Cal. Civ. Code §5305
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Annual Financial Review — CPA Threshold
Requires associations with gross income exceeding $75,000 to have their annual financial statements reviewed by a licensee of the California Board of Accountancy in accordance with generally accepted accounting principles. A copy of the review must be distributed to members within 120 days after the close of each fiscal year. Section consists of a single paragraph with no lettered subsections.
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Statutory Text
Verified Oct 6, 2026 · CA_PUBLIC_LAW
Civil Code section 5305 Unless the governing documents impose more stringent standards, a review of the financial statement of the association shall be prepared in accordance with generally accepted accounting principles by a licensee of the California Board of Accountancy for any fiscal year in which the gross income to the association exceeds seventy-five thousand dollars ($75,000). A copy of the review of the financial statement shall be distributed to the members within 120 days after the close of each fiscal year, by individual delivery pursuant to Section 4040 . Source: Section 5305 , (updated Jan. 1, 2013; accessed Oct. 5, 2026).
Financial
| Ref | Requirement |
|---|---|
| §5305 | If the association's gross income exceeds $75,000 in a fiscal year, a financial statement review must be prepared under GAAP by a California Board of Accountancy licensee. Governing documents may impose stricter standards but cannot relax this statutory floor. |
| §5305 | Members must receive the CPA-reviewed financials within 120 days (about four months) after the fiscal year ends, by individual delivery — not just general notice posting. The §4040 individual-delivery method is required. |
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Legal references last verified July 4, 2026.
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