Practical guide
How to prepare the explanatory note of the statement
The explanatory note is one of the three mandatory documents of the condominium financial statement, but it is also the one managers most neglect, often reduced to a few generic lines or even omitted. That is a mistake, because it is precisely the note that turns a list of figures into an understandable account of the management, reducing disputes at the meeting. Article 1130-bis of the Italian Civil Code requires it expressly, including an indication of ongoing relationships and pending matters. This guide explains, from the manager's point of view, what a well-made note must contain, how to structure it and which information cannot be missing to make the statement truly transparent.
What the explanatory note is for
The explanatory note has a precise function: to explain in words what the accounting register and the financial summary cannot communicate on their own. The figures say how much was spent and collected, but not why an item changed, which contracts are ongoing or which problems remain open. The note fills this gap.
The law requires it to guarantee owners concrete rather than merely formal knowledge of the management. A well-written note anticipates the meeting's questions, demonstrates the manager's diligence and reduces litigation, because it makes clear the choices and situations that would otherwise have to be reconstructed from the accounting tables alone.
The management trend and deviations from the budget
The first block of the note describes how the management went compared with the forecasts. Here you explain significant deviations between budget and final accounts: an item that grew because of a tariff increase, an unexpected expense for a breakdown, a saving obtained by renegotiating a contract. The aim is for the owner to understand why the final accounts differ from the budget approved the previous year.
It helps to justify deviations with concrete data, not vague formulas. Writing that the heating expense rose because of the increase in fuel cost, indicating the order of magnitude, is more effective than a generic cost increase. Transparency on deviations is what distinguishes a substantial note from a token one.
Ongoing relationships: contracts, suppliers, engagements
The provision expressly requires the indication of ongoing relationships. In the note you should list the active contracts with service suppliers, such as cleaning, elevator maintenance, heating, insurance, indicating the duration and any expiries or renewals expected in the following year.
This part matters because it photographs the commitments the condominium has taken on and that will weigh on future management. An owner reading the note must be able to understand which obligations are in place, when they expire and whether there are contracts close to renewal that the meeting will have to assess. Indicating ongoing relationships is also a form of continuity in case of a future change of manager.
Pending matters: lawsuits, arrears, open works
The other element expressly required is the indication of pending matters. These include ongoing civil lawsuits, with their subject and the state of proceedings, significant arrears and recovery actions started, extraordinary works resolved but not yet completed, and open tax or building files.
Describing pending matters protects the manager and informs owners about risks and commitments that do not emerge from the cash figures alone. A significant arrears position, for example, affects the condominium's liquidity even if the receivable is recorded in the financial summary: the note explains the context, the amount and the actions taken, allowing the meeting to resolve with awareness.
How to structure and draft the note in practice
An effective note follows an orderly structure: summary of the trend, deviations from the budget, situation of funds and reserves, ongoing relationships, pending matters. The language must be clear and direct, without unnecessary technical terms, with concrete amounts and references. A few precise lines are better than pages of generalities.
A management platform like AmministraPro helps prepare the note because it keeps budget, final accounts, contracts and files linked, so that deviations and ongoing relationships emerge from data already recorded rather than having to be reconstructed by hand. On /funzioni you can see how the statement and documents integrate, while /prezzi describes the plans for individual managers and firms. The note nonetheless remains a text the manager writes under their own professional responsibility, on the basis of the information gathered during the year.
Frequently asked questions
Is the explanatory note mandatory by law?
Yes. It is one of the three documents Article 1130-bis of the Italian Civil Code requires for the condominium statement, together with the accounting register and the financial summary. The provision expressly states that the note must illustrate the trend of the management and also indicate ongoing relationships and pending matters. Its absence makes the statement incomplete and can be grounds for challenging the resolution that approves it.
What should I write under ongoing relationships?
You should indicate the active contracts with service suppliers, such as cleaning, elevator maintenance, heating and insurance, with their duration and the expected expiries or renewals. This part photographs the commitments the condominium has taken on that will affect future management. It helps owners understand which obligations are in place and when they expire, and ensures continuity of information also in case of a future change of manager.
Which pending matters should be reported in the note?
You should indicate ongoing civil lawsuits with their subject and state of proceedings, significant arrears and recovery actions started, extraordinary works resolved but not yet completed, and open tax or building files. Describing these situations protects the manager and informs owners about risks and commitments that do not emerge from the cash figures alone, allowing the meeting to resolve with full awareness of the context.
How long should the explanatory note be?
There is no length fixed by law, which requires a synthetic note, that is, concise but complete. The aim is substance, not the number of pages: a few precise lines, with concrete amounts and references, are better than long, generic texts. An effective note covers the management trend, deviations from the budget, the situation of funds and reserves, ongoing relationships and pending matters, in clear and direct language understandable even to owners who are not accounting experts.
How do I justify deviations between budget and final accounts?
Explain significant differences with concrete data rather than vague formulas. If the heating expense rose, indicate the cause, for example the increase in fuel cost, and the order of magnitude of the deviation. If you obtained a saving, explain how, for example by renegotiating a contract. Transparency on deviations is what distinguishes a substantial note from a token one and reduces disputes at the meeting, because owners understand the reasons for the variations.
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