![]() ![]() Although budgets are typically approved at annual meetings occurring in either November or December, there are many considerations that must be addressed before then. It is recommended that the budget process begin early in the third quarter. The budget committee, as appointed by the Board of Directors, and, ultimately, the Board itself, is responsible for the adoption of the association’s annual budget. Generally, the community association manager (CAM) is charged with the responsibility for preparing the preliminary draft of the budget and presenting it to the budget or finance committee for its review and approval. The requirements for the preparation of the annual budget for condominium associations are set forth in Section 718.112 (2) (f) FS and for homeowners’ associations, in Section 720.303 (6) FS. Who Is Responsible for Preparing the Budget? If, on the other hand, there are substantial variances between the budgeted and actual expenses, this may suggest that the budget was poorly prepared and/or the association’s operations were poorly monitored. If actual expenses approximate those budgeted, it is perceived that the budget was well thought-out and the financial management of the association was effective. ![]() The budget is the benchmark by which an association’s results of operations are measured. The annual budget requires considerable effort and is, in essence, a financial plan for the upcoming year. As community association managers, board members and unit owners are aware, condominium and homeowners’ associations (HOAs) are required by Florida Statutes (FS) and, generally, by the association’s by-laws, to prepare annual budgets.
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