Get 1 year of free community web site hosting from!
Wednesday, October 20, 2021

HOATalk is a free service of

Easy to use website tools to help your board
Only members have access to all features.
Click here to join HOATalk for Free! Members click here to login and access all features.
Subject: Condominium board To Audit or Not to Audit ?
Prev Next
Please login to post a reply (click Member Login on the menu).
Author Messages


10/21/2005 3:30 PM  
I am a member of a new condominium board that was elected back in May 05, the board consists of 5 members, there are no surviving members from the last board. We have our property managed by a management company since 1997, there are 107 units with a yearly budget of approximately $375,000.00. To the best of my knowledge we have never had a audit of the management company, they do hire an accountant for an end of year record of the last years finances, but they do not check supporting documents to the best of my knowledge. to me this is not a true audit as in my eyes all they are doing is checking the management companies arithmetic, and they were not hired or report to the board.I guess my question is should we be auditing the management company ?How often ? and under what parameters ? Thanks allot for any assistance.

North Andover, MA.


10/25/2005 11:41 AM  
There should be an audit very few years. The period is at the discretion of your Association (or state law if applicable) This keeps everyone honest. Any management company should not be afraid if they are acting properly.

If nothing else, your Board should sit down and run through the accounts and supporting documents. It doesn't have to be fancy or formal, so long as it is thorough. ALL the documents should be provided to your association on request. It should not be difficult. ASfterall, you hired the management company to keep your reords and conduct business. Everything should be organized and easy to decipher.

If irregularities appear, contact a CPA to review the records. This is not that expensive, but letting a management company have carte blanche very well can be if it is not a good one.
Please login to post a reply (click Member Login on the menu).
Forums > Homeowner Association > HOA Discussions > Condominium board To Audit or Not to Audit ?

Only members have access to all features.
Click here to join HOATalk for Free! Members click here to login and access all features.

General Legal Notice:  The content of forum messages are from the posting member and have not been reviewed nor endorsed by  Messages posted by HOATalk or other members are for informational purposes only, are not legal or professional advice and do not constitute an attorney-client relationship.  Readers should not act upon this information without seeking professional counsel.  HOATalk is not a licensed attorney, CPA, tax advisor, financial advisor or any other licensed professional.  HOATalk accepts ads from sponsors but does not verify sponsor qualifications nor endorse/guarantee any sponsor's product or service.
Legal Notice For Messages Posted by Sponsoring Attorneys: This message has been prepared by the sponsoring attorney for informational purposes only and does not constitute legal advice. This information is not intended to create, and receipt of it does not constitute an attorney-client relationship. Readers of should not act on this information without seeking professional counsel. Please do not send any sponsoring attorney confidential information unless you speak with the sponsoring attorney or an attorney from the sponsoring attorney’s firm and get authorization to send that information to them. If you wish to initiate possible representation, please contact an attorney in the firm of the sponsoring attorney. Sponsoring attorneys that post messages here are licensed to practice law in a specific state or states as indicated in their message signature or sponsor’s profile page. (NOTE: A ‘sponsoring attorney’ is an attorney that is a official sponsor and is identified as such in the posted message or on our sponsor page.)

Copyright HOA, A Service of Community123 LLC ( Homeowners Association Discussions )   Terms Of Use  Privacy Statement