If you’re on a condo board in Ontario, you know year-end can get busy fast. From budget planning and renewals to owner meetings and audit prep, getting everything in order can be a challenge if you aren’t proactively prepared. It’s a key responsibility under the Condominium Act, and making sure your finances are organized before the auditor steps in can save you stress (and a few late nights).
Here’s how to get your board audit-ready and confident heading into the new year.
Audit Requirements Under the Condominium Act
Every Ontario condominium board must have its financial statements audited annually by a licensed public accountant. The audit ensures your financial records accurately reflect the corporation’s operations and that owners can trust how their money is being managed. Under the Condominium Act, boards are required by law to allocate 10% of the annual budget to a major repairs and replacement fund, which must be reviewed every three years.
Auditors will review your corporation’s:
- General ledger and trial balance
- Bank statements and reconciliations
- Reserve fund and operating fund records
- Meeting minutes and contracts
- Invoices, receipts, and expense reports
Having these organized and accessible not only keeps you compliant but also builds transparency and trust with owners. The CAO also keeps a public registry with details about each condo’s board of directors, management services, and the date of its most recent annual general meeting.
Organize Key Financial Documents Early
Start by reviewing what you have and what might be missing. Ensure that all financial transactions for the year are accurately recorded, categorized, and supported by applicable documentation. Check that reserve fund contributions match your corporation’s latest reserve fund study, and confirm that all invoices are approved and paid.
If you work with a community management company, connect with your manager early to align on deadlines and information sharing. The earlier you collaborate, the smoother your audit will be.
Record-Keeping Tips to Simplify Audit Prep
Consistency is key. Keep financial and meeting records in a single, secure location where board members can easily access them. Avoid last-minute scrambles by setting a recurring reminder each month to upload and review documents.
Many boards are switching from paper binders and email threads to digital record-keeping tools. BuildingLink makes it simple to store, organize, and share key financial records and meeting documents with your board and community manager. That means fewer misplaced files and faster access when your auditor asks for something specific.
Make Year-End a Team Effort
An audit isn’t just the treasurer’s responsibility; it’s a board-wide effort. Communicate early about what’s needed, set clear roles, and schedule time to review the financial statements together before the auditor’s visit. This not only ensures accuracy but helps every board member feel informed and involved.
Enter the New Year with Confidence
Getting audit-ready doesn’t have to be stressful. With good organization, the right digital tools, and a bit of planning, your board can make the process efficient, transparent, and stress-free, and start the new year on solid financial footing.
Ready to make record-keeping easier for your board? Book a BuildingLink demo today and see how we can help simplify your condo management.
