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I have been in a similar situation for a number of years. The EC and the Strata Manager refuse point blank to accept that when a fund goes into deficit they must raise a special levy to reimburse the other fund that paid the bills. They claim that the next time that owners pay their levies means that the fund is 'reimbursed', and there's no need to have an EGM and a special levy. Some other owners are concerned, but mostly they don't bother to look at the issue. In 3 of the last 6 years there has been a deficit in the Admin fund.
I'm not sure if the Strata Manager reallly is that incompetent, or they just agree with The Committee for a quiet life. When an audit is required, the Strata Manager won't even show the auditor the annual financial statements – they present him with the listing of receipts and payments and he audits that. So I think they know they have something to hide. But the Committe doesn't even know the difference between a trust fund audit of receipts and expenditure, and an audit of the financial statements, so they just accept the report.
Of course, this is the same Strata Manager that couldn't correctly count the votes on a Special Resolution at the AGM until the CTTT told them they had to do it again. So there's a good chance it is simply incompetence.