As a licensed brokerage providing strata management services to over 150 strata corporations, Wynford is required to submit an Accountant’s Report to the Real Estate Council of BC (RECBC).
The RECBC’s Audit program is responsible for continuously auditing brokerages and real estate professionals throughout BC, and evaluating filing of annual Accountant’s Reports. This program ensures brokerages are operating in accordance with the Real Estate Services Act, Regulation and the Real Estate Rules.
During an audit, an RECBC auditor will:
- ensure that each licensed brokerage has proper controls in place to protect trust monies at all times, and
- identify any deficiencies in the office operations and books and records.
To summarize, an accountant will select a sample of Stratas based on the guidelines provided by the RECBC and complete required procedures on the sample chosen. Some of the procedures would be: to verify payments from the trust accounts are authorized and supporting documents (i.e. invoices/contracts) are on file, all trust accounts are reconciled monthly, reviewed & approved (within 5 weeks), cheques/cash received are deposited in a timely manner, strata management fees withdrawn are correct per the service agreement etc. An exception is when the accountant finds an issue with the previously noted examples.
Kudos to the Wynford Accounting Team!
For a number of years, the Wynford Accounting Team has received “No Exceptions” on the Accountant’s Report, and this year was…no exception!
The Accounting Team at Wynford is lead by VP Finance, Terri Bains, who before joining Wynford was a Director and led the Strata Audits at a leading Strata Audit Firm. When asked if receiving no exceptions is hard or not, she explained:
“It is not easy receiving an Accountant’s Report with no exceptions. At Wynford we have extensive controls in place to ensure all Council Rules are followed. For example, we ensure all payments made out of trust funds have appropriate supporting documentation. We implemented a new accounts payable system which has enhanced the process. Also, we work hard to ensure our clients receive their financial statement packages, including bank reconciliations, in a timely manner, deposits are recorded promptly, and we always obtain Strata Council approvals for all CRF withdrawals etc.”
The RECBC’s Audit Program is a consumer protection and confidence measure. At Wynford, we take this seriously. By having no exceptions, our Strata clients can take comfort knowing that an independent auditor has reviewed our records to ensure their funds are handled appropriately and in accordance to the rules.