Annual Budget

Definition

The budget of the condominium owners’ associationfor a fiscal year.

Use

The annual budget is used for planning the costs and revenue of the condominium owners’ association (COA) in a fiscal year. The total planned costs and revenues are apportioned to the owners using keys. (These are usually the same keys that are also used for COA settlement .) The system also calculates the assessments the owners have to pay based on the planned apportionment (see Assessment Contract ).

Structure

The annual budget contains the following items:

  • Expected income and expenses related to management of common property of the association

  • Contributions of the condominium owners for a maintenance reserve

    These two items determine the proportional obligation of the owners (in the form of assessments) in meeting costs.

The annual budget is similar to planning at the level of the settlement unit. Normally the only classification structure that is relevant is one from the viewpoint of settlement units (or of the service charge key). However, the system also allows a subdivision by cost elements.

Integration

There are two ways of creating the annual budget: