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YEAR END FINANCIAL REPORTING FOR ASSOCIATIONS
January 1, 1999
All associations in Florida are required by statute to
provide a year end financial report to their owners.
Condominiums and Cooperatives are required to mail or
personally deliver to all unit owners, within 60 days, or
as otherwise provided in the bylaws of the corporation, a
complete financial report of actual receipts and
expenditures for the previous 12 months. The report shall
show the amounts of receipts by accounts and receipt
classifications and the amounts of expenses by accounts and
expense classifications.
Condominiums and cooperatives which operate with more than
50 units, and having annual revenues of more than $100,000,
shall prepare and deliver a financial statement within 90
days following the end of the fiscal or calendar year.
The financial statements shall be compiled, reviewed or
audited depending on the total amount of annual revenues.
Associations having annual revenues in excess of $100,000
but less than $200,000 shall at a minimum, prepare a
compiled financial statement.
Associations having annual revenues in excess of $200,000
but less than $400,000 shall at a minimum, prepare a
reviewed financial statement.
Associations having annual revenues of $400,000 or more
shall prepare audited financial statements.
Associations can waive these reporting requirements when a
majority of the voting interests of the association at a
duly called meeting of the association have determined for
a fiscal year to waive the above requirements.
PLEASE NOTE: The meeting shall be held prior to the end of
the fiscal year, and the waiver shall be effective for only
1 fiscal year.
Homeowners associations are required to mail or personally
deliver to all unit owners, within 60 days or as otherwise
provided in the bylaws of the corporation, a complete
financial report of actual receipts and expenditures for
the previous 12 months. The report shall show the amounts
of receipts by accounts, receipt classifications, and the
amounts of expenses by accounts and expense
classifications. Unless provided for in the documents,
there are no statutes requiring the homeowners association
to provide financial statements.
The Administrative Code requires some of the following
components for Financial Reports and Financial Statements;
Financial Reports
Must be prepared on a cash basis, show all receipts &
expenditures, include Reserves for Capital Expenditures,
Deferred Maintenance and any other category for which the
association maintains a reserve account.
Reserve Disclosures include: beginning balance in each
reserve account at the beginning of the fiscal period, the
amount of assessments and other additions to each reserve
account including authorized transfers from each other
reserve accounts, the amount disbursed or expended from
each reserve account, the ending balance in each reserve
account as of the end of the fiscal period, the manner by
which reserves were estimated and the manner by which and
the last date that reserve items were estimated. There are
also other disclosures concerning revenue and expenses for
Limited Common Elements. Please refer to Chapter 61B-22,
Florida Administrative Code for further details.
Financial Statements
Must be prepared on the accrual basis using fund
accounting. Required components include accountant’s or
auditor’s report, balance sheet, statement of revenues and
expenses, statement of changes in fund balances, statement
of cash flows and notes. In addition, there are reserve
disclosures, the method by which income and expenses were
allocated to the unit owners, special assessment
disclosures and limited common element disclosures. Please
refer to Chapter 61B-22, Florida Administrative Code for
further details.
Copyright 2007© Associated Property Management of the Palm Beaches, Inc.
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