Financial resources available to a syndicate of co-owners to face the day-to-day expenses, as they fall due. It represents the ability to meet short-term financial obligations. In mathematical terms, the working capital is calculated as follows: Current assets - Current liabilities = Working capital. The syndicat is able to pay its bills as long as the working capital is positive.
The basis of the management of divided co-ownerships, the financing and accounting of syndicates of co-owners must be mastered both by those who must establish the accounts and by those who have to report to the co-owners. A syndicate of co-owners has the obligation to account for its operations by funds. The Civil Code of Québec requires the creation of a general fund, a contingency fund and and since April 2022 a self-insurance fund. The general fund for current operations is also sometimes referred to as an administration fund or an administration fund.
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Almost every insurance policy includes deductibles, the amounts of which vary depending on the risk insured. For example, the deductible for water damage is usually higher than that for fire. The amount of the deductible will be deducted from any compensation paid. Its purpose is to make the insured responsible, by making him take charge of part of the repairs of the damage caused by the disaster. The advantage for the syndicate is to see its premium reduced. In co-ownerships, deductibles are a factor in the Building insurance, and in the third party liability insurance of the syndicate, directors, meeting officers, co-ownership manager and of the condo manager. Regarding co-owner’s insurance, generally each home insurance policy contains one or more deductibles for various amounts according with the nature of the loss.
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WARNING ! The working capital should not be confused with the concept of funds established by the fund basis of accounting.
