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I wanted to know if its common practice that the board members and shareholders do not get backup to yearly financial reports? We just get 15-16 pages but nothing to review against? How do we know if the management company and/or auditor were correct?
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Yes, it's completely standard to get a 15-16 page report prepared by the coop's accountants, with no backup material. The coop's managing agent, president, and treasurer are required to sign off on a representation letter affirming that all relevant material has been given to the accountants, and the accountants work from that information. An annual financial report typically contains summary numbers plus breakdowns by category, so you get fairly detailed info but not individual invoices and bank statements.
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Board Talk members who registered prior to March 9th, 2016 will need to reset their password.