Carefree Cove will be moving from Cedar Management Group to a local accounting service with Cindy Randolph, CPA. See the Ashe Count Line article on Cindy Randolph from December 2018.
Why the Change
The Cove has been associated with 3 different community management companies.
- CAM – Community Association Management
- CSM – Clark, Simpson, Miller
- CMG – Cedar Management Group
Each company has had its own set of drawbacks such as annual price increases, requirements to use their attorneys, and problems with response times and accuracy. Besides a monthly base charge of over $200, community management companies have also helped themselves to Cove accounts for significant add on fees without approval or explanation. CSM recently billed the Cove for $395 dollars of add on fees. When the treasurer insisted on a detailed explanation of the fees they consisted of:
- $5 for every payable check written
- $2,50 per mailed statement
- $.60 per email sent
- A monthly bank fee billed annually
After an ongoing struggle to get timely responses from CSM and correct mistakes they made, the board signed a contract with Cedar Management Group in July of 2019 to go into effect January 1st, 2020. A detailed time line of the interaction with CMG is listed under the posting Cedar Management Group. During the transition, the treasurer had to pay the electric bill with her own personal credit card to keep the wells and gate working.
A Step Back
It is time for the Cove to take back control. The board has chosen integrity over convenience. The local accounting service will not provide the online conveniences that the community management companies did. But, having reliable accurate accounting service by a certified professional for a reasonable price, takes precedence. The accounting firm will provide in it’s monthly fee:
- Quickbooks set up, including members information for invoice billing
- Monthly bookkeeping which includes making deposits, writing checks, reconciliation of cash accounts, quarterly billing of assessment dues and preparation of monthly financial statements.
- Yearly preparation of 1120-H tax return
It is expected for the time being, that you will need to pay your assessment by check. For convenience you may want to use your bank bill pay or simply pay your assessments annually instead of quarterly. More payment information will be provided as soon as it is available.
When the integrity of Cove funds are no longer in question, then we can again look to provide more and better online services and automation. There are many services to choose from that provide a wider range of features for less cost than community management companies.