Right to Audit/Finances

An audit is typically considered to be a review by a financial professional (CPA for example), the association does not need to have one just because somebody requests it.

Depending on your docs and state law, the association could be required to allow inspection of the financial and any other records by any homeowner. In Florida, for example, associations have to allow this. While they do have to allow inspection of the records, they don't have to create any reports or summaries that they don't already have. So if somebody wanted to review expenditures, they would be allowed to look at the invoices, check register, bank statements, etc., but if the association doesn't have an expense summary by budget category, they wouldn't have to compile one on request.

Hi Jennifer

An independent CPA can provide an audit, a review, or a compilation. Audit is the most rigorous. Compilation the least.

What's required depends on what your docs and your state's corporate law say. Generally, an audit is not required unless your docs say so.

I wouldn't recommend it, but some HOAs don't even use a CPA to do a compilation.

Your PMC is doing the bookkeeping for your HOA. They are offering to post each month's unaudited financial statements on your website as they get produced. These will typically include "month", "year-to-date", and possibly "budget-vs-actual" information. It depends what reports they generate. It should include "income statement", "balance sheet", and "statement of cash flows" which should give you an overview of what's going on.

Yes they are required to keep all the records. But there is no requirement to post all the information they have.

You do have a right to inspect the actual records. For that you would have to make an appointment to inspect what you want to see - maybe copies of contracts, invoices, etc. But there is no obligation to post that information.

You should also be able to inspect your own file, but not the files of other homeowners.

Other replies seem right, Jenifer. If you want to see records other than what your MC posts, you may have to request them in writing. As others have noted, it depends on your own docs and NC laws.

Our financials aren't available for Owner review till after the board approved them in an open meeting subject to the year-end audit.

Jenifer B1
1- In addition to the good advice above there are several strong commenters here from your state who will be able to know. To see what if any transparency & consumer protections are required by law, it might also be worth your while to track down whichever state law applies to your community :

( N Carolina ch 47C Condominium Act http://www.ncga.state.nc.us/gascripts/Statutes/StatutesTOC.pl?Chapter=0047C; Article 3 mgt OR

N. C Planned Community Act ch 47F http://www.ncga.state.nc.us/gascripts/Statutes/StatutesTOC.pl?Chapter=0047F : Art 3 mgt ) Neither seem to be a legislated state requirement.

2 - My jurisdiction's condo law expressly requires compulsory audits, the auditor reporting to & being primarily appointable by a convened annual Owners Meeting. Lawful end runs around the requirement are on paper NOT possible. However there are neither condo police here nor - as has been shown repeatedly - uniform auditing skillsets. . . . nor more than a veneer of transparency even with an auditor. Sometimes NOT a magic bullet for stakeholder protection.

Hello Jenifer, our CCR's allow for any Unit Owner to do a full audit of our finances, at the Unit Owners expense. As far as keeping records of our finances, this requirement is also included in our Documents. We have 300 Units @ $210.00 per month. Our budget is $756,000.00 per year. I am facing a similar issue myself, asking about who paid for certain repairs due to a water leak. I am being stonewalled but, I will get my answers, hopefully, one I get 295 members on the same page.