2024 Annual Audit - What Happens Next?

The bid to perform the 2024 Annual Audit was approved by the Board on October 7, 2025. The bid was $7,039, about $3,000 higher than the previous year's fee by a different, local auditor.

The 2024 Annual Audit was completed and dated February 4, 2026 (the day after the February 2026 Board Meeting).

The 2024 Annual Audit was received on or before February 24, 2026, according to the Town & Country Property Manager's Report included with the Minutes of the March 3, 2026 Board Meeting.

Why didn't the Board Treasurer mention receipt of the 2024 Annual Audit at the March 3, 2026 Board Meeting?

The HOA's procedures for the Annual Audit are found in the Procedures Reference Manual (Art. III, §C,  ¶2a-j).

The Annual Audit was due by August 31, 2025 (¶2c), but it hadn't even been ordered yet from L. Douglas Johnson, CPA yet. Why not? Danny Trapp was Board President. William Hill was Board Treasurer. CAMS was the property management company. Why wasn't the 2024 Annual Audit ordered in February 2025 or in March 2025?

"The Audit Report will be reviewed by the Finance Committee and questions will be directed to the auditor." (¶2h)
  • Did the Finance Committee review the 2024 Annual Audit?
  • What questions did they direct to the auditor?
  • What were his answers?
  • Are these recorded in Minutes of the Finance Committee and available for inspection by Members?
  • Did the Finance Committee ask 
    • the date of the annuity?
    • the name of the issuer of the annuity?
    • the name of the Annuitant?
    • who authorized the withdrawal of $126,351.61 from South Carolina Federal Credit Union?
    • who authorized payment of the $126,352 premium to the annuity company?
"When the Finance Committee is satisfied that the report is complete, the auditor will be asked to appear before the full Board and present his findings." (¶2i)
  • When will the auditor appear before the full Board?
  • Will this be in a scheduled, public, Regular Board Meeting that is open to Members and residents?
  • Will the Board be prepared to ask questions?
  • Will the Board Members actually ask intelligent questions?
  • Will the Board reveal who the Annuitant is and question the auditor about his statement in the Audit that says the annuitant is a "current board member"?
"The approval of the audit by the Board provides closure to the procedure." (¶2j)

In October 2025 the Board (at the time) selected an auditor whose office is in Greensboro, North Carolina. Is his fee for time and travel to Columbia to present the audit to the Board included in the $7,039 fee?

Will Voting Members be permitted to ask questions of the auditor?

Will Association Members (homeowners) be permitted to ask questions of the auditor?

The annuity is not the only topic in the audit that deserves close inspection and examination. Reserves of the HOA demand attention.


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