Why the monthly report matters
For most condo boards, the monthly management report is the main window into how the building is being run. Directors are volunteers. They are not in the management office every day, and they cannot personally check every invoice, work order and owner complaint. The report is how the manager shows the board what happened since the last meeting, what it cost, what is outstanding and what needs a decision.
A good report lets a board govern rather than manage. It turns a long month of activity into a short set of facts, risks and decisions. A weak report does the opposite: pages of raw printouts, no comparison to budget, no follow-up on last month's action items, and nothing that tells directors where to focus. If your board regularly leaves meetings unsure about the corporation's finances or the status of a repair, the report is usually the first place to look.
This guide explains what Ontario law requires, what normally comes from your management agreement instead, and what a practical monthly report for a Toronto condominium should contain.
What the law requires and what comes from your agreement
The corporation's duties
Under section 17(2) of the Condominium Act, 1998, the corporation has a duty to control, manage and administer the common elements and its assets. The board carries out that duty on the corporation's behalf, and each director must meet the standard of care in section 37(1): to act honestly and in good faith, and to exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances. A board cannot meet that standard without regular, reliable information.
The Act also sets some specific record and reporting rules that a monthly report supports:
- Records. Section 55(1) requires the corporation to keep adequate records, starting with its financial records and a minute book with the minutes of owners' and board meetings.
- Annual financial statements. Section 66 requires financial statements prepared in the prescribed manner, including a balance sheet, a statement of general operations, a statement of changes in financial position and a statement of reserve fund operations. Under section 69, the board must place the approved statements and the auditor's report before each annual general meeting and attach a copy to the notice of that meeting.
- Money held in trust. Section 115(1) says anyone who receives money for the corporation, including common expense and reserve fund contributions, holds it in trust for the corporation's duties and obligations. Section 115(2) requires the corporation to keep general accounts and separate reserve fund accounts in its own name.
- Information certificates. Ontario Regulation 48/01 requires periodic information certificates within 60 days after the end of the first and third quarters of the fiscal year, using information current as of the quarter end. Those figures come from the same monthly books.
The manager's obligations
Section 17.0.1 of the Act says a corporation can only contract for condominium management services with a provider or manager licensed under the Condominium Management Services Act, 2015. Licensed managers are bound by the code of ethics in Ontario Regulation 3/18. Among other things, section 12 of that regulation requires a licensee to keep a client informed in a timely manner of all significant steps the licensee takes in providing management services, and of information about the condition of the property or assets if the licensee has a contractual obligation to manage, maintain, repair or protect them. Section 13 requires a licensee to promote and protect the best interests of its clients.
What is left to the agreement
Neither the Act nor the code of ethics sets out a monthly report format. The content, timing and level of detail of the report usually come from the management agreement and the board's own expectations. That is why it pays to spell them out. If your agreement only says the manager will "report to the board as required", consider adding a schedule that lists what the monthly report must include and when it is due before each meeting.
What a useful monthly report should include
Every building is different. A 40-unit townhouse corporation does not need the same report as a 500-unit tower with a concierge desk, a garage and a central plant. The sections below are a practical starting point that most Toronto boards can adapt.
1. A one-page summary and decisions needed
The report should open with a short summary: the corporation's financial position against budget, the main events of the month, any urgent risks, and a clear list of items that need a board decision or motion at the meeting. Directors should be able to read this page in a few minutes and know where to focus.
2. Financial statements and variance to budget
The core of the report is the monthly financial package, normally including:
- a balance sheet as of month end;
- a statement of operations showing the month and year to date against the approved budget;
- a short written explanation of any significant variances, such as utilities running over budget or a repair that was not planned;
- a general ledger or cheque and payment register for the month, so directors can see who was paid and why; and
- a forecast of where the year is likely to end if the trend continues.
The variance commentary is the part most often missing. A line that is far over budget with no explanation forces directors to ask the same question at every meeting. A good manager explains it before anyone has to ask.
3. Bank balances and the reserve fund
The report should show the balance of each operating and reserve fund account, with bank reconciliations completed for the month, plus a summary of reserve fund investments and their maturity dates. It should also show reserve fund spending against the current reserve fund study and plan, so the board can see whether contributions and expenditures are tracking as expected. Any transfer between accounts should be explained and tied to a board approval.
4. Arrears and collections
An arrears report should list each unit in arrears, the amount, how long it has been outstanding and the step taken so far. Timing matters here. Under section 85(2) of the Act, the corporation's lien for unpaid common expenses expires three months after the default unless the corporation registers a certificate of lien within that time. A monthly arrears schedule that flags units approaching that window protects the corporation's position. Our article on common expense arrears covers the collection process in more detail.
5. Maintenance, repairs and work orders
Directors do not need every work order, but they should see the picture: the number of work orders opened and closed, anything still open from previous months, significant repairs completed and their cost, and recurring problems such as repeated leaks, elevator outages or garage door failures. Recurring problems are often the first sign that a component is near the end of its life and should be discussed with the reserve fund study in mind.
6. Capital projects
For each active project, the report should show the scope, the contractor and consultant, the approved budget, spending to date, change orders, the schedule and any issues affecting owners, such as access to units or balcony closures. Change orders deserve particular attention because they are where budgets quietly grow.
7. Contracts and vendors
A simple contract register helps the board see which service contracts are up for renewal or tender in the next few months, along with insurance certificates that need updating and any vendor performance concerns. Renewals that slip past a notice deadline can lock the corporation into terms it would not have chosen.
