treasurer books

For a small HOA the cost of an audit by a CPA may be too high to justify. If the funds have been kept in a bank account then you should be able to get the bank statements from the bank. Reviewing these on your own should give you a pretty good idea if anything looks wrong. You should be able to compare the deposits to what the dues should have generated. You should be able to get check images of any checks written and you can see if the payees are look legitimate. If the funds were not deposited in a bank, there is probably nothing to audit.

Legality questions need to be answered by an attorney.

Is it proper for the new Treasurer to review the previous financial records? Absolutely. In fact, in my opinion, it's a must.


Please note that audits are extremely expensive and may not be needed. However, there should at least be a financial review of Association financial records by a third party just to keep everyone's mind at ease that what they are being told is a fair and accurate representation of the Association. To learn more, see this thread:

Subject: Financial Audits, Reviews or Compilation Which do you use?

Now, if I were the new treasurer, I would start creating records. Fortunately, you are only three years out and not more. Basically, the Treasurer will need to review all the deposits and communications between the Association and members to create what records they can. If the Association has access to electronic banking, the records may be easily available on-line. If not, the Association will need to spend some money to have copies of records from the bank.

I prefer pen and ink but there are many electronic methods that can be used as well. Later tonight, I'll post some templates using excel that may be helpful.

It's been busy at work and I haven't had the time to review and post the excel spreadsheets. I'll get to it, but it won't happen tonight.

Marissa, are you the Treasurer?

I am not but my neighbor is and she is pretty efficient with the workings of accounts. She has had every deposit printed from the bank and has been through them all and knows who is delinquent. Unfortunately, the previous treasurer feels that what she is doing is wrong, but what it comes down to is if things were done properly we wouldn't be in this position. Oh and yes we did ask for an audit a year ago, but all we got in return was a copy of the budget and the taxes done. So now here we are starting from scratch and yes she is making sure she gets everything recorded.

You might also check the Florida HOA statutes for the minimum requirements not to mention your own CC&R's

720.303 Association powers and duties; meetings of board; official records; budgets; financial reporting; association funds; recalls.—

(7) FINANCIAL REPORTING.—Within 90 days after the end of the fiscal year, or annually on the date provided in the bylaws, the association shall prepare and complete, or contract with a third party for the preparation and completion of, a financial report for the preceding fiscal year. Within 21 days after the final financial report is completed by the association or received from the third party, but not later than 120 days after the end of the fiscal year or other date as provided in the bylaws, the association shall, within the time limits set forth in subsection (5), provide each member with a copy of the annual financial report or a written notice that a copy of the financial report is available upon request at no charge to the member. Financial reports shall be prepared as follows:
(a) An association that meets the criteria of this paragraph shall prepare or cause to be prepared a complete set of financial statements in accordance with generally accepted accounting principles as adopted by the Board of Accountancy. The financial statements shall be based upon the association’s total annual revenues, as follows:
1. An association with total annual revenues of $150,000 or more, but less than $300,000, shall prepare compiled financial statements.
2. An association with total annual revenues of at least $300,000, but less than $500,000, shall prepare reviewed financial statements.
3. An association with total annual revenues of $500,000 or more shall prepare audited financial statements.
(b)1. An association with total annual revenues of less than $150,000 shall prepare a report of cash receipts and expenditures.
2. An association in a community of fewer than 50 parcels, regardless of the association’s annual revenues, may prepare a report of cash receipts and expenditures in lieu of financial statements required by paragraph (a) unless the governing documents provide otherwise.
3. A report of cash receipts and disbursement must disclose the amount of receipts by accounts and receipt classifications and the amount of expenses by accounts and expense classifications, including, but not limited to, the following, as applicable: costs for security, professional, and management fees and expenses; taxes; costs for recreation facilities; expenses for refuse collection and utility services; expenses for lawn care; costs for building maintenance and repair; insurance costs; administration and salary expenses; and reserves if maintained by the association.
(c) If 20 percent of the parcel owners petition the board for a level of financial reporting higher than that required by this section, the association shall duly notice and hold a meeting of members within 30 days of receipt of the petition for the purpose of voting on raising the level of reporting for that fiscal year. Upon approval of a majority of the total voting interests of the parcel owners, the association shall prepare or cause to be prepared, shall amend the budget or adopt a special assessment to pay for the financial report regardless of any provision to the contrary in the governing documents, and shall provide within 90 days of the meeting or the end of the fiscal year, whichever occurs later:
1. Compiled, reviewed, or audited financial statements, if the association is otherwise required to prepare a report of cash receipts and expenditures;
2. Reviewed or audited financial statements, if the association is otherwise required to prepare compiled financial statements; or
3. Audited financial statements if the association is otherwise required to prepare reviewed financial statements.
(d) If approved by a majority of the voting interests present at a properly called meeting of the association, an association may prepare or cause to be prepared:
1. A report of cash receipts and expenditures in lieu of a compiled, reviewed, or audited financial statement;
2. A report of cash receipts and expenditures or a compiled financial statement in lieu of a reviewed or audited financial statement; or
3. A report of cash receipts and expenditures, a compiled financial statement, or a reviewed financial statement in lieu of an audited financial statement.