If you do not have a compliant LTMP (Long-term maintenance plan) in place already you may have a auditing problem !
The Stsm Act 2011 effectively came into effect in October 2011. Thus to be applied to audit for 2017 financial statements.
The regulation 25 state that with 4 months after the financial year-end , must the audit be completed.
The new regulation 24 applicable from 10/2016 states that :
- Maintenance, repair and replacement expenses must be funded from the operational budget as derived from an approved (LTMP)long-term maintenance plan. regulation 22
- Reserve funds may only be used for maintenance, repair and replacement in accordance to the approved LTMP, with a provision for emergency repairs, in case of safety or where the it could not have reasonably be foreseen in the LTMP
PMD offer the most comprehensive LTMP in the market. The LTMP is designed to meet all the requirements of the STSM act and regulations. For more information email us on plan@property md.co.za