Who should execute the representation letter?

• A. The management company or a board officer, or both, depending on counsel and best practices
• B. The homeowners association president only
• C. The external auditor only
• D. The CPA who writes the letter

Answer: (A)

The representation letter is a formal assurance from those who have authority to bind the HOA and oversee its financial statements. In a community association, that authority may rest with the management company (if they prepare and maintain the books) or with a board officer (such as the HOA president) who speaks for the board. Best practice is to have the person or persons empowered to represent the HOA sign the letter, and sometimes both the management company and the board officer sign to reflect both management representation and governance oversight, depending on counsel’s guidance and the engagement terms. The signer must be someone with actual authority to bind the HOA; the auditor does not sign on behalf of the HOA, and the CPA who prepares or writes the letter is the auditor, not the entity’s representative.