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  • #54819
    Mailbox
    Flatchatter

    I live in a complex of about 30 units in Queensland. We asked for a financial reports and it’s very strange

    There is $16,000 for water in arrears while the  manager’s wage not in the report report

    We want to get  strata audited. How do we go about it?

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  • #54840
    Jimmy-T
    Keymaster

    I received a brief note yesterday saying the issue had been “resolved”.  No suggestion of how or what the outcome was, so if you were hoping for some guidance, we’ll just have to live with the reality that some people think this is a one-way street.

    #54830
    TrulEConcerned
    Flatchatter

    Mailbox wrote:

    There is $16,000 for water in arrears while the  manager’s wage not in the report report.
    We want to get  strata audited. How do we go about it?

    Forgive me, but I don’t think you want an audit (if QLD audits are as uninformative as those south of the Tweed). You want to get to the bottom of how much is being paid and for what, surely?
    I (in NSW) used to be a Treasurer of a large complex and while auditing was an annual event, I found it to be a waste of my time and everyone’s money, as it filled those seeking an audit with a false comfort of what was going on. I chose to provide detailed information to owners , see “journals” below.
    An audit typically involves an accountant or similar going through the strata’s accounts by picking out a few items, a “sample”, of payments and receipts, and determining if, for instance a payment legitimate. And I mean a “few”, an audit is rarely comprehensive.
    So say there was an overdue bill of $16,000 for water. And the accountant picked up that document. He/she would ferret for documents to substantiate that amount eg an invoice or several invoices or a reminder letter from the water company and presumably a debit on the bank statement, if the amount was paid. If all of these are provided to the auditor, then the issue is settled. It passes the audit test because the bill can be substantiated by paperwork. This of course does not mean the details listed in the paperwork are accurate.
    If I were you I suggest you ask the strata manager to email you the CASH PAYMENTS and CASH RECEIPTS JOURNALS from 01/01/2019 to date.  These reports list LINE BY LINE  money going in and out of the strata’s accounts. Usually these reports have minimal explanations, but do inform who was paid and often “why”. If a line item piques your interest, then you should ask for documents related to that ie invoices, minutes or emails.

    Simultaneously, you should ask for copies of ACCOUNT PAYMENTS JOURNAL and ACCOUNTS RECEIVABLE JOURNAL. These are listing of what is owed by the strata and to whom as well as how much the strata is owed and by whom.

    After you wade through those papers, table a list of “queastionable” entries for which you want more information. Your list should ape the wordings in the journals (ie date, party concerned, amount, commentary (if any), amount etc” and specifically ask the agent for invoices, minutes, correspondence and emails related to those entries.

    If the agent replies that there is a fee attached to him/her replying, as some do when they want questioners to vanish, ask the agent to indicate where in the management agreement is that fee stipulated.

    Good luck.

     

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