Florida Condo Association Audit Requirements (2026)

A Florida condo association must have its financial statements audited once its total annual revenues reach $500,000. Below that line, the statute asks for less, with reviewed statements from $300,000, compiled statements from $150,000, and a report of cash receipts and expenditures under $150,000. Whichever level applies, the report is due within 90 days after the fiscal year ends, unless the bylaws set another date.

Those four levels come from Florida Statute 718.111(13), and all four share the same deadlines and delivery rules. This guide follows the 2026 text, so your board can plan the year-end report before the fiscal year closes.

The Four Levels of Financial Reporting

Florida Statute 718.111(13) sets the report by the association's total annual revenues, and the table below lists the four levels.

Total annual revenues	Required report	Basis
Less than $150,000	Report of cash receipts and expenditures	Cash basis
$150,000 or more, less than $300,000	Compiled financial statements	Accrual basis, GAAP, fund accounting
At least $300,000, less than $500,000	Reviewed financial statements	Accrual basis, GAAP, fund accounting
$500,000 or more	Audited financial statements	Accrual basis, GAAP, fund accounting

GAAP means generally accepted accounting principles. The basis column comes from the Division's rule, Florida Administrative Code 61B-22.006, which also says that reviews and audits must be performed by an independent certified public accountant licensed by the Florida Board of Accountancy.

What each level means in practice:

Cash receipts and expenditures report. The lightest level. A summary of money in and money out by account and category, prepared on a cash basis. The statute still requires it to show the reserves accumulated and spent.

Compiled financial statements. An accountant organizes your financial data into formal statements without performing verification procedures. A compilation presents the numbers, and it does not test them.

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, and 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.

A board can always choose more than the minimum. Under 718.111(13)(c), an association may prepare a higher level of report than its revenue requires without a meeting of the owners or their approval. Going down a level is the part that takes a vote, which we cover below.

Key Deadlines You Can't Miss

Florida Statute 718.111(13) sets two deadlines and an outer limit.

Completion deadline, 90 days after fiscal year-end. The statute requires the association to "prepare and complete, or contract for the preparation and completion of," 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 and no bylaw date, completion is due by March 31.

Delivery deadline, 21 days after completion, with a 180-day backstop. Once the report is complete, the association must deliver it "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 or other date as provided in the bylaws."

In practice, the board completes the report within 90 days, delivers it within 21 days of completion, and has everything out before the 180-day outer limit.

Delivery method. The 2026 text says the association delivers to each unit owner "by United States mail or personal delivery at the mailing address, property address, e-mail address, or facsimile number provided to fulfill the association's notice requirements." The association sends either a copy of the report or a notice that the owner can request one, and a requested copy goes out free within 5 business days. An officer or director signs an affidavit as evidence that the delivery happened.

Website posting. An association that manages a condominium with 25 or more units (and no timeshare units) must also post the financial report on its website or app under 718.111(12)(g), generally within 30 days after it receives or creates the record. Posting is a separate duty from delivery to each owner, so plan for both.

The Waiver Process

Associations may vote to waive down to a lower reporting level. For example, a $400,000 association that would otherwise need a review may vote to prepare a compilation or a cash report instead.

The requirement. The 2026 text requires "a majority vote of all the voting interests of the association." This is not a majority of those present at the meeting. It is a majority of all the voting interests in the association, so in a building where each of 100 units has one vote, the waiver needs 51 votes in favor no matter how many owners attend.

The timing. The vote "must occur before the end of the fiscal year and is effective only for the fiscal year in which the vote is taken." With a December 31 fiscal year-end, a board that waits until the CPA calls in January has missed the window for the year that just closed.

The every-other-year limit. "An association may not prepare a financial report pursuant to this paragraph for consecutive fiscal years." An association that waives down in Year 1 returns to the statutory level in Year 2 before it can consider a waiver again in Year 3.

How the rule changed. The 2023 text of 718.111(13)(d) needed only "a majority of the voting interests present at a properly called meeting," and it let one approval cover the following fiscal year too. The 2026 text asks for a majority of all voting interests and covers one year only, which is a much higher bar in a building where turnout is low.

The record. The Division's rule 61B-22.006(7) requires the minutes to show the number of votes cast to waive and the type of report the association will prepare.

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

What Auditors Look At

Auditors look for specific things, and a board that knows the focus areas can have the answers ready before fieldwork starts.

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 section is almost always a focus area, because the Division's rule spells out what it must disclose, even when owners waived reserves for the year. The statements must show the beginning and ending balance of each reserve account, what went in and what came out, how the reserve items were estimated and when the estimates were last made, and "the amount of annual funding required to fully fund each reserve account."

Fund separation. 718.111(14) requires all association funds to be kept in the association's name. Reserve funds may be commingled with operating funds for investment purposes only, and then they must be accounted for separately, and the commingled account can never drop below the amount identified as reserves. A commingled account that dips below the reserve amount, even for a day, breaks that rule.

