Florida Condo Audit Requirements | ReservesPro

The fiscal year is ending. You know the association is required to produce some kind of financial report — but is it an audit? A review? A compilation? And when exactly does it have to be done?

The answer depends on one number: your association's total annual revenue. Florida law sets four different reporting levels based on that figure, and the requirements attached to each level — deadlines, distribution rules, waiver options — are specific and enforceable.

This guide covers all of it.

The Four Levels of Financial Reporting

Florida Statute 718.111(13) establishes revenue-based reporting requirements for all condominium associations. Here's the full table:

Annual Revenue	Required Report	Who Prepares It
Under $150,000	Report of cash receipts and expenditures	Association (can be prepared internally)
$150,000–$299,999	Compiled financial statements	Licensed CPA or public accountant
$300,000–$499,999	Reviewed financial statements	Licensed CPA or public accountant
$500,000 or more	Audited financial statements	Licensed CPA (independent)

What each level means in practice:

Cash receipts and expenditures report: The lightest level. A summary of money in and money out, without the formal procedures of an audit or review. Smaller associations can often prepare this internally.

Compiled financial statements: A CPA organizes your financial data into formal statements without performing verification procedures. The CPA takes the numbers at face value.

Reviewed financial statements: A step up. The CPA performs analytical procedures and inquiry to provide limited assurance that the statements don't contain material misstatements. More rigorous than a compilation; less rigorous than an audit.

Audited financial statements: The highest standard. The CPA examines records, tests transactions, confirms balances with third parties, and issues an opinion on whether the financial statements are fairly presented. Required for associations with $500,000 or more in annual revenue.

Cost context: Clark Simson Miller reports that a full audit typically runs $4,000–$6,000 for a condo association; a review typically runs $1,500–$2,000. Both vary based on association size, complexity, and the number of transactions involved.

Key Deadlines You Can't Miss

Florida Statute 718.111(13) establishes a two-deadline structure.

Completion deadline: 90 days after fiscal year-end. The statute requires the association to "prepare and complete" the financial report "within 90 days after the end of the fiscal year, or annually on a date provided in the bylaws." For an association with a December 31 fiscal year-end, completion is due by March 31.

Distribution deadline: 21 days after completion; 180-day backstop. Once the report is complete, the association must distribute it to unit owners "within 21 days after the final financial report is completed by the association or received from the third party, but not later than 180 days after the end of the fiscal year."

In practice: complete by 90 days, distribute within 21 days of completion, and get everything out before the 180-day outer limit.

Delivery method: As of 2025 legislative changes (confirmed by Becker & Poliakoff), associations may deliver reports by mail, hand delivery, email, or fax. Website posting alone is not sufficient — delivery to each owner via one of these methods is required. Starting January 1, 2026, associations with 25 or more units must maintain a website with posted reports (expanded from the prior 150-unit threshold).

A 2024 "glitch" in the statute that required associations to both deliver the report AND send notice of availability has been corrected. Associations now do one or the other — deliver the report or deliver a notice of availability. Not both.

The Waiver Process

Associations may vote to waive down to a lower reporting level — for example, a $400,000 association that would otherwise require a review may vote to prepare a compilation instead.

The requirement: Waiver requires "approval by a majority vote of all the voting interests of the association." Note: this is not a majority of those present at the meeting. It's a majority of all unit owners in the association. For a building with 100 units, that means 51 votes in favor — regardless of how many owners attend.

The every-other-year limit: "An association may not prepare a financial report pursuant to this paragraph for consecutive fiscal years." This means an association that waives down in Year 1 must return to the statutory level in Year 2 before potentially waiving again in Year 3.

2025 change: Prior law required a "majority of the quorum" for waiver approval. The 2025 legislative updates raised this threshold to a "majority of all voting interests" — a significantly higher bar. Waivers that were easily obtained under the old process now require broader owner participation to approve.

Waiving down is a legitimate option for some associations — particularly smaller ones where the cost savings are meaningful relative to the budget. But it's not a routine cost-cutting move, and the process requires genuine owner engagement.

What Auditors Look At

A financial audit is not a random check. Auditors are looking for specific things, and boards that understand the focus areas can prepare more effectively.

