The financial responsibilities of trustees can be daunting. The first thing to do as a new trustee (after being elected at the AGM), would be to hold a trustees meeting where the points of business such as the levy budget for the next year are established, and pass a resolution for this budget. If there is no resolution the levies cannot be collected legally.
The powers and financial responsibilities that the trustees are given are governed by the Sectional Titles Act and the rules of scheme. The roles of trustees are to appoint a sectional title portfolio manager to manage the Sectional Title Schemes. Trustees also need to buy or rent items such as lawnmowers and tools needed for the body corporate, establish and maintain recreation facilities, gardens and lawns on the common property wherever practical and invest any funds not immediately required.
Trustees must keep financial records for the scheme and the body corporate finance function should be dealt with as any business would as there are often large sums of money being paid over, and the enormity of the financial responsibility to keep these funds in good hands is often underestimated. All financial transaction must be recorded and proper financial statements must be prepared and audited by a professional accounting firm.
A competent and trustworthy board of trustees will be able to ensure that the scheme yields positive financials while running it effectively and smoothly, not only safeguarding sectional title owners property investment, but also assure that tenants and owners are cohabitation in a pleasant and well managed environment.