● Video conference : If a condominium association holds its annual meeting via video conference, a quorum of the board must be physically present at a physical location stated in the bylaws or within fifteen miles of the condominium property or within the same county as the condominium property. ● Open to all unit owners : A meeting of the board or unit owners at which a proposed annual association budget will be considered may be conducted by video conference. The division shall adopt rules governing the requirements for such meetings. A sound transmitting device must be used so that the conversation of such members may be heard by the board or committee members attending in person, as well as any unit owners present at the meeting. ● Substitute budget : If a condominium board proposes in any fiscal year an annual budget which requires
assessments against unit owners which exceed 115% of assessments for the preceding fiscal year, the board shall simultaneously propose a substitute budget that does not include any discretionary expenditures that are not required to be in the budget. The substitute budget must be proposed at the budget meeting before the adoption of the annual budget. ● Budget adoption : At least 14 days before such budget meeting in which a substitute budget will be proposed A substitute budget is adopted if approved by a majority of all voting interests unless the bylaws require adoption by a greater percentage of voting interests. If a substitute budget is not adopted, the annual budget previously initially proposed by the board may be adopted. The full content of the Legislative changes made affecting budgets and reserves will be covered in the Legal Update portion of continuing education courses being presented.
Based on Revenue or Size: Annual Revenues
Type of Year-End Financial Statement
Less than $150,000 total annual revenues
Cash Report (Report of cash receipts and expenditures)
$150,000 or more, but less than $300,000
Compilation (Compiled financial statements)
$300,000 or more, but less than $500,000
Review (Reviewed financial statements)
$500,000 or more Audit (Audited financial statements) NOTE : Condominiums and Cooperatives year-end financial statements are based on annual revenue only. Timeshares are required by statute to present an audit as its year-end financial statements. Annual financial reporting
full business days after the adjournment of the unit owner meeting to recall one or more board members. The member or members will be recalled effective immediately upon conclusion of the board meeting, provided that the recall is valid, and for a cooperative providing the board certifies the recall the members or members recalled is effective immediately. NOTE : Electronic transmission may not be used as a method of giving notice of a meeting called in whole or in part for this purpose. Compensation for directors, officers, and committee members Unless otherwise provided in the bylaws, the officers shall serve without compensation and at the pleasure of the board of administration. Unless otherwise provided in the bylaws, the members of the board shall serve without compensation. However, this does not prohibit certain actions of reimbursement, or payment for unrelated duties and other provisions including: An association and its officers, directors, employees, and agents may not use a debit card issued in the name of the association, or billed directly to the association, for the payment of any association expense. ○ Debit cards : A person who uses a debit card issued in the name of the association, or billed directly to the association, for any expense that is not a lawful obligation of the association commits theft and must be removed from office and a vacancy declared. ○ The notice for the meeting at which the proposed activity will be considered by the board must include a description of the proposed activity, disclose the possible conflict of interest, and include a copy of all contracts and transactional documents related to the proposed activity. The disclosures of a possible conflict of interest must be entered into the written minutes of the meeting.
For both condominium and cooperative associations the financial statements must be based on the association’s total annual revenues, as shown above. Change the level of financial statement required - condominium : A condominium association may prepare a higher level of financial statement without a meeting or approval of unit owners. The association may prepare a lower level of financial statement if the approved by a majority TVI present at a properly noticed meeting of the members. The meeting and approval must occur before the end of the fiscal year and is effective only for the fiscal year in which the vote is taken. An association may not prepare a financial report pursuant to this paragraph for consecutive fiscal years. Change the level of financial statement required - cooperative : A cooperative association If at least 20% of the unit owners petition the board for a greater level of financial reporting than that required, the association must notice and hold a membership meeting within 30 days after receipt of the petition to vote on raising the level of reporting for that fiscal year. The association may prepare a lower level of financial statement if the approved by a majority TVI present at a properly noticed meeting of the members. Recall of board members Subject to F.S. 718.301 (condominiums), and F.S. 719.301 (cooperatives) any member of the board of administration (directors) may be recalled and removed from office with or without cause by the vote or agreement in writing by a majority of all the voting interests. A special meeting of the unit owners to recall a member or members of the board may be called by 10% of the voting interests giving notice of the meeting as required for a meeting of unit owners, and the notice will state the purpose of the meeting. If the recall is approved by a majority of all voting interests by a vote at a meeting, the recall will be effective. The board will notice and hold a board meeting within five
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Book Code: CAMFL1526
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