Practical guide
Managing the year-end statement of a condominium
The year-end statement is the document through which the property manager accounts to the co-owners for how expenses were handled over the preceding twelve months. It is not a simple list of outgoings: Italian law under article 1130 bis of the Civil Code requires a statement made up of an accounting register, a financial summary and an explanatory note, prepared on a cash basis. A well prepared closing avoids disputes in the assembly, makes balancing payments transparent, whether owed or due back, and allows unspent sums to be correctly carried over to the following year. This guide walks through the operational steps needed to reach approval without surprises, and how tools such as AmministraPro can simplify the calculations and communication with co-owners.
The three mandatory documents of the statement
Article 1130 bis of the Civil Code establishes that the condominium financial statement must contain three distinct and complementary elements. The accounting register records every income and expense of the year in chronological order, with a description and date. The financial summary shows the condominium's financial position at year end, including amounts still owed by delinquent co-owners and debts to suppliers. The explanatory note, finally, is the document that makes everything else understandable: it explains in plain language the most significant expense items, the variances against the approved budget and the reasons for any significant changes.
Without any one of these three elements the statement is incomplete and can be challenged by a co-owner before a court. It is therefore worth preparing the documents well ahead of calling the assembly, so there is time to correct any material errors before the statement is put to a vote.
Allocating expenses among co-owners
Once the statement is closed, expenses must be allocated among co-owners according to the criteria set out in the condominium bylaws or, failing that, according to the ownership tables required by articles 1123 and 1124 of the Civil Code. General maintenance expenses for the building follow ownership shares, while expenses for stairs and elevators follow specific criteria linked to floor level.
For each co-owner, the difference must be calculated between the advance payments made during the year and what is actually owed based on the final statement: if the payments fall short, a balancing payment is owed; if they exceed the amount due, a credit arises that can be offset against future instalments or refunded. It is good practice to attach an individual statement to the report showing each co-owner's position, with payments made and the amount owed or due back.
Management software such as AmministraPro automates this calculation by applying the ownership tables loaded into the system, reducing the risk of manual errors when distributing expenses across multiple units.
Managing balancing payments and unspent funds
Balancing payments owed must be requested from co-owners with reasonable payment terms, usually set out in the same resolution that approves the statement. For co-owners who are behind on previous payments, the statement must separately show their outstanding position, so the assembly can decide on any debt recovery action.
Amounts paid in advance but not used during the year, as well as any leftover funds for extraordinary works not yet completed, must be carried forward to the following year. The carryover must be clearly shown in the financial summary, distinguishing between the ordinary cash fund and funds set aside for specific works, to avoid confusion with the current year's management.
Approval in the assembly and record keeping
The statement must be approved by the assembly with the majority required under article 1136 of the Civil Code for ordinary administration resolutions. Before calling the meeting, the property manager must make the accounting documentation available to co-owners, who have the right to inspect it and, at their own expense, obtain copies.
Once approved, the statement and supporting expense records must be kept together with the rest of the condominium documentation, accessible for future checks by co-owners or by a new manager in case of a change. Clarity at this stage significantly reduces the risk of disputes: platforms such as AmministraPro allow the statement and its attachments to be shared online with co-owners, with traceability of who has consulted the documents.
Frequently asked questions
What happens if the statement does not include the explanatory note?
The statement is incomplete relative to the requirements of article 1130 bis of the Civil Code. A co-owner can challenge the approval of the resolution before a court precisely because this element is missing, since it is meant to make expense items and variances against the budget understandable. Property managers should therefore always prepare all three documents required by law before submitting the statement to the assembly.
How is the balancing payment owed by each co-owner calculated?
It is calculated by comparing what each co-owner paid during the year based on budget instalments with what is actually owed according to the allocation of final expenses, applying the ownership shares or the specific criteria in the condominium bylaws. If the payments fall short of what is owed, the co-owner pays the difference; if they exceed it, the co-owner is entitled to a credit that can be offset against future instalments or refunded. Management software such as AmministraPro calculates this difference automatically for each unit.
Must unspent sums from the year be returned to co-owners?
Not necessarily as an immediate refund: they are normally carried forward as a credit into the following year, reducing the amount of future instalments owed by co-owners. An exception applies when the assembly decides otherwise, or when the sums were collected for a specific project that was cancelled: in that case it is worth having the assembly decide whether to refund them or allocate them to another approved use.
What majority is required to approve the statement in the assembly?
The management statement, being an act of ordinary administration, is approved with the majority of those attending representing at least half the value of the building at the first call, under article 1136 of the Civil Code. At a second call, the required majorities are lower. It is essential that the documentation has been made available to co-owners with reasonable notice before the assembly date.
Can a co-owner review the accounting documents before the assembly?
Yes, this is a recognized right: every co-owner can inspect the supporting expense documents and, at their own expense, obtain copies. The property manager must make this documentation available within a reasonable time before calling the meeting. Digital tools such as AmministraPro make this step easier, allowing co-owners to review the statement and its attachments online without needing to schedule an in-person appointment.
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