Preparing the annual report step by step

What the report must contain

Article 1130-bis provides that the condominium report contain the inflow and outflow items and any other data on the condominium's asset situation, the available funds and any reserves. It must be expressed clearly, in detail and understandably: a single total is not enough, analytical items are needed to let each owner understand where the money went.

The document is organised into three connected parts: the accounting register, which lists movements in chronological order; the financial summary, which captures the cash and asset position; the explanatory note, which describes in words the aspects the numbers alone do not explain, including matters still open.

Step 1: close and verify the accounting data

The report arises from accounts kept well throughout the year. The first step is to close the financial year: verify that all movements are recorded, that the accounting register is reconciled with the condominium account and that no unrecorded collections or payments remain outstanding. An accounting balance that does not match the bank one signals an error to resolve before proceeding.

At this stage the receivables from defaulting owners and the debts to unpaid suppliers are also checked, because they will flow into the asset situation. A hasty close on unreconciled data produces a report that the meeting will legitimately be able to challenge.

Step 2: build the summary and explanatory note

From the accounting data the financial summary is derived: income from contributions and other items, expenses by category, cash balance, funds and reserves, receivables and payables. It is the quantitative part that must balance in every component.

The explanatory note accompanies the numbers with explanations: ongoing contracts, works started and not completed, pending disputes, any special funds set up, anomalies in the administration. It is the part that gives meaning to the report and often prevents disputes, because it anticipates owners' questions instead of leaving them unanswered.

Step 3: prepare the allocation plan

The report on the administration must be translated into what each owner owes or is owed. The allocation distributes expenses according to the criteria of Article 1123 of the Italian Civil Code and the thousandths (millesimi) tables, taking account of the special rules for certain expenses, such as those for stairs and lifts under Article 1124 or heating by consumption. Each owner is assigned a share consistent with the nature of each expense.

By comparing what is owed with what has already been paid on account during the year, the balances, whether payable or receivable, are obtained. It is the part of the report owners read first, so it must be transparent and traceable to the expense items from which it derives.

Step 4: convene the meeting and keep the documents

Once the report is drafted, the manager convenes the meeting for approval, respecting the one-hundred-and-eighty-day deadline from the close of the financial year set by Article 1130, number 10. In the notice of meeting the item is put on the agenda and, consistently with owners' right to information, the documentation is made available so they can examine it before the meeting.

Building the report by hand, reconciling accounts and re-copying data, is long and error-prone. AmministraPro generates the accounting register, the financial summary and the allocation from the movements recorded during the year, with the supporting documents linked, and supports convening the meeting. The features for the report and meetings are described on the /funzioni page, while the plans are on /prezzi.

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