Extraordinary Expense
Extraordinary expenses are unexpected costs that arise during
the year that have not been planned for in
your operating budget and are of an emergency nature. An
extraordinary expense is used when cash flow is an issue and funds
are required to pay urgent invoices.
Please address any repairs that could
affect the health and safety of your residents or further damage a
building immediately.
Extraordinary expenses do not include those items that would be
covered within your insurance policy. If there’s an
event that creates such an expense, such as water damage
from a broken pipe, check your insurance coverage first
and contact the company immediately.
In cases where the unexpected cost is not covered by insurance,
please
contact your Non-Profit Portfolio Manager
to determine whether the expense qualifies as an
extraordinary expense.


