Should the incoming board hire a CPA to audit the records of the developer?
The incoming board should always hire a CPA to audit the books of the developer that got turned over. The builder’s required to have an audit done but that audit, of course, is done by the builder’s CPA. The association should get their own CPA, typically the one they’re going to be using to do their taxes at the end of the year and at least do a cursory review of the audit that was done for the builder.
The incoming board should definitely hire a lawyer. There’s really two different lawyers that they need to be looking at. First, they need to hire a lawyer that specializes in transition. That way you can make sure that the developer turns over everything they’re supposed to turn over and the association can get started on the right foot. That attorney is also the one that’s going to help them determine whether or not they need further investigation by a CPA or by an engineer of some kind. In addition to that, they’re going to want to look for an attorney to handle their general council practice. Often times, the general council practice also includes collections, which are important in any association.