Common Interest Realty Associations

Common interest realty associations are responsible for the administration, operation, maintenance and repairs, and replacement of the common elements of properties such as condominiums, cooperative housing, townhomes, and timeshare units.

The owners elect a board of directors for the Association to represent their interest in the ownership of the common property. Often these boards contract with a professional management company to manage the association on behalf of the owners.

Both the management company and the board of directors have a fiduciary responsibility to the owners of the property. To fulfill this fiduciary responsibility it is imperative that the board engage a firm highly qualified in providing professional accounting services to the Association.

Fuoco Group's CIRA Practice is made of a team of professionals whose backgrounds offers vast experience to positions us to offer a comprehensive suite of services to common interest realty associations. All supplemented with accounting, tax, and financial investigation consultants.

Audit, Review, and Compilation of Annual and Interim Financial Statements

Auditing is a multifaceted process developed by the accounting profession for the examination of financial statements by CPAs. It consists of gathering and evaluating evidence to test the conformity of the financial statements with accounting principles generally accepted in the United States of America. An audit offers homeowners and mortgagors reasonable assurance that the statements representing an Association's financial position and the results of its operations are in conformity with those principles.

Audits are by no means just for large, publicly-held companies. The financial statements of many community associations are audited regularly. Audits add credibility to financial statements and provide a type of assurance to an Association's homeowners. Audits also provide information that is important to management when making critical decisions.

Fuoco Group also offers review and compilation services. In performing reviews, we apply certain analytical procedures to an Association's financial statements and make certain inquiries of management. Review procedures, which are substantially less comprehensive than those performed in an audit; enable us to express limited assurance on the conformity of the financial statements with generally accepted accounting principles. In compilations, we format financial information supplied by you into financial statements but do not express any assurance on the statements.

Tax & Management Advisory Services
As tax advisors, we prepare tax returns for the Association and assist them in developing their tax planning strategies to achieve tax economies. We represent Associations before taxing authorities and provide tax consulting services on a broad range of financial and investment decisions.

In response to the changing needs of common interest realty associations, we continuously review the breadth and depth of our management advisory services. We are increasingly playing a vital role in assisting Associations to improve the use of their resources and increase their efficiency.

Our technical knowledge and Association experience provide the basis for a broad range of management advisory services, such as:
  • Analysis and projection of current and future replacement reserve funding requirements;
  • Counseling and assistance on annual budget development;
  • Review of records during developer turnover;
  • Educational seminars for boards of directors and general membership;
  • Expert testimony and litigation support services on behalf of the Association;
  • Investment counseling for Association funds; and,
  • Human resource allocation.

Developer Turnover Examinations
Upon turnover of the property from the developer to the realty owners, the Board of Directors has a fiduciary responsibility to its members to review the finances of the Association. Oftentimes, the developer has under funded reserve accounts, used Association funds to pay their own expenses and subsequently left the Association financially strapped. Our professionals can assist the Board to determine if such conditions exist. In addition to assessing the finances of the Association, we can review the documents to be turned over and ensure that the developer is in compliance with state statutes.

Other procedures may include:
  • Inventory records and documents before turnover to the homeowners.
  • Review and recompute assessments to ensure that assessments have been both billed and collected properly.
  • Examine member and developer/converter assessment amounts.
  • Examine cash disbursements of the Association for propriety.
  • Analyze financial statements and prepare proofs of cash for all cash accounts; ascertain the balances of other current asset amounts such as utility deposits, unexpired insurance premiums, and other sundry assets.
  • Prepare a schedule of outstanding obligations, past due amounts for collection, and review contracts and prepare abstracts for the Association's legal counsel.


In The News

The New York Real Estate Journal recently featured a "Ones To Watch" Spotlight, focusing on both up and coming professionals as well as industry veterans across all areas of real estate. Congratulations to Lou Fuoco CPA, CEPA, for being included in this prestigious group of “OTW” for 2019!

Press and Events

Fuoco Group and TFG Related Entities are proud to announce that Fuoco Group’s Hauppauge Office, was voted #2 overall in the category of “Accounting Firm Less Than 100 Employees” in the 2019 Long Island Business News Reader Rankings. The Firm was also honored to be recognized as a “top three” Best Accounting Firm Finalist.
Scott Small, CPA, has  joined the Fuoco Group accounting and business advisory firm as Audit and Accounting Senior Manager in the Hauppauge office. Scott will assist the Directors in New York and Florida with expanding the Firm’s accounting and assurance practice.