FAQs

Frequently Asked Questions

Discover our frequently asked questions, you can equally fill the form below if your questions are not listed below

• What is the status of JSA and what is the relationship between DEVCRAS, JSA and Devtraco LTD?
  JSA is limited liability company (limited by shares) incorporated by Devtraco LTD to take over the erstwhile Estate Management Office of the Devtraco LTD and continue with the management of the Devtraco Courts. JSA is a related/sister company of Devtraco LTD. So JSA is an estate management service provider whilst DECRAS is JSA’s single customer
• Since less than 50% of residents are paying the EMF, can DEVCRAS have sufficient funds to operate?
  It is true that some residents have built up unacceptably high arrears over the period. Whilst this could be seen a character issue, JSA has also failed to put in systems to collect/demand the EMF. They rather receive payments from walk-in residents as opposed to approaching residents to collect the payments. In the end, the well-meaning few who mind the development of the community pay whilst the rest sit on the fence. Thus, the funds are available; all we need to do is to engage residents on the most flexible and convenient approach to collection and payments. We believe all ...
• Can DEVCRAS manage the EMF as JSA has been doing since July 2019?
  The current ExCo and GC have everything it takes to manage the EMF – we have dedicated executives comprising two Chartered Accountants, a Financial Analyst and a professional property valuer – together they have combined experience of over 80 years! These are ethically conscious people on top of their careers who cherish their reputation and are bound by the ethics of their professions. The diverse and rich professional backgrounds of the other GC members are collectively suitable to manage the EMF which potentially is just under GHS3.2 million annually. The sole source of funding also rests entirely with us. Once ...
• What is the overall strategy that the Finance Committee is proposing to address the challenges?
  The overall strategy being proposed by the Finance Committee is for DEVCRAS to deal with JSA/Devtraco as a company (all residents acting together) rather than as over 1,300 individuals/customers. That is to say that DEVCRAS will collect the EMF into a single account at Ecobank and invite JSA to submit their agreed monthly bills to the Finance Committee of the GC for vetting and approval after which the services providers will paid directly by DEVCRAS either by cheque or bank transfer.
• What is the registration status of Devtraco Courts Residents Association (DEVCRAS) now?
  Prior to March 2023, Devtraco Courts Residents Association (DEVCRAS) was an informal association of residents in the estate. However, GC 2022 registered and/or incorporated the association as a company  limi te d  by  guar antee  (LBG) with the official name “Devtraco Courts Residents Association LBG”. Thus, DEVCRAS is now a legal entity (limited liability company), and the Executive members of the GC are the Directors of the company and the relevant provisions of the Companies Act, 2019 (Act 992) apply to DEVCRAS and its officers
• Software is expensive so why does DEVCRAS want to spend money on acquiring one just to manage EMF?
  It is true that intellectual property including software is expensive. However, for a company with over 1,300 members and a potential income of over GHS3.2 million, FC believes that the acquisition of a cloud-based simple but robust software to manage our own finances timely, accurately and transparently is very imperative. It will make the accounting to residents easier, faster and flexible. It will also increase the speed of response to queries/concerns raised by members and make the state of our affairs visible to all residents anytime and anywhere.  
• Why is it so important for DEVCRAS to manage the EMF?
  First and foremost, we have all witnessed the performance of JSA with the management of our EMF – accountability issues and arrears build up with no explanation. Questionable expenses like excessively high audit fees/professional charges, outstanding DEVCRAS dues and Sinking Fund. Secondly, the sustainable management of the estate goes beyond routine activities like waste bin collection, recruitment and deployment of security, streetlights, etc.; permanent fixing of the inner roads requires heavy investment; and the underground drains have a life span and will require substantial cash flows to maintain or reconstruct after a period. We need to be thinking about these ...
• Does DEVCRAS have the relevant database of all residents to be able manage the finances?
  DEVCRAS has some relevant information on which we can build on. Information from the boom barrier database, WhatsApp groups of the various clusters and information in the possession of JSA are valuable pieces of information which can help DEVCRAS build a complete and accurate database. Cluster reps will be tasked to provide the complete data of their various clusters. This data base will be continuously updated so that it will remain relevant for planning purposes.
• Is it true that the current EMF is no longer sufficient to manage the estate sustainably? Who determines what is adequate?
  As already indicated, the EMF was last reviewed in July 2019. Recent economic developments in the country, especially with respect to prices of goods and services, has reduced the purchasing power of our EMF significantly to fund the level or quality of services desired by residents. The call for an upward review of the EMF is therefore necessary and reasonable, especially so now that we have decided to deal with JSA a company (single unit). Besides, the current sinking fund allocation of GHS4.20 per household per month is not sufficient to yield any appreciable funding base to meet the challenges ...
• How will successful implementation of our strategy look like? Will DEVCRAS ever get there?
  The objectives of deploying our bold strategy are: (i)      to be get all residents to pay their EMF through Ecobank within 12 months of launching the campaign (after engaging residents in all the clusters);(ii)     to set up our administrative office with at 2 officers to start with; (iii)     to be acquire a simple but robust software to manage the collection, reconciliation, accounting and reporting of EMF to residents. (iv)     to gradually bring down the level of EMF delinquency to an acceptably low level; (v)     to generate sufficient cash in our sinking fund account and invest same for growth; and (vi)   ...

