Services
The right level of assurance, and what it actually buys.
Florida law recognizes four levels of year-end financial reporting for community associations. They differ in cost, depth, and in what the report can tell your board, your lender, and your members.
Financial statement audit
Reasonable assurance. The highest level a CPA can give.
An audit is an examination. We confirm cash and loan balances directly with your banks, test a sample of expenses against invoices and contracts, evaluate internal controls, and check the statements and footnotes against GAAP. The result is an opinion that the financial statements are not materially misstated.
Deliverable: a complete set of financial statements and notes, with the auditor's opinion.
Financial statement review
Limited assurance.
A review is narrower. We perform analytical procedures and make inquiries of management, then express limited assurance: nothing came to our attention suggesting the statements need material changes. There is no bank confirmation and no transaction testing.
Deliverable: complete financial statements and notes, with the review report.
Compilation
No assurance.
A compilation is assembly. We put your records into proper financial statement form without expressing any assurance on them.
Deliverable: financial statements in proper form, with the compilation report.
Report of cash receipts and expenditures
No assurance. For the smallest associations.
A summary of money in and money out, on the cash basis. A CPA is not required to prepare this report, though many associations prefer that one does.
Deliverable: a cash-basis summary of receipts and expenditures.
Comparing the levels
| What the CPA does | Audit | Review | Compilation | Cash receipts |
|---|---|---|---|---|
| Statements in proper GAAP form | Yes | Yes | Yes | Cash basis summary |
| Analytical review of revenues and expenses | Yes | Yes | No | No |
| Inquiries of management and written representations | Yes | Yes | No | No |
| Confirms cash and loan balances with banks | Yes | No | No | No |
| Tests expenses against invoices and contracts | Yes | No | No | No |
| Evaluates internal controls | Yes | No | No | No |
| Issues an opinion | Yes | No | No | No |
| Assurance level | Reasonable | Limited | None | None |
Included with every engagement
The Association Financial Snapshot
A two-page board-legible summary: operating results against budget, reserve position against the reserve study, reserve fund movement, expense movement year over year, and cost per unit.