Financial Statements

Under the Strata Property Act, SBC 1998, c. 43, strata financial statements are the annual income-and-expense report prepared by the strata corporation summarizing actual revenue and expenses for the fiscal year against the approved budget, together with the closing balance of the contingency reserve fund (CRF) and any special-levy accounts. The Strata Property Act requires the strata corporation to maintain these statements as part of its official records and present them to owners at the annual general meeting. Verify current requirements under the Strata Property Act and Strata Property Regulation with a BC lawyer or notary before acting.

The Strata Property Act, SBC 1998, c. 43, does not mandate that all strata financial statements be audited by a professional accountant; whether the statements are internally prepared, reviewed, or audited is determined by the strata corporation's bylaws or by an owner resolution passed at a general meeting. Common practice is for smaller strata corporations to present unaudited or review-engagement statements, while larger corporations may choose or be required by bylaw to obtain an audit. Verify your strata's specific bylaw requirements or resolution history with your strata council or a BC lawyer before acting.

Under the Strata Property Act, SBC 1998, c. 43, the strata corporation must present the financial statements to owners at the annual general meeting (AGM), which must be held at least once per calendar year. The strata council typically distributes the financial statements in the notice package sent to owners in advance of the AGM. Verify your strata's AGM schedule and notice requirements under the Strata Property Act and your strata's bylaws with a BC lawyer or notary before acting.

Yes. Under the Strata Property Act, SBC 1998, c. 43, and the Strata Property Regulation, the Form B Information Certificate package disclosed to a prospective purchaser must include the most recent financial statements prepared by the strata corporation. This disclosure allows a buyer to review the strata's fiscal health, reserve-fund balance, and budgeted versus actual expenses before completing a purchase. Verify the contents of a specific Form B package with a BC lawyer, notary, or the strata corporation's records custodian before acting.

The contingency reserve fund (CRF) is a mandatory savings account required under the Strata Property Act, SBC 1998, c. 43, to be maintained by every strata corporation for major repairs and replacements. The financial statements must disclose the closing balance of the CRF as of the end of the strata's fiscal year, showing owners how much has been accumulated for future capital expenditures. Verify the adequacy of a specific strata's CRF balance against a current depreciation report with a BC lawyer, notary, or qualified building-envelope professional before acting.

Yes. Under the Strata Property Act, SBC 1998, c. 43, financial statements are part of the records the strata corporation must maintain, and owners (and authorized agents such as prospective purchasers) have a right to inspect or request copies of strata records, subject to reasonable fees and procedures set out in the Act and Regulation. An owner may make a written request to the strata corporation for copies of the most recent financial statements at any time. Verify the current inspection and copy-fee rules under the Strata Property Act and Strata Property Regulation with a BC lawyer or notary before acting.

The Strata Property Act, SBC 1998, c. 43, and the Strata Property Regulation require the financial statements to compare actual revenues and expenses for the fiscal year against the approved budget, but the level of detail for expense categories is not rigidly prescribed by statute. Common practice is to itemize expenses by category (e.g., utilities, insurance, maintenance, management fees, and contributions to the CRF) in a manner consistent with the approved budget format presented at the previous AGM. Verify the specific reporting format and level of detail required by your strata's bylaws or standard accounting practices with a BC lawyer, notary, or qualified strata accountant before acting.

Yes. Under the Strata Property Act, SBC 1998, c. 43, if the strata corporation has approved a special levy to fund a specific project or expense, the financial statements should disclose the balance of any special-levy account separately from the operating fund and the contingency reserve fund. This allows owners and prospective purchasers to see how much has been collected and spent for the designated purpose. Verify the treatment of a specific special levy in your strata's financial statements with a BC lawyer, notary, or the strata's accountant before acting.

Under the Strata Property Act, SBC 1998, c. 43, the strata council is responsible for ensuring that the strata corporation's financial statements are prepared and presented to owners at the annual general meeting. The council may prepare the statements internally, engage a bookkeeper, or hire a professional accountant to perform a review engagement or audit, depending on the strata's bylaws, size, and owners' preferences. Verify the preparation responsibilities and any professional-engagement requirements in your strata's bylaws or council resolutions with a BC lawyer or notary before acting.

The Strata Property Act, SBC 1998, c. 43, and the Strata Property Regulation require the strata corporation to maintain records, including financial statements, but do not specify an exact retention period for every document type in the Act itself. Best practice, informed by general corporate-record retention standards and the need to support historical budget and reserve-fund analysis, is to retain annual financial statements indefinitely or for a minimum period set by the strata's bylaws or record-retention policy. Verify your strata's specific record-retention obligations under the Strata Property Act, Strata Property Regulation, and applicable bylaws with a BC lawyer or notary before acting.