COMMUNITY ASSOCIATION FINANCIAL STATEMENT SERVICES
Background: Arizona H.B. 2379 Legislation - 2004 H.B. 2379 amended Arizona Revised Statutes concerning homeowners and condominium associations (Associations) by requiring, if not already required by the Association’s CC&Rs, an annual audit, review or compilation of the Association’s financial statements. The audit, review or compilation must be completed within 180 days of the end of the Association’s fiscal year; and must be made available by request to Association members / unit owners within 30 days of its completion.
Compilation Services in Compliance with HOA Requirements A Financial Statement Compilation is limited to presenting in the form of financial statements information that is the representation of the Association in accordance with Statements of Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The Financial Statement Compilation services include preparation of the federal and state tax returns.
Review Services in Compliance with HOA Requirements
A Financial Statement Review consists principally of inquiries of organization personnel and analytical procedures applied to financial data - procedures that provide a ‘second set of eyes’ - by a professional - to read, interpret and evaluate the reasonableness of the financial statements.It is substantially less in scope than an audit and is referred to as “negative assurance.”The Financial Statement Review services include preparation of the federal and state tax returns.