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Townhome hoa in Florida financials. I’ve exhausted avenues to get manager and board to allow me to view detailed financials regarding budget. What else can I do??

Wow, I'll give an example for wanting to know...When you have a large outlay under General Maintenance and repair or scheduled maintenance in any given month you should be able to do a deep dive as to want the expenditure was for. One month ours had a large amount for sod which come to find out went to a homeowner because of their sod supposedly diseased. I could find nowhere in our minutes that this was discussed or who authorized this expense. Stuff like this you need to scrutinize. It can set precedents and provide some checks and balance.

Good topic - what do most states identify as financial records that can be obtained or viewed?

I haven’t had a case of anyone wanting this level of financials ... could be an expensive thing to provide?

Receipts. Proof the numbers are real. Line items explained and backed up with paper work. Transparency.

A budget is only an estimate, so you will find no direct proof of each line in the budget except to the extent each line is an estimate of what future expenses will be and what future income (almost entirely from members' assessments) will be.

The previous year's monthly profit and loss statements and monthly balance sheets, and the reserve study should back up the estimates made for the following year's annual budget.

Do you understand what a profit and loss statement, balance sheet and reserve study are? If not, google.

Sure, but only to the extent that FS 720 requires transparency.

Much of the burden falls on you to identify exactly what records are needed to answer your specific question. The HOA has not obligation to hold your hand and educate you on some basic HOA accounting principles.

I can add and subtract. I’m asking for 2020 financial records. It’s not that hard.

I’m not getting clarity on exactly what Samantha is requesting.

Thppt!

I agree. Sounds like the beginning of a witch hunt.

The 2020 Florida Statutes

Title XL
REAL AND PERSONAL PROPERTY Chapter 720
HOMEOWNERS' ASSOCIATIONS View Entire Chapter

CHAPTER 720
HOMEOWNERS’ ASSOCIATIONS
PART I
GENERAL PROVISIONS
(ss. 720.301-720.318)
PART II
DISCLOSURE PRIOR TO SALE OF RESIDENTIAL
PARCELS
(ss. 720.401, 720.402)
PART III
COVENANT REVITALIZATION
(ss. 720.403-720.407)
PART I
GENERAL PROVISIONS

2/9/2021

Fl. Cam

I am requesting an Accurate, itemized, and detailed records of all receipts and expenditures for budget year 2020

I have requested these items before via certified mail and yet to hear anything from FL CAM Maybe due to citing different statute. But it was still a request

(4) OFFICIAL RECORDS.—The association shall maintain each of the following items, when applicable, which constitute the official records of the association:
(a) Copies of any plans, specifications, permits, and warranties related to improvements constructed on the common areas or other property that the association is obligated to maintain, repair, or replace.
(b) A copy of the bylaws of the association and of each amendment to the bylaws.
(c) A copy of the articles of incorporation of the association and of each amendment thereto.
(d) A copy of the declaration of covenants and a copy of each amendment thereto.
(e) A copy of the current rules of the homeowners’ association.
(f) The minutes of all meetings of the board of directors and of the members, which minutes must be retained for at least 7 years.
(g) A current roster of all members and their mailing addresses and parcel identifications. The association shall also maintain the electronic mailing addresses and the numbers designated by members for receiving notice sent by electronic transmission of those members consenting to receive notice by electronic transmission. The electronic mailing addresses and numbers provided by unit owners to receive notice by electronic transmission shall be removed from association records when consent to receive notice by electronic transmission is revoked. However, the association is not liable for an erroneous disclosure of the electronic mail address or the number for receiving electronic transmission of notices.
(h) All of the association’s insurance policies or a copy thereof, which policies must be retained for at least 7 years.
(i) A current copy of all contracts to which the association is a party, including, without limitation, any management agreement, lease, or other contract under which the association has any obligation or responsibility. Bids received by the association for work to be performed must also be considered official records and must be kept for a period of 1 year.
(j) The financial and accounting records of the association, kept according to good accounting practices. All financial and accounting records must be maintained for a period of at least 7 years. The financial and accounting records must include:
1. Accurate, itemized, and detailed records of all receipts and expenditures.
2. A current account and a periodic statement of the account for each member, designating the name and current address of each member who is obligated to pay assessments, the due date and amount of each assessment or other charge against the member, the date and amount of each payment on the account, and the balance due.
3. All tax returns, financial statements, and financial reports of the association.
4. Any other records that identify, measure, record, or communicate financial information.
(k) A copy of the disclosure summary described in s. 720.401(1).
(l) All other written records of the association not specifically included in the foregoing which are related to the operation of the association.
(5) INSPECTION AND COPYING OF RECORDS.—The official records shall be maintained within the state for at least 7 years and shall be made available to a parcel owner for inspection or photocopying within 45 miles of the community or within the county in which the association is located within 10 business days after receipt by the board or its designee of a written request. This subsection may be complied with by having a copy of the official records available for inspection or copying in the community or, at the option of the association, by making the records available to a parcel owner electronically via the Internet or by allowing the records to be viewed in electronic format on a computer screen and printed upon request. If the association has a photocopy machine available where the records are maintained, it must provide parcel owners with copies on request during the inspection if the entire request is limited to no more than 25 pages. An association shall allow a member or his or her authorized representative to use a portable device, including a smartphone, tablet, portable scanner, or any other technology capable of scanning or taking photographs, to make an electronic copy of the official records in lieu of the association’s providing the member or his or her authorized representative with a copy of such records. The association may not charge a fee to a member or his or her authorized representative for the use of a portable device.
(a) The failure of an association to provide access to the records within 10 business days after receipt of a written request submitted by certified mail, return receipt requested, creates a rebuttable presumption that the association willfully failed to comply with this subsection.
(b) A member who is denied access to official records is entitled to the actual damages or minimum damages for the association’s willful failure to comply with this subsection. The minimum damages are to be $50 per calendar day up to 10 days, the calculation to begin on the 11th business day after receipt of the written request.

