January 2024 – Body corporate account reconstruction

We’ve just finished successfully setting up a new DIY client who has terminated their existing body corporate manager. Unfortunately, this was done just prior to the end of the financial year of the body corporate and we were required to reconstruct in excess of 300 transactions. The prior body corporate manager was not helpful and nor were the records that they had passed over.

The reconstruction was complex for a number of reasons. Firtstly, there were 26 lots but the lot numbering according to titles was 1-28 with no lot 9 or lot lot 20. This does happen from time to time and is usually as a cosequence of a staged development of the scheme. Additionally, the lot owners used a different numbering scheme for their physical and postal address. For example lot 18 was actually known as unit 25. This also happens from time to time and is usually a consequence of the allocation of postal addresses by local council differing from the titling numbering. Fortuately, Tracsafe’s DIY software copes with both these situations.

The next issue was the requirement for a water levy as the body cororate is billed in bulk and must recover the cost from lot owners using the water meters that are read on site by the committee. The prior body corporate manager was unable to cope with this requirement and was issuing separate invoice to lot owners for the water. Tracsafe’s DIY software was able to incorporate these lot expenses into the lot ledgers so that lot owners had a single levy notice and lot ledger to review.

The scheme was using both discounts and penalties on levies. Seemingly arbitrary remission of interest and approval of discounts made the rebuild very difficult. Tracsafe’s DIY software correctly implements the legislative requirement for discounts and penalties and was able to address the prior manager’s actions.

In summary, Tracsafe’s DIY software has seen nearly all possible scenarios in Queensland strata and is able to address most.