance is bliss...

But you make a good point.

JG

On Mar 6, 2015, at 3:14 PM, Dwain Kramzar dkramzar@gmail.com [SC-SCOOP] <SC-SCOOP@yahoogroups.com> wrote:

 

Bernie, I have come to the conclusion that this is the True Cost of Volunteer Management (free Management).  Sun City Summerlin is a self managed community by nine volunteer Board of Directors. (only Management qualifications needed is membership in a small political group)

What can be expected from an (unaudited)  Balance Sheet? Moreover SCSCAI has a very complicated financial structure because it consolidates the balance sheets of the membership funds (Dues) with for profit cash business (golf/restaurants) therefore, co-mingling assets, liabilities and ownership and not providing the accountability of Generally Accepted Auditing Standards, or GAAS to the SCSCAI membership. The Board and Management are well aware of this and refuse to address this problem, Why?

It is logical to think that this situation will continue until this mismanagement has been stopped. Accountability and the end of controlled  Communications is needed.

DAK

(702) 582-8064

On Fri, Mar 6, 2015 at 9:33 AM, Bernard Silver <silverinvegas@yahoo.com> wrote:

SCSCAI  JANUARY 2015 SUMMARY OF OPERATIONS 

The following summary relating to the operation of 2 businesses, open to the public, are

from data published by our Administration and available on www.scscai.com.

SCSCAI JANUARY 2015 SUMMARY OF OPERATIONS - JUNE 30 2014 THRU JANUARY 2015 (unaudited)

                                                            EXPENSES($)          REVENUE ($)

Golf Course & Restaurants                 3,693,373                  2,079,328

Golf Course & Restaurants         LOSS  (7 MONTHS)          1,614,045

    Prorated Loss for 12 months     2,766,934

    Prorated Loss per unit owner  =   $356   =  27.8% of $1,284  annual membership dues

                  

Number of Rounds of Golf Played  Prior Year to date............  45,869

Number of Rounds of Golf Played  Current Year to date.......   45,723

                          666666666666666666666666666666666666666666666666666666666

__._,_.___

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LINK Magazine, (misleading report to the Membership)

David Steinman, President SCSCAI Board of Directors,

Sun City Summerlin Board of Directors

January 6, 2015 the President & Board was made aware of a report in the January 2015 LINK article titled,, "From the Executive Director", was incorrect and misleading to our community,,, The Executive Director alludes that SCSCAI is financially sound. Not true.

LINK Magazine, (misleading report to the Membership)

Febuary 2015 LINK Summary of Operations is misleading as to the financial condition of SCSCAI.

(unaudited) October 2014 Balance Sheet

SCSCAI has a very complicated financial structure because it consolidates the balance sheets of the membership funds (Dues) with for profit cash business (golf/restaurants) therefore, co-mingling assets, liabilities and ownership and not providing the accountability of Generally Accepted Auditing Standards, or GAAS to the SCSCAI membership.

True Cost of Volunteer Management (free Management)  

January 6, 2015 SCSCAI Board meeting it was established that Sun City Summerlin is a self managed community by nine volunteer Board of Directors. (only Management qualifications needed is membership)

​ ​

President Steinman stated "It is a big responsibility to govern

​ ​

a business that amounts to a small city".

​--Feb 2015 Link.

Govern - Merriam-Webster Online

​ ​

to officially control and lead (a group of people)

Summary of SCSCAI Cash Business ​ ​ ​P&L​ ​

• Loss per month, 4 months  (628,469.25)
  Annual Loss  (3,886,317.00)
• 7780 Unit Owners Share of Losses ​  (499.53) 

​LACK of ​ACCOUNTABILITY:

$65 million in Assets managed by Volunteers without Background Checks,Trust Me

How can Volunteers be held accountable for co-mingled members funds?

co-mingled unaudited Assets & Liabilities on Balance Sheet.

