Every month, your manager or accountant sends a financial package. Many boards glance at the bank balance, ask one question and move on. That's risky. The monthly report is where problems show up first: a missed deposit, a vendor paid twice, a reserve account quietly drained. Here's what to check, in the order an accountant would.
1. Bank reconciliations, for every account
Ask for the reconciliation of each operating and reserve account, not just the balances. A reconciliation ties the books to the bank statement and lists anything outstanding. Old uncleared checks or unexplained "adjustments" deserve a question.
2. Budget vs. actual, with explanations
Compare each line to the adopted budget. A variance isn't automatically bad, but someone should be able to explain it. Insurance, utilities and repairs are where surprises usually hide.
3. The delinquency (aging) report
Who owes what, and for how long? Rising 60- and 90-day balances affect cash flow and, eventually, every owner who does pay. The board should know when accounts move to collections and make sure that follows the association's adopted collection policy and Florida law.
4. Reserve balances, and what they're used for
Under § 718.112(2)(f), Florida condominium reserve funds may be used only for the purposes they were set aside for, unless owners approve another use in advance as the statute requires. Since the 2024 reforms, reserves for the items in a structural integrity reserve study face even tighter limits. Check that reserve balances match the funding plan and that no operating bills were paid from reserves.
5. Backup for receipts and expenses
Florida now treats transaction receipts and deposit slips that support association income and spending as official records. Spot-check a few invoices and deposits each month. It keeps everyone honest and makes the year-end financial report much easier.
6. What has to be posted
Condominium associations with 25 or more units must post on their website or app the annual financial report required by § 718.111(13) and any monthly income or expense statement to be considered at a meeting. If it's going on the website, it should be clean before the board reviews it.
If your board can't tell from the monthly package whether the association is on budget, the problem is the report, not the board.
Legal background
Sources: Fla. Stat. §§ 718.111(12) and (13), 718.112(2)(f), as amended in 2024 and 2025. HOAs follow parallel but different rules in Chapter 720. This article is general information, not legal or accounting advice for any specific association.
