Besides managing the operation of the building, the Management Committee also has to prepare a financial budget every year, listing estimated expenditure items so that the management fees paid by residents are utilized efficiently and reasonably. InVietnam’s context, the Management Committee needs to list the estimate for each expenditure item and the amount receivable including monthly management fees and other revenues.
When preparing the budget, the Management Committee needs to refer to the expenditure of previous years. Other information, such as the proposed items to be added and deleted in the coming year, and various fee adjustments arising from estimated inflation, shall also be included. An increase of over 50% of the management fee shall be determined by a resolution of the general condominium meeting.
The Budget mainly covers the following items:
- Monthly management fees and other revenue;
- Salary, long service payment, mandatory provident fund and labor insurance for the management staff,
- Expenses for maintenance of common areas and facilities;
- Expenses for cleansing services and cleansing materials;
- Water and electricity charges for public use, rates, telephone charges, stationery and miscellaneous expenses;
- Fire insurance and third party risks insurance; and contingency fund (to meet unexpected or emergency expenses such as the burst of water pipes, sudden blackout, etc.).