While this list is by no means exhaustive, some things to keep an eye out for when reviewing a strata’s year end financials includes:
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How the strata has ended the past two fiscal years.
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Significant deficits may be a result of the strata not budgeting properly, which could result in significant future strata fee increases.
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Make sure the strata is paying off its past year deficit properly.
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Strata corporations are required to pay off any previous fiscal year deficit in the current fiscal year. If the strata had a deficit in its last fiscal year, you should typically see:
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A budget line item showing the strata’s previous year deficit in the current fiscal year budget, or
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A contingency reserve fund (CRF) or special levy resolution, approving funds to pay off the previous year deficit.
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