Refusal of Board to implement a Business Plan/P&L

​ for our cash business.​

Losses approaching $4 million per year

​Dwain Kramzar

(702) 582-8064

		Summary of SCSCAI Cash Business P & L
		Figures from 2015 Link Magazine
		Current Month			Fiscal Year To Date
				July 2014 - October 2014
Revenues		Actual			Actual
Golf Course		327,361.00			1,047,756.00
Restaurants		41,164.00			170,682.00
	Subtotal	368,525.00			1,218,438.00
Expenses
Golf Golf Pro  CoursShops		109,646.00			443,922.00
Golf Course Maintenance		395,081.00			1,800,312.00
Restaurants		48,068.00			269,643.00
	Subtotal	552,795.00			2,513,877.00
	Total P&L	(184,270.00)			(1,295,439.00)

Investment Club - Sun City Summerlin article in the Review Journal Newspaper about their NEW EXECUTIVE DIRECTOR

Ms. Darcy Spears,

​Chanel 13​

Darcy, my name is Dwain Kramzar and I am a seventeen year member of the Sun City Summerlin HOA. You and I previously met a few years ago at a Nevada Real Estate Division meeting. My neighbors and I are requesting your investigative reporting skills for an unbiased observation of our community.

This February we are having an election of four of nine Board of Directors in the SCSCAI HOA. The Board of Directors are elected to represent the membership with reasonable governance and rules, to provide for the care and maintenance of the facilities in a cost effective manner, and to create an atmosphere which encourages new and old residents to maintain the active lifestyle they have sought by moving to the community. SCSCAI members are being denied these fundamentals outlined in our governing documents.

Summary of problems:

• Freedom of Speech denied Membership  
• Appointment of Board President to $120,000 Executive Director position without qualifications required (below- Letters to the Review Journal Summerlin Editor, Jan. 15-21, 2015)

• Control of information in the LINK magazine that publish incorrect and misleading information to our community,,, when informed was met by the BoD's-"CODE OF SILENCE" as USUAL!
• Board & Executive Director fail to maintain Cost in an Effective Manner: - $2 million + Business LOSSES due to the mismanagement, co-mingling of Membership dues & Business LOSSES. Lack of COMPETENT MANAGEMENT is the major contributor to the Millions in yearly LOSSES to this community,,,, these LOSSES amount to RESORT FEES that are embedded in the memberships dues.   
• $15 million Budget without Audit, Business Plan or Accountability

​Thanks f​or any assistance you can provide our community,

​​

​

Dwain Kramzar 

(702) 582-8064

---------- Forwarded message ----------
From: SCommander <sdcommand@centurylink.net>
Date: Thu, Jan 22, 2015 at 8:32 AM
Subject: Investment Club - Sun City Summerlin article in the Review Journal Newspaper about their NEW EXECUTIVE DIRECTOR
To:

Investment Club members

A main concern of the Investment Club is the education of its members on how to protect and increase their Finances. With that said, I previously sent you an email about how the Sun City Summerlin BOD is using $120,000 of Our Dues Money on the new Executive Director. I followed up on that via an email to the Review Journal Newspaper. The following is what they published in their VIEW Section.

Steve Commander, President Investment Club

---

Letters to the Review Journal Summerlin Editor, Jan. 15-21, 2015

RESIDENT OBJECTS TO NEW BOARD DIRECTOR. The Sun City Summerlin board has had several executive directors over the past few years. Each time the Board apparently goes through an exhausted search for the right person. Unfortunately, that does not appear to be the situation with our latest executive director. The new director was initially elected to the board, which nearly everyone knows is a popularity contest rather than based on experience. This new member subsequently became the president of the board. The experienced executive director recently departed and the board voted for the board president to become the new executive director without searching for an experienced person. This new executive director does not appear to have any experience for the job and is being paid $120,000 annually from our dues money. The board was questioned multiple times about the experience, ability and salary of the new executive director and the board refused to respond. To properly and correctly resolve this situation, I strongly suggest the Ombudsman, City Council and Mayor's office thoroughly investigate this situation and determine if there any possible corruption, collusion or the like occurring in Sun City Summerlin and openly advise Sun City residents of their findings ASAP.

