Introduction
There are a multitude of tasks that trustees need to undertake in order to manage all the legislated responsibilities for running a successful sectional title scheme. There are financial, legal, administrative and physical tasks that need to be planned out and executed by the trustees (possibly with the assistance of a managing agent). In this article, I will set out some of these statutory responsibilities that need to be handled correctly and promptly to ensure that the scheme is managed successfully this year.
Checklist
- First trustee meeting
Before the year gets busy I recommend that the trustees hold their first trustee meeting to go through this checklist and finalise all matters and projects from last year that can be brought to completion.
- Meet with managing agent
The trustees should meet with the managing agent to evaluate how the management functions will be handled by the portfolio managing agent over this next year.
- Trustees’ report
Regardless of the scheme’s financial year end or when the scheme will hold their annual general meeting I recommend that the trustees deliver the members a report that sums up pertinent management and financial matters as well as projects that are to be undertaken and completed. Good communication fosters a heathy community.
- Minutes
All minutes of all meetings held should be completed and sent before the year gets busy.
- Check budget
The trustees and managing agent should check the current status of the financial position of the body corporate to ensure that spending is still in line with the approved budget.
- Start preparing new budget
The trustees should start reparation of the annual budget comprising itemised estimates of anticipated income and expenses for the administrative and reserve fund.
- Finalise projects
The trustee in charge of physical management should establish where all projects are at and push projects that are in process to be completed.
- Pay invoices
The trustee in charge of financial management should ensure that all invoices are paid.
- Check on the status of investments and loans
The body corporate has the power to secure the repayment of moneys borrowed by it and the payment of interest thereon. The body corporate has the power to invest any moneys of the administrative fund, and may, on the authority of a written trustee resolution invest any moneys in the reserve fund in a secure investment with any institution. Trustees should check on the balances and action any necessary transactions in this regard.
- Check on the status of contacts
The body corporate may, on the authority of a written trustee resolution enter into written and signed contracts in respect of its powers and duties under the STSM Act and the rules. The beginning of the year is a good time to check on the status and action any cancellations and renewals where necessary.
- Co-ordinate employees and payment of increases
The trustees are responsible for supervising all employees of the body corporate. The trustees should ensure that all body corporate employee’s responsibilities are clearly communicated and supervised. It is standard practice to increase salaries each year. The trustees should have budgeted for this additional expense, and should therefore ensure that body corporate employees be paid their increases.
- Access control, security, alarms, electric fence and security cameras
Many members travel more during summer. There is also increased numbers of short-term tenants and/or visitors. The trustees should ensure that access control and security measures are operating efficiently. It is also always wise to keep the alarm system, electric fences and security cameras serviced such that all the beams and sensors are in working order. This is a good time to schedule such a service. That way the body corporate can ensure that the alarms, electric fences and security cameras are in optimum working order.
Conclusion
I hope this checklist helps your body corporate prepare for the new year, and I wish all bodes corporate a prosperous and peaceful year.
