Why Fund Separation Matters
One of the most important requirements in strata accounting is keeping administrative and capital works funds separate.
Administrative Fund
Used for day-to-day operating expenses such as:
Cleaning
Gardening
Insurance
Utilities
Repairs
Capital Works Fund
Used for future major expenditure including:
Roof replacement
Painting projects
Lift upgrades
Building improvements
Benefits of Proper Separation
Improved transparency
Better budgeting
Legislative compliance
Easier committee reporting