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 must comply with prescribed requirements and must include income and expenditure for the period for:

• 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 include all prescribed requirements and contain 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.

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 call a residents meeting to present the annual financial statement and audit report to the residents. The meeting must be called as soon as reasonably practicable after the annual financial statement and audit report are available.

You must present the audited financial statements to the residents at this meeting.