MONTHLY SERVICES

MONTHLY LEVY STATEMENTS

• Distribution of monthly levy statements that set out levy, water and electricity consumption (where applicable) and any additional fees.

• Levy statements are primarily delivered via e-mail to the owners residing in the complex, or distributed via hand, fax or normal post depending on each owner’s requirements.

LEVY PAYMENTS

• Direct bank deposits into the complex's bank account.

STRICT ARREARS COLLECTION PROCEDURE

• Due to owners / tenants often not paying their accounts or levies timeously, it is 2nd Storeys’ policy to administer accounts on a strict 30 day basis. Levy statements are distributed around the 20th of each month and owners are requested to settle all accounts by no later than the 7th of the following month. The final cut-off date before interest and late payment fees accrue is the 20th of the following month.

• At the end of each month arrear levies are identified and calls / faxes/emails/sms are sent to the parties involved by the portfolio manager according to 2nd Storey's collection policy, which policy is confirmed at each annual general meeting. If 2nd Storey receives no response, the trustees or directors are provided with a summary of arrears levies as part of the dashboard report, together with recommendations as to how the arrears should be procured. 2nd Storey endeavour to recover such outstanding amounts by best means possible.

• Included in the service is handling of all accounts/queries by any client, owner or resident.

PAYMENT OF EXPENSES AND CREDITORS

• The payment of creditors occurs weekly according to the following procedure:

• Once a week the Trustees or Directors are provided with an electronic dashboard report via e-mail setting out payments for that week. In accordance with the provisions of the Sectional Titles Act, or the memorandum of incorporation the majority of the Trustees or Directors must approve those payments via return e-mail before payment will be made via electronic banking.

• A budget view if provided with the invoice.

• In the event of any specific directions / restrictions imposed on the Trustees or Directors at the annual general meeting, 2nd Storey is to monitor and ensure payments are made in accordance with such directions / restrictions.

• Owner, Trustee or Directors claims shall be paid into such person’s bank account and shall not be set off as a credit against levies, unless authorised by the Trustees or Directors in writing.

FULL FINANCIAL ADMINISTRATION

• 2nd Storey conducts a full monthly financial administration service on Pastel Accounting. This entails cashbook administration, full debtor administration, reconciliation of bank accounts, necessary month-end journal entries and all supplementary services.

• 2nd Storey shall provide monthly financial statements and reports to the Trustees or Directors on the website in PDF format.

• The website shall include electronic copies of the complex bank statements for each month and on a weekly basis.

ONLINE SERVICES

In addition to the weekly dashboard report, 2nd Storey will provide the following on the Internet website:

• Minutes of Trustee meetings
• Notices and minutes of general meetings
• Financial statements printed from Pastel Partner
• Budgets
• Insurance policies
• Plans of exclusive use areas (if applicable)
• Important complex news
• Members’ Register
• Statutory documents
• Code of conduct

This is updated the first week of every month by the portfolio manager. All the above are password protected and can only be accessed by members of the Body Corporate.

QUARTERLY SERVICES

TRUSTEE MEETINGS

• Attending four scheduled Trustee or Director meetings per year.

• Minutes are to be prepared by the secretary of the Board for distribution to 2nd Storey and for publication on the website.

• Please note that Special Meetings and Special General Meetings are not covered in the fee and will be charged separately.

YEARLY SERVICES

INSURANCE

• 2nd Storey maintains strategic arrangements with various insurance brokers that enable us to obtain the best possible rates for the Body Corporate or Home Owners' Association that we manage. 2nd Storey arranges insurance certificates required by bondholders and noting of bondholders’ interest in the insurance policy. 2nd Storey is also responsible for the administration of all claims in accordance with 2nd Storey approved internal policies.

BUDGETS

Each financial year 2nd Storey prepares a yearly budget, which will determine the monthly levy payable. When preparing the yearly budget the following items will be taken into account:

• Assessment rate & refuse and sewer charges;
• Electricity and water;
• General repairs and maintenance;
• Garden maintenance;
• Management fee;
• Meter readings;
• Auditing Fees;
• Insurance premiums;
• Bank charges;
• Photostats, postage and petty cash expenses;
• Salaries and wages;
• Security and reserves.

• 2nd Storey will arrange a budget meeting with the Trustees or Directors for consideration and approval of the budget and once the budget is finalised, organised the Annual General Meeting.

ANNUAL AUDITS

• 2nd Storey to recommend the appointment of a suitable auditing firm and negotiate auditing fees.

• 2nd Storey will endeavour to hand all information to the auditors as soon as reasonably possible after year-end in order for the appointed auditors to prepare the annual financial statements and produce them to the Trustees/Directors. Annual Financial Statements shall be presented to the Trustees/Directors prior to the annual budget meeting, unless agreed to otherwise.

ANNUAL GENERAL MEETING

• 2nd Storey shall provide the following services with regard to the Annual General Meeting, which meeting is required to be held in accordance with the Sectional Titles Act, 1986 within 4 months after year end:

• Arrangement of the venue

• Attending to the preparations of proxies; nominees and agendas;

• Distribution of notices to owners;

• Attending the meeting, taking minutes and distribution of the minutes;

• Assisting and advising the Board of Trustees/Directors on procedural matters, special general meetings, quorums, proxies, resolutions, voting rights and any other trustee-related issues.

PROPERTY TRANSFER SERVICES

• Liaising with attorneys regarding transfers, clearance certificates and account reconciliations.

• Issuing of clearance advice and certificates.

• Ensuring that all monies due by seller are paid before a clearance certificate is issued.

GENERAL SERVICES

• Regular update of the Body Corporate or Home Owners' Association Register, including updated postal addresses, telephone numbers and e-mail addresses of both tenants and owners. 2nd Storey is to acquire and update the contact details of at least 40% of the owners and tenants in the complex on a monthly basis in order to ensure that the register remains updated over a 3 month period.

• Taking care of all correspondence by the complex and the Trustees or Directors, including distribution of Code of Conduct on a regular basis to new and existing residents.

• Handling of complaints regarding the complex. Trustees/Directors will funnel complaints through to 2nd Storey, once authorisation has been obtained from the Trustees/Directors, 2nd Storey will attempt to deal with the complaint in a speedy and cost-effective manner.

• Administration of employees’ payroll on UIF Solutions (incl. employment agreement and monthly payslips) at www.uifsolutions.co.za

RENTAL SERVICES