› Flat Chat Strata Forum › The Professionals › What’s the Correct procedure to repay an Admin Fund deficit › Current Page
If I can jump in here, there are a lot of very informal arrangements going around whereby the Admin fund borrows from the Sinking fund and then pays the money back withing the deadline, only to “borrow” it again.
This can continue ad infinitum until
a) a new EC is elected and goes WTF?
b) an owner wants the books in order before they sell
c) the sinking fund is needed and the biscuit tin is empty.
This is obviously not a good situation but there are those (like Lannocks, sponsors of this website) who think the correct mix is a minimal sinking fun for emergencies and either strata loans or special levies for work as and when its needed.
I think the question of where money from special levies gets paid is moot. If the admin fund has a debt owed to the sinking fund then you pay your special levy or strata loan into the admin fund and transfer it to the sinking fund. It’s not rocket surgery.
And as for the legality of all this – the StrataKops (Forensic Accounting Division) is currently overworked analysing the links between developers and the NSW Labor Party. As my friends in the criminal fraternity love to say, it’s only a crime if you get caught.