Florida condo audit requirements — §718.111(13) revenue thresholds explained

The four tiers, side by side

Florida §718.111 sets the financial-report regime in paragraph (13). The tiers are revenue-driven, dollar-anchored, and have not changed in the 2024 or 2025 legislative sessions:

• Audited financial statements: required when total annual revenues reach $500,000 or more.
• Reviewed financial statements: required when total annual revenues are at least $300,000 but less than $500,000.
• Compiled financial statements: required when total annual revenues are at least $150,000 but less than $300,000.
• Report of cash receipts and expenditures: required when total annual revenues are less than $150,000.

Audited and reviewed reports must be prepared by a Florida-licensed certified public accountant under generally accepted auditing standards (GAAS) and generally accepted accounting principles (GAAP). Compilations may also be CPA-prepared but carry lower assurance. The cash-receipts report at the bottom tier can be internally prepared.

The 120-day deadline

Whichever tier applies, the report is due to unit owners within 120 days after the close of the association's fiscal year — or by an earlier date specified in the governing documents. Boards that miss the 120-day window expose themselves to a DBPR complaint and to records-request litigation from owners who can point to a missing report.

The same report, once produced, must be posted on the association's §718.111(12)(g) statutory website for condos of 25 or more non-timeshare units (with the January 1, 2026 hard deadline from HB 1021). And the same report must be made available within 10 working days of a written records request under §718.111(12)(c). The 120-day, the website-posting, and the records-request clocks all run independently — missing one does not satisfy the others.

The supplementary schedule and the SIRS reconciliation

§718.111(13) requires the report to include a supplementary schedule covering reserve accounts. The schedule lists each component subject to deferred maintenance, the estimated remaining useful life, the estimated replacement cost, and the association's funding policy. For condos of three or more stories subject to the milestone-inspection regime under §553.899, the Structural Integrity Reserve Study (SIRS) component list must reconcile with the reserve schedule. A SIRS that identifies eight structural components and a budget that funds reserves for only four is producing inconsistent documents — and the audit firm will note the discrepancy.

The waiver vote

Members can vote at a properly noticed meeting to waive the higher report tier for the current year only. The most common pattern is a majority vote at the annual meeting to prepare a review in place of an audit. The waiver does not carry forward — it must be re-voted each year. Florida law also constrains how many consecutive years a waiver may be enacted depending on prior year activity; counsel should advise on whether the board can keep waiving past a particular cohort.

What the auditor actually needs from the board

The CPA firm performing the audit (or review or compilation) will request a long list of records. Generating that list cleanly is where boards lose two to four weeks each year if their records live in email, shared drives, and disconnected spreadsheets. A typical auditor packet includes:

• General ledger, chart of accounts, and trial balance.
• Bank statements and reconciliations for operating and reserve accounts.
• Receivables ledger (owner assessments, late charges, fines).
• Payables ledger (vendor invoices, contracts, purchase orders).
• Prior-year financial report and the audit-firm management letter.
• Current reserve study, SIRS (if applicable), and the supplementary schedule.
• Insurance policies, certificates, and claim records.
• Board-meeting minutes for the fiscal year.
• Declaration, articles, bylaws, current rules, and recent amendments.
• Owner records — current owners of record, voting interests, suspended members.
• The adopted operating budget and the proposed budget for the coming year.

A compliance audit log that timestamps every record-touch event, every notice sent, every committee meeting, and every fine action shortens the auditor packet from weeks of email-archeology to a single export.

What HOA Rocket does for audit season

HOA Rocket is not an accounting platform — the general ledger lives in QuickBooks, PayHOA, or a CPA-managed system. What HOA Rocket adds is the statutory-event audit log: every records-request response with timestamp, every board-meeting notice with the 48-continuous-hour posting affidavit, every budget-meeting notice with the §718.112(2)(e) affidavit of compliance, every fining-committee vote, every milestone- inspection record under HB 913, and every director-training completion under HB 1021. When the auditor asks for the §718 paper trail, that trail comes out of the audit log as a single export, not a reconstruction from email.