The receiver's most recent (sixth) report, as presented in court on 11/4 is now available.
To view or download the report, click HERE.
(Please note that although the heading of the report says it is the fifth report, it is actually the sixth)
To view or download the report, click HERE.
(Please note that although the heading of the report says it is the fifth report, it is actually the sixth)
**UPDATE**
Transcript from 11/4 hearing now available by clicking HERE.
**UPDATE**
Full Audit Not Possible
Most notably, the report indicates that a certified audit of Cedar Run's financial records during the Sher/Shaw tenure (August of 2012 through February of 2015) CANNOT and WILL NOT be done (item #14). This is due to a myriad of issues with the way the association was run under the Sher/Shaw and in part due to the legal complexities of Cedar Run at present day.- There was essentially NO FINANCIAL SYSTEM or accounting procedures under Sher/Shaw
- No meeting minutes or backup documentation on MAJOR transactions
- Multiple tax returns not filed, no financial statements or bank reconciliations
- The list could go on forever.......
Clarification
While Frost was performing many tasks that one could consider to be 'auditing' the books, the report they produced (all 3000 pages of it) is NOT an audit. The over-simplified explanation is that the report is a reconstruction of the financials in order to properly determine what the HOC's assets & liabilities are, determine the correct balances for all 408 owner accounts, and put the records in order so an actual audit could then be done. This was needed because (as mentioned previously) the Sher/Shaw group essentially had no real financial system in place.
In theory, once the Frost Report was complete, a different CPA firm would then perform an audit (Frost cannot because it would be considered a conflict). But in reality......well, you know the rest.
Current Financial State
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| Cash Assets as of 9/30/15 |
- Shaw Legal Services no longer being paid with homeowner funds (though Anne/Caryn Shaw are fighting desperately to change this)
- Reduced rate and reduced number of hours spent by receiver and receiver's staff
- Settling of unpaid assessments due to the HOC from owners (though there is much more that still needs to be settled)
Frost Report Available Soon
The court order requires the receiver to 'publish' the report, but it is unclear how it will actually be distributed to homeowners. If a true, correct, and verifiable copy of this report becomes available soon enough, you may just see it on the blog first.
Please stay tuned!
We'd love to hear from you!
(224) 544-9058
thank you for the up date hopefully the court will prosecute these criminals
ReplyDeleteQuestion, if Sher/Shaw never filled taxes for the Cedar Run Corporation, can not the Internal Revenue Service some how get involved? If, I am correct all Corporations must file taxes.
ReplyDeleteFirst, they did file for one year, but there are still some serious issue with the way they filed.
DeleteSecond, you are absolutely correct that all corporations, including nonprofit organizations, must file.
Third, the IRS and Illinois Dept. of revenue are involved, but only because the receiver and FR&R engaged them in order to rectify the situation. They will need to file past tax returns (and we will probably pay penalties). They will most definitely need to file an amended return for the one year that Sher/Shaw did file due to a myriad of issues. This will likely be explained in detail in the Frost Report.
A very real concern as well pertains to the misclassification of HOC employees. Most were classified as contractors, but labor laws classify them as employees. There could be serious consequences/penalties for this.
Lastly, we know that the HOC (of which we all own a small share) will suffer the consequences of the above issues. But it is unclear if Sher, Shaw, or any of their board members will be held personally accountable.
They definitely should be held accountable. We need to ban together as a community and take care of business. They should never be able to do this again.
DeleteI am so tired of seeing and hearing about the HOC which is a change that none of us ever authorised as I remember, along with everything else we never authorised like paying his family to sue us.
DeleteThe acronym 'HOC' is something that Sher started......BUT the correct name of what we've been calling our 'Master Board' is in fact Cedar Run Homeowners' Corporation. Sher's use of that term had political implications (thumbing his nose at his predecessors), but it was not technically inaccurate.
DeleteThe HOC acronym has been used by all the attorneys in court (per the transcripts) and in a lot of their written motions. The receiver has also adopted that acronym.
We can call it something else if we want, but it might confuse some who read this blog if we don't use nomenclature that is consistent with all of the supporting documents.
THIS RECIEVER HAS NO CLEW ON MANAGEMENT HELLO? SNOW SERVICE SUCKS SOMEONE NOCK ON ZACS DOOR GET HIS CREW OUT TO GIVE US SERVIICE !
ReplyDeleteSure let's bitch about these guys even though they are still out there plowing now as you write your stupid comment.
DeleteInstead you wanna bring Zac back in? Who cares if he doesn't (and never) had insurance? Let's not nitpick over minor details.
I tell you what...get Zac to pay us back for all the equipment WE BOUGHT HIM and show a certificate of insurance and MAYBE we'll talk.
Until then, QUITCHYABITCHIN!
(and lay off the sauce too while you're at it)
It's 12:03 A.M. Monday morning and they just went by on the sidewalk with a snow blower. Still working!!!!!!!!!!!!!!
