New Legislation regarding HOA/Condo Financials

07/23/2013 14:02

The State of Florida recently made some changes for the coming year in regards to Homeowner's Association and Condominium Association Financial Reporting requirements. After many years, the State has increased the thresholds for requirements on all types of association engagements.  As always, if you have any questions, please contact us and we will be happy to make sure you are receiving the kind of service you deserve!

 

Below is the new statute that is effective July 1, 2013.

 

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.
 
2. An association that operates fewer than 50 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).