Independent Audit

The vast majority of destination clubs are privately held, which does not require financial discloser to members. Following Tanner & Haley’s bankruptcy, the industry made positive steps to provide additional financial information to members and potential members. An independent audit is an examination of a club's financial statements by an outside audit firm.

The Destination Club Association now requires club members to conduct an independent audit annually and pass the Net Asset Test to confirm that the majority of membership fees are secured by real estate holdings.

Back to the Destination Club Glossary.