[§514E-10.3]  Time share owners
association; budgets and reserves.  (a)  For each fiscal year, the plan
manager, or the board of the association if there is no plan manager, shall
adopt an operating budget and distribute copies to all members of the association. 
The budget shall contain at least the following:



(1)  The estimated revenues and operating expenses of
the association;



(2)  Information as to whether the budget has been
prepared on a cash or accrual basis;



(3)  The total cash reserves of the association as of
the date of the budget;



(4)  The estimated cash reserves the association will
require to maintain the property;



(5)  A general explanation of how the estimated cash
reserves are computed; and



(6)  The amount the association must collect for the
year to fund the estimated cash reserves.



(b)  The plan manager, or the board of the
association if there is no plan manager, shall arrange for an annual
independent audit of the association's financial accounts conducted by a public
accountant in accordance with generally accepted auditing standards.  Upon
request, a copy of the audit shall be provided to the director, to any member
of the association, and any prospective purchaser.  The audit report shall
include such information as provided by rules adopted by the director pursuant
to chapter 91. [L 1993, c 320, §1]