09/09/2022
CONDO DR FREE SERVICE HUB 大马高楼居住问题多多
A written reply by Condo Dr Joseph Wong
Date: 08092020 Repost 09092022
QUESTION: What is the most important task after taking over?
Answer: Thank you, very good question.
Back to the basics is TOPMOST
Let me explain WHY BACK TO BASIC IS IMPORTANT IN PROPERTY MANAGEMENT.
Returning to the origin and most important things after taking over a new project
Never take any info passed on to you and you adopt it straight away, without carrying out a basic due diligence process (cross-checking) failing to do so, is a BIG mistake and is professional negligence in my opinion.
IS PARAMOUNT IMPORTANT & UPPERMOST
First thing after taking over, carry out back-to-origin cross-checking, fundamental tasks carry out cross-checking (the starting point survey) to check the starting points, meaning cross-checking the with the records info. Figures and numbers tally with records.
Never adopt any info based on their face value. Your predecessor might have made an error in computing or during data migration, wrongly keying the info
the info in the billing system set up Firstly: Essential to cross-check to determine the accuracy of info in the billings system set up
1) Baseline check to determine the total number of units tally with the records
2) Baseline checks total share units of the project tally with the records
3) Cross checking & to determine the accuracy of the maintenance fee cost per one share unit correctly set in the billing system
4) Cross checking & to determine the accuracy of the sinking Fund 10% computation
correctly set in the billing system
Example
1. Maintenance fee is set at RM 0.346 per share unit
2. Sinking Fund is set at RM 0.34
Do you see the difference?
Result of this mistake
The Total Sinking Funds can never tally with 10% of the maintenance fee
Secondly: BEFORE FULLY ADOPTING THE BILLINGS SYSTEM FROM JMB OR THE DEVELOPER
1) to carry out forensic cross-checking by the experienced accountant of numbers in the Opening Balance tally with the Auditor Reports,
Thirdly, to check the individual states, the total outstanding owing tally with records
To share a TRUE STORY here
IT: Boss: Something is not right, cannot import this info into our system, it kept rejected by our system
Boss: What’s not tally?
IT: Total share units, Sir, the SU is much lesser based on records handed over & records found, our system auto computed shows that the SU should be HIGHER. And I double
confirm using my own Excel calculation, INDEED the number does not tally. A physical count of the parking bays also found 20 units more than records. These don’t make sense to me, boss
Boss: if so, we need to carry out a forensic investigation to determine why this is so,
BM you to instruct your technician to do a physical count number of units on each floor, level by level
Boss: I want the reports. Or findings next week.
FINDINGS
BM: Boss, hope you won’t have a heart attack, after hearing this
Boss: what is the BAD NEWS?
BM: We are now able to determine why total SU of this condo, why not tally? We found that the Developer has constructed 7 units more than in the DEVELOPMENT ORDER (DO) allowed on this building and all these ghost units, belong to the Developer’s Directors. THE PENTHOUSE and other units were never in the billing system for the past 28 years. This rogue Developer has been cheating the purchasers by reprogramming their billing system to exempt themselves from paying the monthly maintenance fee & sinking Funds.
The Developer has constructed the GHOST unit is not the first case,
my personal knowledge at least 2 Developers in Malaysia. Constructing more parking bays than allowed is nothing New to me. Hope you are clear
If you have any questions to ask the consultant, please email your questions to [email protected]. But not posting it on Facebook.
Thank you
EMAIL: ask [email protected]