Thursday, May 23, 2013

Annual Reporting by Associations


The annual financial reports your association is required to prepare depends on the total annual revenue generated from all sources.  This is also known as the total income and should be easily identified on the annual budget which the association is required to prepare and provide to owners.  There is no requirement all associations submit to audits.

For Homeowner Associations, Fla. Stat. 720.303(7)(a) provides: 

1. An association with total annual revenues of $100,000 or more, but less than $200,000, shall prepare compiled financial statements. 

2. An association with total annual revenues of at least $200,000, but less than $400,000, shall prepare reviewed financial statements. 

3. An association with total annual revenues of $400,000 or more shall prepare audited financial statements. 

Fla. Stat. 720.303(7)(b) provides: 

1. An association with total annual revenues of less than $100,000 shall prepare a report of cash receipts and expenditures. 

2. An association in a community of fewer than 50 parcels, regardless of the association’s annual revenues, may prepare a report of cash receipts and expenditures in lieu of financial statements required by paragraph (a) unless the governing documents provide otherwise. 

For condominium associations, Fla. Stat. 718.111(13)(a) provides:

1. An association with total annual revenues of $100,000 or more, but less than $200,000, shall prepare compiled financial statements.
2. An association with total annual revenues of at least $200,000, but less than $400,000, shall prepare reviewed financial statements.
3. An association with total annual revenues of $400,000 or more shall prepare audited financial statements.
Fla. Stat. 718.111(13)(a) provides:

1. An association with total annual revenues of less than $100,000 shall prepare a report of cash receipts and expenditures.

2. An association that operates fewer than 75 units, regardless of the association’s annual revenues, shall prepare a report of cash receipts and expenditures in lieu of financial statements required by paragraph (a).

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