TIME
IS RUNNING OUT
By
Darlys Walker
Published
February 19, 2014
Year-end activities are over and now it’s time to complete all the
required reporting per Florida Statute 718.111 (13). There are four
levels of reporting, so it’s very important that you understand
where your community falls and how you should move forward to comply
with these requirements. When in doubt ask your legal counsel or
your CPA for clarification.
1.
REPORT OF CASH
RECEIPTS AND DISBURSEMENTS - This is allowed for Associations who
have annual revenues of less than $100,000 or less than 75 units,
regardless of their annual assessment.
2. COMPILED
FINANCIAL STATEMENT- This is allowed for Associations who have
annual revenues of $100,000 OR MORE, BUT LESS THAN $200,000. Not
necessary if there are less than 75 units.
3. REVIEWED
FINANCIAL STATEMENTS- This is allowed for Associations who have
an annual revenue off $200,000 OR MORE, BUT LESS THAN $400,000. Not
necessary if there are less than 75 units.
4. AUDIT – This
is by far the most comprehensive and costly. This audit is required
for all Associations whose annual revenues are 400,000 OR MORE. As
stated previously, not necessary if there are less than 75 units.
In
the event a Board wishes to waive the required reporting, they must
refer to their Condominium documents before proceeding. Also note,
the 2008 amended statute prohibits Associations from waiving such
reporting for more than three consecutive years. The above
requirements only apply to Condominium Associations. So Condo
Boards, be advised, your time is running out. Per the stature the
reports MUST be available to your Homeowner no later than 120 days
from the end of the fiscal year.
Homeowners
Association requirements are slightly different and are as follows:
1. COMPILED
FINANCIALS- Associations with revenues of $150,000 but less than
$300,000 are required to prepare this report.
2.
REVIEWED
INANCIALS-An Association with revenues of at least $30000 but
less than $500,000 shall prepare this report.
3. AUDITED
FINANCIALS- An Association with annual revenues in excess of
$500,000 shall prepare this report
*An
Association with less than 50 units, regardless of annual revenue,
may prepare a compiled financial. The Association must complete the
appropriate reports and make it available to unit owners within 120
days of fiscal year end.
I
was unable to find language regarding the process or ability to
waive the required reporting. Let’s see what Eric and Jan have to
say. Did I miss something?
