Summary of ECA Board Meeting October 23, 2018

Board Present: Zlatan Beca, Makarand (Mak) Dehejia, Monique Fridell, Al Muller, Lyle Schwartz, Rhonda Taller, Christopher Wemple

Others Present: ECA General Manager MaryAnn Hall, Assistant Manager Romaine Cureton, Jeremy Tucker (ECA legal counsel, Lerch Early & Brewer), and from The Goldklang Group CPAs: Howard Goldklang, President,  and Jeremy Powell, Associate Principal,

Highlights of the meeting:

·      First on the agenda was the presentation by Howard Goldklang & Jeremy Powell.  The presentation explained the difference between a financial statement audit and a forensic audit, and commented on the recent fraud. Gates Hudson has agreed to provide the ECA a copy of the forensic audit report, i.e., the part that deals specifically with the Elizabeth. The report is expected shortly.

·      Treasurer Lyle Schwartz noted that interest rates on our line of credit are scheduled to be adjusted in 2021 and will likely go up. He suggested that it may be advantageous to refinance the load at a fixed rate. The Board will investigate this and report at the November meeting.

·      Garage repairs continue but some of the areas needing repair are requiring more work than expected, which means the overall time for the project may increase.

·      Given the recent drain line pipe break in the 06 tier in September which also knocked out phone service in the management office and the conce, our general manager has contacted a company which drops a camera down such pipes to determine if they are cracked or crumbling. Look for a report at the next board meeting.

·      Molly Frantz reported findings and recommendations regarding MERV filters. The ECA has enough filters to complete the semi-annual in-unit maintenance, which begins in the West Tower on Monday, November 5, beginning on floors 1 and 2. No decision on MERV filters was made.

·      A question was asked about release of the Management Letters prepared by our auditor for the Board of Directors. Following is the ECA policy, found in the BuildingLink Library.

“Release of Audits and Related Information to Residents”

“The conduct of audits is a routine annual step in assuring competent financial management of any condominium. However, while audits themselves are released to owners when adopted, other related documents such as management letters are not. This is in accord with AICPA AU-C Section 905.5, through which CPA firms restrict such documents to review by the Board and management. These documents are reviewed by the Treasurer and General Manager, and management company, and if warranted, a corrective action plan is developed which is also presented to the Board. The Board may decide to provide summary information about management letters, related documents and corrective action plans to owners. The Elizabeth Condominium will continue to release audits, summaries of management letters and corrective action plans when adopted by the Board for owner information.” 

Beginning with the Transition Audit (July 1, 2015 – January 31, 2016), and at the request of the Board President, a summary of Goldklang’s findings) and recommended corrective actions was sent out to owners and placed on BuildingLink. Additionally, a special meeting was held for owners at which these documents were explained by the auditor. 

This same process was followed in the case of all subsequent audits and Jeremy Powell said he is happy to do this again this year.  In addition, he pointed out that Goldklang provides this service to none of its clients except the Elizabeth Condominium Association.

·      General Manager, MaryAnn Hall, announced that Rakeem’s last day would be November 1. He is moving to North Carolina. Rakeem was an employee of the concierge company and not the Association. We wish him well!

·      GM MaryAnn Hall also announced that the elevators passed inspection and we are awaiting new certificates; the roof anchors passed inspection and the next weight-testing of anchors is not due for five years; and the boilers passed the annual inspection. Additionally, window washing will take place November 1 & 2; and the fall landscaping will occur October 24.