As with any situation in business or in life, there are good condominium property managers and there are bad ones. Similarly, there are good property managers who may work for bad management companies. And sometimes bad managers who work for good management companies.
As a condominium board member, how do you really know what you’ve got in your building? What is actually happening in the management office? Are you receiving proper results and value for your management fees? Does your management company’s performance truly meet their promise?
Eagle Audit Advantage delivers a unique collaborative inspection process that helps boards achieve and verify true management excellence in their condominium corporations, with lowest possible risk of fraud.
Condominium Audits for Operations Performance Excellence and Fraud Deterrence
Your board engages Eagle Audit for a comprehensive performance review of your on-site manager and the management company back office accounting operation. Then we bring your property manager along for the site inspection… it’s a unique approach to collaboratively improving your results and sharing best-practices.
- We conduct deep inspection of all areas of your condominium common elements, including work areas, storage and staff areas that often are overlooked by managers.
- We determine whether proper internal controls are in place to protect vulnerable corporation assets, including supplies, tools and consumables.
- We inspect all management records, contract documents and expense records for proper practices and completeness.
- We assess whether proper information handling practices are implemented and respected within your property manager’s office.
- We assess whether employees and contract workers are efficiently managed, and whether there are any risks of time-wasting or theft.
- We attend the management company head office for inspection of the back-office accounting procedures and internal controls.
- We assess your fraud risk using special assessment criteria and on-site tests that are unique to Eagle Audit.
- And much, much more…
We issue a detailed report to your board. The identical report is submitted to the management company 48 hours in advance, so they can prepare their response to any anomalies we have uncovered.
At time of your corporation’s annual financial statement audit, we submit copies of our reports to your auditor.
And then we issue a Condominium Performance Assessment summary report that your board can mail to all owners as part of your year-end AGM mailing.
There are many questions i have regarding our condo finances, I am not able to get satisfactory answers for. I like to know if an owner (not board member) can request an audit, and a ballpark figure what it would cost. Your answer would be greatly appreciated. thank you.
REPLY:
This commenter has already received a direct response from us and further discussions will be underway. Here is part of the response we sent:
Thank you for your insightful question.
You have a right to ask questions, get answers and inspect documents regarding almost all aspects of your condominium corporation’s finances and operations. If you are blocked in those requests, there are alternative methods to obtain the answers. We can discuss those methods with you.
And in particular, if there are suspected anomalies in the finances (indicated by red flags we know how to spot), there is a way for an ordinary owner (or ideally, a group of concerned owners) to have an independent audit ordered. All corporation records and expense transactions, plus the persons who approve them, would be exposed to deep scrutiny under such an audit. The costs can be assigned back to the condo corporation — not paid by the owners who petition for the audit — and the audit report summary is distributed to all owners.
After that, recovery of financial losses or correction and indemnification of management errors in the finances would be referred to the condominium corporation’s lawyer. Litigation for recovery would be a final option, if necessary.
In fact we specialize in this kind of audit inspection work. It is a powerful tool for finding facts, with legal force to ensure that the truth about the condominium’s financial condition and fraud risks cannot be hidden. Please contact us for a confidential discussion of your situation and how we can assist: help@eagleaudit.ca
William Stratas
Managing Director,
Eagle Audit Advantage Inc.
Hello
we have a problem with a 30 year old xxxxxxx condo in xxxxxxxxxxx.
The reserve fund went from $78,295 in xxxx to negative $105,000 in xxxx without any major work done in the building. The property manager is not co-operative and does not provide any paper work or any financial statements.
What can we do ? Please advise. Thank you.
This commenter received a direct response from us and further discussions resulted in helpful recommendations and progress in support of their problems.