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Home COFSAB Forum Finances Meaning & Purpose of a Condo Unrestricted Fund Reply To: Meaning & Purpose of a Condo Unrestricted Fund

  • Karen

    Administrator
    April 10, 2022 at 10:00 am

    GibsonT

    We have to remember that the condominium Board of Directors is the only authority that can spend money on behalf of the corporation.  While it may be wise for them to consult with / ask owners for advice on some spending issues, they are the only authority and are not required to get that feedback.

    Possibly the best way to proceed, is to place a question at the next AGM or SGM of the Treasurer/Auditor, who will know more about the general expenditures of the corporation.

    While the Condominium Property Act only mentions the 3 headings you quote, it can be wise planning for a Board to have other ‘reserve like’ accounts.

    For example, with insurance deductibles frequently in the $50-100K range, a wise Board might consider establishing an insurance reserve.

    Remember too that special assessments/levies frequently come from events that you cannot plan for – in which case having some contingency reserves makes pretty good sense, in my opinion.