Note: to save and continue scroll down to the bottom of each section. Return to Dashboard Property 2 - COMMPROPRISK - Trustees/Shareholders/Managing Agents/Developers - Body Corporate/Home Owners Association/Retirement Village/Shareblock Management Tool Select risk area you wish to complete or retake Select risk area you wish to complete or retake Property Complexity Debtors Financial Controls Balance Sheet Income Statement Operational Human Resources Environmental and Physical Socio-Economic Reputation IT/Technology Strategic Fraud/Theft and Criminality Governance, Regulatory and Legal Property Complexity Sectional title cascade What is the current state of the buildings, property and infrastructure e.g. general residential buildings, boundary walls, parking areas, garaging, swimming pool, guardhouse, gates, clubhouses, roads etc? In very good condition and well maintained. No immediate maintenance or repair needed. In good condition but imminent maintenance or repair needed. In average condition and in need of some maintenance and repairs. In a poor condition and in need of a large amount of maintenance and repairs. In a very poor state and in need of extensive maintenance and repairs. What is the current state of the common property e.g. boundary walls, parking areas, guardhouse, gates, roads, driveways, common use buildings etc and the general condition of residential properties in the complex/estate? Common property and residential properties in very good condition. Common property and residential properties in good condition. Common property and residential properties in fair/average condition. Common property and residential properties in poor condition. Common property and residential properties in a mixed state. Common property and residential properties in a generally very poor state. How complicated and difficult is it to run the Body Corporate/Retirement Village/Home Owners Association/Shareblock? Simple and basic Not very complicated Fairly complicated Complicated Very complicated with multiple risks and dependencies Does the Body Corporate/Home Owners Association/Retirement Village/Shareblock currently make use of the services of Managing Agents/Operators/Developers/Third Parties? Yes Yes, in part - some roles carried out by the Body Corporate/Developer/Operator/Trustees/Shareholders No - but Self Managed No formalised management Is the mandate of the Managing Agent formalised in a signed contract or agreement that is current and applicable? Yes - agreed on an annual basis Yes to a degree - mandate is extended without formalisation No Don't know/Can't establish Is their continuity in the services provided by the Managing Agent/Management Agents? Yes No Don't know/Can't establish What is the mix of the dwelling units permanently occupied by owners/retirement village lessees and those by tenants? Predominantly owners/lessees Mostly owners/lessees Roughly half/half Mostly tenants Predominantly tenants What is the mix of occupancy i.e. leisure/holiday use vs permanent residential/retirement living use? Predominantly leisure/holiday Mostly leisure/holiday Roughly 50/50 Mostly residential/retirement Predominantly residential/retirement Is there a clear responsibility and accountability for the maintenance and upkeep of the Body Corporate/Home Owners Association/Retirement Village/Shareblock exclusive use infrastructure, common areas and exclusive use areas? Clearly defined and managed in all respects by the Trustees/Directors. Responsibility for the key areas of the infrastructure and common area are well defined, other areas not well defined. Appears to be the responsibility of a few parties with no clear accountability. Outsourced to various third parties. Remains the responsibility of the Developer/Operator. The Managing Agents are responsible and accountable for ensuring this is clearly defined. No clear responsibility and accountability at all. What is the turnover of owners/lessees in the Body Corporate/Home Owners Association/Retirement Village/Shareblock? Very high High Average/ Moderate Low Very low What is the turnover of tenants in the Body Corporate/Home Owners Association/Retirement Village/Shareblock? Very high High Average/ Moderate Low Very low Does the Body Corporate/Home Owners Association/Shareblock/Retirement Village allow domestic pets and/or animals? Yes - owners/tenants/residents can have any number of pets or animals they like without any approval. Yes - while we have rules in this regard they are not enforced/a blind eye is turned. Yes - owners/tenants/residents can have pets or animals subject to meeting specific criteria and the approval of the Trustees. Yes - owners/tenants can have pets or animals as an exception to the rule subject to exceptional reasons e.g. blind person No - owners or tenants are not allowed any pets or domestic animals. What is the total asset value of the complex/property? Less than R 5 mil R 5 mil to R 25 mil R 25 mil to R 150 mil R 150 mil to R 500 mil Greater than R 500 mil What is the total current annual levy income? Less than R 100 000 R 100 001 to R 500 000 R 500 001 to R 1 mil R 1 mil to R 3 mil R 3 mil to R 5 mil More than R 5 mil How do levies compare with those of similar Body Corporates/Home Owners Associations/Retirement Villages/Shareblock schemes? Well below the average/market Below the average/market In line with the average/very comparable Above the average/market Very much higher than the average/market How affordable are the current levies for members of the Body Corporate/Home Owners Association/Retirement Village Lessees/Shareblock shareholders i.e. base levy and/or base levy plus additional core service fees such as nursing/internet/security etc ? Easily affordable Affordable - good value for money Manageable Becoming increasingly unaffordable No longer affordable Debtors Who is responsible for determining the budget and for setting the levies/contributions? Developer/Operator/Managing Agents in tandem with Trustees/Directors Trustees/Directors/Office Bearers alone Developer/Operator Delegated to Managing Agents/Developer/Operator/Accountants/Third Parties How are the levies/contributions calculated and set? Combination of cash flow requirements/balancing of budget/affordability of levies/establishing of reserves Sentiment/feeling of trustees/directors Inflation plus margin on top of last years levy Amounts that are acceptable to owners No real scientific basis How effectively are levy increases implemented? Very effectively and efficiently Fairly quickly and effectively Not as effectively as they should be Only after lenghty delays How well are levy increases accepted? Very well Some resistance Quite a bit of resistance A lot of resistance Are the levies/contributions well spread among owners/residents/lessees/shareholders/members? Yes, very widely spread Yes, good spread No, there is some concentration No, not at all well spread/we have concentration Where there is concentration risk due to a single owner/shareholder/lessee and/or developer who has multiple dwelling/unsold units or is required to cover the major share of apportioned/quota expenses, levies or overheads, how significant is this? No that significant Fairly significant Very significant - we are heavily reliant on the developer/a few owners/lessees What is the current state/trend of default/non-payment risk? Improving Stable Slowly deteriorating Rapidly deteriorating What is the level of arrears levies/contributions? Very High - with a large amount uncollectable Unacceptably high - impacting on operations Manageable - collectible with some effort Low Minimal arrears and all collectible No arrears What is the contribution level by owners towards the Home Owners Association? Very High - payments are obligatory/almost all owners are contributing Fairly good with some effort and follow up Very mixed and inconsistent level of contributions Poor - we struggle to get contributions Very low/minimal - a few owners bare the lions share How actively are debtors monitored (e.g. checking for arrears, checking for accounts staying within control limits, watching for concentration risk) by both Trustees/Directors and/or Managing Agents/Developers/dedicated third parties? We are very weak in monitoring our debtors. It is almost never done. We are quite weak at monitoring our debtors. It is not done regularly enough and we generally only look at it when we have a problem. We are