MCST Auditing

Pre-MCST Constituted – Developer to establish Maintenance Fund Account

  • Relevant Statute – “Buildings and Common Property” (Maintenance and Management) Act (Chapter 30)
  • Sect. 9 – Developer has to establish a Maintenance Fund Account upon issuance of the Temporary Occupation Permit (TOP).
  • Sect 10(5) – Developer shall keep proper books of accounts Developer shall appoint an auditor to for annual audit
  • Developer shall file the audited accounts to the Commissioner


 Necessary documentation required for an annual audit 

  • Financial Statements, ie Trial Balance, Balance Sheet, Income & Expenditure Statement
  • Supporting Schedules for all Balance Sheet items
  • Letter from Commissioner, approving rate of maintenance fund
  • Temporary Occupation Permit (“TOP”) letter
  • If developer is GST-registered, all GST forms filed during the year
  • Sale and Purchase Agreement issued by developer to buyers
  • Maintenance Fund calculation worksheet (to determine when to start charging maintenance contribution)
  • All original payment vouchers, bank statements etc
  • Notices of Assessment from IRAS, if any


MCST Formation 

  • Relevant Statute – Land Titles (Strata) Act (Chapter 158)
  • Sect 56 – Every year, the accounts of an MCST must be examined by an auditor, who shall state in his report whether the accounts present a true and fair view of the MCST’s state of affairs
  • An auditor must be an approved Company Auditor


Annual General Meetings (“AGM”) 

  • Sect 38 – An Annual General Meeting must be held once every calendar year AND must be held earlier than 15 months after the last AGM
  • Second Schedule – a notice of AGM must be accompanied by a Statement of Accounts for the MCST and a copy of the auditor’s report on the financial accounts
  • Sect 48 (1)(k) – the audited accounts to be presented at the AGM and must NOT be earlier than 3 months preceding the AGM date.


Necessary documentation required for an annual audit 

  • Financial statements ie. Trial Balance, Balance Sheet, Income & Expenditure Statement
  • Minutes of all council meetings, AGM, and EGM
  • Insurance policies
  • Supporting schedules for all Balance Sheet items
  • Contracts for all service providers, eg. security, cleaning etc
  • Legal correspondence files
  • All original payments vouchers, bank statements etc
  • Notice of Assessments from IRAS


Fees

  • Generally, fees are charged according to time spent on the audit of MCST accounts. In essence, the fees will be higher for a larger MCST development, and whether the development is residential or commercial, will also be taken into account.


Appointment of auditors

  • For enquiry, please contact our customer service division at Tel: 6533 7393 or at info@tanchan-cpa.com.
  • Download appointment of auditors in MS Word.


Relevant Links

Knowledge Base: 
MCST