8. Compliance calendar
A rolling calendar of statutory and contractual deadlines keeps the board ahead of its obligations. Typical entries include periodic information certificates, the annual general meeting and its notice deadlines, audit planning, the reserve fund study cycle, insurance renewal, elevator and fire protection inspections, fire drills and other Fire Code duties, and the returns and notices the corporation must file with the Registrar under Part II.1 of the Act. The report should show what is due next and confirm what was completed.
9. Insurance and claims
Any new or open insurance claims should be listed with the cause, the status and any deductible that may be charged back to an owner under the declaration or by-laws. The board should also see incidents that could become claims, such as water escapes or slip-and-fall reports.
10. Owner and resident matters
This section should summarize owner requests and complaints by type, rule enforcement letters sent, records requests received and their response dates, and any matters before the Condo Authority Tribunal or in legal proceedings. Personal information should be kept to what the board needs to make decisions, and sensitive matters may belong in a closed session item.
11. Staffing and site operations
Where the corporation has on-site staff or contracted security and concierge services, the report can cover staffing changes, coverage gaps, training and significant security incidents.
12. Follow-up on last month's action items
Finally, a good report closes the loop. Every action item from the previous meeting should appear with its status: done, in progress or delayed, and why. This one habit does more than almost anything else to build trust between a board and its manager. It also fits neatly with well-kept board meeting minutes, which record what the board decided and who is responsible.
Making the report easy to use
Format matters as much as content. A few practical habits make a monthly report far more useful:
- Agree on a deadline. Set how many days before each meeting the report is circulated, so directors can read it and send questions ahead of time.
- Use the same structure every month. Directors learn where to look, and changes stand out.
- Put numbers in context. A figure means more next to the budget, last month and the same month last year.
- Separate information from decisions. Mark clearly which items are for information and which need a motion.
- Attach the backup. Quotes, engineering letters and contracts behind a recommendation should be attached, not summarized from memory.
- Keep it secure. Reports often contain owner and financial details. Agree on how they are shared and stored, and treat them as corporate records.
How the board should review the report
Receiving a report is not the same as reviewing it. Section 37(3) of the Act protects a director who relies in good faith on financial statements that the auditor in a written report, an officer or the condominium manager represents as presenting fairly the corporation's financial position, but good faith reliance still means reading what you receive. Many boards ask the treasurer to review the financial package in detail before each meeting and raise questions with the manager in advance.
Questions worth asking each month include:
- Are the bank reconciliations complete, and do the reported balances match the bank statements?
- Which budget lines are significantly over or under, and why?
- Which units are in arrears, and are any approaching the three-month lien window?
- Which repairs keep recurring, and should they be reviewed against the reserve fund study?
- Which contracts renew or expire in the next 90 days?
- Which compliance deadlines fall before the next meeting?
- Which of last month's action items are still open?
Red flags in a management report
Some patterns suggest the board is not getting the information it needs:
- Reports arrive late, or only at the meeting itself.
- Financial statements are months behind, or bank reconciliations are missing.
- Large variances appear with no explanation.
- Arrears grow without a record of collection steps.
- The same action items roll forward month after month with no explanation.
- Payments appear that the board does not recognize or did not approve.
- Questions are answered verbally but never confirmed in writing.
One of these on its own may just mean a busy month. A steady pattern is worth raising with the management company in writing. If it continues, our article on signs it may be time to change management companies explains how to assess the relationship fairly before making a change.
How Brilliant Property Management can help
At Brilliant Property Management, we see the monthly report as one of the most important things we deliver to a board. Our reports are built around the decisions directors actually need to make, with clear financials, arrears tracking, project updates and a compliance calendar for each corporation. Learn more about our approach to condo property management in Toronto, explore our full range of management services, or request a proposal for your corporation and ask to see a sample report.
Frequently asked questions
Does the Condominium Act require a monthly management report?
No. The Condominium Act, 1998 does not set out a monthly report or its format. What the manager reports, and how often, usually comes from the management agreement. The Act does require the corporation to keep adequate records, including financial records (section 55), and to place audited financial statements before each annual general meeting (section 69). Licensed managers must also keep the board informed in a timely manner of significant steps they take, under section 12 of Ontario Regulation 3/18.
What should be in a condo manager's monthly report?
A useful report usually covers the monthly financial statements with a comparison to budget, bank and reserve fund balances, arrears and collection steps, work orders and repairs, capital project updates, contract and vendor matters, upcoming compliance dates, insurance claims, owner and resident issues, and a short list of decisions the board needs to make.
When should the board receive the monthly report?
Many boards ask for the report a set number of days before each board meeting, so directors have time to read it and send questions in advance. The exact timing is a matter for the management agreement and the board's own practice. Whatever you choose, write it down and apply it consistently.
Can directors rely on the financial statements the manager gives them?
Section 37(3) of the Act says a director is not found liable for a breach of the standard of care if the breach results from relying in good faith on financial statements that the auditor in a written report, an officer or the condominium manager represents as presenting fairly the corporation's financial position in accordance with generally accepted accounting principles. That protection depends on good faith, so directors should still read the statements and ask about anything that looks wrong.
This article is general information about the Condominium Act, 1998, Ontario Regulation 48/01 and the Condominium Management Services Act, 2015 and its regulations, current as of November 2026. It is not legal or accounting advice. Reporting obligations depend on your management agreement, declaration and by-laws. Consult your condominium lawyer or auditor about your corporation's situation.