Financial reporting
The following information is relevant to schemes registered under the:
- Standard Module
- Accommodation Module
- Small Schemes Module
- Commercial Module
Schemes registered under the Specified Two-lot Schemes Module do not have any financial reporting requirements.
Reporting to the committee
A body corporate can engage a body corporate manager that is authorised to operate the bank account.
A body corporate manager who pays an bill that has been approved by the committee must (if asked) give the committee a written report on the payment.
This does not apply if the body corporate manager is engaged in place of the committee (under chapter 3, part 5 of the standard and accommodation modules).
Only under a Standard Module must a committee member give a written report (if asked) when they are acting on a committee decision and the spending is:
- routine administration
- under $200.
See the role of a body corporate manager for more information.
Reconciliation statements
A body corporate manager must prepare a reconciliation statement if they administer the body corporate’s administrative fund and sinking fund.
Under the Commercial Module the body corporate manager must also prepare a reconciliation statement for the promotion fund (if there is one).
The reconciliation statement must be prepared within 21 days from the last day of each month. The statement is for each account kept for the funds.
The statement must reconcile (or match up):
- a financial institution statement showing the amounts paid into and from the account during the month
and
- invoices and other documents showing payments into and from the account during the month.
If there is no body corporate manager the body corporate may require, by ordinary resolution at a general meeting, the treasurer to complete the reconciliation statement.
When a manager’s contract ends
A body corporate manager, who administers the administrative and sinking funds (or promotion funds for schemes under the Commercial Module), must give financial records to the body corporate when their contract ends (i.e. the termination date of their contract).
The records they must provide for each fund they administer are:
- a balance sheet as at termination date (if required by the body corporate)
- income and expenditure statement for the financial year in which the termination day falls
- a list of all amounts owing to, and payable from the fund as at termination date
- a reconciliation statement for the account or accounts for the most recent full month before termination date
- details of the most recent notice given to each lot owner for a contribution payment or contribution instalment
- a record of all contributions, or instalments, paid by lot owners during the financial year of the termination date
- any other financial record held by the body corporate manager on the termination date, (e.g. financial institution deposit books).
Time limits
The manager has up to 30 days after their contract ends to give the body corporate these financial records.
However, during those 30 days, the committee can give notice to the manager asking for return of all body corporate’s records and property. If a notice is given, the body corporate manager has 14 days to return all the records and property.
Read more about returning records.