JamesP12 (Florida)
Posts: 3
Posts: 3
Posted:
Can a HOA home owner in Fl. request to do an Audit on the books, collected monies, cancelled checks, and all pay outs. I an not a CPA but done Audits for a chain motel, 5 years
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Audit
Started by JamesP12 • 8 replies • 1359 views
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KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
Are you asking, James, if the HOA where you're an owner could hire you to audit their financials?
TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
James,
My understanding is that FL statutes (and likely your own governing documents) allow you to review Association records. Keep in mind that reviewing is not the same as having copies. Additionally, what is considered the Official records are also identified within the Statute.
If you are asking if you can perform an audit at the request of the Board, that would depend on your governing documents. If the documents require a CPA to do the audit and you are not a CPA, you should not do the audit.
My understanding is that FL statutes (and likely your own governing documents) allow you to review Association records. Keep in mind that reviewing is not the same as having copies. Additionally, what is considered the Official records are also identified within the Statute.
If you are asking if you can perform an audit at the request of the Board, that would depend on your governing documents. If the documents require a CPA to do the audit and you are not a CPA, you should not do the audit.
JamesP12 (Florida)
Posts: 3
Posts: 3
Posted:
I am truly sorry , I should have supplied more information about this been . I just think that the funds we pay the HOA are not being spent as the should be. I think some one is taking money for their own good. The numbers they supply to us on paper just don't add up. I am not wanting them to hire me for doing the audit, no way. I just want to see the true facts where the money is going, and hold some one accountable for any missing money.
Thank you all for the answers you provided.
James Poling
Thank you all for the answers you provided.
James Poling
SheliaH (Indiana)
Posts: 6,964
Posts: 6,964
Posted:
Have you discussed your concerns with the board? Saying "the money's not being spent as it should be" is too broad. You need to figure out specifically what you're concerned about and go from there. Why exactly do you think the numbers "just don't add up?"
If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
Thanks for the detail, James. Sheila's questions is a good one: What exactly do you think is wrong?
In FL, your laws and maybe your own governing documents permit you to examine many kinds of financial records. There are simple procedures you must follow. Do you know what your rights are??
In FL, your laws and maybe your own governing documents permit you to examine many kinds of financial records. There are simple procedures you must follow. Do you know what your rights are??
TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
James,
Prior to requesting to review documents, Shelia has the right approach.
Except, I would contact the treasurer and simply say that you're not sure you're reading the financial statements properly as you don't understand a couple of things. Then ask if they can get together with you (perhaps over a cup of coffee) to go over a the statement.
You may make a friend and will likely have a better response then starting out requesting to review documents because something doesn't add up.
Prior to requesting to review documents, Shelia has the right approach.
Except, I would contact the treasurer and simply say that you're not sure you're reading the financial statements properly as you don't understand a couple of things. Then ask if they can get together with you (perhaps over a cup of coffee) to go over a the statement.
You may make a friend and will likely have a better response then starting out requesting to review documents because something doesn't add up.
GenoS (Florida)
Posts: 4,276
Posts: 4,276
Posted:
James, Florida law requires that an annual financial report for every HOA be prepared in accordance with Generally Accepted Accounting Principles (GAAP) and provided to the owners. Depending on the total association revenue that can be either compiled financial statements, reviewed financial statements, or audited financial statements. 20% of the owners may petition the board for a higher level of financial reporting than what is required. If that happens then a special members meeting is called where the owners can vote on the higher level of reporting for the year.
I'd start by looking at the existing annual financial reports for the last few years. These are official records of the HOA. Florida law spells out everything else that's also considered official HOA records and to which the owners must have access. FS 720.303 contains the details which include all current contracts and "Accurate, itemized, and detailed records of all receipts and expenditures."
Those must be kept for 7 years as well. You can request access to all those; the HOA may require you to make the request in writing. See FS 720.303(5) "INSPECTION AND COPYING OF RECORDS" for further details.
One important distinction in Florida law between condominium and homeowners associations: an owner in an HOA does NOT need to state a reason he or she wishes to inspect the records. In a condo association an owner does have to say why they want to look at them.
I'd start by looking at the existing annual financial reports for the last few years. These are official records of the HOA. Florida law spells out everything else that's also considered official HOA records and to which the owners must have access. FS 720.303 contains the details which include all current contracts and "Accurate, itemized, and detailed records of all receipts and expenditures."
Those must be kept for 7 years as well. You can request access to all those; the HOA may require you to make the request in writing. See FS 720.303(5) "INSPECTION AND COPYING OF RECORDS" for further details.
One important distinction in Florida law between condominium and homeowners associations: an owner in an HOA does NOT need to state a reason he or she wishes to inspect the records. In a condo association an owner does have to say why they want to look at them.
JamesP12 (Florida)
Posts: 3
Posts: 3
Posted:
I want to thank every one for their help, this has been very helpful and I will take every one's advice. Again thank you all so much. jim
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