When it comes to managing body corporate funds, transparency and accountability are essential. Owners want confidence that their money is protected and managed to the highest standards. That is why Crockers chooses to go beyond what the law requires by commissioning an independent annual audit of our systems and controls.
What the Unit Titles Act Requires
Under the Unit Titles Act 2010, every body corporate must have its annual financial statements audited unless owners vote to opt out at the annual general meeting. This decision requires a special resolution, meaning at least 75 per cent of votes in favour.
If a body corporate chooses to proceed with a full audit, the independent auditor reviews that specific body corporate’s receipts, payments, financial position, and supporting documentation to confirm that the statements are accurate and compliant.
What Crockers Does Differently
Crockers takes an additional step that is not required by law. Each year, at our own cost, we engage BDO, one of New Zealand’s top five accounting firms, to audit the systems and controls we use to manage body corporate funds.
This review tests areas such as:
- Daily reconciliation of bank accounts
- Proper authorisation for payments
- Accurate allocation of funds to unit holders
- Service level agreement compliance
- Segregation of duties to safeguard client funds
BDO selects random samples from across our portfolio and evaluates whether our systems are designed and operating to the highest standard. Their formal sign-off confirms that our financial controls are robust and effective for managing large and complex portfolios.
Why Crockers Chooses to Do This
There is no legal requirement for Crockers to commission this type of audit. We do it because we believe it represents best practice. The independent assurance from BDO gives owners confidence that their funds are not just managed, but safeguarded under a framework that has been tested and approved by one of New Zealand’s most respected audit firms.
We absorb the cost ourselves. We do not on-charge it to our clients, because we see it as part of our responsibility to provide the highest level of transparency and protection.
The Key Difference Owners Should Know
A body corporate audit, decided at the AGM, focuses on one entity’s financial statements. Crockers’ independent audit, on the other hand, reviews the systems and processes we use across all bodies corporate we manage.
Both provide assurance, but in different ways. Together they give owners a clearer picture of how their funds are handled and confidence that Crockers is committed to exceeding industry standards.
