Quote:
Posted By LouH1 on 08/29/2020 11:17 PM
How do I make sure an Audit is done this year, an Audit by an independent CPA?
In your other recent thread, you stated that this is a Michigan condominium. This means your condominium is subject to the Michigan Condominium Act. See http://www.legislature.mi.gov/documents/mcl/pdf/mcl-Act-59-of-1978.pdf . The latter statute requires an annual audit or review (they are different) by a CPA as follows:
=== start Michigan Condo Act Excerpt ===
559.157 Books, records, contracts, and financial statements; examination; audit or review;
opt-out of requirements of subsection (2).
Sec. 57. (1) The books, records, contracts, and financial statements concerning the administration and operation of the condominium project shall be available for examination by any of the co-owners and their mortgagees at convenient times.
(2) Except as provided in subsection (3), an association of co-owners with annual revenues greater than $20,000.00 shall on an annual basis have its books, records, and financial statements independently audited or reviewed by a certified public accountant, as defined in section 720 of the occupational code, 1980 PA 299, MCL 339.720. The audit or review shall be performed in accordance with the statements on auditing standards or the statements on standards for accounting and review services, respectively, of the American institute of certified public accountants.
(3) An association of co-owners may opt out of the requirements of subsection (2) on an annual basis by an affirmative vote of a majority of its members by any means permitted under the association's bylaws.
===End Excerpt ===
LouH1, I would start by requesting that the subject of the Michigan Condo Act's requirement for a CPA review/audit be placed on the next board meeting agenda. Once you are successful in getting this on the agenda, post back for more instructions on how to present this at the meeting.
If the board refuses to put this on the agenda, post back, and I will draft a short demand letter (which has some legal meaning) that you can use to get tough.
Even better, try to get this on the agenda for the upcoming annual meeting of the membership.
From experience as a director; massive reading here; and plain ol' common sense, a board majority does not like to be ordered to do anything. A board majority will usually respond to a director, asking the board to follow the law, reflexively with retaliation. You have to be ready for this board to start sending out mass mailings that essentially defame you. You have to be ready for this board to use the condo attorney to do the same. The condo attorney has a lot of leeway to flat-out lie about your efforts and get away with it.
An annual audit/review (for a condo's books et cetera) is Thee Law in Michigan. For the Board to disregard this statutory requirement is extremely serious. Also someone may be stealing, and an audit/review will help stop this. You have legal standing to demand this audit/review, but first, start with a soft touch.