OMCs: Multi-Unit Development Act 2011 – Annual Report
As discussed in a previous post the Multi-Unit Developments Act 2011 (MUD Act) requires that an Owners’ Management Company (OMC) to provide members with an Annual Report each year.
Directors need to understand that this report is separate from their company law Director’s Report that is included with their Directors’ Report and Financial Statements. While some of the information is similar there are some additional requirements made by the MUD Act. This is covered by Section 17 of the Act and notes that the following should be included and that a meeting should be held at least once each year to consider the report:
To cover the Act as it currently stands, here are some of the main sections in brief:
- Statement of income and expenditure.
- Statement of assets and liabilities.
- Sinking (building investment) fund information
- Statement of funds held, and
- Details of annual contribution to the fund and basis for same (SF budget)
- Statement of annual service charge and basis for same for the year covered by the report and the current year (budgets)
- Details of any planned expenditure of a non-recurring nature (refurbishment, improvement, or maintenance)
- Statement of the insured value of development, along with the amount of premium charged, the name of the insurance company and summary of the principal risks covered
- Statement in general terms setting out the fire safety equipment and maintenance of sam
- Statement fully disclosing any contracts in place between the OMC and any director/connected person of a director of the OMC