End of Financial Year for Strata: A Manager's Checklist

A practical EOFY checklist for Australian strata managers and committees: reconcile funds, prepare statements, review levies, insurance and compliance.

End of financial year (EOFY) is one of the busiest periods in the strata calendar. For Australian strata managers, owners corporations and self-managed committees, it is the point where the year's money, records and compliance obligations are squared away for members. This checklist walks through what to do, in roughly the right order.

A quick note before you start: strata legislation differs in every state and territory. Terminology, audit thresholds, fund names and AGM timing all vary by location and scheme size. Treat this as a general framework and confirm the specifics against your jurisdiction's strata or community-titles legislation and your scheme's by-laws.

When does the financial year end for a strata scheme?

There is no single national strata financial year. A scheme's financial year is usually set by its founding documents or by a decision of the owners corporation, and it need not match the 1 July to 30 June tax year. Many schemes align it with the anniversary of registration or a calendar quarter instead.

To confirm your scheme's year-end:

Check the registered strata roll, the original management statement, or prior AGM minutes.
Confirm whether the year-end has ever been formally changed by resolution.
Note when the annual general meeting (AGM) must be held; most jurisdictions require it within a set number of months (commonly three to six) of the year closing.
Work backwards from the AGM date to set internal deadlines for accounts, statements and any audit.

What does EOFY involve for strata managers?

EOFY for strata means closing the books, preparing financial statements for owners, and getting ready for the AGM. The core tasks are:

Reconciling the bank accounts and the administrative and capital works (sinking) funds separately.
Preparing the financial statements and arranging an audit if one is required.
Reviewing levies and preparing the next budget.
Reviewing insurance and the building valuation.
Reviewing compliance and essential-services obligations.
Retaining and archiving records.

Each is covered in detail below.

How do you reconcile the administrative and capital works funds?

Direct answer: reconcile each fund to the bank and ledger separately, never as a single pooled figure, because money raised for one fund generally cannot be spent on the other without authorisation.

Most schemes operate at least two funds: an administrative fund for day-to-day running costs, and a capital works fund (also called a sinking, reserve or maintenance fund depending on the state) for major and long-term repairs. To reconcile them:

Reconcile the bank balance to the cash book for the full period, resolving any unpresented cheques or pending deposits.
Split the closing balance correctly between the administrative and capital works funds.
Confirm any inter-fund transfers were properly approved and documented.
Check that capital works expenditure was genuinely capital in nature, not operating costs misallocated to the reserve.
Reconcile the levy ledger: total levies struck, received, in arrears and paid in advance.
Investigate and document any variances before the accounts are finalised.

What financial statements does a strata scheme need at year-end?

Direct answer: at minimum, an income and expenditure statement and a statement of financial position (assets, liabilities and fund balances), prepared per fund, plus supporting schedules.

A complete EOFY statement pack typically includes:

An income and expenditure statement for each of the administrative and capital works funds.
A statement of assets, liabilities and members' funds (the balance position).
A levy/arrears schedule showing amounts owing by lot.
A schedule of major expenses and any one-off projects.
Comparatives against budget so owners can see variances.

Keep statements clear and readable. Owners and committee members are not always finance-literate, so plain figures, sensible groupings and budget comparisons help the AGM run smoothly. Purpose-built strata software such as Orveya can reduce manual spreadsheet work here, since the funds and levy ledgers stay reconciled as transactions are entered through the year.

Does a strata scheme need an audit?

Direct answer: it depends on the state or territory and the scheme's size. Audit requirements are not uniform across Australia.

In some jurisdictions an audit is mandatory once a scheme exceeds a certain number of lots or level of annual income. In others, an audit is required only if the owners corporation resolves to have one, and members may vote to dispense with it. To get this right:

Identify the audit rule that applies in your state or territory.
Check whether your scheme crosses the relevant lot-count or financial threshold.
Review whether a past resolution requires or waives an audit.
If an audit is required, engage a qualified auditor well before the AGM and give them reconciled accounts and supporting documents.
Allow time for audit queries and adjustments before statements are finalised for members.

If you are unsure whether the threshold applies, confirm with the scheme's auditor rather than assuming.

How do you review levies and prepare the budget for the AGM?

Direct answer: compare actual income and expenditure against budget, project next year's costs, and set levies that adequately fund both the administrative fund and the capital works program.

