audit

IMPORTANCE OF PERFORMANCE AUDIT If you have recently joined the board of a newly-registered condominium building, you will certainly encounter a number of unfamiliar procedures and terms. The “performance audit” is one of these. The performance audit is a crucial component of the warranty on the common aspects of the project, which you and the other board members will be responsible for managing. Moreover, since the performance audit starts within the first year, it is advisable to become familiar with it as soon as feasible. The following is an overview to help you get started. What is Performance Audit? A requirement of Section 44 of the Condominium Act, the performance audit is a detailed evaluation of a project’s common features to detect any problems, such as water infiltration or fire safety issues, that need to be corrected. The first-year performance audit should be undertaken within six to ten months of the project’s registration, and the resulting report must be delivered by the end of the eleventh month after registration. The expert who performs the performance audit on behalf of the condominium association is known as the performance auditor. The performance auditor should possess the following credentials: Be in possession of a certificate of authorization under the Professional Engineers Act, or be in possession of a certificate of practise under the Architects Act. The condominium association is responsible for hiring and paying the performance auditor. What occurs throughout the Performance Audit? During the performance audit, all key building components, including the foundation, parking garage, elevators, and mechanical, electrical, and fire suppression systems, are examined. The performance auditor will also analyse any final reports required and conduct a poll of unit owners to assess whether damage to individual units may have been caused by a flaw in the common elements. In addition to the performance audit findings, the performance auditor will provide the builder with a performance audit monitoring summary (or PATS). The PATS, which contains a list of all items discovered during the performance audit, is used to keep track of repairs and facilitates communication between the condominium organisation and the builder. Every 90 days, the condominium organisation updates the PATS. From the first anniversary of the condominium project’s registration date, the builder will have 18 months to repair or resolve all items specified on the PATS that are protected by the warranty. Related posts. Sustaining a Safe and Sound Environment at Home Read More Smaller houses lead to bigger problems Read More Five Questions To Ask Your Builder Prior To Purchasing A New Home Read More How does a home warranty differ from an insurance policy? Read More Deposit Protection Eases Homebuying Stress Read More Importance of the performance audit Read More