Village financial statements and draft budget timelines

Presentation of annual financial statements by scheme operator

Scheme operator must call a meeting of residents to present the annual financial statements.

Audited annual financial statements	Notice to residents	Presentation of statements to meeting of residents	RV Act
Annual audited financial statements incl. items listed in s 113	Scheme operator must give each resident at least 21 days’ written notice of the meeting	Meeting held as soon as reasonably practicable after the annual financial statements are available but within 5 months after the end of each financial year	ss 113 and 131

There are penalties under the RV Act for a scheme operator who does not comply with the presentation of and requirements of statements.

Request by resident to be given annual financial statements

A resident may request an annual financial statement.

Audited annual financial statement	Request to scheme operator	Providing statements to a resident	RV Act
Annual audited financial statements incl. items listed in s 113	Resident may request annual statements	Scheme operator to give statements within 5 months after the end of each financial year	s 113

There are penalties under the RV Act for a scheme operator who does not comply with the request for and requirements of statements.

Draft budgets

Only the residents committee may request meetings and be given a copy of draft annual budgets

Draft budgets

Notice to scheme operator

Provided to residents committee

RV Act

Capital Replacement Fund

Maintenance Reserve Fund

General Services Charges

Written notice from residents committee at least 28 days before the beginning of the financial year

Scheme operator must provide draft budgets at least 14 days before the beginning of the financial year

CRF – 93(3) and (4)

MRF – 99(3) and (4) GSC – 102A(3) and (4)

Meeting – 129B

There are penalties under the RV Act for a scheme operator who does not comply with the notice.

Items in draft general services charges budget requiring special resolution

New service

A new service for which a general service charge will apply may be introduced by the scheme operator at any time residents Agree to it by special resolution.

Draft GSC budget

Notice to residents (inc wording of motion)

Meeting of residents to vote

RV Act

Charge for new service

Scheme operator must give at least 21 days notice of the meeting

(Res Comm may also distribute explanatory memorandum)

Before the new service is supplied

s 108 and definition of special resolution in Dictionary

ss 132 and 133

A new service may be introduced at any time but must not be charged for until supplied.

Charge for service increased more than CPI

A general service charge may be increased by more than CPI provided residents agree to it by special resolution.

Draft GSC budget

Notice to residents (inc wording of motion)

Meeting of residents to vote

RV Act

Charge for service increased more than CPI (other than charges mentioned in s 107)

*Scheme operator must give 21 days notice of the meeting

As soon as practical and if possible before the beginning of the financial year

s 106 and definition of special resolution in Dictionary

ss 132 and 133

*The RV Act is silent about who must give the notice of a meeting to discuss and vote on a special resolution relating to a charge for a general service increased by more than CPI, however as not every village has a residents committee, it is reasonable to expect that it is the responsibility in all cases for the scheme operator to do so.

If timings are suitable, the discussion and vote for the special resolution may be conducted at the residents meeting called by the scheme operator to present the previous year’s financial statement.

There are penalties under the RV Act for a scheme operator implementing a budget which includes a charge increased by more than CPI and residents have not approved the increase by a special resolution.

Quarterly financial statements

Request by resident

A resident (including any member of the residents committee for use by the committee) may request from the scheme operator a quarterly statement that lists income of and expenditure from the CRF, MRF and expenditure involved with providing each general service.

This statement is only a statement of income and expenditure and does not need to be accompanied by a document from the scheme operator which explains variations of expenditure.

Quarters

Request to scheme operator

Provided to resident

RV Act

1 Jul – 30 Sept

1 Oct – 31 Dec

1 Jan – 31 Mar

1 Apr – 30 Jun

At any time

Within 28 days of scheme operator receiving the request

s 112(1) to (3)

There are penalties provided under the RV Act for a scheme operator who does not comply with a request to provide quarterly financial statements within the stated timeframe.

Request by residents committee

In addition to the quarterly statements, a residents committee may request from the scheme operator a document that explains the expenditure involved for providing each general service and any increase above the expected expenditure for a general service in the budget. The statement and explanation may be provided as one combined document.

Quarters

Request to scheme operator

Provided to residents committee

RV Act

1 Jul – 30 Sept

1 Oct – 31 Dec

1 Jan – 31 Mar

1 Apr – 30 Jun

At any time

*Accompanied by quarterly statement and within 28 days of scheme operator receiving the request

s 112(1) to (4)

*The RV Act is silent on the timeframe for providing the explanatory document, but it may be assumed it would accompany a quarterly statement and therefore, those timeframes would also apply.

There are penalties provided under the RV Act for a scheme operator who does not comply with a request to provide appropriate explanatory statements.