Governance and Oversight Detailed Assessment Governance and Oversight Note to the user This assessment is intended to assist existing and prospective Trustees/Directors/Estate Management/Office bearers/Third Party Managers of Body Corporates/Home Owners Associations/Retirement Villages or Shareblock Schemes (Community Schemes) to identify the existing level of governance, areas of weakness/vulnerability and the risks in these bodies and to offer advice on how to better manage these risks and improve overall governance. This assessment will also assist in helping Trustees/Directors/Estate Management/Office bearers/Third Party Managers in carrying out their fiduciary roles and responsibilities. Governance and Oversight Body Corporate/Complex/Property Name/Home Owners Association Name of Responsible Party/Trustee/Director/Estate Manager: Does the Community Scheme have a clear culture and value system that is known and bought into by all owners and residents? * Yes – we have a very clear culture and value system which is well bought into by all owners and residents Yes to a large degree - there is a large degree of buy in but not by all owners/residents. Yes, to some degree - the culture and values are not all shared and this is an on-going struggle for Trustees/Directors/Estate Management. No, not really – while we have a culture and values these have not been inculcated or pushed. No - while this is desired, no efforts have been made to instil or entrench these. No, not all - we have no culture or value system. Do the Trustees/Directors/Developers/Estate Management have clear planning steps to achieve the shared values/desired outcomes and objectives they want, need or require in the best interests of the Community Scheme e.g. desired conduct, clear financial goals, state of the complex/property, continuity of operations, type of living environment desired, levels of maintenance, desired reputation, environmental standards etc.? * Yes – we have shared values and comprehensive firm plans and clear achievable objectives in place to ensure these are achieved, maintained and instilled in all key areas. Yes, to a large degree - while we have shared values and firm plans in place, these are not consistent or in place for all areas. Yes to some degree - values are not all shared and while we have some plans in place, nothing is formalised/mixed messages are being sent out. No, not really – while shared values and objectives have been discussed/are desired, there is no formal plan in place. No - while clear objectives and shared values are sought/desired, there is dissent/disagreement/no consensus around these among Trustees/Directors/Owners/Developer/Estate Management. No, not all - no shared values or objectives exist/nothing is in place/strategic planning is non-existent. Is the Community Scheme a going concern at all times? * Yes, consistently so. Yes largely, but there have been times where deficits/reserves had to be funded./replenished. No, not really. The Community Scheme is largely in survival mode. No. Consistently technically insolvent and/or reliant on bridging loans and/or special levies. Don't know/Can't establish Does the Community Scheme have a Memorandum of Incorporation (MOI) or formal Constitution in place where necessary/required? * Yes - in place, reviewed and updated regularly, formally constituted by members/ owners/ shareholders Yes, to a degree - while there is an MOI/constitution in place, the documentation needs adaption/updating/refreshing No, not really. While documents are in place, they are grossly inadequate/deficient/obsolete/dated for our current requirements or situation/not formally constituted No, not at all. Totally lacking/nothing in place/nothing formalised Not applicable/not required Does the Community Scheme have a functional board of Trustees/Directors/Office Bearers and clear leadership at all times? * Yes - full complement of fully functional Trustees/Directors at all times under leadership of an elected Chairman Yes to a degree - largely functional but insufficient in number/limited leadership by Chairman Yes, to some extent - limited functional representation/heavy reliance on co-opted members/no clear leadership No, not really - elected office bearers in place but there is a total breakdown in trust and/or relationships/now totally dysfunctional as a result/we need to revert to executive management No - we consistently don't have functional elected Trustees/Directors in place/we always have unfilled positions/largely dysfunctional with no clear leadership No, not at all - consistently not in place and totally dysfunctional as a result/non existent leadership/we will probably have to revert to having executive management appointed Don't know/Can't establish Does the Community Scheme have an adequate/sufficient complement of Trustees/Directors? * Yes - we have sufficient Trustees/Directors for a Community Scheme of our size/complexity Yes largely, but additional skilled resources would be helpful No, not really - for a Community Scheme of our size/complexity we are underweight No - we definitely need additional Trustees/Directors No, not at all - we are hopelessly under-represented/suffer from on-going resignations Don't know/Can't establish Do the Trustees/Directors/Estate Management/Office Bearers have the required understanding of the Community Scheme, its assets, obligations, revenue, expenses, management dynamics and the prevailing regulatory environment? * Yes – required skills matched with solid induction/familiarisation and training programme in place Yes - to a large degree/mentoring from Trustees/Directors/some training Yes - to some degree/some have limited knowledge/familiarisation is provided No, not really - very limited to non-existent knowledge/familiarisation while in the role No, not at all – is largely a baptism of fire for everyone Don't know/Can't establish Do the Trustees/Directors/Estate Management/Office Bearers have