Accounting Records:

Another elucidation to the statutes includes accounting records. It’s always been government standards to maintain accounting records for a period of seven years, including most state governments. Also commonly known, condominium accounting shall be separate for each association.

Effective October 1, 2008, the Florida State legislation added into law that any one person who knowingly or intentionally defaces, destroys, or fails to create or maintain official accounting records of a Condominium Association is personally subject to civil penalties. 

Records shall include:

• Receipts & Expenditures

• Accounts Receivables

• Audits, Reviews, Compilation or Cash & Expenditure Reports,

• Bids & Proposals

• Annual Meeting Packages are maintained for one year.

• Rental Records

• Question & Answer Sheets

• All Operation Records

• Inspection Report

For more fun facts see: Financial Reporting Requirements for Homeowner Associations.

(12)  OFFICIAL RECORDS.—
11.  Accounting records for the association and separate accounting records for each condominium which the association operates. All accounting records shall be maintained for a period of not less than 7 years. Any person who knowingly or intentionally defaces or destroys accounting records required to be maintained by this chapter, or who knowingly or intentionally fails to create or maintain accounting records required to be maintained by this chapter, is personally subject to a civil penalty pursuant to s. 718.501(1)(d). The accounting records shall include, but are not limited to:
a.  Accurate, itemized, and detailed records of all receipts and expenditures.
b.  A current account and a monthly, bimonthly, or quarterly statement of the account for each unit designating the name of the unit owner, the due date and amount of each assessment, the amount paid upon the account, and the balance due.
c.  All audits, reviews, accounting statements, and financial reports of the association or condominium.
d.  All contracts for work to be performed. Bids for work to be performed shall also be considered official records and shall be maintained by the association.
12.  Ballots, sign-in sheets, voting proxies, and all other papers relating to voting by unit owners, which shall be maintained for a period of 1 year from the date of the election, vote, or meeting to which the document relates, notwithstanding paragraph (b).
13.  All rental records, when the association is acting as agent for the rental of condominium units.
14.  A copy of the current question and answer sheet as described by s. 718.504.
15.  All other records of the association not specifically included in the foregoing which are related to the operation of the association.
16.  A copy of the inspection report as provided for in s. 718.301(4) (p).

Fiduciary Duty

718.111 (a) of the Florida Statutes avow that directors, officers and managers automatically have fiduciary duties and responsibilities directly or indirectly owed to its owner/s of shared association. Effective October 1, 2008, a new legislative ruling signifies fiduciary duties to be the same as any other non-profit corporation.

One reason for this clarification is the problematic of unfair practices such as kick-backs. Directors, officers and property managers are subject to civil penalties for illegal practices by accepting any thing or service of value for which consideration has not been provided for his/her own benefit or that of his/her immediate family.

The association may however, receive services or items in connection with trade-fair shows or education programs.

718.111; the association.
(1)  CORPORATE ENTITY.–
(a)  The operation of the condominium shall be by the association, which must be a Florida corporation for profit or a Florida corporation not for profit. However, any association which was in existence on January 1, 1977, need not be incorporated. The owners of units shall be shareholders or members of the association. The officers and directors of the association have a fiduciary relationship to the unit owners. It is the intent of the Legislature that nothing in this paragraph shall be construed as providing for or removing a requirement of a fiduciary relationship between any manager employed by the association and the unit owners. An officer, director, or manager may not solicit, offer to accept, or accept any thing or service of value for which consideration has not been provided for his or her own benefit or that of his or her immediate family, from any person providing or proposing to provide goods or services to the association. Any such officer, director, or manager who knowingly so solicits, offers to accept, or accepts any thing or service of value is subject to a civil penalty pursuant to s. 718.501(1)(d). However, this paragraph does not prohibit an officer, director, or manager from accepting services or items received in connection with trade fairs or education programs. An association may operate more than one condominium.

Director Abstaining from Voting:

In an attempt to avoid a conflict of interest, Directors & Officers would vote, “abstain, neither, nor, refrain, desist and even present”. Although they may have been savvy, the vote used would officially count as an opposed vote. Likewise, if Directors & Officers vote neither, nor or abstain etc… the vote was presumed to have assented to the action.

Effective October 1, 2008; if Directors & Officers vote to abstain on any corporate action taken, he/she would be presumed to have taken no position with regard to the action. Consequently, Directors & Officers may now vote to abstain without the minutes reflecting an opposition.

718.111  The association.–

1(b)  A director of the association who is present at a meeting of its board at which action on any corporate matter is taken shall be presumed to have assented to the action taken unless he or she votes against such action or abstains from voting. A director of the association who abstains from voting on any action taken on any corporate matter shall be presumed to have taken no position with regard to the action. Directors may not vote by proxy or by secret ballot at board meetings, except that officers may be elected by secret ballot. A vote or abstention for each member present shall be recorded in the minutes.