Doc­u­ments needed be­fore AGMs

Weekend Argus (Saturday Edition) - - PROPERTY -

CER­TAIN doc­u­ments must be pre­pared be­fore sec­tional ti­tle an­nual gen­eral meet­ings by the trustees, usu­ally with the help of the man­ag­ing agent, and they must be 100 per­cent ac­cu­rate, says Jo­hann le Roux, ex­ec­u­tive di­rec­tor of Pro­pell.

Th­ese doc­u­ments will usu­ally in­clude a bud­get with the ex­pected in­come and ex­penses for the next fi­nan­cial year, au­dited fi­nan­cial state­ments for the pre­vi­ous fi­nan­cial year and a trus­tee re­port signed by the chair­man of the scheme.

The in­come state­ments should in­clude ma­te­rial and non- ma­te­rial ex­pen­di­ture. Of­ten the ma­te­rial ex­penses will be noted, but the non­phys­i­cal ex­pen­di­ture may be missed, says Le Roux.

“The ma­te­rial ex­penses should be bro­ken down and de­scribed in de­tail to im­prove on the bud­get­ing ac­cu­racy. In t he f i nan­cial s t at e ments, monthly man­age­ment ac­counts must be drawn up.”

Any dis­crep­ancy be­tween the ac­tual ex­pense and the budg e t e d a mount “s hould be an­a­lysed item for item”.

The fi­nan­cial state­ments should be pre­pared in the gen­er­ally ac­cepted ac­count­ing prin­ci­ple for­mat, as pre­scribed by the SA Rev­enue Ser­vice and the Sec­tional Ti­tles Act. It is also im­por­tant for the trustees to have com­par­a­tive state­ments to spot any anom­alies.

Call Jo­hann le Roux on 0861 3 3 3 4 3 5 o r e - mail hi m a t jo­hann@pro­

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