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Subject: internal audit
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Author Messages
LaverneB


Posts:0


01/24/2008 1:08 PM  
We have been lucky to have CPA's living here for 25 years but they are now gone and now have to pay for this service. We are being audited and they (acct. firm) told us it is going to be a cost of at least 10,000.00!! Our neighboring community told of us another way to do it, being leagal of course for 2,000.00. Has anyone heard of another way? Thank You LaVerneB Fl
DonnaS
(Tennessee)

Posts:5671


01/24/2008 1:47 PM  

Laverne,
What is your annual budget and how many units/homes are there?
SidneyP
(Florida)

Posts:302


01/24/2008 1:59 PM  
Donna...I'd like the same answer...it's been five years and we have never had one. Our budget is $62,986. and we have 77 Townhouse units...Thanks
GloriaM
(North Carolina)

Posts:829


01/24/2008 2:04 PM  
Laverne:

Who is auditing you? The IRS? I am not clear on what you are stating here, if you are saying you need an audit then a full audit most CPA firms would charge for auditing 1 year about $5,000.00 to $6,000.00. Shop around for the best price.

As for the $2,000.00 price that would be a review, not an audit.
DonnaS
(Tennessee)

Posts:5671


01/24/2008 2:10 PM  

Laverne,

This is from 720;303 FINANCIAL REPORTING This what you are required to follow but some Boards lessen their requirement thru a vote by the membership or Board.

a) An association that meets the criteria of this paragraph shall prepare or cause to be prepared a complete set of financial statements in accordance with generally accepted accounting principles as adopted by the Board of Accountancy. The financial statements shall be based upon the association's total annual revenues, as follows:

1. An association with total annual revenues of $100,000 or more, but less than $200,000, shall prepare compiled financial statements.

2. An association with total annual revenues of at least $200,000, but less than $400,000, shall prepare reviewed financial statements.

3. An association with total annual revenues of $400,000 or more shall prepare audited financial statements.

(b)1. An association with total annual revenues of less than $100,000 shall prepare a report of cash receipts and expenditures.

2. An association in a community of fewer than 50 parcels, regardless of the association's annual revenues, may prepare a report of cash receipts and expenditures in lieu of financial statements required by paragraph (a) unless the governing documents provide otherwise.

SusanW1
(Michigan)

Posts:5202


01/24/2008 2:42 PM  
You said "We are being audited . . "

By whom? If it's the IRS, they will do it, not you.

Your HOA is too small to have a full service audit!

What do your bylaws demand? What is your treasurer doing about getting the books ready for a financial review? That's all you need, with a budget like that!
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