incompetent CPA

We are a 56 unit self managed HOA. I am the secretary.
We have a new treasurer this year, the old one was having memory issues forgetting things. New treasurer has never done any of this before. He's doing a good job, and to tell the truth I never paid too much attention to the financials as long as I saw our reserves increasing and no glaring errors. This year I've had more time to really look at them and believe our CPA is incompetent. Our treasurer sends him the check register and bank statement each month and he does the income statement and balance sheet.

Our bank changed hands a few months ago and we started seeing banking fees being deducted on the check register, but there was nothing showing this on the income statement.

I questioned this and now he's working on correcting. Every month there is always something that has to be corrected.
We maybe have 10 or 15 total transactions during a month. It shouldn't be difficult.

Then this month we started replacing roofs.

When we got the monthly financials he charged our down payment for the roofs to our contingency fund for expenses. Shouldn't this come off the balance sheet?

This lead me to question the only other time we used reserve money since I've lived here. (before I joined the board) Again he charged our contingency fund. I'm thinking this probably overstated our income for the year and we probably overpaid our taxes.

Also on our Income statement here is an example

Other Expense mo ytd annual budget
Capital Repairs
601 Street Crack & Fill 0.00 0.00 1,500.00
602 Driveway Reseal/Repair Ass. 0.00 0.00 0.00
603 Cement/Concrete Work 0.00 2,090.00 6,000.00
604 Service Drives Sealing/Rep. 0.00 2,960.00 0.00
610 Contingency 0.00 0.00 0.00 2510.00
Total Capital Repairs 0.00 5,050.00 10,010.00
Total Other Expense 0.00 -5050.00 -10,010.00

-6,862.40 73,350.73 70,560.00

We do street crack & fill every year and pay for it as an expense not as a capital expense. So either we should be considering this a capital reserve item or a budgeted expense?
Same for driveway reseal. We do this every other year as a curtesy to owners. We collect a special assessment and then have all driveways sealed at one time. Shouldn't this also be an expense item?
Cement work- we have an issue with sidewalks settling and replace slabs each year. I would think this would be a capital reserve item and shouldn't be on the income statement?
We have some common area service drives that the association pays for the sealing every other year. Shouldn't this also be an expense item and not listed as capital repairs. Its crack filling and resealing

Then we have contingency. Should this also be an expense item for unexpected or unbudgeted expenses.

No one else pays any attention to the financials and they pretty much just get a stamp of approval each month, mostly because people don't understand them. We have never had an owner question them.

I know we need to get a new CPA, the one we have came highly recommended (can't believe how).

Am I on the right track or is what he is doing GAAS

Our previous president was an accountant who hired him.

Ann

I do not have an answer for you but it is not uncommon for money to be moved from
a Reserve Account into General Expenses to pay for an item even when the item
was covered under Reserves. We have no way to write
a check on our Reserve Accounts to pay for something. We must first transfer.

I should clarify, the new treasurer does a good job paying the bills, but then he submits everything to the CPA who does the balance sheet and the P&L statement. He doesn't understand the financial reports very well and just relies on the CPA to do his job correctly.
He only took the position as we had no one else on the board willing to do so. We have a very apathetic group of owners. No one is willing to run for the board. Since the old treasurer quit, we appointed a new owner to the board, she is now serving as an at large member. ''

can you give me and example of how your P&L statement looks with and entry to pay for a capital reserve item.
this is the information i found about paying for reserve items.

Since Reserves are a direct contribution to Capital, they must be removed from the Income/Expense Statement so they do not inflate the Net Income of the Community. Likewise, when Reserve Funds are spent, you do not want to run the expense back through the Income/Expense Statement since this would also affect the actual Net Income for the year.
Instead, Reserve expenses should be charged directly against the Reserve Fund balance in the Equity section of your Balance Sheet.

cash basis