EDITOR, The Tribune.
Delaporte Point Limited (DPL) continues to use proxy votes to approve financial statements despite questions by owners.
In January 2015, owners received statements with a charge (no invoice) for over $6,000.00. It was simply labelled “Special Assessment”.
DPL Directors and Officers said it was part of a $600,000.00 Special Assessment. It was put through WITHOUT a vote of owners and WITHOUT VAT invoices as required by law. They said it was for erosion work.
The Directors sent a letter on January 9, 2015 stating:
“Because of Accounting Regulations, DPL Statements of Account cannot reflect incremental quarterly SA payments. Quarterly invoices cannot be issued for the SA without incurring VAT charges. This would mean that VAT would have to be charged to you, the Homeowner, as DPL would be actually issuing 2015 invoices which are subject to VAT.”
It concluded, “We understand that this is a bit out of the norm. However, the DPL Board does not want to have a VAT charge on the Special Assessment, and feel a bit of inconvenience is well worth it.”
In November 2016 (almost 2-years after the Special Assessment), the Directors released Audited Financial statements for the period ending June 30, 2015, which were approved by the Board of Directors on December 15, 2015.
What is clear from these barely readable Financial Statements is that the $600,000.00 Special Assessment does not appear on the Income Statement.
• Perhaps the two directors, who signed, can explain why they signed Financial Statements that don’t show the $600,000.00 Special Assessment as Income; and why Directors and Officers used an overwhelming number of proxies to approve them at the November 2016 AGM even though Bahamian owners questioned their accuracy.
• Perhaps BICA registered accountants and auditors, can explain why the Audited Financial statements don’t show the $600,000.00 Special Assessment as Income; and why another report dated October 10, 2016 entitled “Report to Shareholders” prepared by one of the accounting firms shows $600,000.00 as both Income and Expense in 2015?
The Directors must be transparent and provide the following information:
• Business license filings for the period ending December 2014, 2015, 2016.
• VAT filings for 2015, 2016 and 2017.
• Bank statements for the Special Assessment bank account from inception.
• Contracts and invoices for outflows from the Special Assessment account.
• Proof the Special Assessment money is not commingled with management fees.
• Proxies used to approve June 30, 2015 Audited Financial statements.
• Reconciliation of the Painting Escrow Account.
• Bank statement for the painting escrow account and confirmation the advance payments (which are now being charged VAT for services that may not be rendered for 3-years in the future) are not commingled with management fees.
• Names of Officers and persons signing DPL cheques from 2012 to present.
Also, the Audited Financial statements for the year ended June 30, 2014 were released in November 2015, over a year late. They show as being signed by the Board of Directors on November 14, 2014. This is impossible as the Annual Report for the AGM on November 25, 2014 shows that there were NO Audited Financial statements for the year ending June 30, 2014, only DRAFT financials.
If the statements did exist on November 14, 2014, why weren’t they signed by the two Directors of that period and presented at the November 2014 AGM? If they DID NOT exist, why were they backdated and signed by someone who wasn’t a Director at the time? Why did the Directors and Officers approve the financial statements when owners asked them not to? Why won’t the BICA registered accountants and auditors that prepared the statements explain this?
At a recent meeting, some Directors verbally abused a Bahamian lady who has repeatedly questioned the accounting, and threatened others with legal action. Other fully paid up owners who have questioned the finances have received legal threats, and the Bahamian lady who challenged the accounting is now being sued as evidenced by a mass email sent by the DPL Board showing they are going to put a lien on her home.This is extremely serious, especially in view of the legal threats.
There are legitimate questions about these Audited Financial statements that have potentially serious ramifications for every owner in Delaporte Point. It is hoped that the Directors and Officers, who are guests in The Bahamas, will temper their aggressive behaviour and answer them.
April 24, 2017