515B.3-121 ACCOUNTING CONTROLS.
(a) Subject to any additional or greater requirements set forth in the declaration or bylaws, a
review of the association's financial statements shall be made at the end of the association's fiscal
year, unless prior to 60 days after the end of that fiscal year, at a meeting or by mailed ballot, unit
owners of units to which at least 30 percent of the votes in the association are allocated vote to
waive the review requirement for that fiscal year. A waiver vote shall not apply to more than one
fiscal year, and shall not affect the board's authority to cause a review or audit to be made. The
reviewed financial statements shall be delivered to all members of the association within 180 days
after the end of the association's fiscal year.
(b) The review shall be made by a licensed, independent certified public accountant. A
licensed, independent certified public accountant means an accountant who (i) is not an employee
of the declarant or its affiliates, (ii) is professionally independent of the control of the declarant or
its affiliates, (iii) is licensed by the Minnesota State Board of Accountancy and (iv) satisfies the
tests for independence as promulgated by the American Institute of Certified Public Accountants.
(c) Where the financial statements are prepared by an independent certified public
accountant, they shall be prepared in accordance with generally accepted accounting principles as
established from time to time by the American Institute of Certified Public Accountants, and shall
be reviewed in accordance with standards for accounting and review services. In such case, the
financial statements shall be presented on the full accrual basis using an accounting format that
separates operating activity from replacement reserve activity.
History: 1993 c 222 art 3 s 21; 1999 c 11 art 2 s 24