Assessment Area Income Statement Assessment Last Assessed: 6th Sep 2021 at 10:01 am Responsible Party: Detailed Assessment - Income Statement Detailed Assessment - Income Statement Are the macro trends/variances in expenditure and revenue of the Community Scheme tightly monitored so that any adverse situations can be stopped/reversed/dealt with? * Yes - revenue and expenses are very tightly monitored so that adverse trends and variances can be dealt with timeously. Yes to a large degree – trends and variances are well monitored but action is not as swift as it should be. Yes to some degree – trends and variances are monitored but not as pro-actively as they should be. No, not really - lip service is paid to this aspect. No, not at all - there is no monitoring of trends or variances. Everything is a surprise. Have the major expenses likely to impact the Community Scheme going forward been clearly identified and is the growth in these expenses clear? * Yes - these have been clearly identified and the likely growth in each are well understood. Yes to a large degree – these have been identified but likely growth in each is not totally clear. Yes to some degree – we have identified what we think are the major expenses but have no idea where these might be headed. No, not really - we have identified some expenses but are not sure if these will be the major ones or where these could be headed. No, not at all - our major expenses have not been clearly identified or understood at all. How reliant is the Community Scheme on its current levy income? * Totally reliant on current levy income. Heavily reliant on current levy income. Largely reliant but have limited cash reserves on hand. Fairly reliant - have some material other sources of income and/or cash reserves on hand. Not overly reliant - have significant cash reserves and/or other material sources of income e.g. interest, usage fees, service revenues, lease/rental income, donations, advance fee payments/deposits. Are the current levies covering the level of operating expenses and allowing for the build-up of legally required reserves in the Community Scheme? * Yes - levies provide a comfortable cushion over and above the level of our actual and budgeted expenses, provide for any unexpected expenses and to enable us to grow our reserves. Yes - levies are covering expenses with some small cushion. Our collectible levies are only just covering expenses. The levy base can only just cover operating expenses if all levies are paid. The levy base is unable to cover the current level of our expenses. The levies collected are well below our operating expenses and we are being forced to use up our reserves to function. How vulnerable is the Community Scheme to the loss of other revenue/ancillary income streams e.g. exit fees, rental of units, capital appreciation of assets, revenue from the use of services or facilities, lease/rental income - cellphone masts/equipment/advertising boards, outsourcing arrangements etc.? * Yes - highly vulnerable given the extensive reliance on these. Yes - to a large degree. Yes - to some degree. No - not really, but these do provide us with a buffer. No - we are not vulnerable to these as they form a very small portion of our income stream. No - not at all/no reliance on other income/revenue. Don't know/Can't establish Are professional service fees e.g. consulting fees, managing agent, accountants, lawyers, evaluators, debt collectors etc. being prudently managed? * Yes - we have strict budgets for these areas and use of these service providers is strictly managed Yes to a degree - while some areas are strictly managed, other areas are not e.g. legal fees Yes to a small degree. We are driven by needs to use certain service providers irrespective of budget availability. Not really. While we have budgets and expenditure approval processes, these are often bypassed. No - not at all. Our controls and management of these fees is totally lacking. How are you recovering non-allocated expenses and common area expenses? * Quota formulae Contractual commitments/undertakings Flat percentage/Proportional allocation Negotiated amount No real scientific basis or formula Is this working for you? * Yes To a degree We are faced with on-going objections/resistance No, not at all - we are faced with major resistance and financial shortfalls as a result If you are human, leave this field blank. Submit