Assessment income and collection: Are assessments billed and collected correctly? Are delinquent accounts properly accounted for? Is the receivables balance consistent with the aging report?

Reserve fund: The reserve account is almost always a focus area. Is the reserve balance consistent with the balance sheet? Are contributions being deposited as scheduled? Does the reserve balance align with the reserve study's projections? Auditors may flag significant discrepancies between actual reserve funding and the study's recommended levels.

Fund separation: Florida law requires reserve funds to be held in accounts separate from operating funds. Any commingling — intentional or not — is a finding.

Budget-to-actual comparison: Material variances between budget and actual expenses will draw attention, especially if they recur across multiple line items.

Documentation: Contract files, vendor invoices, board minutes approving expenditures, insurance declarations, and bank statements should all be accessible and organized.

The reserve fund is the area where most associations are most exposed — 74% of associations are below the 70% funded threshold, which often surfaces as a finding in more rigorous reviews. Keeping reserve data organized, current, and reconciled to the reserve study isn't just good practice — it's audit preparation. Reserves Pro's method at reservespro.com/method maintains the 30-year reserve projection that makes the reserve component of your financial reporting clear and defensible year-round.

For a guide to reading your financial statements month-by-month: How to Read Your Condo Association's Financial Statements.

How to Prepare for the Audit

The worst time to start organizing your financial records is when the CPA calls to schedule fieldwork. These steps, done in the months before year-end, make the process faster and less expensive.

Reconcile all accounts. Bank reconciliations for both operating and reserve accounts should be current through the end of the fiscal year. Any reconciling items should be explained and documented.

Organize vendor files. Contracts, invoices, and payment records for all significant vendors — management, insurance, major maintenance — should be in order and accessible.

Pull reserve documentation. Your most recent reserve study, the annual contribution schedule, and the reserve account statements for the full year. The auditor will compare actual deposits to the study's schedule.

Prepare the assessment reconciliation. A schedule showing assessments billed, collected, and outstanding for the year — reconciled to both the receivables balance and the bank deposit records.

Confirm board minutes. All expenditures above any threshold specified in your governing documents should have corresponding board approval documented in the minutes.

Brief your management company. If a management company maintains your books, confirm they're providing the auditor with direct access to records and will respond promptly to requests. Delays in auditor requests extend the timeline and drive up fees.

For the full picture on how the treasurer coordinates the annual reporting process: What Does a Condo Board Treasurer Do?.

What Happens If You Don't Comply

Florida's Department of Business and Professional Regulation (DBPR) oversees condominium association compliance, including financial reporting requirements. Failure to produce the required report, meet deadlines, or properly distribute to owners can result in:

DBPR investigations and sanctions — owners who believe the association is out of compliance may file complaints, triggering investigation
Owner legal action — failure to comply with statutory financial reporting requirements is a breach that individual unit owners can pursue through the dispute resolution process
Board member liability exposure — directors who knowingly fail to meet statutory obligations face personal liability risk; fiduciary duty extends to financial reporting compliance

The DBPR's condominium complaint process is publicly available and actively used by owners in contentious associations. Compliance isn't optional — and in a post-Surfside regulatory environment, the standards are being enforced more closely than in prior years.

Frequently Asked Questions

Does every Florida condo association need an audit? No. The type of financial report required depends on your association's total annual revenue. Only associations with $500,000 or more in annual revenue are required to produce audited financial statements. Smaller associations have lesser requirements: reviewed statements ($300K–$500K), compiled statements ($150K–$300K), or a cash receipts and expenditures report (under $150K).

Can a condo association skip the audit? Associations can vote to waive down to a lower reporting level — but the waiver requires a majority of all voting interests (not just a quorum majority), and it cannot be done for consecutive fiscal years. Waiving down is a legitimate option but not a routine cost-saving measure.

When must a Florida condo association distribute its financial report? The report must be completed within 90 days after fiscal year-end. Once complete, it must be distributed to unit owners within 21 days — and in any event no later than 180 days after fiscal year-end. Email delivery is now permitted; website posting alone is not sufficient for distribution.

This article is for informational purposes only and does not constitute legal or financial advice. Consult a licensed Florida CPA and attorney for guidance specific to your association.