Florida Senate - 2016 SENATOR AMENDMENT
Bill No. CS/HB 1187, 1st Eng.
Ì650756>Î650756
LEGISLATIVE ACTION
Senate . House
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Floor: WD .
03/10/2016 04:48 PM .
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Senator Brandes moved the following:
1 Senate Amendment (with title amendment)
2
3 Between lines 1130 and 1131
4 insert:
5 Section 40. Paragraphs (b) and (d) of subsection (13) of
6 section 718.111, Florida Statutes, are amended to read:
7 718.111 The association.—
8 (13) FINANCIAL REPORTING.—Within 90 days after the end of
9 the fiscal year, or annually on a date provided in the bylaws,
10 the association shall prepare and complete, or contract for the
11 preparation and completion of, a financial report for the
12 preceding fiscal year. Within 21 days after the final financial
13 report is completed by the association or received from the
14 third party, but not later than 120 days after the end of the
15 fiscal year or other date as provided in the bylaws, the
16 association shall mail to each unit owner at the address last
17 furnished to the association by the unit owner, or hand deliver
18 to each unit owner, a copy of the financial report or a notice
19 that a copy of the financial report will be mailed or hand
20 delivered to the unit owner, without charge, upon receipt of a
21 written request from the unit owner. The division shall adopt
22 rules setting forth uniform accounting principles and standards
23 to be used by all associations and addressing the financial
24 reporting requirements for multicondominium associations. The
25 rules must include, but not be limited to, standards for
26 presenting a summary of association reserves, including a good
27 faith estimate disclosing the annual amount of reserve funds
28 that would be necessary for the association to fully fund
29 reserves for each reserve item based on the straight-line
30 accounting method. This disclosure is not applicable to reserves
31 funded via the pooling method. In adopting such rules, the
32 division shall consider the number of members and annual
33 revenues of an association. Financial reports shall be prepared
34 as follows:
35 (b)1. An association with total annual revenues of less
36 than $150,000 shall prepare a report of cash receipts and
37 expenditures.
38 2. An association that operates fewer than 50 units,
39 regardless of the association’s annual revenues, shall prepare a
40 report of cash receipts and expenditures in lieu of financial
41 statements required by paragraph (a).
42 2.3. A report of cash receipts and disbursements must
43 disclose the amount of receipts by accounts and receipt
44 classifications and the amount of expenses by accounts and
45 expense classifications, including, but not limited to, the
46 following, as applicable: costs for security, professional and
47 management fees and expenses, taxes, costs for recreation
48 facilities, expenses for refuse collection and utility services,
49 expenses for lawn care, costs for building maintenance and
50 repair, insurance costs, administration and salary expenses, and
51 reserves accumulated and expended for capital expenditures,
52 deferred maintenance, and any other category for which the
53 association maintains reserves.
54 (d) If approved by a majority of the voting interests
55 present at a properly called meeting of the association, an
56 association may prepare:
57 1. A report of cash receipts and expenditures in lieu of a
58 compiled, reviewed, or audited financial statement;
59 2. A report of cash receipts and expenditures or a compiled
60 financial statement in lieu of a reviewed or audited financial
61 statement; or
62 3. A report of cash receipts and expenditures, a compiled
63 financial statement, or a reviewed financial statement in lieu
64 of an audited financial statement.
65
66 Such meeting and approval must occur before the end of the
67 fiscal year and is effective only for the fiscal year in which
68 the vote is taken, except that the approval may also be
69 effective for the following fiscal year. If the developer has
70 not turned over control of the association, all unit owners,
71 including the developer, may vote on issues related to the
72 preparation of the association’s financial reports, from the
73 date of incorporation of the association through the end of the
74 second fiscal year after the fiscal year in which the
75 certificate of a surveyor and mapper is recorded pursuant to s.
76 718.104(4)(e) or an instrument that transfers title to a unit in
77 the condominium which is not accompanied by a recorded
78 assignment of developer rights in favor of the grantee of such
79 unit is recorded, whichever occurs first. Thereafter, all unit
80 owners except the developer may vote on such issues until
81 control is turned over to the association by the developer. Any
82 audit or review prepared under this section shall be paid for by
83 the developer if done before turnover of control of the
84 association. An association may not waive the financial
85 reporting requirements of this section for more than 3
86 consecutive years.
