The primary purpose of an audit is to assure users of the financial statements that these statements are reliable.

When is a Condominium Association Required to Have an Audit?

Florida law requires condominium, cooperative, and homeowners’ associations to have audits. Condominium and homeowners’ Association financial reporting requirements are similar under the following Florida Statutes:

  • Florida Chapter 718.111 – Condominium Act
  • Florida Chapter 719.104 – Cooperatives Act
  • Florida Chapter 720.303 – Homeowners’ Association Act

The level of required financial report depends upon condominium association’s annual revenues.

  • Associations with revenues of more than $400,000 must produce an audit.
  • Associations with revenues of $200,000 to $400,000 must produce a review.
  • Associations with revenues of $100,000 to $200,000 must produce a compilation.
  • Associations with revenues of less than $100,000 must produce a report of cash receipts and expenditures.
  • Community associations with less than 50 units or 50 parcels may produce a report of cash receipts and expenditures, regardless of annual revenues.

Board Members and Community Association Managers (CAMs) are required by Florida Law to issue financial reports timely. The association’s required to provide the year-end financial report to owners or let them know it’s available to them free of charge as outlined below:

  • Condominium Association have 120 days after the fiscal year ends.
  • Cooperative Association have 90 days after the fiscal year ends.
  • Homeowners’ Association have 120 days after the fiscal year ends.

What Does a CPA Do For The Audit? 

The auditors’ investigation of financial statement items looking at the client’s accounting records, but is not limited to these records. 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 – Trusted for Over 65 Years in South Florida

Canner Brody & Yan has been a trusted CPA Firm in South Florida for over 65 years.  We specialize in all types of real estate accounting, including homeowner association and condo audit services.  To learn more, simply contact Andrew Brody, Managing Partner at Canner Brody & Yan, at 305-231-2150.  We have offices in Downtown Miami, Miami Lakes and Weston.