Within the state of Florida, there are very detailed statutory requirements, and administrative rules, relating to the year-end financial reports which are required to be prepared by Florida condominium associations. Here are the four levels of financial reporting for condominium association and homeowner associations.
1) Report of cash receipts and disbursements. This report must disclose the amount of receipts and expenses by account classification, and the statutes address specific categories which must be included. This type of report can be prepared by any association with total revenues of less than $100,000.00, or any association which operates and manages less than 75 units (regardless of the annual revenues).
2) Associations with total revenues of at least $100,000.00, but less than $200,000.00, are required to prepare compiled financial statements (unless the association has less than 75 units, or unless the members vote to waive this requirement and only require a report of cash receipts and disbursements).
3) Associations with total revenues of at least $200,000.00, but less than $400,000.00, are required to prepare reviewed financial statements.
4) Associations with total annual revenues of $400,000 or more. Audit is required to assure users of the financial statements that they are reliable. Tax Audit
What Does a CPA Do For The Audit?
The auditors’ examination includes observation of tangible assets, inspection of such documents as purchase orders and contracts, and the gathering of evidence from outsiders including banks, customers, and suppliers, as well as analysis of the client’s accounting records. The condominium association’s reserve study will also be reviewed during the audit.
How Canner Brody and Yan Can Help Your Association?
Canner Brody & Yan has been a trusted CPA Firm in South Florida for over 65 years with an expertise in real estate accounting. To better serve condominium association and HOAs, we have offices in Downtown Miami, Miami Lakes and Weston. Our experience working with Homeowner Associations and Condominium Boards can satisfy your Florida statutory requirements and help minimize your tax situation. To learn more, simply contact Andrew Brody, Managing Partner at Canner Brody & Yan, at 305-231-2150.
To learn more about our accounting services dedicated to real estate industry, visit us at www.flrealestatecpa.com.