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Long-time reader – first time poster
I recently purchased an investment unit and we are due for the AGM – the first for me at this property.
I’ve noticed that the financial statements received for the investment unit are quite different from that which is provided to me for my own strata unit where I reside.
For example, the ‘Income & Expenditure Statement’ for the previous financial year is not itemised, that is, there are categories given only and these have quite vague titles such as: ‘Miscellaneous Income – Admin’ of approx. $4,000.00
Another example, ‘Miscellaneous expense – Sinking’ of approximately $2,500.00. These two amounts are quite substantial to not be more appropriately identified.
Another difference is that only the current period is provided whereas I’m used to the previous period also being specified so that each owner can compare the performance of income and expenses between the two periods.
The financial statements that I’ve always received for my own strata residence (from a different Strata Manager) has always had the ‘Income & Expenditure Statement’ itemised per receipt & also per unit (where applicable) so that everything is transparent.
Is there a standard template that financial statements have to comply with? What do other Forum members receive from their own Strata Managers re: financial statements?
Thanks muchly
DChippy
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As a treasurer, I have resisted giving the ‘Account Payments’ details. That is, the listing of every single payment for every little thing. Often the managing agent’s description was a bit vague and general meetings would get bogged down on misconstrued debate about items worth 10s of dollars in a budget of $150,000.
However, our managing agent’s software always produces an ‘income and expenditure’ document that lists each budget item with what was budgeted, what was actually spent, what was spent in the year before, and what is proposed for the next year. That has categories such as ‘gardening services’, ‘insurance’, ‘R&M electrical’, ‘lighting’, ‘managing agent fees’, ‘tax’, ‘interest’, ‘electricity’, ‘tree maintenance’ and so on. That is always provided to the meeting as the core of the financial reporting. ‘Miscellaneous expenses’ is a minor item as most things are in other categories.
In addition to the output of the managing agent’s accounting software, I also write a ‘Treasurer’s report’ that attempts to translate into plain english. So, for example, I write that ‘lighting’ covers purchases of new globes whereas, ‘R&M electrical’ covers getting an electrician to fix lights that couldn’t be fixed with just a bulb replacement. I list a few examples of things that were covered under ‘miscellaneous expenses’ (eg. Owners Corporation network corporate membership, newsletter printing, new keys for the shed). I note that ‘gardening services’ actually covers not just the monthly fee for the gardener but also occasional supplies of mulch or new plants.
So, I think you should be getting more detail, though, perhaps, not necessarily as much as at your residence.
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