clearly defined functional oversight responsibilities e.g. Finance, Operations/Facilities, Rules, Maintenance, Security? * Yes - formally defined, allocated and documented Yes to a degree - allocated responsibilities but not sufficiently formalised No, not really - team effort/joint responsibilities No, nothing in place - things continually fall through the cracks Don't know/Can't establish Do the Directors/Trustees hold a current/applicable documented comprehensive Operations Manual which includes clear deliverables, and which is enforced and followed for all processes and procedures in the Community Scheme e.g. maintenance, access controls and procedures, handling of crime incidents, procurement of materials and services, security monitoring routines, payment approvals, revenue recovery, insurance claims, emergency service call outs, imposition of conduct/house rules, evacuation/fire emergency procedures, employee engagement/disciplinary processes? * Yes - comprehensive up to date manual is held and laid down processes/procedures rigidly followed and enforced. Clear deliverables and Service Level Agreements (SLA's) are in place. Yes to a large extent - manual held but some deviations from time to time. Deliverables are not all clear. Yes to some degree - stale in parts/not fully documented/not always followed in some areas. Deliverables not in place for all areas. No, not really - very stale/poorly documented/not really followed/very few measurables in place. No, not at all - not documented/nothing formalised/nothing in place. No deliverables or measurables in place. Don't know/Can't establish Does the Trustee/Directors body have a representative demographic mix - age/sex/race? * Yes - very representative/requirement of the Community Scheme Yes - to some extent Yes - but very limited/not sustainable/not practical No, not really - we haven't really considered this/select from available resources No, not at all - we have seen this as important/not a consideration Are background checks undertaken or done to establish if all trustees/directors or office bearers are fit and proper and should not be disqualified e.g. due to sequestration/insolvency or criminal record/prosecution? * Yes - thorough independent checks consistently undertaken Yes to some degree - could be far more thorough No, not really - we rely totally on the honesty/integrity of the individuals in question No, not at all Don't know/Can't establish How stable and committed is the Trustee/Director/Estate Management/Office Bearer body? * Yes, very stable - long serving and hard-working/dedicated/go the extra mile Yes pretty good - is room for more involvement Fairly stable - need more stability and greater commitment from some Unstable - we battle to get Trustees/Directors and are forced to co-opt/lack of commitment and required involvement from many No, not at all - regular and high turnover/resignation of Trustees/Directors with positions often unfilled/very low commitment and involvement Don't know/Can't establish Does the Community Scheme have any Trustees/Directors that are overbearing, are very strong personalities, have bullying tendencies, dominate meetings, lobby support from owners, who try and influence decisions or who force their views on other Trustees/Directors or Owners? * No, not at all – we have objective and democratic office bearers and don’t tolerate this type of behaviour No, not really – where this type of behaviour manifests itself, it is not accepted Yes, to some degree – we have some domineering office bearers Yes – we appear to be dominated by one or two long service office bearers who largely get their way Yes, definitely – we have an office bearer who completely dominates and acts with autonomy Is there a turnover/change/rotation in the Trustee/Director body as recommended in the Companies Act and/or prevailing regulations/the prevailing constitution/as set out in the MOI/in line with best practice? * Yes, we have entrenched this requirement/the retirement of Directors/Trustees as part of our constitution/laid down rules/good governance/best practice. Yes, to a large degree - we endeavour to ensure this is adhered to/try and enforce this aspect. No, not really. We have been forced to allow extended terms of Trustees/Directors due to a lack of appropriate candidates. No- we battle to get new Directors/Trustees and are forced to allow/accept the status quo by default. No, not at all - we are totally out of line here. Do the Trustees/Directors/Estate Management/Office Bearers act ethically and in good faith, not in their personal interests, negligently or outside their powers, at all times? * Yes - at all times Most of the time No, not really - often act in their own best interests No - on-going unethical conduct/acting in own interests Don't know/Can't establish Where Trustee/Directors meetings take place (physically or virtual), are these being held with at least two Trustees/Directors being present? * Yes - always Yes, to a large degree - normally/often have early departures of Trustees/Directors/meetings not concluded No, not really - apologies see many meetings being cancelled at the last minute No, not all - scheduled meetings hardly ever take place despite being scheduled Don’t know/can’t establish historical attendance Is there a focus on ensuring continuity in the Community Scheme in respect of Trustees/Directors/Estate/Management, levies, financial accounts, budgets, contractual issues, communication, day to day administration and operations? * Yes, business continuity is a key focus. Yes, but not all areas have been considered. No, not really - only a limited number of areas have been considered No, not at all - this has received no focus or attention and we are very vulnerable here. Don't know/Can't establish Are Trustees/Directors/Office Bearers/Estate Management required to provide regular written declarations of interest to ensure there are no conflicts of interest? * Yes - these are also required to be recorded and minuted at every meeting and this extends to staff and service providers Yes to some degree - procurement policies are in place to try and control this No not really - some controls are in place but these are often bypassed No - not considered/monitored at all Don't know/Can't establish Do the Trustees/Directors/Estate Management/Developer/Operator carefully maintain and manage the assets (fixed/moveable assets and current assets) of the Community Scheme? * Yes very much so. We see the management of our assets as crucial. The condition of assets are routinely checked up on (e.g. to prevent damage or breakdowns), a detailed asset register is kept and there is clear accountability for assets and consumable stocks. Yes, to a large degree. We keep a fairly close watch on our assets, such as checking the existence and condition of assets, but this needs more focus. Yes to some degree. Major assets are managed but this does not extend to all assets. Large reliance on Estate Manager/third parties to control other assets. No, not really. The major assets are monitored but the condition and state of most assets is generally poor. No, not at all. No one is taking responsibility for this/there is also abuse of Community Scheme assets e.g. private usage/theft/allowed to deteriorate/unmaintained. Don't know/Can't establish Does the Community Scheme hold the appropriate insurance and has the all-risk insurance policy been reviewed every three years? * Yes Yes to some extent - subject to heavy excesses Yes but review is long overdue No Don't know/Can't establish Has the potential liability of the Trustees/Directors been established? * Yes No, not really/haven't concerned themselves No - haven't considered this Don't know/Can't establish Are secretarial services being provided to the Community Scheme and are these professional and procedurally correct? * Yes - these are undertaken by a nominated Trustee or Director/the Managing Agents/Developer or Operator/Estate Management representative. Meetings are well organised, minutes are accurate and the required procedures and notices are well managed. Yes. This is handled randomly by both the Managing Agents/Developers/Operators and Trustees/Directors/Office Bearers but could be improved. Yes to some degree. Minutes are not always accurate, procedures are not followed and notices are incomplete/go out late. No, not really. Minutes are not accurate and procedures around notices often don't comply with the act. No, not at all. This area is left up to the Trustees/Directors/Office Bearers and is very poorly done. Which of these below is the key risk facing the Community Scheme? * Lack of reserves/liquidity Increasing defaulting debtors Security/Crime/fraud Lack of maintenance/upkeep Natural disasters - fire, floods, landslides, high winds Trustee/Director continuity Water and/or power issues Disputes around agreements and/or contracts Conduct rule issues - bad behaviour/noise/pets/parking More than one of the above We dont have any idea of the risks facing the Community Scheme No major risks/none of the above Where the Community Scheme has an established Code of Conduct and/or House Rules in place, do these cover inter-alia resident and guest/visitor behaviour, noise, washing, use of common areas, pet compliance, traffic rules, speeding, parking, aesthetics, alterations/improvements, sub-renting, use as Airbnb, disciplinary process/fines etc? * Yes - very comprehensive. Yes but these need updating/expansion. Yes to some degree but these are very basic and limited to some aspects. No not really - enforced but remain unwritten/not documented or formalised. No, not at all - nothing formalised or in place. Don't know/Can't establish. Are the conduct/house rules and constitution reviewed on a regular basis to ensure they are current, relevant and that they comply and align with current regulations and legislation? * Yes - this is done as part of our on-going governance in conjunction with our attorneys and lodged with CSOS Yes, to some degree - but we are inconsistent in our review/updating and lodgement with CSOS. No, not really - discussed, but never formalised or lodged with CSOS. No, not at all - not being attended to/no review since inception. Don't know/Can't establish Do owners/shareholders/lessees get the required approvals and consent from the Trustees/Directors/Estate Management before undertaking any building operations, undertaking any alterations or improvements to their properties/units (e.g. kitchen and bathroom revamps, external doors/windows, airconditioning units, gas installations and do these have the required compliance certificates where relevant), deployment of generators/solar panels, drilling of boreholes/deploying water tanks, repair/maintenance requests, insurance approvals, pet requests etc and do these comply with the required Community Scheme standards? * Yes - there is high compliance with and acceptance of the requirements and approval processes. On-line tools/applications/portal access is provided for these. We are very consistent in our approach and stance. Yes to a large degree. There are minimal objections/non-adherence with the laid down approval and reporting processes. Yes to some degree but there is continual resistance and attempts at non-compliance. No not really. We experience lots of resistance and non-compliance and struggle to enforce our requirements and processes. No, we struggle to get owners to seek prior approval/follow processes/get compliance certificates and often find ourselves having to get structures removed/work re-done. No, not at all. We are faced with continuous non-compliance with approvals, processes and standards. Rectification is costing the Community Scheme. Don't know/Can't establish Are the Trustees/Directors/Estate Management consistent and transparent in their approval and ruling processes and do they personally adhere to rules and decision-making