What Does a Strata Treasurer Do? NSW Duties Explained

The short answer

The treasurer looks after the owners corporation's money and its financial records. Under section 44, the treasurer's functions include:

• notifying owners of the contributions (levies) set by the owners corporation
• receiving, acknowledging, banking and accounting for money paid to the owners corporation
• preparing strata information certificates (section 184 certificates)
• keeping the accounting records and preparing the financial statements

With the committee's approval, the treasurer can delegate some of this to another committee member (s 44(2)). If there's a strata managing agent, much of it is usually delegated to them. The treasurer still needs to check it.

How you become treasurer

The strata committee appoints the treasurer, along with the chair and secretary, at its first meeting after the AGM (s 41). One person can hold more than one office (s 41(3)). You stay treasurer until the next committee is elected, or until you resign in writing, leave the committee, or someone else is appointed (s 45).

The duties in practice

Levies

The owners corporation sets the budget and levies at the AGM (ss 79, 81). The treasurer's job is to tell owners what they owe (s 44). Levies are shared by unit entitlement (s 83). Each levy notice must give at least 30 days before the due date, or 14 days for emergency repairs (s 83).

If an owner pays late:

• Interest. Simple interest at 10% a year applies once a levy is more than a month overdue, unless the owners corporation resolves not to charge it (s 85).
• Payment plans. The owners corporation can agree a payment plan with an owner. It can't adopt a blanket policy of refusing them (s 85).
• Recovery. After a month, the levy can be recovered through NCAT or as a debt in court, with at least 30 days' notice of the action first (s 86).

Banking and accounting

The treasurer receives, banks and accounts for the owners corporation's money (s 44). Its money goes into an account in the owners corporation's name, unless a strata managing agent holds it in their trust account (s 78). The Regulation lists the accounting records to keep: numbered receipts, records of deposits and withdrawals, a cash record and a levy register (Regulation cl 22–23).

Money from the administrative fund can only be spent on the purposes the Act allows (s 73). The admin and capital works funds are separate. If money is moved between them, a general meeting must decide within 3 months whether to pay it back (s 76).

Financial statements and audit

The treasurer keeps the accounting records and prepares the financial statements (s 44). These go to the AGM, together with the statement of key financial information in the approved form (s 94; Schedule 1, cl 9). Schemes with more than 100 lots, or an annual budget over $250,000, must have their accounts audited before the AGM (s 95).

Strata information certificates

When an owner sells, or someone with a proper interest asks, the owners corporation issues a strata information certificate (s 184). It shows the levies, funds, insurance, by-laws and other details, including how the 10-year capital works plan will be funded. Preparing it is one of the treasurer's functions (s 44).

Spending and quotes

The treasurer doesn't decide spending alone. Every NSW scheme needs at least 2 independent quotes for work over $30,000 (s 102; Regulation cl 25). Large schemes can't spend more than the AGM estimate plus 10% on an item without a general meeting resolution, except in an emergency (s 102).

If you have a strata manager

A strata managing agent only has the officer functions their instrument of appointment gives them (s 54). Most agreements delegate the day-to-day accounting. The treasurer can still exercise those functions (s 54(2)). Each quarter, check:

• the bank balance for each fund against the statements
• the arrears report, and what's being done about each lot
• invoices paid against the budget, especially anything unusual
• budget variance, line by line

The owners corporation can also require the agent to provide trust account details and full particulars of money received and paid, within 14 days (ss 58–62).

What the treasurer isn't

• Not the person who sets levies. The owners corporation does, at the AGM.
• Not the owner of the money. It belongs to the owners corporation, and so do the financial records.
• Not paid by default. An AGM can approve payment to officers (s 46).

Every committee member, treasurer included, must act honestly and fairly, and with due care and diligence (s 37).

Victoria and Queensland

Victoria. The Owners Corporations Act 2006 has no treasurer role. The owners corporation keeps proper accounts (s 33). Many committees ask a member to look after the money informally, or leave it with the manager.

Queensland. Owners elect a treasurer at each AGM (Standard Module s 9, s 35). The module doesn't list the treasurer's functions in one place. If monthly reconciliations are required, they're due within 21 days of month end, prepared by the body corporate manager if one administers the fund, otherwise by the treasurer (s 170).

Your first 30 days

• Become a bank signatory and get online banking access
• Reconcile each fund's bank balance with the levy register
• Check the opening balance matches the last financial statements
• List every bill due in the next 90 days, including the insurance renewal
• List every lot in arrears and any payment plans
• Report balances, arrears and anything that didn't reconcile to the committee

Where UnitBuddy fits

UnitBuddy shows fund balances, levies, arrears and budget against actual in one place the owners corporation owns. A new treasurer starts with the history, not a box of statements.

Further reading

Keep the scheme file in one place the committee and the manager can both open. Features, pricing, or book a tour.