billing / collection of Levies
Our preferred means of communication for the distribution of levy statements is via e-mail, by no later than the 25th of each month.
We encourage owners to utilise the debit order payment option when paying their levies to increase cash flow, eliminate cash risk, reduce bank fees and promote better budget planning.
Faircape Management Services is also registered with PASA (Payments Association South Africa) as a third party payment provider.
We use an international, cloud based accounting system that is customised to fit the unique needs of Sectional Title and Home Owners Association finances for Faircape Management Services.
We incentivise our schemes to take advantage of the debit order system by reducing our property management fee by 2.5% should 75% or more of owners be on debit order.
effective credit control
Our debtors function consists of dedicated Credit Controllers who proactively manage arrears levy payments from owners. We realise that good levy collection is essential to the smooth running of the Body Corporate and we do not allow outstanding levy accounts to get more than two months in arrears before handing these accounts over to attorneys.
Even before arrear owners are handed over we endeavour to collect the outstanding debt through reminder letters, emails and telephone calls. Once accounts are two months in arrears we issue a final demand letter which will result in handover should the account not be settled. Once handed over we then actively manage our attorneys where bi-monthly meetings are held with them to discuss the progress of legal action taken on any of the debtors handed over. The success of this pro-active approach has ensured that none of the Body Corporates managed by us has required the assistance of a financing agency for their cash-flow requirements.
processing of funds
We manage the Body Corporate/Home Owners Associations’ funds in individual bank accounts and furthermore invest surplus money in interest bearing accounts.
Payments are made on a weekly basis and can be done daily upon request to ensure a fast turnaround time for our clients and suppliers. We ensure that all recurring payments are made every month. As municipal costs usually account for a substantial portion of the monthly expenses – we check the municipal account with caution and will inform the trustees of any anomalies noted.
financial bookkeeping, reporting
and annual audit
Monthly management accounts are prepared every month for each of our Bodies Corporate that we manage. A dedicated team of accountants prepare monthly management accounts by the 25th of the month. Each set of accounts are then reviewed and signed off by two of the partners (both professionally qualified) before the accounts are sent to Trustees. We believe that this regular monthly reporting on a proper accrual basis is a significant advantage for Trustees in ensuring that their Body Corporate is financially sound, and allows them to monitor on a monthly basis any variances to budget.
In order for the trustees to make informed financial decisions at all times, we provide them with a comprehensive Management Pack on a monthly basis including:
- Balance sheet (with supporting documents)
- Income Statement
- Budget Variance Report
- Cash Flow Statement
- Rent Roll
- Reconciliation of accounts / Schedule
- Trial Balance
- Debtors Age Analysis
- Copy of the City of Cape Town account
We will prepare all documentation and schedules needed to be presented as part of the audit pack to be given to the auditors as part of the annual audit - this will include full accounts, schedules and supporting documentation.
The Annual Financial Statements will be checked for correctness before distributed to the trustees for approval.
It is our duty to ensure that the scheme complies with all statutory requirements.
All employees of FMS managed Bodies Corporate have their salary processed by Faircape’s payroll team. Salaries are processed monthly via the Sage VIP system and paid directly into the employee’s bank account via secure EFT. Each employee also receives a printed payslip.
The payroll service includes full monthly payroll processing, transferring of the salary to the employee’s bank account, as well as deduction, processing and payment of statutory monies including PAYE, UIF and SDL. Further to that, the Faircape payroll team will do monthly and annual EMP recons, process tax year end, COIDA reports and payments, as well as the processing of annual bonuses and salary increases on instruction of the trustees.