Condo Q&A

Disappearance Of HOA Income Into Thin Air

Written by CondoAssociation.com | Thu, Feb 15, 2018 @ 10:18 AM
Our Board adopted our 2018 Budget in December 2017.
And an annual income budget item in it was identified as $4,320. However, it should have been $6,480, and unit owners started to send in their assessments for that income budget item at a rate of $45.00 per month.

It follows that at the end of 2018, unit owners will have paid in $6,480 as income but only $4,320 will have been recorded as income in the 2018 Audit so as to agree with the income of $4,320 identified in the 2018 Budget. And effectively $2,160 will have disappeared into thin air.

And my questions are "Where could the $2,160 be found in financials or whatever?" And "Should our 2018 Budget be amended and how?" And "Who will be at fault - our management company, or our Board that adopted the 2018 Budget?"