Residents funds

About this article

This article explains best practice for the handling of residents funds in a retirement village.

Definition

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.