Fri | Jul 20, 2018

Strata Corporations Take Note

Published:Friday | August 12, 2016 | 12:00 AM

The Commission of Strata Corporations (CSC) will host a workshop seeking to address the chronic failure of the management of strata properties, also referred to as strata corporations, to file their annual returns.

The legislation requires strata corporations to file with the Commission, within 120 days after the end of the current financial year, audited financial statements or, subject to the approval of the Commission, a copy of the accounts prepared in accordance with generally accepted accounting principles. This must be signed by the corporation chairman and at least one other member of the executive committee. The statement of accounts must relate to the entire financial period just ended.

Also to be submitted is a report of its activities during the financial year including: meetings held by the Corporation; the appointment of the executive committee; the passing of resolutions adopting a budget; and a copy of the certificate of insurance for the current year. This filing must also be accompanied by the prescribed fee of $1,000.

Ainsworth Norton, manager of the CSC Inspectorate, explained the reason for the workshop.

"The rate of compliance for strata corporations filing their annual returns averages approximately 12 per cent of the number of corporations due to file returns in a given year since April 2011," he said. Norton said this can be attributed to inadequate knowledge regarding the simplicity of the process for filing.

lack of knowledge

"This lack of knowledge is as a result of the 'newness' of the prevailing legislation coupled with cultural apathy towards the efficient running of strata corporations," he said.

The workshop will highlight the general accounting principles to be employed in managing the strata corporation. It will also highlight the statutory responsibility to file the returns as well as give detailed explanations on completing and submitting the required forms.

Sandra Watson, CEO of the CSC noted that "annual returns provide information that will allow the Commission to make the necessary recommendations or apply the appropriate sanctions to corporations in an effort to facilitate their effective operation and safeguard the interest of stakeholders."

The workshop will be held on Friday August 19 from 10 a.m. to 1 p.m. at the Commission's offices on Trafalgar Road. Participants must register by August 15 by calling 926-9748-9 to confirm attendance.