Raleigh Square Condominium Association currently charges $100 per day — cash only — to rent the Clubhouse. This fee was increased from $50 to $100 on November 1, 2023, with the Board of Directors stating that the increase was necessary due to “the rising cost of paper products and cleaning supplies.”

However, the stated justification is now in question. In a recent meeting with homeowners, the Board acknowledged that Clubhouse rental fees are given directly to the Social Committee. If true, this raises a serious concern: the fee increase may have been adopted under false pretenses, without a legitimate operational basis, and without transparent disclosure of the actual use of funds.

Additionally, it appears that Clubhouse rental income is not reflected in the Association’s official financial records. Regardless of payment method, all income — including cash — must be accurately recorded, deposited into the Association’s operating account, and included in financial statements and bank reconciliations. Failure to do so constitutes improper cash handling and a breach of the Board’s fiduciary duty to the community.

Board members are legally obligated to manage funds with integrity and transparency. Undocumented cash income:

• Violates accepted accounting standards,
• May expose the Association to liability or audit risk,
• And could invalidate fidelity or dishonesty insurance coverage, leaving the Association financially exposed in the event of fraud or theft.

So the question must be asked: Where is the cash from Clubhouse rentals really going? Without proper recordkeeping, homeowners have no way of knowing. The Board must record each and every rental transaction and provide documentation to the membership as part of routine financial reporting.

There are also concerns of unequal access to the Clubhouse. Homeowners have observed non-Board members using the Clubhouse informally — for private gatherings, card games, TV watching, and socializing — outside of scheduled or advertised community events. All members pay into the Association and help fund the Clubhouse’s maintenance, utilities, cleaning, internet, and cable TV. No owner should have preferential access.

Given these concerns, the Clubhouse rental fee should be reduced or eliminated, particularly while there is no reliable or legally compliant system for accounting and disclosure. Until the Board demonstrates full financial transparency, including the deposit of all rental income into the Association’s official accounts, and includes such income in monthly reports, this practice undermines the trust and fairness expected in community management.