What are the financial reporting requirements for New Jersey Homeowner Associations?
Question:
We present a budget for approval at our annual meeting every year. Actual cash on hand and expenses paid from the previously year are all disclosed.
We are a small HOA that consists of 23 privately owned homes. Our total dues are $25,300 a year and we base them on what we need each year to pay for actual expenses. Nothing at of the ordinary. Bank statements reveal every penny in and out with details and are made available to all owners if they request.
We recently got a new owner who is a CPA. He's insisting we need to provide a Profit & Loss statement, balance sheet as well as the detailed budget. He insists its the law.
We a non profit corporation and file a one page tax return the non profit corp.
However, we have managed to save over for $40,000 in a savings which may been needed for a potential project.
Do we need to disclose that as income and pay taxes? And are all these other financial reports required by NJ Law?
We've never been asked for them before and it seems a bit over kill for such a small amount of money.
Answers (7)
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