How to conduct an HOA inspection? Rights and responsibilities of the audit commission and sample opinions

The housing association, as part of its activities for the repair and maintenance of common property, operates with significant financial resources received from home owners as mandatory contributions.
To avoid unlawful spending of collected funds, the owners elect an audit commission from among the members of the HOA. Dear readers! To solve your specific problem, call the hotline or visit the website. It's free.
8 (800) 350-31-84

Legal requirements

The Housing Code of the Russian Federation establishes that control over the activities of HOAs can be exercised by the owners themselves , members of the partnership.

For this purpose, an audit commission (RC) is created in the organization.

is impossible without her . Its presence is a mandatory requirement of the law.

Responsibilities (functions) of the Republic of Kazakhstan include:

1. Revisions. Financial activities are checked both scheduled and unscheduled. Their frequency is determined by the partnership itself (annually, quarterly, monthly).
2. Preparation of estimates, particularly expenses, for a period of time (usually a year). The project is approved by the owners and only by their general meeting.
3. Preparation of a report on the activities of the organization, on mandatory payments (their amounts for the current period).
4. Report to the meeting of the partnership on the results of its activities.

Who can be a member of the commission ?

The RK is elected at the general meeting. Any (individual) person can be its member (auditor). However, neither members of the board nor the chairman are included in the Republic of Kazakhstan. This is prohibited by law. The RK is elected for a term of two years.

The main objectives of inspections include:

1. Control over the activities of the organization.
2. Control over how the partnership’s money is spent, whether the expenses are justified, how financial discipline is observed, and how labor is paid.
3. How estimates are calculated, how they are executed, how contributions are transferred, whether they are justified, how accounting is conducted, whether its rules are followed.
4. Do the activities of the partnership comply with the charter, how are valuables and funds preserved?

Audits can be carried out either on our own or with the help of external specialists .

Separate funds are included in the budget for third-party services.

The most important! The Republic of Kazakhstan is responsible only to the meeting of owners and is accountable only to it.

In the process of its work, the Republic of Kazakhstan must comply with the following requirements :

• legislation;
• organization charter;
• regulations on the audit commission.

The last document must reflect :

1. General provisions. The term for which this composition is elected, the number of members, how it is elected (general meeting).
2. Her competence. That is, the functions and tasks of the Republic of Kazakhstan.
3. Rights and obligations of the Republic of Kazakhstan.
4. How the activity is carried out, its order.
5. The basis for inspections, their order.
6. Maintaining document flow in the Republic of Kazakhstan.
7. Procedure for reporting before the meeting.
8. Document storage.
9. Termination of powers (upon expiration and early).

At the end of the Regulations there is a clause on amendments to it and compliance with the law.

Regulations on the HOA Audit Commission sample.

Sample HOA inspection report.

Commission report sample.

Read about issues of reorganization, liquidation or bankruptcy of HOAs on our website.

General provisions

The general provisions of the audit report of financial and economic activities include:

• listing the company's powers;
• status of the organization (legal entity);
• on what basis does it carry out its activities;
• what legislative acts it is guided by;
• what details appear on its documentation;
• reason code for registration of the organization;
• when the previous audit of financial and economic activities was carried out;
• who has the right of first and second signature.

This part, at the discretion of the revisionist, may contain other fundamentally important points. For example, if this is a budgetary institution, then in this part of the document there will be a reference to whose funds finance the institution.

Composition of the commission

third-party specialists in conducting audits in the partnership .

But, usually, the composition includes the residents of the house.

It is advisable to elect lawyers and accountants to its composition, since incompetence can lead to violations of the law.

If such specialists do not live in the house, then when carrying out inspections it is worth bringing them in from outside. The cost of services can be determined by contacting any audit company.

Find out about the types of HOA services from our article. Find out also about in what cases an inspection of the HOA by regulatory authorities is necessary.

Characteristic features of the act

All other points of the act reveal the corresponding areas of the financial and economic life of the organization. A fundamentally important feature of this document is the listing of specific digital data point by point. Information is presented in a structured manner.

The document is also replete with references to existing legislation. This is not surprising, since the specialist conducting the audit must, first of all, know what documents the organization’s activities must comply with. He needs this in order to draw conclusions as to whether there are violations. And if so, in what area and why.

In general, we can say that the act of auditing the financial and economic activities of an organization is the main reflection of its results. Without it, the process would be meaningless.

