Explaining The Condo Budget

Condo owners are provided with financial statements and a budget each year, but many may not understand them. Condo boards should make an effort to explain key financial data in a clear and concise manner. This should include information on condo fees, reserve fund balances, major expenditures and planned changes to amenities and social programming. It is important to be transparent and avoid spinning the data or making inferences about the overall financial status of the corporation. The budget should be communicated using all available communication methods, both electronically and in hard copy, and made as public as possible to avoid confusion or skepticism.