Our Services Offering

COLLECTION

Maintaining the income stream for the administration of the common property

Levies

We attend to the collection of monthly levies and other funds owing to the Body Corporate and the depositing thereof into a Trust account opened under the umbrella of Newco Administration cc, in the name of the Body Corporate (in terms of Section 32 (1) a) / Home Owners Association (In terms of Section 21) and/or Residential building.

Methods of payment

We utilise a variety of methods to ensure that levies are collected timeously.

• We encourage payments to be made via electronic fund transfer using either the Internet, an ATM terminal or with the assistance of staff at the payee’s bank. In order to maintain a full collection, where bank charges accrue due to either cash payments or RD payments, these charges are passed back to the appropriate payee together with interest on the outstanding balance.

Credit Control

Our Administration Department prides itself on the level of credit control service that we implement on behalf of our clients, timeously sending out reminder notices to the owners who are in arrears and relentlessly following up on any outstanding amounts. In this way we are able to provide an efficient credit control service to our clients.
Interest is levied on overdue accounts at the maximum rate permitted in terms of current financial legislation, which is agreed upon by the Trustees, Directors and/or Landlord of a building. We brief attorneys and manage the legal file follow-ups on an ongoing basis.
Copies of monthly legal reports from the attorneys are sent to the Chairman of the Body Corporate, but more frequent enquiries by the Trustees may be requested, as and when required.
Experience has shown that allowing non payment / payment arrangements for levies results in the undermining of the resources of the Body Corporate / Home Owners Association of Residential Unit and in consequence Newco Administration cc micro manages this area on our client’s behalf.

Credit Policy

Our Credit Control Department’s standard policy in respect of the collection of arrear amounts, is as follows:

• Payment is due on the 1st of each month, grace is given until the 7th of the month for all outstanding payments to be made. A first reminder will be issued on the 8th.
• A final reminder/warning is sent out on the 14th of the month.
• When payment is 21 (twenty-one) days overdue, the account is immediately handed over to an attorneys firm for the collection of the outstanding amount.
• All costs attaching to the above actions are for the account of the individual owner concerned.

ACCOUNTING SERVICES

Accounting Policy - Keeping Books of Account in accordance with Generally Accepted Accountancy Practice (GAAP).

• Un-audited Financial Statements
  Un-audited statements (Levy Roll’) indicating amounts owed by each owner are prepared and submitted to the Trustees on a monthly basis.
• Monthly Documents to Trustees
  Each Trustee is supplied with a monthly Statement of Income and Expenses.
• Payment of Expenses
  All standard expenses for the administration of the Body Corporate are checked and paid monthly.  Any non standard payments will be sent to the Trustees for authorisation prior to the payment thereof.  All Invoices are kept in a file, together with their proof of payment for auditing purposes at the end of the financial year.
• Bookkeeping
  An independent bookkeeper, appointed by Newco Administration cc, will be appointed on behalf of the Body Corporate / Home Owners Association to write up the books of accounts prior to the books being sent to the auditors to issue a set of financial statements.  A quote will be obtained from the bookkeeper and sent to the Trustees.  The work to be carried out will be as follows:-

1. Monthly Members General Ledgers will be created and reduced to a schedule reflecting the combined totals in respect of charges raised against debtors/owners.
2. All transactions reflected on the bank statements are captured and properly allocated to each expense’s budget allocation. All bank statements must be available.
3. In this case, actual monthly bank reconciliations will be done to verify the correctness of the Owner Statements/Disbursements so created.
4. Where Body Corporate / HOA’s are financially strong and also have investment accounts, each account is captured separately and monthly bank reconciliations are done on each separate investment account.
   
