What type of reports provide insights into the financial performance of a condominium corporation?

Monthly financial statements are essential tools used by condominium corporations to assess their financial performance on a regular basis. These statements typically include a balance sheet, income statement, and cash flow statement, which together offer a comprehensive view of the corporation's financial health. They display important metrics such as income from maintenance fees, expenses for services, and variances from budgeted figures, allowing for ongoing analysis and decision-making.

These statements are crucial for the board of directors and management as they highlight how the condominium is performing against its financial goals. Regular review of these statements helps identify any financial issues early on, enables the board to adjust budgets or spending as needed, and improves transparency with owners. Unlike the annual budgeting process, which focuses on forecasting for the upcoming year, or the reserve fund study that assesses long-term capital needs, the monthly financial statements provide timely updates reflecting recent financial activity.