Compilation
An accountant presents financial information as statements. A compilation does not provide assurance that the statements are free from material misstatement.
Yes—financial reporting is different from annual reporting
| Requirement | Purpose | Where it goes |
|---|---|---|
| Sunbiz annual report | Updates the corporation’s information and maintains active status. | Florida Department of State. |
| Annual financial report | Reports the association’s prior fiscal-year financial activity at the required reporting level. | Provided or made available to owners under condominium law. |
| Monthly financial reports | Help the board monitor current finances and investigate differences. | Board and manager review; owner access as applicable. |
| Tax return | Addresses tax filing obligations. | Applicable tax authority; a separate accountant-led task. |
Remember the distinction: Sunbiz reports who the corporation is. Financial
reporting explains its finances. Completing one does not complete the other.
Sunbiz explicitly states that its annual report is not a financial statement. Filing is generally due by May 1. Confirm entity-specific fees and consequences; nonprofit corporations are not subject to the same late fee as profit corporations.
Different reports. Clear responsibilities.
Monthly reports help directors govern during the year
Suggested oversight packet:
- Balance sheet: assets, liabilities, and fund balances at a particular date.
- Income and expense report: activity over a period, preferably compared with budget.
- Bank reconciliations: explanations of differences between bank statements and accounting records.
- Delinquency aging: unpaid owner balances grouped by age.
- Reserve schedule: contributions, expenditures, balances, and commitments.
- Payment detail: significant vendors, transfers, and unusual transactions.
Ask the preparer which accounting basis is used. Under accrual accounting, income and expenses can appear before cash changes hands. A reported surplus is therefore not automatically spendable cash.
Recommended review questions: What changed? Why is actual spending different from budget? Are balances reconciled? What remains unexplained? Who will resolve it, and by when?
The annual financial report is a separate year-end task
Section 718.111(13) requires preparation and completion—or contracting for it—within 90 days after fiscal year-end, or the annual date specified in the bylaws.
Deliver the report or statutory availability notice within 21 days of completion or receipt, no later than 180 days after year-end or the applicable bylaws date. Requested copies are free within five business days; document delivery compliance by officer/director affidavit.
Use total annual revenues to determine the default level below. A lawful reduction requires a majority of all voting interests before fiscal year-end, applies only to that year, and cannot be used in consecutive years. Higher reporting levels are permitted.
| Total annual revenues | Default report |
|---|---|
| Less than $150,000 | Cash receipts and expenditures |
| $150,000 to less than $300,000 | Compiled financial statements |
| $300,000 to less than $500,000 | Reviewed financial statements |
| $500,000 or more | Audited financial statements |
Confirm governing-document requirements, revenue classification, and any statutory restriction on reductions with the association accountant and counsel.
Compilation, review, and audit are different engagements
Review
Primarily uses inquiries and analytical procedures to provide limited assurance. It is less extensive than an audit.
Audit
Uses procedures to obtain reasonable assurance and support an opinion. Reasonable assurance is not a guarantee that every error or fraud will be discovered.
Cash receipts and expenditures
Reports cash received and spent by classification. Ask the preparer to confirm the required content and reserve disclosures.
Engagement scope matters. Ask the accountant to explain what work is included, what records are needed, and what limitations apply. An annual engagement does not replace daily financial controls.
A suggested board reporting checklist
- Assign responsibility. Name a preparer and a director who tracks progress.
- Set the calendar. Track fiscal year-end, report preparation, owner delivery, Sunbiz filing, and tax tasks separately.
- Confirm the engagement. Agree on the required report level, scope, fee, and information deadlines.
- Prepare the records. Reconcile accounts and assemble invoices, assessments, reserve activity, and relevant decisions.
- Review the completed report. Ask about discrepancies and recommendations; retain the final version.
- Complete distribution. Use the legally appropriate report or notice process and preserve evidence.
For Century Village boards, ask the manager exactly which tasks the management contract includes. “The manager handles the finances” is too broad to establish whether the year-end report, Sunbiz filing, and tax return are all covered.
Reports inform. Directors follow through.
Official references & related resources
Finances & Reserves Financial Controls
Reviewed October 17, 2026. General education. Verify the report level, dates, accounting standards, and filing obligations with qualified association professionals.
Close the reporting cycle with evidence
Maintain a completion record showing the fiscal year, required report level, engagement date, preparer, information supplied, expected completion, actual receipt, owner distribution, and unresolved findings. Keep financial reporting, tax returns, Sunbiz, and DBPR submissions as separate tasks.
- Confirm the revenue calculation and any lawful reporting-level decision with the accountant.
- Resolve missing reconciliations and unexplained balances before the engagement stalls.
- Retain the final report, delivery evidence, compliance affidavit, and requested-copy log.
- Assign follow-up for recommendations and carry unfinished actions to the next board.
Use annual reporting, records maintenance, and website requirements to coordinate the separate duties. A document uploaded to a portal does not by itself prove every delivery requirement was completed.
Connected financial and community resources
Authority matters: Florida law establishes statutory duties; governing documents define association authority subject to law; contractual duties come from applicable agreements. UCO procedures address separate UCO functions. The added registers and workflows are Board Synergy recommended practices, not prescribed statutory forms. Historical articles provide background rather than current legal instructions.