Residential and commercial condominiums handle considerable resources throughout the year — condominium fees, reserve funds, capital works and service contracts — without, however, the same internal control structure found in a company. It is precisely in this context that independent audit of condominium accounts becomes important: it provides third parties — the property manager (síndico), the fiscal council and unit owners — with a technical, unbiased opinion on the reliability of the accounts presented at the assembly, prior to their approval.
Audipec has worked for decades auditing residential and commercial condominiums as well as hotel pools, supporting the accountability process with the same technical rigor applied to large corporations. Our work covers, among other aspects:
Review of management accounts and bank reconciliation
We reconcile the management reports presented by the property management company against the condominium's bank statements and financial investments, verifying full reconciliation of balances and correct accounting classification of income and expenses — essential for the assembly to approve accounts that genuinely reflect the period's financial activity.
Review of condominium fee revenue
We examine the process for collecting condominium fees, comparing budgeted amounts against amounts actually collected, and verifying the correct posting of payments in the property manager's control systems.
Delinquency analysis
We analyze the evolution and composition of payment delinquency over the period, unit by unit, allowing the property manager and fiscal council to identify trends, measure the impact on the condominium's cash flow and monitor collection actions taken.
Review of the expense accountability process
We evaluate the condominium's expense contracting and payment process across its various stages, including:
- Price quotes and criteria for selecting suppliers and service providers;
- Formal execution of contracts entered into by the condominium;
- Verification of the withholding and payment of taxes due on payments to suppliers and service providers;
- Review of tax, labor and social security clearance certificates for service providers under labor outsourcing contracts, mitigating the risk of the condominium's joint or subsidiary liability;
- Verification of supporting documentation (invoices, receipts and bills) for each significant expense of the period.
Reserve fund and capital works
We verify the movement of the reserve fund and, where applicable, the financial monitoring of works and renovations — budget approved at the assembly, measurements and contract amendments.
The results of this examination are consolidated into an Independent Audit Report, which provides the condominium assembly with a technical opinion on the adequacy of the accounts presented — bringing greater transparency to the property manager, the fiscal council and all unit owners.