By April 1, management organizations will have to prepare and submit to the owners a report on the implementation of the management agreement for 2020. In what form is it compiled, where to get information for it and what to do if the owners of the premises criticize it? The director of the Institute of Housing and Communal Services Management, Irina Malikova, answered these questions.
Annual report: what to disclose and for what period, main errors of the management
Management organizations are required to report
The obligation to submit a report on the implementation of the management agreement for apartment buildings to the owners is enshrined in Part 11 of Art. 162 Housing Code of the Russian Federation. As a general rule, the report must be submitted during the first quarter of the current year for the previous year. In the management agreement, this period can be changed, so you should focus on the terms of the agreement: if the terms are indicated in it, then we are guided by them, and if there are no terms, then during the first quarter.
Housing legislation provides for the obligation of the management authority to submit a report, but does not contain provisions on what form it should be provided in.
The State Duma is considering a bill that proposes to oblige management organizations to post reports on information boards in common areas of an apartment building, publicly accessible to owners, and information boards at the location of the management organization.
Read more in the article
Watch an online training seminar on preparing an annual report
On February 16, Irina Malikova, General Director of the Institute of Housing and Communal Services Management LLC, an expert on the Housing and Communal Services Commission of the Public Council under the Ministry of Construction of the Russian Federation, conducted an online seminar “Report on the implementation of the management agreement for 2020.”
Watch the demo video on the YouTube channel of the P1 Association →
The expert examined the questions to which management organizations most often seek answers when preparing an annual report:
- in what form the report is compiled;
- what should be the content of the document if its form is not approved in the management agreement or in the OSSS;
- why is it necessary to confirm the fact of completion of work, services for the maintenance and repair of common property;
- can the management agreement be considered a subscription agreement;
- why funds for current repairs of common property are recognized as targeted funds;
- how to prepare summary information included in the report;
- how to calculate savings;
- whether unused target funds for current repairs are considered savings under the management agreement;
- how to correctly adjust the amount of payment for CD on SOI.416
Watch the online seminar demo to see what else we talked about. And if you want to know the answers to the questions listed above, we recommend purchasing the full video. You will find it, as well as the lecturer’s presentation, under the article.
How to draw up a management agreement correctly: we sort out the mistakes
Where can I view the report in the GIS Housing and Communal Services
The MA report must be placed in the Housing and Communal Services State Information System. Part 11 of Art. tells us about this. 162 of the Housing Code of the Russian Federation, and clause 16 of section 10 of the Order of the Ministry of Communications and Mass Communications of the Russian Federation and the Ministry of Construction and Housing and Communal Services of the Russian Federation dated February 29, 2021 No. 74/114/pr
The report is publicly available and does not require registration to view it. Exception: Moscow, St. Petersburg, Sevastopol, since the provisions of Part 10.1 of Article 161 of the Housing Code of the Russian Federation on the obligation to ensure free access to information (including information about the reports of the administrative authority) through its placement in the GIS Housing and Communal Services apply from July 1, 2021. In these cities, the report must still be posted on the Housing and Communal Services Reform portal and the requirements of Rule 731 must be met.
At the request of a blog reader, I will demonstrate in video format how to find a report from a management organization (house address Moscow Region, Ramensky District, Ramenskoye, Kommunisticheskaya St., Building 40/1)
The article will be useful: Collection of debt for housing and communal services in a joint manner: why is it beneficial for the manager, what is the essence
We tell you how the management company is obliged to report annually for the owners’ money
Why report to owners? How to find it in the GIS housing and communal services system. What to do if postscripts are found.
Reporting annually to the residents of the house is one of the main responsibilities of any management organization, be it a management company, HOA, housing cooperative, etc.
How and when does this happen? By law, before April 1 of each year, the management company must publish a report on its work for the year on the website of the State Information System of Housing and Communal Services (GIS Housing and Communal Services) at dom.gosuslugi.ru. A copy of the report can be published in the section of a specific house on the official website of the management organization.
