Home, Condo & Community Association Services
Pellegrino Honick McFarland & Miller, P.A. (PHMM) has more than four decades of accounting, audit and regulatory compliance experience in supporting hundreds of Florida homeowner, condominium and community associations.
PHMM assist associations with taxation issues and tax planning, budget preparation and calculations of reserves and deferred maintenance, and accounting services. from bookkeeping and payroll to computerized accounting systems.
In addition, PHMM tax and accounting professionals have the expertise to recognize reporting discrepancies and deficiencies and recommend actions to ensure associations remain in compliance with local, state and federal tax and reporting regulations.
Today, unfortunately, associations must increasingly guard against fraud and theft of resources. PHMM forensic accountants, certified fraud examiners and digital forensics specialists have the knowledge, technology and experience to recover evidence from any digital system or device.
- Audit, Review & Complied Financial Statement Preparation
- Budgetary, Replacement Reserve and Reporting Assistance
- Tax Preparation and Advisory Services
- Computerized Accounting Systems Implementation and Support
- Accounting and Digital Forensics
Financial reporting for associations in Florida is rigorous, especially for condominium associations. Most community associations in Florida meet the state’s criteria of annual gross revenue and number of homes to require a Certified Public Accountant (CPA) to perform compilations, reviews and audits.
Collecting information from management to prepare financial statements.
In a compilation, a CPA collects data from an association’s management and then formats the information in financial statements that can be easily read by outside sources.
There is no assurance that compiled statements conform to Generally Accepted Accounting Principles (GAAP). During a compilation, a CPA is not required to verify or corroborate the information provided by management.
The CPA ensures that the “compiled financial statements” are understandable, and free from obvious math and clerical errors, then issues a report that includes any additional information from management or departures from GAAP.
A more intensive inquiry and analysis of accounting and financial data.
Florida statutes require that a community association with annual revenues of $200,000 or more, but less than $400,000, must prepare “reviewed financial statements.”
During a review, a CPA inquires about the accounting principles and practices, transaction procedures, suspected fraud, significant accounting adjustments and the financial data information provided by management in the compilation.
The CPA also performs analytical procedures on financial and accounting data to identify any unusual relationships or transactions.
With all questions satisfied through inquiry and analytical procedures, the CPA can issue a report that carries limited assurance that the “reviewed financial statements” conform to GAAP.
A formal examination of an organization’s accounts or financial situation
From planning through execution, a CPA conducts an audit of an association’s accounts and financial situation with “professional skepticism.” The formal, objective examination follows generally accepted auditing standards. An audit must be routinely performed for any community association with annual revenues of $400,000 or more. Financial emergencies, court actions and suspicions of impropriety can trigger audits at any time.
The CPA acquires audit evidence through analytical procedures and testing, and reports his or her findings based on tested evidence. The audit includes a review of an association’s internal accounting controls and the CPA’s assessment of any risks.
The CPA expresses an opinion in the audit as the soundness of the association’s accounts and procedures, and can provide reasonable assurance that the “audited financial statements” are free from material misstatements.