MY HOA Management Co uses a relative manage our finances and accounting. I believe this is not legal. Conflict of interest, etc.

Your question implicates a couple of topics.  While use of relatives is usually not illegal, the use of a relative for auditing does raise questions regarding the qualifications of the relative to perform the accounting for the Association.  NRS 116.31142 states that the CIC shall adopt regulations prescribing the requirements for the preparation and presentation of financial statements of an association, including qualifications necessary for a person to prepare and present financial statements of an association and standards and format to be followed in preparing and presenting financial statements of an association. NAC 116.457 and NAC 116.461 sets forth a variety of requirements for auditing and certified review of the HOA financial records.  The Code provisions also require that an Auditor retained by the Association and performing the annual audit/financial review for an association must: (a) be a certified public accountant licensed pursuant to chapter 628 of NRS; and (b) be independent of the association as set forth in Section 100, “Independence, Integrity, and Objectivity,” of the American Institute of Certified Public Accountants Code of Professional Conduct.