Following the end of the fiscal year, Strata Manager Sarah Jones informs the strata council of Strata Plan NWS9876 in Squamish that the operating fund has a surplus of $15,000. According to the Strata Property Act, what are the options for dealing with this year-end surplus?

Question: Following the end of the fiscal year, Strata Manager Sarah Jones informs the strata council of Strata Plan NWS9876 in Squamish that the operating fund has a surplus of $15,000. According to the Strata Property Act, what are the options for dealing with this year-end surplus?

Answer options:

• It must be transferred directly to the contingency reserve fund. ✅ It can be transferred to the CRF or used to reduce the next year's budget, as decided by the strata council.
• It can only be used to reduce the next year's budget.
• It must be returned proportionally to the owners.

Correct answer: It can be transferred to the CRF or used to reduce the next year's budget, as decided by the strata council.

Explanation: Standard Bylaw 6(1) outlines that an operating fund surplus at the end of the fiscal year may be transferred to the contingency reserve fund, or be applied to the next year's operating budget, as decided by the strata council.