Internal Financial Audit

The Board authorized an independent audit of of our financial records for the past five years to be completed in 2023.  With the number of issues, new initiatives and lack of availability of the former Treasurer, we focused our time on improving the auditability of our data.  

The organization is solvent and no impropriety is apparent.  However, the audits are completely manual.   

As an example, the HOA Manager software and the bank checking account statement cannot balance.  If a deposited item is returned, the process requires a complex operation of removing the entire deposit ticket, the removing the application of the payment from the invoice, then recreating a deposit ticket to close the other payments on the deposit.  This leads to a unbalanced reconciliation of the deposit.

To account for this

1. All incoming mail is tracked and is imaged since April 1 of 2023.

2. All deposits are now performed using a mobile deposit of a single payment which provides a check image as evidence of the deposit.

Other steps which have been taken

1. A separate logging of the checking account, which can be verified with the bank statement, includes the images of all deposits and, for deposits prior to mobile deposits, the deposit is split by the payer and the purpose (dues year, late fees, NSF or other bank fees).

2. A link between the incoming mail and deposit is established providing additional auditing.

These processes will be performed with 2022.  The previous four years may require too much effort to complete.