All client funds are held at a recognised bank and in a designated client trust account, in accordance with the Service Charge Residential Management Code published by the RICS as well as the RICS accounting rules.
The annual service charge budget is prepared in advance of the next financial year and takes into account any planned maintenance work likely to be carried out in the forthcoming year. The forthcoming year’s budget isn’t simply the previous year’s budget with a flat percentage increase applied, but is methodically analysed and drawn up to ensure it is as relevant as possible to forecasted costs.
Service charge arrears are dealt with in a systematic and prompt manner to ensure that necessary costs and works are not compromised by a lack of available service charge funds due to leaseholder arrears. Service charges need to be paid promptly, so that maintenance of the building is not compromised through lack of funds and it is unfair to the majority of leaseholders who faithfully and promptly pay their service charges on the due date.
A firm of independent chartered accountants prepares the statutory accounts on an annual basis, when required.
The accounts may be audited, provided the lease requires and allows for its cost.