I'm an owner occupier of an apartment in a small development of 16 units, made up of 8 units per block. I have never bothered attending an AGM before but will go next week to voice my concerns and dissatisfaction with certain issues. The main ones being:
1. I believe 6 of the units are not paying mgmt fees and want to demand that more be done to pressurize the owners.
2. The blocks need an external coat of paint but the word is there is no cash.
3. Furnished accounts for last year show stationary costs of €1000. A couple of letters are posted out per year and the accounts info once per year. Why can't they be dropped in etc....does paper really cost that much? I want clarification on this. A grand may not get the paint job done would be a good start.
The AGM will also discuss a new director being appointed. I don't want to make a show of myself but I want my voice heard without taking over the meeting.
Not sure what my question is now.....just ask them for answers is it?
Cheers
The AGM was tonight in a local pub and was an informal gathering of 7 owners, out of 16 units. I didn't know all but one of them well. One of the 2 outgoing directors was present. The revelations at the meeting were staggering. Allegations of financial impropriety, mismanagement of funds, monies paid to the 2nd director (who wasn't present and has recently resigned) for services rendered, €1400 in stationary charges last year for a few sheets of printed paper and 16 stamped envelopes (it all stank to high heaven). Many of us are guilty of failing to spot this years ago. I never even studied the account statements until 2 months ago and I'm here 6 years.
Some of the owners admitted to not having paid managment fees for years due to their suspicions, lack of transparency and communication. In hindsight they were right as some of their money would no doubt have been channeled where it shouldn't. The 'good' director who is also resigning told of how the other director routinely went solo on signing cheques and failed to inform her what they were for. She seemed honest but reminded me of the financial regulator we had during the boom. The block insurance is up to date but there is nothing, and I mean zilch in the sinking fund.
I was asked to be one of the new directors and I accepted. I have committed to try and find out more about the irregularities. Others have pledged to pay their outstanding charges once they feel more confident about the mgmt company.
I went there to vent and came home with responsibility I hadn't banked on, or don't know if I'm capable of delivering on. But it's good to know the crooks who ruled the roost are gone, and they should be made accountable if at all possible.
1. It turns out that 5 of the units are in arrears, averaging €600 each. Nobody owes in excess of €1000. should there be a bad debt provision, correspondence with solicitors and review of minutes of directors meetings discussing the issue. Review leases to see if the management company has the power to withhold permission to sell to ensure payment.
2. Having spoken to some of them, the majority stopped paying altogether in the last 3 years due to concerns about how the funds were being spent. despite receiving the accounts every year and having the authority to remove the directors the default position is to stop paying fees
3. Some tenants want more investigation into the €1000 stationary fees of 2012. They cannot accept it. clearly the auditor should have reviewed and made an assessment about the validity of the expenditure
4. The previous Director paid himself €450 in fees. The chequebook also shows him spending on credit for his phone. There may be impropriety here.
5. There is no money provided for a sinking fund. Units were built in late 2005. I'm there since 2007. absolutely but the members are supposed to contribute €200 per annum to the sinking fund so the annual fee goes up
6. The previous directors were getting their mates to do odd jobs, like cutting lawns, and paying them plenty for it.
7. The accountant was charging €1200 for preparing the accounts. I called him to tell him that we will not be renewing his services. He has now offered to do the job for €500 plus VAT. I'm still shopping around here.
8. We were fined €100 plus an additional €3 per day (for 7 days) for the late submission of accounts to the CRO office.
All that can be said is now things are getting back on track. There will be no charges for stationary in 2014 and while I'm involved. I will print & hand deliver any correspondence myself voluntarily, or email where appropriate.
7. The accountant was charging €1200 for preparing the accounts. I called him to tell him that we will not be renewing his services. He has now offered to do the job for €500 plus VAT. I'm still shopping around here.
Rather than start a new thread I'll carry on here. I'll post some points relating to my involvement in the mgmt co. so far:
1. It turns out that 5 of the units are in arrears, averaging €600 each. Nobody owes in excess of €1000.
2. Having spoken to some of them, the majority stopped paying altogether in the last 3 years due to concerns about how the funds were being spent.
3. Some tenants want more investigation into the €1000 stationary fees of 2012. They cannot accept it.
4. The previous Director paid himself €450 in fees. The chequebook also shows him spending on credit for his phone. There may be impropriety here.
