FUNCTIONS OF THE FINANCE SUB-COMMITTEE

The Finance Sub-Committee consists of four members and meets at least once a month to review the Levy Report produced by the operator.  The sub-committee then meets with representatives of the operator to discuss any particular items arising from the Levy Report and produces a report for presentation to the Residents’ Committee and then to Forum.

The sub-committee works closely with the operator in the preparation of the budget for the next year.  These discussions start about November and lead to the presentation to all residents of the proposed Statement of Income and Expenditure (The Budget) for the next financial year.  This usually happens at the end of April in order to give the required minimum 60 days notice under the NSW Retirement Villages Act before the budget is to operate.  The practice over recent years has been for the operator’s representatives to attend a meeting of residents before the budget is voted upon, to answer questions and discuss any issues in the budget that residents may wish to raise.  In accordance with the Act, the budget is then voted upon at the May Forum by way of a Special Resolution (75% agreement by those present including proxies) and, if passed, becomes operational on 1 July.  If it is not passed, the operator can apply to the Tribunal.

Apart from following and understanding the various budget assumptions and calculations involved, the sub-committee is in a position to suggest increases or decreases in the services supplied for the benefit of village residents.

As the year progresses, the sub-committee monitors the progress of accounts that may have significant influence on the outcome for the year.  Big items, and various repairs and maintenance accounts, cannot always be correctly estimated some months before the year actually starts.  When these items, or any others, look like departing from budget, the matter is discussed with the operator and raised at the Residents’ Committee and Forum.  In a Retirement Village such as ours, the residents pay the full cost of running the village, eg salaries, rates, repairs, insurance, power etc.  These costs are charged to our Levy Account and paid for by the monthly levies on each unit/villa.  A surplus or deficiency arising in a year must, under the NSW Act, be carried through to the next year.

 As you will see from the above, the Finance Sub-Committee carries out a vital role in our village.