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
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!
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.
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.
||Jan Bergemann is president of Cyber Citizens For Justice,
's largest state-wide property owners' advocacy group.
CCFJ works on legislation to help owners living in
associations. He moved to
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
- 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
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