Shivani Apartments @ Thiruvanmiyur, Chennai

70.     Funds- Funds may be raised by the Association in all or any of the following ways,-

a. by shares
b. by payment of periodic maintenance charges / other contributions and donations by the unit owners
c. Surplus from previous years maintenance operations
d. by raising loans, if necessary, subject to such terms and conditions as the Association may determine in this behalf.
e. Expense that are regular and recurring in nature like staff salary, annual equipment maintenance charges,  license fees, statutory expenses, utility charges, minor repairs (civil, electrical or mechanical not exceeding Rs.10000 each) and fuel or other consumables (required for running the generators / equipment in use) can be met from the funds raised vide clauses (b) and (c) above. These expenses, in general, are expected to be budgeted by the Managing Committee and approved by the members of the association in a general body meeting. Any other expense like major civil work, painting of the building, purchase or replacement of assets, setting up of common facilities, security improvement, staff welfare measures, drilling bore wells, purchase of water, festivities and legal expenses require the explicit prior approval in a general body meeting.
f. In case of unplanned emergency expenses related to utilities like water, electricity or lifts and building safety which cannot wait for an approval in a general-body meeting, the Managing Committee can spend without prior approval from the general body, an amount not exceeding Rs.100,000 cumulatively for each financial year. This provision shall not apply when the association is ‘dormant’. Details of such expenses should be published to members beforehand when possible or within a week otherwise.
g. A sum of Rs. 3 (Rupees Three) per sq ft will be collected and set aside in bank deposits as Emergency Maintenance Fund. This fund can be utilized when the money available at any point of time falls short of the need to meet the expenses covered in this clause 70, subject to approval by a majority of the managing committee.  Any amount utilized out of this fund should be replenished before the end of the following August.
h. Any refundable deposit collected from the members should be kept deposited in the bank account and not be used to meet any of these expenses.
i. Utilization of the funds raised vide (a) and (d) shall be for the purpose for which the funds were raised.

73.       Account

1.  The association shall open a bank account and deposit the money received on behalf of the Association.   The signatories for this account shall the Treasurer and either the President or the Secretary.
2. The Secretary may retain in his personal custody an amount not exceeding Rupees one thousand, for petty expenses.   All payments above Rupees five hundred shall be made by cheque, signed by the Treasurer and either the Secretary or President.
3. The Managing  Committee shall on or before the 31st day of July in each year place before the general body an audited financial statement of the previous financial year comprising of:

     i.          the receipts and payment account

    ii.          the income and expenditure account

    iii.         a balance sheet detailing the and assets and liabilities of the association giving such particulars as will disclose the general nature of these liabilities and assets and how the value of fixed assets have been arrived at

    iv.         the report of the auditors on the above

    v.         a report of the managing committee

74.  The audited financial statement shall be opened for inspection of any member of the Association during office hours and a copy shall be submitted to the competent authority not later than the 15th day of August of every year.

75.   Every financial statement shall be accompanied by a list of the unit owners and the similar list of loans.

76.  Publication of Accounts and Reports - A copy of the last financial statement and of the report of the auditor if any, shall be kept in a conspicuous place in the office of the Association.

77.  Appointment of Auditor- The Association shall appoint at its general meeting auditor who shall audit the accounts of the Association to be prepared by the Managing Committee.

78.   Power of Auditor -  The auditor shall have powers to call for and examine vouchers, documents etc relating to 

1. any receipt, expenditure, asset or liability recorded / recordable in the association’s books
2. any other matter properly falling within the purview of the association, such as suits by/against the association, condition of the common properties etc.
3. any other matters considered relevant by him for the purposes of his audit.

 He has  the right to address the members or submit a special report on any matter of concern and it shall be obligatory on part of the  managing committee to circulate the same amongst the members.