Accounting for Corrupt and Incompetent Treasurer Pauline Oberland

UPDATE: MARCH 2, 2019 The other day I sent a letter to the Association’s new general counsel, Nicholas Bartzen, informing him that the December 2018 financials and January 2019 financials is already more than 40 days late and 10 days late, respectively, in being posted on Lieberman’s e-STAR portal for unit owner review. Told him […]

Hey Corrupt CondoCPA, Ever Read Illinois Compiled Statutes, Ch. 765 Act 605, Section 9(c)?

ORIGINAL POST: AUGUST 25, 2018 Hey, Corrupt CondoCPA, Please be advised that Section 9(c) of the Illinois Condominium Property Act states as follows: (c) Budget and reserves. (1) The board of managers shall prepare and distribute to all unit owners a detailed proposed annual budget, setting forth with particularity all anticipated common expenses by category […]

State Parkway’s Million-Dollar Replacement Reserve Fund Earns A Paltry $6,578 In Interest Income During 2017

ORIGINAL POST: AUGUST 11, 2018 State Parkway’s Replacement Reserve Fund earned only $6,578, or approximately .6325% in interest income during the year ended December 31, 2018. In contrast, Reserve Advisors, Inc., in State Parkway’s 2016 Reserve Study Update, had projected the Association’s Replacement Reserve Fund would earn $13,080, or more than twice as much. Unit […]

State Parkway’s Current Replacement Reserves Still Woefully Inadequate

ORIGINAL POST: JULY 20, 2018 I have good news and bad news. The “good” news is according to the draft 2017 audited financial statements, State Parkway’s Replacement Reserve Fund ended 2017 with $1,059,543. But the bad news is the Association’s percent funded, thanks to the Association’s $498.7K reserve contribution during 2017, remains at about 10-11%, […]

Board Fails to Transfer 2015 Operating Fund Surplus to Replacement Reserve Fund

At the July 25, 2016, board meeting, I asked the board why the association didn’t transfer the 2015 Operating Fund Surplus to the Replacement Reserve Fund as was done the year before? It wasn’t until September 14, 2016, that my wife and I finally received an email with the answer to my question to the […]

The $10 Million Truth About State Parkway’s Annual Reserve Contribution (And Lack of Proper Disclosures to Unit Owners and Prospective Purchasers)

UPDATE: FEBRUARY 17, 2017 This is a follow up to the December 23, 2016, UPDATE. Last week my wife and I finally received a copy of the 22.1 letter that was approved at the January 23, 2017, board meeting. As you know, I refuted State Parkway’s claims in their December 21, 2016, email regarding 22.1 disclosures. […]

State Parkway Needs to Establish a Non-Capital Reserve Account

Since IRS Revenue Rulings make it clear that some replacement reserve inventory components will not meet the Internal Revenue Code (“IRC”) Section 118 “Capital Purpose” requirements, including painting (Rev. Rul. 75-370) and contingency (Rev. Rul. 75-371), State Parkway needs to establish a separate Non-Capital Reserve Account for replacement fund components that are not capital in nature, […]

Investing State Parkway’s Replacement Reserve Funds

Take the following quiz: How much investment income did State Parkway’s million-dollar Replacement Reserve Fund earn during the year ended December 31, 2015? a) $6,178 b) $21,951 c) $28,129 d) $61,780   The answer is a) $6,178, or roughly .622% return. The answer c) $28,129, is what State Parkway’s reserve study consultant estimated for the year 2015 […]

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