Assessment Area

Balance Sheet Assessment

Last Assessed:

14th Jan 2022 at 11:09 am

Responsible Party:
Detailed Assessment - Balance Sheet

Detailed Assessment - Balance Sheet

How strong is the Community Scheme financially e.g. capital, statutory and general reserves and cash resources? *
Has the Community Scheme made any use of Credit or Loan facilities which bear interest and/or fixed terms of repayment e.g. Levy/debtor finance funding/arrangements, loans to fund capital expenditure/major maintenance/outstanding levies and/or operational cash shortfalls? *
Where debt has been availed of by the Community Scheme, has this received the required approval of owners/lessees or shareholders in a Special General Meeting and has the Community Scheme and/or the lender complied with the prevailing rules of the Community Scheme and regulatory requirements e.g. Sectional Title Schemes Management Act/ Community Schemes Services Ombud Act and the National Credit Act? *
Has any security been provided for this debt resulting in the impairment of the balance sheet e.g. cession of debtors, notarial bonds, other collateral? *
Have loans or debt always been serviced and/or repaid on time and as per loan terms? *
How comfortable is the Community Scheme/Developer/Operator with the overall level of debt, in particular debt arising from Levy Finance Agreements? *
In the case of shareblock schemes or retirement villages with life rights, did the developers/founders make use of debt or bond finance to fund the development? *
Does the Community Scheme have any contingent liabilities e.g. guarantees issued, lease obligations, claims outstanding, legal obligations, pending litigation? *
Are the assets of the Community Scheme fairly valued, adequately secured, protected and insured? *