Strata Financial Review
Whether you own a title in a two lot subdivision, or in a multi-storey apartment building, you need to know that your strata levies are being spent properly.
In many cases, the majority of owners are happy to simply accept where their levy money goes, without knowing if the strata funds are managed effectively. That’s when Abacus Strata can assist.
We offer lot owners’ confidence that their capital investment and regular cash flow are being managed properly, or we advise them what areas need to be reviewed.
Abacus Strata provides an in-depth review of the strata finances, uses of funds, reporting and management for strata complexes. We prepare a Strata Financial Review Report that summarises the key financial areas and rates the risk of inappropriate activity. The report gives strata lot owners’ confidence that their complex is being managed properly, or provides them with suggestions on what items need to be addressed.
Strata Financial Review FAQ’s:
You may still have some questions about what is a Strata Financial Review and whether you need one.
Below are our most commonly asked questions and answers to them. These questions and answers will give you an idea of whether our services are right for you.
Question 1: What is a Strata Financial Review?
A Strata Financial Review is a detailed review of the finances of your strata community. It consists of detailed questions that help us to analyze the financial management of your community. The review checks recent financial statements, who has authority to make financial decisions and what type of reporting is given to you by your strata manager.
Question 2: How often should I get one done?
Initially, we recommend you only get the most recent financial year reviewed. The results of that review will help the committee decide if they want to review previous years.
Question 3: What is an audit and what is not an audit?
There’s a lot of confusion regarding what an audit is and isn’t. Firstly, the purpose of an audit is to determine whether the information in the financial report reflects the true financial position of the organisation. An audit is a systematic review of sample information. It is designed to check compliance with the process and procedure of the organisation.
An audit is not designed to detect or deter fraud. An audit is undertaken using selective testing methods and only looks at a small number of transactions. An audit does not review the actions of the committee nor does it provide commentary on the appropriateness of decisions taken by management.
Question 4: We get audited every year. How is a Strata Financial Review different?
A Strata Financial Review is not an audit. It looks at the non-financial information as well as financial information. For example, an audit will confirm if the community has insurance. The Strata Financial Review will ask the committee to provide details of the process they undertook before accepting the current quote. This is important as the cheapest quote may have multiple exclusions and is not necessarily the best policy for every community.
Question 5: Our Strata Manager says a Strata Financial Review is not needed. Should I still get one done?
A lot of Strata Managers recommend our services. It’s our opinion that any Strata Manager that recommends an independent third party review of the finances of a community they manage is more likely to be doing a good job with your money than a Strata Manager who doesn’t want the review. Yes, we recommend you get a Strata Financial Review, whether even if your Strata Manager says it’s not needed.
Question 6: Our Strata Manager has recommended we get a Strata Financial Review. What’s next?
Question 7: What information do you need to do the Strata Financial Review?
In a word – lots! We have a detailed questionnaire that needs to be completed with a list of information that needs to be provided. Click here to request the Strata Financial Review questionnaire or call us on 1300 ABACUS or email us at firstname.lastname@example.org.
Alternatively, we can post one to you. Please click here to request a copy to be posted to you.
In addition to the information asked for in the Strata Financial Review questionnaire, you can expect at least one phone call from one of our reviewers to clarify questions we may have after reviewing your information.
Question 8: What happens if my Strata Manager will not provide the information?
We can still complete the review without the cooperation of your Strata Manager. However, it is more difficult, takes more time and raises the question as to why your Strata Manager doesn’t want to disclose information about the community finances.
Question 9: How long will it take to complete the Strata Financial Review?
Question 10: How much will it cost to get a Strata Financial Review done?
The cost of the Strata Financial Review depends on a number of factors. Such as, the number of lots in your community, how many bank accounts you have, how many suppliers you use, whether the community is registered for GST… to name a few.
The Request for Quote has cost estimates depending on the size and complexity of the community.