The annual financial report is the one compliance output every Florida HOA must produce regardless of size. F.S. 720.303(7) scales the intensity by revenue, sets a 90-day-post-fiscal-year deadline, and gives members the right to demand a specific compliance level when the board tries to downgrade. A CAM team that treats the financial report as a bookkeeper task hands the board into a 10% membership-petition challenge that forces a costly upgrade mid-cycle.
What the statute says
The tiering framework lives in F.S. 720.303(7)(a):
Within 90 days after the end of the fiscal year, or annually on a date provided in the bylaws, the association shall prepare and complete, or contract for the preparation and completion of, a financial report for the preceding fiscal year.
And the revenue tiers in F.S. 720.303(7)(a)(1)-(4):
- Associations with total annual revenues of $150,000 or more, but less than $300,000, shall prepare compiled financial statements.
- Associations with total annual revenues of at least $300,000, but less than $500,000, shall prepare reviewed financial statements.
- Associations with total annual revenues of $500,000 or more shall prepare audited financial statements.
- An association that operates fewer than 50 parcels, regardless of the association's annual revenues, shall prepare a report of cash receipts and expenditures in lieu of the financial statements.
"What's the difference between compiled, reviewed, and audited?"
Three distinct CPA-practice levels with progressively more intensive procedures + higher cost. Three practical framings:
- Compiled. The CPA assembles the financials from the association's books without verifying the underlying data. Lowest assurance level. Typical cost: $2,000-$4,000.
- Reviewed. The CPA applies analytical procedures + limited inquiries to identify any material modifications needed. Middle assurance. Typical cost: $4,000-$8,000.
- Audited. The CPA physically examines source documents + tests controls + confirms balances with third parties + issues an opinion. Highest assurance. Typical cost: $8,000-$20,000 for a residential HOA.
"What if the association is under the 50-parcel threshold?"
F.S. 720.303(7)(a)(4) drops the compiled/reviewed/audited framework entirely. The requirement becomes a simple "report of cash receipts and expenditures" regardless of revenue. This is the lightest compliance posture and suits many small townhome or low-density single-family communities.
Two cautions:
- Count parcels, not households. A 48-parcel community where some parcels hold multiple dwelling units still qualifies for the cash-receipts report.
- The cash-receipts report is NOT a financial statement. Do not pitch it as a "financial statement" to members; the statute explicitly distinguishes the two.
"Can the board downgrade?"
F.S. 720.303(7)(c) lets the membership vote to prepare a report at a lower level than required. The vote threshold is a majority of the total voting interests present at a properly noticed meeting. Three practical notes:
- Downgrade is year-by-year. A 2025 downgrade vote does not carry to 2026; each year restarts the decision.
- The downgrade does not escape the 90-day deadline. Even a cash-receipts report is due on schedule.
- Members can FORCE an upgrade too. Per F.S. 720.303(7)(d), 20% of the total voting interests may petition in writing for the next-tier-up report. If the petition is timely (within 30 days after receiving a notice of the lower-tier decision), the association must prepare the higher-tier report at its own expense. This petition right is the bear trap most boards do not see coming.
"What happens if the report is late?"
F.S. 720.303(7)(b) requires the report to be made available to every member within 21 days of a written request OR upon completion, whichever comes first. Late reports trigger the rebuttable-denial presumption under F.S. 720.303(5)(e) by operation of law (the financial report is an official record). Three consequences:
- Members may petition the Department of Business and Professional Regulation (DBPR). DBPR investigates financial non-compliance. Not a fee-shift but a real enforcement pathway.
- Selective-enforcement risk increases. A board that fines members while failing to produce the statutorily mandated report invites a procedural-defect defense on every enforcement.
- D&O coverage implications. Some policies exclude fiduciary breaches; failing to produce a statutorily required report can be framed as such.
Why this post exists
HOAStream surfaces F.S. 720.303(7) alongside the association's revenue run-rate + fiscal-year calendar in under 500 milliseconds, so the CAM team has the correct tier ready before the 90-day deadline. Nothing in this post or in the product is legal advice. For a specific financial-report dispute, a retained Florida HOA attorney is the right call.
If you want the full annual-report statute stack alongside your community's declaration and fiscal records, sign up at /cam or /board.