Navigating Your Way Through
Condominium Financial Statements
and their Components
HER Management provides professional, full-service financial management and accounting services for all our managed Corporations. Our financials are prepared monthly and made available to all Board members through our online portal.
Banking: In accordance with the Condominium Property Act of Alberta, each condominium Corporation's funds are deposited in separate bank accounts, owned by the Corporation. Only your funds are processed through that account.
Budget: We prepare an annual proposed operating budget prior to each fiscal yearend for the Board’s review and approval. All budget items proposed are supported by an explanation and a description of last year's expenditures and anticipated expenditures for the upcoming year. The Board and the Manager will review these numbers and finalize the budget, which is then sent to all owners, on behalf of the Board, prior to the yearend.
Fidelity Bonding: To ensure complete safety of the Corporation’s funds, a fidelity bond covering the funds in our care is procured. This bond is under complete control of the Board. A fidelity bond is a form of insurance protection that covers the Corporation for losses that they could incur because of fraudulent acts by specified individuals.
Financial Reports: Each month the following documents are made available to the Board of Directors:
States the amount of the Corporation’s assets such as bank accounts and investments, prepaid expenses and delinquent accounts, as well as liabilities, monies owed by the Corporation.The Balance Sheet is a summary of the Corporation’s financial position.
Statement of Income Lists the income and the expenses in comparison to the annual and monthly budget for all budget posts. When reviewing, we recommend that you concentrate on the variances, will help identify expenses larger than budgeted for or deferred maintenance.
Lists of Delinquent Accounts Lists all the Owners’ accounts in arrears and the amount of same, stating the age of the outstanding amounts and the what they are for.
General Ledger Lists of all the transactions processed for the current month presented by budget posts.
List of Accounts Payables Lists the invoices that have been received but not yet paid
Reconciled Monthly Bank statements This report reconciled the transactions have gone through the bank accounts with what has been received and paid during the course of the month.
Statement of Reserves This report summarizes all the transactions that have been coded to Reserves. It is especially helpful when the Reserve Fund Study is being updated.
Pre-Authorized Debit (PAD): PAD is a convenience that is available to Owners who want automatic withdrawal of their monthly contributions from their bank account. It is an easy and safe way to make your monthly payments. Simply fill out a PAD form and return it to your Manager with a void cheque to get started. PADs are processed on the 1st day of each month. PAD declined by the Bank are treated like NSF cheques and subject to a $50 charge.
Reserve Funds: As mandated by the Condominium Property Act of Alberta, the Reserve Funds must be segregated from the operating (maintenance) funds. The only expenses that can be drawn from Reserves are those budgeted for in the Reserve Fund Study, with the exception of non-recurring large expense that must be made to maintain the serviceable life of a capital item.
Should you have any questions, please feel free to contact the undersigned at 403-620-0586
Nathalie Skyrie, CPM®, ARM®
Senior Condominium Manager