Structure of the condominium financial report (Art. 1130-bis)

The condominium financial report is the document through which the condominium manager accounts for the year's management to the owners. Article 1130-bis of the Italian Civil Code establishes that it is made up of three inseparable parts: the accounting register, the financial summary and the explanatory note on the management, indicating ongoing relationships and pending matters. It is therefore not a simple expense sheet but a precise structure, and the absence of one part can make the report incomplete and the approving resolution vulnerable to challenge.

Why the structure is set by law

Before the 2012 reform introduced by Law 220/2012, the report had no standard form and each manager used a different layout. Article 1130-bis imposed a mandatory minimum content precisely to guarantee each owner concrete and effective knowledge of the accounting elements. The rule does not require the form of a company's statutory financial statements, but it does require entries to be expressed in a way that allows immediate verification by every participant.

The accounting register

The accounting register records each incoming and outgoing movement in chronological order, within thirty days of the day on which it occurs. It is the analytical snapshot of the cash position: date of the operation, amount, description, counterparty. For each entry it must be possible to trace the supporting document, that is the invoice, receipt or bank statement. The register accounts for the actual flow of money and forms the basis from which the other two parts of the report are built.

The financial summary

The financial summary, also called the statement of financial position, sums up the condominium's standing at year end. It contains cash on hand and in the bank account, receivables from owners for instalments still due, payables to suppliers for unpaid invoices, any cash fund and the reserves set aside. Its purpose is to show, in a single view, whether the condominium closes in balance, with a surplus or with a deficit, and which relationships remain open as the next financial year begins.

The explanatory note

The explanatory note is the narrative part of the report. It explains in words what the numbers alone do not clarify: how the management went, the choices made, works in progress, pending disputes, significant arrears and legal relationships not yet concluded. It is the tool that connects the register and the summary, making the overall meaning of the year understandable to an owner who is not an accounting expert. Omitting it deprives the owner of information that is relevant to casting an informed vote at the meeting.

A mixed cash and accrual system

The combination of the three parts reveals the nature of the report: a mixed system between the cash basis and the accrual basis. The accounting register follows cash, recording actual receipts and payments; the financial summary introduces accrual elements, showing receivables and payables that have arisen but are not yet settled. This combination makes it possible to know not only how much came in and went out, but also to whom each item economically belongs.

• Accounting register: chronological incoming and outgoing movements, with reference to supporting documents.
• Financial summary: availability, receivables, payables, funds and reserves at year end.
• Explanatory note: description of the management, ongoing relationships and pending matters.
• The three parts must be read together: they are complementary, not alternatives.

What happens if a part is missing

A report lacking one of the components required by Article 1130-bis is incomplete. The practical consequence concerns approval: a resolution approving an incomplete report, for example without the explanatory note or the financial summary, can be challenged by a dissenting owner because it does not allow the control that the law intends to guarantee. The formal regularity of the document is not a bureaucratic detail but the condition for the meeting's decision to be formed validly.

Building the report with management software

Drafting the three parts manually and keeping them consistent takes time and care. Management software generates the accounting register from the movements recorded during the year, automatically derives the financial summary and provides a space for the explanatory note, reducing the risk of inconsistency between sections. The owner can then consult the complete document online before the meeting.

AmministraPro produces the report in the three parts required by Article 1130-bis from the accounting data entered, with links to supporting documents and sharing in the owners' reserved area. You can see how it works on the features page or review the plans in the pricing section.