Division of Florida Condominiums, Timeshares, and Mobile Homes

Frequently Asked Questions - Financial Related Issues

1. When and why do I have to file the annual audit of the timeshare plan financial statements with the division? What happens if I file late with the division?
Audited financial statements are required to be filed with the division no later than five calendar months after the fiscal year end of the timeshare plan per section 721.13(3)(e), F.S. The purpose of filing audited financial statements is to provide information to the division related to the financial operations and stability of the timeshare plan. If the division has reasonable cause to believe that a violation of Chapter721 has occurred, the division may begin enforcement proceedings in its own name against any regulated party. The late filing or failing to arrange for an independent audit will subject the association to a statutory penalty of $2,500 for each violation. All financial documents should be sent to:

Bureau of Compliance
Division of Florida Condominiums, Timeshares, and Mobile Homes
Northwood Centre, 1940 North Monroe Street
Tallahassee, FL 32399-1032

2. Is the managing entity required to have a Community Association Management (CAM) license?
The managing entity performing community association management does not need to have a CAM license, but an individual who is acting for the managing entity must comply with Part VIII of Chapter 468, F.S., by obtaining a Community Association Management (CAM) license.

3. What are some of the responsibilities of the managing entity?
Management and maintenance of accommodations and facilities per section 721.13(3)(a), F.S.; collection of assessments and providing the annual budget to purchasers per sections 721.13(3)(b) and (c)1., F.S.; maintenance of books and records per section 721.13(3)(d)1., F.S.; arranging for an annual independent audit of books and financial records per section 721.13(3)(e), F.S.; and making books and records available to the division for inspection per section 721.13(3)(f), F.S.

4. Can the managing entity deny the use of accommodations to purchasers?
The managing entity may deny use to any purchaser who is delinquent in the payment of any assessments for common expenses or ad valorem real estate taxes. Such denial shall be made pursuant to sections 721.13(6)(a) and (b), F.S.

5. Can operating funds be commingled with reserve funds?
No. However, the managing entity may maintain operating and reserve funds within a single account for a period not to exceed 30 days after the date on which the managing entity received payment of such funds per sections 721.15(9)(a) and (b), F.S.

6. What percentage of voting interests are required to make a quorum?
Unless the articles of incorporation, the bylaws, or the provisions of Chapter 721, F.S., provide for a higher quorum requirement, the percentage of voting interests required to make decisions and to constitute a quorum at a meeting of the members of a timeshare condominium or owners’ association shall be 15 percent of the voting interests.

7. What is a receipts and disbursements statement, and when is it required to be filed with the Division?
The receipts and disbursements statement is a statement of the escrow account relating to collected ad valorem taxes on behalf of timeshare owners by the managing entity. The receipts and disbursements statement is required to be filed annually by May 1 of the year following the tax year reported per sections 721.13(3)(i) and 192.037(6)(e), F.S. As of April 30, 1998, the receipts and disbursements statement must also include a statement disclosing that all ad valorem taxes have been paid in full to the tax collector through the current assessment year, or, if all such ad valorem taxes have not been paid in full to the tax collector, a statement disclosing those assessment years for which there are outstanding ad valorem taxes due and the total amount of all delinquent taxes, interest, and penalties for each such assessment year as of the date of statement of receipts and disbursements.

Return to FAQ's page.