What are the requirements for HOA financial statements?

In Utah, Homeowners Association (HOA) financial statements must provide a detailed statement of the association’s financial position and activities. The statement must include: • An income statement that includes all sources of income and expenses, including the administrative budget, special assessments, late payments, legal fees and other charges. • A balance sheet showing the detailed assets and liabilities of the HOA including all sources of funding, investments, and liabilities. • A statement of cash flows that provides information on the HOA’s sources and uses of cash. • Any additional financial information required by the bylaws or Board of Directors. HOA financial statements must also be presented in accordance with generally accepted accounting principles (GAAP). In addition, the statements must be provided to members on an annual basis and be reviewed and approved by the Board of Directors. Financial statements can also be reviewed and approved by an independent auditor. By ensuring that HOA financial statements are accurate and up-to-date, members can be better informed about the financial health and operations of the association. In addition, financial transparency allows members to monitor the use of their assessments and ensure that their money is being rightfully spent.

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What are the requirements for HOA financial statements?

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