Financial Reporting Requirements for Condo and HOA

A Practical Note for Condo and HOA Residents: Understanding Association Financial Reporting

Helping Community Associations Stay Financially Prepared.

TAXPG’s affiliate resource for audit, review, and compilation support

Many of our clients live in condominium, HOA, or community associations throughout Southwest Florida, including the Naples/Fort Myers and Tampa/St. Petersburg areas. Because association finances affect assessments, reserves, insurance, capital projects, and long-term planning, we wanted to share a practical reminder about the importance of clear and timely financial reporting.

TAXPG is affiliated with Cukierski & Associates, a CPA firm with deep experience serving community associations. C&A provides audit, review, compilation, and related advisory services for condominium associations, homeowners associations, and other community association clients. You can also find Cukierski listed on our website as an affiliate resource for these services: Cukierski.cpa

Why Association Financial Reporting Matters

Community associations often have annual financial reporting responsibilities, and larger or more complex associations may benefit from additional CPA support. Depending on the association’s size, governing documents, lender or insurance requirements, board needs, and applicable state requirements, an association may need or choose to obtain services such as:

Compiled financial statements to organize financial information in a formal CPA-prepared format
Reviewed financial statements to provide limited assurance and additional analytical procedures
Audited financial statements to provide a higher level of assurance over the association’s financial statements
Advisory support for budgeting, reserves, internal controls, capital projects, and board financial questions

Because requirements can vary by association and should be verified based on the association’s specific facts, boards and property managers should review their governing documents and consult with qualified professionals before making financial reporting decisions.

Florida Statutory Financial Reporting Requirements (Condominium & HOA Associations)

If your association is located in Florida, state law generally ties the required type of annual financial report to the association’s total annual revenues.

Condominium associations (Fla. Stat. § 718.111(13))

Under Florida’s condominium statute, the annual financial reporting requirement generally depends on total annual revenues:

Less than $150,000: Report of cash receipts and expenditures
$150,000 or more but less than $300,000: Compiled financial statements
At least $300,000 but less than $500,000: Reviewed financial statements
$500,000 or more: Audited financial statements

Homeowners’ associations (Fla. Stat. § 720.303(7))

Under Florida’s HOA statute, the annual financial reporting requirement generally depends on total annual revenues:

Less than $150,000: Report of cash receipts and expenditures
$150,000 or more but less than $300,000: Compiled financial statements
At least $300,000 but less than $500,000: Reviewed financial statements
$500,000 or more: Audited financial statements

In addition, certain larger HOAs have additional requirements—for example, HOAs with at least 1,000 parcels require audited financial statements regardless of total annual revenues (Fla. Stat. § 720.303(7)).

Timing and delivery (Florida statutory timing framework)

Florida statutes generally require that the annual financial report (not to be confused with the audit/review/compilation report) be prepared/completed (or contracted for) within 90 days after fiscal year-end (or by the date provided in the bylaws), and that it be delivered to owners (or notice of availability provided) within 21 days after completion and no later than 120 days after fiscal year-end (or bylaw date) (Fla. Stat. § 718.111(13); Fla. Stat. § 720.303(7)).

A brief note on waivers / lower-level reporting

Florida law contains provisions that may allow, in certain situations, a properly approved waiver or a lower level of reporting. Because these rules can be technical and can vary based on association type, governing documents, and proper statutory approval procedures, boards and managers should confirm the applicable requirements with qualified legal professionals (Fla. Stat. § 718.111(13); Fla. Stat. § 720.303(7)).

Practical Checklist for Board Members and Association Residents

If you serve on a board, work with a property manager, or simply want to better understand your association’s financial health, the following questions may be useful:

What type of financial reporting is our association required to obtain this year?
Do our governing documents require an audit, review, or compilation?
Are our annual revenues, reserves, or capital projects increasing in complexity?
Do we have upcoming repair, maintenance, reserve, or insurance-related funding decisions?
Are board members receiving financial statements that are clear, timely, and easy to understand?
Would a CPA-prepared compilation, review, or audit help improve board confidence and transparency?
Do we have appropriate financial controls over cash, assessments, vendor payments, and reserve funds?
Would our property manager or board benefit from an outside CPA perspective before year-end?

When to Consider Additional CPA Support

An association may want to consult with a CPA firm if it is experiencing any of the following:

Significant reserve or capital project planning
Increased insurance scrutiny or financial documentation requests
Rapidly rising assessments, repair costs, or operating expenses
Board turnover or concerns about continuity of financial knowledge
Questions from owners about transparency or financial reporting
Uncertainty about whether an audit, review, or compilation is appropriate
A desire to improve budgeting, internal controls, or long-term financial planning

TAXPG’s Affiliate Resource

For clients involved with a condominium, HOA, or community association, TAXPG can help connect you with Cukierski & Associates for community association audit, review, compilation, and advisory support. The goal is not to create unnecessary work for associations, but to help boards and property managers understand their options and make informed financial reporting decisions.

If you would like to learn more, please contact TAXPG at Melissa Propatier, or reach out directly to Cukierski & Associates at 847-496-7180. You may also visit our affiliate page here: Cukierski.cpa