Florida Community Association Manager Practice Exam

Which line item is NOT required to be included in Cash Basis Financial Reports for Condominiums?

1. Professional and management fees and expenses

2. Security costs

3. Maintenance and Repair

4. Trash Collection

The correct answer is: Security costs

In Cash Basis Financial Reports for Condominiums, certain line items are required to ensure that the financial health and operations of the condominium association are clearly communicated. The item identified as not required—security costs—can depend on the specific management practices of the association and may not be universally considered a necessity to report in all situations. Other items such as professional and management fees, maintenance and repair, and trash collection are more standard and crucial for understanding the operational expenses and overall financial obligations of the community. These expenses are routinely incurred and accounted for, providing essential insights into the regular financial activities of the association. Therefore, while security costs might be relevant, they are not mandated to be part of every financial report, allowing for flexibility in reporting based on the unique needs and decisions of the condominium. This distinction underscores the variety of expenses that may or may not be included based on an association’s specific operations and priorities.