Wednesday, May 23, 2007

What is better in HOA Management? Transparency and Accountability or Feel Good?

What is better in HOA Management? Transparency and Accountability or Feel Good?

May 22, 2007

Mostly as a result of the Enron and Worldcom scandals, the Sarbanes-Oxley Act of 2002 known as the Public Company Accounting Reform and Investor Protection Act of 2002 and commonly called SOX; was enacted to provide business executives with less wiggle room, less finger-pointing and ultimately hold these executives accountable to shareholders for their actions
The Act was approved by the House by a vote of 423-3 and by the Senate 99-0. The legislation is wide ranging and establishes new or enhanced standards for all U.S. public company boards, management, and public accounting firms. The most important part of the Act establishes a new quasi-public agency, the Public Company Accounting Oversight Board, which is charged with overseeing, regulating, inspecting, and disciplining accounting firms in their roles as auditors. The Act also covers issues such as auditor independence, corporate governance and enhanced financial disclosure. It is considered by some as one of the most significant changes to United States securities laws since the New Deal in the 1930s.

SOX requires executives to 1) Certify they know what is in the financial statements, 2) They certify that the financials are accurate and 3) There is process to guarantee 1 and 2 above.

Earlier this year, when accounting regulators gave companies new standards for valuing certain investments, according to the Wall Street Journal (April 30, 2007) FTN Financial saw an opportunity saying that their new marketing pitch was not “necessarily within the spirit” of the new accounting rule, reminiscent of the recent tax shelters peddled by big accounting firms and ultimately dis-credited by the IRS.

The current globalization initiatives place a premium on rules-based decision-making, as compared to the mostly “feel” used by FTN Financial and the CZ Master Association board of directrors.

The CZ Master Association board of directors has gone on record as saying that the HOA/CID legislation intended to bring democratization to CID non-profit organizations are mostly government intrusion and - ”micro-management”. The same board that refuses to even acknowledge the countless instance of conflict of interest, including the use of association funds in attempts to protect family and friend’s interests, or using their positions as delegates to keep a stranglehold on community politics.

Most recently, the Pentagon released (May 4, 2007) a survey with troubleing battle ethics breaches. “It is disappointing," said analyst John Pike of the think tan referring to results of the survey "But anybody who is surprised by it doesn't understand war. ... This is about combat stress”

Eight years after the U.S. government accused Harvard University economist professor Andrei Shleifer of seeking personal profit from his management of a foreign-aid program in Russia, the university and Mr. Shleifer agreed to pay nearly $30 million to resolve civil claims. Some of the claims involve Shleifer benefiting from the open market he was creating. CZ board members like to make frequent use of GM or even Vice President Gore analogies to show themselves as victims of a conspiracy. That is, a conspiracy by critics of the board. These critics believe that family and friends of the CZ Board of directors deriving benefit from the board’s decisions is analogues to professor Shleifer’s actions.

Seems like businesses, universities and even the Pentagon are worrying about ethics

The questions for business transparency and accountability is no different that for wannabe HOA/CID politicians: What is best, Rules-Based decision making frameworks, or Feel Good frameworks?

Two of the Worst & Most Detrimental Laws to Hit California are Sponsored by None Other than: California Association of Realtors (R) The Gold is Gone --No more gold in the Golden State!
Dear Governor Arnold Schwarzenegger,
SHATZI! PLEASE REMEMBER YOUR PROMISE TO US. Please listen to the people who support you and look to you to help us! When you first began buying property in California NO ONE told you what you could or could not do...

It apparently does not matter that titleholders with a vested interest in their property cannot get their legislators to carry legislation to help US, but, they can waste taxpayer funds by preventing the bills WE WANT and NEED by CHANGING *ONE* WORD in an...

So THIS is what the Senate calls an "Open Meeting." How many Open Meetings have THEY been to? Obviously not many. ROTFLMAO!

CAN YOU OUTSWIM YOUR HOA SHARKS? or will you drown trying?
Owning, let alone living in an HOA is a tough JOB and requires you be physically fit, possess a certain sophistication of the processes, and have the character let alone stamina, that allows you to be persistent in a manner that indescribable to REAL...

(c) D. Vanitzian
May 16, 2007The Gray Panthers are on record as SUPPORTING A BAD BAD BAD BAD BILL: Senate Bill Number 948. SHAME ON YOU. Where the heck are you getting your information from?

The Law of Unintended Consequences: Legislation and HOA BOD Cause and Effect: Clueless in my CAR
Coming off a most improbable but successful campaign to defeat SB 670 author and HOA advocate Vanitizian thanks supporters making a connection between the quality of legislation being passed in Sacramento, and the quality of life in most homeowners...

Paraphrasing the LA Times on Defeat of SB670 & Wicked Twin Witches of the West - SB 127 & AB-980
Taking a page out of the OC Register?s ?paraphrased reporting?, an article written by LA Times staff writer Diane Weder titled ?Bill to limit transfer fee founders?, published appropriately on May 13, 2007, quotes the president of the statewide Realtors...

One More Near Miss Avoided - Clueless in My CID/HOA
The number one rule in the Australian Aviation Magazine?s list of Flight Rules is the one about airplane take off and landing: Every takeoff is optional, Every landing is mandatory!It is safe to say that most travelers know that takeoffs and

Private Transfer Tax - Good for the Common Interest Development (HOA/CID) Industry or Good for the Politicians?
When we received our copy of the report that the California Association of Realtors (CAR) used to Sponsor and help draft transfer fees, we were confused. Given that Vanitzian has become an icon in Sacrament (some say a thorn in the legislature's side),...

How to Communicate with the CZ Master Association (and other HOAs)
Recently a CotoBuzz contributor received a stupid lawyer letter stating that the CZ Master Association board would no longer accept his requests via email.

OCR Paraphrasing in Laguna Woods Village
The CotoBuzz Journal previously reported on a brewing scandal related to alleged misuse of credit card by property management company employees in an article titled Laguna Woods Residents Outraged by Use of Credit Cards Issued to Property Manager...

Letters to the editor

Letters- Unreal State of Real Estate Bills
Regarding "Bill to Limit Transfer Fees Founders," May 13, on Senate Bill 670: The measure left the illusion of limiting the use of transfer fees, while in reality it would have undermined Civil Code Section 711, which has existed to protect Californians...

Power hungry association steals home from mentally ill person for $540 Assessments. The monthly fees for the home paid in full for nearly 20 years ago is only $183 a month. Brother tried to pay the money but the board would not accept it.
My brother lost his home in Coldwater North Cooperative, Inc because he is mentally ill and didn't know he had to pay $540 in dues. My mother left her home to us to protect my brother. The monthly fees for the home she paid in full for nearly 20 years...


Select Blogzz & click icon

BlogSpot FeedBurner CotoBlogzz BraveNet Y!360

Archived Issues

General Information

HOA Resources

Emergency numbers

Public Safety Resources

Crime Watch

Sex Offenders in the Area

Real Time Traffic Report

LA Times Orange County


- What is RSS?

Area Links


The CotoBuzz Journal P.O. Box 154 Trabuco Canyon, CA 92678 (509) 355-8895

Privacy Policy | Need Help? | Contact Us | Administrator:

No comments: