What if the Condominium Authority of Ontario (CAO) operated similarly to condominium corporations they oversee?
For those not yet familiar with the Condominium Authority of Ontario, they provide resources and information for condo owners, residents, managers and directors. They mandate procedures the community must adhere to. CAO is self-funded through a monthly fee paid by all condo owners, adheres to government legislation and follows their directives, and is a not-for-profit organization.
Each year CAO publishes financial statements. Budgets and financial statements are central to providing condo owners with information required to evaluate their condominium corporation and board of directors. The former treasurer of a condominium corporation reviewed CAO’s financial statements.
Condominium owners fund the CAO directly through a mandated monthly fee and indirectly through costs of compliance. When reviewing their own financial statements condo owners want confidence their corporation is operating efficiently and at its lowest practical cost. It is reasonable to expect CAO to operate at its lowest cost and to minimize costs it imposes on condominium corporations.
Information comes from CAO Financial Statements for the year ending March 31, 2018. Key numbers for review are presented with explanation and comments that could be posed by condominium owners had they attended CAO’s Annual General Meeting.
Start Up Funds
Computer Software Value
This appears to be proprietary software developed by CAO for its use.
While such a large expenditure on software development may seem reasonable to a government agency, it is beyond what appears necessary for comparable functionality in the private sector.
Primarily fees charged to condo owners.
Salaries for employees.
As with the initial software development expenditure, this appears excessive by private sector standards.
Information and communication
Having invested in technology for communicating with its constituency and considering the lack of communication during the year, this expenditure is difficult to rationalize.
Condo authority tribunal and members
Board of Directors remuneration and expenses
Condo communities typically require directors to serve without compensation.
Excess of Revenues over Expenses
Profit earned by the CAO.
Improvement from the prior (first) year deficit of $414,044.
Cash at End of the Year
From Statement of Cash Flows.
An increase over the $2,890,261 from the previous year.
Had such a budget been presented to condo owners at an Annual General Meeting opposition would have been intense. Regardless of bottom line profitability, there are areas where costs appear exceptionally high without explanation. Condominium Authority Tribunal revenues failed to cover its expenses and have been hidden in notes rather than reported separately. Directors could likely have been replaced at a requisitioned meeting and new directors with a more practical mindset elected. Management could have been replaced.
Click here to access CAO Financial Statements.