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(r) in the 10 august s22 Notice it states (7. The 2014 refurbishment, failure to follow Section 20 consultation procedures, and mHml’s undisclosed charges:
When the service charge accounts for the year to 31 December 2014 (see Item 4) were subse- quently presented to the leaseholders, there were no details at all of the costs paid to AR Lawrence or any other contractors in respect of the refurbishment activity. There was simply a (wholly inade- quate) item called "Reserves utilised" which showed an aggregate figure of £105,877 against the budgeted figure of £105,019.38 for the agreed works. But it was totally unclear from the accounts whether the whole of this sum of £105,877 had been paid to AR Lawrence & Sons Ltd, and (if not) to whom any balance had been paid. (Folder_00 Item_55)
(s)“PBC” Comment: A perusal of our year ended 2014 Accounts indicates £21,105 (Cash at Bank) as opposed to the predicted £11,243. After Creditors (£10,032) which included the £1590 owed to AR Lawrence and Debtors, £16,201 was carried forward in Reserves - indicating that all refer- ences to computations made to date in correspondence regarding “disappeared or misap- propriated” funds (Reserves) appear not to have properly perused the final 2014 year ended accounts dated 30 May 2015 as they do indicate a far better situation than was predicted re: only £11,243 expected in Reserves at end of works - (Folder_00 Item_56_ Accounts)
5_ advice to inspect accounts once published.
(a) In an email from “PBC” to Flat 9 (Fortunati) dated 9 September 2014 he writes:
I really must also insist you refrain from impertinent emails requesting details you are not party to until such time as the annual accounts are published when all details, contractors, sub-contractors, costs, expenses, contingencies spent or saved, additional works required etc etc are available to you to peruse at your leisure-
Until such time please do not send further requests and allow the works to progress to their conclu- sion under the watchful eye of Management. (Folder_00 Item_57)
(b) In an email from “PBC” to all lessees dated 3 January 2015 (two weeks after works completed in December 2014) he advised: Full Works Budget & Costs will be advised to Lessees once the YE2014 Annual Accounts are prepared by latest 15th March 2015.
There are certain other small miscellaneous cosmetic works & improvements which Management will be attending to in 2015 once the weather improves at minimal cost to the service charge account. And of course please advise Management of any bits and bobs you notice as having been overlooked or still need attending to. Our sincere apologies go to Flat 5 for having drilled a hole into their bathroom wall causing damage which is very regrettable and will be repaired at no cost to
Flat 5. The only collateral damage we have been made aware of to date.
In the meantime we await your comments and one hopes grateful thanks for Management’s very successful husbandry of the recent Works and the £105,019 Budget which we are sure you will appreciate has many added value items included for the benefit of all Lessees, both resident and absentee and their tenants. It is totally inconceivable that the recent improvements can have done anything else other than to have substantially improved both the value and marketability of all Lessee properties.
The proof of the pudding will be comments from Sales & Lettings Agents...! And you never know, we might attract back a more typically Chelsea artistic and creative clientele as opposed to just finance & banking. Those Lessees sub-letting will be pleased to know that ALL their tenants are very con- tent, if not very impressed, with the new look with not one single negative comment. In other words, those that live here as home love the new decor. We await comments from those that don’t....! (Folder_00 Item_58)