money

Money is put into the association's reserve account by a utility audit.

True or False: Utility Audits Create More Work

When managers of businesses or associations look into a utility audit, they often have several common misconceptions about the process. Among their list of concerns, this question tends to pop up frequently:

Won’t a utility audit require a lot of work from our property manager, business owner, and/or management company?

In short, the answer is both yes and no: yes in the short term, and no in the long term.

 

Yes, in the short run. This is due to the fact that in order to begin a utility audit, Pacific Utility Audit requires copies of the most recent 12 months' utility bills from the association, and signed contracts. Also, if a particular account was previously billed erroneously or a rate schedule change is made, the property manager will have to supply copies of that account's utility bill each month during the contract term. This is in order to calculate the monthly savings for that particular account after our utility audit or to verify that the account is now being billed correctly.

No, in the long run. This is because if money is put into that association's reserve accounts, either through a refund or future utility savings, then that property manager in now able to make the necessary repairs or upgrades that the association needs. This, in turn, reduces the number of complaints that they would otherwise receive due to poor grounds maintenance, obsolete equipment, special assessments, or an increase in the monthly homeowners' dues. Also, the property manager and management company is looked upon with approval and gratitude by the board for introducing them to this service that put money into their reserve accounts at no cost to the association!

 

If you have other questions or concerns regarding utility audits, Pacific Utility Audit has several helpful resources to give you the answers you need. You can view or download a list of frequently asked questions on our website or read more about our services and solutions.