— Steve Commander, Las Vegas

Sun City BOD Meeting of Jan 6, 2015

David Steinman

I understand from several residents who attended the BOD meeting with me this Tuesday that certain demeaning comments were said about me by BOD members after I left to attend to my dementia daughter.

It is truly a shame that you, president of the BOD, would allow such tactics BUT knowing you and the recent history of the BOD it is quite understandable that each person on the BOD prefers dividing and conquering rather than working towards unity and harmony with residents.

Although you are physically a tall person you are really 'a little man' who shepherd's the rest of the BOD who are even 'smaller' than you.

A response is not required because it would only re-enforce you and the BOD as persona non grata

Stephen Commander, Sun City resident

A MAJOR FISCAL PROBLEM IN SUN CITY SUMMERLIN

Robert Frank, Colonel, USAF (Ret.), Responce

Bernie,

I understand your point, but I do not have a copy of your CC&Rs that covers your almost 7,800 units.  Could you send them to me in PDF?

What is not clear is whether your CC&Rs allow the board to budget as they do that includes the outside expenses for non-HOA operating costs?  If so, I would expect them to release the budget in a somewhat different format to reflect the restaurant and golf course expenses as simply "normal expense" that must be covered by the annual operating budget and assessment process.  Keeping the items separate suggests the board is knowingly and willingly violating various statutes.

If CC&Rs do not authorize the arbitrary including of external costs including service to civilian golfers and restaurant patrons along with normal operating expenses for the association, the "illegal" bundling of such improper costs along with statute-approved operating costs should be considered felony criminal violations--as described by NRS 205.   But, as long as a number of the harmed SCS members fail to demand a criminal investigation and prosecution by the District Attorney, nothing will ever correct the situation, nor stop the crimes. 

You and other large HOAs (over 500 units) are totally vulnerable to election fraud if you are not provided a system by your board and managers that can be audited by a independent 3rd party professional.  It is just a matter of business 101.  Without mandating from member petitions or from suing the board to have such standard business practices implemented, your members are simply showing they are "willing" to be duped and to lose millions more in the future.  Expecting or hoping for honest results from an untrustworthy system is not reasonable.

HOA boards cannot be "shamed" into behaving ethically.  The majority either behaves ethically due to their characters, or they do not.  Some directors go along with covering up unethical actions out of fear for being prosecuted along with the criminals.   Of course, that is true in most cases.

Wishing for changes in board policies from honest elections is unrealistic.  Your hidden board election system run entirely by your managers demonstrates huge conflicts of interest for the employee and contracted individuals involved.  I have heard that your election system has no credible audit trail or chain of custody records of the ballot handling prior to counting date. 

See attached file for some chain of custody considerations.  While such is normal for law enforcement agencies when preparing criminal trials, I am sure you will see the value to your members to demand similar kinds of rigor by your "volunteer directors" when protecting the integrity of your board elections and helping them to defend their personal liabilities.  Since the only control HOA/Condo members have is to annually elect the board directors who set all policies and rules, trustworthy elections are exceptionally vital to selecting the required ethical leadership each year.

Why would any HOA community blindly trust any managers, inept directors or unlicensed HOA management company?  Every step in a board election should be capable of being independently audited by an external CPA or Certified Fraud Examiner at association expense.  Otherwise, the election results cannot be accepted as "trustworthy".

Your current and past directors should be able to understand their personal legal risks if they do nothing about credible audit trails and chain of custody records, and if they have to go to trial over a suit about alleged election fraud.  Ask any district judge and they will confirm that if the board and managers are unable to demonstrate a commitment and capability for establishing and maintaining election system audit trails and chain of custody records, the board is like to lose a criminal or civil suit. The directors are likely to be held personally liable for their willful and knowing gross negligence and apparent fraud.  The "Business Judgement Rule" cannot protect directors against gross negligence or apparent knowing fraudulent behavior if the transactions are not made in good faith and with reasonable skill and prudence.

