CIRAs encompass several different types of associations, including condominiums, homeowners?, timeshares and cooperative associations. Unique to these forms of real estate ownership is the existence of common property and the establishment of an association to manage such property. These associations are generally referred to as common interest realty associations (CIRAs).
We have been involved in CIRA accounting for approximately 20 years. Our responsibility is to help the Board of Directors fulfill their fiduciary duty to their community.
CIRAs are required to provide financial information to their members on a regular basis. Financial statements of CIRAs are of utmost importance to members of the CIRA in order to determine whether assessments are used for budgetary purposes and whether common property is maintained and replaced according to a specified plan. Potential buyers are also keenly interested in these statements in order to properly assess the value of their purchases. Only through an understanding of these statements can new buyers and existing owners avoid costly surprises. Many other users, such as real estate agents, lenders, insurers and taxing authorities, are also interested in the information provided in a CIRA's financial statements.
Florida requires condominium association boards to deliver to each unit-owner a complete report of actual cash receipts and disbursements for the last 12 months. The Florida administrative code requires condominium associations to provide:
· Compiled financial statements when annual revenues are $100,000 to $200,000
· Reviewed financial statements when annual revenues are $200,000 to $400,000
· Audited financial statements when annual revenues are $400,000 or more
Under the Florida administrative code, reviews and audits must be performed by certified public accountants.
Our firm provides the following services:
· Annual Audits, Reviews and Compilations
· Monthly Accounting, CFO Services and Outsourced Accounting Services
· Liaison with Association Attorneys
· Budget preparation
· Preparation of annual income tax returns
· Board/Association Management Advisory Services
Our staff is also licensed by the State of Florida as Licensed Community Association Managers. Our staff is experienced, not only in the accounting requirements for CIRAs, but also in the management function. We believe this provides the Associations with a highly experienced accountant in the CIRA industry.