FINANCIAL DOCUMENTS

“Is a budget required?”

Yes, the association must prepare an operating budget and distribute it to the membership prior to the start of each fiscal year. (Civil Code § 1365(a))

“Is an annual audit required?”

Unless the association's governing documents require it, an annual audit is not required. For any year in which an association's gross income exceeds $75,000, however, the association must cause a licensed accountant to prepare a review of the association's financial statements in accordance with “generally accepted accounting principles.”(Corporations Code § 8321(b); Civil Code § 1365(c))