So, it needs to be clearly understood that board failures to implement professionally auditable audit trails and chain of custody records could make it easy/invisible for whomever handles your ballots prior to counting date to control the outcomes with little fear of discovery.   Ballots can be invisibly opened, inspected, ballots replaced and resealed, or envelopes replaced or entire ballot packages destroyed without leaving a trace.  Without preventive/tamper-detectable procedures such as serialized ballots and tamper-evident, water-marked special paper, counterfeit ballots cannot be detected by the counting team. 

Ballots from remote owners and properties for sale can be intersected or duped and voted undetected by your volunteer election team.  Ballot box containers not having tamper-evident seals, seams, voting slots, high security locks and secure after-hours storage rooms are vulnerable to undetected tampering.  And, without audit trail components, ballots cannot be authenticated by independent professionals.

Most people are not aware that scanner machines can be easily rigged so that certain columns or lines on ballots can be ignored and/or not reported and to secretly corrupt the results.  Scanner software (all types) can even be hacked with remote/wireless controls so the vote can be invisibly changed from one or more candidates and reported for preferred candidates while keeping the margin of victory close enough to avoid suspicion at the end.

If anyone doubts these election vulnerabilities, our "Citizen Task Force for Voter Rights" can help document how scanner-related counting and process-related systems can be easily corrupted.  See CitizenTaskForce.Org.  You appear to have a board election system where no external/independent auditable capabilities.  And, you appear not have "chain of custody" records recorded so members can trust the election system results.  See the attached document for possible considerations. 

If someone thinks your millions of dollars of annual corruption are not likely the worth of real criminal prosecutions, I suggest re-thinking how little it might take to bribe just one member of your election processing team to follow a specific process that they might not even understand what they are doing?



While our CitizenTaskForce.Org site is focused on exposing the serious vulnerabilities in our NV election system, many of the HOA election system vulnerabilities to corruption are the same.  And, the money available from controlling the voting is in the millions.  It is a serious mistake in judgement to believe that since you believe many or even most of the involved elections people might be honest, that you can rest easy and believe that everything is ok.  It only takes one corrupt person with hidden access to destroy the ethical results of such an election.  And the money and hidden perks or comps available to a corrupt person is

There are ways I and others could help if a SCS group would take the leadership.  And, there are those in the new Assembly and in the public who could help if the members of SCS have had enough of such thefts.  But, it is up to you who are being harmed by the corruption to take a stand.

There is no hope for the SCS member's future as long as everyone is content to just bitch about the crimes but take no conclusive and compelling action to demand law enforcement prosecution.  It is not easy to force law enforcement to act, but talk to Robert Stern, CPA for specific instructions on how to defeat the forces lined up behind the board, managers, your attorney and auditor.

Check out Robert Stern's web site announcing his new book:  "HOA WARS:  What Happens In Vegas Can Happen Anywhere".  Robert can be considered a "proven expert" in detecting and stopping HOA corruption in recent years in Nevada.  Since it could help sell his book, he might be willing to make a book-signing, community presentation on his lessons learned in the near future.  He also might be willing to help consult with your SCS group on how to beat the forces that continue to enable your board to get away with committing crimes that are costing you millions every year.  He was highly successful in Anthem Highlands in recent years, and his advise should be taken very seriously. 

Happy New Year to all you HOA Warriors!

Bob

Robert Frank, Colonel, USAF (Ret.),
http://www.linkedin.com/pub/robert-e-frank-colonel-usaf-ret/16/9a5/955

On 1/1/2015 2:02 PM, Bernard Silver wrote:

A MAJOR FISCAL PROBLEM IN SUN CITY SUMMERLIN

 

Let us be realistic. 

There are several major problems in our Common Interest Community of 7,779 unit owners.

 

One of the most pressing problems relates to operating three golf courses and restaurants that are open to the public and are real financial burdens because of under usage.

 

Our Board Directors are clearly aware of this and do not appear adequately concerned to make any substantial changes to alleviate this problem.

Think about this when you vote for Board Directors.

