How to Close a Building – Individual Bank Account Configuration in STRATA Master

Checklist

1. Management Fees

Ensure any final management fees/disbursements owing to the agency have been paid. If the plan is being closed/management ended during the month, calculate the fee amounts manually and process a Creditor Invoice to the AGENCY creditor and process the payment.

2. Reconcile Bank Account

Unpresented Deposits - These will need to be banked/receipts cancelled. (Accounting>Adjustments>Search/Cancel Receipt)
Unpresented Cheques - Check the manual bank reconciliation for any unpresented cheques.These cheques will need to be cancelled (Accounting>Adjustments>Search/Cancel Payment) and a “Stop Payment” placed on the cheque.

3. Reconcile Investment Account

Enter any closing interest/fees as necessary. (Accounting > Adjustments > Investment Reconciliation). Check that the balance of the investment account/s on the balance sheet matches the close of account cheque received.

4. Unpaid Invoices

Check for any unpaid invoices by printing the “Outstanding Creditors” report. If there are unpaid invoices, they will need to be cancelled and invoices provided to the new agent to be paid.

5. Bank Fee for Cheque or Closing Account

This fee type is expected to be charged by the Bank to the Bank Account when the Bank Account is closed. If you send the funds without accommodating for this fee, the Bank account will be left overdrawn and require funds input by your Agency.

To accommodate for this fee, contact the Bank to find out what the fee will be and enter the fee charge in the bank reconciliation screen prior to forwarding funds to the new Management. This will reduce the funds in Strata Master to send, while also recording the fee in the reports to be issued. The fee amount will remain in the Bank account until the Bank deducts the fee, leaving a nil balance.

6. Reports

Generate strata roll and financial reports for new managing agent. These can include but not limited to:

Cash Management
Balance Sheet/Statement of Financial Position
Income and Expenditure Statement/Statement of Financial Performance
Insurance
Levy Positions
Outstanding Owner Invoices
Strata Roll
GST (if GST registered)

NOTE: For individual accounts Steps 6, 7 & 8 are OPTIONAL. Optional meaning 'may not apply'.

7. Review Balance Sheet for Cash At Bank - Unallocated

If a balance is found, review the Levy Positions Report to determine which lots as these amounts will need to be taken up.

Link to instruction to take up unallocated funds is https://kb.rockend.com/help/accessing-unallocated-funds-in-strata-master

8. Transfer to New Agent

Accounting > Adjustments > Quick Pay

Select Other Payee by Cheque (or select direct entry when funds are being EFT'd)
Draw one quick cheque with two dissections
- Admin Fund Portion: Admin—Other Expenses--Admin (154400)
- Sinking Fund Portion: Admin--Other Expenses—Sinking (254400)

For the amounts showing in the Financial Snapshot on screen under – Cash At Bank

9. Balance Check

Under formatted reports, print the Strata Bank Balances Report and make sure that all balances for the lost plan are zero.

10. Management Ended Date

Enter the Management Ended Date on the Structure tab of Corporation screen.

11. Deactivate Bank Account

Configure > Bank Accounts > Select Account. F3 or Edit and de-select Active option check box.