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Home COFSAB Forum Finances Financial audits and audit of condo manager Reply To: Financial audits and audit of condo manager

  • Karen

    Administrator
    February 5, 2022 at 2:14 pm

    Posted : 04/08/2021 11:10 pm

    @MarkH

    Our 175‑unit, three‑building apartment condominium has an annual operating budget of about $1.5 million. The property’s insured value (replacement cost, not including individual owners’ policies) is about $79 million.

    Our bylaws provide (in part):

    ADDITIONAL DUTIES OF BOARD

    18. The Board SHALL:

    (edited)

    d) cause proper books of account to be kept in respect of all sums of money received and expended by it and the matters in respect of which receipt and expenditure shall take place;

    e) prepare or cause to have prepared proper accounts relating to all monies of the Corporation, and the income and expenditure thereof, for each annual general meeting;

    f) maintain financial records of all the assets, liabilities and equity of the Corporation;

    (edited)

    h) on written application of an owner or mortgagee, or any person authorized in writing by him, within twenty‑eight (28) days, make the books of account available for inspection at the unit of a member of the Board at a time convenient to such member;

    i) cause to be prepared and distributed to each owner and to each mortgagee who has notified its interest to the Corporation a copy of the audited Financial Statements of the receipts and contributions of all owners towards the common expenses and disbursements made by the Corporation and a copy of the Auditor’s Report within ninety (90) days of the end of the fiscal year of the Corporation;

    Normal practice over the last ~15 years has been to prepare an audit after the fiscal year‑end, which is June 30. The auditor presents the audited accounts at the AGM in December. The audit is prepared according to the prescribed practices of the accounting profession and the requirements of the CPA&R. I suggest you review your corporation’s practices against the requirements of the CPA&R and your bylaws.

    I regret I can’t tell you about auditing the property manager. Presumably, there is at least an annual performance review, and the contract with the company will presumably be reviewed annually by the board. I am not on the board; a review of the manager’s performance would normally be confidential.

    Whatever the CPA&R requires is a minimum standard; there is nothing to prevent a corporation from exceeding the minimum requirements to achieve a ‘best practice’. I am not qualified to tell you what that might be in your case!

    Please spread the word!
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