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BILL: CS/SB 1178 Page 20 financial report is completed by the board or received from the third party, but no later than 120 days after the end of the fiscal year, the board must provide each member of the, association a copy of the financial report or a notice that it is available at no charge upon a written request. The association must deliver the financial report, by mail or hand delivery to each unit owner at the address last furnished to the association by the unit owner, a copy of the most recent financial report or a notice that a copy of the most recent financial report will be mailed or hand delivered to the unit owner, without charge, within 5 business days after receipt of a written request from the unit owner. The type of financial reporting that an association must perform differs based on the association's total annual revenue. From the least stringent to the most stringent, an association that has a total annual revenue of: • Less than $150,000 must prepare a report of cash receipts and expenditures. • At least $150,000 but less than $300,000 must prepare compiled financial statements.49 • At least $300,000 but less than $500,000 must prepare reviewed financial statements.so • $500,000 or more must prepare audited financial statements. 51 An association may prepare a more or less stringent type financial report if approved by vote of the majority of the voting interest of the association. 52 An approval to provide a less stringent type of financial report is effective only for the year in which the vote is taken and for the following fiscal year. 53 Effect of Proposed Changes The bill amends the financial reporting requirements in s. 718.111(13), F.S., to: • Revise the requirements for delivery of the financial statement to: o Require that the delivery be by hand delivery or mailed to each unit owner, by United States mail or personal delivery at the mailing address, property address, e-mail address, or facsimile number provided to fulfill the association's notice requirements; o Require associations to deliver a copy of the management letter or opinion letter, 54 as applicable, for the most recent financial report; and av A compiled financial statement is an accounting service based on information provided by the entity that is the subject of the financial statement. A compiled financial statement is made without a Certified Public Accountant's (CPA) assurance as to conformity with GAAP. Compiled financial statements must conform to the American Institute of Certified Public Accountants (AICPA) Statements on Standards for Accounting and Review Services. J.G. Siegel and J.K. Shim, Barron's Business Guides, Dictionary of Accounting Terms, 3rd ed. (Barron's 2000). so A reviewed financial statement is an accounting service that provides a board of directors and interested parties some assurance as to the reliability of financial data without the CPA conducting an examination in accordance with GAAP. Reviewed financial statements must comply with AICPA auditing and review standards for public companies or the AICPA review standards for non-public businesses. Id. si An audited financial statement by a CPA verifies the accuracy and completeness of the audited entities records in accordance with GAAP. Id. 12 See s. 718.111(13)(c) and (d), F.S. ss See s. 718.111(13)(d), F.S. sa An opinion letter states whether the accounts accord with accounting principles. A management letter explains whether there are any problems identified with the company's internal controls. These letters are required by accounting 330