HOA & Condominium Association Audit Services — DC Metro Area
Homeowners associations and condominium associations in Virginia, Maryland, and Washington DC are frequently required by their governing documents and state statutes to obtain annual CPA audits or reviews. Virginia's Condominium Act (§55.1-1966) requires audits for associations with budgets over $75,000. Maryland HOA law (Real Property Article §11B-112) mandates annual financial statements, with audits required by most declarations. Your Virtual CPA provides HOA audits, financial statement reviews, and compilations for associations across the DC metro area — virtually, efficiently, and on time.
HOA Audit Requirements by State
Audit requirements vary by state and are further defined by your association's governing documents. Always verify your specific requirements with your CPA or HOA attorney.
Virginia
- Virginia Condominium Act (§55.1-1966): Audits required for associations with annual budgets over $75,000 (unless owners vote to waive)
- Virginia Property Owners' Association Act (§55.1-1835): Annual financial statements required; governing documents often mandate CPA audit
- Reserve fund must be maintained separately from operating fund (§55.1-1966)
Maryland
- Maryland HOA Act (Real Property §11B-112): Annual financial statement required; audit often required by declaration
- Maryland Condominium Act (Real Property §11-134): Annual financial statement required; most declarations require CPA audit
- Reserve fund accounting must be separately maintained
Washington DC
- DC Condominium Act (DC Code §42-1903.14): Annual financial statements required; audit often required by declaration or bylaws
- DC cooperative associations have similar financial reporting requirements
- Many DC condo declarations specifically require CPA-audited statements annually
HOA & Condo Audit Requirements: Virginia, Maryland & DC
State-specific requirements for homeowner and condominium associations
| Feature | Virginia | Maryland | Washington DC |
|---|---|---|---|
| Governing Law | VA Code §55.1-1955 | MD Condo Act / HOA Act | DC Condo Act |
| Audit Threshold | Set by bylaws | Set by bylaws; $150K+ typical | Set by bylaws |
| Review Accepted | Yes, if bylaws allow | Yes, for smaller budgets | Yes, if bylaws allow |
| Compilation Only | Small HOAs under $50K | Under $50K budget | Very small associations |
| Fannie Mae/Freddie Mac | Audit may be required | Audit may be required | Audit may be required |
| Reserve Study | Encouraged | Encouraged | Encouraged |
Audit vs. Review vs. Compilation — Which Does Your HOA Need?
Your governing documents specify the level of assurance required. Here's what each level means for your association.
| Service Level | What CPA Does | Assurance Level | Typical Cost (DC Metro) |
|---|---|---|---|
| Audit | Tests transactions, verifies balances, evaluates internal controls, expresses opinion on financial statements | Highest — Reasonable Assurance | $2,500–$8,000+ |
| Review | Analytical procedures and inquiries only — no detailed testing of transactions | Moderate — Limited Assurance | $1,500–$4,000 |
| Compilation | Assembles financial statements from management's information — no verification or assurance | None — No Assurance | $800–$2,000 |
Always check your association's declaration and bylaws to confirm the required level. When in doubt, request an audit for maximum protection and transparency to owners.
What HOA Auditors Examine
Our HOA audit covers all the key financial areas that matter most to your board, owners, and state regulators.
Assessment Revenue & Collections
Verify all assessments were billed per the board-approved budget, recorded correctly, and collected with proper delinquency tracking. Review payment plans and collection procedures.
Reserve Fund Accounting
Verify reserve funds are maintained in separate accounts from operating funds (required by state law), properly invested, and reconciled to the current reserve study. Review reserve fund deposits and withdrawals.
Vendor Payments & Contracts
Test payments to management company, landscaping, maintenance, insurance, and other vendors. Verify board authorization for contracts over the threshold in your governing documents.
Bank Reconciliations
Reconcile all operating and reserve bank accounts as of fiscal year end. Verify all outstanding checks and deposits in transit are properly documented.
Budget vs. Actual Analysis
Compare actual revenues and expenses to the board-approved budget. Identify significant variances and verify board authorization for over-budget expenditures.
Internal Controls Assessment
Evaluate financial controls including check signing authority, approval thresholds, segregation of duties, management company oversight, and financial reporting to the board.
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Bookkeeping Services
Monthly bookkeeping to keep your HOA audit-ready.
Virtual CFO Services
Strategic financial oversight for larger associations.
Book a Consultation
Get a free quote for your HOA audit.
HOA Audit FAQs
Common questions from HOA board members and property managers about association audit requirements.
Ready to Schedule Your HOA Audit?
Get a free quote for your homeowners association or condominium association audit. We'll confirm what your governing documents and state statutes require, and provide a clear timeline and fee estimate.
Serving HOAs and condo associations throughout Virginia, Maryland, and Washington DC.