IT IS IMPORTANT TO KNOW! The obligation of the management organization to report annually to the owners is enshrined in clause 11 of Art. 162 of the Housing Code of the Russian Federation. The annual report is considered the main document that is published as part of the activities of the management company. Signed by the head of the organization. Oral reporting is not permitted.
The main thing that the annual report should contain:
• What exactly of the planned activities was done (and with a detailed justification of the costs incurred in accordance with the needs of the house).
• What exactly and why could not be done.
• How much money has been saved, what are these savings planned to be spent on this year.
The Centers for the Protection of Citizens' Rights often receive complaints from owners that the management company did not report or reported formally. In this instruction we will tell you how a management company should prepare an annual report. What to do if the money was written off according to the report, but the planned work was not carried out. What to do if the management company ignores its responsibility and does not report to residents.
WHY DO OWNERS NEED A REPORT?
This is a report on the funds that residents allocated for the maintenance and ongoing repairs of housing throughout the year. And this is a lot of money!
Besides the fact that this is a serious amount, there is a very important nuance! The fact is that the law allows the management organization to take back all the saved funds if, during the year, all the necessary work in the house was carried out, the services were provided with high quality, and there were no complaints from residents about the published report.
Check if this is true? Frankly speaking, the number of companies against which the owners have no complaints can be counted on one hand.
Have you had any complaints about the quality of services? Complaints about leaks, cold batteries, broken elevators, or untimely garbage removal must be filed after the fact. Otherwise, it is then extremely difficult to prove that the management company did not cope with its work and does not deserve encouragement.
IT IS IMPORTANT TO KNOW! Pay attention to the MKD Management Agreement, which is concluded between you and the management company. How does it reflect the conditions for managing savings at the end of the reporting year? If, according to the Agreement, annual savings are not accumulated in the personal account of the house, then in what amount and for what needs does the management company have the right to spend these funds.
The question is not idle. Thus, the reason for the residents of one of the apartment buildings in the Novgorod region to go to court was the annual report of the Criminal Code. From the report, the owners learned that the housing office decided to spend part of the annual savings on repaying the debt for housing services of persistent defaulters. The owners were rightly indignant: why are they now paying off the debts of negligent neighbors from the funds that they paid monthly for housing maintenance costs? The case reached the Supreme Court of the Russian Federation.
Alas, the MKD Management Agreement included a clause according to which the management company has the right to dispose of the saved funds in this way. The court supported the position of the Criminal Code. That is why the Centers for the Protection of Citizens' Rights advise owners to pay attention to what is stipulated in the MKD Management Agreement.
The report is an opportunity to make sure that the list of work carried out in the house corresponds to those listed in the document. Discrepancies of tens of thousands of rubles often arise here!
For example, work on painting the entrances was planned for last year. In fact, the work was not completed by the end of the year, and the Acceptance Certificate was not signed. Or residents were dissatisfied with the repairs carried out. And in the report, the management company indicated that it carried out the repairs efficiently and on time. And I wrote off a decent amount for it.
There are also more cynical situations when the report includes repairs that were carried out, which in fact did not happen at all. Remember, all repair work around the house, maintenance of all communications throughout the year, pest control measures, replacing light bulbs or broken glass, removing snow or watering lawns - everything that happens in the house and for which the owners paid is subject to audit and must be included in annual report.
That is why it is so important that an MKD Council is created in the house, and the housing community gets acquainted with the annual report. Representatives of the House Council have the right to request additional evidence of work performed, as well as documents confirming expenses incurred.
HOW TO FIND THE ANNUAL REPORT IN GIS Housing and Communal Services INDEPENDENTLY
To find a management company report for your home, you must follow these steps:
Type in your browser the address of the GIS Housing and Communal Services website - dom.gosuslugi.ru.
2. On the blue block of the main page of the site, find the inscription “Registers”. Click and select the “Register of Housing Facilities” tab. There you will be asked to find your house, either by entering its address or by the name of your management company.
3. At the bottom, click the link “Information about the housing property.” A plate with the general characteristics of the house will open. In the “Managing organization” column there should be a link “Information about the management of apartment buildings”.
