Contingency Fund
Manage the contingency fund and self-insurance fund in compliance with Bill 16 and Bill 141.
Two mandatory funds#
Since Bill 16 (2020) and Bill 141 (2018), every syndicate must maintain two distinct funds in addition to the operating fund.
| Fund | Requirement | Law |
|---|---|---|
| Contingency fund | Minimum 5% of current annual charges | Bill 16 — art. 1071.1 CCQ |
| Self-insurance fund | Amount set by actuarial study — covers insurance deductibles | Bill 141 — art. 1071.1 para. 2 CCQ |
Contingency fund#
Purpose#
Cover major repairs and replacement of common components (roof, windows, elevators, heating, etc.). It aims to avoid unexpected special assessments.
Contingency fund study#
Mandatory every 5 years since Bill 16. This study, led by a professional (engineer, architect, architectural technologist):
- Inventories major components
- Assesses remaining useful life
- Estimates replacement cost
- Recommends a minimum fund amount
Configure in Syndic+#
Accounting → Funds → Contingency fund:
- Opening balance
- Annual contributions budgeted
- Disbursements (outflows for works)
Syndic+ produces the evolution table for the AGM.
An underfunded contingency fund may be sanctioned. If the study recommends $500,000 and the actual balance is $150,000, the syndicate must adopt a catch-up plan.
Self-insurance fund#
Purpose#
Cover insurance deductibles for losses covered by the syndicate's policy. Without this fund, a high deductible (e.g., $50,000 for a water damage claim) would have to be absorbed by the operating fund or a special assessment.
Required amount#
The minimum amount is determined by an actuarial study (typically every 5 years). It takes into account:
- Number of units
- Building age
- Claims history
- Deductibles in effect
Workflow in Syndic+#
Create the fund
Accounting → Funds → New — type self_insurance.
Record the study
Attach the actuarial study PDF to the document vault. Enter the recommended minimum.
Plan contributions
Add a line to the annual budget to reach or maintain the threshold.
Use for claims
When paying a deductible, record an outflow from this fund. Syndic+ automatically links it to the claim record.
Separation of funds#
Funds must be accounting-separate, but may be held in a single bank account with internal allocation. A rigorous chart of accounts (see Accounting module) is essential.
Investments#
Fund amounts may be invested in low-risk vehicles (GICs, Quebec bonds, high-interest accounts). The declaration of co-ownership or a board resolution may govern authorized investments.