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Sandton Country Club Estate
Home Owners Association
Chairman’s Report
Finance
Financial Report for the Year Ended 28th February 2007 & for the
Period 1st March to 30th June 2007
- Financial Year 1st March 2006 to 28th February 2007
This second financial year of the Association was not a straightforward year from a financial perspective in that we worked off 3 different budgets. The 1st budget was submitted by the township developer, a new budget then kicked in on 1st April and lastly the 3rd and current budget, which became effective from 1st September. We also changed managing agents effective from 1st November 2006 and changed from a centralized bank account kept by the previous managing agent to our own bank account. I am pleased to report we have implemented an effective system of control where the finances of the Association are managed efficiently and with the cooperation of the managing agent, Berader Properties, we are able to easily monitor the month-to-month income & expenditure of the Association.
Significant items pertaining to the audited financial report include:-
Income Statement:-
- We had a small operating surplus after expenses in the amount of R1,375, however once depreciation (a bookkeeping entry) is stripped out we had a surplus of just under R150,000.
- Expenditure was more than double that of the previous financial year i.e. from R405,000 to R966,000 mainly due to:-
- Depreciation of R147,000 – We did not have depreciable assets in the last financial year.
- Maintenance of building & grounds of over R100,000;
- Repairs to roads – mainly Sunbird Street R82,000.
- The managing agents fees also includes salary to our Estate manager which increased by R163,000 from the previous year.
- Municipal charges also increased by R34,000 from the previous year.
The Balance Sheet :-
- Accounts (Members) Receivable was significantly reduced in that we had arrears of R249,800 at the beginning of the year. At the end of the year we had levies received in advance in the amount of R50,800;
- The auditors determined that the previous managing agent, Adprop owes the Association an amount of R15,982. We are currently attempting to retrieve these funds from Adprop;
- Our cash on hand at the end of the year was R373,550;
- The Association invested about R454,000 on depreciable assets including the Security System, Office Equipment, furniture for the clubhouse, Computer equipment and garden equipment & furniture.
- Trade & Other payables in the amount of R81,900 was for amount due to the contractor and engineer for the water damage road repair to Sunbird Street.
- Financial Period 1st March to 30th June 2007
- As at the end of June our cash in bank amounted to R275,000;
- Although our arrears stood at R25,000 the bulk of this amount includes levies received in advance from owners. As at 30th June there were about 11 owners that owed the Association in excess of R72,000 in total. The managing agent is doing their utmost to collect these amounts outstanding from these respective members;
- Since the start of the financial year, the Association other than the usual monthly expenses, has purchased and spent on the following items:-
- 2 braais next to the clubhouse – cost R8,500;
- Street Poles & Names – R10,500;
- 3 phase electricity for flood lights to both tennis courts – R30,000;
- Landscaping and water feature in front of the guardhouse and 1st traffic circle – total cost approximately R63,000 June/July expenditure;
- Certain sports equipment was also purchased;
- About R18,000 was spent on speed humps however this expenditure was made in July.
Finance - Summary
The Association is currently receiving an additional amount of approximately R21,000 for double levies charged to owners who did not start building operations from 1st January 2007. This amount is expected to double, as these levies will quadruple effective from 1st July.
A new budget was prepared effective from 1st March 2007. This budget provided for an increase in levies from R850 to R930 per month, however because of the above incremental income, the Board deemed it prudent to keep levies at the current R850 per month. The Board shall monitor the situation and shall make adjustments during the financial year should it become necessary.
Lastly, provision has not been made for landscaping of the various traffic circles in the Estate. Funding for this amount shall be made out of the excess funds available to the Board from the incremental levies received or a special levy may be imposed, as the case may be.
Plan Approval/Building Activity
As at the time of drafting this section of the report (June 2007) the following chart summarises the building activity for the estate.
Members that have not yet submitted plans for approval are urged to do so as soon as possible. Owners of vacant stands (currently 26) are reminded that should building operations not have started by 1st July 2007, levies will have quadrupled at that time. The rationale for this decision was that in certain instances the doubling of levies was not sufficient motivation to get owners with vacant stands to start building. It is in everyone’s interest that the sooner the Estate is complete the sooner homeowners can settle down to normal living and get away from living on a building site. Also, having builders and labourers in our Estate exposes the current residents to additional security risks .The original intent of the agreements with the Township Developer, supported by the elevated levies for vacant properties, was to complete the development of all properties by December 2007, or as soon as reasonably possible thereafter.