 

The current Board actually created this current Fiscal Year Budget with a planned massive deficit of $2,457,987.

These are not my numbers, they are taken from the FY 2015 Budget.

In summary, here are the numbers:

 

Expenses $                                         Revenue $

Golf Course............. 5,769,761            Golf Course............. 3,469,365

Food & Beverage....    758,979            Food & Beverage.....    601,388

                   Total .... 6,528,740                              Total ....  4,070,753

 

Loss covered by Annual Assessment.

        6,528,740 minus 4,070,753  = $2,457,987 ....$316 per unit owner

 

It should also be noted that there is a Reserve Amount for the Golf Course

included in our Annual Assessment of $42.

Therefore, realistically non golfers are paying $358 in their Annual Assessment to support a small number of our Sun City Summerlin golfers and those from the public who play here.  This is 28% of our Annual Assessment.

Again, think about this when you vote for Board Directors.

 

Bernie  Silver

=========================================

LINK Magazine, (misleading report to the Membership)

David Steinman, President SCSCAI Board of Directors

David, a LINK article titled, From the Executive Director, is incorrect and misleading to our community. The ED alludes that SCSCAI is financially sound, due to Planning, Staff and Management being the key, this is far from accurate. If we focus on the Summary of 10/23/14 meeting-Highland Falls G.C. Maintenance Project/4th fairway perimeter letter sent to the Board, it demonstrates the Wack-A-Mole approach to Management. This would be plain to see if the w/orders are reviewed. There doesn't seem to be an end in sight. Completion date unknown! 

We as Home-Owner's are not allowed rebuttal of articles posted in the LINK Magazine. If the Membership was allowed open and timely rebuttal this community would be more efficiently operated. 

 I am expecting a written reply, Thanks for your attention,

Dwain Kramzar

(702) 582-8064

FRIDAY, OCTOBER 24, 2014

Summary of 10/23/14 meeting-Highland Falls G.C. Maintenance Project/4th fairway perimeter

Attendance, 

Sue Papillon, ED/ HOA management, 

Brian Bagwell/Steve, G.C maintenance dept/staff

Charlotte Kuklin, homeowner/member

Dwain Kramzar, homeowner/member

Summary:

·                    

Frame & focus the issue, uniformity & maintenance outlined in original governing documents.

·                    

maintenance & landscape design are separate projects.

·                    

History of project, deterioration is due to the lack of normal maintenance for years without a written job plan creating a whack-a-mole situation

·                    

Uniformity and erosion was stressed, Completion date put off to Dec/Jan 2015??,

Conclusion:

Highland Falls G.C. Maintenance Project/4th fairway perimeter was initiated April 2014 completion date is now moved to December/January 2015, ten months if completed. Frankly, I don't have much confidence that the ED (management) can reverse a sixteen year deterioration due to a lack of a written job plan. Staff without a written job/project plan are being subjected to a whack-a-mole situation that  causes pressures from residents, this makes an impossible situation for staff to do their job efficiently. Hopefully, the ED can solicit support of BoD's to eliminate this costly condition.

Del Webb Corporation started fazing out their involvement in 1995 leaving the home-owner a written contract that the following paragraph summarizes. 

The community is organized into a community association, Sun

City Summerlin Community Association, Inc.  The Association's purpose is, with reasonable governance and rules, to provide for the care andmaintenance of the facilities in a cost effective manner, and to create an atmosphere which encourages new and old residents to maintain the active lifestyle they have sought by moving to the community.

The community is organized into a community association, Sun

City Summerlin Community Association, Inc.  The Association's purpose is, with reasonable governance and rules, to provide for the care and maintenance of the facilities in a cost effective manner, and to create an atmosphere which encourages new and old residents to maintain the active lifestyle they have sought by moving to the community.

We all owe Sue Papilion-ED a word of thanks for finally addressing this eyesore. 

cc. George/Judy

Dwain Kramzar

(702) 582-8064

Posted by Dwain Kramzar 

at  3:38 PM   

Labels: Golf, Letters to the Board

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