Documents needed before AGMs

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@propell.co.za.