Florida statutes
What financial report does your association need?
Your association's total annual revenue sets the minimum level of year-end financial reporting Florida law requires. The revenue tiers are the same for homeowners' associations under section 720.303(7) and for condominium associations under section 718.111(13), Florida Statutes. The deadlines and the voting rules are not the same, and that is where most boards get caught.
The revenue tiers
| Total annual revenues | Minimum year-end report |
|---|---|
| Under $150,000 | Report of cash receipts and expenditures |
| $150,000 to less than $300,000 | Compiled financial statements |
| $300,000 to less than $500,000 | Reviewed financial statements |
| $500,000 or more | Audited financial statements |
| HOA with at least 1,000 parcels | Audited financial statements, regardless of revenue |
The 1,000-parcel rule applies to homeowners' associations only. There is no equivalent unit-count trigger for condominium associations.
Two things this table does not decide for you. Your governing documents may require a higher level than the statute does, and so may a lender, an insurer, or a buyer's title company. And an association may always choose to have more work done than the minimum. A condominium association can prepare a higher level of report without any owner vote at all. An HOA needs a member vote, which is covered below.
Not sure which tier you land in, or whether your bylaws override it? Send us the association's revenue figure and we will tell you which engagement applies.
The deadlines
Both statutes work the same way at the front end and diverge at the back end.
Prepare and complete: 90 days. Within 90 days after the end of the fiscal year, or annually on a date provided in the bylaws, the association must prepare and complete the financial report, or contract for its preparation and completion. For a December 31 year end, that is the end of March.
Deliver to members: 21 days after the report is finished. Within 21 days after the final report is completed by the association or received from the third party, the association must provide each member with a copy of the report, or a notice that a copy is available at no charge on request.
The outer limit is where HOAs and condominiums differ.
| HOA (s. 720.303(7)) | Condominium (s. 718.111(13)) | |
|---|---|---|
| Prepare and complete | 90 days after fiscal year end (or the date in the bylaws), prepared by the association or by a contracted third party (typically a CPA) | 90 days after fiscal year end (or the date in the bylaws), prepared by the association or by a contracted third party (typically a CPA) |
| Deliver to members | Within 21 days after the report is completed by the association or received from the contracted third party (CPA) | Within 21 days after the report is completed by the association or received from the contracted third party (CPA) |
| Outer delivery limit | Not later than 120 days after year end, or the date in the bylaws | Not later than 180 days after year end, or the date in the bylaws |
| Proof of delivery | Not specified in the statute | An affidavit executed by an officer or director |
Voting to change the reporting level
Members can move the level in either direction. The mechanics are different for each chapter, and the difference matters if a board is planning a vote.
Voting down to a lesser report
An association may substitute a lower level than its revenue requires, but not by very much less than boards assume, and not two years running.
| HOA | Condominium | |
|---|---|---|
| Vote required | Majority of the voting interests present at a properly called meeting | Majority of all the voting interests of the association |
| Timing | Not specified in the statute | The meeting and approval must occur before the end of the fiscal year |
| Duration | One fiscal year | Effective only for the fiscal year in which the vote is taken |
| Consecutive years | Not permitted | Not permitted |
The condominium threshold is the harder one. A majority of all voting interests is a far heavier lift than a majority of those who show up, and the vote has to happen before the fiscal year closes. A condominium board that reaches February and decides an audit is too expensive has already missed the window for that year.
Neither chapter allows an association to skip year-end financial reporting altogether. The vote substitutes a lesser report. It does not eliminate the requirement.
Voting up to a higher report
Condominium. No owner vote is needed. The association may prepare compiled, reviewed, or audited statements in place of whatever its revenue requires, at the board's discretion.
HOA. If 20 percent of the parcel owners petition the board for a higher level of reporting, the association must notice and hold a member meeting within 30 days of receiving the petition. On approval by a majority of the total voting interests, the association must prepare the higher-level report, must amend the budget or adopt a special assessment to pay for it regardless of anything to the contrary in the governing documents, and must provide the report within 90 days of the meeting or the end of the fiscal year, whichever is later.
That petition right is worth knowing about on both sides of the table. It gives an owner minority a real mechanism, and it commits the association to funding the work.
A condominium audit and an HOA audit are not the same engagement
The revenue tiers are identical. Almost nothing else is. This is the part of Florida association reporting that generic accounting firms tend to get wrong.
