The end of the strata schemes financial year (EOFY) is a critical time for strata committees to review their scheme’s performance, ensure compliance, and plan for the future. Here are the key steps committees should undertake:

1. Financial Review

• Annual Financial Statement: Ensure the scheme’s financial statements are finalised and accurately reflect income, expenses, and balances for administrative and sinking/maintenance funds.
• Audit Compliance: In Queensland, financial audits are mandatory for certain schemes. Even where not required, audits enhance transparency and trust. In NSW and VIC, it is mandatory to undertake audits for schemes with over 100 lots.

2. Budget Planning

• Next Year’s Budget: Draft and approve a realistic budget for the upcoming financial year, ensuring sufficient allocation for maintenance, unexpected expenses, and sinking/maintenance fund contributions.
• Review Levy Contributions: Reassess the levies collected from lot owners to confirm they align with the scheme’s financial needs.

3. Sinking/Maintenance Fund Forecast Update

• Evaluate the current sinking/maintenance fund forecast to ensure it reflects upcoming capital expenditure and market conditions. A review is advisable every three years or after major works.

4. Insurance Valuations

• Confirm that insurance coverage meets the requirements for full replacement value. Regular insurance valuations are necessary to safeguard the scheme against underinsurance risks.

5. Fire Safety Compliance

• Conduct mandatory fire safety checks, including maintaining fire safety installations, updating evacuation plans, and training responsible persons annually. Proper documentation of these activities is crucial.

6. Work Health and Safety (WHS)

• Engage safety specialists to assess common property for hazards, ensuring compliance with WHS obligations. This reduces liability risks and ensures the safety of all users of the property.

7. Maintenance and Repairs

• Inspect the property for overdue or upcoming maintenance tasks. Addressing these proactively prevents costly emergencies and supports long-term property value.

8. By-Law/Rule Enforcement and Updates

• Review by-law/rule compliance and update rules to reflect the community’s evolving needs. This may include changes related to pets, renovations, or noise.

9. Preparation for the Annual General Meeting (AGM)

• Finalise documents such as the financial statement, budget, and committee nominations for presentation at the AGM. Transparency during the meeting strengthens community engagement.

10. Professional Support

• Consider engaging strata management professionals or auditors to handle complex tasks effectively, ensuring compliance and robust financial health.

These measures ensure a smooth EOFY transition, compliance with legal obligations, and a well-prepared community for the year ahead. balance their private property interests with community obligations, contributing to the shared upkeep of the property while managing their investment.