Question:
Is a HOA operating under 501c required to do annual audits?
Also who would I report an HOA to that is not following Texas State compliance code’s and hasn’t for years. Also recently the Boards President wrote a personal check to her husband for $2,000 and then wrote a HOA CHECK paying herself back saying it was for paying him for supplies.
– Carla
Answer:
Hi Carla,
The IRS does not require nonprofits to perform independent audits, but the federal Office of Management and Budget does require audits for nonprofits that spend $500,000 or more in federal funds a year. In Texas, the law requires condominium associations to be audited at least once a year. Homeowners associations are not required by Texas law to perform an audit, though it is best to still do so.
As for reporting your HOA, there is currently no state agency in Texas that governs HOAs. You may try filing a complaint with your Attorney General’s Office, though there is no guarantee that they will resolve your issue. It may be best to seek advice from a lawyer to know what action you can take.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
