This article discusses whether a strata manager can restrict access to financials even when owners are paying for the software that stores and displays those records.
Question: Can a body corporate manager restrict owners’ access to financial information when owners are paying a quarterly fee for the software?
Our body corporate pays a quarterly fee to the strata management company for software and archiving, which includes access to StrataMax. Given that owners are effectively paying for this software, can the manager decide what information we can and cannot see on the portal?
Previously, all owners could view the Statement of Income and Expenditure online. Recently, access was removed without any notice or explanation, and we now have to request the document and pay a fee. This feels like a major step back in transparency, especially since the statement is one of the most important tools owners have to understand the body corporate’s financial health.
Past managers also included the full Statement of Income and Expenditure with meeting minutes. Our current manager now only provides the balances of the sinking and administrative funds, which is far less informative. Is this acceptable, and should owners expect full financial visibility if we are paying for the software that stores these records?
Answer: Check their contract to see what they agree to supply for the fees paid.
It’s a significant red flag if owners at your scheme are required to pay for access to basic documents.
Usually, a body corporate agency selects a software partner that provides the infrastructure to manage the scheme. The software manages recordkeeping, issues levies, and performs a wide range of tasks that managers handle.
The platforms usually provide some portal access for owners to access core documentation, including the balance sheet. This is the case with the StrataMax system.
If the management agency chose to turn off access, they could be within their rights. Check their contract to see what they agree to supply for the fees paid. Maybe their business model presents a low base fee with charges for all interactions with the body corporate.
However, it seems an odd choice. Transparency is an important part of body corporate management. If you have a system like StrataMax in place and customers are already paying a disclosed fee, why not provide the access the system allows?
Increased revenue is the obvious answer, and it’s not an illegitimate one. Companies have to turn a profit and are allowed to make their offer to customers as they see fit. Still, a policy like that seems likely to create more problems than it solves. The fact that you are complaining is evidence of this. It’s also reasonable to complain that access seems to have been turned off mid-way through the contract. The company were appointed based on providing a particular service, and now you are not getting it.
If you are unhappy, the next step would likely be to talk to the committee and have them liaise with the manager to provide the access. The committee should think about how limiting access to documents will affect body corporate relations and their capacity to manage the scheme. Limiting access to documentation tends to generate questions, accusations and rumours, making management harder than it needs to be. If the manager is asked to change the system and refuses, they may be within their rights to do so. In that case, to change the system, you may have to look for a new manager.
William Marquand Tower Body Corporate E: willmarquand@towerbodycorporate.com.au P: 07 5609 4924
This post appears in Strata News #770.
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