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January 9, 2012 | CHOA News | WEC Consulting
ASSET MANAGEMENT SOLUTIONS
Strata Requirement to Comply with Order In Council Number 623
New regulations that take effect 1 March 2012 for Strata Corporations are the Depreciation Report and the revised form B. Under the guidence of the Order in Council, a strata will have to set out a program to regulate common property assets by 1 January 2014. By this time physical inventories and evaluations should be completed as detailed in section 94 of the Act, Depreciation Report 6.2(2)(b), (i) through (x) and (c). The following are the highlights of the new regulations:
Depreciation Report
Depreciation reports help strata corporations plan for future repairs and maintenance costs. Under the new regulations, the report will contain:
▲ An inventory of common property items including facility systems.
▲ Anticipated maintenance, repair and replacement costs for common expenses projected over a 30-year period.
▲ A financial forecasting section that contains at least three cash flow funding models for the CRF.
Contingency Reserve Fund (CRF)
Strata corporations have a contingency reserve fund to help pay expenses that usually occur less often than once a year, such as maintenance and repairs on common property. Effective immediately, a strata can, by a simple majority vote at an annual general meeting make an additional 25% contribution to the annual operating expenses of their CRF. With this ruling, it will make it easier for strata corporations to choose how they contribute additional funds to their CRF.
Form B
The information certificate (form B) discloses information to owners and purchasers about the strata corporation and the strata lot. Under the new regulation, the revised form B must be completed by 1 March 2012. The absolute due date for the new form B is 1 January 2014. A Strata may choose to use the revised form before that date. The form B will better identify how parking and storage lockers are to be allotted within a strata lot.
Finally, a typical strata is made up of many different types of assets that will be reported on the depreciation report, including elements such as roofs, windows, doors, boilers, light fixtures, pumps, fans, floor finishes, fire extinguishers, emergency exit signs, elevators, smoke detectors etc. Most inventory items will have a life-cycle replacement date that will be assessed for the strata during the inventory audit
if your strata requires an inventory audit prior to the Depreciation Report submission date, contact WEC Consulting Inc for a quote. With competitive rates and easy to read reports, we will design the quote to suit your strata needs. We will organize schedules for preventative maintenance inspections and we will ensure the maintenance staff are able to correctly monitor the assets following our initial review - because unplanned maintenance issues can easily become emergencies. Avoid these events by anticipating areas of greatest need – take a proactive approach to preventative maintenance and call WEC for a free consultation.
DON’T WAIT!
Call 604 819-6201 or visit our web site www.wec-consulting.com for more information.