Key Documents Required to Assist an Interim Board
Financial Records Required
A condominium manager must collect all financial records from the developer and verify their completeness. The key documents include:
Financial Statements – Including income and expense reports, balance sheets, and bank statements.
Reserve Fund Study & Plan – To confirm compliance with long-term financial planning requirements.
Budget & Operating Fund Details – Ensuring the corporation can cover maintenance costs and liabilities.
Auditor Reports – If applicable, to validate financial accuracy.
Governance Documents Required
Bylaws & Rules – To understand board powers, voting rights, and owner responsibilities.
Board Meeting Minutes – To track past decisions and ensure procedural consistency.
Service Agreements & Contracts – Identifying obligations to third-party service providers.
A condominium manager must apply CPA requirements to confirm these documents are present and properly recorded.
Analyzing Financial Documents & Reserve Fund Compliance
Financial Statements Review
The condominium manager and interim board must analyze the following:
Operating Budget vs. Actual Expenses – Checking for discrepancies in planned vs. real spending.
Income Sources – Confirming owner contributions and other revenue.
Outstanding Liabilities – Reviewing unpaid invoices or debts.
Reserve Fund Analysis
The CPA requires condominium corporations to maintain a reserve fund to cover major repairs and replacements. A condominium manager should:
Ensure the reserve fund study was conducted within the required timeframes.
Assess whether the fund balance is sufficient based on projected expenses.
Confirm that contributions are being collected and allocated as per CPA requirements.
Any deficiencies must be documented and presented to the interim board for corrective action.
Evaluating Interim Board Compliance with CPA Requirements
Key CPA Compliance Areas for an Interim Board
Interim boards must meet financial and governance obligations, including:
Holding an AGM within the CPA-mandated timeframes.
Following the bylaws and rules for decision-making and voting.
Ensuring accurate financial record-keeping and disclosure.
Maintaining the reserve fund and making necessary contributions.
Assessing Non-Compliance & Taking Action
If a condominium manager identifies CPA violations, they must:
Report concerns to the board with supporting documentation.
Advise on corrective steps to bring the corporation into compliance.
Escalate serious breaches to regulatory authorities if necessary.
Key Legal Requirement
According to the CPA, an interim board must maintain a reserve fund for future repairs and replacement of common property. A failure to do so may result in financial instability and legal consequences.
