The Budget is the most important document our Board reviews as it sets the tone for the upcoming year. I am President of a 111 unit co-op. We set aside 5 hours once a year on the first Saturday in December to review financial results from the current year, review budget strategy, set fees, approve any maintenance increases (we didn’t have any this year), review investment strategy and approve any assessments (our first one this year of 2.5% of maintenance). We also use the time to pass on the financial culture to any new Board members: not to stifle any suggestions but to give them a perspective from where the building is coming.

We are not a wealthy population however as of our December 3rd Busget meeting, we had:
• $45k in our operating account;
• $80k in mandatory mortgage reserves;
• And $714k in voluntary reserves and self-escrows.

To put this into perspective, out annual maintenance billings are $855k. We would have never had this level of success unless we planned for it ahead of time.

Who does the Budget? I do. It is done by month so we know how bad the lean times are: how much cash we need to have to which begin the heating season. I feel strongly that the Board is responsible for knowing the details of the finances and then the Board is in a better position to tell the management company what the goals are for the year.

In our building, the Board approves the Budget.

I hope this helps!