"Tony Tedesco" wrote in message
...
On Fri, 21 Oct 2005 21:51:48 GMT, "TKM" wrote:


"Tony Tedesco" wrote in message
.. .
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.

your kidding, right? get an audit immediately and yearly from now on.
and use an acct of the board's choosing, not the one used by the mgmt
company.

where would the funds to pay the acct come from?