5. Detailed reconciliations of each Local Authority account, for each year will be done (normally there are the following such utility accounts: Assessment Rates (only applicable where the Body Corporate / HOA owns property), Refuse Removal, Water, Sewerage, and Electricity. These reconciliations not only determine the exact indebtedness of the Body Corporate / HOA to such service providers, but it also, in the case of Water and Electricity (in Body Corporate / HOA’s these charges are normally only in respect of “common areas” as each Erf receives its own accounts from the local authority) is a clear indication of the use, or misuse of these utilities and affords the manager the opportunity of drafting a budget consistent with the actual expense.
6. A detailed wage reconciliation is done to determine the exact cost thereof to the BODY CORPORATE / HOA, but also to determine the Body Corporate / BODY CORPORATE / HOA’s indebtedness to UIF, SARS and WCC at financial year-end.
7. A detailed legal fee reconciliation is done to determine the exact position regarding the legal fees raised by the attorneys as against those raised against the accounts of individual owners. As the BODY CORPORATE / HOA is not liable for the payment of such legal fees (only if so recorded in its Articles of Association), this account should be equal at financial year-end.
8. In cases where major renovation projects, or such like work was done to the complex, a detailed reconciliation reflecting the quoted price, as well as all progress payments made are done, thus determining the exact outstanding balance. If the project is completed at year-end, such reconciliation will still be done as it is a requirement of the auditors. In such cases, a copy of the signed agreement will be required (to determine the exact quoted and approved cost).
9. In the case where the BODY CORPORATE / HOA earned interest income (all bank interest, Trust interest as well as interest raised against debtors for the nonpayment of levies), irrespective of whether the BODY CORPORATE / HOA reflects a Surplus or Deficit at the end of the financial year, taxation is payable to SARS. In such cases, detailed Tax calculations are done and captured in the books of account.
   In addition to the above, in cases where the BODY CORPORATE / HOA also earned “Rental Income”, be it from an Erf owned by the BODY CORPORATE / HOA, or any other rental income, the BODY CORPORATE / HOA is liable for the payment of tax on such income. In such cases, detailed tax calculations are also done and captured in the books of account.
10. All of the above information is captured into the books of account and on completion the following documentation is provided, ready for Audit Purposes:

• Detailed General Ledger (Income and Expenditure and accruals)
• Detailed Debtors/Members General Ledger (Levy Roll)
• Trial Balance, with prior year closing balances
• Income Statement, with Budget Values
• Balance Sheet            
• The above tests are conducted in accordance with statements of South African Auditing Standards. These standards require that we plan and perform these tests to obtain reasonable assurance that the financial statements so produced, ready for audit purposes, are free of material misstatements. These tests include:
• examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements,
• assessing the accounting principles used and significant estimates made by management  
• evaluating the overall financial statement presentation.

• Annual Audit
  The annual audit is arranged in conjunction with the auditor of the Trustees’ choice and financial statements, with supporting documents are supplied. The final auditors report is submitted to the Trustees for approval and tabled at the Annual General Meeting for consideration by the Body Corporate.
• Budget for the Financial Year
  The budget for the forthcoming financial year is prepared and presented first to the Trustees and then to the Body Corporate, for approval and any amendments required in order to determine the new monthly levy payable.
• Budget Control — Cash Flow Statement
  Budgeted expenses are controlled monthly. Each Trustee is presented monthly statements of income and expenditure.
• Trust Account
  Body Corporate funds are deposited into a trust Account as prescribed by Section 32 of the Estate Agency Affairs Act 112 of 1976.
• Investment of Reserve Funds
  On the instructions of the Trustees, funds will be transferred from the Trust account into a savings account at a Bank or other recognised Financial Institution in the name of the Body Corporate.
• South African Revenue Services
  All South African Revenue Services requirements (where applicable) in respect of the Body Corporate are complied with.

SECRETARIAL

• Safekeeping of information / documentation
  We attend to the safekeeping of all legal information, minute books. attendance registers, register of sectional title bondholders, quotas, rules, insurance contracts and all other information and files required by the Sectional Titles Act 95 of 1986.
• Compilation and circulation of letters / forms / notices
  We attend to the compilation and circulation of general circulars, notices, agendas, proxies and nomination forms for general meetings of owners; and when requested notices for Trustee meetings. A fee to cover the printing and stationery costs will be charged for this service.
• Attendance at meetings
  We attend the following meetings:

1. Annual General Meeting;
2. Trustee meetings when requested. but not more than three meetings per year;
3. Special General Meetings. A fee as determined from time to time by the Institute of Estate Agents’ Board of South Africa may be charged for attendance at these meetings.

• Minutes
  We attend to the minute keeping at the above-mentioned meetings and the circulation thereof to those entitled to copies.
• Meeting Venues
  We attend to the arrangement of suitable venues for the various meetings.
• Procedural Support and Advice
  We provide support and advice on request to the Trustees in respect of the correct procedures at Annual General Meetings, Special General Meetings, quorums, proxies, resolutions, voting rights, implementation of rules and legal stipulations as promulgated in the Sectional Titles Act 95 of 1986 and the Rules thereto.
• Correspondence
  We attend to the organisation, drafting and circulation of information to owners and dealing with enquiries, suggestions and complaints, as well as the normal correspondence of the Body Corporate.
• Supply of copies
  Copies of all correspondence sent on behalf of the Trustees will be forwarded to the Chairman.
• Application of rules — Section 35
  We attend to the application of rules as prescribed by Section 35 of the Sectional Titles Act 95 of 1986, where the agent is obliged by the Trustees to do so from time to time.
• Welcome letters
  We write to all owners informing them of methods of payments and our procedures in respect of their levies and rules of the Body Corporate.

