Condo Q&A: What Rules Apply to Preparing Financial Reports?

Also: A new rental treasurer says that they use paper checks for all fees, even compact kinds. Is it Ok to get an association debit card to limit paperwork?

MIAMI – Concern: What are the necessities for planning fiscal experiences for a condominium association? What style of report is needed? Do we want to seek the services of a CPA company to prepare the financials, or can we prepare the experiences ourselves? – G.D., Miami

Solution: The annual fiscal report necessities for condominium associations are outlined in Area 718.111(13), Florida statutes. The statute necessitates that in just 90 days immediately after the conclusion of the fiscal year, or on a yearly basis on a day if provided in the bylaws, the association shall prepare and comprehensive, or contract for the planning and completion of, a fiscal report for the previous fiscal year.

Even further, the statute necessitates that in just 21 days immediately after the fiscal report is concluded, and no later on than a hundred and twenty days from the conclusion of the fiscal year, the association need to mail or hand produce to every device proprietor a copy of the fiscal report or a recognize that a copy of the fiscal report will be mailed or hand sent to the device proprietor, without cost, in just 5 business days immediately after receipt of a composed ask for from the device proprietor.

With regard to the style of report needed, that relies upon on the annual revenue of your condominium association. Pursuant to the statute, an association with total annual revenues of considerably less than $150,000 shall prepare a report of money receipts and expenses.

An association with total annual revenues involving $150,000 and $three hundred,000, shall prepare compiled fiscal statements. An association with total annual revenues involving $three hundred,000 and $500,000, shall prepare reviewed fiscal statements.

An association with total annual revenues of $500,000 or additional shall prepare audited fiscal statements. Pursuant to Rule 61B-22.006 of the Florida Administrative Code, reviewed fiscal experiences and audited fiscal experiences need to be done by an impartial licensed public accountant. Experiences of money receipts and expenses or compiled fiscal experiences may be prepared by the association.

Concern: I was lately elected as the treasurer of my rental association and discovered that the association is writing paper checks for all fees, no issue how small. Is it attainable to get a debit card in the title of the association which we could use for small fees like business office provides? – M.F., Longwood

Solution: In small, no. Area 718.111(fifteen), Florida statutes, precisely forbids associations, their officers, directors, staff members and brokers from utilizing a debit card issued in the title of the association, or billed directly to the association, for the payment of any association price.

Even further, pursuant to the exact same statute, the use of a debit card issued in the title of the association, or billed directly to the association, for any price that is not a lawful obligation of the association may be prosecuted as credit score card fraud.

This provision was extra to Chapter 718, Florida statutes in 2017 in purchase to avert fraud, as not like a credit score card, when a debit card is made use of the resources are right away withdrawn from the association’s account.

This provides condominium associations’ boards of directors extra security to make absolutely sure that all buys on behalf of the association are duly approved. The statute does not apply to credit score cards, so the association continue to has that alternative.

Be sure to also notice that the prohibition of debit cards was only enacted with regard to condominium associations, and not to homeowners’ associations or cooperative associations.

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