What is MCST Audit and Why is it Important

1. What Is an MCST Audit and Why Is it Necessary? Owning a home in a shared building means more than just taking care of your own space. Neighbours must work together to keep the building safe, clean, and running well. One way to check if everything stays in order is through an MCST audit. But what is an MCST audit, and why does it matter? This article will explain why MCST audits exist, what they do, and why every property owner should pay attention. What is an MCST Audit? An MCST (Management Corporation Strata Title) audit closely inspects how the people managing a building’s shared spaces handle money. This audit tracks where the money flows, confirms if expenses match records, and spots any mistakes. In simple words, a trained expert checks if the MCST spends the building’s money wisely and fairly. The audit happens once a year, but if problems arise, extra checks help prevent bigger issues. This process gives homeowners confidence that their maintenance fees go to the right place and not to wasteful or unfair spending. How Does an MCST Work? An MCST manages all shared areas in a building or condominium. These areas include: ●Lifts and stairs ●Hallways and corridors

2. ●Roofs and walls ●Playgrounds and swimming pools ●Gardens and parking lots ●Security and cleaning services Homeowners pay monthly or yearly fees to cover the costs of keeping these areas in good shape. The MCST collects this money and uses it to maintain the building. Some of the MCST’s key tasks include: ●Keeping shared spaces clean and safe. ●Gathering money from homeowners and spending it responsibly. ●Following all property management laws and rules. ●Hiring people to clean, fix, and protect the building. Since these tasks involve handling money, regular audits help confirm that everything stays honest and clear. Why is an MCST Audit Important? 1. Keeps Money Matters Clear Homeowners want to know how their fees get used. An MCST audit carefully checks records to ensure every dollar goes to the right place. Auditors look at spending and match it with the recorded expenses. Clear and honest records help homeowners trust the MCST. Without audits, people may worry about how their money gets spent and may even argue over it. 2. Catches Problems Early Regular audits detect financial mistakes before they turn into big trouble. If the MCST spends too much on repairs or pays for things it shouldn’t, an audit will flag the problem. Spotting and fixing small mistakes early prevents bigger financial messes later. 3. Helps Plan for the Future Good financial planning keeps a building in top shape. An MCST audit helps leaders see how much money they have and what they need for future repairs. If a big project like roof fixing or painting the building is coming, the audit will show if enough money has been saved. This way, homeowners avoid sudden extra costs. 4. Follows the Rules

3. Laws require MCSTs to manage money properly. Skipping audits can bring legal trouble. A proper audit confirms that an MCST follows financial laws, collects fees correctly, and keeps accurate records. If an MCST ignores audits, it may face fines or other penalties. 5. Helps Homeowners Make Smart Choices Homeowners vote on big decisions, like hiring a new cleaning company or fixing a broken lift. An audit gives them the right facts to make smart choices. Without clear financial records, homeowners might vote on things without knowing if the building can afford them. 6. Holds the MCST Accountable An MCST must spend money wisely. If an audit finds that money is missing or records don’t match, the MCST must explain and fix it. Knowing that an audit will happen makes people in charge more careful and responsible with money. 7. Protects Home Values A well-kept building attracts buyers and keeps property values high. If an MCST wastes money, skips repairs, or mismanages funds, the building may look neglected, and home prices can drop. A well-audited MCST ensures the building stays in great condition and maintains its value. What Happens in an MCST Audit? When an MCST audit takes place, a skilled auditor carefully examines financial documents to verify if money has been handled correctly. They look through various records to track income, spending and savings. Some of the most important records they review include: ●Income and spending records– These show how much money was collected from homeowners and how it was spent on maintenance, repairs and services. ●Bank statements– These confirm that the money collected and spent aligns with financial records, ensuring that no funds have gone missing. ●Repair and maintenance bills– The auditor checks these invoices to confirm that money was used for real repairs and necessary building maintenance. ●Contracts with service providers– Agreements with cleaning, security, and maintenance companies are reviewed to ensure payments match the agreed-upon terms. ●Savings for future repairs– The auditor verifies if enough funds are set aside for major future repairs, such as roof replacements or repainting the building. Once all the records have been examined, the auditor compiles a report. This report highlights any financial problems, missing funds, or mistakes in record-keeping. It also suggests ways to correct errors and improve financial management. The MCST then shares this report with homeowners, keeping the

4. financial status of the building open and transparent. Homeowners can use this report to understand how their fees are managed and whether any changes are needed to keep the building in good shape. Conclusion MCST audits make sure money stays safe, buildings stay strong, and homeowners stay informed. When owners understand audit results, they can see how their fees help maintain their homes. Regular audits prevent waste, stop mistakes, and build trust among neighbours. For any homeowner, knowing why an MCST audit matters helps protect their home, keep shared spaces in great shape, and make smart financial decisions for the future. Keeping finances clear, following the rules, and planning ensures that the entire community benefits from a well-run MCST. Thank You