Annual Audit

Started by RickN • 1 replies • 1273 views

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RickN (Florida)
Posts: 27

Posted:

Last year, in order to settle a lawsuit with a landscape company, our HOA paid out $95,000. First question, shouldn't this settlement be on an agenda as part of some duly noticed BOD meeting, and then approved through the minutes? Second question, shouldn't the annual audit reflect this transfers of funds from the HOA to the landscape company?

RogerB (Colorado)
Posts: 5,067

Posted:

Rick, yes the settlement should be voted in a Board meeting prior to the settlement. The financial statements should reflect the settlement funds and the audit should catch the error if this is not reflected in the financial statements.

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