Fiscal Year

1. At the annual mtg every year, the membership votes on a 12 month budget for the upcoming year. The fiscal yr has usually been dated Oct 1,20XX-Sept 30,20xx and does show at the
top of proposed new annual budget being voted on.

2. The annual meeting is then usually held 2-4 weeks "after" the previous budget has ended on Sept 30 so technically the HOA is/has operated 2-4 weeks after this expiration date. Can
it be said then that the HOA is spending non-approved monies in this 2-4 week period, after Sept 30 but 2-4 weeks before approving the new budget?

3. It should also be noted that the fiscal year date is not shown anywhere in the by-laws as I believe it should.

4. The annual meeting date this year has now been changed to occur on Nov 9, 2023 and the new fiscal year date will be 1-1-2024-12-31-2024. It appears to me that the HOA should have a 15 month budget for the members to approve this time, (10-1-2023-12-31-2024)????

5. Next year, the annual meeting should then be in Nov, 2024 assuming the fiscal will remain 1-1-xx -12-31-xx, correct??

Comments not required - simply background info


To rephrase: Budget approved for 12 months. Annual meeting held after approved budget ends and before new budget begins. Can the Association continue to operate for this short period of time (say 1 month) without an approved budget?

In my opinion, yes. Contracts have been entered into and must be paid. Discresionary monies should be minimized or (ideally) not spent. This of course can mean that repairs may be delayed.


I have not seen Statutes that require Bylaws to define a fiscal year.
If your States' applicable corporate code is silent on the issue, then regardless of what you believe, the Bylaws would be in compliance with the statutes.


Technically, you are probably right.
However, I expect assessments are set annually and there is that limitation.

In reality, fiscal years are mainly for establishing the annual assessment and for tax purposes.
Budgets are guidelines and not absolutes.


Without reading your governing documents or researching applicable statutes, nobody can really say for sure.

My Association holds our annual meeting in September but the new board doesn't take their seats until January.
My previous Association held their annual meeting in October, technically took over at the end of the meeting, didn't meet until November and the fiscal year was Jan-Dec.

Jerry

It is rare that owners vote on budget approval. There typically are methods for owners to turn down budgets but not to have to approve them. We operate on a calendar year and hold our Annual Meeting in April which unless we raised the dues, it is the first time our owners see the budget. Of course we would give it out if requested but no one ever has.

Our BOD can raise dues any amount but must notify owners via presenting the new budget on or before 12/01 and it goes in to effect on 01/01. A majority OF ALL OWNERS could turn the budget down and if so, there is an automatic increase of 5%.

Personally I would hate to be in an association where owners have budget approval especially when there is a dues increase included. The "old folks on a fixed income" would be all over it.....LOL