Strata Management

[argentina]

Hi. I am the owner of a unit in NSW and have some concerns about the Strata Management. I do not live in the state so it is difficult for me to attend their offices. I had a bit of a read of the strata act which is somewhat complex for the "lay" person. Perhaps someone on this forum may be able to assist.
Specifically, I wanted to know if I can request interim financial reports of the sinking and admin fund. I have only been receiving them once a year at the time of the AGM. The strata allowed the admin fund to get into $20,000 deficit and we have just paid a special levy to rectify this. I want to be able to keep tabs on things more regularly.
Secondly, and this is more a general question. The admin fund has spent $9000 annually on water and sewerage. It is an older complex with 21 units. Each owner pays approx $200 per quarter for water usage as well. $9000 seems a lot for sewerage and watering the grounds, but then I am not familiar with Sydney utility bills. I wondered if this is around the norm for a 21 unit complex?
Thanks.

 

[datto]

I think strata only do the books once a year and use a bank balance to see where they are. I'm in Sydney's golden west, and if I want to look at the books I have to pay the Strata coy for the privilege.

I own a unit in a 21 unit block and I think we pay about 5K a year and that includes water usage for all the units as there is only one meter.

 

[mattysavager]

Specifically, I wanted to know if I can request interim financial reports of the sinking and admin fund. I have only been receiving them once a year at the time of the AGM. The strata allowed the admin fund to get into $20,000 deficit and we have just paid a special levy to rectify this. I want to be able to keep tabs on things more regularly.
Secondly, and this is more a general question. The admin fund has spent $9000 annually on water and sewerage. It is an older complex with 21 units. Each owner pays approx $200 per quarter for water usage as well. $9000 seems a lot for sewerage and watering the grounds, but then I am not familiar with Sydney utility bills. I wondered if this is around the norm for a 21 unit complex?
Thanks.

Hi there,

I am a strata/body corporate manager in QLD. Our Acts are very different, however there are many parallels. I might not be able to give you specific answers, but might be able to prompt you on the right questions to ask.

1. Financial Statements: Are you a committee member? My company issues monthly financial statements to the executive committee members, not to all Owners. Your committee would have a treasurer, and it is that person's role to ensure that the finances are properly managed (by supervising the strata manager in managing the strata financials).

I suggest getting in touch with a committee member to see what procedures are in place to ensure that the financials are being effectively managed. Also, I suggest that the strata manager has not 'allowed' a deficit to be created. In QLD the strata manager has absolutely no authority to approve the expenditure of funds. A deficit could be created by the committee overspending on unbudgeted works, emergent works, insufficient budgeting for insurance, power, water etc.

2. $9,000 seems way too high for communal water for 21 lots. The title of 'water and sewerage' is probably just an accounting code from the strata manager, and may include the costs of a sewerage management contract, back flow management, sewerage collection, grey water recycling system etc. Again, request more information from the committee on this one, or an itemised breakdown on that accounting code from the strata manager.

Matt

 

[argentina]

Thank you for the advice and feedback. I will look into this.
Cheers

 

[argentina]

Just an update. I have managed to get explanation on the water/sewerage which I am satisfied with.
I asked about financial reports and was advised that they are only annually for the owners. Executive Committee get them more often. But I am finding it difficult to get more information about the financials ie 10 year sinking fund plan and future expenditure. The strata manager is finding out if he can give me the details of the treasurer. Something to do with the privacy laws preventing him for divulging this information. It seems like very hard work to find out where my money is going?
Thanks for your advice though. It has been really helpful in getting me started.

 

[mattysavager]

In QLD, the body corporate records must be made available to any interested person, for a prescribed fee. In QLD it is around $17.00 for an Owner. This allows you to go to the place that the records are kept and view all of the records. This would include the reports you're talking about.

Normally this is only done by search agents when doing due diligence for a sale, however it is available to Owners. It would be worthwhile searching the records, you'll find it interesting.

I am sure that there is a similar function in your state - in the interests of transparency.

At the least, you could address a request for further information and a copy of reports etc to the committee, via the strata manager. The strata manager is then bound to send that request to the committee.

They may not be able to provide the committee's contact details (phone numbers or emails) to the Owners.

Body Corporate/Strata legislation is designed to allow the committee to operate without 'micromanagement' by each Owner. This seems silly in smaller schemes, but becomes more pertinent when you are dealing with schemes of 150, 300, 500 lots and an an elected committee. 500 Owners giving their opinion on every routine decision would become impossible.

The committee are your elected representatives, and if you are interested in the management of the scheme, I encourage you to nominate for the committee.

Good luck!

Matt