The back room
The back room refers to the property management's accounting,
administrative and support staff. They are the people who receive all
the condo's receivables. the common element fees, special assessments,
rent from any small businesses that operate in the common elements,
fees for using the amenities and all chargebacks.
They manage the operating and reserve fund bank accounts and fill in
all the required government paperwork. If the corporation has
employees, they look after all the payroll issues, make the necessary
deductions, track the overtime and vacation pay and issue T4 slips.
They also properly file all the corporation's
paperwork and work with the corporation's law firm and auditor.
Finally they pay all the invoices in a timely manner.
Most often, the back room work is done at the management company's
office and it receives and sends the paperwork to the property manager.
This is very common with townhouse condos and the smaller apartment
towers where there is no management office.
In the larger apartment towers, much of the back room work, or even all
of it may be done at the
condominium's management office. The office staff may be employees of
the management company or of the condo corporation and the property
management accountant may come in one or two days a month to do his
The little mom and pop shops
farm much of their back room work out to larger management companies as
they cannot afford to hire the required accountants and other office
Normally, the board has little direct involvement with the back office
as that would be the manager's responsibility. However, the back office
will create monthly financial reports for the board meetings.
This report will show how the corporation's finances are doing on a
monthly and year-to-date basis so the board can take any corrective
measures if required.
This report should include a listing of all the units that are in
arrears so that the board can authorized pre-lien and lien actions when
it become necessary.
The condo corporation owns its records and the board has legal
responsibilities for their integrity, proper storage and access
whenever it is required.
When the records are stored on the corporation's property, or at a
secure independent storage facility the records remain under the
However, many management companies have physical possession of the
corporation's records and if the corporation changes management
companies, this often creates serious difficulties.
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