A budget forecasts income and expenses for a period of time like a month, quarter, or year. It includes revenue from owner assessments and expenses in categories like general/administrative, utilities, maintenance, contingency, and reserves. Expenses represent the costs of goods and services for maintaining and running the community association. The total expenses in a proposed budget should balance out to have no net income or loss.

1. The CAM Tutor
WHAT IS A BUDGET:
A budget is a forecast, or plan, for
income and expenses for a period
of time (month, quarter or year).

2. It can be a calendar year
or a fiscal year. The
period is defined by the
association’s governing
documents.
The CAM Tutor

3. Revenue / Income
(Money IN!)
The revenue, or income, is from the
owners who pay monthly or quarterly
assessments.

4. Expenses
(Money OUT!)
The expenses are the cost of goods
and services needed for the
maintenance and administration of
the community association.

5. Expenses
(Money OUT!)
Some Basic Expense Categories
(Classifications) Are:
•General & Administrative Expenses
•Utilities
•Maintenance
•Contingency
•Reserves

6. Expenses
(Money OUT!)
G & A expenses are generally office related expenses. You may also want to
use this category for professional fees, IT expenses (computer repairs, etc.).

7. Expenses
(Money OUT!)
Utility expenses are can also include common bulk cable
and/or common electric car charging stations.

8. Expenses
(Money OUT!)
Maintenance expenses are for all the costs of the physical plant, the
aesthetics, and upkeep of the Association components.

9. Expenses
(Money OUT!)
Some Associations give themselves some breathing room and use a
contingency expense category for those “uh-oh” we did not anticipate
that expense items.

10. Expenses
(Money OUT!)
Although this IS AN EXPENSE and a liability, it represents a way to plan
for future expenses. You can think of this expense is like a “savings
account” that you must contribute to on a regular (monthly or quarterly)
basis.
*

11. Expenses
(Money OUT!)
The Total Expenses SHOULD show a 0.00 Net Income (Loss)
for the Proposed Budget!

12. The Proposed Budget!