Services

The right level of assurance, and what it covers.

Florida law recognizes four levels of year-end financial reporting for community associations. They differ in depth, in cost, and in what the report can tell the board, a lender, and the members.

Request a proposal Which level the statute requires

Reasonable assurance

Financial statement audit

An opinion on whether the association's financial statements are fairly presented, in all material respects, in accordance with accounting principles generally accepted in the United States.

An audit is an examination. We confirm cash and loan balances directly with the association's banks, test a sample of expenses against invoices and contracts, evaluate internal control relevant to the audit, and check the statements and notes against GAAP.

Deliverable: Financial statements and notes, with the independent auditor's report
Statutory minimum for: Total annual revenues of $500,000 or more, and homeowners' associations with at least 1,000 parcels

Limited assurance

Financial statement review

Limited assurance based primarily on inquiry and analytical procedures.

A review is narrower than an audit. We perform analytical procedures and make inquiries of management, then report whether we are aware of any material modifications that should be made to the statements. There are no bank confirmations and no testing of transactions.

Deliverable: Financial statements and notes, with the independent accountant's review report
Statutory minimum for: Total annual revenues of $300,000 to less than $500,000

No assurance opinion

Compilation

Financial statements presented in a professional format, without an assurance opinion.

A compilation assembles the association's records into financial statements in proper form. We do not verify the underlying records and express no assurance on them.

Deliverable: Financial statements in proper form, with the accountant's compilation report
Statutory minimum for: Total annual revenues of $150,000 to less than $300,000

No assurance opinion

Report of cash receipts and expenditures

A summary of money in and money out, on the cash basis, for the smallest associations.

A CPA is not required to prepare this report, though many associations prefer that one does.

Deliverable: A cash-basis summary of receipts and expenditures
Statutory minimum for: Total annual revenues under $150,000

Side by side

What the CPA does at each level.

Procedure	Audit	Review	Compilation	Cash receipts
Statements in GAAP form	Yes	Yes	Yes	Cash-basis summary
Analytical review of revenues and expenses	Yes	Yes	No	No
Inquiries of management and written representations	Yes	Yes	No	No
Confirms cash and loan balances with banks	Yes	No	No	No
Tests expenses against invoices and contracts	Yes	No	No	No
Evaluates internal control relevant to the audit	Yes	No	No	No
Issues an opinion	Yes	No	No	No
Assurance provided	Reasonable	Limited	None	None

Scope and fees

What the proposal settles before work begins.

A fixed fee for a defined scope

Every engagement is quoted before the association commits. The quote covers a defined scope. There is no open-ended hourly billing.

The association's tax return

We can prepare the association's federal income tax return, Form 1120-H or Form 1120, alongside the engagement. Ask for it in the proposal request.

Comparative statements

Prior-year figures can be shown alongside the current year in summarized form. Tell us at the proposal stage, because it affects the scope.

Changing CPAs

We communicate with the predecessor CPA before accepting the engagement and need the prior-year statements and adjusting entries. It is routine when the association starts early.

Request a proposal

Tell us about the association.

Send the association's total annual revenue, fiscal year end, and the level of report it filed last year. We will confirm the level Florida law requires and send a fixed-fee proposal.

Request a proposal

Or call 754-354-3231
Monday to Friday, 9:00 AM to 5:00 PM ET