fairly good in monitoring our debtors. We do it quite often and do it fairly well. We are good at monitoring our debtors. We do it often, look carefully at the debtors concentration, trends etc. Our debtors monitoring is excellent. We constantly monitor our debtors book and take action very quickly if we see or suspect a problem. The Body Corporate/Home Owners Association/Retirement Village/Shareblock is totally reliant on the Managing Agents/Developer/Operator or third parties for this. What is being done to deal with arrears levies/contributions and outstanding amounts by the Trustees/Directors/Managing Agents/Developer/Operator? The Trustees/Directors/Managing Agents/Developers/Operators take pro-active action to deal with these e.g. taking legal action, making use of collecting agents, blacklisting, getting judgements. Use is made of professional debt collectors. Lawyers letters are regularly sent/phone calls are made to defaulting parties. Notices are regularly sent to defaulting parties. The Trustees/Directors/Managing Agents/Developers/Operators continue to be tolerant with late/defaulting debtors hoping they pay. Nothing concrete is being done. Are any incentives being offered to owners or lessees to settle levy payments early/on time? Yes Yes but not financial No Is interest being recovered on late and arrears levies? * Yes Yes but not applied No Are the full cost of collecting arrears and outstanding amounts being recovered from defaulting debtors? Yes No Has the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Developer/Operator/Shareblock suffered any major bad debts that have had to be written off? Yes - on a number of occassions Yes - but infrequent Yes - single incident No - none at all Were the losses/write offs significant/material? Yes Manageable No What is the outlook for your levies/contributions e.g. ability to implement increases, collectability, level of default, level of bad debts? Very positive in all respects Good/positive in most respects Mixed - some areas will be worse than other Unfavourable in a number of respects Very poor in all respects Financial Controls How would you describe the level of financial discipline in the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Developer/Operator (e.g. budgeting, monitoring financial performance, monitoring of bank accounts, cash management, financial controls (e.g. levy collection controls, creditor payments))? The financial discipline is VERY weak. We lack general financial controls and have poor budgeting processes and performance monitoring. The financial discipline is weak. We do have some policies and processes (e.g. on budgeting or monitoring performance) but need to improve the financial discipline. The financial discipline is reasonable. We do have processes to do budgeting, monitor performance and accounts etc.. but this needs to improve. The financial discipline is quite strong, with good practices and policies around budgeting, reporting and financial controls. The financial discipline is VERY good. The financial controls (from budgeting to reconciliations, cash management and monitoring financial performance and bank accounts) are one of the real strengths of the Body Corporate/Home Owners Association. Don't really know/this area is handled by the Managing Agents/Developer/Operators or third parties. Are levy contributions being calculated and set to ensure that not only operating expenses and the inflationary growth in these are covered, but that the required levels of reserves and maintenance requirements can be met? Yes. Calculated increases have put the Body Corporate in a favourable financial position. Yes, to some degree but not sufficient to materially grow reserves. No, not really. As a result essential expenditure has had to be delayed or postponed. No. As a result cash resources continue to be depleted. No, not at all. This is a major issue. Does the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Developer/Operator conduct its own bank accounts or are these conducted through trust accounts in the name of the Managing Agents/third parties? Yes - in its own name Yes - through trust accounts in the name of the Managing Agents No - bank accounts are irregular/are in the name of a Trustee/Director/Office bearer/third party Who all has access to the bank accounts of the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Developer/Operator? Trustees/Directors/Appointed Office Bearers/Developer/Operator Designated and appointed third parties e.g. Managing Agents, Accountants A combination of parties e.g. Trustees/Directors/Managing Agents/Accountants Individual third parties Are the cash balances of the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Developer/Operator invested with reputable accredited financial institutions? Yes. Don't know as these are done on our behalf. No - we go for the highest return. Is fidelity and professional indemnity insurance held by parties who have access to/operate on the bank accounts of the Body Corporate/Home Owners Association/Retirement Village/Shareblock i.e. managing agents, operators, third parties, accountants, representatives of the body corporate/home owners association/retirement village/shareblock? Yes Don't know/Can't establish No How good is the Body Corporate's/Home Owners Association/Retirement Village/Shareblock/Developer/Operator financial reporting (e.g. provision of comprehensive annual financial statements)? Excellent. Trustees and the Body Corporate/Home Owners Association/Retirement Villages always know exactly where they stand. Good. The Trustees and Body Corporate/Home Owners Associations/Retirement Villages generally get accurate information on time, but there are times where information is delayed and/or not 100% accurate. Reasonable. The Trustees and Body Corporate/Home Owners associations/Retirement Villages normally get the financial information they need, but there are times where this information is slow, inaccurate or incomplete. Not great. The Trustees and Body Corporate/Home Owners association/Retirement Village often don't get the financial information they require when they need it or it is not very comprehensive or accurate. Very weak. Trustees and the Body Corporate/Home Owners Association/Retirement Village almost never get the financial information they need in time and/ or get inaccurate or incomplete information. Are management accounts readily available, accurate and up to date? No - not at all. No, not really - they are not readily available and/or are often late and/or are inaccurate. Yes - Readily available but are often inaccurate and/or incomplete. Yes, to a degree but are often delayed. Yes - readily available, accurate and complete Does the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Developer/Operator have suitably qualified external accountants or auditors? One of the biggest, most reputable professional firms. A reputable, mid-sized professional firm. A fairly small, professional company. An individual who renders independent services. A small independent company that offers accounting services. Nothing is formalised/rely on ad-hoc service providers when needed Retire entirely on Developer/Operator/Managing Agents for the provision of these services. Have the financial accounts of the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Developer/Operator been audited? Yes Yes but not recently Not of late but were in the past. No Don't know/not clear Are the audited accounts up to date? Yes No Don't know/not clear Are the financial accounts of the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Developer/Operator qualified? No - not at all. Yes - but only in respect of some compliance issues. Yes Has the Body Corporate/Home Owners Association/Retirement Village/Shareblock been registered for tax and has a Public Officer been appointed? Yes - managed by our Accountants/Managing Agents/Developer/Operator Yes but the Public Officer is no longer valid. No Has the Body Corporate/Home Owners Association/Retirement Village/Shareblock established a reserve fund to cover the cost of future maintenance and repairs to common property and is this reserve fund equal to at least 25% of the scheme's total annual levy budget, and if not is 15% of the total levy budget for the next year being recovered in terms of the act? Yes - we. fully meet the requirements of the act Yes, to some degree - we are trying to recover additional