Wednesday, March 17, 2010

Association Financial Reporting Requirements

All types of community associations are required annually to prepare and complete a financial report for the preceding fiscal year. However, not all types of associations have the same reporting requirements.

Condominium associations must prepare and complete, or contract to prepare and complete a financial report for the preceding fiscal year within 90 days after the end of each fiscal year or such other date set forth in the bylaws. Within 21 days after completion of the financial report but not later than 120 days after the end of the fiscal year, condominium associations must provide each member with a copy of such financial report or written notice that such report is available at no charge upon request.

Cooperative associations must, within 60 days following the end of the fiscal or calendar year or annually on the date provided in the bylaws, mail or hand deliver to all owners a complete financial report of actual receipts and expenditures for the previous 12 months or a complete set of financial statements for the preceding fiscal year prepared in accordance with generally accepted accounting principles (GAAP) unless such requirement is waived by a majority of the voting interests present at a duly noticed meeting of the association.

Homeowners’ associations must prepare and complete, or contract to prepare and complete a financial report for the preceding fiscal year within 90 days after the end of each fiscal year or such other date set forth in the bylaws. Within 21 days after completion of the financial report but not later than 120 days after the end of the fiscal year, HOA’s must provide each member with a copy of the financial report or written notice that such report is available at no charge upon request.

There is a reason why the Legislature wants to make sure that members have absolute knowledge of when they will receive financial information about their community. It is their money after all; board members and officers are merely its shepherds.

1 comment:

  1. Our HOA only reports the funds taken in each year [the maintenance fees which include operational and reserves] and the expenditures. There is never a report of all of our assets. Meaning that some of the funds in banks aren't included. Plus there is always an attempt to stay under $400,000 so that an audit is never done. We have hovered near the $400,00 marks for years. It seems to me that at about four years, or so, there should be an audit of all of the assets.
    I have sent two certified letters last october and still have not been able to view documents.

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