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Does condo association really need financial audit?

Posted on Tue, Apr 27, 2010 @ 06:23 AM

HOA auditAt our 2008 annual condo association meeting, the membership voted to have a "full" audit conducted for the 2008 year and put aside $6,000 for it. At our 2009 annual meeting, there was no vote regarding a full audit but $6,000 was budgeted for it. The current Condo Board doesn't feel that a full audit is necessary since the membership did not specifically vote for it, just a "review" is required.

Is the Condo Board required to have a full audit of the books since it was budgeted?  Many of the membership want a full audit. Help?

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I too would like to know. Our membership had requested no audit for 2008 and later a complaint was made and the board had to have a full audit made.

posted @ Tuesday, April 27, 2010 6:54 AM by Leone Biles

If the budget was approved with that budget item, I believe it is implicit that an audit must be done. My personal opinion is that an audit should be done every year. This does no reflct badly on the board, It is only good financial controls like any other business

posted @ Tuesday, April 27, 2010 8:54 AM by MM

Is your question ...  
does a condo association need an audit to comply with state law and/or the condo docs? 
does an condo association need a financial audit to be financial well managed? 
The answer to your question depends on your reason for the financial audit. 
Cheryl Gowin

posted @ Tuesday, April 27, 2010 9:12 AM by Cheryl Gowin

I believe our condo association is required to have some sort of audit and we do want one because we feel the books are being mismanaged.

posted @ Tuesday, April 27, 2010 1:27 PM by Sue Rachell

audits can be very important 
Not considering an audit draws suspicion :O 
Audits do find errors, problems, etc

posted @ Friday, April 30, 2010 11:52 AM by Troy

What does Michigan Condo Law say about auditing? 
Should there be annual audits?

posted @ Friday, March 11, 2011 6:04 AM by Shirley Burke

I like the topic and I feel that this should be directly proportionate to the complexity of the assocations finances. This is a judgement call and should be an expense that is like any other expense and be weighed and voted on. Financial audits are either complicated or very easy. Really boils down to logic. Are your bank statements and check book balanced, are the statements and finnacials distributed. Mistakes are easy to identify if these documents are visible. So why would a CPA be required if anyone can view, review, critique, and analyze. We have a few bureaucrats that want the expense no matter what for ceremony sake. They feel it makes the properties more attractive to mortgage companies yet those questions are not addressed in real estate cerifications. So the reality is that the property is less attractive to buyers if the administrative cost are not justifiable or exorbinant for the number of units bearing the cost. We have 12 owners and write on average 6 checks a month - so is that really books that justify an audit?

posted @ Monday, April 11, 2011 2:00 PM by Lisa Ciuzio

Since 2007 we did not receive any financial statements or budget and when we ask the board of directors they send us to the management company we hired. for at least 3 years every year is same thing no budget or financial statements please help us we do not know what to do???? ( now the condominium is in deficit and we payed a lot of assessments so far and asking for an other one..Help.

posted @ Thursday, April 21, 2011 1:17 PM by Aldo Noudali

FYI: the auditors that the board hires are contracted by them so the only thing they will look into is what they are contracted to do nothing more. So annual audits are a waste I believe a full audit should be done which costs more but does a complete audit just like the IRS would do.

posted @ Wednesday, April 27, 2011 11:47 AM by Sassy

Too many homeowners in a condo association are afraid to"rock the boat." Most master deeds give individual homeowners the right to examine the books and minutes of the association. A homeowner could give a CPA his/her right to audit the books in his or her stead. It seems to me that even two or more homeowners could chip in together and hire a CPA to perform the audit. Homeowners need to read their master deed and realize they have rights, and they elect the Board, and they can remove the Board. We did that at our complex some years ago as we had real concerns about monies being misappropriated. The audit actually revealed that our maintenance fee was too high as well as some other issues. We were able to get enough signatures on a petition to remove the entire board and lower our maintenance fee by $15 a month for each unit.

posted @ Thursday, June 02, 2011 2:43 AM by m. francis

Who would you notify about having a condo association audit for the state of Nevada. I believe there is fowl play going on and no one has recieved any proposed budget or monthly expense report. Every unit was assessed another $1,000 stating the reserves are too low.

posted @ Friday, January 27, 2012 6:13 PM by kenneth roberts

Where to get help/report a condominium assoc that did not have a FULL audit in the last 20 + years? The property management and pres of the BOARD coincidentallyare "managing "the place for the last 20+years.HELP?

posted @ Saturday, November 17, 2012 9:59 AM by Tony Bocchi

Florida Condominium and HOA's financial reporting requirements are similar under the following: Florida Statutes: 
Florida Chapter 718.111--Condom Act 
Florida Chapter 719.104-Coop Act 
Florida Chapter 720.303-HOA Act 
The level of required financial report depends upon condominium association’s annual revenues.  
•Associations with revenues of more than $400,000 must produce an audit. 
•Associations with revenues of $200,000 to $400,000 must produce a review. 
•Associations with revenues of $100,000 to $200,000 must produce a compilation. 
•Associations with revenues of less than $100,000 must produce a report of cash receipts and expenditures. 
•Community associations with less than 50 units or 50 parcels may produce a report of cash receipts and expenditures, regardless of annual revenues. 
Board Members and Community Association Managers (CAMs) are required by Florida Law to issue financial reports timely. The association is required to provide the year-end financial report to owners or let them know it’s available to them free of charge as outlined below: 
•Condominium Association have 120 days after the fiscal year ends. 
•Cooperative Association have 90 days after the fiscal year ends. 
•Homeowners’ Association have 120 days after the fiscal year ends. 
Read your state condo laws for your particular state.

posted @ Tuesday, December 04, 2012 6:05 AM by Randi

Please accept apology for misspelling in Florida Law List. Haven't had coffee this am...

posted @ Tuesday, December 04, 2012 6:08 AM by Randi

When is an audit/review required in Minnesota for a homeowners association?

posted @ Saturday, August 09, 2014 1:37 PM by Todd Petersen

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