Question: Our annual budget is always over $500,000 and requires a year-end audit unless waived by the owners, which I understand cannot be done more than three consecutive years. Is there a penalty and what could happen if the association obtains owner approval to waive the audit for more than three consecutive years? M.K. via e-mail
Answer: The law is as you state. If an association ignores this requirement, and obtains owner approval to waive the audit for more than three consecutive years, it is my opinion that the invalid waiver is a nullity and the association must have an audit regardless of the vote. The failure to do so would be a violation of the statute.
An owner could file a complaint with the Florida Division of Condominiums, Timeshares, and Mobile Homes (the “Division”). The Division would investigate the allegation and if it confirmed the violation, it could order the association to have an audit performed or face monetary penalties being imposed.