levies to meet the requirements of the act Yes to a small degree - we have made some progress to meet the reserve requirements but we are struggling to recover the full 15% No, not really - we have only accumulated minimal reserves No - not at all. Has the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Developer/Operator incorporated the 10 year maintenance plan into budgets and cash flow projections? Yes - this forms an integral part of the budget. Yes, to a large extent. Yes to a very small extent. We have incorporated only essential elements of maintenance. No, not really. We have only discussed what is required but nothing has been included in budgets. No, not at all. How capital intensive is the 10 year Maintenance Plan? Extremely. We have extensive wear and tear to our infrastructure which will require significant on-going expenditure. High. We have on-going wear and tear and capital replacement requirements. Moderate. We have reasonable capital expenditure requirements. Not very. We have limited capital expenditure requirements. Not at all. It relates predominantly to basic general maintenance. Who looks after the day to day financial management of the Body Corporate/Home Owners Association/Retirement Village/Shareblock? We makes use of the resources provided by/employed by the Managing Agents/Developer/Operator. We make use of accountants/auditors for this aspect. We make use of a full time qualified resource to assist us here. We make use of a part time accountant/financial manager/bookkeeper. One of the Trustees/Directors performs this role. We have nothing formalised in place for this. Is there specific financial oversight over key expenses and expenditure items e.g. contractors, utility accounts, service providers, employees and ancillary items like debit orders, insurance premiums, bad debts and the recovery of insurance claims and/or the recovery of excesses from owners/lessees where applicable? Yes - This is done pro-actively by Trustees/Directors over and above the reliance on Managing Agent/Accountant/Auditors. Yes, but we are not always consistent. Yes, to some degree but we are very re-active and need to do more here. No, not really. There is total reliance on the Managing Agent/Estate Manager/Accountants/Auditors No, not at all. How responsive are the trustees/directors to financial issues facing the Body Corporate/Home Owners Association/Retirement Village/Shareblock? Very responsive and pro-active. Issues are nipped in the bud. Fairly responsive. Not consistent in their actions and responses. No, not really. Things are allowed to drag on/worsen before action is taken. Unresponsive and tardy. Abdication the norm. Are the utility and rates accounts of the Body Corporate/Home Owners Association/Retirement Village/Shareblock i.e. the electricity, water, sewerage and rates and taxes elements up to date and being pro-actively managed? Yes, definitely. Rates and taxes are closely monitored and/or utility readings are taken and usage closely monitored by the Trustees/Directors. Accounts are reconciled and payments are all up to date. Yes to a large degree. Accounts are kept up to date at all times. Variances are investigated/disputes quickly resolved. Yes to a limited degree. We rely totally on the Managing Agents/Developer/Operator/Accountants to scrutinise, monitor and pay. Yes to a small degree. Accounts are not consistently monitored, are often paid late due to levy collection arrears/cash resource issues/unresolved disputes. No not really. Our monitoring is erratic, we regularly get surprises and/or are in dispute with the council/local authority/utility service providers. Not at all. Our utility accounts/rates and taxes are invariably in a mess and/or in arrears. Do the banking controls employed by the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Managing Agents/Developer/Operator include (indicate): Tight control of pins and/or access codes Payment/beneficiary authentication and authorisation, dual release/dual signatory controls Enforcement of strong passwords SMS advices and active monitoring of accounts Cybercrime awareness, anti virus and patch updates Staff lifestyle monitoring None of the above. Which of the following financial controls does the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Managing Agents/Developer/Operator actively apply? Segregation of duties (e.g. the person loading a payment can't release the payment) Banking system controls (e.g. strict password control, requiring multiple signatures or releases)). Cash flow monitoring and forecasting Regular monitoring and reconciliation of accounts (e.g. debtors control and bank) Regular management accounts showing performance relative to budget Expenditure and procurement controls Have you assessed your potential liability or loss due to unauthorised actions, fraud or the theft of monies or assets belonging to the Body Corporate/Home Owners Association/Retirement Village/Shareblock by the Managing Agents/Developer/Operator and/or third parties? Yes, we are acutely aware of this and have insisted on the Managing Agents/Third parties holding the required Professional Indemnity/Fidelity and/or Cyber risk insurance. Yes. We have tried to ensure that our Managing Agents/responsible or contracted third parties hold the appropriate Professional Indemnity and other insurance. Yes to a degree. We are reliant on the credibility and management of reputable Managing Agents/responsible or contracted third parties and them holding the necessary insurance. No not really. We rely entirely on the integrity of parties. No, not at all. Balance Sheet Is the Body Corporate/Home Owners Association/Retirement Village/Shareblock solvent at all times i.e. assets fairly valued less impairments exceed its liabilities? Yes Yes - but only subject to revaluation of assets No – we are technically insolvent How strong is the cash flow of the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Developer/Operator? Our cash flow is positive at all times. We always have excess cash on hand. Our cash flow is positive and predictable but does fluctuate. We generally have all the cash we need. Our cash flow is pretty neutral, but there are times when we run low on cash (e.g. over month ends). Our cash flow is quite often a problem and unpredictable. We often have to delay expenditure. Our cash flow is now always negative and continues to deteriorate. We have a massive cash flow problem. We almost always battle to make payments timeously. Are the assets of the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Developer/Operator fairly valued, adequately secured, protected and insured? Yes - the assets are regularly valued, well protected and insured. Yes to a degree – adequate insurance is held but the Body Corporate needs to manage/protect its assets better. No – this has not been consistently attended to. Has the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Developer/Operator made any use of Credit or Loan facilities e.g. Levy finance agreements, to fund capital expenditure, maintenance, outstanding levies and/or operational cash shortfalls? Yes, consistently/has become a permanent part of our funding. Yes, but to a limited extent. No, but we are in the process of finalising an arrangement. No, not to date but we are seriously considering this option. We are in the process of exiting this type of funding. No, we have made a policy decision not to avail of any debt or loan funding. Where debt has been availed of, has this received the required approval of owners/lessees or shareholders and has this complied with the prevailing rules of the Body Corporate/Home Owners Association/Retirement Village/Shareblock and regulatory requirements e.g. Sectional Title Schemes Management Act/ Community Schemes Services Ombud Act? Yes Yes to a degree - rules not fully complied with No Don't know/Can't establish Yes - but we are now in breach of regulatory requirements 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? Yes Don't know/Can't establish No Have loans or debt always been serviced and/or repaid on time and as per loan terms? Yes, consistently. Yes, with a few minor delays. Yes, but with a few delays. No, there are often delays. No. There always delays and/or extensions and/or revised terms needed. We are actually in default in respect of our debt/loans. How comfortable is the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Developer/Operator with the overall level of debt, in particular debt arising from Levy Finance Agreements? Very comfortable - debt is well managed, comfortably serviced, fully accounted for and always repaid on time. Quite comfortable. We manage our balance sheet carefully, and are very aware of the need to have adequate liquidity and are generally confident that our debt levels won't create any liquidity or solvency issues. Fairly comfortable. We generally manage our debt fairly well, but have at times felt a little under pressure (a little over indebted) Not very comfortable. While we monitor our debt position, there are times when we feel pressure to service debt and/ or fear being unable to repay debt maturities and/or fear being responsible for uncollectable debts. Very uncomfortable and vulnerable. We could face a big impairment and/or cash flow impact if we were to cancel the funding and/or be responsible for collecting long outstanding debts. 