Nautica’s HOA budget is more than $600,000 a year. Previous audits have also identified problems and one homeowner said she had to file complaints with the state to see HOA documents. Read the article………………………..
When It’s Time for an Audit – Covering the Basics for Multifamily Boards
When the average American taxpayer (or tax-dodger, one supposes) hears the word “audit,” they’re likely struck with a feeling somewhere between annoyance and terror—usually because being audited means that something has been found amiss in their filing. For businesses that rely on the accuracy and timeliness of their financial records, however, including condominium and homeowners […]
What can residents do when the HOA or condo board hasn’t posted audit or held elections? (FL)
Question: According to the Condominium Act, “each year the board of administration must prepare and complete a financial report of the previous year’s financial activities within ninety (90) days following the end of the Association’s fiscal year, or on such other date as the bylaws of the association require.” Read the Q&A……………………………
Your Accountant Wants You To Know About Section 57 Of The Condo Act (MI)
Condominium associations with annual revenues exceeding $20,000.00 should take specific note that Section 57(2) of the Michigan Condominium Act provides that an independent certified public accountant must perform an annual review or audit of the association’s financial documents, including its books, records, contracts, and financial statements. Read the article………………………..
Your Accountant Wants You To Know About Section 57 Of The Condo Act (MI)
Condominium associations with annual revenues exceeding $20,000.00 should take specific note that Section 57(2) of the Michigan Condominium Act provides that an independent certified public accountant must perform an annual review or audit of the association’s financial documents, including its books, records, contracts, and financial statements. Specifically, Section 57 provides as follows: Read the article………………………..
Everything You Need to Know About Community Association Audits
Conducting an audit is an excellent way to confirm the financial health of your community. An audit can also highlight areas of financial risk, such as budget issues, reporting mistakes, or even fraud. Whether highlighted in covenants, required by statutes, or driven by proactive financial management procedures, most associations start thinking about their audits in […]
IRS audits Lake Forest POA (AL)
It’s been a tumultuous time in Lake Forest with a faction of homeowners publicly questioning the property owners’ association board and alleging improper financial dealings. Read the article………………………..
How To Survive An HOA Audit (CA)
HOA audits can be a stressful experience, but they don’t have to be. Follow the tips and tricks in this blog post to ensure your HOA audit goes as smoothly as possible. One of the most important things you can do to prepare for an HOA audit is to keep good records, including everything from […]
HOA Audit: What Can It Say About Your HOA’s Financial Health?
An HOA audit is an instrument that can help you measure the financial health of your association. Unfortunately, not all associations take audits seriously — and therein lies the problem. Read the article………………………..
Everything You Need to Know About Community Association Audits
Conducting an audit is an excellent way to confirm the financial health of your community. An audit can also highlight areas of financial risk, such as budget issues, reporting mistakes, or even fraud. Whether highlighted in covenants, required by statutes, or driven by proactive financial management procedures, most associations start thinking about their audits in […]
Ask The HOA Expert
Question: A newly elected board is taking over for directors that have been in charge for years. Is it time to audit the books? Read the Q&A……………………………….
What can condo, homeowner associations do to prevent possible fraud activities? (FL)
With potentially millions of dollars at risk, Collier and Lee counties community associations have a very vested interest in monitoring their property management companies. At least 30 condo associations in Collier County are deep into forensic audits after news that their management company, American Property Management Services of Naples, is facing a $100,000 civil suit […]
HOA Audits: What You Need to Know
Responsibly managing finances is a big part of a community association board’s job. Homeowners trust board members to use assessment funds to preserve the value of their homes and the neighborhood overall. Completing financial audits as needed or required by your association goes a long way in fulfilling this board duty. Read the entire article……………………………….
How Condo Boards Can Make Sure the Sponsor Pays His Share (NY)
At newly built condos, it’s common for construction problems to crop up. But accounting and record-keeping are equally important, as one of your clients recently discovered. What’s the story? Read the entire article……………………………….
HOA Homefront: Who’s watching out for our association’s money? (CA)
Q: Are there laws governing the responsibilities and obligations of HOA boards, especially those related to limits on raising the monthly assessments that each resident in the community pays? Read the Q&A…………………………………..
Auditing Requirements for Condominium Association and HOAs
The decision to conduct a financial review or audit can be difficult for many common interest communities. The expense, effort, and length of time all play a role in the decision. For most condominium associations and HOAs, financial reviews are fairly inexpensive, are performed more frequently, and just make good business sense. Audits provide a […]
Auditing Requirements for Condominium Association and HOAs
The decision to conduct a financial review or audit can be difficult for many common interest communities. The expense, effort, and length of time all play a role in the decision. For most condominium associations and HOAs, financial reviews are fairly inexpensive, are performed more frequently, and just make good business sense. Audits provide a […]
Exposed! True Tales of HOA Audit Trouble
We conduct a lot of HOA and community association audits and related financial procedures each year. The vast majority uncover nothing more than a few easily corrected mistakes or minor procedural errors – a testament to sound financial oversight by boards and property managers. Read the article……………………………….
