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reserves utilised/money spent (per the auditors)
£136,735.00
money paid out by mHml (per PB-C)
To AR Lawrence
To Surveyor
To PB-C and his subcontractors For Water Tank (budgeted)
For Communal TV/Sky (budgeted)
62,010.00 10,513.00
31,765.21 7,810.00*
5,337.00
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cedures, and mHml’s undisclosed charges: According to Mr Brown-Constable in a letter to Mr Begg of 14 June 2016 (see Item 8) the service charge reserves at that time amounted to only £98,262.75 to meet this budget of £105,019. Accordingly he collected in a further £18,000 (£2,000 per flat) to meet the expected shortfall of £6,756.25. The surplus of £11,243.75 was for "unfore- seen works within the AR Lawrence quote ..... and for any out of the blue emergencies, the lift re- quiring repairs (quite usual) and any other repairs etc etc". In other words for contingencies. (Folder_00 Item_52)
(p) in a letter from “mH’s” Solicitor to “PBC” dated 7 November 2016 [and sent to all lessees by mrs Hillgarth] it now states: In your letter to me of 29 September 2016 (responding to mine of 23 September) you said: "£25,121.54 is the cost & installation of the communal TV/Sky and Water Tank with the balance remaining in Reserves (his [Mr Begg] reference £11,974.54 and as stated previously in various 2014 correspondence to lessees as well as correspondence with your Solicitor)".
(“PBC” comment/reply on letter): True - what exactly is erroneous in that statement - anything not spent on the Water Tank and TV/Sky installation, along with anything else not spent anywhere else remained in Reserves.... where else would it remain? At least Reserves weren’t overdrawn by £1904.90 at year end....as they would have been if Mrs Hillgarth’s maths was in charge!
(p) continued:
According to the audited service charge accounts for 2014 and 2015 “reserves utilised" on the major works refurbishment in 2014 (meaning monies actually spent) totalled £136,735 and comprised three elements - £105,877 (the original budget plus a small overspend), £18,000 (the £2,000 per flat you called up to supplement reserves) and £13,147 (the "voluntary" contribution called upon for the communal TV/Sky and Water Tank). However there seems to be a major discrepancy of nearly £19,300 between what your auditors, Pemberton Professionals, say has been spent and what you are currently saying has been spent, which l calculate as follows:
£117,435.21 (£117,435.21) *(per Houseman quote dated 22 September 2014)
discrepancy/expenditure remaining unaccounted for:
£19,299.79
(“PBC” comment/reply on letter): I would reiterate that no expenditure remains unaccounted for as it resides comfortably in Reserves - not in the pockets of MHML or indeed myself! So please no more computations. (Folder_00 Item_53)
(q) in a letter from “mH’s” Solicitor to “PBC” dated 9 december 2016 it now states:
Nor can I reconcile your figure of £10,385 with the figures you have previously given me, which