Questionable bldg finances and the Board

I am a new coop owner and I have no exp with the coop living. Recently a shareholder told me that there are only two board members (I thought there were more) and one of them is having financial problems and she wants to make sure money is not being mismanaged. Afterwards, I did some digging around and looked closely at 2017 financials that we received. The bldg did refinancing in 2016 and sold... [more]

I am a new coop owner and I have no exp with the coop living. Recently a shareholder told me that there are only two board members (I thought there were more) and one of them is having financial problems and she wants to make sure money is not being mismanaged. Afterwards, I did some digging around and looked closely at 2017 financials that we received. The bldg did refinancing in 2016 and sold two apts owned by the board and the net after expenses (penalty, pay offs etc) shows a good reserve fund but statement can't account for more then 200k. Also, a special repair line item appears with more then 100k in 2016 with no explanation. I also looked up ACRIS and found the bldg got their first big refinancing in 2008 but were out of funds by 2013 (last statement I have). The bldg has old lobby, and hallways although they have started renovating the lobby. I have no idea how almost a million dollars were spent in 2008 on the bldg. The board increased the maintenance in 2015 by 15 percent and replaced the old management co in 2016 when they did refinancing. The maint is a bit high for the area and we are worried that they would increase it again. They have been sitting on so much cash from last two years but just slowly started renovating the lobby. The Super has another full time job and occupies two apts for his family. Also, he does contracting work for the bldg (renovating lobby etc). He seems to drag out the small jobs and seems to be in bed with two other board members. Is it possible for a coop Board to misuse money? Is management co responsible for managing the finances? Can the money just go missing like this or am I not reading it right? The financial statement is a standard audit report issued by the CPA. The coop is in a gentrifying area and new shareholders are sensitive to the old timers in the bldg and we are lost how to address our concerns. The older owners appear to be disengaged about the bldg. The board almost wants to remain anonymous (Until recently they didn't even do in person interviews of buyers and used to approve buyers via email). No shareholder meetings r done and the Super tells us info on their behalf. I would appreciate any advice and suggestions how to handle this situation. This is my first starter apt and there are 4 other new shareholders who also have no exp with the real estate. This is their first apt as well. Small coop bldg with 60 units and does have a higher tenant ratio (35 to 40 percent). Thanks!! [less]