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Audit working group: "our books are a mess," cleanup and possible forensic review proposed
Summary
The Leilani Estates audit working group reported bookkeeping problems and recommended a cleanup (~$8,000) to prepare for a required independent audit; members also discussed a potential forensic review if irregularities are found.
The Leilani Estates board heard a report from its audit working group that the association’s financial records need significant cleanup and clearer procedures. President John Segalla relayed a vendor's assessment, saying that, according to the consultant, “our books are a mess.” The working group recommended an $8,000 bookkeeping cleanup to prepare for the board-mandated general audit and proposed a limited-scope approach to any forensic review to contain costs.
The treasurer reported the association holds about $287,000 across accounts but that accounts-receivable on the books appear inflated (the ledger shows roughly $616,000 with about $147,000 likely uncollectible under the six-year recovery window). The working group also presented an option for ongoing business-support services at about $800 a month and said a full forensic audit could cost in the neighborhood of $15,000 if a transaction-level deep dive becomes necessary. The board agreed to continue solicitation of independent audit proposals and to return with recommendations next month.
