Senatecommittee substitute makes the following changes to the 3rd edition.
Amends new GS 47C-3-118.1(a) and (b), in the NC Condominium Act, and new GS 47F-3-118.1(a) and (b), in the NC Planned Community Act, to clarify that the independent annual audit or financial review required under those provisions must beconducted by a certified public accountant who holds a certificateissued under the provisions ofGS Chapter 93.
Summary date: Jun 4 2013 - View summary
Summary date: May 15 2013 - View summary
House committee substitute makes the following changes to the 2nd edition:
Amends GS 47C-3-113.1(a) to change the upper limit of the executive board's bond to $1 million (was $5 million); amends subsection (b) to change the amount of the management agent's bond to an amount at least equal to the annual budgets of all of the agent's clients with an upper limit of $2 million (was, an amount at least equal to the annual operating budget of the association up to $5 million).
Makes identical changes to GS 47F-3-113.1(a) and (b).
Summary date: May 14 2013 - View summary
House committee substitute makes the following changes to the 1st edition.
Changes the long title.
Amends the fidelity bond requirements of GS 47C-3-113.1 of the North Carolina Condominium Act and GS 47F-3-113.1 of the North Carolina Planned Community Act, providing that fidelity bonds required by these sections must provide coverage in an amount at least equal to the annual operating budget of the association, but is not required to be greater than $5 million (was, bond must provide coverage in the amount of $1 million).
Amends GS 47C-3-118(a) and GS 47F-3-118(a), deleting language that established that an audit or extensive review or compilation of the books and records for the current or preceding fiscal year could be required by a vote of the majority of the board or by affirmative vote of a majority of unit or lot owners at an annual meeting or any special meeting properly called.
Enacts GS 47C-3-118.1 and 47F-3-118.1, Financial audit requirements, providing that the executive board must provide for an annual independent financial audit of the unit or lot owners' association if any of three specified conditions are met, including:
(1) The declaration, bylaws, or other governing documents expressly require conducting an annual financial audit.
(2) The association has annual revenues or expenditures of $250,000 or more.
(3) An audit is requested by a vote of a majority of the board or by a vote of a majority of the unit or lot owners present and voting in person or by proxy at any annual meeting or special meeting duly called for that purpose.
Requires the board to provide for an annual independent financial audit of the association if annual revenues or expenditures reach or surpass $150,000. The audit must be completed no later than one year after the end of the association's fiscal year and must be made available to unit or lot owners within 30 days after its completion.
Summary date: Apr 15 2013 - View summary
Amends GS Chapter 47C (North Carolina Condominium Act) and GS Chapter 47F (North Carolina Planned Community Act), providing that associations or unit owners' associations that have annual assessments for common expenses of $100,000 or more must obtain and maintain a fidelity bond that insures the association against losses resulting from theft or dishonesty by the officers, members, or employees of the association. Coverage will be in the amount of at least $1 million and the bond will be obtained on behalf of the association by the executive board.
Provides that management agents or companies hired by an association or unit owners' association must be covered at all times by a fidelity bond. Sets out the process to determine who is a management agent or company for the purposes of this section. Provides that a management agent or company is any person who, for compensation or the expectation of compensation, performs two or more of six specified activities, including preparing budgets, financial statements, or other financial reports for an association or unit owners' association or collecting, disbursing, or otherwise exercising dominion or control over money or other property belonging to an association or unit owners' association. Coverage provided must be at a minimum of $1 million and the bond is required to comply with specified conditions, including but not limited to, being written by an insurance company authorized to write fidelity bonds in North Carolina, covering the association's or unit owners' association manager and all or a portion of the employees, and protecting all or a portion of the association funds in custody of the manager or employees.
Provides that an annual independent financial audit will be required if the association or unit owners' association has annual assessments for common expenses of $250,000 or more. The audit, if required, must be completed no later than one year after the end of the association's fiscal year and will be made available to unit or lot owners within 30 days after its completion.
Makes conforming changes to the applicability section of GS Chapters 47C and 47F.
Effective July 1, 2013.
Summary date: Apr 12 2013 - View summary
To be summarized.