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YOU BETTER HAVE FINISHED YOUR 2023 FINANCIAL REPORT!
By
Eric Glazer, Esq.
Published April 29, 2024
Here’s one law that applies to both condominiums and homeowner
associations:
Within 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, but not later
than 120 days after the end of the fiscal year, or date as
provided in the bylaws, the association shall mail to each unit
owner or hand deliver to each unit owner, a copy of the
financial report or a notice that a copy of the financial report
will be mailed or hand delivered to the unit owner, without
charge, upon receipt of a written request from the unit owner.
Almost all associations run their fiscal year to mirror the
calendar year, meaning from January 1st to December
31st. So, when you plug in the dates to the above,
it simply means:
By March 30th: the association must
be under contract for the preparation and completion of, a
financial report for the preceding fiscal year.
By April 30th: Within 21 days after
the final financial report is completed, but not later than
April 30th, the association shall mail to each unit
owner or hand deliver to each unit owner, a copy of the
financial report or a notice that a copy of the financial report
will be mailed or hand delivered to the unit owner, without
charge, upon receipt of a written request from the unit owner.
Today is April 29th. That means your time is up.
I hope you complied with the above.
The type of year end report your association must prepare
depends upon the size of your annual budget.
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.
4. An association with total annual revenues of less than
$150,000 shall prepare a report of cash receipts and
expenditures.
I’ll conclude by saying this……if a condo association makes a
mistake and the DBPR finds out about it, they would rather
educate you than punish you. The exception is failure to timely
prepare your year end financial reports. They won’t stand for
that, and I can’t blame them. There should be no excuse for not
timely preparing your year end financial statement unless, your
prior management company refuses to turn over necessary
records. I have seen condo associations get hit with fines
totaling several thousand dollars.
Since HOAs are not under the control of the DBPR, there really
is not a penalty for an HOA to timely complete the year end
statement. It’s almost “We’ll get to it when we get to it” in
many instances. There’s no fear of failing to timely have it
prepared.
In any event, in condo and HOA world, this is your April 15th.
Good luck.
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About
HOA & Condo Blog
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Eric Glazer graduated
from the University of Miami School of Law in 1992 after
receiving a B.A. from NYU. He has practiced community
association law for three decades and is the owner of
Glazer and Sachs, P.A. a five attorney law firm with
offices in Fort Lauderdale and Orlando.
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Eric is Board Certified by The Florida Bar in
Condominium and Planned Development Law.
Since 2009, Eric
has been the host of Condo Craze and HOAs, a weekly one-hour
radio show airing at 11 a.m. each Sunday on 850 WFTL. Recently,
he moved the show to YouTube, transforming it into a more
dynamic and interactive experience. This move not only allows
viewers to engage in live chats with Eric and other participants
but also enables a broader audience to access free advice,
making valuable insights more widely available.
See:
www.condocrazeandhoas.com.
Eric is the first attorney in the State of
Florida that designed a course that certifies condominium and
HOA residents as eligible to serve on a Board of Directors and
has now certified more than 20,000 Floridians all across the
state. He is certified as a Circuit Court Mediator by The
Florida Supreme Court and has mediated dozens of disputes
between associations and unit owners. Eric also devotes
significant time to advancing legislation in the best interest
of Florida community association members.
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