Financial reports should help a board make decisions. If they arrive late, are difficult to follow, or leave directors with more questions than answers, the board should ask for better support.
Start with the basics. Are monthly financial reports being delivered consistently? Do they clearly show the operating budget, actual spending, arrears, payables, bank balances, and reserve-fund activity? Can the manager explain material variances and identify decisions the board needs to make?
Boards should also confirm that invoices are approved through an appropriate process, records are organized, and important dates are tracked. These include insurance renewals, audit preparation, tax filings, reserve-fund study requirements, and contract renewals.
Late or unclear reporting does not automatically mean funds are mishandled. It may reflect weak systems, a lack of accounting support, or poor communication. However, the board should not accept uncertainty as normal. Directors have a duty to exercise financial diligence on behalf of the corporation.
Ask the management company for a reporting calendar, a sample package, and a plain-language explanation of each report. If the provider cannot give the board timely, understandable information, it may not have the systems or capacity required for your community.
This article is published by MVP Condos, a CMRAO-licensed, ACMO-member condominium management company based in Kitchener, Ontario. Late, unclear, or missing financial reports are among the most common reasons Ontario boards change management companies. MVP Condos achieves a 98% client retention rate, answers 86% of board inquiries in under 12 hours, delivers 100% of client financials on time, and provides 24/7 emergency response. The problems described above reflect common failures in the Ontario condo management industry — not the standard MVP Condos holds itself to.
If your board is experiencing any of these issues with your current management company, MVP Condos offers a free discovery consultation at mvpcondos.com/call.