Cody Ravalli, CPA, provides boards of New York City cooperatives, condominiums, and other properties with comprehensive accounting services, including audits, reviews, and compilations.
While each report provides different levels of information about a property’s financial condition, all three are essential for financial oversight. Contact Cody today to gain insight into how your building is performing.
Financial Audits for NYC Co-ops and Condos
The board of directors of a co-op or condo is responsible for securing an annual audit of the property’s financial records and sharing it with the shareholders or unit owners. An audit provides the highest level of oversight and presents an objective basis for an opinion about the property’s financial condition.
Audits are typically prepared on an accrual basis and report all items either owed to or by the corporation in addition to cash activity. A comprehensive audit consists of:
- Reviewing the balance sheet, income statement, and cash flow statement
- Reviewing the information provided in the financial statements
- Verifying accounts receivable and payable with cooperative customers
- Reviewing inventory quality, quantity, valuation, records, and procedures
- Verifying the existence of recorded securities
- Sampling accounting records
- Reviewing minutes of the board of directors’ meetings for policy changes and instructions to management
Audits are the most complete financial report, requiring detailed internal planning by a CPA to determine what procedures to perform. Those procedures depend on the complexity of the property’s finances and the level of reliance on its internal financial controls.
Once the audit is complete, Cody Ravalli will produce a certified financial statement, which the board will distribute to shareholders, unit owners, and other legitimately interested parties. Notably, certified financial statements may also be necessary on an interim basis when:
- The property is seeking mortgage refinancing
- There is a sponsor work-out
- There is a substantial change in the property’s financial condition
Interim audits must contain the same information as the year-end audit; however, they are no substitute for annual audits of co-ops and condos.
Financial Reviews of Co-ops in New York City
Co-op boards and other property managers often request optional periodic reviews in addition to annual financial audits. Reviews are typically conducted mid-year for property managers who do not want to operate an entire year without independent verification of the building’s financial condition. Although a review can help with budgeting and reveal significant matters affecting the property’s financial statement, they do not:
- Provide a basis for expressing an opinion on a property’s financial statements
- Test accounting records
- Involve as high a level of inquiry as an audit
Nonetheless, many boards look to Cody Ravalli for expertly prepared, up-to-date financial information for ongoing internal controls and planning. If there are significant changes in a property’s financial condition, but an audit is not necessary, reviews provide the most current financial information.
Compilations are the least comprehensive financial reports prepared for NYC cooperatives and condominiums and are typically conducted during the third quarter of a property’s fiscal year to provide a picture of the property’s financial condition. Compilations are reported on an accrual basis and can be limited to an independently verified budget. The benefit of a compilation is that it provides a planning and budgeting guideline for the property.
Why Choose Cody Ravalli?
You can trust Cody Ravalli to provide you with quality professional service. He is well-versed in the structure and inner workings of cooperatives, condominiums, and other New York City properties.. Cody has the knowledge and expertise to conduct an audit that accurately portrays your property’s financial condition.
In addition to audits, reviews, and compilations, Cody’s services for co-op and condo boards include:
- Preparation of tax returns
- Preparation of Form 1098 for cooperatives for shareholder tax deductions
- Budget preparation assistance and review
- Forensic accounting
- Financial planning for capital improvement expenditures/reserves
- Tax planning and compliance
- Representation during tax audits
Cody Ravalli, CPA, offers insight and expertise to assist and guide boards through any issues their building may face. Above all, he prioritizes quality service and communication and is accessible and proactive so that his clients can benefit from his knowledge and experience.
Contact An Experienced CPA For an Audit of Your NYC Cooperative or Condominium
Well-managed co-ops and condos understand the importance of ongoing financial oversight and expert audits, reviews, and compilations. That’s where Cody Ravalli, CPA can assist you. Contact Cody today for all your property’s accounting, audit, and tax needs.
Cody Ravalli, CPA, provides first-rate accounting and audit services to co-op and condo boards in New York City