An OSBB audit is an independent review of the accounts, reporting and spending of an association of apartment co-owners (ОСББ): service charges, the annual budget, the repair fund and contractor agreements. Key Solutions performs it at the association's request and delivers a report that the board presents to the general meeting.
+38 (068) 777-14-74 Telegram WhatsApp
In short
- When you need it: co-owners question the spending, the board changes, the association reports on the budget, or it applies to a bank or fund.
- What you get: an auditor's report, a letter to the board listing discrepancies and recommendations, and a summary of findings for the general meeting.
- Timeline: in our experience, several weeks for one year once we have the full set of documents.
- Cost depends on the period, the number of accounts and contracts, employees and the state of the records. The fee is fixed in the contract.
- How to start: send us the charter, the budget, the decision to hold the review and the co-owners' questions.
When an OSBB needs an audit
An OSBB (об'єднання співвласників багатоквартирного будинку) is the legal entity through which apartment owners manage a building, similar to a homeowners' or condominium association. It needs an audit when co-owners, the board, a bank or a fund want an independent assessment of its spending and records. Typical situations:
| Situation | What we check | Result |
|---|---|---|
| Questions about spending | budget against actual payments, contracts, completion certificates | list of discrepancies with references to documents |
| New board or chair | bank and cash balances, debts, documents handed over | position at the handover date |
| Annual general meeting | budget performance, balance sheet, association funds | auditor's report to accompany the board's report |
| Application to a bank or fund | financial statements, earmarked funds | report in the format the recipient requests |
| Change of building manager | settlements with the manager, certificates, contract terms | reconciliation of settlements at the change date |
Review committee or auditor: the difference
The law gives the general meeting two ways to oversee the board's financial activity: elect a review committee (ревізійна комісія) from among the co-owners, or decide to engage an auditor (Art. 10 of the Law on Associations of Co-owners of Apartment Buildings, № 2866-III). A financial audit and a check of selected areas produce different reports, so the format is set in the contract.
| Format | Performed by | What you get |
|---|---|---|
| Review committee | co-owners elected by the general meeting | a check under the procedure approved by the meeting |
| Financial statement audit under ISA | an audit entity from the Register | independent auditor's report with an opinion on the statements |
| Agreed-upon procedures under ISRS 4400 | an audit entity from the Register | report on agreed-upon procedures with factual findings |
Agreed-upon procedures suit specific areas: the repair fund, a single construction contract, or co-owners' arrears. We also help a review committee draw up its list of procedures and requests to the board.
What an OSBB audit covers
- The budget (кошторис), balance sheet and the board's report on budget performance for the period.
- Charges and payments, co-owners' arrears, the reserve and repair funds.
- Bank statements, cash, earmarked receipts and funds from the state budget or donors.
- Contracts with contractors and the building manager, completion certificates, and meeting approval for contracts above the limit set in the charter.
- Income from renting out auxiliary premises and other common property.
- Payroll, personal income tax, military levy, social contribution and reports to the State Tax Service (ДПС).
- Annual financial statements and the report on the use of income of a non-profit organisation.
How an OSBB audit works
- Request and document list We receive the charter, the budget and the co-owners' questions and send a document list.
- Contract and scope We agree the format (ISA audit or agreed-upon procedures), period, timeline and fee.
- Budget and charges review We match payments to the budget, contracts and completion certificates and check charges and arrears.
- Findings discussed with the board We show the discrepancies and give the board time to provide explanations and documents.
- Report for the general meeting We deliver the report and a management letter and answer questions about the report.
Timeline
In our experience, an OSBB audit for one year takes several weeks from the time we receive a complete set of documents. The timeline depends on the number of accounts and construction contracts, the period under review and how quickly the board answers our requests.
What affects the cost
- The period under review: one year or several, for example the board's full term of office.
- The number of buildings, bank accounts and earmarked funds.
- The volume of construction and repair contracts that must be matched to completion certificates.
- Employees and payroll.
- The state of the records and source documents, including gaps that need restoring.
- The format: an ISA financial statement audit or agreed-upon procedures for selected areas.
We quote the fee after reviewing the documents and fix it in the contract.
What we need from you
- The charter and minutes of general meetings on the budget, charges and the decision to hold the review.
- Budgets, balance sheets and the board's annual reports for the period.
- Bank statements, cash documents, statements of charges.
- Contracts with contractors and the building manager, completion certificates.
- Access to the accounting database or ledger exports.
- A contact person from the board who answers our requests.
Result
- An independent auditor's report (ISA audit) or a report on agreed-upon procedures (ISRS 4400), in the format set in the contract.
- A letter to the board listing discrepancies and recommendations on the accounts, budget and contracts.
- A short summary of findings that the board can present to the general meeting.
- A list of tax risks to the association's non-profit status, if any are found.
Find out the cost of an OSBB audit
Tell us the number of buildings, the period to review and the co-owners' questions. We will reply with the format, the timeline and the fee.
How to commission an OSBB audit
The association commissions the audit, and the board signs the contract on its behalf: entering into service contracts is within the board's powers (Art. 10 of Law No. 2866-III). If the audit is to review the board's own work, the decision to engage an auditor is taken by the general meeting. A general meeting can be called by the board or by an initiative group of at least three owners of apartments or non-residential premises (Part 3 Art. 10 of Law No. 2866-III).
An individual co-owner has the right to receive all of the association's financial reports for review (Part 2 Art. 14 of Law No. 2866-III). You can bring these reports to a consultation, and we will go through the figures and draw up a list of questions for the board.
