Does My Condominium Association Need to Perform an Annual Certified Audit?
I recently heard from a condominium co-owner who asked if it was necessary for his condominium association to conduct a certified audit every year. His situation is that his board of directors had not conducted an audit in five (5) years because of “other pressing issues.” After several co-owners complained, the board finally decided to conduct the audit, but it is not a certified audit.
The Condominium Act and most condominium bylaws require that the condominium association have an audit done by an independent accountant but the audit need not be certified, and the accountant need not be a certified public accountant (CPA). Although a certified audit is more expensive than a non-certified audit, it is our recommendation that associations have a certified audit performed on a yearly basis as well as a financial statement provided to the co-owners on a yearly basis as the later is required by the Condominium Act. Even though the auditor need not be a CPA, he or she should be condominium wise as it relates to the ins and outs of condominium accounting and governance.