HOA glossaryMoney
What is Fiscal Year?
The fiscal year is the twelve-month accounting period the association uses for budgeting, financial reporting, and audits.
Many associations use the calendar year, but the fiscal year can start any month; it is usually set in the bylaws. Everything else keys off it: budget adoption deadlines, assessment increases, audit timing, and tax filing.
Boards should work backward from the fiscal year start — draft budget roughly 90 days out, board review and owner notice 30 to 60 days out, adoption before the year begins.
Related terms
Operating BudgetThe operating budget is the association's annual plan of expected income and day-to-day expenses, and the basis for setting assessments.Audit, Review, and CompilationThese are three levels of independent CPA examination of association finances, from a full audit down to a basic compilation of the numbers provided.AssessmentAn assessment is the mandatory payment each owner owes the association to fund shared expenses, usually billed monthly, quarterly, or annually.
Answers straight from your own documents
Melo tells residents what Fiscal Year means in your community — citing the exact page of your CC&Rs, budget, or rules.