FINANCIAL REPORTING?

By Jan Bergemann

Published April 19, 2019

 

Every year there is a big hoopla about “FINANCIAL REPORTING” in many associations. In all honesty – I don’t understand why?       

 

The statutes are very clear about the procedures of financial reporting. The Condo Act [FS 718.111(13)] and the HOA Act [FS 720.303(7)] spell out in detail how the association should deal with this “hot” topic.

 

Owners should remember that the law doesn’t require the association to distribute copies of the financial report to each owner – they can, but they don’t have to. A notice sent to homeowners stating that the financial report is available on request will do. After receiving the notice it’s up to the owner to get the copy if he/she wishes to see the report. In reality: It’s a money-saving procedure. Let’s be honest: How many owners really bother to read the report? This way the owners wanting to take a closer look at the report have the opportunity to do so without the association having to mail out copies to all owners – most of them would just end up in the trash-can without being read!

 

A little hint to owners: Please read the details of the procedure in the statutes before raising hell -- only to be told you are wrong!


FS 718.111(13): FINANCIAL REPORTING.Within 90 days after the end of the fiscal year, or annually on a date provided in the bylaws, the association shall prepare and complete, or contract for the preparation and completion of, a financial report for the preceding fiscal year. Within 21 days after the final financial report is completed by the association or received from the third party, but not later than 120 days after the end of the fiscal year or other date as provided in the bylaws, the association shall mail to each unit owner at the address last furnished to the association by the unit owner, or hand deliver to each unit owner, a copy of the most recent financial report or a notice that a copy of the most recent financial report will be mailed or hand delivered to the unit owner, without charge, within 5 business days after receipt of a written request from the unit owner. The division shall adopt rules setting forth uniform accounting principles and standards to be used by all associations and addressing the financial reporting requirements for multicondominium associations.

 

FS 720.303(7): FINANCIAL REPORTING. Within 90 days after the end of the fiscal year, or annually on the date provided in the bylaws, the association shall prepare and complete, or contract with a third party for the preparation and completion of, a financial report for the preceding fiscal year. Within 21 days after the final financial report is completed by the association or received from the third party, but not later than 120 days after the end of the fiscal year or other date as provided in the bylaws, the association shall, within the time limits set forth in subsection (5), provide each member with a copy of the annual financial report or a written notice that a copy of the financial report is available upon request at no charge to the member.


HTML Comment Box is loading comments...
 
Jan Bergemann Jan Bergemann is president of Cyber Citizens For Justice, Florida 's largest state-wide property owners' advocacy group. CCFJ works on legislation to help owners living in community  

associations. He moved to Florida in 1995 - hoping to retire. He moved into a HOA, where the developer cheated the homeowners and used the association dues for his own purposes. End of retirement!

 

CCFJ was born in the year 2000, when some owners met in Tallahassee - finding out that power is only in numbers. Bergemann was a member of Governor Jeb Bush's HOA Task force in 2003/2004.

 

The organization has two websites to inform interested Florida homeowners and condo owners:

News Website: http://www.ccfj.net/.

Educational Website: http://www.ccfjfoundation.net/.

   
We think that only owners can really represent owners, since all service providers surely have a different interest! We are trying to create owner-friendly laws, but the best laws are useless without enforcement. And enforcement is totally lacking in Florida !


Join the 

CCFJ Email List
Email:  

For Email Marketing you can trust