Why Accurate Financial Records Matter for Strata Schemes in NSW

It’s imperative that the financial records of a strata scheme are accurate and provide clear, concise information for owners and their strata management team. Financial reports are one of the key decision-making tools for an Owners Corporation when planning budgets, setting levies, and considering future capital works.

Key Financial Reports

The most important financial reports for a strata scheme include:

• Balance sheet
• Income and expenditure statement
• Detailed expenditure report
• Levy position statement for each owner within the strata plan

Legal Requirements

It’s not just common sense to keep accounts up-to-date—the law requires it. The Strata Schemes Management Act 2015 and the Property and Stock Agents Act 2002 outline specific requirements for financial records and trust funds. Section 93 of the Act requires:

• A separate statement of income and expenditure for the administrative fund, the capital works fund (the fund formerly called the sinking fund) and any other fund the owners corporation keeps
• The balance carried forward from the previous period
• Details and amounts of each item from the fund during the period
• The cash in the fund at the end of the current period
• The contribution determined for each person liable to pay one, and the balance still outstanding on each

What Changed in the Recent Reforms

Two changes are worth knowing if you sit on a committee:

• Records every six months. A strata managing agent must give the owners corporation a copy of the records kept for the preceding six months, every six months (section 55(2)). You should not have to ask.
• Inspection and fees. Where documents are made available electronically, the access must be secure, and the regulations may prescribe a maximum fee for inspecting records, whether in person or electronically (section 183).

Metro Strata’s Approach

At Metro Strata, we go beyond the minimum requirements. Our team provides interim financial statements at regular intervals to assist treasurers. We also offer committee members secure online access to the latest reports through our dedicated portal.

We’ve invested in advanced strata management software that can generate over 30 different financial reports. This allows us to manage properties effectively, respond promptly to requests, and even create customised reports when required.

Final Word

Accurate, transparent financial reporting builds trust, supports smart decision-making, and helps maintain the financial health of your building. With Metro Strata, you can be confident that your scheme’s finances are managed with care and precision.

Source: Strata Schemes Management Act 2015 (NSW), sections 55, 93 and 183.