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? Yes, heavily geared with floating interest rates. Yes, reasonable level of debt with fixed term rates Yes, low level of short term debt. No. While a bond has been registered it has not been drawn down. No, not at all/we are debt free. How strong is the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Developer/Operator financially e.g. capital, stautory reserves and cash resources? VERY STRONG financially. Has a strong balance sheet (capital and reserves) and significant cash holdings. Members of the Body Corporate/Home Owners Association are an immediate source of capital if needed. STRONG financially. Strong capital and reserves with good cash holdings. FAIRLY strong financially. Has modest reserves and limited cash resources but can still comfortably meet normal obligations. NOT VERY STRONG financially. Has enough capital and cash-flow to operate on a routine basis, but will battle to fund or meet any unexpected liabilities. WEAK financially. Minimal reserves, very modest cash holdings and very tight cash flow. VERY WEAK financially. Doesn't have a strong balance sheet (capital and reserves) and often experiences cash-flow pressure. Sometimes unable to meet obligations when they are due. Does the Body Corporate/Home Owners Association/ Retirement Village/ Shareblock/ Developer/ Operator have any contingent liabilities e.g. guarantees issued, lease obligations, claims outstanding, legal obligations, pending litigation? No Yes Don't know/Can't establish Income Statement How reliant is the Body Corporate/Home Owners Association/Retirement Village/Shareblock 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 an/or cash reserves on hand Not overly reliant - have significant cash reserves and/or other material sources of income e.g. interest, usage fees, donations, advance payments 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 many months expense cover does the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Developer/Operator hold in reserve? More than two months Two months One month Less than one month None Are the current levies covering the level of operating expenses and allowing for the build up of reserves in the Body Corporate/Home Owners Association/Retirement Village/Shareblock? 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. Financial Score Operational Does the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Developer/Operator have a dedicated Estate Manager/Operator? Yes - full time Yes - half day Yes to some degree - shared and/or part time resource No, not really - reliant on dedicated gardener/security guards/Security Company No, not at all - totally dependent on managing agent No, not at all - totally dependent on trustees/or directors Has there been a clear and formalised delegation of authority to the Estate Manager/Managing Agents/Operator/Third party? Yes - with clearly defined limits of authority. Yes - but limits aren't clearly defined. Yes to some degree - there is no consistency, so some things fall through the cracks. No, not really - we really rely on just getting things done. No not at all - tasks are randomly given out and no limits are in place. Does the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Developer/Operator have pre-paid meters in place for electricity and/or water? Yes - water and electricity Yes - electricity only Yes - water only Not at all Does the Body Corporate/Home Owners association/Retirement Village/Shareblock/Developer/Operator have contingency plans for water and/or power outages e.g. back up generator, inverter, solar, borehole, water harvesting etc. Yes - generator/solar and borehole Yes - borehole Yes to a limited degree - some solar and/or water tanks Yes to a small degree - water tanks No, not at all - no contingencies, totally reliant on municipal/national grid supply Have all the work processes e.g. maintenance routines, security and access controls etc. been adequately documented, and are these robust and repeatable and are the processes and procedures standardised? Yes – these processes are well documented and entrenched in all our operational work areas. Yes to a degree but not in all areas. No – we have nothing documented, formalised or standardised. Does the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Developer/Operator have business continuity and disaster recovery plans in place for emergencies or unexpected events e.g. failure of the Managing Agent, inability to collect levies/debit order failures, strikes by employees/service providers, natural disaster, water crisis, strike action, black-outs/extended power failures, systems outages or failures or major mechanical breakdown? Yes – extensive disaster recovery and back-up plans are in place Largely yes. We have plans in place if a disaster occurs but there would still be a fair impact. To a degree. The Body Corporate has some plans in place, but these are not very comprehensive. No, not really. People will have to look after themselves. We only have basic safety measures in place e.g. fire extinguishers, designated assembly areas. Nothing is in place. Does the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Developer/Operator carefully monitor and manage its assets (fixed assets and current assets)? Yes very much so. We see the management of our assets as crucial. The condition of assets are routinely checked up on (e.g. to prevent damage or breakdowns), and a detailed asset register is kept. Yes. To a large degree. We keep a fairly close watch on our assets, such as checking the condition of assets, but this needs more focus. Not really. The major assets are monitored but the condition and state of these is generally poor. Not at all. No one is taking responsibility for this. Does the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Developer/Operator hold appropriate and adequate insurance in respect of its assets and potential liabilities? Yes - comprehensive insurance is held and reviewed annually. Yes to a large extent. Yes but possibly inadequate in areas. No, not really. Insured amounts are out of date/some areas are not covered. No, not at all. Insurance is in a mess. We have taken a conscious decision to self insure non regulated areas. Are the Trustees/Directors/Developers/Operators and/or Managing Agents aware of the excesses that may apply in respect of any insurance claims lodged and the potential impact on the Body Corporate/Home Owners Association/Retirement Village/Shareblock? Yes Yes to some extent/not totally clear No, not at all aware. Human Resources How important are staff/employees (people) to the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Developer/Operator? EXTREMELY important. We are heavily reliant on certain skilled and specialised staff for maintenance, security/access control. Very important. We need quality staff to operate properly, but there is a fairly large pool of good people we can draw on. Fairly important. It is important for us to have competent staff, but the skills required are not highly technical or unique. We are generally able to attract and retain good staff, and don't see our people as our top priority. Not terribly important. Very few low skilled staff are employed/required by us. Not at all. We do not employ any of our own staff. All the staff are employees of contracted third party service providers who are required to supervise and manage them as per contracts. What is the general state of