annual financial report

RB4,

You don't specify if you are in a condominium. If you are, then per The IL Condominium Act, section 9 (scroll down the page) a budget is to be made and distributed prior to the conveyance (sale) of any unit, there is no specific requirement that it be done on an annual basis that I could find. The specific language of that section is:

c) Budget and reserves.
(1) The board of managers shall prepare and

distribute to all unit owners a detailed proposed annual budget, setting forth with particularity all anticipated common expenses by category as well as all anticipated assessments and other income. The initial budget and common expense assessment based thereon shall be adopted prior to the conveyance of any unit. The budget shall also set forth each unit owner's proposed common expense assessment.

If you are not a condominium, then per the IL Common Interest Community Association Act, section I-35 (scroll down the page), a list of expenditures must be presented at the sale of the unit (similar to the condo act).

However, if you scroll farther down the page to section Sec. 1‑45. Finances, you will find that an itemized accounting of expenses should be provided at the annual meeting. The budget would only be provided 30 days prior to it being adopted (which may or may not coincide with the annual meeting).

That section states:

Sec. 1‑45. Finances.
(a) Each unit owner shall receive, at least 30 days prior to the adoption thereof by the board, a copy of the proposed annual budget together with an indication of which portions are intended for reserves, capital expenditures or repairs or payment of real estate taxes.

(b) The board shall annually supply to all unit owners an itemized accounting of the common expenses for the preceding year actually incurred or paid, together with an indication of which portions were for reserves, capital expenditures or repairs or payment of real estate taxes and with a tabulation of the amounts collected pursuant to the budget or assessment, and showing the net excess or deficit of income over expenditures plus reserves.

Now, it is possible that the Treasurer isn't refusing to do a budget or report. It could be that personal issues are preventing him from having the time to put together the reports in his volunteer position. You might want to approach the board with an offer to assist putting it together since it's a requirement under the law.

Hope this helps,

Tim

Thanks for the replies. The assn is an Il Not-for-Proft org, tax-exmpt, and is not required to comply or adopt the rules of the Il Common Int Community Act. I believe we fall below the dollar threshold for annual revenues. I don't anticipate the board agreeing to participate in the Act since it will hold them more accountable.
Thanks again for taking the tme and effort to reply.

Susan

I agree with you.

Once someone starts saying they do not have to do something or spouting laws to me when we are all in this "together", I become very nervous even when they are correct.

Something is fishy but sometimes it is an original OP with an issue that is the fishy smelling one.....LOL

Tim, Reading 765ILCS 160/1-75 sec 1-75. Exemptions. We have 161 homes, but our budgeted assessments are less than $100,000. I read the paragraph and feel that maybe we are exempt from the Act because our $$$ <100,000. I also read the word "either" and would need concrete explanation to remind the board of the rules we need to follow. The board will do the "right" thing but needs to know in no uncertain terms what rules (Acts) apply. I think the assn was/is operating under IL General Not For Profit Corp Act of 1986, possibly referred to as ILCS 805? Specifically sections 107, 108. I do not know if 765ILCS replaces/supercedes ILCS 805.
I guess an option would be to remove the exemption, if it truely does apply to us, by a majority vote.
Thanks

RB4,

Per the section you cited, I agree that your Association may be exempt.

As you pointed out, the IL General Not For Profit Corporation Act of 1986 would still apply.

I did not see anything that required the corporation to publish it's financials to the membership (although it's common to do so and I may have missed it). However, Per Sec. 107.75 of that act:

" Any voting member shall have the right to examine, in person or by agent, at any reasonable time or times, the corporation's books and records of account and minutes, and to make extracts therefrom, but only for a proper purpose. In order to exercise this right, a voting member must make written demand upon the corporation, stating with particularity the records sought to be examined and the purpose therefor."

So submit your request in writing and look at the financials.

Please note that per that same section: "If a voting member seeks to examine books or records of account the burden of proof is upon the voting member to establish a proper purpose. "

RB4,

Your next option would be to solicit support and run for the board. If elected you can volunteer to be appointed treasurer.

Not knowing how you requested the information I can't really comment except to say that you should have been able to see the financials and Association records (unless you were asking for items that could be withheld).

Don't let this discourage you. Attend as many board meetings as you can. Volunteer for things you can volunteer for. In time, things within your Association can change (I know this for a fact as it took three years, but I was able to get some things changed within my Association).