Definition : Forecast annual budget

Accounting document intended to evaluate the income and expenses necessary for the maintenance and management of the building for the next financial year, based on the amounts of previous years and anticipated developments. Presented in the form of a table, this document compiles, at the beginning of the accounting year, all the planned expenses of a co-ownership and the sums to be paid into the administration fund, the contingency fund and the self-insurance fund. However, if the expenses incurred in previous years are not representative of the real needs of the co-ownership, the estimated budget may be established on the basis of estimated data that may take into account other factors such as comparable data from surrounding buildings, the contingency fund study or the maintenance logbook. The estimated budget must be attached to the notice of calling for the annual meeting of the co-owners. Although article 1087 of the Civil Code of Quebec provides for this obligation only for the annual meeting, it is also required to attach  the provisional budget to the notice calling a special meeting. Remember that the board of directors shall consult the meeting of co-owners before deciding on any special contribution to common expenses.

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