87 Section 41. Paragraphs (b) and (c) of subsection (4) of
88 section 719.104, Florida Statutes, are amended to read:
89 719.104 Cooperatives; access to units; records; financial
90 reports; assessments; purchase of leases.—
91 (4) FINANCIAL REPORT.—
92 (b) Except as provided in paragraph (c), an association
93 whose total annual revenues meet the criteria of this paragraph
94 shall prepare or cause to be prepared a complete set of
95 financial statements according to the generally accepted
96 accounting principles adopted by the Board of Accountancy. The
97 financial statements shall be as follows:
98 1. An association with total annual revenues between
99 $150,000 and $299,999 shall prepare a compiled financial
100 statement.
101 2. An association with total annual revenues between
102 $300,000 and $499,999 shall prepare a reviewed financial
103 statement.
104 3. An association with total annual revenues of $500,000 or
105 more shall prepare an audited financial statement.
106 4. The requirement to have the financial statement
107 compiled, reviewed, or audited does not apply to an association
108 if a majority of the voting interests of the association present
109 at a duly called meeting of the association have voted to waive
110 this requirement for the fiscal year. In an association in which
111 turnover of control by the developer has not occurred, the
112 developer may vote to waive the audit requirement for the first
113 2 years of operation of the association, after which time waiver
114 of an applicable audit requirement shall be by a majority of
115 voting interests other than the developer. The meeting shall be
116 held prior to the end of the fiscal year, and the waiver shall
117 be effective for only one fiscal year. An association may not
118 waive the financial reporting requirements of this section for
119 more than 3 consecutive years.
120 (c)1. An association with total annual revenues of less
121 than $150,000 shall prepare a report of cash receipts and
122 expenditures.
123 2. An association in a community of fewer than 50 units,
124 regardless of the association’s annual revenues, shall prepare a
125 report of cash receipts and expenditures in lieu of the
126 financial statements required by paragraph (b), unless the
127 declaration or other recorded governing documents provide
128 otherwise.
129 2.3. A report of cash receipts and expenditures must
130 disclose the amount of receipts by accounts and receipt
131 classifications and the amount of expenses by accounts and
132 expense classifications, including the following, as applicable:
133 costs for security, professional, and management fees and
134 expenses; taxes; costs for recreation facilities; expenses for
135 refuse collection and utility services; expenses for lawn care;
136 costs for building maintenance and repair; insurance costs;
137 administration and salary expenses; and reserves, if maintained
138 by the association.
139 Section 42. Paragraph (b) of subsection (7) of section
140 720.303, Florida Statutes, is amended to read:
141 720.303 Association powers and duties; meetings of board;
142 official records; budgets; financial reporting; association
143 funds; recalls.—
144 (7) FINANCIAL REPORTING.—Within 90 days after the end of
145 the fiscal year, or annually on the date provided in the bylaws,
146 the association shall prepare and complete, or contract with a
147 third party for the preparation and completion of, a financial
148 report for the preceding fiscal year. Within 21 days after the
149 final financial report is completed by the association or
150 received from the third party, but not later than 120 days after
151 the end of the fiscal year or other date as provided in the
152 bylaws, the association shall, within the time limits set forth
153 in subsection (5), provide each member with a copy of the annual
154 financial report or a written notice that a copy of the
155 financial report is available upon request at no charge to the
156 member. Financial reports shall be prepared as follows:
157 (b)1. An association with total annual revenues of less
158 than $150,000 shall prepare a report of cash receipts and
159 expenditures.
160 2. An association in a community of fewer than 50 parcels,
161 regardless of the association’s annual revenues, may prepare a
162 report of cash receipts and expenditures in lieu of financial
163 statements required by paragraph (a) unless the governing
164 documents provide otherwise.
165 2.3. A report of cash receipts and disbursement must
166 disclose the amount of receipts by accounts and receipt
167 classifications and the amount of expenses by accounts and
168 expense classifications, including, but not limited to, the
169 following, as applicable: costs for security, professional, and
170 management fees and expenses; taxes; costs for recreation
171 facilities; expenses for refuse collection and utility services;
172 expenses for lawn care; costs for building maintenance and
173 repair; insurance costs; administration and salary expenses; and
174 reserves if maintained by the association.
175
176 ================= T I T L E A M E N D M E N T ================
177 And the title is amended as follows:
178 Delete line 139
179 and insert:
180 adopt rules; amending ss. 718.111 and 719.104, F.S.;
181 deleting provisions requiring certain associations to
182 prepare a financial report; deleting provisions
183 limiting the number of years an association may waive
184 financial reporting requirements; amending s. 720.303,
185 F.S.; deleting a provision authorizing a certain
186 association to prepare a specified report; providing
187 an effective date.