M.D. from New Jersey writes:
Dear Mister Condo,
Is there a law in New Jersey that you have to have an audit every year even if your condo is only 20 units?
Mister Condo replies:
M.D., I am not aware of any state that requires annual audits of condo association finances regardless of size. My understanding of New Jersey law is that the Non Profit Corporation Act, which governs Non Profit corporations like condo associations, has a provision that allows for annual audits to be requested by unit owners. I suppose that could be construed as a requirement depending on your interpretation of unit owner request.
While useful, audits can be expensive and time consuming. I know of several larger associations who conduct audits every two to three years. Not because the law requires them to do so but because the sheer volume of money involved makes it prudent to do so. These are condos with hundreds of units, not smaller associations like yours. My advice would be to speak to the Board, Property Manager, and/or the association’s attorney and inquire as to whether or not an annual audit is required. Best wishes.