March 6, 2010

McGuffey Park Homeowners’ Association

P.O. Box 1365

Ozark, MO 65721

HOA Members,

I have completed the annual audit of the McGuffey Park Homeowners’ Association books for the year ended December 31, 2009. During this fiscal year, the administrative duties for maintaining the HOA have been transitioned from Joanne Bennett to Jill Perryman and Kirstin Beckham. Joanne transferred the existing bookkeeping records and software to Jill to maintain consistency in our record keeping. Joanne and Jill have done a commendable job in maintaining the records in an orderly and consistent manner. The funds of the association appear to be properly handled and accounted for. No significant discrepancies were noted. Additionally, all revenues appear to be properly recorded and reported. A few recommendations were made to the Board of Directors following the 2008 audit. Included is an update on those recommendations.

Ø Recommendation: Dual signatures on all checks.

Update: With only three Board members, the dual signature clearly indicated approval of the majority of the board for the respective transaction. However, now that a non board member is keeping the books, it is recommended that she and one other board member sign each check. Since the transfer of duties, this has been implemented and confirmed through audit work.

Ø Recommendation: Significant decisions made by the Board of Directors outside of general HOA meetings should be documented in meeting minutes. This provides clear authorization for audit confirmation. Documentation of the discussion/decision process will also protect Board members should disputes arise at a later date.

Update: All HOA meeting minutes have been maintained and are available for review. No board meetings were held outside of the scheduled HOA meetings. All board members are aware of this recommendation for future meetings.

Ø Recommendation: With the exception of the HOA approved accounting services provided by a current Board member, the Board of Directors should refrain from payment to Board members for services rendered. Efforts should be made to obtain services from non HOA Board members. If necessary, payment to Board members should be approved by the remaining Board members not providing services and reflected in documented meeting minutes. Documentation on comparable service rates/bids should also be retained to support the payment amount. Payments to Board members could create the appearance of impropriety and reflect negatively on the HOA.

Update: Based on audit review, all payments to board members were expense reimbursement for supplies. Receipts were provided accordingly. To ensure full disclosure and HOA awareness, it is noted that spouses of two current board members are serving the HOA in the secretary/treasurer role and for the daily pool duties. Payment for these services did not exceed the predetermined rate, and appear to have been handled correctly.

This letter and the 2009 Income Statement for McGuffey Park HOA will be posted on the web site. If there are any questions, please contact me at judyaug@gmail.com or 582-0332.

Respectfully submitted,

Judy Aug