Question: Is a strata manager obliged or legally required to have the strata accounts bookkeeping of a strata corporation performed by a professional bookkeeper or accountant?
I have questions regarding a strata corporations accounts, bookkeeping and auditing and it relates to a corporation of 42 units in Adelaide, South Australia.
Is a strata manager obliged or legally required to have the strata accounts of a strata corp performed by a professional bookkeeper or accountant?
Is it legally acceptable for the strata manager to attend to the bookkeeping himself and if so is there a standard the manager must adhere to?
Is there a legal requirement for the accounts to be audited by a professional auditor and if so should this be done annually?
Answer: It is common practice for a Strata Manager to carry out the bookkeeping on behalf of the Corporation and this is usually covered in their management contract.
It is common practice for a Strata Manager to carry out the bookkeeping on behalf of the Corporation and this is usually covered in their management contract. There is no requirement under the Strata Titles Act that states a Corporation must employee a professional bookkeeper or accountant to carry out these duties.
The Strata Title Act states that a trust account must be used if the Body Corporate has authorised a person to receive money from another person and to hold the money on behalf of the Corporation. Division 6A of the Strata Titles Act outlines the requirements for those who are handling the money on behalf of the Corporation, which includes Section 36H – Audit of trust accounts, which states an agent who maintains a trust account must has the accounts audited by an auditor and Section 40 of the Strata Titles Act outlines that proper accounting records should be kept in respect of its receipts and expenditure. These statements should also be presented to owners at each Annual General Meeting.
This post appears in Strata News #463.
Carrie McInerney
Horner Management
E: carrie@hornermanagement.com.au
P: 08 8234 5777
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