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Kuester Management Group Emphasizes the Importance of Regular HOA Audits
Kuester Management Group reflects on the benefits of consistently reviewing HOA finances to identify potential problems and make data-driven decisions.
By: Kuester Management Group
"Running an HOA is much like running a business, so the board must deal with income and expenses," says Bryan Kuester, President of Kuester Management Group. "It is critical to maintain accurate records and have a thorough understanding of how funds are being managed. Regular audits can help uncover any potential problems or risks."
The board should check its governing documents to see if they set any requirements for how often audits must be conducted, says Kuester. Not every state mandates them, nor does every HOA. Even if audits are not required, it is still a good idea to perform them as they provide greater transparency into association operations and financial health.
The cost of HOA audits can vary, but by planning ahead, the board can budget for it accordingly. An audit can be a powerful tool for identifying misuse of funds, potential fraud or embezzlement, and simply understanding exactly where money is being spent. Audit results can be used to support financial decision making, reallocate funds, and protect fiduciary responsibility.
"Regular audits can also be helpful for sharing important information with HOA members and the management company," says Kuester. "Members value transparency and the board being open and honest about how it is managing funds. Audit reports can provide a detailed breakdown of financial operations and identify areas for improvement."
Kuester Management Group works closely with HOAs to improve their financial health, create effective budgets, and enforce timely collections.
Kuester Management Group, a division of Kuester Companies, works to protect property values and enhance the quality of life in each of its managed communities. Providing a full range of association management services, Kuester Management Group has worked to foster strong, resilient, and unified communities across North and South Carolina. The company is proud to offer on-site property managers, all zealous for building strong communities meant to stand the test of time. More information is available at www.kuester.com or @KuesterCompany.
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