Free Community Scheme Risk Assessment Free/Teaser Assessment Assessor/Responding Party Details: Capacity: * Director Trustee Office Bearer Third Party Managing Agent Estate Manager Assessor/Responding Party Name * Assessor/Responding Party Name First First Last Last Email Address for Feedback: * Name of Community Scheme: * How compliant is the Community Scheme with the prevailing regulatory requirements? * Fully compliant Compliant in most areas Partly compliant Not compliant at all Don’t know Are the assets of the Community Scheme appropriately valued and insured? * Regularly revalued and fully insured Stale valuation/under insured No, not at all – we are very vulnerable here Don’t know Does the Community Scheme have good record keeping and documentation controls? * Comprehensive record keeping – hard and soft copies held and backed up to the cloud Average – some good record keeping/heavy reliance on individual Trustees/Directors Very poor – no processes in place/archives lost/historic documents missing Non-existent What is the current state and condition of the buildings and infrastructure of the Community Scheme? * Excellent Good Average Poor Very poor How complicated and difficult is it to run the Community Scheme? * Very difficult Quite difficult Manageable Easy Very easy Is there a high turnover of residents/owners in the Community Scheme? * No- very stable Fairly stable Quite a high turnover Very high turnover Many empty properties/abandoned units Does the Community Scheme employ the services of a Managing Agent/Executive Managing Agent/Estate Manager? * Yes – Managing Agents and Estate Management Yes - Managing Agents Yes – Estate Manager No – Reliance on independent third party No – Self managed by Trustees/Directors No – running in remote control Are the responsibilities and accountability for all areas of the Community Scheme clearly allocated, understood, defined, documented and agreed between the Trustees/Directors/Estate Management and/or the Managing Agent where applicable? * Yes – very well defined with clear accountability Yes to some degree – things still fall through the cracks Yes – in some areas only Very poor/non-existent Does the Community Scheme have comprehensive budgetary approval processes in place? * Yes – very comprehensive and strictly adhered to Yes - but has limitations/shortcomings No, not really – is nothing more than an academic exercise No, not at all Don’t know Does the Community Scheme have comprehensive financial controls around expenditure and revenue in place? * Yes – comprehensive and strictly managed Yes – but lack of clear segregation of duties Yes - but not very robust/often bypassed/ignored No, nothing in place Don’t know Does the Community Scheme have sufficient cash reserves to cover three months normal operating expenses? * Yes – comfortably Yes – but not consistently No, definitely not Don’t know Is a 10 year plan in place and are the required reserves held for this? * Yes – in place and statutory reserves held Yes to a degree – plan incomplete/reserves not what they should be No – plan/required reserves not up to date/regularised No, nothing in place – totally non-compliant What is the current state of arrears or outstanding levies? * Minimal Manageable Deteriorating Very high Out of hand/high arrears/bad debts How affordable are current levies? * Very affordable Affordable Becoming unaffordable Totally unaffordable Are special levies a common characteristic of the Community Scheme? * Yes Don’t know No Is meaningful action being taken by the Trustees/Directors/Managing Agents/Developer/Estate Manager/Operator to deal with arrears levies/contributions and outstanding amounts? * Yes – very proactive Yes – but could be improved No, not really Nothing is being done Is the Community Scheme sustainable at the current level of levies and expenditure? * Yes, we are comfortable with the revenue/expenditure dynamics Yes, but it is getting tougher No, not really – we will have to make some tough decisions soon No, not at all – we will struggle to survive with growing expenses/decreasing levy affordability How effective is the Trustee/Director body? * Very effective and respected Effective but limited Totally ineffective Completely ineffective How stable is the Trustee/Director body? * Very – we have experienced long standing committed Trustees/Directors Fairly stable – lack some skills Not very – we battle to keep Trustees/Directors of the right calibre/experience Very unstable – we battle to get Trustees/Directors Totally dysfunctional How responsive are the Managing Agent/Trustees/Directors or Estate Management to incidents, problems, complaints or request approvals from owners/tenants? * Very responsive Fairly responsive Erratic Not very responsive Totally unresponsive How prepared is the Community Scheme to deal with disasters or business continuity issues? * Well prepared with plans in place Prepared to a degree Don’t know/not sure/questionable Totally ill prepared What is the level of compliance and adherence to the conduct and house rules of the Community Scheme? * Very high Fairly good Poor Very low/totally ignored Does the Community Scheme hold its AGM when required by law? * Yes No, not really – often postponed/doesn’t take place No – do not take place How effective is the communication with owners and residents? * Very good- effective use of messaging and social media/IT/Applications for reporting issues Good – effective but much room for improvement/greater use of technology Fair – ineffective/slow processes Very Poor – slow responses/mixed messages/archaic processes for reporting issues or problems Non-existent How safe and secure is the Community Scheme/Property? * Very – extensive security, surveillance and good access controls Good – but could be improved in certain areas Average – extensive surveillance downtime/controls often being by passed Poor – barely functional/residents at risk Very bad/non-existent What is the state of the Common Property and facilities? * Very good – well maintained and looked after Good – but could be improved in areas Average – needs greater care/supervision Very poor – not maintained/run down/ certain facilities can’t be used Shocking/in a terrible state What is the general state of the utility accounts of the Community Scheme – water, electricity, rates and taxes? * Up to date/fully paid up Amounts outstanding due to disputes Amounts outstanding/in arrears Hopelessly in arrears – vulnerable to cut-offs/legal action Don’t know Are management accounts of the Community Scheme current and up to date? * Yes - comprehensive up to date financials and reports readily available Yes - but are often delayed Not really – inaccurate/not comprehensive/out of date No, not at all Does the Community Scheme have back power and/or water storage facilities in place? * Yes Yes, but very limited No What is the reputation of the Community Scheme? * Very positive – well run/good investment/safe Good/Positive Average Deteriorating Bad Total Score Under 30% The Community Scheme has a very high risk profile Between 30% - 45% The Community Scheme is at risk in many areas Between 45% and 60% The Community Scheme has manageable risks Between 60% and 75% The Community Scheme has a low risk profile Between 75% and 100% The Community Scheme is in very good shape Disclaimer/Confidentiality Where the information supplied in this assessment is provided by the Managing Agents/Trustees/Directors/Developers/Operators/Third Parties, it will not be used to penalise the Body Corporate/Home Owners Association/Retirement Village/Shareblock (Community Scheme) in any way. The assessment is intended rather to assist Owners/Lessees/Shareholders/The Body Corporate and/or Home Owners Association/Developers and/or and their Trustees/Directors/Estate Management/Office Bearers/Representatives to identify their areas of risk and to offer advice on how to better manage these risks and improve overall governance in their Community Schemes. The information provided by the Community Scheme will also help the Managing Agent/Third Parties better understand them as a customer. This knowledge will not only help Managing Agents/Third Parties to better support Community Schemes with routine and governance matters, but may also greatly assist in helping Trustees/Directors in carrying out their fiduciary roles and responsibilities. If you are human, leave this field blank. Submit
