Question: What are the Strata Manager’s financial reporting requirements at the AGM?
I own a unit in a 6-unit Strata Corporation. We have recently had our AGM. No accounts were included where a copy of the bank transactions statements for the previous financial year. What are the Strata Manager’s financial reporting requirements? My understanding of section 33 A of the Strata Titles Act 1988 suggests there should be more.
Answer: The Manager may think they are satisfying the Act by presenting the bank statement.
Section 33 of the Strata Titles Act states that the agenda must include a presentation of the accounts for the previous accounting period. While some may argue the bank statement shows all accounts paid, there is a lack of detail in this method of reporting.
Many, if not all, professional Strata Managers use industry-specific software where financial statements are easily produced with payments coded under specific headings, usually in line with the budget presented at the previous meeting (also required by Section 33A).
The systems are also able to print detailed expense reports that show the date, the contractor, and a description of each payment. If you do not believe that the statement being presented is clear, you are certainly within your rights to ask for a more detailed description of what each payment was for, however, the Act does not specifically say that it must be a financial statement and the Manager may think they are satisfying the Act by presenting the bank statement.
This post appears in Strata News #611.
Carrie McInerney Horner Management E: carrie@hornermanagement.com.au P: 08 8234 5777