These questions are about strata accounts, bookkeeping and auditing in SA Strata Corporations.
Table of Contents:
- 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?
- QUESTION: Who can sign cheques? The lot owner’s son has moved into an apartment as a tenant. Can this tenant be added as a cheque signatory? Is this up to the Bank to authorise?
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.
Question: Who can sign cheques? The lot owner’s son has moved into an apartment as a tenant. Can this tenant be added as a cheque signatory? Is this up to the Bank to authorise?
A tenant has recently moved into our scheme. He is the son of the lot owner. I’m wondering who can sign cheques for the strata? Can this tenant be added as a cheque signatory or does this need to be approved by the bank?
Answer: This would be a matter first of all for the group to agree to, and second, for the Bank.
Thank you for your query regarding who can sign for the release of funds at your Strata Corporation.
I’m not sure what the banking practices are in terms of whether they would allow this.
Looking at it from a Strata perspective, I assume that the group’s current signatories would be Office Bearers of the group (Presiding Officer, Secretary and/ or Treasurer).
The Office Bearers roles can only be filled by Owner Members of the Corporation. The Strata Titles Act does state that the Corporation may engage a person to assist any person appointed to an office bearer position. Whether this provides for signatories or not would be a matter first of all for the group to agree to, and second, for the Bank.
These provisions may be different again should the Tenant be a Power of attorney or another representative of the Owner in question.
(1) A strata corporation must have the following officers:
- (a) a presiding officer (to preside at meetings of the corporation); and
- (b) a secretary; and
- (c) a treasurer.
(1a) Unless all of the units comprised in the strata scheme consist of non-residential premises, the officers of a strata corporation must be unit holders.
(2) Any two or more of the above offices may be held simultaneously by the same person.
(3) Until the first appointments are made to the above offices, they will be held by the original proprietor (or, if the original proprietor is a body corporate, by its nominee or in the absence of a nominee, by its secretary).
(4) Appointments to the above offices must be made by the strata corporation at a general meeting of the corporation.
(5) A strata corporation must not allow any of the above offices to remain vacant for more than six months.
(6) A strata corporation may appoint or engage a person to assist any person appointed under this section as an officer of the corporation.
This article is not intended to be personal advice and you should not rely on it as a substitute for any form of advice.
This post appears in Strata News #197.
Have a question or something to add to the article? Leave a comment below.
- SA: Q&A Is the Presiding Officer like a Chairperson?
- SA: Q&A No Officers of the Strata Corporation at our Small Scheme
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