processes and not pursue private agendas? * Yes - We are very objective, consistent and transparent in our approach and stance. Private agendas are not tolerated. Yes to a large degree. While we try to be objective and consistent, there have been odd occassions where personal agendas have been pursued/inconsistent decisions were made. Yes to some degree. There have been occasions where our decisions have been inconsistent and requirements overlooked. No not really. We have experienced a number of instances of inconsistency and/or Trustees/Directors not themselves complying with rules and approvals. No, not at all. There is no consistency in approvals and rulings along with many private agendas. Don't know/Can't establish Is control being exercised over the practices or activities not permitted or not allowed or deemed undesirable being undertaken from units or dwellings in the Community Scheme - e.g. drug dealing, prostitution, dealing in stolen goods, the conducting of active commercial business, garage/yard sales, unauthorised Airbnb/short term rentals, anti-social recreational activities, religious services, band practices, day care activities, high visitor related activities etc.? * No, not at all - complete control has been lost over activities being conducted and are now faced with all sorts of issues arising from this. No – while all activities have to be approved by the Trustees/Directors/Estate Management, they are often not approached/we find ourselves turning a blind eye to these. No, not really – while there is active control in this area some exceptions have been made. Yes to a large degree - this is covered in Conduct Rules and fairly well policed by Trustees/Directors/Estate Management and security. Yes - the conducting of any activities of a commercial nature, or those that might impact on the privacy of residents/owners, create disturbance or which might increase the security risk in the property are strictly disallowed and stopped with formal warnings being issued. Don't know/Can't establish Are local bye laws being complied with by the Community Scheme/owners/tenants/users e.g. over-crowding, noise, fire restrictions, cruelty to animals? * Yes Yes to a large extent No - in some aspects No - we are faced with continuous breaches. Don't know/Can't establish Does the Community Scheme know at all times the full details of everyone who is an owner, resident or staying in the Community Scheme, including those parties who are regular contractors/service providers/servants, and who have been granted approved access to the Community Scheme? * Yes. This is extremely well managed and controlled. Our access control system and data base forms an integral part of our security controls. Yes to a large degree. We do focus carefully on this area, but we could still improve. No, not really. Our systems and records are almost always incorrect/obsolete/unreliable. No. While we have some controls in place to record these, our controls are weak and very limited. No, not at all. We have no idea who all is staying in the Community Scheme, and/or who has access. We are at great risk here. Don't know/Can't establish. Do the title deeds of properties in the Cluster and/or Home Owner's Association include conditions that owners must seek the consent of the Trustees/Directors before selling? * Yes - this is done as part of our on-going good governance to ensure that levies and/or fees are up to date and that new owner will be able to pay these. Yes to some degree but we are not consistent in the application of this. No - No - not included in title deeds or enforced. Don't know/Can't establish Are their limitations around the operations of letting and sales agents in the Community Scheme? * Yes - only accredited registered agents are allowed to operate as per contractual arrangements. Yes to a degree - agents are allowed to operate subject to certain conditions and familiarisation with Conduct/House Rules and the "Culture" of the Community Scheme. Yes - there are restrictions and limitations but these are not enforced and/or adhered to by owners. No - owners are allowed to use any agents they wish. This is handled totally in-house by dedicated sales representatives/Estate Management/employees of the Community Scheme. Don't know/Can't establish Do letting/rental agents ensure that they and their tenants comply with the protocols, disciplines and processes set down by the Trustees/Directors/Managing Agents/Community Scheme as it relates to the disciplinary code/issuing of fines and warnings, compliance with conduct rules (noise/irregular parking/over-crowding), fighting/domestic violence, access controls/visitor permissions, use of facilities, maintenance/repair reporting, insurance claims, damage to common property, sub-letting, provision of tenant details, provision of lease/rental agreements, communication with tenants etc? * Yes - we have very good relationships with letting agents and receive great co-operation and compliance with our required processes/controls and conduct rules. Yes to a large degree - we receive good co-operation from the majority of letting/rental agents. Yes - we have very mixed relationships with letting/rental agents and receive mixed co-operation. This is left entirely up to the Managing Agents to manage. No, not really. We really struggle to get compliance with our required controls, processes and conduct rules, and co-operation from letting/rental agents. No. We have continuous issues with nearly all the letting/rental agents and have a number of outstanding issues with non-compliant/rogue tenants No, not at all. Our situation with letting/rental agents not complying is placing considerable burden on the Community Scheme/is having financial implications/is heavily impacting other residents and owners. Don't know/Can't establish If you are human, leave this field blank. Submit Δ Navigation Return to Dashboard Return to Output View Return to Members Tools
