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Annual Budget Review 2022 and Financial Audit 2021 for Jointly Owned Property

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We are writing to inform you about the RERA circular regarding Budget Review and Financial Audit of Jointly Owned Property Managed by Community Management Company.

These are some highlights from the circular

• For RERA approval, you must submit a proposal from a Qualified Auditor before August 15, 2021, for Budget Review & Finance Audit Service year-end December 31, 2022, and December 31, 2021.
• The circular management clause 3 states that the company cannot appoint an Empaneled Auditor (from RERA) for more than two years, beginning in 2021.
• For the fiscal year 2022, submit an annual budget for service allowance fees on real estate jointly owned up to a maximum of 31/10/2021. In addition, a financial Audit must be submitted by 15/03/2022.
• All projects have a fiscal year that begins on January 1 and ends on December 31; it starts with registration at the RERA and ends on December 31 for all new real estate projects. December 31, 2008The, the same year. It completes each year on December 31.
• To obtain offers from market service providers, issue tenders with at least three bids, and consider the recruitment and hiring of national companies through Mohammed bin Rashid Establishment for Small and Medium Enterprises Development at a rate not exceeding 20% of the total amount.
• To regulate the relationship between the parties, you must agree to comply with the Real Estate Regulatory Agency’s Conflict of Interest rules.
• Respect the RERA’s instructions and controls regarding management fees for jointly-owned properties
• The RERA can reject fees for services proposed by management companies in budgets and determine the fair price for the costs. It considers appropriate in light of the review, analysis, and evaluation it does for these budgets. The management company can review the RERA and give the required explanations supported with the documents that support its position on the fees for services offered.
• After completing the annual financial report and following the specified controls and mechanisms, adjustments for surplus or under-budget in previous years’ budgets can be made by invoices for usage or service charges.
• Management bodies must close the regulatory accounts for jointly-owned real estate and transfer all available balances from old bank accounts to new versions. This is to be done by RERA’s instructions and controls.
• Temporary budgets are not subject to approval, except when the RERA considers it necessary.

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