Records that should be kept

In this article I discuss what type of records you should be keeping and why.

While it may seem common sense, when we take on new contracts you may be surprised at the poor quality or lack of records we are handed over.

Lack of transparency is one of the most common reasons given for non-payment. 

While embezzlement from the communal fund is rare, suspicions and accusations are very common.  Almost every committee will have had some form of accusation at some point.  These are usually made by a debtor but any accusation or concern raised can quickly spread and cause damage to the reputation of the committee severely effecting your ability to operate and collect communal funds.

If you keep accurate and comprehensive accounts you can help prevent these accusations being made, and allow you to easily respond with fact if they are.  If when a comment or accusation is made you don’t have the records to support you, even though you have done nothing wrong the suspicion will remain.

Basic records that should be kept.

FINANCIAL RECORDS

  • Itemised Monthly & Annual Income Reports
  • Itemised Monthly & Annual Expenditure Reports
  • Communal Bank Account Statements
  • Original Invoices and Receipts for EVERY transaction.

GENERAL RECORDS

  • List of all units including arrears and debtor classification.
  • Unit owner contact information.
  • Maintenance Completed & Pending
  • Minutes of AGM and committee meetings

Making these records available to unit owners.

38T, Part IV (6) & VI (45+46) outlines the responsibility for the committee regarding the submission of the communal accounts. These should be submitted every three months, presented at the Annual General Meeting, and the original records must be made permanently available to every unit owner at a reasonable time.

Russell Flick

International Property Professional, Public Speaker & Author of 'The Ultimate Committee Handbook'. In addition to his published books, Russell is a public speaker, columnist and founder of www.CyprusCommunalGuide.com, the online information portal for property owners to get support and advice on all aspects of communal property ownership and management. Russell is currently in the process of publishing his second book (expected to be released in 2018) the 'Step-by-Step Guide to Owning Investment Property'. While the first book is aimed as a support resource for committees, giving step by step instructions on the management and administration of their buildings. This second book is is a practical guide to assist property owners and investors with information and procedures in acquiring, maintaining and maximizing their property investments.