labour relations and the attitude of people employed to work directly or indirectly by/through contractors/service providers to the Body Corporate/Home Owners Association/Retirement Village/Shareblock? Very good – there is low staff turnover and we enjoy high productivity and loyalty from the staff. Average – we experience people problems from time to time and sometimes a low morale is evident. Very poor – we continually have labour unrest, work disruptions and/or suffer from high turnover of staff employed directly and indirectly. Does the Body Corporate/Home Owners Association/Retirement Village/Shareblock have robust HR processes and disciplines in place e.g. recruitment, disciplinary, performance measurement, remuneration, payroll? Yes we have comprehensive policies and processes. Yes to a degree. We have policies and processes but these are often overlooked or bypassed. No we have no formalised processes in place. Does the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Developer/Operator have a comprehensive policy covering the recruitment of staff (including the defining of the position), the advertising of the position, the applicant screening process, the selection process, background vetting and reference checks)? We have very robust policies defining recruitment, vetting and background checking and how potential candidates are to be evaluated. Yes - to a degree No Are signed contracts of employment and job descriptions in place for all employees? Yes Yes to some degree - some job descriptions/performance measurement/targets are not in place No Are appraisals of employee performance being carried out? Yes No Don't know/Can't establish Are all your employees registered for taxation/uif/workmens compensation? Yes - we have focused on ensuring these are all in place. Yes to a degree - some registrations are not in place No - we have not attended to these aspects/they have been over looked. Is your payroll formally managed and have the required registrations and are statutory deductions being made and paid over e.g. UIF/Workmens Comp, PAYE? Yes - a reputable payroll package is used by the Trustees/Directors/Managing Agents/Developer/Operator/Accountants/Estate Manager. All employees are appropriately registered, payments are made by EFT and statutory deductions are paid over immediately. Yes to a degree - the payroll is managed manually by Trustees/Shareholders/Operators/Developers/Estate Manager. Approrpriate registrations are not all made and payments and deductions are not always processed on time. No - this is poorly managed and is largely manual. Registrations aren't in place and deductions are not paid over on time. We are vulnerable here. Is the safety and well-being of owners, lessees, tenants, employees and visitors important to the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Developer/Operator? Yes - this is very important and a key focus. Yes - to a large extent. Yes but we could do more. No, not really. This is just not a priority. No - we haven't focused on this aspect. Are Trustees/Directors/Developers/Operators and Managing Agents required to provide annual declaration of interest to ensure no conflicts? Yes - we are very strict in this area and always have transparent procurement processes Yes to some degree - on occossions we are forced to use the services of connected/preferred parties No - we have no controls in this area and just try and get things done as quickly as possible Environmental and Physical What impact will environmental change from e.g. climate change, extreme weather, availability of water resources, have on the Body Corporate/Home Owners Association/Retirement Village/Shareblock? Very big impact Don’t know at this stage – too early to assess the potential impact No – not at all Have you taken steps to provide localised storage of water resources for 48 hours of human consumption? Yes Yes to a degree - some basic harvesting/storage efforts have been made No – not at all Have you assessed the potential impact of natural threats to the Body Corporate/Home Owners Association/Retirement Village/Shareblock from e.g. fire, floods, high winds, landslides, subsidence? Yes Not properly No not at all Has anything been done to deal with or mitigate natural risks e.g. fire breaks, fire hydrants, water tanks, fire sirens, formalised assembly areas, gullies, storm water drains, barriers, retaining walls? Yes - considerable steps Yes - in some areas No - not at all What if anything is being done around managing the physical threats to the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Developer/Operator? We are pro-active here and have taken both practical steps e.g. improved security/access controls and/or appropriate insurance. We are doing the best we can with our existing resources. We have taken some steps but these are limited. We have not done anything beyond the basics. Is the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Developer/Operator complying with the required environmental standards and controls with regard to emissions, air and water pollution, recycling, water and power usage, treatment or removal of waste or hazardous materials, dumping of waste materials? We are fully compliant and try at all times to be good environmental citizens We are compliant in some areas We are not compliant at all Socio-Economic How vulnerable is the Body Corporate/Home Owners Association/Retirement Village/Shareblock to the prevailing socio-economic environment (e.g. level of economic growth, local economy, globalisation, tourism, volatility in commodity prices, pandemic outbreak, emigration, the level of employment, single major employer in the area, inflation, affordability, rule of law, civil unrest, political risk)? Not at all. We are largely protected and immune to changes in the socio-economic environment. Not very. Only major changes or events will have an impact on us. It has a modest impact. Higher inflation/slow economic growth, lower tourism and emigration will have an effect on us. The socio-economic environment has a significant impact on us as the owner/tenant mix is highly exposed to the state of the economy/local economy and employment levels. It has a massive potential impact on us on all levels e.g. levies, bad debts, upkeep, occupancy. What aspects of the Body Corporate/Home Owners Association/Retirement Village/Shareblock would be most impacted by a major deterioration in the socio-economic environment e.g. levy collections, rentability of units, sale of units, cash resources, state of the complex? None at all. Marginal impact on the payment of levies. Modest impact on the payment/affordability of levies with an increase in arrears. Major impact on levies arrears, occupancy of units and an impact on the value of the assets/and the ability to maintain the assets. Massive impact on arrears levies, bad debts, cash resources, occupancy of units, the value of assets/and the ability to maintain the assets. Reputation How important is the reputation of the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Developer/Operator? Critical. A good reputation is critical to owners and/or tenants and/or lessees with a big impact on re-sale values. Having a good reputation is important for us. Fairly important. Not very important at all. Not at all What is the reputation of the Complex/Body Corporate/Retirement Village/Shareblock e.g. well run and managed, financially stable, safe and secure, good re-sale value, beautiful gardens/common areas, quality services, quality care, good catering etc? Excellent Very Good Good Average Poor Bad Very bad Don't know/Can't establish What is being done to improve the reputation? We have a number of key initiatives to improve this. We are focusing on a few things Very little. Nothing Does the Body Corporate/Home Owners Association/Retirement Village/Shareblock have a crisis management plan? Yes a comprehensive plan is in place for a disaster. We have very basic and limited plans in place. Not sure/Can't establish No - we have nothing in place IT/Technology How dependent on IT/technology (e.g. access control, security systems, back-up power systems, water/electricity usage monitoring, accounting/banking systems and telecommunications) is the Body Corporate/Home Owners Association/Retirement Village/Shareblock? EXTREMELY. We are very dependent on technology for key areas e.g. administration, accounting, banking, security