About this article
This article explains best practice for the handling of residents funds in a retirement village.
Residents funds are all monies raised in any manner through activities within a village organised by –
- residents generally where there is no residents committee; or
- a residents committee or a subcommittee formed by the residents committee.
Residents funds where no residents committee established
To promote and maintain a harmonious village without the benefit of a residents committee but where residents have collectively organised fund raising activities within the village which rely on the purses of other residents, it is prudent to heed the following –
- be mindful of the perception held by other residents of how the funds are raised, spent and accounted for
- it is advisable that the funds be used for a good of residents generally – for example, raising money to buy communal lawn bowls equipment or for hosting a social night where all residents are invited
- not use the monies for the exclusive benefit of the few residents who raised it– for example, raising money from residents and then going out for Christmas lunch where only a select few are invited
- account for banking and spending of the monies in an appropriate manner – for example:
- authorise two or three residents to operate a bank account in the name of ‘Residents of XYZ Retirement Village’
- arrange for monthly or other regular financial reports to be available to residents
- ensure expenditure is authorised by a majority of residents at a meeting of residents
- ensure funds collected are banked promptly.
Residents funds where residents committee established
Refer to Residents Committee Manual (PDF) – Part 10 Residents funds, for more information.