Florida HOA & Condo Association Audits
Need an audit done for your Florida association?
Every Florida condominium and homeowners’ association must prepare an annual financial report, and once revenues reach $500,000, or an HOA reaches 1,000 parcels, that report must be a full audit by a CPA.
The report has to be completed or contracted for within 90 days of year end. If your board needs a CPA who knows Chapters 718 and 720 and can deliver on that timeline, you are in the right place.
How can we help?
We are CPA auditors who prepare the annual financial reports Florida law requires of community associations. Our clients include condominium associations governed by Chapter 718, Florida Statutes, and homeowners’ associations governed by Chapter 720.
Whether your association has crossed the $500,000 audit threshold, your owners have petitioned for a higher level of reporting, or the developer is turning over control, we know what Florida law requires in your report and how to deliver it on time.
Florida ties the required report to the association’s total annual revenues. Associations with $500,000 or more in revenue need audited financial statements, $300,000 to $500,000 need reviewed statements, $150,000 to $300,000 need compiled statements, and under $150,000 a report of cash receipts and expenditures. HOAs with at least 1,000 parcels must be audited regardless of revenue.
The clock is tight. The report must be completed, or contracted for, within 90 days after the end of the fiscal year, and then delivered to owners within 21 days of completion. For condos the outside limit is 180 days after year end, and for HOAs it is 120 days.
We’ll help you accomplish the following:
- Audited financial statements for condominium associations and HOAs that meet the Florida thresholds
- Reviewed and compiled financial statements for associations below the audit threshold
- Turnover audits when a developer hands control of the association to the owners
- Reserve fund balances and disclosures presented the way Florida law and the Division’s rules expect
- Reports delivered inside the 90-day window so your board can meet its owner delivery deadline
How it works?
Our association audit approach is built around the specific rules in Chapters 718 and 720, so we move faster than firms that treat every engagement the same way. Here’s how it works:
- Confirming your reporting level – We review your total annual revenues, parcel count, fiscal year end, and any owner vote to waive or raise the reporting level, then confirm exactly which report you need.
- Planning and document gathering – We work with your board and management company to collect bank statements, owner ledgers, and reserve records, and build the timeline backward from your 90-day deadline.
- Fieldwork and testing – We test cash, assessments receivable, special assessments, reserve funds, insurance proceeds, and the separation of operating and reserve funds.
- Reporting – Once fieldwork is complete, we issue the report, ready for your board to deliver to owners and post on the association’s website if required.
Most engagements are completed in 4 to 6 weeks. Everything is handled digitally, so it doesn’t matter if your association is in Miami, Fort Lauderdale, Naples, Sarasota, Tampa, Orlando, or anywhere else in Florida.
If you are a Florida condominium or homeowners’ association that needs an audit, review, or compilation, please contact us.
About Metwally CPA PLLC
Metwally CPA PLLC is a CPA firm founded by Mohamed Metwally, CPA, CMA, EA. We specialize in audit and assurance services for small and mid-sized businesses in Texas, Florida, and beyond, including mortgage lenders, regulated lenders, franchisors, nonprofits, PEOs, and career schools regulated by state agencies.
Mohamed holds active CPA licenses in Texas and California, an M.S. in Accounting from the University of Dallas, and has extensive assurance experience across a wide range of regulated industries. He is a member of the American Institute of Certified Public Accountants and the Texas Society of Certified Public Accountants, and serves on TSCPA Practice Issues, Diversity and Inclusion, and Governmental Accounting and Single Audits Conference committees.
We have completed over 100 audit engagements, and every one is delivered digitally, at a fixed rate, with responsiveness measured in hours rather than days.
FREQUENTLY ASKED QUESTIONS
Every Florida condominium association and homeowners’ association must prepare an annual financial report, and the level of that report depends on the association’s revenue and size. Below are the most common questions we get from Florida association boards:
It depends on your total annual revenues. Under both Chapter 718 and Chapter 720, associations with $500,000 or more need audited financial statements, $300,000 to under $500,000 need reviewed statements, $150,000 to under $300,000 need compiled statements, and under $150,000 need a report of cash receipts and expenditures.
No. A homeowners’ association with at least 1,000 parcels must prepare audited financial statements no matter what its revenues are.
The association must complete the report, or contract with a CPA to complete it, within 90 days after the fiscal year ends (or on the date set in the bylaws). It then has 21 days after receiving the final report to deliver it, or a notice of its availability, to owners. That delivery can be no later than 180 days after year end for condos and 120 days for HOAs.
Yes, but only for one year at a time. In a condominium, a majority of all voting interests must approve the lower level of reporting before the fiscal year ends. In an HOA, a majority of the voting interests present at a properly called meeting can approve it. Neither type of association can use a waiver in consecutive fiscal years.
A condominium board can choose a review or audit above the required level without an owner vote. In an HOA, if 20% of parcel owners petition for a higher level, the association must hold a member vote within 30 days, and if a majority of all voting interests approve, it must provide the higher-level report.
A compilation presents your financial information in proper form with no assurance. A review adds analytical procedures and inquiries and gives limited assurance. An audit tests transactions and balances, confirms them with third parties, and gives an opinion on whether the statements are fairly presented.
In a condominium, any audit or review prepared before the developer turns over control of the association must be paid for by the developer.
Condominium associations with 25 or more units must post the financial report on their website or app. HOAs with 100 or more parcels must do the same.
Most engagements are completed in 4 to 6 weeks from the signed engagement letter, with records from your management company. We plan the schedule around your 90-day deadline.
Cost depends on your revenues, number of units or parcels, reserve structure, and the condition of your records. Metwally CPA gives you a fixed-rate quote upfront, with no hourly billing and no surprises later.
Yes. We work with Florida associations and their management companies remotely, with every engagement handled digitally from planning to final report.
Please note that while this information provides a general understanding of Florida association financial reporting requirements, it is recommended to consult with a financial professional or auditor for specific guidance related to individual situations. If you have any questions, please contact us.