The financial statements of a body corporate must be a fair and accurate reflection of the finances of the scheme. Normal bookkeeping standards apply – so all income must be recorded, as should all expenses.
For every expense the body corporate is required to have evidence that the amount was due and payable, namely an invoice.
Books must also balance. In other words, the total income less total expenses should equal the total cash in the bank.
Anything less than that is unacceptable. However, not all the cash in the bank is available to be used.
If money is allocated to maintenance projects – or is derived from prepaid levies, service fees or deposits – then it is being held for a future event and cannot be used for something else.
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