OSBB taxes and non-profit status
The law defines an OSBB as a non-profit organisation (Part 7 Art. 4 of Law No. 2866-III). For corporate income tax purposes the association must also meet the requirements of sub-para. 133.4.1 of the Tax Code of Ukraine (ПКУ), including inclusion in the Register of Non-Profit Institutions and Organisations; sub-para. 133.4.6 names OSBBs among such organisations. A non-profit organisation's income may be used only to maintain it and to pursue the purposes set in its charter (sub-para. 133.4.2).
Using funds for other purposes means income tax on the amount of such a transaction and removal from the Register of Non-Profit Institutions and Organisations (sub-para. 133.4.3). During the audit we therefore match each expense item to the charter and the budget and check payroll, social contribution, personal income tax and the report on the use of income that an OSBB files with its annual financial statements (para. 46.2 of the Tax Code).
Legal framework
Rules the work relies on
- Art. 10 of Law No. 2866-III — powers of the general meeting and the board, review committee or engagement of an auditor.
- Part 2 Art. 14 and Art. 18 of Law No. 2866-III — financial reports on a co-owner's request, report to the meeting on budget performance.
- Art. 21 of Law No. 2866-III — association funds, contributions, reserve and repair funds.
- sub-paras. 133.4.1–133.4.3 and 133.4.6 of the Tax Code — requirements for non-profit organisations and consequences of misusing funds.
- para. 46.2 of the Tax Code — report on the use of income and annual financial statements.
- items 1 and 7 of Part 1 Art. 1 of Law No. 2258-VIII — audit of financial statements and other audit services.
- Part 3 Art. 14 and Part 2 Art. 2 of Law No. 996-XIV — publication of statements with an auditor's report, size criteria.
Risks and why to hand the review to a team under contract
Accounting errors in an OSBB affect every co-owner. Spending outside the association's purposes puts its non-profit status at risk and leads to income tax, and disputes over co-owners' shares of contributions are settled in court (Part 4 Art. 20 of Law No. 2866-III).
An auditor from the Register works under a contract, so the scope, timeline and responsibility are fixed before the review starts. Legal matters, such as recovering arrears or challenging meeting resolutions, are handled by legal.ua.
Why Key Solutions
- Company
- ТОВ «АУДИТОРСЬКА ФІРМА «КЕЙ СОЛЮШНЗ», a Ukrainian limited liability company, EDRPOU code 39610085. The company's details are public in the Unified State Register (ЄДР).
- Register
- Key Solutions is entered in the Register of Auditors and Audit Entities (Реєстр аудиторів та суб'єктів аудиторської діяльності) under No. 4669.
- Contract
- We work under a contract: the scope, deadlines and responsibility are agreed before the work starts. Client information is protected by professional secrecy (Art. 11 of Law No. 2258-VIII).
- Group
- We are part of Innova Consulting Group: legal matters are handled by legal.ua, crypto-asset taxation by crystal.tax.
- Office
- Our office is at 77 Velyka Vasylkivska Street, Kyiv. Clients elsewhere in Ukraine are served remotely. The specialists who run our projects are listed on the Our employees page.
Frequently asked questions
How much does an OSBB audit cost?
The cost of an OSBB audit depends on the period under review, the number of buildings and bank accounts, the volume of contractor agreements, employees and the state of the records. We quote the fee after reviewing the documents and fix it in the contract.
Is an audit mandatory for an OSBB?
Law No. 2866-III sets no annual mandatory audit for an OSBB. The board's financial activity is overseen by a review committee, or the general meeting decides to engage an auditor (Art. 10). An audit is also needed when the charter, a meeting resolution, a bank or a fund requires one. Whether an association must publish statements with an auditor's report depends on its size (Part 3 Art. 14, Part 2 Art. 2 of Law No. 996-XIV); we can check this for your association at a consultation.
How do you commission an OSBB audit?
The association commissions the audit: the board signs the contract within its powers (Art. 10 of Law No. 2866-III), and a review of the board's own work is decided by the general meeting. Send us the charter, the budget and the list of questions. After reviewing the documents we propose a format, timeline and fee, and then sign the contract.
Who can initiate an independent OSBB audit?
The board, the review committee or co-owners can raise the question of an independent audit. A general meeting can be called by the board or by an initiative group of at least three owners of apartments or non-residential premises (Part 3 Art. 10 of Law No. 2866-III). The decision to engage an auditor to oversee the board is taken by the general meeting.
How does an audit differ from a review committee check?
The review committee is elected by the general meeting from among the co-owners, and the meeting also approves how it works (Art. 10 of Law No. 2866-III). An audit is performed under a contract by an audit entity from the Register, following international standards. An ISA auditor's report contains an independent opinion on the financial statements; an agreed-upon procedures report describes the procedures and factual findings without an opinion.
Can an OSBB audit be done remotely?
Yes, an OSBB audit can be done remotely: scanned documents, bank statements and exports from the accounting database are sent electronically, and questions are discussed online. Key Solutions has its office in Kyiv and serves associations in other cities remotely. Some original documents may be requested on a sample basis, as agreed in the contract.
Related services
Let's discuss your OSBB review
Tell us how many buildings and apartments the association has, the period to review, who is initiating it and what questions co-owners have about the spending. We will reply with the review format, the document list, the timeline and the fee.
Book a consultation Order the service +38 (068) 777-14-74 Telegram WhatsApp