straita

Levies & Funds

Does our strata scheme need an audit?

Short answer

It depends on the scheme’s size and budget. Under the Strata Schemes Management Act 2015, an owners corporation must have its accounts and financial statements audited each year if it is a large strata scheme (more than 100 lots) or its annual budget exceeds $250,000. Schemes below both thresholds aren’t required to, though they can choose to have an audit by resolution.

When an audit is mandatory

An owners corporation must have its accounts and financial statements audited if either applies:

  • it is a large strata scheme — defined as more than 100 lots; or
  • its estimated annual budget is more than $250,000.

Where it applies, the audit must be done each year, in accordance with the Australian Auditing Standards, before the financial statements are presented to owners at the annual general meeting.

When an audit is optional

Any other scheme — under 100 lots and with a budget of $250,000 or less — is not required to audit, but the owners corporation may resolve to have one. Even where it’s optional, an independent audit can be worth doing: it gives owners confidence the money is being handled properly and surfaces problems early.

What an audit actually checks

An audit is an independent examination of the scheme’s financial statements — that the levies collected, money spent and fund balances are accurate and properly recorded. It’s about the numbers being right, not a judgement on committee decisions.

This applies whether or not you have a manager

The audit obligation sits with the owners corporation, not the managing agent — so it applies just the same to a self-managed scheme. You’re a self-managed strata: Straita keeps the levies, payments and fund records straight all year, and the committee just approves the decisions — which makes an audit (mandatory or voluntary) far less painful.

Primary sources