DeleteCorrection It was Sunday morning. However if you want to bitch it is about 9:15 A.M. Sunday and no sign of that silly commodity called SALT, just what the village put on Cedar Run Dr..
DeleteJust a correction Sunday morning not Monday. Also, alot of snow removal companies were backed up this weekend. This was a big storm and snow removal companies have more then 1 customer, and generally do the larger ones first. Be happy we got plowed out, some places still are not.
Deletehome owners if you have any comments or concerns please stop at office club house than comments on this blog thank you for your support& patience .sincerely your neighbor
ReplyDeleteI just called The Receiver's office. The streets and sidewalks should be salted today.
ReplyDeleteWell, I have only seen Spruce salted and very slight. So...much for calling. I hope they do the courts and sidewalks as told. It is real icey in some spots.
ReplyDeleteRegarding parking spots...since there are open spots can I purchase one for $120.00? I have 2 vehicles and would like to assure a place for my guests to park. I know there are open spots available. I have 2 vehicles registered to my residence.
ReplyDeleteThe policy is that you must have more than two registered cars before getting a parking spot on the street. This is to ensure that all owners use both their garage and driveway spots before taking up a street spot.
DeleteYou can always call the receiver at 847-866-7400 or email them at hsd@hhsg.net if you'd like to ask for an exception, but the policy is pretty clear on this issue.
If there are spots that aren't sold, they should be designated for guest parking with temporary tags. No tag and you get towed!!
DeleteNobody should "own" a spot if they don't have 3 (registered) cars or more.
Thank you for your responses. Just feel it's unfair to have open spots on the street and no places for guests. I agree these spots should be designated for guest parking but unsure how we could do that. I feel bad I can't reciprocate when invited to friends homes.
DeleteYou have a very valid concern, and you are certainly not alone. The current parking policy (which is mostly a continuation of the Sher/Shaw policy) does almost nothing to address guest parking.
DeletePrior to the Sher group takeover in 2012, there were no assigned spots, and parking was on a first-come-first-served basis (overnight parking required a hang tag). All owners were given twelve one-time-use, temporary hang tags per year for guests. Guests could park in any open spot, but spots would get more and more scarce later in the evening.
As you can see, there is no single parking policy that is perfect for all of our needs. This is an ongoing issue that a new board will have to deal with.
There seems to be so many residences that have multiple cars. Maybe a licensed driver for each vehicle would help with this parking issue. For instance, there is a certain residence that has 5 vehicles....3 licensed drivers. Don't know how they afford the insurance on extra vehicles. (And they do not use there garage for parking). Makes no sense.
ReplyDeleteQuestion? this management going to have CHRISTMAS lites put up at the club house, past years it was always decorated .happy holidays to all cedar run residents ,
ReplyDeleteOK, I had 2 visitors at about 8:30 P.M. Saturday night till 1:00 A.M. Sunday morning 2 CARS. No way to get a visitors pass and where would they park anyway pass or no pass, so I parked at Walmart and they used my garage and driveway. As embarrassing as it was I had to explain our parking program. I told them about the moron that started it ( sher ) and the professional management company that continued it. I had to explain it several times and got tired of explaining it. They patently refused to believe anyone would intentionally be that stupid. Well we know it is true and we have to live with it. Just a thought here, a renter with 3 cars has more rights than any owner with just 1 or 2 cars ( what is wrong with this picture ) or this place for that matter !!!!!! P.S. do you think I'm pissed about this HELL YES.
ReplyDeleteRenters are suppose to have last picks for parking spots. I am seeing alot of vehicles parked in spots without the proper tag. So, is the parking program being enforced? I feel it just another way for someone to make money. And, it would be nice to see the Clubhouse decorated for The Holidays!
DeleteYES, to all the comments this turned out to be a cash cow to those who have permission from judge Garcia this problem started from zink /alma ?sher/shaw saw opportunity to rip us all off without proper lisenceing the contractors or filing with I.R.S I love this erea but its time we all realize this isent over and when it is?we are going to pay higher asssesments !homeowners if you look at the realastate market for cedar run homes are selling in 22 days on market? YES homes are selling people are fed up and now is the the time to SELL no lites on club house or a holiday party for us shows only one thing this management company has to go A.S.A.P!!!
ReplyDeleteNo lights or holiday party....GOOD!! Our assessment money isn't there to pay people to hang xmas lights. If you want lights, volunteer to do it!
DeleteAnd holiday parties were nothing but a political ploy by Sher.....spending THOUSANDS of dollars of our money on invitations, signs, and CATERING THE PARTY!!!
The judge would flip if the receiver were to spend money on things like this.
any new info ?
ReplyDeleteThe accounting report is now available to all homeowners. You can pick up a printed copy at the clubhouse or request an electronic copy by emailing the receiver at hsd@hhsg.net. We will also post it on the blog in the next couple days.
Delete