How to Read Annual Statements

What Is the Annual Statement?

The annual statement (Jahresabrechnung) is the central financial document of your homeowners' association (WEG). It provides information about all income and expenses of the past fiscal year. Under § 28 (2) WEG, the property manager is obligated to prepare a proper annual statement.

Required Components

1. Total statement: All income and expenses of the WEG during the accounting period
2. Individual statement: Your personal share of costs according to the distribution key
3. Asset report: Overview of community assets (since WEG reform 2020)
4. Maintenance reserve development: Contributions, withdrawals, and current balance

Total vs. Individual Statement

The total statement shows the sum of all WEG costs. Your individual statement shows only your share, calculated according to the applicable distribution keys (e.g., co-ownership shares, living area, or number of residents).

Checklist: 10 Points to Review

1. Is the accounting period correct (full fiscal year)?
2. Are all revenues (maintenance fees, interest) correctly recorded?
3. Do the expense items match the resolutions?
4. Is the distribution key correctly applied?
5. Is the maintenance reserve development plausible?
6. Is the asset report plausible?
7. Are there deviations from the budget? If so, are they explained?
8. Are all accounts correctly listed?
9. Is your additional payment/credit mathematically correct?
10. Is there an audit report from the advisory board?

Your Rights and Deadlines

As an owner, you have the right to review the statement and inspect all receipts. A challenge to the resolution on the annual statement must be filed within one month of the resolution at the competent local court (§ 44 WEG).