The Title Conditions (Scotland) Act 2003 (Development Management Scheme) Order 2009

RULE 18 – ANNUAL BUDGET

Duty of manager to prepare annual budget

18.1  Before each annual general meeting the manager must prepare, and submit for consideration at that meeting, a draft budget for the new financial year.

Content of draft budget

18.2  A draft budget is to set out–

(a) the total service charge and the date (or dates) on which the service charge will be due for payment;

(b) an estimate of any other funds which the association is likely to receive and the source of those funds;

(c) an estimate of the expenditure of the association; and

(d) the amount (if any) to be deposited in a reserve fund.

Consideration of draft budget by association

18.3  The association may at a general meeting–

(a) approve the draft budget subject to such variations as it may specify; or

(b) reject the budget and direct the manager to prepare a revised draft budget for consideration by the association at a general meeting to be called by the manager and to take place not later than two months after the date of the meeting at which the budget is rejected.

Rejected budget – payment of service charge

18.4  Where the budget is rejected the service charge exigible under the budget last approved is, until a new budget is approved, to continue to be exigible and is to be due for payment on the anniversary (or anniversaries) of the date (or dates) on which it was originally due for payment.

Revised draft budget

18.5  At a general meeting at which a revised draft budget is considered, the association may approve or reject the budget as mentioned in rule 18.3(a) and (b).