Reporting of financial requirements for homeowner association is identically the same as condominium law. The only difference is if the member of the homeowner association wishes to partition the level of financial reporting, only twenty (20%) of the total membership is required. If partitioning becomes successful, then a duly called members meeting would be mandatory to consider a higher level of financial reporting. A majority vote would determine the level of financial reports due for the end of the fiscal year.

See below both condominium and homeowner association requirements for annual revenue reporting:  

An association with total annual revenues of less than $100,000 shall prepare a report of cash receipts and expenditures.

An association with total annual revenues of $100,000 or more, but less than $200,000, shall prepare compiled financial statements.

An association with total annual revenues of at least $200,000, but less than $400,000, shall prepare reviewed financial statements.

An association with total annual revenues of $400,000 or more shall prepare audited financial statements.

Without a Members vote, Board of Directors at their discretion may elect to vote for a higher level of financial reporting for any fiscal year.

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The time of year is here to start preparing for all association’s annual revenue reporting. If the condominium is only fifty (50) units or less, or annual revenues are less than $100.000, then cash receipts would be automatic. The end-of-the-year statement, which is better known as the 12/31 (December, 31st.) would most likely already be prepared by the management company.

If the association annual revenues are $400.000 or more, then the State of Florida requires a full blown audit. Paying for a full audit year after year would be costly and may be inconsequential. By approval of a majority vote of members at a duly called members meeting (usually Annual Meeting), the State allows for a waiver of the stringent reporting requirements. Regardless of the number of units or revenues, every seven (7) to eight (8) years all associations should arrange for an audit from a certified public accountant. (CPA).

The State also requires the association to complete and send financial reporting to all members within a precise time frame.  In lieu of sending the statements to all members, which is also a costly task, the State allows for a notice stating, “that a copy of the financial statement will be mailed without extra charge upon written request.” It is local custom to add this statement with the Annual or Budget notices.
 
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Homeowner State requirements are looser than condominium associations. At a duly called homeowner meeting, the board can officially adopt a new agenda anytime without being regarded as an emergency. Also, a vote to add or delete agenda items is not required by the State of Florida. Depending on homeowner by-laws, minimum agenda posting requirements are the same as condominium. See, “ Common Overlooked Florida Requirements for Condominiums”.

Special assessments for homeowner are handled the same way as condominium associations. Both entail a fourteen-day (14) notice indicating that a summed assessment is being considered.

Directors for both types of associations do not vote by proxies or by secret ballots at board meetings. However, in the event of a director conflict of interest, or wants and needs, secret ballots can be exploited in-lieu of an open vote.  A majority director vote should determine if a secret ballot vote is necessary.

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A typical Board of Director meeting requires a forty-eight (48) hour agenda notice. The notice should be posted in a conspicuous located on property. One (1) known location is all that is necessary. All agenda items should be incorporated in the agenda, before the meeting. During a duly called board of directors meeting, if a subject comes up without being identified on the agenda, the subject can be voted on, but only on an emergency basis. The vote should be noted in the minutes as an emergency agenda item. The State of Florida requires that an emergency vote shall only pass by a majority plus one (1) vote.

By board meeting practices of the current Florida Statutes along with the governing documents, should keep all the Association’s records official. For supporting documents, see next page. Read the rest of this entry »