ADMINISTRATION

Up-keep and maintenance of building and common property

• Maintenance Programme
  We recognise the necessity of continued and proper maintenance and repair of the common property and buildings, an area which is often neglected and is normally only dealt with in a time of crisis.
  
  By utilising our contractors kept on file, we are able to assist Trustees to budget for and control the scope of the work required and the costs therefore. We are, however also willing to make use of contractors nominated by Trustees.
  

The Employees of the Body Corporate

• Employee’s Payments
  We attend to the payment of salaries, wages, PAYE, UIF.
  

• Employee’s Service Contracts
  This is a comprehensive service which provides for the compilation of service contracts in accordance with the current Labour Relations Act 66 of 1995: advice on the disciplinary code and grievance procedures; conducting disciplinary hearings: telephonic advice to Trustees by specialists on the subject; etc.
  

• Insurance for the building and common property
  We attend to the arrangement and placement of insurance for the building in terms of Section 29 of the Sectional Title Act, 95 of 1986: negotiating the most competitive rates and helping you save on insurance premiums.
  

• Replacement values
  We assist Trustees in determining the replacement value of improvements to the property for insurance purposes by arranging for valuations to take place. As you might know, valuations can be costly, but is preferable to be adequately covered, rather than finding a disastrous situation, that you are underinsured. Under-valuation leads to the application by insurers of the notorious ‘average”, resulting in losses not being adequately compensated. We avoid this pitfall by having a team of valuators, who are prepared to offer their services at a very reasonable cost.
  
  At the same time, owners who have improved their units will be informed accordingly, thus enabling them to, without any additional cost, have their units properly valued. The above will indemnify Trustees and prevent owners from blaming Trustees for not informing them adequately.
  

• Insurance Claims
  We attend to all claims and keep adequate records thereof. We also offer procedural advice in all aspects of claiming. Unless otherwise preferred we obtain all quotes as required by the insurers. We do not pay any individual owners claim out of Body Corporate funds, until the insurers have paid us the claimed amount. We stress that the Body Corporate is not a financier, and their cash flow will not be affected by the claim.
  

General Administration of the Body Corporate’s Affairs

• Body Corporate Rules
  We assist the Body Corporate with the procedure and registration of changes in the Management and Conduct Rules and obtaining of copies thereof from the Deeds Office.
  

• Information
  As managing agents, we undertake to manage and administer the common property, (as required of the Trustees by the Sectional Titles Act 95 of 1986) as requested by the Trustees and Body Corporate. We take instructions from the Trustees, but also see it as our duty to inform the Trustees on the legal implications of making decisions on behalf of the Body Corporate. Our managers are fully trained in the Sectional Titles Act 95 of 1986, a highly specialised field, which correctly administered substantially avoids the occurrence of unnecessary problems.
  

STRUCTURE OF MANAGEMENT SERVICE

• What we provide

• Management Agreement
  As the Sectional Titles Act 95 of 1986 was amended in October 1997 to include the clause that a signed management agreement must be drawn up between the managing agent and the Body Corporate, you will be requested to sign a contract with us.
  

• Duration of the Agreement
  The Agreement shall commence on the effective date i.e. the appointment date, as managing agents and shall remain in force for a period of one (1) year. The agreement will automatically be renewed annually and remain in force unless either party gives notice to the other party (not later than TWO calendar months before the expiry of any period of twelve (12) calendar months of termination of the Agreement at the end of the twelve (12) month period.

MANAGEMENT FEE STRUCTURE AND ADDITIONAL SERVICES OFFERED

The Body Corporate will on demand reimburse the Agent for the following additional services, which will not be included in the agreed management fee:

• Attendance of additional meetings
   - Reconvened Annual General Meetings, Special General Meetings, Extended Meetings and Deed Searches:
   - Obtaining of Sectional Title Plans:
   - Registration of Management and/or Conduct Rules and/or obtaining copies thereof from the Deeds Office:
   - The supplying and signature of contracts with employees of the Body Corporate, Ad-hoc tariffs are charged strictly in accordance with the recommended fees and tariff structure of the Institute of Estate Agents of South Africa (available on request) and current Sectional Title legislation in respect of the following (recoverable from the persons requesting the service, not the Body Corporate):
   - Accounting Services (if required)
   - Postage and Stationery, Bank Charges, Photocopies, Local Fax’s,
   - Consultations
   - Principal
   - Take on Developments
   - After Hours Consultations
  

• Requests for Documents by Bono Fide third parties
  - Copies of Rules, Sectional Plans, Audited Financial Statements, Insurance Policies
  - Reconciliation of Owners Accounts for a period prior to Take On
  - Clearance Certificates
  - Insurance Certificates / Noting of Bondholders Interest
  - Extended Clearance Certificates
  - Tax Certificates
  - Monthly Income and Expenditure Statements and Levy Roll to Non-Trustees