Topic: How detailed do our budgets and financial statements need to be?

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05/12/2023 at 9:54 am #71727 Reply | Quote
WoodWalker
Flatchatter
Is there a standard for the financial Statement that an EC or SM presents to an AGM?

Our previous SM provided an Income and Expenditure Statement with columns for Actual, Budget and Variance and lines for the recognisable categories e.g. Garden, Electricity. This was supported by a General Ledger showing all transactions (date, who, credit or debit amount).

Several of us are VERY unhappy with the level (and probably the accuracy) of information provided by our current SM in the Financial Statement to be presented to the 2023 AGM and the proposed budget for 2023-24 e.g.

The Aug 22 to July 23 actual expenditure contains items such as:
Management fee – standard ~$2.5k (we are 10 units)
Management fee – Work out of scope ~$2.4k
(with no breakdown of the out-of-scope work items (other than $.9k they are attempting to charge 3 unit holders who petitioned a General Meeting to ask to look at the expenditure and decisions made by the EC. They also decided to invite a solicitor at a cost of $1.7k and are attempting to recover this from us).
There are no Bank Statements or General Ledger!

Most likely the concerned owners will ask for an Audit.

Any assistance would be VERY welcome. Feel free to send me a direct message with recommendations for an Auditor (preferably in Canberra).

Woodwalker
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Reply To: How detailed do our budgets and financial statements need to be?

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