Budget plan and annual statement
These two calculations belong to the community of apartment owners, not to a tenancy. The budget plan says in advance what each owner should pay; the annual statement establishes afterwards what actually occurred.
Why this is not the same calculation as the operating cost settlement
Both spread costs over the same distribution keys – that is the shared core. The flow is different though: the operating cost settlement splits the share of a unit day exact between the tenancies that occupied it. A community of owners has no tenancies, and the owner does not change during the year but with the land register.
Budget plan
The budget plan works out what each owner has to pay per year and per month.
- The planned costs of the year are spread per item over their distribution key onto the units.
- Per owner this yields the annual amount.
- The monthly amount is derived from it.
A community spreads costs by the same measures as a landlord – only onto owners instead of tenants.
Annual statement
The annual statement puts the actual costs of the year against what the owners have paid.
It is calculated against what was paid, not against what was charged
This is the difference that surprises most often: an owner who did not pay for three months receives a correspondingly higher payment due – their arrears do not disappear in the statement, they show up in it.
What steers it
| What | Where |
|---|---|
| Units with area and co-ownership share | unit |
| Property and building | property · building |
| The distribution keys | service charges |
| Management contracts of the community | management |
What can go wrong
An owner is missing from the calculation
Their unit has no value for the key being used – usually the co-ownership share is missing. Without a base value no share can be formed.
The payment due is higher than expected
It is calculated against what was actually paid. Arrears from the year raise the amount due – see the note above.
Budget plan and annual statement differ considerably
That is the normal case and their purpose: the plan is a forecast, the statement an establishment of fact. Large differences point to a cost item that was set too low in the plan – not to a miscalculation.