Preparing the Association Budget 101

Preparing the Association Budget 101

Adopting the budget is a crucial initiative for the Board of Directors. A budget is created to ensure that finances are properly accounted for and to serve as the basis for homeowner assessments.

During this webinar, we walk board members through the entire process of preparing the budget.

Summary of the full webinar:

1. Reviews the 3 parts of a budget:
   1. Funds needed for daily operation
   2. Funds needed for reserves
   3. Funds for additions or enhancements
2. Walks through preparing a proposed budget:
   1. Gathering information of current income/expenses
   2. Review reserves and upcoming projects
3. Determining assessments based on expenses projected – what is affordable and allows for expenses to be met
4. Creating a budget draft – Lists the general categories of the budget
5. Distributing and voting on proposed budget:
   1. budget is voted on typically at the annual meeting for the next year’s assessments.