What are the requirements for HOA financial statements?

In Washington State, Homeowners Associations (HOAs) are required to produce financial statements each year. The requirements for these financial statements are set out by the Washington State Office of the Code Reviser. The financial statements must include the following information: 1. A statement of financial position that displays the assets, liabilities, and net assets of the HOA as well as the changes in the accounts from the start of the current fiscal year to the end. 2. An operating budget for the next fiscal year, listing income, expenses, and cash flows. 3. A statement of income, expenses, and changes in assets and liabilities. This statement displays the income and expenses for the current fiscal year, along with any changes in the accounts since the start of the year. 4. A statement of cash flows. This statement displays all cash received and paid out by the HOA during the current fiscal year. 5. Notes to the financial statements. This provides additional information and details about the operations that are not shown in the financial statements. Additionally, an HOA must also provide a copy of its governing documents, including any amendments or modifications to the documents within the last year. Finally, the HOA must also provide its most recent IRS Form 990. This form is used to report the financial activities of non-profit organizations to the IRS. These financial statements are important for members of the HOA as they provide essential information about the financial condition of the association, as well as any changes that have been made to the governing documents. These documents must be made readily available to any current or prospective members.

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What are the requirements for HOA financial statements?

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