1. (1) Period covered. The audit required by Section 718.301(4)(c), Florida Statutes, applies to all transfers of association control from developers to unit owners pursuant to Section 718.301(4), Florida Statutes, occurring on or after April 1, 1992. The audit shall cover a period beginning with the date of incorporation of the association, or from the end of the fiscal period covered by the last audit if all fiscal periods have been audited, and ending with the date of the transfer of association control to unit owners other than the developer. Nothing herein precludes the developer from exceeding the requirements of this rule by engaging a certified public accountant to audit the entire period of developer control rather than from the period covered by the last audit.

2. (2) Additional disclosure requirements for turnover audits. The financial statements, notes, or supplementary information shall present the revenues and expenses separately for each fiscal year and any interim periods included in the audit. The notes to the financial statements shall contain the following disclosures:

   1. (a) A statement that the financial statements were prepared pursuant to Section 718.301(4)(c), Florida Statutes;
   2. (b) A statement of total cash payments made by the developer to the association;
   3. (c) If the developer claims to have paid common expenses of the association which do no appear on the books and records of the association, the amount and purpose of each such expenditure shall be identified separately; and,

   4. (d) If a guarantee pursuant to Section 718.116(9), Florida Statutes, existed at any time during the period covered by the audit the financial statements shall disclose the following:

      1. The period of time covered by the guarantee;

      2. The amount of common expenses incurred during the guarantee period;

      3. The amount of assessments charged to the non-developer unit owners during the guarantee period;

      4. The amount of non-assessment revenues earned by the association, with each non-assessment revenue generating activity disclosed separately, during the guarantee period;

      5. The amount of expenses incurred by the association in the production of non-assessment revenues, with each non-assessment revenue generating activity disclosed separately, during the guarantee period;

      6. The amount of the developer’s payments pursuant to the guarantee; and

      7. Any financial obligation due to or from the developer resulting from the guarantee.

Specific Authority 718.111(13), 718.501(1)(f) FS. Law Implemented 718.111(13), 718.301(4)(c) FS. History–New 7-11-93, Formerly 7D-22.0062, Amended 12-20-95, 6-24-04.