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We have a building of 55 lots and our last monthly building status report showed we had about $4,000 available funds. We have a SC of 8, with no office bearers as the SM told us they were not required. Most of the 8 will not even reply to an email, however 3 of us are very concerned. I have looked through the SSM Act but can not find no mechanism to force the SM to have an audit completed. Is there some way we can do this?
Office-bearers are required by law but it may just mean that your strata manager is fulfilling those roles.
Under Section 95 (below), if your scheme has a turnover of more than $250,000 a year, an audit is mandatory. Otherwise you can get a simple majority at a general meeting to demand one.
(1) The owners corporation for a large strata scheme, or a strata scheme for which the annual budget exceeds $250,000 (or another amount prescribed for the purposes of this section by the regulations), must ensure that the accounts and financial statements of the owners corporation are audited before presentation to the annual general meeting.
(2) The owners corporation for any other strata scheme may determine that the accounts and financial statements of the owners corporation are to be audited.
(3) An audit of the accounts and financial statements of an owners corporation under this section must be carried out in accordance with the Australian Auditing Standards.
(4) The regulations may specify the manner in which the annual budget of a strata scheme is to be determined for the purposes of this section.
I’d be really worried that a building of 55 units has only $4000. An audit might not find any impropriety or errors in the accounting but you really should have more than that accumulating for planned maintenance. I.e. a sinking fund plan. Not sure how the NSW legislation puts it now but I expect it is not so different from the ACT, where an OC must have a sinking fund plan adopted by general meeting resolution and must review it at least every 5 years.
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