For owners still in the process of developing plans, please ensure you take note of the architectural guidelines on the SCCE web site. Furthermore, to expedite approval, your architect should include the completed HOA checklist with the plans at the time of submission. The checklist and other helpful hints are listed on the SCCE website (
Maintenance & Security
Landscaping: Entrance and 1st circle
We have contracted with a landscaping company namely, Green by Nature to landscape and upgrade the fountain at the entrance in front of the guardhouse and the 1st traffic circle within the Estate. A new water feature will be built surrounded with new shrubs, trees and plants. The 1st circle will be landscaped with indigenous plants and trees combined with the use of the existing boulders. It is anticipated that the balance of the traffic circles will be landscaped as building operations wind down. The anticipated cost of this contract will be approximately R70,000 and will funded out of working capital. The work is due to begin on 1st July.
Clubhouse & Facilities
The 3 phase electricity to the club house has been upgraded to accommodate both tennis courts lights that can now be used at the same time.
Some owners have expressed interest in building a swimming pool and trampoline at the Clubhouse. Please make sure to attend the AGM of the Estate in order to voice your opinion in this regard. A vote will be called for in this regard. Please feel free to approach the Board of Directors with your ideas for the Clubhouse area.
Two soccer goals, a netball net and table tennis table were recently purchased. Two basketballs and table tennis equipment were also acquired. We trust this will be enjoyed by the residents. There are also plans to build a separate basketball court and cricket net for our young enthusiasts.
Kindly note that should you wish to make use of the club house facilities for a party or function, please book a date and time with Johan 072-051-3577. The use of the clubhouse is for residents only.
Security
We are in the process of connecting a Merkom System to the guard house which will enable residents to be notified when they have visitors. This will only be used in the evenings and on weekends.
We have been using our own in-house guards for the better part of a year now. It seems to be working well and we take this opportunity to thank Johan Claasens and his guards for the work they are doing in ensuring our safety and security.
Street numbers and names
Street numbers have been assigned to all stands. The numbers have been distributed to the all the owners by email. Furthermore, Johan Claassen, our Estate manager, has put up the street names. The signs are temporary and will be upgraded to more aesthetically pleasing ones that will conform to the standard of the Estate.
Please take note of your street name and number. A list of the new house numbers will be kept at the guardhouse for further reference. Owners that are still using their stand number outside their properties are urged to take them down and use their allocated street number.
222 Bowling Avenue
The Estate has also been given a new street number by GIS (Geographical Information Systems, Joburg Council). The correct address for the Estate is 222 Bowling Ave, Sandton Country Club Estate, followed by your new street address within the Estate.
Drive carefully
As more people are moving into the Estate there are children riding bicycles as well as people walking with prams. Please drive carefully at all times. Please remind visitors as well as builders that the speed limit within the Estate is 20 km/h.
Motorbikes and Quad bikes
In the interest of all residents we would like to ask you to keep the usage of motorbikes or quad bikes to a minimum, i.e. only to drive in and out of the Estate. We have received several complaints. Children should not be allowed to ride through the Estate on motorbikes. This disturbs the peace and tranquillity of our Estate. Bikes are welcome in the Estate but please keep them un-motorized. No “Joy-riding” of motorized bikes in the Estate is allowed.
Speed Humps
By now members will have noticed that 3 speed humps were installed on the main road. There will be discussion at the AGM to determine members’ sentiment in this regard.
Dogs within the Estate
We have received several complaints from residents about dogs roaming freely through the Estate. Please be considerate and keep your dogs locked up or walk them on a leash. Public areas need to be cleaned up by the person walking the dog if necessary. Please poop-scoop!
Residents are also complaining about constant barking of dogs. Please be considerate at all times. We do live very close to each other and need to be constantly aware of our neighbours.
Conclusion
I would like to thank the Board of Directors, past and present for their efforts. They have given up their free time to ensure the smooth running of the Estate. I would also like to thank Johan Claassens, our Estate Manager for the effort he has made in the general upkeep, security and maintenance of the Estate.
Thank you
Trevor Hosiosky