Financial Statement

You are here

Protecting Your HOA from Fraud and Embezzlement

Unfortunately, fraud happens in homeowners associations. No strategy will guarantee that your HOA won't be a victim of theft or embezzlement, but your board can take reasonable steps to reduce the opportunity for fraud. By implementing a system of controls, adopting certain policies, properly reviewing your bank statements, and conducting reviews with a CPA, your association can work to prevent fraud

The 3 Methods of HOA Accounting and Financial Statements

We recommend that HOAs use the Accrual Basis of Accounting for financial statements. Learn the differences between accrual, modified accrual, and cash basis accounting, and how they affect your financials.

How to Plan Your HOA's Budget

Budgeting in condo associations and other HOAs takes planning: gathering the right disclosure documents, anticipating rate changes in utilities and insurance, and following the Davis-Stirling Act. Get started with all the right information.

How to Adopt Accrual Basis Financial Statements for Your HOA

Accrual basis accounting gives a more complete picture of a homeowners association’s health and financial status than cash basis, making board members increasingly interested in converting their HOA’s financial statements to accrual basis. Accrual basis accounting provides a better matching of revenues and expenses for the period they are earned, not just as received.

How to Review Bank Statements and Monitor Your HOA's Money

One of the most timely and efficient ways to keep track of association financial accounts is to properly review and reconcile bank statements. This includes implementing safeguards against fraud, monitoring operating and reserve fund accounts, and examining the activity in your homeowners association's funds

§5305 - Financial Statement Review

Unless the governing documents impose more stringent standards, a review of the financial statement of the association shall be prepared in accordance with generally accepted accounting principles by a licensee of the California Board of Accountancy for any fiscal year in which the gross income to the association exceeds seventy-five thousand dollars ($75,000). A copy of the review of the financial statement shall be distributed to the members within 120 days after the close of each fiscal year, by individual delivery pursuant to Section 4040.

Subscribe to RSS - Financial Statement