As you know, ASLIC does not make any adjustment of your expenses and even less to a refund of them when they are in excess of the paid expenses.

To achieve this surprising result, ASLIC often uses a manoeuvre that consists of transferring your excess charges to a reserve account.

These provisions, accumulated for 10 years, amounted to 31/12/2023: €451,351.01 (last accounting valuation of ASLIC).

On several occasions, the A3C has denounced this accounting manipulation of the ASLIC which has the effect of continually increasing the expenses of co-owners and financing unnecessary expenses without ever returning to the owners the amount of the appeals of surplus funds.

It is therefore necessary to better understand what a provision is and how it can be diverted from its purpose...

Quite simply, a provision is an amount of money set aside in anticipation of a financial loss or expense that has not yet arrived. For example, if you are considering losing a case against a former employee and being sentenced to pay him 10,000 euros in compensation, it is quite normal to account for 10,000 euros in provision to anticipate the expense to be financed when the sentence to be paid becomes effective. These €10,000 provisions are then an expense that reduces the profit. If, later on, the amount of compensation is only € 4,000, then it is necessary to reintegrate € 6,000 of provisions by adding them to the result (profit). In the end, the actual charge will be only 4,000 €.

This accounting gymnastics makes it possible to anticipate the deduction of a financial expense in specific cases, most often a risk, when its amount and maturity are not known.

It is important to know that a provision that was wrongly constituted must imperatively be reintegrated accountably ie added to the result and its allocation is decided by the members of ASLIC (The profit may be returned to the owners or allocated to a reserve fund if they so wish).

As of 31 December 2023, ASLIC has found €192,470.30 in unjustified provisions (that is to say allocated to hypothetical unpaid expenses and investments that have never taken place)! These provisions, wrongly constituted, should normally have been reintegrated into the 2023 benefit of ASLIC and give rise to either a restitution to the co-owners in 2024 or an allocation in reserve. Without asking the owners' opinion, ASLIC planned, during its last AG, not to reimburse the 192,470 € and to allocate them to a reserve fund only in 2024. This means very simply that if ASLIC had proceeded democratically, you could have obtained, on average and per lot: 154 € of charges less during the year 2024. Note that these provisions, kept by ASLIC, will never be returned to the owners in case of resale of their property!

You know the rest: these unjustified charges were not reinstated by the ASLIC accountant, so they could not give rise to restitution and it is also for this reason that a majority of co-owners rejected 2023 accounts during the AG of 18/06/2024.

The A3C will continue its work of explanation and will not cease to denounce practices that go against the interests of the owners.