BUILD AN ACTIONABLE BUDGET

A BUDGETING CHECKLIST –

Schedule budget workshop meetings and budget adoption meeting

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Compare year-to-date figures on the most recent financial statements against the year-to-date budget

Review Contracts a. Contact vendors to assess expiring contracts and potential increases b. Obtain competitive bids, where appropriate

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Review Reservesa. Consider reserve expenses through year-end b. Confirm last reserve schedule is still applicable c. Hire a qualified firm to conduct a new reserve study, if necessary d. Make appropriate updates to reserve schedule

a. Analyze current year-to-date net income or loss

b. Consider monthly management reports c. Examine current financial statements

Review Expenses

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Review Utilitiesa. Examine how trends and seasonality affect usage b. Identify any increases in rates and negotiate,

if applicable

a. Meet with your insurance agent to i. Understand rate predictions, limits and deductibles ii. Confirm if/when coverage expires within the fiscal year iii. Ensure insurance appraisal reflects quotes iv. Receive quotes on new appraised value, if applicable

Review Insurance Coverage

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a. Consider preventative maintenance or recent repairs b. Analyze current and pending projects c. Understand special projects d. Consider any new legislation that may

require retrofits and improvements

Review Repairs and Maintenance

Review Other Sources of Income

Review Percentage of Ownership

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a. Draft a proposed budget b. Review list of homeowners and stakeholders to

ensure names and billing addresses are up-to-date

a. Make any necessary revisions and receive approval on budget

b. Take note of any returned mail due to being undeliverable

Distribute Proposed Budget to Homeowners and Stakeholders

Host Budget Meeting

a. Make any necessary revisions and receive approval on budget

Conduct Budget Adoption Meeting

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Preparing an effective annual budget will help you ensure the longevity and financial well-being of both your association and community. To learn more about budgeting and how a property management company can help, contact FirstService Residential.

DISCLAIMER: The budgeting process may differ based upon your local city, state or county laws. Ensure your budgeting process is compliant by referring to your association’s governing documents and local legislation.