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.
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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:
- Revisions. Financial activities are checked both scheduled and unscheduled. Their frequency is determined by the partnership itself (annually, quarterly, monthly).
- 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.
- Preparation of a report on the activities of the organization, on mandatory payments (their amounts for the current period).
- 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:
- Control over the activities of the organization.
- Control over how the partnership’s money is spent, whether the expenses are justified, how financial discipline is observed, and how labor is paid.
- 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.
- 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 :
- General provisions. The term for which this composition is elected, the number of members, how it is elected (general meeting).
- Her competence. That is, the functions and tasks of the Republic of Kazakhstan.
- Rights and obligations of the Republic of Kazakhstan.
- How the activity is carried out, its order.
- The basis for inspections, their order.
- Maintaining document flow in the Republic of Kazakhstan.
- Procedure for reporting before the meeting.
- Document storage.
- 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.
What is this organ for?
The Audit Commission is responsible for internal financial control of the legal entity and the work of management bodies. Elected by the housing cooperative partnership once a year in order to control the financial and economic activities of the company. The need for an audit commission for housing cooperatives is determined by Art. 120 and art. 150 Housing Code of the Russian Federation.
Following Article 120 of the Housing Code of the Russian Federation, the election of an audit commission at a general meeting of members of the housing cooperative is provided for. Such a commission is elected for a term of no more than 3 years (provided for in Article 150 of the RF Housing Code).
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.
What exactly does an audit cover?
The commission's inspection covers the following areas of activity:
- control over the activities of the management bodies of the partnership;
- accounting and control of the partnership’s expenses and the appropriateness of their spending;
- control of proper accounting and financial activities of the partnership;
- monitoring the actions of governing bodies in accordance with the HOA charter;
- ensuring the safety of funds.
An audit of the activities of an HOA is not particularly difficult, but if members of the commission have a number of questions about the details of the activities of the partnership, it is better to contact audit firms that conduct audits for a fee.
Rights
are granted certain rights when carrying out their activities . They can:
- Demand that they provide economic and financial documents. The requirement can be either written or oral.
- Access to documentation is not limited by time. Information constituting a state secret is provided in accordance with the requirements of the law.
- 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.
- 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.
- External specialists may be involved to carry out the audit.
- The Republic of Kazakhstan may require the board or other management body to hold accountable the person who committed the violation.
- 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.
Generating a report
The audit commission indicates the following items in the inspection report:
- General information about this organization, its management, and chief accountant is listed.
- Analysis of indicated income. Are the charges for housing and communal services to owners justified?
- Expenses are checked based on the approved estimate. The reasons for any deviations of actual values from planned values (savings and overruns) are analyzed.
- Financial transactions (cash, current account) are checked.
- Organization of work on the formation of a capital repair fund.
- Operations with inventory items.
- Expenses for remuneration of employees, personal income tax and insurance premiums.
- Calculations with accountable persons.
- Settlements with suppliers and contractors for the maintenance of common property.
- Calculations for utility services.
- Settlements with buyers and customers are checked.
- Settlements with owners.
- Checking the organization and work of the board (how regular are the meetings, availability of the necessary protocols, implementation by the management of decisions put forward by the meeting of members of the housing cooperative, whether applications from the owners of the premises were considered).
- Control of contractual work (whether civil transactions made by the management of the housing cooperative are legal).
- Submission of reports to the Federal Tax Service, extra-budgetary funds, statistical authorities.
- Conclusions and recommendations based on the test results.
Responsibilities
Inspectors must :
- Conduct inspections and audits within established time frames. They are determined by current legislation and the charter of the partnership.
- The results of the audit and the conclusions of the inspectors are presented to the general meeting.
- 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.
What should I check?
Based on the law, audit commissions undertake to conduct scheduled audits and monitor the financial activities of housing cooperatives once a year , and provide estimates of income and expenses for the past year for the next year.
Based on the results of the inspection, the necessary report is drawn up, which is later presented to the general meeting of members. The Audit Commission checks the established volumes of mandatory payments and contributions (what contributions do members of the housing cooperative pay?). Drawing up estimates of income and expenses is not the responsibility of the audit.
The Audit Commission is obliged to carry out the following check:
- Are there any approved estimates of income and expenses?
- Are the estimates of income and expenses drawn up correctly (the validity of calculations for certain types).
- Are estimates submitted to property owners on time for approval?
- Reliability of the prepared reports.
Check progress
During the inspection, it must be checked:
- Income, expenses of the organization.
- Estimates of them. Are they correctly compiled and justified, both in general and for individual works?
- How estimates are brought to the owners for their consideration and approval, in a timely manner or not.
- 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:
- Reliability, legality of transactions.
- 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 :
- Does the issuance of funds correspond to the list of persons to whom it is authorized?
- Does this expense comply with regulations, is the documentation for the issuance of money correctly completed.
- The need for travel expenses, the correctness of travel expenses, and paperwork are checked.
- 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 .
How to draw up the final act?
The act consists of the following parts:
- the name of the act is indicated;
- date of its preparation;
- introductory part of the act;
- descriptive part;
- conclusions and offers;
- signatures of the audit commission.
FOR REFERENCE: The name of the act is necessary to understand the composition of the document (what is being discussed). The date of drawing up the act must be the same as the date of the audit.
The introductory part includes the specified goals, objectives and grounds on which the audit was carried out . Often, such a basis is an order from the director or a general decision of a meeting of shareholders. A list of those members of the audit commission who can check the activities of housing cooperatives and chairmen according to the attached list is indicated, as well as a list of documents subject to verification.
The narrative is important to indicate the facts established during the verification process. The commission sums up the results of the inspection and makes proposals as needed. The act is signed by all members of the commission.
Responsibility
The audit commission is assigned a certain responsibility within the scope of inspections. The disciplinary measures taken are determined by the partnership. Any unlawful actions of auditors may be regarded by the HOA board as a reason for re-election. All members are obliged to treat their activities properly and, if they do not know any questions, turn to specialists.
With the help of inspections carried out by the audit commission, many problems and violations of the work of the governing body of the partnership are identified. The activities of auditors help improve the work of the HOA and prevent a crisis, both financial and ensuring the normal functioning of the governing body. Such commissions make the work of the partnership more transparent and contribute to the favorable living of the owners themselves.
