Page 8 - Kensington Oval Proposal

3.4 Financial management, control and reporting
At Mainstay we use our Quality Assurance systems to ensure that there are detailed processes in place for the delivery of all nancial activities. These processes comply with ICAEW Tech 03/11 Guidance on accounting and reporting in relation to service charge accounts for residential properties, on which variable service charges are paid in accordance with a lease or tenancy agreement.
The following sets out our commitment to delivering nancial control and management excellence:
Reserves Funds and Asset Gathering
Mainstay are of the view that reserve funds should constitute between 20-30% of overall service charge income. We appreciate that there is a balance that needs to be struck between a ordability and necessity, and our asset gathering protocols and subsequent CAPEX strategies will form the basis of our ongoing proposition. A detailed set of proposals will be put to the Directors on appointment, with clear reference to ongoing service charge budget implications.
Trust Accounts
All funds are held in trust in separate interest bearing accounts in accordance with RICS and ARMA - Q requirements and relevant trust legislation. Sinking funds are held separately from day to day funds.
Value for Money
As a priority, we will review all maintenance and utility contracts, and conduct a benchmarking process against our national contract rates for similar schemes. By agreement, we tender any contract through a robust process. In addition, we will review all contracts on an annual ongoing basis, as contracts fall due for renewal. Our approach to CAPEX and Reserve Funds are detailed in 3.5.
This would include two key aspects, notably Insurance and Electricity.
Further to the initial tendering or benchmarking of service contracts, we recognise that on-going contractor management is of critical importance. This is achieved through monitoring of standards and completed works during property manager site inspections and reviewing the ndings with the contractors at periodic reviews. In addition, for responsive maintenance works, we would seek feedback from the residents who brought the recti cation requirement to our attention, to ensure works have been completed in line with their expectation.
Measurement
Our nancial teams are targeted and 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, to protect a scheme’s individual funding.
Scheme expenditure is regularly reviewed against budget. All predicted variances are reported as part of regular update meetings and the causes and remedies are considered and agreed.
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Mainstay Management Proposal: Kensington Oval Management Company Ltd