Rights

are granted certain rights when carrying out their activities . They can:

1. Demand that they provide economic and financial documents. The requirement can be either written or oral.
2. Access to documentation is not limited by time. Information constituting a state secret is provided in accordance with the requirements of the law.
3. If the deadlines for providing materials related to the inspection were violated, access to them was denied, or the documents turned out to be unreliable, then the Republic of Kazakhstan has the right to contact the relevant government agencies to bring the perpetrators to justice.
4. Inspectors have the right to demand written explanations from the board and officials of the partnership on certain business issues. Time limit: one day. Explanations are attached to the inspection report.
5. External specialists may be involved to carry out the audit.
6. The Republic of Kazakhstan may require the board or other management body to hold accountable the person who committed the violation.
7. The Republic of Kazakhstan has the right to demand the convening of both the board and the general meeting if the actions of officials threaten the interests of the partnership association or there are other grounds for an extraordinary meeting.

Read about the standards for disclosing HOA information to owners in our article.

It must be borne in mind that the Republic of Kazakhstan can use its rights only when fulfilling its statutory tasks defined by legislation and the current Regulations.

Grounds for inspection activities

This procedure may be planned or unscheduled . In the latter case, it is implied that the partnership provides low-quality services.

Federal Law No. 294 of 2008 “On the Protection of the Rights of Legal Entities...” reflects the general grounds for conducting verification activities.

In the case of a planned measure, the basis is the sequence of actions determined by the authorized body. The partnership is warned about such an event in advance.

For unscheduled inspections, the basis is a statement of poor quality services, a violation of the law.

Responsibilities

Inspectors must :

1. Conduct inspections and audits within established time frames. They are determined by current legislation and the charter of the partnership.
2. The results of the audit and the conclusions of the inspectors are presented to the general meeting.
3. An unscheduled audit is carried out no later than thirty days from the moment the decision to conduct it is made. A scheduled inspection is carried out based on the results of the past period.

Members of the RK of the homeowners' association are responsible for their actions. If duties are performed improperly, then it is possible to be held accountable in accordance with the law.

You can sample the minutes of the general meeting.

Check progress

During the inspection, it must be checked:

1. Income, expenses of the organization.
2. Estimates of them. Are they correctly compiled and justified, both in general and for individual works?
3. How estimates are brought to the owners for their consideration and approval, in a timely manner or not.
4. Reliability of reporting on estimates.

Before conducting a documentary check, you must request all documentation and access to it.

At the same time, if a planned audit is carried out, then all financial and business documentation . In the event of an unscheduled inspection, documents indicating a possible or detected violation are sufficient.

Then the materials are studied. Outside specialists can also be involved in document analysis. In complex issues, when the competence of the members of the Republic of Kazakhstan is lacking, this is the best option.

Next, the organization's income .

They can consist of membership fees, mandatory payments, as well as other income, for example, rent, subsidies (benefits for certain categories of citizens, etc.).

The tariffs used to pay for housing and utilities are checked. Municipal tariffs are not mandatory for the partnership.

Then expenses , both for statutory activities and commercial ones. If there is one. All profits received must be spent only on fulfilling statutory tasks.

If there are savings after receiving payment for utilities, then it is checked how it is distributed.

At the next stage, an audit of the cash register . Incoming funds, deposited in cash and received from the current account are checked.

The cash book, cash reports, general ledger, forms for settlements with the population, etc. are provided for verification.

They check the current account:

1. Reliability, legality of transactions.
2. How the transactions performed are reflected on the account and their expediency.

For the analysis, bank statements and documents attached to them, the general ledger, and “51 accounts” are used.

Next, payment of utility bills . Cash register data and bank documents, rent calculations (accrual statements) are used.

Then the accountable persons and mutual settlements with them are checked. In this case, the feasibility of these expenses :

1. Does the issuance of funds correspond to the list of persons to whom it is authorized?
2. Does this expense comply with regulations, is the documentation for the issuance of money correctly completed.
3. The need for travel expenses, the correctness of travel expenses, and paperwork are checked.
4. Advance reports and other documents related to the issuance of funds are checked.

Then the wage documents :

• accounting sheet;
• payslips;
• orders and other materials related to acceptance, dismissal, movement of personnel;
• staffing schedule;
• the movement of materials in the partnership, their acquisition and write-off are checked.

After completion of the audit, an inspection report .