• Is DEVCRAS trying to manage the estate, and does it have the capacity, time and resources to do that?
  DEVCRAS is a registered/incorporated association of residents and has no intention of managing the estate. DEVCRAS has decided to aggregate/marshal its resources as a single entity and deal with all its stakeholders particularly JSA/Devtraco a company with one voice and superior bargaining power as the single customer of JSA. DEVCRAS intends to engage JSA and demand for a comprehensive agenda/programme both short- and long-term for the management and improvement of the estate. However, as already indicated, the finances will be managed inhouse by the Finance Committee of the GC. DEVCRAS will set up a modest office with dedicated skeletal staff ...
• If DEVCRAS could manage the EMF, why didn’t the previous GCs manage it inhouse?
  DEVCRAS has always had a team of experienced and dedicated GC members. However, the decision to manage our finances inhouse, as opposed giving it to a third party like JSA to manage on our behalf, is a leadership choice based on the net advantages that the Finance Committee believes will accrue to members. Whilst we cannot speak for the previous GCs, we believe we have a strong justification and the capacity to oversee the direction we want to take. Besides, we believe governance is a continuous process. Even though the previous GC did not put up all the infrastructure to ...
• Are these strategies technically feasible and financially workable?
  The Finance Committee believes strongly that the proposed strategies are technically feasible and financially workable. Whilst controlling the purse, the FC intends to form a tripartite committee of JSA, DEVCRAS and all service providers to discuss and agree to a defined billing framework say T+45 (45 days after billing date) to obtain some fiscal space to plan as JSA has been doing over the period except that every transaction will now be put under the spot light and scrutinized to ensure value for money at all times.
• What are the key challenges confronting DEVCRAS?
  DEVCRAS is battling with two (2) key challenges – (i) perennial non-payment of EMF by residents and (ii) lack of accountability, transparency and communication surrounding the collection and disbursement of EMF by JSA. These two factors have resulted in a significant deterioration of the estate.
• Why does DEVCRAS want to burden itself with administrative issues including collection of EMF, payment reconciliation, office set up, employment of skeletal staff, software and so on?
  The Finance Committee believes that there is a fair price to pay for everything; the price for handing over the management of the EMF to JSA/Devtraco is the deterioration we have witnessed in the estate. We believe, it is not too much of a burden to collect and manage our own finances to gain superior bargaining power and deal with the challenges to improve the estate. All we need is a modest office, a simple but robust financial management system to account to ourselves and at least 2 staff to man the office and do the initial foot works as ...
• How is DEVCRAS going to manage the EMF?
  The Finance Committee proposes to use a single account at Ecobank to collect all the EMF to make the administration/monitoring easier. FC intends to strictly follow the agreed distribution formula. JSA will have to submit their budget for discussion and approval and service providers will be paid directly from our Ecobank account including JSA’s monthly service charge for managing the estate. Two separate sub accounts will be opened for the sinking fund and our dues to avoid co-mingling the funds. The overall objective is to invest a greater portion the Sinking Fund for growth against future major projects which will ...
• Accountability and transparency have been lacking in the past for example it has been reported that some previous administration did not and have still not surrendered some funds belong to DEVCRAS nor accounted for them. How different is the management going to be?
  The FC believes that regular and structured communication underscore accountability and transparency. At every ExCo, GC and Annual General Meeting (AGM), the Finance Committee will present the company’s financial statements (comprising the balance sheet, the income and expenditure account and the update on EMF collections as well our forecast for the next 12 months. In this way, all members will be adequately informed about the financial state of DEVCRAS (the company). Besides, the members of the ExCo are professionals working in sensitive organizations and are also bound by the ethics of their professions. They are not prepared dent their integrity!
• Does the Finance Committee have a step-by-step implementation plan with timelines to track progress?
  The Finance Committee has drawn up a comprehensive implementation plan with responsibilities and timelines which was presented on 16th June 2024. The progress made will be reported to the GC at every meeting until we have fully exhausted the action plans and our objective is achieved. The Governance Committee could also be tasked to oversee the implementation and independently report on the progress made.
• How much is DEVCRAS paying to JSA and what is this payment for?
  DEVCRAS pays JSA GHS30.00 (19.96% of EMF) per household per month for service charge -their fee for managing the estate. Once they operate within this budget, they owe no explanation for how they spend their money. However, over the past 5 years, they have overspent their services charge and eaten into our Dues  and Sinking Fund with impunity  (2 years  in  arrears), and this  is  not acceptable. This is one of the reasons why we need to collect the EMF and manage it ourselves.
• Can DEVCRAS manage the estate if JSA decides to exit eventually if they are unhappy with our strategy?
  DEVCRAS is a registered association of residents, and it is not in the business of estate management. However, together, we are the single customer of JSA and as such we are the direct beneficiaries of the services they provide. We have decided that it will be more advantageous for us to consolidate the payment for services being rendered through a single source (Ecobank) and deal with them as a company. This gives us sufficient bargaining power to demand better services at a reasonable cost and the ability to demand accountability from our service providers including JSA. There are several good ...

Didn’t find your answer? Submit your question