Required Audit

Started by HanhN1 • 5 replies • 1345 views

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HanhN1 (California)
Posts: 64

Posted:

My Association didn't have annual audit for 10 consecutive years. It is a violation of the Bylaws (it is required annual independent audit/anual income is about 400K). What should homeowners do?

Thanks

SusanW1 (Michigan)
Posts: 5,202

Posted:

First, make sure your board is not conducting another, less expensive, way to verify the books - perhaps an audit review, compilation, CPA or bookkeeper involvement, Finance Committee overview/review. Audits can be very expensive.

But other than that, you can insist that the board honor the bylaws by making a motion to have an audit. Make the motion either at the Annual Meeting or a duly-called Special Meeting. How to call a Special Meeting should be in the bylaws.

By the way, are other Members as concerned as you are?

HanhN1 (California)
Posts: 64

Posted:

Yes, other members are as concerned as I am. People wanted to have previous Board members replaced, but no luck yet. Those didn't want to step off and did not want to give an opportunity to new members to run for Board. In addition, one of the previous board members is not a homeowner. He has moved out and quit claim deed. He is still on the board. This is very interesting. People wanted to see the book and records of Association and the request has been denied.

SusanW1 (Michigan)
Posts: 5,202

Posted:

What about at the Annual Meeting? You should have all gotten written financial reports!

In any case, you have some legal rights to see financial documents. Stay tuned from CA people.

HanhN1 (California)
Posts: 64

Posted:

They have delayed the Annual Meeting this year. It was supposed to be in Novemeber, but no action. The financial reports were not audited.

RobertR1 (South Carolina)
Posts: 5,164

Posted:

Hanhn1,
It certainly is late to suggest this, but why haven't you all been involved in changing all this? What are you waiting on? Why are you waiting? If you can't do it inside your system go outside and make some noise and hire a lawyer. This is not about a small little difference of opinion, these people are using your money each moth, you don't know how, they push you all around like you are second class members of your association, and you all gnash your teeth and sing the blues. Am I wrong?

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