Annual HOA Audits in Alaska

Upon the transfer of association control, Sec. 34.08.340(b) states: “The records shall be reviewed by an independent certified public accountant.  The minimum report required is a review in accordance with generally accepted accounting standards as defined by regulation by the Board of Public Accountancy.  The accountant performing the review shall examine to the extent necessary supporting documents and records, including the cash disbursements and related paid invoices to determine if expenditures were for the common interest community purposes and the billings, cash receipts, and related records to determine that the declarant was charged and paid the proper amounts of assessments.”

If your bylaws or governing documents require your association to perform annual audits, then you must do so. Failure to comply with your bylaws could be a breach of fiduciary duty and may cause legal issues.