MSTS108 REPORTING FUNDAMENTALS

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1 Copyright Mystrata South Africa Pty Limited 2014 Version 1.0 (March 2014) STUDENT WORKBOOK

2 COURSE OUTLINE CONTENTS 1.0 Financial Reports Accrual vs Cash Reporting Annual Financial Statements Aged Service Charge Statement Unit Ledgers Non- Financial Reports Exporting Data Page 2 of 22

3 1.0 FINANCIAL REPORTS All reports, financial and otherwise, for a property are accessed under the Property > Reports menu. The available financial reports include: Annual Financial Statement Income and Expenditure Statement Income and Expenditure Transaction List Balance Sheet Trial Balance Cash Flow Statement General Ledger Transaction List Other Accounts (ledgers for Investment fund for example) Cash Payments Journal Proposed Annual Budget Cost Centre Report Unpresented Bank Transaction Report (reconciliation report) Aged Creditors Accounts Payable Transaction List Aged Debtors Debtor Statements Accounts Receivable Transaction List Levy Position Statement All Sections Levy Statement Aged Levy Statement Aged Levy Statement - Yearly Other Levies Issued (one off expenses) Section Ledger Journals Unidentified Levy Payments Each report has various options such as date range, formatting and various options specific to the report. Page 3 of 22

4 PRINTING A REPORT 1. Select a report in the list 2. Set the parameters of the report in the Options panel 3. Click Print in the command bar 4. Once you have printed/saved/ ed your report click the Close button to close the print preview screen Page 4 of 22

5 1.1 ACCRUAL VS CASH REPORTING Accrual Accounting is defined as: Accrual (accumulation) of something is, in finance, the adding together of interest or different investments over a period of time. It holds specific meanings in accounting, where it can refer to accounts on a balance sheet that represent liabilities and non- cash- based assets used in accrual- based accounting. These types of accounts include, among others, accounts payable, accounts receivable, goodwill, deferred tax liability and future interest expense. For example, a company delivers a product to a customer who will pay for it 30 days later in the next fiscal year, which starts a week after the delivery. The company recognizes the proceeds as revenue in its current income statement still for the fiscal year of the delivery, even though it will get paid in cash during the following accounting period. The proceeds are also an accrued income (asset) on the balance sheet for the delivery fiscal year, but not for the next fiscal year when cash is received. While Strataware supports both cash and accrual accounting, in community management it is recommended to use accrual accounting so as to provide your trustees with a true and accurate position of the scheme s finances at any given moment. THE FUNDAMENTAL DIFFERENCE Within Strataware there are two key accounting ledgers when looking at expense items: 1. Accounts payable ledger 2. General ledger The accounts payable ledger is where invoices are entered as they are received. This increases the accounts payable liability for the building. Entries made in this ledger do not affect the scheme s cash balance. The general ledger is where payments are made. Transactions in this ledger directly affect the scheme s cash balance. When generating your income and expenditure statement in Strataware using accrual accounting, the report gets all of its information from the accounts payable ledger. When using cash accounting it gets the information from the general ledger. This is the most important thing to understand when working with Strataware s financial statements. Page 5 of 22

6 1.2 ANNUAL FINANCIAL STATEMENTS The Annual Financial Statement ( AFS ) is considered to be our flagship financial report. It comprises a coversheet, balance sheet, income and expenditure statement as well as automatically generated notes for the balance sheet. It is the report used for trustee meetings and audit. It is important to note that the balance sheet and income statement can be generated independently of the AFS if required. Note that as this report is usually generated in an accrual accounting method (see above) the line items on the income and expenditure statement come from the Accounts Payable ledger. Page 6 of 22

7 Above: AFS cover page Page 7 of 22

8 Above: AFS balance sheet Page 8 of 22

9 Above: AFS income and expenditure statement for general fund Page 9 of 22

10 Above: AFS income and expenditure statement for reserve fund Page 10 of 22

11 Above: AFS notes to the financial statement Page 11 of 22

12 1.3 AGED LEVY STATEMENT There are various aged debtor reports, the most important of which is the Aged Levy Statement this is the report that will match your Levies in Arrears line item on your balance sheet and is the only aged debtor s report that should be submitted with your financial statements. As with most of our reports there are various options available such as the ability to show the report based on days or periods. However the most important option is the Exclude unpresented transactions tick box. EXCLUDE UNPRESENTED TRANSACTIONS This box needs to be ticked in order for the report to match the Levies in Arrears line item on the balance sheet. If un- ticked the report will include all unpresented (un- reconciled) transactions, including post- dated cheques ( PDC ). This is useful for internal collection procedures, however for the purposes of generating financial statements unpresented transaction cannot be considered as assets. Page 12 of 22

13 1.4 SECTION LEDGERS A section ledger or levy statement is what other systems might refer to as a customer account. Levy statements can be generated from the Property > Reports screen, however they can also be accessed via the Property > Accounts > Ledgers screen as well. When accessing this information from the ledgers screen you have the ability to view the data without actually printing the information. Page 13 of 22

14 Above: A section s Levy Statement Page 14 of 22

15 2. NON- FINANCIAL REPORTS Not all reports generated from Strataware are related to the accounts system. Some non- financial reports include: Body corporate certificate Owners financial certificate (clearance certificate or NOC ) Body Corporate register Annual Account Settlement Schedule of section entitlements Insurance report List of Work Orders List of Requests for Quote List of current section owners List of current section occupiers Body Corporate Roll List of trustee members Body Corporate roll Itemised Statement (Management Fees) These reports have various uses for the management team. The Insurance report for example is often used at trustee meetings. Page 15 of 22

16 Above: Insurance report Page 16 of 22

17 Above: Page 1 of the body corporate certificate Page 17 of 22

18 Above: Page 1 of the owners financial certificate Page 18 of 22

19 Above: Register of contracts report Page 19 of 22

20 3. EXPORTING DATA For security reasons most reports in Strataware are not able to be exported to Excel. However some reports can be exported if your user has sufficient security privileges assigned by your system administrator. The following reports can be exported to a spreadsheet: Income and Expenditure Statement Income and Expenditure Statement Transaction list Balance Sheet Trial Balance General ledger transactions Unpresented Bank Transaction Report Accounts receivable transactions list Accounts payable transactions list Levy Position Statement All Sections Levy Statement Aged debtors Aged levy statement Aged levy statement - Yearly Schedule of Section Entitlements Section ledger journals List of Current Section Owners List of Current Section Occupiers Each of the above exports has similar options to the printed reports (such as date range). To export the data simply select your options and click Print as you would a normal report, you will be prompted to save the report as a CSV file which can then be opened in Excel. Page 20 of 22

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22 Mystrata Pty Limited Phone: Fax: Mystrata South Africa Pty Limited Phone: Fax: Mystrata Middle East FZ LLC Phone: Fax: Mystrata Malaysia Sdn Bhd Phone: Fax: Page 22 of 22