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BobM7
(Florida)
Posts:2
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| 03/30/2008 4:48 PM |
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| Our HOA has its annual meeting in March. We usually do not have an "Audited"(done by independent CPA) until May. Some members are insisting we have audited report by mid March. Should we change the the fiscal year to allow this or is May reasonable for the "Audited" financial? We produce the financial report by end of March. The income and balance sheets are published on the web each month. In the past there has virtually no difference between "Audited" and "Unaudited". |
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TimH1
(Alabama)
Posts:13
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| 03/30/2008 5:23 PM |
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| As with most else here, check the HOA documents to see what may be required, if anything. If the audit corresponds to the HOA's fiscal year, may be no reason to alter; your CPA might also have input. Most likely this is a Board decision (timing and whether to do at all). Note that there is a difference between a "compliation" and a "full audit"; a member of our Board, who is also a CPA, thinks a compliation is fine for most HOA's. I wouldn't let a few disgruntled members dictate policy, unless there is adequate reason to suspect foul play with the money. Budget recaps should be acceptable, if the audit is performed annually, and no issues have been noted to date. |
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SusanW1
(Michigan)
Posts:1804
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| 03/30/2008 5:53 PM |
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If you can get a CPA to do an audit in March, you're lucky.
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DonnaS
(Tennessee)
Posts:2509
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| 03/30/2008 6:10 PM |
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Bob,
It sounds like your association is in compliance with the Statutes. As you may know, there are different levels of financial accountability required by the State Statutes, depending on your annual income and your statement seems to acknowledge that you also are in compliance. Below is the only answer that you need for the membership wanting a different date for the financials to be ready.
720;303
(7) FINANCIAL REPORTING.--Within 90 days after the end of the fiscal year, or annually on the date provided in the bylaws, the association shall prepare and complete, or contract with a third party for the preparation and completion of, a financial report for the preceding fiscal year. Within 21 days after the final financial report is completed by the association or received from the third party, but not later than 120 days after the end of the fiscal year or other date as provided in the bylaws, the association shall, within the time limits set forth in subsection (5), provide each member with a copy of the annual financial report or a written notice that a copy of the financial report is available upon request at no charge to the member. Financial reports shall be prepared as follows |
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DonN
(Michigan)
Posts:230
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| 03/31/2008 2:57 PM |
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The fiscal year and the annual meeting should be arranged so that the CPA's report (review or audit) is available before the notice of the annual meeting. Results from the CPA's reports should be summarized in the notice, and copies of the CPA's Report should be available to members upon request.
One of the major agenda items at the annual meeting is the financial status. It can't be done well and with trust without the CPA's report prior to mailing of the notice. |
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Don Nordeen
Governance of Property Owners Associations
http://swagman.typepad.com/poa_governance/ |
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MaryA1
(Arizona)
Posts:1888
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| 03/31/2008 3:08 PM |
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I agree with Don that the audited financial statement should be available for review at the annual meeting. However, in most docs, the date for the annual meeting is specified. If it is sooner than the fiscal year-end then to have the financial statement available would require one of two things to happen:
1) the fiscal year must be changed, or
2) the gov. docs. must be amended to change the date of the annual meeting.
I'm not sure what the easier process would be. Of course if the gov. docs don't specify when the annual meeting should take place, it would be very easy to change that date to correspond with the date when the audited f/s would be available.
Mary |
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BobM7
(Florida)
Posts:2
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| 03/31/2008 3:32 PM |
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| In reviewing(yesterday) Florida Statutes revised July 2007 it appears the financial statement must be available 120 days after fiscal year end. Annual meeting is in March and this is when we elect board members. This association is transparent in that the income, expense and balance sheet is posted every month on website. It is nearly impossible to have a discussion on financials with 80 people in the meeting. Past experiences with othe HOA's produced an unaudited financial in 75 days but required additional 45 days to get audited done by outside firm. If we change fiscal year to October we could meet the the March deadline. How much work would it be to change fiscal year? As with many other HOAs this is a big issue with a very small minority. |
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MaryA1
(Arizona)
Posts:1888
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| 04/01/2008 9:40 AM |
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| Ask your CPA. I'm not sure, but it may require approval of the IRS. |
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SusanW1
(Michigan)
Posts:1804
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| 04/01/2008 6:49 PM |
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You can give the members an "unaudited report" at the meeting, and tell them that an audited report will be provided to anyone who requests it when you have it.
Or - have a group of people do an "audit review" of your figures for the meeting.
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SusanW1
(Michigan)
Posts:1804
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| 04/01/2008 6:52 PM |
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Your first post said that "some members insist on an audited report."
That does not mean your documents require it. You do what you can do. I suggest that you propose to move the annual meeting to suit these folks. See how that goes over.
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