Condominium (Condo) and HOA Overview
Associations need qualified professionals now more than ever. As a leader in the Condominium and Homeowner's Association industry, Sokol & Sokol has over 24 years of experience in the industry. Our firm works closely with association managers and Board of Directors of condominium, homeowner and other common interest realty associations.
A Condominium association is required to comply with the requirements of Florida Statute 718 and Administrative Code Rule 61-B. The financial statement guidelines also apply to homeowner associations as per Florida Statute 720. At a minimum, for annual revenues under $150,000, a condominium or homeowner association is required to prepare a report of cash receipts and expenditures after the end of its fiscal year. The level of assurance required depends on total annual revenues as follows:
When calculating total annual revenues, the association must consider maintenance fees charged to owners for operations and reserves, all sources of other earned association income, and non-recurring sources of revenues including special assessments, insurance proceeds, developer funding, and legal settlements. Therefore even an association with a modest budget may require one of these levels of financial statements in any given year.
Association members may elect to waive the requirement to have the association's financial statements compiled, reviewed, or audited if a majority of the voting interests elect to do so. The election to waive the reporting requirement must be made prior to the end of the year, and is effective only for the fiscal year in which the vote is taken.