Hi Sydney1501,
I was inspired by your post to ask a panel of committee members their experience and thought I would share some of their practices:
- They start the budgeting process by the 3rd quarter (even sooner if possible) of the financial year.
- They ask the SM for excel output of the financials and to extrapolate the last quarter for budget purposes.
- In Vic there is not an office bearer called “Treasurer” but those on the call have appointed one.
- They then do essentially as you have done, check contracts for CPI adjustments, insurance outlooks, for admin fund, review contractors recommendations.
- They review the Maintenace Plan, Reserve fund, capital works or sinking fund for both anticipated work in the budget year and the balance of the fund.
- Once financial year end occurs, they confirm the actual figures of the last quarter.
- Proposed budget circulated and feedback from owners reviewed for both funds.
- Everything is finalised about a month out from the date of the AGM.
With respect to the deficit they all supported your position, absolutely fund the deficit and leave the loan as is.
Unfortunately, we ran out of time to discuss the governance aspect of how agreement is reached. But they all agreed it is a very important discussion and it is to be continued 🙂