The statement of financial position in the condominium report

The statement of financial position, also called the financial summary, is one of the three parts of the condominium financial report required by Article 1130-bis of the Italian Civil Code. While the accounting register lists movements day by day, the statement of financial position offers their year-end summary: how much money is available, which receivables the condominium holds against the owners, which payables it owes to suppliers, and which funds and reserves have been set aside. It is the snapshot of the building's economic health at a given moment.

What the financial summary is for

The accounting register tells how much came in and how much went out, but that is not enough to understand the condominium's overall position. A condominium can hold plenty of cash and, at the same time, large debts to suppliers, or little cash but sizeable receivables to collect. The statement of financial position brings these elements together and shows the real picture, making clear whether management closes in balance, with a surplus or with a deficit, and which relationships remain open as the next financial year begins.

The main items of the statement

The items that make up the financial summary may vary in form, but in substance they describe the condominium's assets and liabilities at year end. Recurring items include liquid availability, receivables, payables, funds and reserves.

• Liquid availability: balance of cash and of the condominium bank account.
• Receivables from owners: instalments resolved but not yet paid in.
• Payables to suppliers: invoices received and not yet settled.
• Cash fund: sums set aside for ordinary management.
• Reserves and special funds: provisions for extraordinary works or an arrears fund.

Receivables from owners and arrears

Receivables from owners represent the sums resolved as charges on the participants but not yet collected. It is a delicate item because it contains the arrears. A transparent statement of financial position distinguishes between instalments not yet due and overdue instalments, so that the meeting can assess the size of the problem and decide recovery actions. Hiding or lumping the arrears inside a generic figure prevents the owners who are up to date from understanding the risk to which the common cash is exposed.

Payables to suppliers

On the opposite side are the payables to suppliers: services received during the year but not yet settled at the closing date. This item too is essential to understand the condominium's real position. An apparent cash surplus may conceal debts to the cleaning company, the lift maintenance firm or the energy supplier. A correct statement of financial position reports these commitments, so that the actual surplus or deficit emerges from comparing what is owned with what is owed.

Funds and reserves

Funds and reserves are sums set aside for specific purposes. The fund for extraordinary works, for example, must be created when the meeting resolves extraordinary maintenance or improvements, as required by Article 1135 of the Italian Civil Code. The statement of financial position highlights these provisions, keeping them separate from ordinary cash: they are money tied to a purpose, not availability freely usable for current management.

How it links to the surplus or deficit

Comparing assets and liabilities yields the result of the management. If availability and receivables exceed payables, the condominium closes with a surplus; otherwise with a deficit. This result does not stay on paper: when approving the report, the meeting decides how to distribute the surplus among the owners or how to cover the deficit. The statement of financial position is therefore the starting point for the following year's economic decisions.

Reading the statement with software

Building a consistent financial summary requires keeping receivables, payables and availability aligned with the accounting register. Management software updates each owner's position in real time, tracks the invoices to be paid and automatically produces the statement of financial position, reducing the risk of forgetting an item or getting a balance wrong.

AmministraPro generates the report's statement of financial position by keeping receivables, payables, funds and availability up to date from the recorded movements, with a clear separation between ordinary cash and restricted provisions. You can see how it works on the features page or review the plans in the pricing section.