Baker Tilly Merali's

Dubai real estate regulatory authority (RERA) has deemed every owner of a unit of property in Dubai to be a part of this owners association by default. The owners association requires the owners to maintain their own units by themselves along with making sure who visits them and their behaviour. The members of the owners association require to nominate by voting a chairperson and a treasurer who collect the money from the members and maintain the community.

Owners association and Master communities  audit is an audit conducted on service charges charged to communities. These charges include an Owners association charge which is the maintenance of commonly used assets between 2 or more units example chillers, boilers, corridors, lifts etc which are more commonly found in buildings, plus a Master community charge where assets which are commonly used by the whole community are maintained eg roads, street lightings etc and provisions made to replace them after a certain period of time eg street lights, tunnels etc.

These service charges are initially based on budgeted costs and in the next year are ideally based on last year actuals. These facility management teams or companies provide the maintenance with a specific charge to each owner based on a charge out rate per square foot.

We come into the picture at the year end when we audit the expenses incurred by this facility management company. We audit whether the owner is getting value for money, the expenses charged are reasonable, are not inflated, are actually being incurred. In all we give the owner satisfaction that the amount he is paying is reasonable and is getting value for his money.

We carry out stringent checks on the accounts of that community and/or owners association ( as mentioned before two or more units sharing common property more commonly seen as buildings or floors). We not only check for expenses we audit charge out rate the receipts from the owners and the payments to suppliers. We give you a comprehensive look at the accounts and make the accounts as transparent as possible for the owner/end user.

Real estate regulation authority are closely looking at the service charges being charged out by Emaar, Nakheel etc after numerous complaints from owners about the services charges. Since 2009 onwards no facility management team is allowed to increase their service charges. Any increase will be closely scrutinized before giving any sort of approval. Thus good reason must be provided by the FM team to justify any increase.

We have staff with enough experience, talent and capability to handle such an audit to give our clients 100% satisfaction that they are receiving good value for the money they pay.