A Needed Transition: Turning a Troubled Community Around

See how Action’s thorough transition process uncovered 40 years of billing errors, recovered $50,000+ in revenue, and strengthened vendor oversight for one community.

A community made the transition to Action, and the board knew there were challenges. What became clear through Action’s comprehensive transition process was just how many issues had gone unchecked over the years.

From financial discrepancies to vendor oversight and utility billing, Action’s transition team conducted a detailed review of the association’s records, financials, billing, governing documents, policies, and vendor relationships. That diligence quickly uncovered opportunities to correct errors, recover funds, and strengthen the community’s financial and operational foundation.

A 40-Year Billing Error

During the review of the association’s utility accounts, Action identified an unfamiliar address associated with one of the community’s water lines. Further investigation revealed that the association had been paying for a water meter serving a neighboring property for more than 40 years.

Action worked directly with the local water district to correct the account and eliminate the unnecessary expense, immediately protecting the association from continued financial waste.

Correcting Resident Billing

Action’s transition team also compared resident billing against the current fiscal-year budget, CC&Rs, and unit square footage. The review revealed discrepancies between the amounts being billed to residents and the amounts established by the association’s governing documents and budget.

The issue was corrected beginning with the first billing statement under Action’s management.

The board president recognized the team’s efforts, stating:

“I commend you and the AR team’s valiant effort to fill this gap!”

Recovering More Than $50,000 in Laundry Revenue

The community had six laundry rooms serviced by a third-party vendor. During Action’s audit of the association’s laundry revenue, the team discovered that the vendor had been crediting the association for income from only five of the six rooms.

Action worked with the vendor to reconcile the accounts and recover more than $50,000 in revenue owed to the association.

Strengthening Vendor Oversight

The transition review also uncovered a significant risk involving the community’s vendors. None of the vendors previously servicing the association had the appropriate insurance coverage for the work they were performing.

Action addressed the issue by reviewing vendor requirements and helping ensure the association worked with qualified, properly insured professionals moving forward.

The Value of a Thorough Transition

Each of these discoveries came from the same fundamental step: taking the time to thoroughly understand the association before moving forward.

Action’s transition process gave the board a clearer picture of its financial position, corrected long-standing billing issues, recovered previously unrecognized revenue, and addressed vendor-related risks.

For this community, the transition was an opportunity to uncover what had been overlooked, correct what needed attention, and establish a stronger foundation for the future.

That is the Action difference: a transition process designed to look closely, ask questions, and make sure nothing important gets missed.