At times new Owners may not understand where their Body Corporate levies go and may assume that their levies are paying only for the Body Corporate Manager. However, your levies cover the costs for everything that it takes to maintain your Body Corporate scheme annually and into the future.
Your Body Corporate Committee set your levies based on the infrastructure and facilities within the scheme, maintenance requirements, age of the property and the future direction of asset management. These annual levies can be classified into the administrative fund and the sinking fund.
This is primarily to cover the annual day to day running costs of the Body Corporate such as cleaning, grounds maintenance, pool chlorine, electricity for the common area and insurance.
This is to pay for non-recurring capital expenditure items of the Body Corporate such as painting, re-roofing the building(s), intercom replacement, resealing the driveway etc. The sinking fund is used to maintain a reserve of funds for these future capital expenses. The projected reserves and required contribution amounts are determined generally by experienced consultants within a Sinking Fund Forecast report.
An annual budget is established for the administrative fund and the sinking fund each year. Each of these budgets considers the projected expenditure of the Body Corporate and the projected reserves. At the annual general meeting all Owners consider, then accept or reject the budgets for the ensuing year. The income for this budget is to be contributed to by all the Owners on a pre-determined basis, known as a lot entitlement. Lot entitlements (contribution and interest) for each lot are contained within the Community Management Statement (CMS) registered upon formation of the Body Corporate.
Every Owner pays Body Corporate levies, and they are based on these budgets.
An important aspect of Body Corporate Management is to collect money from Owners to ensure the Body Corporate can pay its bills. At SSKB we have a detailed arrears process to assist your Body Corporate’s cashflow. We provide Owners with reminders if they miss the due date, and if the levies are still unpaid, we follow a system to bring the money in as quickly as possible to ensure the Body Corporate has the cashflow it needs to meet its commitments.
Levy notices are prepared by the Body Corporate Manager and sent to each Owner, often on a quarterly basis, although each scheme may differ. It is imperative to ensure prompt payment is made so that the cash flow of the Body Corporate remains consistent to meet its expenditure requirements. For this reason, some Bodies Corporate offer a discount to ensure the prompt payment of levy contributions.
SSKB is engaged by your Committee for an agreed fee to attend to the secretarial and financial functions on behalf of the Body Corporate and this is detailed in the SSKB Adminisration Agreement.
This involves preparing meeting documentation, attending the required meetings and ensuring the actions from those meetings are attended to and recorded. The minutes of all meetings and decisions of the Body Corporate are also maintained to ensure a full and accurate record of the history of the Body Corporate and made available to all Owners via the SSKB online portal.
Services may include matters such as the preparation of proposed budgets, convening, sending notices for and attending the annual general meeting, in addition to forwarding minutes to all Owners. SSKB also provide these same services for Committee meetings held by your Body Corporate.
In addition, SSKB attends to routine correspondence and assists your Body Corporate in ensuring that they are compliant with legislative issues.
The Financial Team at SSKB looks after financial matters including opening and operating the strata community’s bank account, attending to payment of accounts, issuing contribution notices to lot Owners and receipting those payments. We also carry out reconciliation of the accounts and preparation of financial statements at the end of each financial year, as well as obtaining quotations for the renewal of the Body Corporate’s insurance.
If you have any concerns regarding your personal circumstances, your Community Manager will be able to assist you.
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