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Actually paid to surveyor
Total monies accounted for by MHML:
Total monies still remaining unaccounted for:
10,513.00
56,886.75
-14-
Of this total remaining unaccounted for, you have admitted that £31,765.21 has been paid to “MHML and its sub-contractors", but (despite providing an ostensibly impressive list) you have failed to identify any work carried out by MHML or its sub-contractors that could possibly justify such a substantial pay- ment. The remaining balance of £25,121.54 (£56,886.75 less £31,765.21) simply remains unex- plained. Even if one assumes that £13,147 was properly spent on the new water tank and the communal TV aerial, that still leaves £11,974.54 (£25,121.54 less £13,147) which has simply "disap- peared". (Folder_00 Item_51)
(n) in reply to “mH’s” Solicitor from “PBC” on 29 September 2016 by he states:
As regards the query raised in your recent 23 September letter, any funds that were not required in year ended 2014 period (your reference being £11,974.54) “disappeared” into Reserves. A fact men- tioned on multiple occasions in various emails to Lessees pre and during the Works, outlined in some detail in my 14 June 2016 letter of reply to you, and stated on the covering letter sent to all Lessees with the year ended 2014 Accounts Summary. (Folder_00 Item_52)
(o) in a letter from “mH’s” Solicitor to “PBC” dated 23 September enclosing the 10 august s22 Notice which states (7. The 2014 refurbishment, failure to follow Section 20 consultation pro- 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 "unforeseen works within the AR Lawrence quote ..... and for any out of the blue emergencies, the lift requiring 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 re- mained 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 from above 7 Nov letter:
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:
72,523.00