4. Open this link. A new window will appear with subheadings from “General Information” to “Use of Common Property”, after which there is also a list button (four blue horizontal stripes).
5. Click on this button and select “Management Report”.
6. Next, you need to specify the reporting period. After which a link to the file should appear with the ability to download it.
SAMPLE CONTENTS OF THE ANNUAL REPORT
A unified form for the annual report of a management organization is not established by law. If the owners and the management company agree on their own reporting form, which is part of the MKD management agreement, then the management organization has the right to use such a form. Or develop your own form, applying the recommendations from the Order of the Ministry of Construction of the Russian Federation dated July 31, 2014 No. 411/pr.
One way or another, the annual report must have a title, indicate the start and end date of the reporting period, the name of the management organization, license number, legal and actual address of its location, seal and signatures of authorized persons.
But the most important thing, of course, lies not in the form, but in the content of this document. In how detailed the information on income and expenses of the house is disclosed.
The first block in the report is devoted to the general characteristics of an apartment building.
Including the address of the apartment building; year of construction and number of floors; area of residential and non-residential premises and premises included in the common property; land area; design and technical parameters of the house; information about the engineering and technical support systems that are part of the common property (for example, the presence of common house meters, a private boiler room, etc.).
The second block concerns the main indicators of financial and economic activity.
Financial and economic activities include all income and expenses incurred by the management company during the year for the maintenance of the house. This is all the money transferred by the owners for housing and communal services, additional contributions (if any are accepted by the general meeting of owners), contributions for major repairs (if the house is saving money in a special account, the owner of which is appointed by the management company).
The expenditure part must list all types and characteristics of work actually performed on the house or in the house or services provided for the management, maintenance and repair of common property: list of work, date, type of work, estimated cost, deadlines, actual cost, Acceptance Certificate - transfer of work.
The same block of the report contains information about the utility services provided. Including information about suppliers of utility resources, established prices (tariffs) for utility resources, standards for the consumption of utility services (standards for the accumulation of municipal solid waste).
This also includes income received by the management organization under agreements on the use of common property by third parties (Internet providers, cellular operators, advertising on and inside the house), where and in what quantity this money was sent.
The amount of debt of the owners to pay for housing and communal services, as well as the debts of the management company to resource-supplying organizations, is also given. All types and amounts of administrative penalties against the management organization by the State Housing Inspectorate, Rospotrebnadzor, courts and other inspection organizations where the management organization was the defendant are listed.
Also listed and deciphered are all amounts of contributions for major repairs received in the reporting period, the size of the capital repair fund as of the date of the report, the amount of funds used from the capital repair fund for intended purposes.
A separate block concerns the consideration of public complaints and response to complaints.
All cases of violation of the terms of the Management Agreement, frequency and quality of provision of utility services are listed here. The number of violations, dates of violations, number and size of recalculations in favor of residents are given.
An important part of the report is the work plan for the maintenance of common property planned for the current year. This plan addresses issues of resource conservation, improvement of the house and local area. In this way, the management company shows its readiness to carry out activities that will prove their effectiveness in the process of managing common property.
THE REPORT HAS BEEN PUBLISHED. WHAT TO PAY ATTENTION
First, the information about your home posted in the housing and communal services GIS system must match what is indicated on your payment receipt. The area of the house, the area of common areas, the cost of housing maintenance services, the size of tariffs for utilities and housing services, etc. – must be identical.
Secondly, information about the contracts of the management company with any organizations that provide the house with resources, or those hired to carry out repair and maintenance work on the house, must be reflected in the GIS housing and communal services system from the moment these contracts are concluded.
Thirdly, the housing office must indicate the degree of wear and tear on the structural elements and communications of the house. Describe all expenses for current repairs, maintenance of communications, the cost of landscaping the local area, maintaining public places, etc.
The report reflects information on taxes, fees, fines that were issued by the management company during the year, the debt of residents in payments for housing and communal services and the debt of the management company, if any, to resource suppliers (RSO).
