What an Annual Budget Tells You About the Health of Your Scheme

An Annual Budget isn’t just numbers — it’s a window into the financial health of your Scheme.

Here’s what a well-prepared budget reveals:

• Operational Coverage: Does the administrative budget account for security, landscaping, staff, utilities and other service providers?
• Maintenance & Repairs: Does the Scheme have a Maintenance Reserve Fund in line with the requirements of Section 3(1)(b) and Management Rule 22 of the STSM Act? Is there enough set aside in the maintenance reserve fund for maintenance, repairs and future projects (painting, waterproofing, lift repairs/replacement, etc.)
• Arrears & Collections: If there’s a shortfall or high debtor percentage, the budget might reveal cashflow risks.
• Levy Calculation: Levies are determined from the budget. A realistic, well-balanced budget ensures fair levies that cover actual scheme needs.
• Transparency – Owners should understand how their levies are being used. Clear budgets show responsible management.

Need help analysing your Scheme’s budget? ANGOR offers expert guidance for Trustees and owners alike.