cameras/CCTV, access controls, monitoring, panic buttons etc. We are VERY dependent on technology. We probably couldn't function properly without access to systems, the internet and access control systems. Fairly. We are increasingly using technology in many areas. Somewhat. We are using technology more, but are not heavily dependent on it, such that we could actually operate relatively comfortably if we lost IT/technology systems. Not at all. Where the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Developer/Operator and/or Managing Agents make use of the internet, banking systems and other software controls, are robust IT controls and disciplines in place? Yes, absolutely. We have good firewall and anti-virus controls in place and have put preventative measures in place around a variety of potential attacks and threats, including the theft of computers (laptops/tablets/desktops), loss of data, cyber fraud and have issued best practice guidelines to staff. We have made IT disciplines and security and cyber-crime awareness a core focus and an integral part of our risk management process. Yes, we have robust IT policies and data security controls and back-up disciplines in place. As part of on-going staff education and training, a specific focus is placed on IT security, IT disciplines, data back-up, password controls, cybercrime awareness, social media and internet usage and the threat of data theft, hacking and phishing. Yes, while we follow tried-and-tested IT best practice policies and procedures, which are aligned to our governance policy i.e. that good hardware and software controls are in place, that the confidentiality of all passwords and password disciplines are tightly maintained and followed, we still seem to be behind the curve. To a limited extent. While we have some controls (e.g. anti-virus software, patch updates, physical security, firewall and password controls) to protect our IT systems and data, these have limitations. Access to our accounting and banking systems and customer data are controlled by passwords but these controls aren't strictly followed. No, we have almost no real IT security policy or IT controls/disciplines in place, and find that policies (e.g. password changes and data back-up) are not followed by trustees/directors/staff. No. We rely totally on basic anti-virus software and have not taken any other specific security measures. We are highly vulnerable. Is the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Developer/Operator/Managing Agent vulnerable to the collapse, failure or unavailability of technology, IT, operational or telecom systems due to e.g. insufficient bandwidth, the theft of computers/cables, loss of data lines/cable theft, network failure, website/hosting service failure, cybercrime, or to the loss, theft or corruption of data? Yes we are very vulnerable in this area as we have no contingency plans Yes to a large degree To a small degree – we have some contingency plans in place but these are not comprehensive No not at all – we have comprehensive back up processes and systems in place Strategic Before the Trustees/Directors/Developers/Operators enter into any projects, contracts or supply/service agreements do they assess the potential impact on the Body Corporate/Home Owners Association/Retirement Village e.g. funding and resourcing requirements, risks involved, the ability of service providers to perform as required, cash flow implications, levies? Yes – this forms an integral part of decision making Yes to a large degree Yes to some degree No, not really – there is no formal structured approach to these aspects and elements No process is followed This is left entirely up to the Managing Agents/Developers/Operators Does the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Developer/Operator hold strategic assets or have alternate or potential income sources e.g. surplus common area land, unsold units/parking bays, communal storage areas, short term lettable accomodation, frail care units, under-utilised communal facilities like bars/kitchens/sport facilities, recyclable materials, desalination plant, power generation or water/energy resources that could be realised/monetised if needed? Yes - we have some material assets/resources that could be utilised/are already being utilised to derive income Yes - but these are fairly limited We have not considered this aspect/they would require a significant outlay to make viable No - we have no opportunities that could be exploited here Upside of anything is for the Developer only Do the Directors/Trustees of the Body Corporate/Home Owners Association/Retirement Village/Shareblock review or consider possible alternative sources of revenue or income or alternative pricing models to ensure sustainability? Yes - this forms a key element of strategic thinking and planning To a limited degree We have not really considered this No not at all Fraud/Theft and Criminality Has the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Developer/Operator suffered any financial losses as a result of fraud, theft, corruption, negligence (whether as a result of Trustees, employee or third party actions) in the past? Yes No Don't know/can't establish Was this loss significant such that it impacted the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Developer/Operator materially? Yes significantly To a fair degree but some losses were recoverable No, not at all Governance, Regulatory and Legal Is the Body Corporate/Home Owners Association/Retirement Village/Shareblock subject to legislation and/or regulations e.g. Sectional Title Schemes Management Act, Community Schemes Services Ombud Act, The Housing Development Schemes for Retired Persons Act, Share Blocks Control Act? Yes No Is the Body Corporate/Home Owners Association/Retirement Village/Shareblock fully compliant with the required legislation and/or regulations? Yes - we comply fully with all relevant regulations Yes to a large degree - we try to be compliant as best we can but still fall short in some areas To some degree -we focus on only those areas of the law that might impact us No not at all - we are totally non-compliant Is the Body Corporate/Home Owners Association/Retirement Village/Shareblock registered with the Community Schemes Ombud in terms of the Community Schemes Services Ombud Act and is it contributing the required 2% of levies fee? Yes We are registered but not up to date with our levy payments Don't really know/not sure No Is the Body Corporate/Home Owners Association/Shareblock formally registered and/or are the Title Deeds of the Retirement Village endorsed to reflect the Life Right scheme where applicable? Yes Dont really know/not sure No Does the Body Corporate/Home Owners Association/Retirement Village/Shareblock have a clear formal constitution which is adhered to? Yes - this is in place and always adhered to. Yes to a degree - while there is a constitution in place, this is not always adhered to/followed. No, not really. This is dated/not followed. No not at all Are the Managing Agents registered as Estate Agents in terms of the Estate Agency Affairs Act/Property Practitioners Act (PPA)? Yes Yes to some degree - e.g. registration incomplete No Don't know/Can't establish Where the Managing Agents are registered as Estate Agents in terms of the Estate Agency Affairs Act/Property Practioners Act, are Trust Accounts conducted as prescribed by the act, audited annually and are fidelity certificates valid and current? Yes - all requirements met and current Yes to some degree e.g. audits not up to date No - we are non compliant in these areas Are the Managing Agents registered as Debt Collectors in terms of the Debt Collectors Act? Yes No Don't know/Can't establish Are the Managing Agents/Developers/Operators members of the Real Estate Business Owners of South Africa (Rebosa)? Yes No Don't know/Can't establish Is a separate bank account being conducted/maintained for the reserves as required in terms of the applicable acts? Yes No Has the Body Corporate/Home Owners Associations registered the property development with the Ombud’s offices together with supporting documents i.e. complex management and conduct rules, together with any changes which have historically been made to these rules and provided their domicilium address to the Ombud, the local municipality and local registrar of deeds? Yes No Has the Body Corporate/Home Owners Association