budget

Started by BB5 • 6 replies • 1127 views

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BB5 (Missouri)
Posts: 145

Posted:

At our annual meeting shouldn't there be a "budget" presented for the following year ? The only financials we ever see are for the year ended and then it is only the total amout spent not a monthly break down of each expense. Last year there was only $125.00 left in the account and that was a month before the end of the fiscal year. As past Pres. we were never that short on funds and usually had four to five thousand in reverve.

BrianB (California)
Posts: 2,820

Posted:

not sure if it is legally required, but it would be professional to have two sheets: projected expenses for the upcoming year, and actual expenses for the past year.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Quote:

As past Pres. we were never that short on funds and usually had four to five thousand in reverve.

Sounds like someone needs to run for president again. (Wink)

There are no requirements for people who run an HOA to have any idea what they are doing.

BobbiW (Idaho)
Posts: 9

Posted:

hello

this is the very question I have. First let me explain in our HOA there is a document called the Articles of Declaration. It states the annual dues are based on a budget. This HOA has been in existance for several years and have never produced a budget. They only produced a balance sheet after I complained loudly for a couple of years. My question to those of you is " if the Articles of Declaration" state that the dues are based on a budget shouldn't they produce one? i inquired about this and they told me they didn't think one was necessary. Any legal advice. I also do not believe a home owner is obligated to pay any dues if they don't get a budget so they can see where the money is being spent. At least the AOD state that the dues assessed are based on that budet.

JanetB2 (Colorado)
Posts: 4,219

Posted:

Bobbi ... I would suggest you post your question in a separate thread. If you go to the HOA Discussions and click start new thread, you will have better response.

You are in a different state; therefore, the answers may be different that those for the original post on this thread.

JanetB2 (Colorado)
Posts: 4,219

Posted:

By the way ... welcome to the group.

SusanW1 (Michigan)
Posts: 5,202

Posted:

BB% - ask for the Balance Sheet.
This will list ALL the accounts your HOA has - checking, savings, Petty Cash, Reserve, CD's, etc.

What you saw was a snapshot of ONE year's activity and as a non-profit, it should be 'close to the bone.'

It does not tell the entire story about the finances of the HOA. The Balance Sheet will.

Our end of year P/L statement always ends up with about $300 in it - because we moved $94,000 into the Reserve fund at the end of the year, as required by our bylaws.

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