Finance Committee working with CPA

Started by ChrysB • 10 replies • 296 views

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ChrysB
Posts: 45

Posted:

Hello,

Could the Finance Committee work along with the Treasurer and Property Manager during CPA's review of HOA financial records?

AugustinD
Posts: 3,698

Posted:

Only if the HOA/COA Board approves this.

ChrysB
Posts: 45

Posted:

Thank you!

AugustinD
Posts: 3,698

Posted:

Just one reason why the Board should approve this: Invoices from the HOA attorney sometimes contain information that is covered by attorney-client privilege. That possibility is usually remote. Still, there are some HOA records that only the HOA board is entitled to see. The Board should not give carte blanche to anyone to view all financial records without giving the situation some thought.

CathyA3 (Ohio)
Posts: 6,299

Posted:

Depends if the review is supposed to function as an audit - in which case it would be inappropriate for the HOA (board, committee members, and PM) to be involved beyond responding to questions from the CPA if clarification is needed.

If the CPA is simply providing advice, then he/she is a hired contractor and it's OK for HOA folks to be involved.

ChrysB
Posts: 45

Posted:

This makes sense! Thank you once again!

ChrysB
Posts: 45

Posted:

Cathy,
The review does not function as an audit. I do consider the CPA as a hired contractor to review the financial reports, make sure that comply with the General Accepted Accounting Principles, offer budgeting analysis, identify areas that require further analysis and offer recommendations to strengthen, if needed, our internal controls.

Thank you for your input! I can see now your point of view, that HOA board members/finance committee could be involved to assist in CPA's job!

AugustinD
Posts: 3,698

Posted:

Quote:

Posted By ChrysB on 01/09/2022 4:13 PM
The review does not function as an audit. I do consider the CPA as a hired contractor to review the financial reports, make sure that comply with the General Accepted Accounting Principles, offer budgeting analysis

? I always thought treasurers, HOA/COA managers (who should have command of mundane operating costs), and reserve companies were best for budget analysis.

MarshallT (New York)
Posts: 414

Posted:

It is certainly a possibility. As long as the board understands that they are ultimately responsible for the association's finances.

ChrysB
Posts: 45

Posted:

MarshallT,

Perhaps by using the term budgeting analysis as a function of the CPA contacting the review, it was not the correct term to use and that is why Augustine question it.

The CPA based on his review of the financial records and statements, would offer recommendations to areas that need attention. Of course, the board realizes that with the contributions of the Finance committee and PM will address these areas.

I feel that as owner is my obligation to get involved in any possible capacity to assist bearing in mind the best interest of the owners and protecting our investment. I am educating myself in HOA and I have found this forum very informative!

ChrysB
Posts: 45

Posted:

AugustinD,

You are correct!

Perhaps by using the term budgeting analysis as a function of the CPA contacting the review, it was not the correct term to use. The CPA based on his review of the financial records and statements, would offer recommendations to areas that need attention. Of course, the board realizes that with the contributions of the Finance committee and PM will address these areas.

The Board decided to use a structural engineer instead of a Reserve Study specialist.

Thank you, again!

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