WeconnectU focuses on equipping Managing Agents with the tools and knowledge needed to accurately capture data within the system, ensuring it meets auditors' requirements. Additionally, the system equips Auditors to log into the system to pull any reports and data needed, helping to improve accuracy, streamline the audit process, and reduce the risk of audit invalidation. 

1. Auditor Set Up and Log In

1.1. Capturing Auditor Business User

The first setup is to create the Auditor's user on the system and provide access to the correct communities. Enabling them to log into the system for the Audit process.

Navigation: Global Overview > Settings > Users

On the landing page, it will display all business users as well as the permissions for each.

In the top right corner, click on Add User.

The following pop-up message will appear. Complete the name, email, and cellphone number of the Auditor.

Select the User Type: Auditor from the dropdown menu.

Select the relevant communities to which the Auditor needs access. To select all the communities tick the All option.

After selecting the appropriate communities, click on Save.

1.2. Activating the Auditor's User

Navigation: Global Overview > Settings > Users > Business Users

Once the business user has been created, find the newly added business user. On the right, click on Menu Options click on Reset Password and follow the steps

2. Audit Preparation

2.1. Opening Balance ( As at the beginning of the new financial year)

Navigation: Community Level > Finance > Report - Trial Balance

The Managing Agent needs to ensure that the opening balances in the community's Trial Balance (TB) on WeconnectU align with the corresponding figures in the Annual Financial Statements (AFS). Specifically, the figures in both the Income Statement and Balance Sheet must accurately reflect those reported in the Annual Financial Statement (AFS). This ensures consistency and accuracy in financial reporting.

At the end of an audit, the Auditors issue adjusting journals, which need to be processed to ensure the community's books balance to the Annual Financial Statement that the auditors provide.

This can be done by either viewing the Trial Balance on WeconnectU or by Exporting the Trial balance from the system in Excel, by clicking on the Download Excel button on the far right of the page.

If these balances are not the same, or if the adjusting journals were not processed they need to be added via a Journal before proceeding with the next step. 

If a community was migrated to WeconnectU during the financial period, it is important to ensure the Opening Balance/ Take-on Balance journal balances to the closing figures on the previous accounting system.

If this does not balance, load a correction journal to reflect the correct balances, and do corrections on both systems if necessary. 

2.2. Confirm the correct processing in the General Ledger accounts

Navigation: Community Level > Finance > Report - Actual vs Budget

The Managing Agent will have to check the income and expenses, by taking an in-depth look at the community's Actual vs Budget Report for the full financial year. The same applies to the Reserve Fund's Actual vs Budget report.

Ensure that all income and expenses are assigned to the correct General Ledger (GL) accounts. A quick way to verify this is by reviewing the variance in the Actual vs. Budget Report—any discrepancies may indicate that a transaction was posted to the wrong GL. This review can be performed monthly, allowing you to focus only on the transactions from the previous month.

Secondly, confirm that all the monthly recurring items are accurately recorded. This can be verified by checking if the budget aligns with actual figures and ensuring that each month's breakdown includes the corresponding amounts. For fixed recurring items, the same amount should consistently appear each month.

Note: Export the Actual vs. Budget Report into Excel and add a 'Comments' column to provide explanations for any variances. Ensure you also save supporting documentation for each variance, naming the files according to the relevant GL code. These supporting documents should be saved under the 'Documents' tab for easy reference. Ensure you are pulling the report for the correct financial year.

2.3. Confirm Income Statement Balances as at financial year end

Navigation: Community Level > Finance > Report - Trial Balance, and/for the Reserve Fund > Report - Reserve Fund Income Statement

Ensure the Income Statement's Debit and Credit columns balance. The difference between the two columns will be either a surplus or a deficit. Any Surplus or Deficit will be carried over to the Balance Sheet. 

Note: The report can be exported in Excel, by clicking on the Download Excel button on the far right of the page.

2.4. Ensure the Balance Sheet items are correct, as at the financial year-end

Navigation: Community Level > Finance > Report - Trial Balance, and/for the Reserve Fund > Report - Reserve Fund Income Statement

The Retained Income will automatically be carreid over from the previous years surplus or deficit. The Maintenance (10-Year) Maintenance Reserve Fund should mirror the reserve fund income and expense transactions processed for the year.

2.4.1 Bank Accounts/ Cashbooks

The cashbook balances on WeconnectU need to match the physical bank statement balances and the GL (8000/00?) account. 

Click on the bank name in the Trial Balance to drill down into the specific ledger account and review the transactions processed during the financial period.

Ensure that all reserve fund contributions are deposited into the reserve fund bank account, which must be an interest-bearing account. Additionally, accrue for any planned major works and consider transferring funds from retained earnings into the reserve fund investment account to support these future expenses.

Should there be any discrepancies, please on the following Support Article that will guide you to correct the differences: How to: Balance Cashbook to Trial Balance

2.4.2 Customer Control Account to the Customer Age Analysis and Detailed Ledger

Navigation: Community Level > Finance > Customer - Age Analysis

Export the Customer Age Analysis in Excel and compare the Age with the Customer Control Account on the Trial balance.

