Financial statements of retirement villages
As the operator of a retirement village, you must provide quarterly financial statements and audited annual financial statements to residents upon their request.
Quarterly financial statements
A resident may ask you for a quarterly financial statement for 1 or more completed quarters of the current financial year or 1 or more quarters of the last 2 completed financial years.
Statements must be provided within 28 days of the resident's request.
The quarterly financial statement lists income and expenditure for the:
- capital replacement fund
- maintenance reserve fund
- general services charges fund.
The statement does not need to be audited but should be in a format capable of being audited.
Annual financial statements
An annual financial statement must be prepared each financial year. The statement must contains the following information:
- income and expenditure of the capital replacement fund
- income and expenditure of the maintenance reserve fund
- income and expenditure of the general services charges fund
- expenditure involved in providing each general service
- any insurance amounts received
- assets and liabilities of the retirement village
- any interest, mortgages and other charges affecting the village's property.
This statement must be audited and audit report prepared in accordance with the Australian Auditing Standards. Section 113 of the Retirement Villages Act 1999 provides specific details on who can audit this report.
A copy of the audited annual financial statement must be provided to us within 5 months of the financial year's end. Penalties apply for failing to do this.
You must present the audited financial statements at the residents annual general meeting.
An annual financial statement must also be provided to a resident upon their request, within 5 months of the financial year's end.
Every year you must also call a residents meeting to discuss the financial statements as soon as they are available.
You must present the audited financial statements to the residents at this meeting.