As of May 31, 2025, the financial condition of WNCC 37 operating fund – the account responsible for paying routine, day-to-day expenses – is showing clear signs of distress.
💰 Key Financial Indicators
🔻 Operating Bank Account Balance:
–$35,497.82
The operating fund is in overdraft. This means the corporation has no available operating cash and is spending more than it brings in.
📉 Net Worth (Operating Fund):
–$68,967.13
This negative balance indicates the fund is significantly overextended – a strong signal that the corporation is not living within its means.
📆 Net Income for the Year (June 2024–May 2025):
–$95,143.99
This deficit shows that nearly $100,000 more was spent than earned over the past fiscal year.
📬 Outstanding Accounts Payable:
$80,107.21
This is the total amount the corporation owes to vendors and service providers – a substantial backlog of unpaid bills.
🏦 “Due to Reserve Fund” Liability:
$67,068.50
The corporation has borrowed over $67,000 from the reserve fund, which is intended to cover long-term capital repairs and replacements – not short-term operating costs.
⚠️ Why This Matters
These figures point to a number of serious structural concerns:
- Cash Flow Crisis:
The negative operating bank balance reveals immediate liquidity issues. The corporation does not have enough operating cash to cover its obligations. - Deficit Spending:
Running a nearly $100K operating deficit in one fiscal year without correction is a sign of poor financial oversight and unsustainable budgeting. - Improper Use of Reserve Funds:
Borrowing from the reserve fund to cover daily operations is risky and discouraged, as it undermines the corporation’s ability to meet future capital obligations. - Lack of Transparency:
The gradual erosion from a positive operating net worth in 2023 to a deeply negative position by 2025 has occurred without sufficient communication or explanation to owners.
🏘 What Owners Should Know
- Under the Condominium Act, boards have a fiduciary duty to act in good faith and with care. Owners have the right to demand financial transparency and accountability.
- Boards must restore any funds borrowed from the reserve account and disclose the plan for doing so.
- If major legal expenses contributed to this deficit, owners have the right to know how legal counsel was used and why, especially in matters not disclosed or approved at owners’ meetings.
📣 Action Steps for Owners
- Request a Detailed Breakdown of legal, consulting, and discretionary spending over the past 24 months.
- Insist on a plan for repaying the reserve fund – with timelines and safeguards.
- Call a Requisitioned Meeting if necessary to demand answers and propose corrective measures.
- Review Board Governance Practices to ensure financial decisions are being made responsibly and in accordance with the Act.
🧾 Final Thought
This level of financial deterioration does not happen overnight – it occurs when oversight weakens and accountability fades.
This analysis – clear, basic, and based on standard financial documents – should have been prepared by the board and shared with owners. That it wasn’t speaks volumes.
The numbers don’t lie.
But silence often does.
