CSOS Levy System

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CSOS Levy System

The Community Schemes Ombud Service (CSOS) is a public entity that exists to resolve community scheme disputes.  It is established by the Community Schemes Ombud Service Act. To fund this service, community schemes pay a levy to CSOS based on the levies that they charge to their members.  In system terms, this would be most 'L'evy type properties. CSOS is a VAT exempt organisation, so the CSOS levy will never include VAT.

 

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This facility assists in controlling the process of raising the CSOS levy from scheme members, and paying it to CSOS.

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In essence, a CSOS levy will be calculated and charged to a unit (debtor), and accrued as payable to CSOS.  A scheme could decide to pay the CSOS levy out of it's levy fund, and not charge its members, or block the raising or accruing of the CSOS levy.  These options are accommodated as described below.

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The main CSOS levy raise will analyse each unit's monthly fee structure, selecting and accumulating the total of all included Levy GL code amounts. deducting the exemption amount and applying the Percentage up to the Maximum amount, and then charge and accrue that amount for each relevant unit.

 

The process and utilities cover three main areas:

hmtoggle_plus11. Setup and Control

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Percentage

Enter the percentage that will be applied to the unit levy in excess of the exemption amount in calculating the CSOS levy

Exemption

Enter the amount that can be deducted from the unit levy amount before calculating the CSOS levy.  Eg. If the unit levy is R1200-00 and the Exempt amount is R500-00, the CSOS levy will calculated on R700-00 (In this case 2% of R700 - R14-00)

Maximum

Enter the amount defined by the CSOS Act as the maximum amount of the levy.  The system will calculate the levy up to this amount.

Unit GL Code

Enter the GL code to which the CSOS levy raise to units must be posted.

Creditor GL Code

Enter the GL code to which the CSOS levy accrual due to CSOS must be posted.

Levy includes GL codes

List the GL codes used is the unit fee raise (Fee amounts on Maintain/Setup Unit), that constitute a levy amount on which the CSOS levy will be calculated.

 

You can setup a default CSOS creditor number on the Agent control flags that will be used as the CSOS creditor for all linked properties.  If no default is entered, the system default is creditor number CSOS.  In accounts that centralise (sweep) the CSOS levies charged and pay them from a central creditor, you can enter the default property to which the levies will be swept and the creditor to be used in that property:

 

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hmtoggle_plus1  4. Setup Blocking and Charging options per property and per unit

You can block a whole property from raising the CSOS levy when running the automatic CSOS levy raise, or any unit in a property.  In accounts that sweep the levy to a central point, you can block that sweeping for a particular property.

 

The default CSOS levy charging option is to 'C'harge and 'A'ccrue it.  Some properties elect to pay the levy from their central fund, and do not charge it to their members.  Set the CSOS Control flag as follows:

4.1  Leave blank for the default of charge and accrue.

4.2  Enter a 'B' to block the charging or accruing of the levy for all units in the property.

4.3  Enter an 'A' to accrue the levy as a creditor and not charge the units of the property.

 

 

Property Control flags:

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Unit Control flags to block one unit:

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It is usual to arrange to block the use of your selected CSOS GL codes - 5007 and 6120 in the example above - from being able to be posted to using any journal other that the dedicated CSOS utilities mentioned below.  It is important to keep the two codes in sync with each other, according to the properties setup.  If a unit journal or GL journal is posted to one of the codes, this balance is disturbed.  The facilities below should cover the raising and adjustment of the CSOS levy, keeping the accounts in sync with one another.

 

 
hmtoggle_plus12. Raising and Adjusting

The calculating and raising of the CSOS levy per unit is based on the parameters defined in the CSOS Act, and captured in the setup table above.  To charge the levy to a unit each month could easily be done by manually calculating the levy and adding as part of the unit fee structure.  This works well, but needs to be updated each time the unit levy changes, and can be easily forgotten.  There are circumstances where this will still be necessary, despite the automated fee raise described below, and is accommodated in that if a CSOS levy is charged, it will also be accrued as a creditor due to CSOS.

 

The automated CSOS levy raise is usually run when the monthly normal levies are raised.  It is a separate menu item - Administration, Monthly Routines, Middle of Month, Raise CSOS levies.

 

The raise will calculate the CSOS levy by adding up the amounts of all charges that are posted to the GL codes as setup to be included in the table above, applying the calculation formula as defined in the CSOS Act to the defined maximum, and charging, accruing and sweeping according to each property's setup.

 

When running the raise, select all the properties required, and choose 'N'o to test only. Once run for a month, the system will block any further raises for the relevant month. Choosing 'Y'es to test only will export a spreadsheet detailing all charges and batches, but not produce or post any.

 

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- The batches raised using this utility will be raised in the Billing Period (Next month)

- If your account uses the sweeping facility, remember to turn off bank charges before running the raise and then turning them back on again.

 

The raise option dialogue box:

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The system will allow one CSOS levy raise per month, to prevent duplications.  There is a password option to allow more than one raise.

 

As mentioned above, in certain circumstances the automatic raise cannot calculate the CSOS levy properly.  For these cases, you will need to manually calculate the levy, and add it to each units fee structure.  The system will raise the levy and accrue the charge for CSOS.  An example of this is where more than one section is included on one unit in the same levy (eg. a normal unit and a garage).  There are no validations or checks on the amount.

 

An example of the CSOS levy captured on a unit fee structure:

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Remember to Block these properties (as described in the setup section above), to prevent the CSOS levy from being raised twice.

There are occasions where manual adjustments or charges need to be captured in respect of the CSOS levy. As the CSOS charge and accrual GL codes are usually blocked as mentioned above, you will not be able to capture entries to these codes using unit journals, creditors journals or GL journals.  This utility will allow the adjustment of a CSOS levy, and keep the charge/accrue in balance, according to the properties setup.  This utilty is under Transactions, Journals and Adjustments, For your clients, This Month and Next Month:

 

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Select, Import or Capture

Choose to select a list of units that will populate the capture grid, Import by pasting from a spreadsheet in the same format as the capture grid (see below), or enter past this field to manually capture units and amounts.

Choose a period

Entries can only be posted into the 'C'urrent month, or Next Month (Billing period) accounting period.  The default transaction description will be based on the period selected, or be over-ridden by the month capture below.

Over-ride the period description

Enter a year and month in the format 'YYYYMM' which period will be used in the transaction record.

 

Based on your selection, the capture grid will be displayed completed, partially completed or blank. Once completed, click OK (or '.') for the option to post the entries.  If you choose not to post the grid, it will be stored and retrieved the next time you use this utility.  You will also be asked if the entries are to be posted pre-statement where relevant:

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13502306_m  In the above example, we are reducing or creditiing CSOS levies previously charged.

 

 
hmtoggle_plus13. Remitting the CSOS levy to CSOS

Having created your CSOS creditor using CSOS in the creditor description, and linking the properties to the creditor as described in setup above (Agent control flags), when you run REMITE or REMITC as usual when selecting creditors for payment, you will be asked to Exclude CSOS or only select CSOS creditors.  Remember that the selection is based on the CSOS being in the creditor name:

 

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This normal creditors process will then create a creditors batch for payment as is usual when paying creditors from the system.