2nd Edition: HOA Audit Tales of Terror (GA)
Halloween is around the corner and along with scary clowns and vampires come HOA Audit Tales of Terror from your BJM team. The word “audit” alone can be scary and bring up fears of long hunts for missing receipts or accusations about erroneous accounting treatment. In reality, most audits confirm sound fiscal procedures and financial […]
Surprise Audits Not Authorized (FL)
Q: Does Florida do unannounced audits of condominium or homeowners’ associations to see if they are conforming to the relevant statutes? For example, some of our board members don’t want bids for a contract even though it is required by statute. As President, the argument I got from some board members was: “who’s going to […]
Cost Of HOA Audits
A homeowners association (HOA) audit can be expensive. Depending on your client’s needs, HOA audits cost between $4000 and $6000. This is because an HOA audit is a very thorough, time-consuming process that must be performed by a certified public accountant (CPA). However, the cost of an HOA audit is a valuable investment for any […]
The Cost of HOA Audits
Wondering if an audit is really necessary? Not all state laws require that HOAs conduct yearly audits, yet many associations budget for them anyway. Read the article…………………………
When is an annual audit required? (IL)
Q. Do condominium associations need to have an annual audit of their financial statements by a certified public accountant? Read the Q&A………………
8 Secrets to a Successful Audit
From serving as a formal method of checking financial methods and procedures, to identifying accounting weaknesses and correcting financial problems, an audit is an extremely important step in fulfilling a board’s fiduciary responsibility for the financial prosperity of an association. The following are eight secrets to conducting a successful audit. Read the article……………………
The Importance of an Annual Audit
An audit is the highest level of review of an association’s financial books and records and is typically required to be performed annually by an association’s declaration. Here are three reasons why annual audits are important for your association. Read the article…………………..
HOA Audits and Preparedness
Sometimes the word “audit” makes people nervous and uneasy, but the reality is they are part of any business. Your HOA should be prepared and know how an audit works and when it’s time to do one for your community. The first thing your board needs to do is understand when and why your HOA […]
Fight Fraud With Board Oversight and Strict Internal Controls (NY)
As auditors, we’re required by professional standards to make certain inquiries of the boards in connection with our audit. One of the topics we discuss is their internal control procedures. We assess the risk of material misstatements in the financial statements and consider the co-op or condo’s internal controls as we plan our audit. We […]
An Audit of the Association’s Financial Records is Always Wise
When it comes to year-end financial obligations of associations, most boards are aware of general requirements, such as providing financial statements to the owners, finalizing a budget for the upcoming year, and completing a board-review of the association’s financial records. From time to time, boards may also opt for a more thorough assessment of the […]
Financial Review vs Audit – What HOAs and Condominiums Need to Know
The end of the year is approaching fast. One of the many things homeowners associations (HOAs) and condominium associations need to decide on is whether to do a financial review vs audit. While the two may sound similar, they are two very different tools an association can use to see where their finances are at […]
What board directors should ask condo auditors
An independent Chartered Professional Accountant (CPA) prepares, audits and issues the financial statements of a condominium corporation. In doing so, he is reporting to the owners of the condominium units the state of the financial position of the corporation. However, before issuing the final report, he needs the approval of the board of directors, who […]
Condominium audits uncover four common issues
With few exceptions, the Condominium Act of Ontario (the act) requires an independent auditor to perform an annual audit of the financial statements of a condominium corporation. Sections 60 and 71 underline the rights and responsibilities of an independent auditor. It’s important for unit owners to understand that an independent auditor does not prepare the […]
The “Rep” Letter: the Biggest Little Three-Letter Word in Your Annual Audit
Before the accountant completes the annual audit of your co-op’s or condo’s financial records, the board and the managing agent will be asked to sign a letter acknowledging that they, not the accountant, have primary responsibility for the financial statements and that to the best of their knowledge the statements are correct. Read the article………….
Understanding Community Association Audit Fees
Q: We received two bids from different accounting firms for the annual audit of our association. One was for $5,000 and the other was for $1,500. Why is there such a big difference in price? Read the article………..
What to Expect from the Audit Process
Our firm is considered engaged to perform the services outlined in this proposal once the engagement letter is signed and returned to our office. Once we receive the signed engagement letter, we will contact the previous auditing firm, if any, for required information we will need to begin the audit. We will also work with […]
Is Your Association Prepared for the Annual Audit? Get the Checklist.
As your Association nears the end of its fiscal year, think about the annual audit. This is a good time to review items the Association will need for the annual audit and it can help to avoid delays in receipt of the audit report. Listed below are the common items needed during the course of […]
Understanding CPA Service Levels: Compilation, Review and Audit. A Primer.
The controlling documents of most co-ops and condominium associations outline the requirement for the preparation of your financial statements. In addition, several states have minimum financial statement requirements. It’s important for boards to understand that there are different levels to what a Certified Public Accountant (CPA) reports. Here’s a primer for condo and co-op board […]
Understanding CPA Service Levels – Compilation, Review and Audit
The By-laws, CC&R’s or other controlling documents of most community associations delineate the requirement for preparation of financial statements of the Association. In addition, several states have minimum financial statement requirements. Read More……
The Annual Audit -Taking Your Association’s Financial Pulse
The health of your association’s finances can have a dramatic effect on the board of director’s ability to effectively maintain the property’s assets and value. In order to keep the property’s assets in good order and keep home sales on the rise, it is crucial that the board Read more………
Why you should pay special attention to closing your books this year
I’ve been posting the condo and HOA news for over 8 years now. During the first 6 years, I might have run across 3 or 4 cases of people stealing from an association. During the last 2 years, I’ve seen over 20. And most of them haven’t been for small amounts. The scams were often […]