Samantha

I suggest you confine your request for receipts to items which are not regular recurring expenses. I would not ask for copies of the utility bills or monthly contracted expenditures (basic landscaping contract, waste management, management contract, etc.) if the actuals and budget numbers agree or vary by only a small percentage. If there is an anomaly, then yes, question it.

Be aware too the billing cycles can affect financial reporting in a month. Once or twice a year the water bill or electric bill cycle will result in two bills rendered in a calendar month, with no bill the following month. An entry for water usage on a financial report which is twice the average or budget may simply be the result of two bills in the reporting period--or, it could indicate a significant water leak.

If, as someone suggested, there is a large expenditure in a category which was not budgeted, then yes, seek an explanation if one is not provided in the report package. I would look at the total year expected expenditure for that category however before asking for an explanation. For example, we budget x dollars annually for irrigation system repairs based on historic data. I usually enter that figure in July as that is one of the months the system is run heavily. If that expenditure comes in April, it does not mean something questionable has taken place, it simply means the pipe broke or the valve failed when the system was turned back on after the winter.

An action in Small Claims Court may not result in a court order that orders the board to produce the records you're looking for. But you can definitely file in Small Claims Court for the $50 per day (for every day over 10) statutory damages when the board fails to provide access to the records you've requested. You'll have to serve the board with a demand for presuit mediation first before you can sue. See FS 720.311(2)(a) for the required language substantially required in such a demand. You can include the cost of the mediation in your small claims court action.

Not that it is necessarily the right thing to do, but I would offer to let Samatha peruse her way through the “normal” sorts of records, while being open and helpful.

If her intent is to cause pain and cost, it might be less expensive to be helpful, while providing a point I would not exceed - then, with open hands, tell the judge she is causing significant cost to the HOA and ask what else can be done to make her stop.

All this assuming there is nothing illegal occurring underneath the numbers.

I agree. Sam is convinced m is wrong and I doubt she will ever let go of that bone.

I wouldn't pussyfoot around. Put the specific request to view the financial information in writing and send it certified mail to the board. When they see you're serious they may suddenly change their tune. And if, perchance, there is some funny business going on, following the law to the letter is probably the best way to shine the light of day on whatever it is they're doing.

I am not going to defend what is being done in you association as I do not have all the facts. That said, in our budget we have a line item Landscaping Repair. As long as we stay under this budgeted amount you will not see any specific reference in the Minutes as to when a repair was authorized. The expenditure will show up in our Year To Date report and one could dig deeper to find who this amount was spent with.

James,

Did you intend to take this thread over from Samantha?