A Financial Review is an independent evaluation of the HOA’s financial statements performed by a certified public accountant (CPA). Unlike a full audit, a financial review provides limited assurance that the financial records are accurate and free of material misstatements. It involves analytical procedures and inquiries but does not include the in-depth testing used in an audit.
Why It Matters for Self-Managed HOAs
A financial review helps confirm that the HOA’s financial records are reliable, organized, and properly maintained—critical for self-managed communities with volunteer boards overseeing the books.
- Provides homeowners with confidence that financial statements are accurate.
- Helps identify errors, inconsistencies, or areas for improvement.
- Supports responsible financial management and transparency.
- Can satisfy governing document or state requirements when an audit is not mandatory.
- Prepares the HOA for future audits by ensuring strong recordkeeping and accounting practices.
How to Use It
“The board scheduled a financial review this year because the governing documents require one every three years unless an audit is requested.”
Best Practice or Tip
- Keep financial records organized in HOA My Way’s cloud storage to simplify the review process.
- Work closely with your dedicated HOA My Way accountant to ensure monthly reports are accurate and complete.
- Store past financial reviews in the portal for easy board access and historical comparison.
- Use insights from the review to strengthen internal controls or adjust accounting procedures.
- Share a summary of the findings with homeowners to support transparency and trust.
Related Terms
