Ayamonte, March 19, 2022
The Governing Council of the EUC has published the annual accounts for the 2021 financial year on the transparency portal of the EUC website, which must be submitted for approval by the Annual General Meeting convened for the 30 March.
In the last AGM held, the way of presenting the accounts and the lack of an explanatory note was the subject of debate and discussion. The President of the EUC in the Meeting said that the form of presentation and the clarity of the same would be improved.
I have examined the accounting documentation published and given the little time left for the AGM to be held, I write these comments for the information of the members of the Residents Association with the hope that they will be useful to them, pointing out that they are my personal opinions and subject to criticism from better-founded opinions.
This year, finally, a Report of the annual accounts is published, I am grateful for the fact, the insistence has paid off, but it was a matter of law and of doing things well.
In the Annual Report published, The EUC Council inform us that the Accounting Plan for Non-Profit Entities has been applied for the preparation of the annual accounts. That may have been the intention, but they have done it wrong.
I consider that the information provided is insufficient, and does not meet the requirements of the Accounting Plan for Small and Medium Non-Profit Entities.
The Balance Sheet, the Income Statement and the Annual Report form a unit and must show a true image of the assets, the financial situation and the results of the Entity’s activities.
As members of the EUC Costa Esuri, we must know how much of the current fees set for collection has been actually collected in the year in the voluntary period and how much is pending collection in future years, we must know how much has been collected by way of executive procedure or oustanding payment from past years and to which years they correspond.
We must know who the debtors are and the circumstances of the debts, because it is an issue that affects the exercise of the vote, either in person or by proxy, because only owners who are up to date with the payment of their fees can exercise the right to vote. The Data Protection Law is no excuse for not doing so because it does not affect legal persons or commercial companies and the Law provides procedures to protect the identity of individuals.
A trial balance of sums and balances of accounts as of December 31 has not been published, as in other years, which would allow the figures of the accounting documents to be verified.
The Administrator emphasizes an Income/Expenses and Balance Justification document that does not correspond to the Chart of Accounts. Will someone explain to us the meaning of the Initial and Final Balance and who that is calculated?
Some figures of that document are reflected in the Balance Sheet and in the Income Statement but not all of them, the information does not coincide in some documents and in others.
The Balance Sheet and the Income Statement are not presented with the amounts of the previous year in order to be able to compare one year with another as provided in the Chart of Accounts.
Also this year they change the denomination of some accounts with respect to the previous year, making comparison difficult.
The “Long-term bills payable” account appears in the Liabilities of the Balance Sheet with an amount of €9,500 that does not appear in the balance Justification document. To whom is this amount owed?
In the Balance Justification document there is an account “Items pending application” with an amount of 5,264.88 that appears in the Liabilities of the Balance Sheet in “Short-term debts”. Can we know the details and concepts?
In the Balance Sheet, the amount of 5,394,855.48 appears as a result of the exercise, incredible! There is no mention of the result of previous exercises.
I hope that the EUC Council will provide a certificate to the AGM from the BBVA bank of the balance in the account as of December 31 2021 and the Treasurer certifies the balance in the petty cash.
To finish, I do not want to bore you, in view of what has been examined, I consider that the accounts presented should not be approved for the reasons stated. The income is what it is and the expenses are the same, I do not doubt the figures presented but the picture is very poorly painted and explained.
In the next few days I will write regarding the annual report.