Since 1978, the Michigan Condominium Act has required that an Association’s book and records be audited or reviewed annually by “independent accountants.” For small condominium associations, this requirement may have been ignored or otherwise neglected. The statute was recently amended to require that only associations with revenues in excess of $20,000.00 have their books and records undergo an independent audit or review. The amendment becomes effective January 14, 2014, and mandates that the review be conducted by a certified accountant. However, the law also provides that an audit will not be required if a majority of the association’s members vote to opt out.
Richard M. Delonis is an attorney that has represented Michigan community associations for 20 years.