filed its audited financials with the Ombud’s offices together with their budget for the following year? Yes No Is the Body Corporate/Home Owners Association/Retirement Village/Shareblock a going concern at all times? Yes, consistently so. Yes largely, but there have been times where deficits had to be funded. No, not really. The Body or Association are largely in survival mode. No. Consistently technically insolvent and/or reliant on bridging loans and/or special levies. Does the Body Corporate/Home Owners Association/Retirement Village/Developer/Shareblock hold the appropriate insurance and has the all-risk insurance policy been reviewed at least every three years? Yes Yes to some extent - subject to heavy excesses Yes but review is long overdue No Is the Insurance disclosure being made in terms of the Sectional Title Schemes Management (STSM) Act in the Financial Accounts i.e. type of insurance held, premiums, valuations, claims settled, excesses applicable to owners/lessees or Body Corporate/Home Owners Association/Retirement Village? Yes - required disclosure Yes in most respects Yes to some degree No What is the level of governance, effective control and risk management in the Body Corporate/Home Owners Association/Retirement Village/Shareblock e.g. code of good governance, risk culture, Trustee/Director oversight, minutes and resolutions, controls and disciplines, code of conduct, ethics/values, accountability, risk champion? Non existent. Some basic measures and controls. Varies widely and is very inconsistent. Fairly good in some areas. Comprehensive. Does the Body Corporate/Home Owners Association/Retirement Village/Shareblock have functional elected Trustees/Directors? Yes - meaningful elected number Yes - but insufficient number/ co-opted representatives No - totally dysfunctional Have background checks been undertaken to establish if all trustees/directors or office bearers are fit and proper for office/purpose and should not be disqualified e.g. due to sequestration or criminal record/prosecution? Yes - part of our process Yes to a degree - unfortunately this is not always done/we rely on third parties to do this for us No Have you established the potential liability of Trustees and/or Directors? Yes No, not really/haven't concerned ourselves No - haven't considered this Is the necessary fidelity cover and Directors and Officers indemnity insurance held for Trustees/Directors? Yes Yes, limited insurance is held. No - haven't considered this/not held Do the Trustees/Directors/Office Bearers have clearly defined functional responsibilities e.g. Finance, Operations, Gardens, Owner/Lessee relations or Security? Yes - formally elected as such Yes - but allocated responsibilities No Do the Trustees/Directors/Office Bearers have the required experience and skill set for their roles? Yes To some degree Very limited No Do the Trustees/Directors act in good faith, not in their personal interest, not negligently or outside their powers at all times? Yes Most of the time No How diversified is the Trustee/Director/Office Bearer body e.g. race, age, religion, gender? Yes - very Yes - to some degree No - not at all How stable is the Trustee/Director body? Yes, very and long serving Good Fairly stable Unstable - we battle to get Trustees/are forced to co-opt No, not at all - regular and high turnover/resignation of Trustees/positions often unfilled Do the Trustees/Directors have regular structured meetings which are well attended and which are minuted? Yes - regular, structured, well attended and minuted Yes to a large degree Yes to some degree No not really No never Do the Trustees/Directors/Developers of the Body Corporate/Home Owners Association/Retirement Village/Shareblock get a formal professional valuation of the buildings/property at least every three years? Yes Yes with the some exceptions No Has the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Developer/Operator finalised its 10 year maintenance plan? Yes - this was completed in consultation with professionals. Yes, to some extent. We have made some progress but it is far from complete. No, not really. We have only discussed what is required but nothing concrete has been done. No, not at all. Is there a focus on ensuring continuity in the Body Corporate/Home Owners Association/Retirement Village/Shareblock in respect of Trustees, Directors, levies, financial accounts, communication, day to day administration and operations? Yes, business continuity is a key focus. Yes, but only certain areas have been considered. Yes to a limited extent. No, not really. No, not at all - this has received no focus or attention and we are very vulnerable here. Do the Trustees/Directors exercise the required governance, diligence and over-sight required of them as well as their fiduciary responsibilities? Yes, at all times Yes, to a large degree Yes, to some degree No, not really No, not at all Are Trustees/Directors and the staff/employees of the Body Corporate/Home Owners Association/Retirement Village/Shareblock/Developers/Operators/Managing Agents required to provide regular written declarations of interest to ensure there are no conflicts of interest? Yes - these are also required to be recorded and minuted at every meeting and this extends to staff and service providers Yes to some degree - procurement policies are in place to try and control this No not really - some controls are in place but these are often bypassed No - not considered/monitored at all Who is providing the secretarial services to the Body Corporate/Home Owners Association/Retirement Village/Shareblock and are these professional and procedurally correct? Yes - these are undertaken by the Managing Agents/Developers/Operators. Meetings are well organised, minutes are accurate and the required procedures and notices are well managed. Yes. This is handled by both the Managing Agents/Developers/Operators and Trustees/Directors but could be improved. Yes to some degree. Minutes are not always accurate, procedures are not followed and notices are incomplete/go out late. No one in particular/falling between the cracks. Minutes are not accurate and procedures around notices often don't comply with the act. No. This area is largely managed by the Trustees/Directors and is very poorly done. This area is not being attended to at all. How well do the Trustees/Directors and/or Managing Agents/Developers/Operators and/or third parties communicate with the Body Corporate/Home Owners/Lessees/Shareholders? This is done in a very focused on-going basis This is done fairly well To a degree - communications are not consistent and can improve Not really very well at all Very poorly/non-existent Does the Body Corporate/Home Owners Association/Retirement Village/Shareblock hold its AGM as and when required in terms of the act i.e. within four months of its financial year end? Yes - consistently Yes on most occassions Yes - but only some occassions No not really No never Are the required quorums being obtained at AGM's/SGM's? Yes - consistently Yes on most occassions Yes - but only on some ocassions/normally have to re-covene No never Is the counting of votes and proxies, the establishment of quoroms for the passing of resolutions at AGM's/SGM's procedurally correct and in line with the prevailing legislation? Yes Yes to the best of our knowledge No Have the Trustees/Directors/Managing Agents/Developer/Operator identified the key risks facing the Body Corporate/Home Owners Association/Retirement Village/Shareblock? Yes - risk management forms a key element of the management of the Body Corporate/Home Owners Association./Developer/Operator/Shareblock Yes, to a large degree. No, not really. While the Body Corporate/Home Owners Association/Retirement Village/Shareblock is aware of issues these are only dealt with once they arise. No, this area has not really been considered. The Body Corporate/Home Owners Association/Retirement Village/shareblock is always in crisis management. What do these risks comprise mainly of? Lack of reserves/liquidity Increasing defaulting debtors/lessees Lack of maintenance/upkeep/contractual service provision Crime Natural disasters - fire, floods, landslides, high winds Trustee continuity Water and/or power issues Disputes around rules and/or agreements and/or conditions of use More than one of the above We have no idea of the risks facing the Body Corporate/Home Owners Association/Retirement