☑ Financial Statement Reviews
☑ Financial Statement Compilation
☑ Income Tax Returns
☑ IRS Representation and Consulting
☑ Monthly Bookkeeping
☑ Ballot Counting
Do you represent or manage a Homeowners Association? James Moore and Associates works with over 200 HOAs throughout Colorado every year. Often we coordinate our work with property management companies that manage the HOA. We work with HOAs in the Denver Metro area, mountain areas, and other cities throughout Colorado.
HOA Financial Statement
In Colorado, an audit is required when an HOA transitions from declarant to homeowner control, or is requested by the owners of at least one-third of the units represented by the association (for HOAs with annual revenues or expenditures of at least $250,000). Further, an audit may be required by the association’s governing documents. Many HOA board members believe that periodic audits are an important part of meeting their fiduciary duty to the association.
An audit is a comprehensive look at an HOA’s financials and provides the highest level of assurance. We will obtain an understanding of your accounting system and will plan our work based upon the strengths and the risks identified in that system. We will obtain independent, third-party verification for the material numbers in your financial statements. We will report any significant deficiencies in your system of internal controls. We are always happy to present the results of our work at your board or annual meeting.
If you’d like a less in-depth look at your HOA, we can provide a financial statement review. When we perform a financial statement review, our CPA looks over financial records with the goal of verifying that there are no material modifications that need to be made. A financial statement review is performed by applying inquiry and analytical procedures. A review can provide some level of limited assurance that there isn’t any material misstatement. At this level, testing of the financial accounts and records is not required.
For example, during a review, our CPA will:
Compare revenues and expenses in the current year to the prior year and to the budget and obtain explanations for significant variances.
Compare assets and liabilities to amounts from the prior year and obtain explanations for significant variances.
Following an audit and review is a compilation which provides the lowest level of attest services for an HOA. When you choose financial statement compilation, our CPA will simply present the financial statement and related footnotes. At this level of service, the CPA will not express any opinion on the prepared statements. The CPA does not verify the numbers or provide any assurance. However, the CPA will note any obvious errors or mistakes in the financial statements.
Income Tax Returns
Homeowners associations are required to file tax returns, including a state return in Colorado. This does not mean an HOA necessarily owes taxes, but it should prepare and file a return regardless of its financial activities. There are some HOA revenues that are exempt from taxes if you file under section 528. Things like membership dues, and a host of other items are defined as exempt income and not subject to tax.
Because we file tax returns for over 200 Colorado HOAs every year, you can rest assured knowing you will fully maximize your deductions and file an accurate return.
If you’re a property management company, managing the accounting for your HOA clients can quickly become a burden. James Moore and Associates specialize in HOA accounting and takes on the monthly bookkeeping duties for any HOAs you’re managing. At the end of the year, we can file the HOA’s return making the yearly accounting process seamless.
Do you need an independent and credible 3rd party to ensure an accurate count for your board elections or any other HOA related ballot count?
Whether your HOA is electing a new board of directors or passing new bylaws, we provide independence, accuracy, and security. Many organizations employ an independent party and auditable processes to guarantee their elections are not subject to undue influence. James Moore and Associates ensure your HOA ballots are counted accurately and safe from external manipulation.
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3131 S Vaughn Way, Suite 120
Aurora, CO 80014