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MarieL (Illinois)
Posts: 82
Posted:
I am one of four members of my 34 unit Illinois Common Interest community HOA appointed to do the annual audit, for 2011.
Anb annual audit that has not been done in years. Each one of us are individually "auditing" the same records provided to all of us and will then meet to compare our findings.Possibly next week.

Although I have some accounting experience. I'm having a difficult time, trying to get the books to balance. This may be because I believe we do not have all the necessary records to do a real audit,especially after so many years of neglect.

There were no copies included of the 2011 bank deposit slips,few treasurer's reports, no minutes or 2011 state and federal tax returns.the 1099 report for the bookkeeping fees, and missing voided checks.. Possibly there is also $12,000.00 unaccounted for in "reserve funds" that may have been deducted as actual expenditures, during the t 6 years it first started .

The 2011 bank account checking statements were included. But adding the deposits and deducting exense checks documented on them and taking into consideration what was listed as deposits and expense checks still in transit,I cannot get the books to balance. Is this because I do not have all the information and records required to accomplish a real audit, not just a quick simple review of some 2011 expenses. as the other three audit committee members appear to have done?...

.
DavidW5 (North Carolina)
Posts: 565
Posted:
Given all the missing documents and information you would be well advised to notify your association that what you are conducting is a review of available information, not an "audit".

The goal of an audit is to offer an opinion as to whether or not the year-end financial statement accurately portrays the financial condition in all material respects. With much of the information missing, you simply cannot make such a judgement.

If I was a member of your association I would be very concerned about the situation you find yourselves in. Who has been minding the store?
JohnC46 (South Carolina)
Posts: 14,265
Posted:
Marie

My initial reaction would have been to consider a professional audit.

That said, do not gloss over/accept anything. If something does not look right then note it and raise it for discussion. There is no such thing as a stupid question especially when you are not only protecting your money but you are also charged with protecting others money.

As you get into this, discuss your issues with others in the group. Some might be where you are at and some might even agree it is time for a professional audit.

Maybe some on here might could make a professional guesstimate as to the cost of such an audit.

Hope this helps.

MarieL (Illinois)
Posts: 82
Posted:
Thank you John and David.Information much appreciated.

I served on the BOD of my HOA, on and off for 18 years or more. I just resigned in January this year , due to my disgust with the BOD's total lack of knowledge on how to run this association. There are too many issues to even attempt to mention here,.

The apathy of the newer homeowners,in this small 34 unit complex is appaling. The BOD ignores this, does not try to get any of them interested or involved in what's going on here so they can do as they please.Our annual meeting in January was attended by 1/3 of the HO's.some sent proxies Our annual picnic in September is attended by about 7 HO's, out of the 50 or more who live here!!

A proessional audit for at least 5 years needs to be undertaken here, but there is little I can do about this.I am a legally blind, 76 year old senior citizen. I cannot get around to see the HO'a
and advise them how important it is for them to get involved Any ideas of what I could do?

Thank you for your kind help.

Marie

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