I recently received the financial statements for upcoming AGM for one of my condo corps. The auditor's report shows that the reserve fund is significantly underfunded. I'm sure this isn't a good thing. What steps do other readers recommend?
Reserve Fund for Condo
- Thread starter Caasi
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Budget for it as there will be a special assessment to catch up with lack of reserves.
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I agree with Alvaro, that is a huge possibility!
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It may not be as bad as it seems. In some cases, major repairs are done in advance of the reserve study requirements, meaning the reserve fund is depleted ahead of schedule but that major repair is done and won't require the funds at the scheduled time.
For example: a $200k roof replacement may be scheduled for 2020 but was done last fall. This would make the reserve fund look as though it was $200k short when compared to the reserve plan.
That being said, it is likely the auditor would have caught that, so Alvaro's suggestion is probably applicable. The cause of the shortfall must be found and rectified, if required.
For example: a $200k roof replacement may be scheduled for 2020 but was done last fall. This would make the reserve fund look as though it was $200k short when compared to the reserve plan.
That being said, it is likely the auditor would have caught that, so Alvaro's suggestion is probably applicable. The cause of the shortfall must be found and rectified, if required.
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Condo corps can waive this top up requirements. Special assessment may happen if major repair is needed but that may be a decade away.
What province is this as laws differ ?
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What province is this as laws differ ?
Sent from my iPhone using myREINspace