Village No major risks/none of the above Are the Trustees/Directors and/or Managing Agents and/or Developers/Operators managing the level of legal and contractual risk in the Body Corporate/Home Owners Association/Retirement Village/Shareblock? Yes Yes to some degree No Don't know/Can't establish Does the Body Corporate/Home Owners Association/Retirement Village/Shareblock have good documentation, record keeping and general administration controls in place? Yes - contracts and agreements are all contained in enforceable contracts that are actively managed and safely stored as digital records and/or soft copies. Comprehensive records of supporting documentation, bank statements, financials and minutes are retained by the Trustees/Directors/Managing Agents/Developers/Operators. These are also backed up to the cloud. Yes to some degree. Not all arrangements are contained in enforceable contracts. Reliance is placed on Managing Agents/Developers/Operators for some record keeping. No we have many arrangements which are not formalised and are vulnerable to a number of contracts and agreements and/or verbal arrangements. Our record keeping is weak. Records and documentation are in a complete mess and we have virtually no contractual controls. Our record keeping has been very poor/historical records are hard to find. Totally reliant on the Managing Agents/Developers/Operators to manage contracts/maintain and keep records and documentation. Does the Body Corporate/Home Owners Association/Retirement Village/Shareblock have an established Code of Conduct and/or House Rules covering inter-alia resident and guest behaviour, number of occupants, tenant details, noise, washing, use of common areas, pet compliance, traffic rules, speeding, parking, aesthetics, building/alterations/improvements, sub-renting, use as Airbnb, disciplinary process/fines etc? Yes. We have comprehensive house rules/code of conduct which is regularly reviewed and updated in consultation with our attorney's. Yes but these need review and updating. Yes to some degree but these are very basic and limited/outdated/need revision. No not really/nothing formalised - we rely entirely on the attitude/good neighbourliness of owners/residents. No, not at all. Do owners, lessees, shareholders, tenants largely accept and live with the house/conduct rules e.g. speeding, noise, fines, visitors, behaviour, access controls, colour conformity, pets, parking, trustee/director/operator/developer approvals etc? Yes. These are mostly welcomed and supported. and there is high compliance. Yes to a large degree. Yes to some degree but there is resistance. No not really. We experience lots of resistance. No, not at all. We experience endless non-compliance. Are the House Rules and/or Code of Conduct and approval requirements strictly enforced? Yes - very much so Yes to a large extent Yes but selectively No, not really Not at all Do owners/shareholders/lessees get the required approval from the Trustees/Directors/Operators/Developers before undertaking any building, alterations or improvements to their properties and do they comply with the required standards and processes? Yes - there is high compliance with and acceptance of the approval process. We are very consistent in our approach and stance. Yes to a large degree. There are some objections/non-adherence. Yes to some degree but there is continual resistance. No not really. We experience lots of resistance and non-compliance and struggle to be consistent. No, not at all. We are faced with continuous non-compliance with approvals and standards. Are the Trustees/Directors consistent and transparent in their approval and ruling processes and do they personally adhere to rules and decision making processes and not pursue private agendas? Yes - We are very objective, consistent and transparent in our approach and stance. Private agendas are not tolerated. Yes to a large degree. While we try to be objective and consistant, there have been occassions where personal agendas have been pursued. Yes to some degree . There have been occassions where decisions have been inconsistant. No not really. We have experienced a number of instances of inconsistency and Trustees/Directors not themselves complying with rules and approvals. No, not at all. There is no consistency in approvals and rulings and many private agendas. Are the Conduct/House rules, financial statements and records, approval processes and other pertinent documentation readily accessible to and available for examination/inspection by tenants, owners, lessees, shareholders, prospective owners etc? Yes Yes but these are not always readily available/they are not always the latest versions Yes to a limited extent/subject to a confidentiality undertaking No, not at all. Does the Body Corporate/Home Owners Association/Retirement Village/Shareblock use legal measures to ensure compliance with approvals and disciplinary measures such as warnings, fines, wheel clamping or other measures to punish undesirable or enforce desired behaviour of owners/tenants/lessees/residents/visitors? Yes - on a consistent basis Yes - on a regular basis Yes - but very selectively No - considered but never implemented No - not at all Are the conduct/house rules, approval processes and constitution reviewed on a regular basis to ensure they are enforceable, current, relevant and that they comply and align with current regulations and legislation? Yes - this is done as part of our on-going governance in conjunction with our attorneys Yes to some degree but we are not consistent. No - not being attended to or done at all. Do the Trustees/Directors/Developers/Operators resolve owner/member/lessee issues and those facing the Body Corporate/Home Owners Association/Retirement Village/Shareblock diligently, quickly, transparently, fairly and objectively? Yes - issues are dealt with transparently, fairly, quickly, objectively and in the best interests of owners and interested parties. Responses are always provided in writing. Yes to a large extent - financial affairs are transparent and the conduct and house rules are consistently applied. Yes to some extent - responses and actions are however not consistent. No. There is a complete lack of transparency and issues and complaints are largely left unresolved and not dealt with. There is generally no response from Trustees/Directors/Managing Agents/Developers/Operators and issues often escalate into confrontation and/or into legal action. Are there rules governing the right to sell properties in the Body Corporate/Home Owners Association/Shareblock/Retirement Village e.g. subject to qualifying criteria, subject to approval of trustees/directors, subject to operators having first option, subject to conditions of purchase etc? Yes - very strict and enforced. Yes to a degree but not always enforced/adhered to/complied with/often bypassed. Subject to guidelines only. No - none at all. Do the title deeds of properties in the Cluster and/or Home Owners Association include conditions that owners must seek the consent of the Trustees/Directors before selling? Yes - this is done as part of our on-going good governance to ensure that levies and/or fees are up to date and that new owner will be able to pay these. Yes to some degree but we are not consistent in the application of this. No - not included in title deeds or enforced. Are there limitations around the operations of letting and estate agents in the Body Corporate/Home Owners Association/Shareblock/Retirement Village? Yes - only accredited agents are allowed to operate as per contractual arrangements. and subject to rules governing property sales. Yes to a degree - agents are allowed to operate subject to certain conditions and familiarisation with House Rules. Yes - we have restrictions and limitations but these are not enforced and/or adhered to by owners. No - owners are allowed to use any agents they wish. This is handled totally in-house by dedicated representatives/employees of the Body Corp/Home Owners Association/Retirement Village/Developer/Operator/Shareblock subject to rules governing property sales. Are local bye laws being complied with by owners/shareholders/tenants/lessees/users e.g. over-crowding, noise, fire restrictions, cruelty to animals? Yes - full compliance/co-operation Yes to a large extent No - in some aspects No - we are faced with continuous breaches. Overall Score RTL Submit
