Balance Sheet

Started by JC7 • 2 replies • 2213 views

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JC7
Posts: 31

Posted:

Our CPA keeps reminding me the Balance Sheet is an unaudited document. Meaning it's not reliable? Shouldn't the balance sheet we recieve in our board packs be very close to accurate? How much importance do you put on the monthly balance sheet provided by PM?

GlenL (Ohio)
Posts: 5,491

Posted:

It should be a fairly accurate snapshot of where the finances are. I think what the CPA is reminding you is that the numbers are not certified to be accurate so an unscrupulous person could manipulate the figures. I'm sure Bernie Madolff's balance sheets looked good, right up until his Ponzi scheme collapsed.

Studies show that 5 out of 4 people have problems with fractions

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Un audited just means that the document hasn't gone through the auditing process that many HOA's require yearly. It does NOT mean it is right or wrong. Just has not been reviewed by an auditor. It will be when the HOA has to require or is forced to do an audit.

Keep in mind it basically means that your HOa could be wasting money on a rotine item that may not be necessary. Like paying for a board members cell phone bill if they use the phone for HOA business. This may not be a cost a HOA should pay and come under question... An audited report would bring this subject up.

Former HOA President

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