VictorG1 (Michigan)
Posts: 4
Posts: 4
Posted:
Our HOAs are supposedly receiving income through assessments, not dues. Are there any restrictions in transferring left over funds in a budget maintenance line item from one fiscal year to the next?
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carry over funds from one fiscal year to the next
Started by VictorG1 • 5 replies • 2001 views
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JamesG (Connecticut)
Posts: 83
Posts: 83
Posted:
Depends on your documents and state law. In my state of Connecticut, any operating surplus must be either returned to the owners or set aside for "future expenses", AKA reserves. As we try to control our spending very tightly, we have never had the occasion to return surplus funds and our transfer to reserves has been small. It is important that the owners understand the applicable rules or laws that apply to your community and that any ultimate decision be voted on by the Board.
TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
Victor,
It doesn't matter how well you prepare your budget. Every year there will be some line items that are over budget and some that are under budget. Therefore, our Association's Board passes a resolution every year that any funds available from underfunded line items in the budget less the over budgeted line items will be transferred to the Reserve Contingency fund.
It doesn't matter how well you prepare your budget. Every year there will be some line items that are over budget and some that are under budget. Therefore, our Association's Board passes a resolution every year that any funds available from underfunded line items in the budget less the over budgeted line items will be transferred to the Reserve Contingency fund.
KellyM3 (North Carolina)
Posts: 2,239
Posts: 2,239
Posted:
Yes, I believe you can deposit your leftover funds into an account or operating reserve that could help with future operating expenses.
CarolR11 (Colorado)
Posts: 2,563
Posts: 2,563
Posted:
When we send out ballots for elections in the fall, we also ask Owners to vote of whether to place any unspent revenues into reserves or the following year's operating budget. The Board votes on it first and includes a rec in the ballot cover letter. The board always has recommended the operating budget, and the majority of owners vote in agreement.
CarolR11 (Colorado)
Posts: 2,563
Posts: 2,563
Posted:
When we send out ballots for elections in the fall, we also ask Owners to vote of whether to place any unspent revenues into reserves or the following year's operating budget. The Board votes on it first and includes a rec in the ballot cover letter. The board always has recommended the operating budget, and the majority of owners have voted in agreement.
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