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Jimmy T I agree with you that the Act is clear on how shortages in admin funds should be managed. However our strata manager simply decided to run the admin fund in deficit ( overdraft against the positive balance in the sinking fund). That meant neither the sinking fund paid the admin expense, nor did the sinking fund transfer $$$ into the admin account, thus s76 was not triggered to alert owners. It wasn’t until six months later at the AGM that the owners corporation became aware of a significant admin fund shortage (approx $1,000 per apartment). We still can’t find out when it actually went into “negative balance”.
Lawful or not, I don’t believe the Act intends for this “overdraft” to happen.
As the new treasurer , I’m being told its about to happen again. Can I say insist “no overdraft ” or whatever you want to call it, follow s71 and s76?