The Eastman Free Press
Providing owners with the information they need to make informed decisions.

Sunday, August 10, 2014

Power Given Away

As the comic writer Dave Barry used to say “I am not making this up”. Within the last ten years the ECA Board Powers, in particular those of the Board President, have been expanded regularly by the Board with no formal notification or approval by the community. The Eastman Board of Directors has granted to the ECA Board President, currently Maynard Goldman, the following dictatorial powers in the Board Bylaws:
(f). "....... Additionally, the President shall be the official spokesperson for the Board ........"
(g) "the President shall from time to time inform the Board of the establishment of any Standing, Ad Hoc or Advisory Committee that the President deems necessary and shall advise the Board as to the membership of said Committees and their powers and duties."

Given “Item g” above, there is no difference in the powers of Mr. Goldman and those of a dictator with a “puppet” Council and Board. The Board President has used these powers to assemble a Committee of his agenda supporters that in private (non-public) meetings created "Enterprise" Financial Statements as he (and his Board) empowered himself to do. Another of Mr. Goldman’s major accomplishments, using his self-granted powers, has been creating a Financial Statement declaring golf “profitable” while at the same time, membership is going down. Here is how he did it:

He has had the financial reports of the community re-worked transferring almost $150,000 worth of what formally were golf course expenses to other expense categories such as G&A. These expenses include what General Manager Ken Ryder has decided to call “employee overhead” and includes costs such as: golf payroll taxes, golf employee retirement costs, health-insurance costs, Workmen’s Compensation, unemployment taxes etc. The process of creating misleading golf financial reports begins in FY2012 and culminates in FY2014.

Whether this was why we changed auditors this year I cannot be sure, however it does appear to be part of the scheme to mislead ECA members as to what golf really costs. The magnitude of the golf cost shift can be seen by looking at the Audit for FY 2012 which shows:
·      Golf Course expenses of $777,389----now lowered to $629,876
·      General and Admin of $944,170----now increased to $1,137,672
The Budget of FY2014 goes on further to show all the expense numbers from the 2012 Audited Report re-stated under 2012 Actual including the above changes.

In collaboration (collusion?) with the former Council Chair the Golf Committee reporting relationship was changed from the Council to the Board AND its members given DIRECT VOTE as to golf committee members.

Mr. Goldman's rhetoric and power is above any ECA owner or  ECA governance entity. When you have empowered yourself to speak for the Board to the community, you can say whatever you want, subject to no other authority within the community. He can change the financials in private without public explanation and comparative views (old vs. new).

Consider Mr. Goldman's actions in assembling the VDE Commissioners so they willingly violated the Right to Know Law of the State of New Hampshire at their Feb 7, 2012 meeting. Mr. Goldman brought together the following attendees:
·      ESC Board Representative Brad Moses
·      Eastman Community Association (ECA): General Manager Ken Ryder
·      Assistant General Manager Brian Harding (also manager of ESC)
·      Board President Maynard Goldman
·      Golf course Superintendent Mike Gornnert (a curious participant given that the ECA General Manager has stated that the golf course no longer needs the effluent from the sewer system)
Power like Mr. Goldman has is given to a ruler by:
·      A Community who erroneously trust governance members and fail to inspect and verify that trust
·      A Community who emotionally relinquish their capacity to think independently based on proper due diligence
·      Members who gain financially by lowering their own costs of ownership
·       A compliant community
Our governance is a quagmire of complexities meant to keep Eastman members ill informed and/or ignorant.

Submitted by Robert Logan 

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