To view the Customer Control Account, you can click on the line item on the Trial Balance to drill down on the processing that took place during the financial period.

If the balances do not align, it may be due to Cashbook or Journal transactions being posted directly to the Customer/ Debtors Control Account.

2.4.3 Suppliers Control Account to the Supplier Age Analysis and Detailed Ledger

Navigation: Community Level > Finance > Supplier - Age Analysis

Export the Supplier Age Analysis in Excel and compare the Age with the Supplier Control Account on the Trial balance.

To view the Supplier Control Account, you can click on the line item on the Trial Balance to drill down on the processing that took place during the financial period.

If the balances do not align, it may be due to Cashbook or Journal transactions being posted directly to the Supplier/ Creditors Control Account.

2.4.4 Control Accounts

All control accounts must have a zero balance as of the Financial year-end. If any discrepancies remain, a detailed reconciliation must be provided to explain the variances.

These accounts include the control accounts for Inter-transfer bank account, Insurance, CSOS (Community Schemes Ombud Service), Administrative Fees, and Debt Collection Fees.

The CSOS account must be accompanied by a Statement of Account (SOA) verifying that payment has been made and confirming the community's compliance with regulatory requirements. This document can be loaded on the planner and compliance dashboard or on the general documents function on WeconnectU.

The Debit Order control account, when using Netcash, will consistently reflect a balance. This balance should correspond to the retainer withheld from the previous Debit Order run, typically amounting to 10% or 20%. Download a Netcash statement and include that in your bank statement document.

2.4.5 VAT Control Account

3. Uploading Compliance & Supporting Documentation

The supporting documentation listed above must be uploaded to the WCU system when capturing the data to ensure that attorneys have access to view the required documents.

3.1. Income Statement Documents- Expenses 

All supplier invoices and statements captured will already be uploaded into the system. To verify, one can navigate to the detailed general ledger or detailed supplier ledger and check for a red cloud icon, which will contain the supporting document. 

Alternatively, by navigating to the Finance - Payments screen, one can ensure that the relevant document is available by checking the paperclip icon.

When loading supplier invoices or debit notes, ensure that the supplier invoices, contracts, and proof of banking details are uploaded to the supplier's profile during the capture process.

The proof of bank details of the supplier can be allocated on Finance > Manage Supplier and select the specific supplier. View the documents tab for any documents loaded against that supplier.

3.2. Salaries and Wages

Ensure payroll report balaces to what was submitted to SARS / UIF / WCA and on WeconnectU.

Provide the payroll consolidated report for the financial year, along with proof of UIF, WCA, EMP201/501 submissions, and the statement of account (SOA).

Additionally, it will be necessary to provide any FICA documentation, proof of banking details, and employee contracts.

Ensure that the payroll report balances with the submissions made to SARS, UIF, WCA, and those recorded in WeconnectU.

3.3. Balance Sheet Documents

The following documents should be made available by the managing agent for the auditors.

This can be loaded as general documents on the community or kept seperately on a share drive to be provided to the auditor.

• Provide an asset register that includes all assets listed on the balance sheet, along with the depreciation calculations.
• Ensure that supporting documentation is available for any long-term investments, building valuations, and similar items.
• For accounts such as 'Deposits Paid', 'Staff Loans', or 'Income Accrual', each must be supported with a reconciliation and relevant documents. For example, 'Deposits Paid' should have a statement of account showing the deposit held, while 'Staff Loans' must include a signed loan agreement and a repayment schedule.
• Any accrual or deposit accounts, as well as loan accounts, must also be supported with a reconciliation and documentation. For instance, if there is a municipal account owing, provide the accrual estimate calculation or the statement of account (SOA) showing the outstanding amount.
• 'Income Tax Payable' accounts must be backed by proof of submissions and the Statement of Account from SARS, to enable auditors to submit the tax computation on behalf of the community.
• This also applies to pension accumulations, long-term loans, and long-term maintenance works, which require supporting documents such as loan agreements and pension reconciliations.

3.4. Journals

Journals can include supporting documentation and any related correspondence, which is especially useful when recording audit journals, accruals, or account corrections.

For petty cash, it can be run as a control account, with expenses uploaded as a journal, and the corresponding slips attached as supporting documentation.

3.5. General Documents - Compliance Cards

For bank statements, create a compliance card for each bank account. Consolidate the monthly PDF statements into a single document and upload it to the compliance card. Ensure that the IT3b form is included for HOAs, and provide the bank account statements for all trust accounts managed by the community manager.

Further than that upload the AGM Minutes, Director/Trustee Minutes for the financial year, Signed financial statement, Petty Cash confirmation Letter signed off by the Managing agent and person responsible, CSOS annual return (Proof of submission along with any reconciliation on the general ledger accounts), Insurance Policy (Normal and Fidelity).

3.6. General Documents - Documents Function

Under General or Statutory Documents, ensure that all SARS documentation, such as VAT201, EMP201, ITA34, and the Statement of Account (SOA) for the full financial period, has been uploaded.

Additionally, Conduct Rules and Sectional Title Plans should be added to the Statutory Documents section.

The 10-year maintenance budget can be uploaded either in this section or as a compliance item within the Community Planner and Compliance Dashboard.