ORIGINAL POST: NOVEMBER 17, 2018
State Parkway’s Board of Directors and management, no strangers in conduct involving moral turpitude, dishonesty, and corruption, have a new problem. Is the current budget snafu, is the board guilty of willful misconduct, gross incompetence or gross negligence?
State Parkway’s Proposed 2019 Budget calls for an 11.94454% increase. However, due to five fatal errors, including double billing and improper use of Special Assessment accounts, the Proposed 2019 Budget actually calls for a 10.453% assessment decrease. Moreover, there’s also a fatal error involving the Association’s budgeted Cable T.V. Fee.
Despite board and management being informed of these errors, not to mention the board and management’s extensive history of budgeting errors and woefully inaccurate projections, not to mention their failure to control spending, they are denying the existence of the fatal errors. This is nothing new. The board, management and even CondoCPA denied the presence of fatal errors in State Parkway’s 2007 and 2008 proposed budgets when the percent increases were each 5.39% too high because of their failure to allocate the full assessment increase among the entire ownership. Lieberman Management Services, Inc., however, quietly corrected the errors but not until after these budgets were formally adopted by the board of directors.
The 2019 proposed assessment increase, however, is 22.48% overstated. The problem for the board and management is that many of the fatal errors were initially reported to them before the 2019 Proposed Budget was approved for distribution to the unit owners by the board. To make matters worse, the board and management incredulously continue to deny the existence of the fatal errors.
State Parkway’s unit owners will be irreparably harmed if they’re forced to overpay for assessments due to board and management’s failure to correct the fatal errors in the 2019 Proposed Budget.
The current embattled board of directors, comprised of President Thomas M. Battista, Secretary Margaret “Meg” Doyle Stingle, Treasurer Pauline Oberland, and Director Kevin Phelan have already spent the past eight weeks struggling with proxy/ballot fraud, financial reporting fraud, federal income tax fraud, state income tax fraud, and property tax fraud. No wonder the fifth director position has been vacant almost the entire time. To make matters worse, board President Tom Battista constantly talks out of his ass. Make no mistake, this is a corrupt board of directors and management team.
In any event, board and management will have to decide to be guilty of willful misconduct by falsely denying the presence of the six fatal errors in the Proposed 2019 Budget. Or are they (President Tom Battista, Secretary Meg Doyle Stingle, Treasurer Pauline Oberland and Director Kevin Phelan and/or LMS’ Regional Director Sara Kacheris) guilty of Gross Incompetence? Or are they guilty of Gross Negligence by recklessly disregarding the safety and rights of State Parkway’s 160 unit owners? None of these options are good for State Parkway’s Board of Directors and Lieberman Management Services, Inc.
Correcting the six fatal errors would mean the board and management amending the 2019 Proposed Budget, the board re-approving it for distribution for unit owners’ 25-day review and the board formally adopting the 2019 Proposed Budget around Christmas or after the New Year’s Day, and being labeled both corrupt and incompetent.
But, if the board and management do nothing, then they risk being labeled both corrupt and grossly negligent, except Treasurer Oberland would also be labeled as grossly incompetent.
I don’t envy the board of directors or management.