Re: Transfer of surplus admin funds to underfunded Capital Works funds….

Thank you Sir Humphrey.

We are coming up to our AGM and have been told the following by our Strata Manager:

“The Act doesn’t allow money to be permanently transferred from one fund to the other, only ‘borrow’ from Admin to Capital and vice versa” He further states: “To re-balance your funds, I have proposed that we drastically reduce the Admin contribution for the next 12 mo the to chew up some of the surplus and I’ve topped up the Capital Works Fund contribution to match the reduction” And then: “Eventually I will need to re-balance the funds again but this is a matter of reviewing and tailoring your budget every year”.

The Strata Manager has been asked a few times to point out where it states this in the Act (unsure of which act he is referring to even) but to date he has not.

So can we place this on the agenda as a Motion (to transfer X amount over) and it proceeds as an ordinary resolution at the AGM? There are some major works – painting that need to be done so I understand the importance of having enough money in the C/W for this but I think it’s logical to bump up the funds with the major surplus we already have in the admin fund?

I am in NSW, 43 units.

Thank you.