Audit Services for JMBs and Management Corporations
Joint Management Bodies (JMBs) and Management Corporations (MCs) have specific financial management and reporting responsibilities associated with the management of stratified properties.
ST & Partners PLT provides audit and accounting services for strata management organisations and assists management committees in understanding their financial information and reporting requirements.
Areas Covered in the Audit
Depending on the circumstances, audit procedures may include consideration of:
- Maintenance account
- Sinking fund
- Service charges
- Sinking fund contributions
- Management expenses
- Property maintenance costs
- Contractor payments
- Utilities
- Insurance
- Payroll
- Bank accounts
- Arrears
- Special collections
- Capital expenditure
- Major repair and replacement projects
Maintenance Account and Sinking Fund
One area that commonly requires attention is the distinction between expenditure funded from the maintenance account and expenditure relating to the sinking fund.
ST & Partners has published guidance explaining the distinction between service-charge expenditure, sinking-fund expenditure and capital expenditure in the context of strata management.
The appropriate accounting treatment should be considered based on the nature of the expenditure, applicable requirements and the relevant resolutions or management arrangements.
Clear Financial Reporting
An audit is not simply about checking figures.
For JMBs and MCs, clear financial records can help committee members and parcel owners understand:
- Where funds have been collected
- How funds have been used
- Outstanding amounts
- Major expenditure
- Maintenance costs
- Sinking-fund balances
Looking for a JMB or MC Auditor?
If your JMB or Management Corporation requires an auditor, contact ST & Partners to discuss the property, number of parcels, accounting records and expected audit scope.