› Flat Chat Strata Forum › The Professionals › What’s the Correct procedure to repay an Admin Fund deficit › Current Page
I think you’re right Whale, the admin and sinking funds are used for different purposes and a special levy is not the correct way to do it.
A special levy is to meet a future expense that has not been otherwise budgeted for, this could be a range of things, but here administration expenses from the previous year exceeded what was budgeted, i.e. they are replenishing funds already spent.
If the admin fund was short and had to be topped up from the sinking fund, then this suggests that the budgeting for the scheme hasn’t been done very well, $40,000 is a significant shortfall.
What they should be doing is just raising the levies for the coming year and making the $40,000 component payable in the next levy payment. That is different from a special levy. People often get confused about what a special levy is, and this situation demonstrates that.