Condominium and cooperative associations
Chapters 718 and 719
Reserves are where the work is. A residential condominium or cooperative building of three or more habitable stories must have a structural integrity reserve study, and reserve funding for the components that study covers is not waivable in the way ordinary reserves are. The financial statements interact with the study, with milestone inspection findings under section 553.899, and with any loan, line of credit, or special assessment the association is using to fund structural work. Legislation in 2022, 2023, and 2025 has changed these provisions repeatedly, and an association's obligations depend on which budget year is in question.
Condominium reporting also carries a reserve disclosure requirement under section 718.111(13) and the Division’s implementing rule: a summary of association reserves including a good faith estimate of the annual amount that would be needed to fully fund each reserve item on a straight-line basis. That estimate does not apply to reserves funded by the pooling method.
If your building is at or near the three-story line, or if the association has a milestone inspection in progress, tell us at the proposal stage. It changes the scope.
Homeowners' associations
Chapter 720
There is no structural integrity reserve study requirement for an HOA, and Chapter 720 does not require an HOA to fund reserves at all. What it requires depends on how the association's reserves were established.
Reserves become statutory reserves under section 720.303(6) only when a majority of the total voting interests approves them and designates the components. Once established that way, the membership may still vote for no reserves or reduced reserves by majority vote at a meeting where a quorum is present, and that vote applies to a single budget year.
The consequence most boards have not seen coming sits in the financial report itself. When an association's budget does not provide for statutory reserve accounts, or provides for deferred expenditure accounts that were not established under section 720.303(6), the statute requires specific statements in conspicuous type in the annual financial report. One states that the budget does not provide for fully funded reserve accounts and that special assessments may result. The other states that the association's deferred expenditure accounts are not subject to the statutory restrictions on use and are not calculated under the statute.
Our reporting reflects the funding approach the association has adopted, where one exists, and carries the disclosures the statute requires. We do not tell an HOA board that reserve funding is mandatory, because under Chapter 720 it generally is not.
The four levels, briefly
| Audit | Review | Compilation | Cash receipts and expenditures | |
|---|---|---|---|---|
| Statements in proper GAAP form | Yes | Yes | Yes | No, cash basis summary |
| Analytical procedures and inquiry | Yes | Yes | No | No |
| Balances confirmed with banks | Yes | No | No | No |
| Transactions tested to invoices | Yes | No | No | No |
| Internal controls evaluated | Yes | No | No | No |
| Opinion issued | Yes | No | No | No |
| Assurance provided | Reasonable | Limited | None | None |
A CPA is not required to prepare a report of cash receipts and expenditures.
Common questions
Our revenue crossed $500,000 this year for the first time. Do we need an audit?
The tier is based on total annual revenues for the fiscal year, so yes, unless the members vote down to a lesser report within the rules above, or your governing documents already require something else. A first-year audit involves additional procedures on opening balances, so start earlier than you would on a renewal.
Can the members vote to skip the report entirely?
No. Both chapters allow a vote to substitute a lesser report. Neither allows the association to skip year-end financial reporting.
We waived down to a review last year. Can we do it again?
No. Neither an HOA nor a condominium association may prepare a lesser report under the waiver provision for consecutive fiscal years.
Does our December 31 year end really mean the report is due at the end of March?
The report must be prepared and completed, or contracted for, within 90 days of fiscal year end unless your bylaws set a different date. Check the bylaws. Some associations have a date that is earlier than the statutory default.
We are changing auditors. Does that slow anything down?
It adds a step. The successor CPA communicates with the predecessor before accepting the engagement, and prior-year statements and adjusting entries are needed. It is routine when the association starts early and awkward when it starts in February.
Who is responsible for meeting the deadline, the manager or the board?
The statutory duty sits with the association. In practice the manager coordinates and the board signs, and the two most common causes of a missed deadline are an engagement letter signed late and a representation letter left unsigned.
This page provides general information for Florida community associations and is not accounting, legal, or tax advice for any particular association. Statutory references are to the 2025 Florida Statutes, sections 718.111(13), 718.112, 719.106, 720.303, and 553.899, and were verified on August 9, 2026. The Legislature amends Chapters 718, 719, and 720 frequently. Confirm current requirements with your CPA or association counsel before acting. Coastal Clarity Assurance is the brand name of Grissom CPA, PLLC, a licensed Florida CPA firm.