5. There is no money provided for a sinking fund. Units were built in late 2005. I'm there since 2007.
6. The previous directors were getting their mates to do odd jobs, like cutting lawns, and paying them plenty for it.
7. The accountant was charging €1200 for preparing the accounts. I called him to tell him that we will not be renewing his services. He has now offered to do the job for €500 plus VAT. I'm still shopping around here.
8. We were fined €100 plus an additional €3 per day (for 7 days) for the late submission of accounts to the CRO office.
All that can be said is now things are getting back on track. There will be no charges for stationary in 2014 and while I'm involved. I will print & hand deliver any correspondence myself voluntarily, or email where appropriate.
You should dump him. It is dishonest to pretend that it is possible to properly & legally audit a functioning management company for €500 plus VAT.
If you want cheaper accountants fees for your management company (as everyone does) you should lobby your councillors and TD's to abolish the compulsory statutory audit for owners' management companies.
I have had multiple quotes for audits at 600-900 so I would not expect an audit to cost that much these days. It is contrary to myth a very simple and straightforward process that doesn't involve much time or effort on the part of the auditor and smaller companies and organisations like OMCs are even simpler as there is no VAT or other complicated issues that normally trading companies have.
End User Licence Agreement EULA
Signed Documents
Copies of Signed Financial Statements A1.1 and A1.2
Signed Letter of Representation A2
Audit Completion
Matters Forward Checklist A3
Independent Partner/Hot File (Issues) Review A4
Audit Completion A5.1
File Completion Checklist A5.2
Significant matters A6
Review of Communications to Those Charged with Governance A7
Letter of Representation Review A8
Summary of Errors Schedule A9.1
Summary of Errors - Work programme A9.2
Review of Financial Statements and Final Analytical Review A10.1
Common Omissions - Republic of Ireland A10.2a
Common Omissions - Northern Ireland A10.2b
Financial Statements Call-Over Checklist A10.3
Post Balance Sheet Events A11
Going Concern A12.1
Going Concern Questionnaire A12.2
The Audit Report A13
Fraud A14
Planning
Acceptance of Appointment or Re-appointment B1
Audit Planning Checklist B1.1
Audit Planning Memorandum B2
Materiality B3
Opening Balances/Comparatives B4
Audit Exemption - Republic of Ireland B5
Audit Exemption - Northern Ireland B5.1
Internal Control Review
Internal Control and Accounting Systems C1
Internal Control – Maintenance of Books and Records C2
Financial Statement Areas
Intangible Fixed Assets - Lead Schedule D-
Intangible Fixed Assets - Work Programme D1
Tangible Fixed Assets - Lead Schedule E-
Tangible Fixed Assets - Work Programme E1
Investments - Lead Schedule F-
Investments - Work Programme F1
Stocks and Work In Progress - Lead Schedule G-
Stock and Work in Progress - Work Programme G1
Stock and Work in Progress – Attendance Substantive Tests G2
Debtors - Lead Schedule H-
Debtors - Work Programme H1
Bank Balances and Cash in Hand - Lead Schedule I-
Bank Balances and Cash in Hand - Work Programme I1
Creditors - Lead Schedule J-
Creditors - Work Programme J1
Taxation - Lead Schedule K-
Taxation - Work Programme K1
Liabilities, Contingencies and Charges L1
Statutory Matters, Share Capital and Reserves - Lead Schedule M-
Statutory Matters, Share Capital and Reserves - Work Programme M1
Sales and Income N1
Purchases and Expenses O1
Salaries and Wages - Lead Schedule P-
Salaries and Wages - Work Programme P1
Related Parties Q1
Compliance with Laws and Regulations R1
Trial Balance S1
Deleted tests T1
Appendix
Client Work Programme Appendix 1
Client Fraud Questionnaire Appendix 2
Confirmation Schedule Appendix 3
Staff Independence Confirmation Appendix 4
Using the Work of an Auditors Expert Appendix 5
I have seen Directors fees taken from the fund in the last 3 years. €450 per annum. Is this allowed?
Was it listed as a cost in the annual report also.I have seen Directors fees taken from the fund in the last 3 years. €450 per annum. Is this allowed?
Was it listed as a cost in the annual report also.
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