5.1.3 Ways to add value | Owners Corporation Network

5.1.3 Ways to add value

There are a multitude of ways a treasurer can add value depending on their time available and the level of detail they are willing to manage. Creating a culture of careful and considered spending will permeate the executive committee, strata manager and building manager. A short list of value adding activities a treasurer can do themselves or ensure are done by others:

  • Clearly understand the need, scope and specifications for goods and services required
  • Collect a range (3 minimum) of ‘good’ quotes that meet specifications
  • Adjust specifications as new information comes to light through the quoting process
  • Summarise and present the pros and cons of each quote
  • Monitor proposals for under/over capitalising
  • Negotiate with the providers for a better deal
  • Understand any over-quote amount charges and only pay if satisfied they are appropriate
  • Find opportunities to specify and run market based tenders for key and long term goods and service provision
  • Check quotes versus invoicing especially for larger cost or key services and goods.
  • Where work is done not according to quote, but as per a schedule of rates, ensure that that schedule of rates has been approved and agrees with invoiced charges
  • Develop a good relationship with service providers
  • Ensure that all spending is approved by themselves or the executive committee
  • Record and reconcile payments.
  • Require monthly reports of past spend and estimated future spend from the strata manager and building manager
  • Ensure spare cash is generating interest
  • Ensure that all insurance claims are followed through for recovery
  • Monitor the monthly pro rata administration and sinking fund spend versus plan
  • Present monthly or quarterly budget versus spend report and  Identify budget under or over spending
  • Prepare an annual overview of financial position
  • Create annual budget for owners corporation approval
  • Question the need to spend and the amount of spend on any and every item