Transparency in the control of accounts is a key in the professional financial management, helping avoid disputes and complaints as well as prevent corruption risks. To specify all financial matters, management companies or the Management Committee should comply with following guidelines:
- An imprest cash system should be adopted for minor purchases;
- Official receipts should be issued upon collection of management fees or other payments;
- An interest-bearing bank account shall be opened in the name of the corporation for uses related to management of the building;
- No cheque or withdrawal slip is valid unless it is signed jointly by the treasurer and at least one other member authorized for that purpose;
- All bank statements, cheque books and passbooks should be properly kept by a treasurer;
- All income and expenditure items should be recorded promptly and cleared every month;
- All receipts should be categorized, filed in order and kept for not less than 6 years;
- A copy of summary of income and expenditure of the corporation should be displayed in a prominent place in the building at least once every 3 months for at least 7 consecutive days; and
- A management committee shall prepare, not later than 15 months after the date of the registration of the corporation and thereafter every 12 months, financial statements (shall be audited by an accountant if a building contains more than 50 flats) which, together with the accountant's report (if any), shall be laid before the corporation at the annual general meeting of the Managements Board.