Alas, from the report you will not find out what salary or bonus the director of the management company, engineers, lawyer or economist receives. The management company is not accountable to residents regarding the internal structure of its business. But since you also pay for the work of these people, you have every right to demand impeccable work from all management services throughout the year.
IF THERE ERRORS OR OMISSIONS ARE FOUND IN THE REPORT
If the management organization has not posted a report for the previous year by April 1 of the current year, it faces an administrative fine under Article 7.23.3 of the Code of Administrative Offenses of the Russian Federation “Violation of the rules for carrying out business activities in the management of apartment buildings.” For officials, it will range from 50 to 100 thousand rubles or will entail disqualification of the director of the management company for up to 3 years. For an organization – from 150 thousand to 250 thousand rubles.
As a rule, management organizations still submit reports. It’s just incomplete or so formal that it fits on one piece of standard paper. Of course, the owners are not ready to accept the report in this form.
If, in the opinion of the owners, the annual report does not disclose (or partially discloses) information on the work performed, the cost of such work, etc., then residents can submit a request to the management company.
This right is enshrined in clause 40 of the Rules for the maintenance of common property in apartment buildings, in accordance with Decree of the Government of the Russian Federation No. 491. Within five days from the date of application, the management company is obliged to provide, at the request of the owner, a full report on the list, volumes, quality and timing of services provided and work performed. In addition, the owner has the full right to demand correction of defects and shortcomings in the work and services provided, if any are discovered.
If errors, inconsistencies, or discrepancies in calculations are identified in the annual report, in all cases of disagreement with the report data, the owners have the right to prepare a written claim and send it to the Management Company.
If the management company is disingenuous, delays response times, or the annual report contains additions to the cost of work performed or work that was not actually performed, the owners have the right to file a complaint with the housing supervision authorities, the prosecutor's office, and also unilaterally terminate the contract with the manager company.
IT IS IMPORTANT TO KNOW! Information on the activities of all organizations managing apartment buildings must be available for five years. If any clarifications or changes are made to it, the publication period is strictly limited. In the GIS housing and communal services system, all adjustments must be made within seven working days, at the information stands of the management organization - within two working days.
Comment on the report under review
The report of this MA is drawn up according to the form and contains exactly as much information as was required to comply with Rules 731. The report form in accordance with Rules 731 was approved by Order of the Ministry of Construction dated December 22, 2014 No. 882/pr.
Order of the Ministry of Construction 882/pr approved the form of the MA report, which should be posted on Reform-Housing and Communal Services and the MA website in the cities of Moscow, St. Petersburg, Sevastopol.
This form of the report was mandatory for all MAs and was filled out to fulfill the requirement of Rule 731: it was to be posted on the MA website, on the information board in the MA office, and on the Reform-Housing and Communal Services portal. Now this form is mandatory (as well as compliance with the requirements of Rule 731) until July 1 in the cities of Moscow, St. Petersburg, and Sevastopol.
Submit a report to the owners using one of five options
The management organization provides the owners with a report in the manner established in the management agreement or in the OSSS. If the management agreement does not specify the method of submitting the report, then, according to established practice, the management entity determines it independently.
Irina Malikova listed several ways how this can be done:
- Conduct an informational reporting meeting for premises owners.
This is not an annual or extraordinary OSS, but an informational one. There is no need to assemble a quorum: the number of owners who attend the meeting will be the same.
- Provide a report at the annual general meeting of owners.
It is necessary to put the issue of providing a report on the agenda of the meeting. Irina Malikova noted: not a single legislative norm contains a requirement that the owners of the premises give their assessment of the document: express their opinion whether the management organization worked well, satisfactorily or poorly last year. The main thing is to simply submit the report.
- Publish the report in a news newspaper specially issued for the occasion.
The newspaper can be placed in mailboxes. The method is convenient during a pandemic because you do not need to personally contact anyone.
- Send the document in writing to each owner.
This is an expensive method, but suitable if you manage a small apartment building.
- Place the document on information boards in the entrances or in the local area.
What should the management company change in the entrances of the house to increase the loyalty of residents?
