WHICH REPORT DO YOU NEED?
By
Rafael Aquino
Published April 20, 2022
Financial Reporting requirements are outlined in
the Florida Statutes for both Condos and HOA’s with the specific
threshold points required, depending on your annual revenue. Keep
in mind that your annual revenue should include any special
assessments you may have. Below you will find what the condo
statute requires which is the same for HOA’s:
(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. The rules must include, but not be
limited to, standards for presenting a summary of association
reserves, including a good faith estimate disclosing the annual
amount of reserve funds that would be necessary for the association
to fully fund reserves for each reserve item based on the
straight-line accounting method. This disclosure is not applicable
to reserves funded via the pooling method. In adopting such rules,
the division shall consider the number of members and annual
revenues of an association. Financial reports shall be prepared as
follows:
(a) An association
that meets the criteria of this paragraph shall prepare a complete
set of financial statements in accordance with generally accepted
accounting principles. The financial statements must be based upon
the association’s total annual revenues, as follows:
1. An association
with total annual revenues of $150,000 or more, but less than
$300,000, shall prepare compiled financial statements.
2. An association
with total annual revenues of at least $300,000, but less than
$500,000, shall prepare reviewed financial statements.
3. An association
with total annual revenues of $500,000 or more shall prepare audited
financial statements.
(b)1. An
association with total annual revenues of less than $150,000 shall
prepare a report of cash receipts and expenditures.
You also should remember that once you’ve
completed the report your work is not done. You will need to let
the residents know that the report is available for review, copies,
or online access.
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