Page 15 - The White House Apartments

Financial Management, Control and Reporting
Strength in numbers.
Our Quality Accusystems ensure that there are detailed processes in place for the delivery of all financial activities. These processes comply with ICAEW Tech 03/11 Guidance on accounting and reporting in relation to residential property service charge accounts, on which variable service charges are paid in accordance with a lease or tenancy agreement.
The following sets out our commitment to delivering financial control and management excellence:
Reserve Funds and Asset Gathering
It’s our belief that reserve funds should constitute between 20% and 30% of overall service charge income. We appreciate that
a balance must be struck between affordability and necessity, and our asset gathering protocols and subsequent CAPEX strategies will form the basis of our ongoing proposition. Therefore, a detailed set of proposals will be prepared on appointment with clear reference to ongoing service charge budget implications.
Trust Accounts
In accordance with RICS and ARMA-Q requirements and elevant trust legislation, all funds are held in trust in separate interest-bearing accounts. Reserve funds are held separately to day-to-day funds.
Credit Control
Adequate cash flow is of paramount importance to ensure the smooth operation of any scheme. We employ a sophisticated credit control system and have an in-house Debt Recovery team which has a rigorous approach to credit control. As part of an efficient service, they will support the IPM team and collect all unpaid service charges in a timely and conscientious manner in order to maximise cash receipts.
Measurement
Our financial teams are measured on their ability to set, agree and issue service charge demands and approved budgets, at least a month prior to the relevant due date. Scheme expenditure is regularly reviewed against budget, and all predicted variances are reported as part of regular update meetings and the causes and remedies are considered and agreed.
Value for Money
Continuity is vital in a programme of successful contractor management, which is why we monitor the standard of work through regular inspections. We will seek feedback from residents and working with the contractors, review, analyse and identify areas for improvement. All contracts are reviewed against our benchmarking process and our national contract rates for similar schemes. We review all contracts on an annual basis, as they fall due for renewal and tender any contract through a robust process.
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