Operating Fund Surpluses
How does condo corp access surplus operating funds? We need to defer budgeted project to next fiscal year. The expenses were budgeted in current year but we are not able to complete the repairs & maintenance within current budget year but will be done in upcoming fiscal year. Since we’ve already collected contributions, I feel we cannot collect again in next fiscal year.
As a resident, unhappy that I’m paying almost 3 additional months of contributions but services are not received and surpluses of almost 10% of annual budget are being generated.
I agree with a surplus for cash flow (paying insurance up front vs financing charges) but a very large fund is being accumulated with high potential for abuse by future boards to spend on ‘pet projects’ and ignoring stakeholders.
Also, our reserve fund is lower than anticipated – how can we top up the reserve fund from surplus operating funds? Can & how can we move accumulated surpluses (retained earnings?) into the reserve fund to top up?
Hope someone can help – I hate to have to ask for funds for accountant advice…
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