Interesting call given in another thread our agent claims come close of books any unspent money in the capital works fund becomes unspecified surplus, i.e. money does not accumulate to any purpose.
The difference would be between unspent and unallocated funds. A smart strata manager would recommend either bringing forward some of the capital works (CW) or reducing the CW portion of the levies until such times as everything was back on track.
What owners really need to see is a list of future CW projects, how much they are likely to cost and where that money might come from – accumulated funds, special levies or strata loans.
Large SP so ever cent is allocated to a line item, a purpose, at the time of raising. But it all becomes surplus 12 months later if not spent; says the not very good agent.
A genuine surplus would be left overs from an executed specific project (line item) that too much money was raised for.
We don’t even follow the plan, or necessarily spend it on a line item, it is often spent on items that no estimate was ever made for. The legislation is a wish list and failure to comply means no consequence in too many cases.