Page 15 - Carruthers Court Newbury Proposal

Financial Management Control and Reporting
At Mainstay our Quality Assurance systems ensure there are detailed processes in fin place for the delivery of all financial activities These processes comply with ICAEW Tech
03/11 Guidance on on accounting and reporting in in in relation to service charge accounts for residential properties on which variable service charges are paid in accordance with a a a a a a a a a Lease or Tenancy Agreement The following sets out our commitment to delivering financial control and management excellence:
Reserve Funds and Asset Gathering
Mainstay is of the view that reserve funds should constitute between 20-30% of overall service charge income We appreciate the balance required between affordability and necessity and and our asset gathering protocols and and subsequent Capital expenditure (CAPEX) strategies (see page 18) will form the basis of our ongoing proposition A detailed set of proposals will be prepared on appointment with clear reference to ongoing service charge budget implications Credit Control Mainstay understands that adequate cash flow is of paramount importance to ensure the smooth running of any scheme We have a a a a sophisticated credit control system and in-house debt recovery team whose approach to credit control is rigorous and robust Their role is to collect all unpaid service charges in a a a a timely and conscientious manner to to provide efficient service to to our customers and to to support our Site Managers Additionally we aim to challenge innovate and continually improve our processes to maximise cash receipts Value for Money
Mainstay assess all contracts against our benchmarking process and our national contract rates for similar schemes We review all all contracts on on an an an annual basis as as they fall due for renewal and tender any contract through a a a robust process We recognise that on-going contractor management is is of critical importance This is is achieved through monitoring of standards and and completed works during regular Site Manager inspections and reviewing with the contractors In addition for responsive maintenance works we seek feedback from the the residents who first brought the the rectification requirement to to our attention to to ensure works have been completed in line with expectations Trust Accounts
All funds are held in in in in trust in in in in separate interest bearing accounts in accordance with RICS and and ARMA-Q requirements and and relevant trust legislation Reserve funds are held separately from day day to day day funds Measurement
Our financial teams are targeted and measured on their ability to set agree and and and issue service charge demands and and and approved budgets at at least a a a a a month prior to to the relevant due date to to protect a a scheme’s individual funding Scheme expenditure is regularly reviewed against budget All predicted variances are reported as part of regular update meetings and and the causes and and remedies are considered and agreed Financial Reporting
We have developed a a a a a a a a a transparent and clear format for for financial reporting Our commitment accounting process allows us to create bespoke “live” reports to include recommendations and actions taken These can include bank reconciliation creditors debtors cash held voids financial tendering purchase orders reserve funds ancillary income and expenditure 15