Drag & Drop Website BuilderWhen dealing with a fiscal audit that reveals numerous errors and deficiencies in the financial records, making amendments for the new period can be highly challenging.
Auditors often recommend adjustments to the opening balances to correct these issues. However, if these instructions are not implemented, the deficiencies carry over into the current period. Over time, when reviewing financials spanning five to ten years without any corrections, these errors can compound into significant discrepancies.
In the BCAP financial framework, which does not rely on retained earnings to address deficiencies, the income statement must be balanced. Levies are calculated to support this balancing process, as it is impossible to reconcile the other ledgers and bank accounts if the income ledger is out of balance. This underscores the importance of ensuring that all the current financials are accurately balanced.
Once this is achieved, maintaining a balanced system for all future accounting periods becomes straightforward and sustainable.
In essence, a balanced financial foundation is critical for long-term accuracy and efficiency. By addressing errors promptly and ensuring the income ledger is in balance, the BCAP framework simplifies the process of maintaining financial integrity across all future periods.
This framework provides a dynamic and self-balancing income statement and bank accounts for the current period in Excel, ensuring accuracy and efficiency in financial management.
To enable trustees to effectively address discrepancies in the Maintenance and Municipal components, we are developing a Management Portal. This portal will facilitate advanced adjustments to be made two weeks before the start of the current period. By implementing these adjustments ahead of time, the financial framework will seamlessly import the updates, ensuring the current audit is accurately revised for the new period.
This proactive approach eliminates the need to wait for the new period to begin before making adjustments, streamlining the process and ensuring a smoother transition into the new accounting cycle. The portal will empower trustees to maintain financial accuracy and efficiency while reducing the risk of errors or delays.
Introducing our AI-powered automated Ordinary/Admin levy system! This intelligent system dynamically adjusts itself in real-time to accommodate any changes in revenue or running costs, guaranteeing a perfectly balanced income statement at all times.
Proof of Concept: Body Corporate Financial Framework (BCFF)
We have successfully developed a tailored Quality Management System (QMS) specifically for the sectional title industry, leveraging genuine "Body Corporate Accounting Principles." We have been testing our system on a challenging set of 2024 financials with a huge surplus well over R600,000.
Recent advancements have been integrated into our auditing process, and during the testing of our new “Future Proofing Tool” which encompasses both the Fiscal Audit and the Current Audit, which achieves a balanced approach for the income statement.
Throughout this audit testing process, we uncovered several deficiencies, particularly disruptions in the income statement caused by the misclassification of non-income items within the ledger. To address these issues, we employed AI to analyse the income statement, identifying non-income-bearing obligations recorded in the revenue ledger. This analysis led to the creation of a detailed report categorising these obligations as liabilities to be correctly reflected on the Balance Sheet.
As a consequence of the report's findings, we have revised the Balance Sheet, Income Statement, and Banking ledgers to rectify the misclassifications of obligations across each ledger, reengineering our technology to ensure the entire system remains balanced. There are different requirements for Short and Long term obligations to maintain harmony.
Our efforts resulted in the elimination of any surplus or shortfall in the income statement, as well as addressing collection shortfalls in the banking system, often collections only achieve 20-25% of their obligations due to prior ledger imbalances. Banking reserves can be increased directly in our new segregated dual banking and auditing ledgers providing 100% results.
Additionally, our system has recommended updates to accounting policies to accommodate these new developments.
Currently, there are two commercial AI platforms hosting financial AI systems similar to ours, utilising their AI for cross-verification of our work. One platform launched a year ago, while the other began operations in March 2025, both attracting a growing number of subscribers. We are exploring these opportunities further as we finalise our 10-year auditing system with the latest enhancements.
Note: These enhancements require five steps to follow, starting with the Pre-Audit system.
We intend to produce a blueprint for educational purposes as accountants do not understand how AI and the BCAP system functions.
We have enhanced our scaling formulas to accommodate levy collections ranging from R150,000 to R10 million, introducing five refined adjustment tiers anchored to our original methodology. These upgrades enable precise calibration, delivering significantly improved accuracy. By integrating three additional banking parameters into our AI-driven formulas, we now offer advanced scaling capabilities optimised for broader financial analysis.
Our Future Proofing System has evolved into an indispensable auditing solution, enabling real-time financial monitoring between reporting periods. During rigorous testing, the technology identified numerous previously undetected errors. We have significantly enhanced the system's performance to automatically correct calculation discrepancies and classification inaccuracies that previously distorted income statements.
Our Current audit will display the modified version of the original Fiscal audit in both Future proofing system or Income Statement by entering a Zero (0) in the inflation element.
Through comprehensive financial restructuring, we have:
• Streamlined reporting by removing non-income obligations from income statements
• Ensured proper ledger allocation for all financial obligations
• Reconciled banking balances with reserve funding requirements
• Restored full financial integrity across all statements
The system now delivers completely deficiency-free financial records through continuous automated validation and correction processes.
Other Utilities:
Municipal electricity and water consumption calculator. Can verify your municipal bills. Gauteng only at this stage. Tariffs updated on a yearly basis.
In-House electricity meter reading with 12 month consumption reports. Can easily check if meters are faulty. Produces import reports for account billing. Pay for what you use method.
Staff wage register with all the features for loans, deductions, sick leave, medical, provident fund, Paye & UIF etc.
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