- This topic has 9 replies, 7 voices, and was last updated 14 years, 5 months ago by .
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Topic
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Should the EC reasonably expect to receive detailed income and expenditure each month. All we get is bottom line.
Is there any guideline re how much info SM should provide to the EC.
Thanks in advance
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Replies
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There is no official guidelines but that does not prohibit the OC from including in the management agreement some sort of minimum requirement for reporting.
The EC should probably not expect a detailed income and expenditure report because that takes time for the SM to prepare and that will cost the OC in management fees but if you feel there is a need for it then pass a resolution at an EC meeting to ask for it. Keep in mind the SM is the employee of the OC so do not be afraid to set your employee a task that is within his capability.
Best bet is to ask for a more detailed report but ask about the extra cost before making any commitment to requesting it and make sure the OC is aware the EC is pursuing the matter as it will come at a cost and the OC may decide they do not want the EC adding such a cost, i.e. put it on an EC meeting agenda, be transparent about it, and the OC can veto it if they do not want the EC pursuing the matter.
Surely they can just flick you a copy of the latest spreadsheet. ButBB is right, you should expect to pay more for any “extra” services.
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If your strata manager has decent software systems it's easy to get more detailed reports. I've always insisted on them and have received them. It doesn't take any more than a couple of minutes to produce another report.
Before you give up, I'd ask your strata manager about what software they use and what reports can be generated. They could just be lazy!
I don't see why having access to income and expenditure should be an extra service. How can EC manage a tight budget without seeing this info. I keep my own budget on a spreadsheet. I would have thought any decent accounting system could easily spit this info out. It is not rocket science.
Do other ECs just accept bottom lines?
Thanks again
Depends on the strata manager and the expectations of the EC. Some strata managers could, indeed, just print off the latest spread sheet … other may be less technically savvy or, more to the point, up to date with their record keeping. But anything that seems to be more work that was originally quoted for is going to attract the possibility of extra charges.
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Hi All,
It is pretty simple really, you get what you pay for!
You will not get the champagne on the beer budget.If you go to your accountant and ask them to do your tax return, you can not expect them to through in financial planning at no cost.
It is important to get this right when selecting a strata manager to start with. Make it clear in your quote/tender request the frequency and standard required in your strata scheme’s financial reporting, as there is a significant range in services and pricing when it comes to strata management.
With the systems available these days, it is reasonable to expect regular quality financial reporting from a strata manager, but if you want the extras, expect to pay for it.
Mr S
As a treasurer I generally ask for a copy of the accounts a few days before an EC meeting. The usual result is that I can say to the meeting that things look to be generally on track with the budget, perhaps that we are a little over spent on one item but a bit under on something else. Perhaps that I have sent a polite reminder to the few units that are shown as behind on levies. Our manager usually produces a comprehensive set of accounts within 24 hours. I think it is simply a matter of calling up the right OC in their software, hitting print and sending me a PDF version. It is then easy for me to see that we have paid (say) 6 of the 12 usual monthly accounts from our gardener and consequently have spent almost half of what we have budgeted for gardening and so appear to be on track for that item, and so on.
It does not seem to be beyond what the managing agent expects and not hard for me to interpret in spite of little relevant background expertise (biochemist, not accountant!).
It can depend on the size of the scheme – we get quarterly updates showing all money coming in and all going out, how else can you track the state of finances and plan accordingly? For a larger scheme monthly would be sensible but this should be agreed with the strata manager. There is nothing wrong with them charging for financial reporting, it is a service.
If you have had to raise a special levy to pay the insurance this raises questions about the strata budget. Insurance is an expected expense, it happens every year. In strict terms it is not appropriate to strike a special levy to pay for that. If the strata manager and EC are not making allowance for insurance in the annual budget then perhaps you should look for a new strata manager.