Gulfshore Property Mgmt

Category: New Legislation

  • Year End Financial’s; Explained in Laymen’s Terms:

    Year End Financial’s; Explained in Laymen’s Terms:

    Year End Financial’s; Explained in Laymen’s Terms:

    While Cash Receipts and Expenditures can be prepared by a book keeping, a compilation can only be performed by a licensed CPA based on Florida statutes; – according to the Florida Department of Business and Professional Regulation (DBPR). The levels of service that CPA’s provide for financial statements are generally compilations, reviews, and audits.

    A compilation broadly provides no assurance by the CPA, other than stating that the CPA has compiled your information in the form of a financial statement(s) and has not performed an audit or review.

    A review basically provides negative assurance, stating that the CPA has performed inquiry and analytical procedures, and based upon such, the CPA is not aware of any significant modifications that are needed in order for the financial statements to be presented in accordance with generally accepted accounting principles, or an alternative appropriate other comprehensive basis of accounting, such as cash basis.

    An audit is positive assurance, whereby the CPA gives his/her professional opinion that the financial statements are fairly presented (materially correct to the reasonable man relying on the financial statements) in accordance with generally accepted accounting principles or an appropriate other comprehensive basis of accounting. The opinion goes into additional details as about what an audit consists of and doesn’t consist of.

    A general charge $300-$500 for compiled financial statements for condo/homeowner associations with no disclosures/footnotes.

  • Florida Legislation affecting Condominium Association

    Florida Legislation affecting Condominium Association

    Florida Legislation affecting Condominium Association: 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. October 1, 2008, the GMFlorida 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. (more…)

  • House Bill 995 Florida Laws

    House Bill 995 Florida Laws

    New SymbolNewt & RushFiduciary 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. (more…)

  • Changes Affecting Condominium Associations

    Changes Affecting Condominium Associations

    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. (more…)