One of the condo board’s biggest responsibilities is managing the association’s budget. Depending on the size of the association, some of these budgets can be quite large, yet no matter the size of the budget, maintaining oversight of financial spending is imperative.
Condo Board’s Financial Disclosure Responsibilities
Condo board members must act as fiduciaries and make decisions that are in the best interest of the association. Maintaining transparency when it comes to budget decisions and spending is a requirement of any association board.
Here in Chicago, the Illinois Condominium Property Act (ICPA) stipulates broad rules and regulations for condo associations. Individual association bylaws may have more specific requirements. Always check your association’s covenants, conditions, and restrictions (CC&Rs) to review the financial reporting requirements for your condo association.
At the state level, the Illinois Department of Financial and Professional Regulation (IDFPR) governs the rights and responsibilities of association board members. It stipulates that each year, the board of managers must provide all condo association unit owners with an itemized accounting of the common expenses for the preceding year.
The itemization must indicate which portions were for reserves, capital expenditure or repairs, and real estate taxes. It must also show any amounts collected as part of a special assessment and calculate the net excess or deficit of income over expenditures plus reserves.
As a condo association board member, it’s incumbent upon you to maintain accurate financial records. Consider working with a condo association management company that can help you prepare budgets and financial statements. To learn more about how we at First Community Management can help your association, get in touch with our team today.