Sonnenberg & Company CPAs, A Professional Corporation

Specializing in Not-for-Profit Organizations and Homeowners Associations since 1972

HOAs

Since 1972, we have prepared over 15,000 audits, reviews, compilations and tax returns of Homeowners Associations, working with over 100 management companies throughout California.

Audit/Review/Compilation

  • Audit report in accordance with the AICPA Audit & Accounting Guide for Common Interest Reality Associations (CIRA Guide)
  • If your Association does not require an audit, we can prepare a financial review or compilation
  • Preparation of accrual basis financial statements, operating vs. reserve funds and two year comparative reports
  • Management Advisory Letter - Standard financial recommendations to help the Board and management company meet fiduciary duties more effectively. If reportable conditions or material weaknesses exist, they are disclosed in this letter.
  • SAS 114 & 115 letters as required

Income Tax

We are very familiar with all of the technical requirements of HOA taxation and provide the following tax services:

  • Federal Form 1120 or 1120H as appropriate, California Forms 100 and Form 199
  • Form 990 if applicable
  • Tax Filing Instructions, Due Dates, Estimated Tax coupons, envelopes

 

A partial list of California Civil Code sections relevant to HOAs:

§4100 "Common Interest Development" Defined

§4925 Open Meetings; Open Forum

§4280 Content of Articles of Incorporation

§5300 Annual Budget Report

§5305 Review of Financial Statement

§5550 Reserve Study Requirements

§5565 Summary of Association Reserves

§5800 Limitation of Officer and Director Liability

§5805 Limitation of Member Liability

§5600 Duty to Levy Assessments; Fees to Defray Costs

§4525 Disclosure to Prospective Purchaser

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