The levy and budget review is where EOFY meets forward planning. Work through:

Review actuals vs budget. Identify where the scheme over- or under-spent and why.
Forecast next year's operating costs. Factor in known increases such as insurance, utilities, cleaning and management fees.
Check the capital works plan. Confirm the long-term maintenance plan (where required) is current and that the fund is on track for upcoming major works.
Test for adequacy. Under-levying is a common failure point that forces special levies later; set levies that keep both funds solvent.
Account for arrears. Don't budget on the assumption that every levy will be collected on time.
Prepare a draft budget for committee review before it goes to the AGM.
Schedule levy notices so the new levies issue on time once approved.

What should be on the EOFY insurance and valuation review?

Direct answer: confirm the building is insured for an adequate replacement value, all required cover is in place, and a current valuation supports the sum insured.

Most owners corporations must hold building/replacement insurance and certain statutory covers (such as public liability and, in some states, workers' compensation and office-bearers' liability). At EOFY, review:

The current sum insured against a recent insurance valuation.
Whether legislation in your state requires a valuation at a set interval (commonly every few years).
Renewal dates and that no required cover has lapsed.
Any building changes, additions or new common-property assets that affect the sum insured.
Any valuation or cover gaps, flagged to the committee for action.

Under-insurance is a serious risk: after a major loss, an inadequate sum insured can leave owners personally exposed to a shortfall.

What compliance and essential-services items should be checked at EOFY?

Direct answer: confirm recurring safety, compliance and essential-services obligations have been met and certificates are current, and schedule anything due in the coming year.

Compliance obligations vary widely by state and building type, but a general EOFY compliance check covers:

Fire safety / essential safety measures statements and certificates.
Lift, pool, balustrade and other safety inspections where applicable.
Asbestos register, anchor points and height-safety certification.
Backflow prevention and other plumbing certifications.
Work health and safety obligations for common areas.
Any building-defect or remediation reporting obligations.

For each, confirm the certificate is current, file the evidence, and diarise the next due date.

What records must a strata scheme keep, and for how long?

Direct answer: keep financial records, minutes, contracts, insurance and compliance documents for the period required by your jurisdiction, commonly around seven years but varying by state.

A practical document-retention checklist:

Finalise and store the year's financial statements, ledgers and bank reconciliations.
Archive AGM and committee minutes and notices.
Retain the strata roll and register of owners.
Keep insurance policies, valuations and claims records.
Keep contracts, warranties and major works documentation.
Store compliance certificates and inspection reports.
Confirm the retention period required in your state and ensure records are securely backed up, ideally on Australian-hosted systems. Platforms built for the local market, such as Orveya, keep scheme data hosted in Australia.

A condensed EOFY checklist

Confirm the scheme's financial year-end and AGM deadline.
Reconcile bank accounts and the levy ledger.
Reconcile the administrative and capital works funds separately.
Prepare financial statements per fund with budget comparatives.
Determine whether an audit is required and engage an auditor early.
Review actuals vs budget and prepare next year's budget.
Set and schedule levies for both funds.
Review insurance cover and the building valuation.
Complete the compliance and essential-services review.
Archive and retain all records per jurisdictional rules.
Distribute the AGM notice and statements within the required timeframe.

Working through these steps in order keeps the AGM straightforward, the funds solvent and the scheme compliant. AI-native strata platforms can draft statements and surface variances, but final figures and decisions should always sit with a person, keeping accountability with the manager and committee.

Frequently asked questions

Is the strata financial year always 1 July to 30 June?

No. A strata scheme's financial year is set by its own documents or by a resolution of the owners corporation and often does not match the 1 July to 30 June tax year. Confirm the year-end on the strata roll or in prior AGM minutes.

Can administrative fund money be spent on capital works?

Generally not without proper authorisation. The two funds exist for different purposes, and most jurisdictions restrict moving money between them. Any transfer should be approved and documented, which is why the funds are reconciled separately at year-end.

Does every strata scheme have to be audited?

No. Audit requirements vary by state and territory and often by the scheme's size or income. Some schemes must be audited once they cross a lot-count or financial threshold; others only if members resolve to have one. Check the rule that applies to your scheme.

How long do strata records need to be kept?

Retention periods vary by jurisdiction but are commonly around seven years for financial and key governance records. Confirm the exact period in your state's legislation and keep records securely backed up, preferably on Australian-hosted systems.

When must the AGM be held after the financial year ends?

Most states and territories require the AGM within a set number of months of the year closing, commonly three to six depending on the jurisdiction. Work backwards from that deadline to schedule the accounts, any audit and the AGM notice.

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