Special assessments. The statements must disclose the purpose of each special assessment, its amount and what happened to the money collected.

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

Documentation. Contract files, vendor invoices, board minutes approving expenditures, insurance declarations and bank statements should all be accessible and organized. Most of these are already official records under 718.111(12)(a), which requires itemized records of all receipts and expenditures, the invoices and receipts behind them, and an account statement for each unit.

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

Your Report Already Measures Full Funding

That full-funding disclosure in the reserve section is worth a second look, because the statute asks for it too. Under 718.111(13), the reserve summary must include "a good faith estimate disclosing the annual amount of reserve funds that would be necessary for the association to fully fund reserves for each reserve item based on the straight-line accounting method" (reserves funded by the pooling method are exempt from this line).

Boards tend to hear three funding goals. Baseline funding keeps the reserve balance above zero. Threshold funding keeps it above a floor the board picks. Full funding sets aside each year the share of every item's cost that matches the wear it took that year, so the money is there when the roof or the elevator comes due. Full funding is the goal, and the question for most boards is how fast to get there.

The year-end report puts that full-funding number next to what the association actually saved, which is why the gap is worth reading closely. Saved dollars earn interest while they wait, and deferred dollars come due later at a higher replacement price. Some special assessments are forced by hurricanes, code changes or lawsuits, but a reserve gap that grows year after year is the avoidable kind, and the report shows it early enough to close. Baseline vs. Threshold vs. Full Funding walks through the three goals in more depth.

If your board wants that gap turned into a plan, a Reserves Pro Capital Plan brings your operating expenses, reserves, insurance, debt and special assessments into one five-year, board-ready model. You share your reserve study, recent financials, insurance declarations, loan documents and governing documents, and each quarter we refresh the plan and brief your committee.

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 reserve disclosures above draw on all three.

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 in your governing documents should have a matching board approval in the minutes.

Decide on a waiver before year-end. If the owners will vote to waive down, schedule that vote before the fiscal year closes, and confirm that the association did not waive last year.

Brief your management company. If a management company keeps your books, confirm that it will give the CPA direct access to records and respond promptly to requests. Slow answers stretch the timeline and add to the fee.

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

What Happens If You Don't Comply

The Division of Florida Condominiums, Timeshares and Mobile Homes, part of the Department of Business and Professional Regulation (DBPR), oversees condominium associations, including financial reporting. The statute gives owners a direct path when the report does not arrive.

Owner notice to the Division. Under 718.111(13)(e), an owner who asked for the report in writing and did not receive it within 5 business days can give written notice to the Division. If the Division finds that the association failed to deliver, it tells the association to deliver the report to the owner and the Division within 5 business days.
Loss of the waiver. An association that fails to comply with the Division's request "may not waive the financial reporting requirement" for the fiscal year of the owner's request and the following fiscal year.
Personal exposure for records. Under 718.111(12)(a)11, a person who knowingly or intentionally fails to create or maintain the required accounting records, with the intent of causing harm to the association or its members, is personally subject to a civil penalty.
Fiduciary duty. Under 718.111(1)(a), "the officers and directors of the association have a fiduciary relationship to the unit owners." Timely, accurate reporting is part of how a board meets that duty.

Most boards that run late are volunteers with a busy year, and a calendar that starts the year-end work in the last quarter of the fiscal year keeps the report on time.

Frequently Asked Questions

Does every Florida condo association need an audit? No. Under Florida Statute 718.111(13), only an association with total annual revenues of $500,000 or more must prepare audited financial statements. An association with at least $300,000 but less than $500,000 prepares reviewed statements, one with $150,000 or more but less than $300,000 prepares compiled statements, and one with less than $150,000 prepares a report of cash receipts and expenditures.

Can a condo association skip the audit? Owners can vote to prepare a lower level of report for one fiscal year. The vote needs a majority of all the voting interests of the association, it must happen before the fiscal year ends, and the association cannot do it for consecutive fiscal years.

When must a Florida condo association deliver its financial report? The report must be complete within 90 days after the fiscal year ends, or on a date in the bylaws. The association then has 21 days to deliver a copy, or a notice that a copy is available, to each owner, and no later than 180 days after the fiscal year ends. Delivery can go by mail or personal delivery to the mailing address, property address, email address or fax number on file.

Can the board choose an audit when the statute only requires a review? Yes. Florida Statute 718.111(13)(c) lets an association prepare a higher level of report than its revenue requires without a meeting of the owners or their approval.

This article is for general information only. It is not legal advice, so consult your association attorney about how Florida Statute 718.111 and your governing documents apply to your association. It is not financial or investment advice, so consult your CPA, treasurer or registered investment advisor about your association's financial statements and reserves.