Homeowners’ Association (HOA) board members shoulder significant responsibilities, with monitoring the community’s financial health ranking among the most crucial. While some HOAs may hesitate due to the perceived cost of an audit, the benefits often far outweigh the expenses. An audit serves as a powerful tool, revealing financial irregularities that might otherwise go unnoticed. It is usually accompanied by a management report that includes valuable financial recommendations, aiding the board in improving financial controls and reporting.
For board members, the consideration of an audit every several years is advisable. This not only provides essential insights into the association’s financial well-being but also ensures compliance with state regulations and association bylaws.
Here is a state-by-state comparison of HOA audits, highlighting some of the states with relatively higher and lower audit costs:
It’s essential for HOAs to recognize that audit costs can vary significantly by state, influenced by factors such as local economies and the complexity of the association’s financial operations. This comparison aids board members in understanding the landscape of HOA audits and making informed decisions to safeguard their community’s financial well-being.