How is financial transparency maintained in an Owner Management Company (OMC ?

Financial transparency in an Owner Management Company (OMC) is a key responsibility and legal requirement under Irish law, particularly under the Multi-Unit Developments Act 2011 and the Companies Act 2014.

The OMC must operate in a transparent manner so that all unit owners understand how their service charges are used and how the development’s finances are being managed.

Key aspects of financial transparency include:

• Annual Budgets:
  The OMC must prepare and circulate an annual budget detailing expected income (mainly from service charges) and planned expenditure for the year.
• Annual General Meeting (AGM):
  At the AGM, financial statements are presented to all members. This includes a breakdown of income and expenses, outstanding debts, and reserve fund status.
• Audited Financial Statements:
  Depending on the size of the OMC and its constitution, audited or independently reviewed accounts must be made available to members.
• Service Charge Accounts:
  The OMC must maintain separate accounts for service charges, ensuring funds are used only for the purposes outlined in the annual budget and approved by members.
• Sinking Fund Transparency:
  OMCs are required to establish a sinking (or reserve) fund for long-term capital works. Members should be informed of the fund’s status, contributions, and planned usage.
• Access to Records:
  Members of the OMC are entitled to access key documents, including financial records, contracts, and meeting minutes upon request.

Maintaining transparency not only ensures compliance with legislation but also builds trust among unit owners and supports the long-term financial health of the development.