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Treasurer and Financial Management

Thursday, December 22nd 2011

The role of treasurer is intimately connected with financial management of the complex.

The treasurer’s role is to be responsible for the financial management. If a body corporate manager is employed, most of the actual financial management will be conducted by them in their office. A wise treasurer will be actively interested in the reports produced by the body corporate manager and be a constructive questioner of any recommendations that require additional expenditure, particularly items not in the budget.

Reconciliation Statements

Under Section 101A of the BCCM Act the treasurer, if there is not a body corporate manager for the complex (and if the complex decides by ordinary resolution that they require it), is responsible for preparing a reconciliation statement each month.

The reconciliation statement has details of the amounts paid into and from each account run by the body corporate during the month. It is to be prepared within 21 days after the end of the month.

More information on financial management requirements is available in the handout “Financial Management” available from the Commissioner’s Office phone 1800 060 119 or website www.justice.qld.gov.au/bccm

Specific and Implied Duties of Treasurer

  • Budgets and accounts to be prepared on the basis of the new financial year
  • Sinking fund budget to be prepared for current year plus 9 years
  • Committee may levy an interim contribution to maintain funds in account and to conform to the  financial year
  • Committee may reimburse member expenses up to $50 or to a maximum of $200 in a year (or for remuneration costs if the committee member who had required a specific remuneration amount as a condition for committee nomination)
  • Committee spending limit on projects is adhered to.
  • Major spending limit is to be adhered to. If the project is going to cost more than the major spending limit, the matter must be considered as a motion with alternatives at general meeting supplied with 2 quotes.
  • Accounting information should be supplied with the annual accounts including items that are cash basis (may include contributions in advance/arrears and penalties, bank balances, outstanding receipts/payments) and accrual basis may include above items plus year-end assets/liabilities.
  • Improvements by owners – minor (up to $3000.00 or less “installed value) can be approved by the committee. More expensive improvements are approved by special resolution.
  • Body corporate improvements – ordinary resolution up to $300 by number of lots, more expensive improvements are by special resolution
  • Calculate each owner’s share of insurance premiums and any excess on insurance payouts. Insurance premiums are allocated on the basis of interest schedule lot entitlements for BFP complexes. SFP complexes have slightly different insurance requirements. See the Insurance handout from the Commissioners Office Phone 1800 060 119
  • Levy contributions notices on owners – fix payment date and levy at least 30 days prior to due date
  • Calculate the amount of any discount allowed (general meeting can decide discounts up to 20% for payment on time and penalties up to 2.5% per month. This early discount and late penalty process is recommended by the people behind www.bodycorporatematters.com.au)
  • Take action to recover unpaid contributions, installments or penalties
  • Allocate payments received against contributions and where there are arrears allocate payments against penalties, then contributions then recovery costs
  • Ensure payments received are paid correctly into either the administrative fund or the sinking fund and placed in the body corporate’s bank account (can be at a bank, credit union or building society. The account must be in the name of the body corporate)
  • Invest any surplus funds in trustee investments, as decided by the body corporate
  • Make payments only from the body corporate bank account
  • Keep the books of account and accounting records
  • Prepare the statement of accounts
  • Charge owners for special services where there are any or for work done on their behalf or for any payments due under exclusive use by-laws
  • Assist in preparing ‘body corporate information certificates” BCCM Form 13
  • Collect fees for inspections of body corporate records, providing copies of those records or providing information certificates.

 

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