Undocumented Expenses in the Condominium Report

An undocumented expense in the condominium report is an item that cannot be proven and is therefore easily challenged at the owners' meeting. Every recorded outflow must be backed by a document: invoice, receipt, payment confirmation, or contract. The manager has a duty to keep the accounting documentation and to allow owners to inspect it under Article 1130-bis of the Italian Civil Code. Undocumented items must be regularised before approval, otherwise they expose the manager to liability.

The value of the supporting document

The supporting document is the record proving that an expense was actually incurred, for what amount, and to whom. Without it, the accounting entry remains a mere assertion by the manager, with no objective backing. In case of a dispute, it is up to the manager to prove that the administration was correct, and that proof relies precisely on supporting documents. An undocumented item is, in practice, indefensible.

What counts as a supporting document

Not all documents carry the same weight, but several types are suitable to back an expense.

• Supplier invoice, with VAT number, description, and amount
• Tax receipt or itemised receipt for small purchases
• Payment receipt or transfer confirmation
• Contract or accepted quote for ongoing services
• Meeting minutes authorising a specific extraordinary expense

The retention duty

The manager must keep all accounting documentation relating to the administration and to ongoing relationships. The documents are not the manager's property but the condominium's, and on the end of the mandate they must be handed over to the successor. Destroying or losing supporting documents is a serious irregularity that can ground removal. For tax purposes, too, certain documents must be kept for the years required by tax law.

The owners' right to inspection

Article 1130-bis grants each owner the right to inspect and to take copies, at their own expense, of the documents supporting the expenses. The manager cannot deny this access but must make it possible in an orderly way, indicating place and time, without harming the administration. The right can also be exercised through a professional delegated by the owner.

How to handle undocumented items

If, while preparing the report, an expense with no document emerges, the manager must act to recover it from the supplier before presentation. If the document is unrecoverable, the item must still be declared transparently in the explanatory note, explaining the nature and reason of the expense. Concealing it or masking it within other items worsens the manager's position in case of a dispute.

Consequences at the meeting and in court

An undocumented expense approved by the meeting does not become legitimate for that reason alone: a dissenting owner can challenge the resolution within thirty days under Article 1137 if they consider the item unjustified. On the level of the mandate relationship, a manager who fails to give a documented account of the administration can be called to answer for the unjustified amounts. Documentation is therefore the first form of protection for the manager as well.

Document order with software

Linking every entry to its document from the moment of payment is the simplest way never to end up with uncovered items at year-end. AmministraPro lets you archive supporting documents alongside each transaction and make them available to owners in the reserved area, so access to documents becomes immediate and traceable. Discover the tools at /funzioni and the plans at /prezzi.