Income Statement Detailed Assessment Income Statement 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. Income Statement Body Corporate/Complex/Property Name/Home Owners Association Name of Responsible Party/Trustee/Director/Estate Manager: Are the macro trends/variances in expenditure and revenue of the Community Scheme tightly monitored so that any adverse situations can be stopped/reversed/dealt with? * Yes - revenue and expenses are very tightly monitored so that adverse trends and variances can be dealt with timeously. Yes to a large degree – trends and variances are well monitored but action is not as swift as it should be. Yes to some degree – trends and variances are monitored but not as pro-actively as they should be. No, not really - lip service is largely paid to this aspect. No, not at all - there is no monitoring of trends or variances. Everything is a surprise. Don't know/Can't establish Are the level of levies sufficient to cover the level of operating expenses in the Community Scheme? * Yes - the levies are set to provide a comfortable cushion over and above the level of their budgeted expenses and thus enable them to grow their reserves.. Yes - the levies are covering the expenses with some small cushion. Profitability and margins are largely static. While revenue has increased, so too have the expenses. The levy base is barely covering expenses. The levy base is woefully low and unable to cover the level of expenses. Don't know/Can't establish Has the Community Scheme been able to reflect a budget surplus over the last 3- years? * Yes - on a consistent basis Yes - but has not been consistent No, not really - surplus largely due to delayed spending/under-spending/non-spending No, not at all Don't know/Can't establish How are common area expenses of the Community Scheme recovered? * Participation Quota formulae Flat percentage/Proportional allocation Negotiated amount No real scientific formula/basis Don't know/Can't establish Not Applicable Is this working for the Community Scheme? * Yes To a degree They are faced with on-going objections/resistance No - they are faced with major resistance and shortfalls as a result Don't know/Can't establish Is there specific financial oversight over key expenses e.g. debit orders, utility accounts, maintenance, insurance and bad debts, creditor payments and the recovery of insurance claims and/or the recovery of excesses from owners/lessees where applicable? * Yes - This is done pro-actively by Trustees/Directors over and above the reliance on Managing Agent/Accountant/Auditors/Estate Management. Yes - by Trustees/Directors but we are not always consistent/sufficiently diligent. Yes, to some degree but we are very re-active and need to do more here. No, not really. There is total reliance on the Managing Agent/Estate Manager/Accountants/Auditors/Third parties. No, not at all. Don't know/Can't establish Are all ancillary revenue/income charges and recoveries (other than levies) being recovered from owners and lessees where applicable e.g. facilities usage, leasing/rental costs of units and outsourced facilities, cell phone mast rentals, advertising billboard rentals, water usage, electricity/gas usage, additional parking/mooring, recoverable meal charges, satellite TV, fibre connectivity, fines in respect of rule violations, insurance excesses, additional security services, frail care/nursing services etc.? * Yes. Given the extent and reliance on these, strong processes and controls are in place around this. Yes to a large degree. Yes, but some recoveries continue to fall through the cracks/not all dues are being recovered. No, not really. We are weak in this area and are losing considerable revenue here/ we face considerable outstanding dues in these areas. No, not at all. Our controls around this are very weak/non-existent. 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
