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r/HOA
2
Posted by1 month ago

Question about Audits

I just joined our HOA board as President two months ago. Our board completely turned over this year - our longest serving member signed on in July of last year. The HOA has been a complete mess. The irrigation for common areas has leaks everywhere, landscaping updates have been promised for years and have never happened, and the previous board didn't do anything, to be honest.

Our management company just sent us the audit for this year from last year's finances. The first sheet says that we agree that the management company gave the auditors all of the correct information.

None of us on the current board has any idea if any of this is true.

We have no idea if this audit is correct or not, and they are asking either myself as President or the Treasurer to sign it.

Anybody have any experience in this? I know these wouldn't be legal opinions, I just thought I can't be the first person in the world to have this happen and would see if anybody has any suggestions.

9 comments
67% Upvoted
level 1
· 1 mo. ago
💼 CAM

This is generally a procedural thing. But you can ask the management company to show you what they sent.

Basically, the CPA is removing themselves from the equation saying "our work is correct, provided that you certify what we started with was correct."

6
level 2
· 1 mo. ago
🏘 HOA Board Member

not sure why you were downvoted, this is the correct answer.

OP can also ask the retained lawyer for guidance.

OP - as a new board and new president, I highly suggest you appoint a treasurer or create a finance and accounting committee. Your management company should be able to provide everything, but you are responsible to provide oversight. You also may want to get a copy of the budget and consider a reserve study and start by building out a financial foundation as your first big task. Until you know the money situation (past, present, projection for operating and capital) you really can't do anything else in an educated way.

2

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Created Jan 9, 2013