› Flat Chat Strata Forum › Levies and Unit Entitlements › Transfer of surplus admin funds to underfunded Capital Works funds…. › Current Page
@kaindub said:
In NSW you cant transfer money from one fund to the otherBUT I think I have a way.
The OC can return money to owneirs from any fund
WRONG!
Under section 76 of the Act, you CAN transfer funds from one account to the other. however, under section 77 you CAN’T refund owners without a unanimous vote.
For instance, your admin fund can borrow cash from the Capital Works (sinking) Fund provided it is paid back withing three months.
Many schemes will re-borrow the funds whenever they are supposed to be paid back. Sooner or later you have to reconcile the amounts but it gives you the breathing space to let you adjust the proportions of levies to bring everything back into equilibrium.
LawoftheLand’s strata managers are doing exactly the right thing (apart from explaining the legal basis for this).
One other thing – there are no Stratakops … unless you are embezzling the funds, no one will be going to jail. It’s all good provided it’s all transparent and the Capital Works Fund doesn’t end up having less money in it than it ought to have.