Condo Act Reform - #2 Financial Management: Educating and Informing Owners
This is the first of four posts addressing the suggestions made by the expert panel with respect to the financial management of condominiums in Ontario. Many of the suggestions address serious issues that cost owners millions of dollars each year, ranging from financial mismanagement to outright fraud and theft. This post will describe the suggestions made regarding the average owner's lack of education and information. The expert panel made various suggestions to ensure owners are better educated and informed in the area of financial matters. The suggestions are too numerous to list them all, but they include:
- An online course should be offered to owners on financial statements, common expenses, special assessments, and access to records;
- The ministry should create a guide that informs owners that they can requisition a meeting at any time;
- The auditors should be required to advise the owners if the board has approved the investment plan;
- The board should be required to notify owners of spending not within the budget, even if they do not require approval of the owners to spend the funds such as an ordinary repair; and,
- The owners should be informed that they can obtain insurance to cover deductibles charged back to them under the condominium's policy.