Re: Condominium board To Audit or Not to Audit ?

On Fri, 21 Oct 2005 21:51:48 GMT, "TKM" <nomail@xxxxxx> wrote:

>
>"Tony Tedesco" <tonytedesco@xxxxxxxxxxx> wrote in message
>news:7rlil15fps5gv5pb5vn7bsmsko1n1toj2s@xxxxxxxxxx
>>I am a member of a new condominium board that was elected back in May
>> 05, the board consists of 5 members, there are no surviving members
>> from the last board. We have our property managed by a management
>> company since 1997, there are 107 units with a yearly budget of
>> approximately $375,000.00. To the best of my knowledge we have never
>> had a audit of the management company, they do hire an accountant for
>> an end of year record of the last years finances. to me this is not a
>> true audit as in my eyes all they are doing is checking the management
>> companies arithmetic, and they were not hired or report to the board.
>> I guess my question is should we be auditing the management company ?
>> How often ? and under what parameters ? Thanks allot for any
>> assistance.
>
>How are you set up and what do your condominium association bylaws say?
>
>Ours say that an audit must be done once a year by an independent company
>and reported at the annual owners meeting.
>We are set up as a non-profit association and the management company is
>employed by us to do just what it says -- manage the property. Our condo
>board renews the management company contract each year. At some point they
>may decide to employ another company. So, we don't audit the management
>company's books; but we do audit our books since that's our money.
>
>TKM
>

What I was saying is that our management company keeps our books, so
if we don't audit them how do we know they are doing it correctly,
with supporting documentation of expenses, and proper accounting
practices. We are a not for profit and the management company was
hired by the last board they have been our management company for 7 -8
years, and no audit in that time to the best of my knowledge.
.

Relevant Pages

  • Re: Condominium board To Audit or Not to Audit ?
    ... >>>I am a member of a new condominium board that was elected back in May ... >>> 05, the board consists of 5 members, there are no surviving members ... >>> true audit as in my eyes all they are doing is checking the management ... >>> I guess my question is should we be auditing the management company? ...
    (misc.consumers.house)
  • Re: Condominium board To Audit or Not to Audit ?
    ... >I am a member of a new condominium board that was elected back in May ... > 05, the board consists of 5 members, there are no surviving members ... > true audit as in my eyes all they are doing is checking the management ... > I guess my question is should we be auditing the management company? ...
    (misc.consumers.house)
  • Re: Condominium board To Audit or Not to Audit ?
    ... >>> 05, the board consists of 5 members, there are no surviving members ... >>> had a audit of the management company, they do hire an accountant for ... >>> true audit as in my eyes all they are doing is checking the management ... >>> I guess my question is should we be auditing the management company? ...
    (misc.consumers.house)
  • Re: Condominium board To Audit or Not to Audit ?
    ... >>>I am a member of a new condominium board that was elected back in ... We have our property managed by a management ... >>> had a audit of the management company, ... >>board renews the management company contract each year. ...
    (misc.consumers.house)
  • Re: Condominium board To Audit or Not to Audit ?
    ... >>>How are you set up and what do your condominium association bylaws say? ... >>>board renews the management company contract each year. ... we don't audit the management ... >> with supporting documentation of expenses, and proper accounting ...
    (misc.consumers.house)