27/11/19 - Letter to the director and committee delivered to the managing agent.

Attention the Director and Committee,

Request to Inspect Account 2018/19

On the 8/10/19 after the AGM had been held, I sent a list of queries to the managing agent which needed to be addressed relating to the 2018/19 Landlord's Statement Account, it would appear this has been ignored as there has been no response on the matter.   Under normal circumstances a statement on the Account would be made to the residents on the expenditure throughout the year at AGM but unfortunately the contents of the Account itself was not discussed, consequently the queries already mentioned and in your possession were not aired or commented on.

I now officially put in a request to carry out an Inspection of this 2018/19 Account when you are able to arrange it, and hope permission will be given without any objection.

I look forward to hearing from you hopefully with a date when this would be convenient to you.


8/10/19 - The Accounts for 2018/19 / The Landlord's Statement

This had been issued to the residents prior to the recent AGM held on October 1, 2019, and had been scheduled for discussion on the Agenda under item 4, however as the meeting itself only lasted exactly 20 minutes, the matter of the current Accounts itself was never discussed or even mentioned.

There follows some queries regarding items within the Account which it is hoped the managing agent can either answer or clarify - after all HPM Ltd have been looking after the expenditure and handling the day to day accounts during year 2018/19.

1) The Sinking Fund discrepancy of £680 - this has already been queried on the website and is a reminder to the managing agent that hopefully she will be able to inform the residents as to the outcome of her endeavours to recover the missing amount in the very near future, and if not to explain why.

2) Insurance - It is notable that the estate insurance had been reduced by £1036 from the previous year, the managing agent stated at the 2018 AGM that she had managed to obtain a discount from the insurance company understand this could be the result.  The query on this requiring clarification is - unless the 'amount of cover' had been altered and reduced, that would appear to be the only way that the annual premium would be reduced. 

Is the cover on the estate the same as in previous years?

3) Repairs & Maintenance - The General repairs & maintence amount of £8,773 appears exceptionally high in comparison to the previous year, especially as it does not include the items listed as Major works - Additional parking, Fire risk assessment and emergency lighting which has been shown seperately.  Can the managing agent be more specific as to exactly how this figure is made up and what it does include? 

4) Legal & Professional Fees - it would be useful to have a breakdown of the amount £1027, i.e. how much was spent on Legal Fee and how much on Professional Fees and to whom the amounts were paid.

5) Management Fees - It is notable that these have actually been reduced which is more than surprising given that when HPM Ltd took over managing the estate, the managing agent stated that the fees would be exactly the same as the previous managing agent received - would she clarify why the reduction?

Due to the managing agent stating that she does not read the website itself, a copy of this will be forwarded via email to ensure she is fully aware of these queries which will need to be addressed sooner or later, perhaps these could be discussed at the next committee meeting and reported back to the residents in the subsequent minutes.

cc to the managing agent via email.


Something Stinks on the Sycamores


(and this time it's not the drains)

I keep banging on about the Accounts, the Inspection of the Accounts,  the Service Charge, the refusal of the director to allow access etc etc., and for very good reason if visitors to the website have been following the shenanigans of the director and committee with regard to obtaining an analysis of the Repairs & Renewal Expenses for year 2017/18.

In order to reach as many people as possible i.e. residents who don't have internet access, their families who visit them, tradespeople, health care workers, even the bin men,  and anyone else who happens to wander onto the estate, I have created a notice board of sorts in my front window.   The idea behind this is to inform as many people as possible of how the director and committee are handling the Accounts and the resident's Service Charge Funds, or rather mishandling it. 

Due to serious nature of the misgivings regarding their competence, accountability, honesty and integrity which are all questionable, plus the fact that they have already breached the Lease many times and committed an offence under the Landlord & Tenants Act 1985, I have stopped paying my Service Charge.  I encourage other residents to consider doing the same because things won't change unless the residents raise their voices, state their concerns and show their displeasure, after all, it's your money they are spending and you need to know that it is being spent wisely and legitimately, and not on the whim of individuals such as the director or committee members.


Letter to the Director & Committee 13/2/19 'Without Prejudice'


Response to letter of 31/1/19 from the managing agent.

I acknowledge receipt of your hand delivered letter today and note that my request for a meeting to inspect the invoices and receipts for Annual Account 2017/18 has been declined on behalf of the director and committee, I can assure you that this matter is NOT concluded. 

I have attached a copy of clause 3.6 of the Lease Document – please read, digest and ultimately consult with the director and committee that they are required to allow inspection of the invoices and receipts relating to the Service Charge, and by refusal to do so they are actually breaking the law of the land as outlined in the Landlord and Tenant Act 1985 and am surprised that in your line of business you are not aware of it. 

I await your response on behalf of the director and committee.


A reminder to the Managing Agent, the director and committee


Letter delivered by hand today from the Management Company


28/1/19 Further message sent to the managing agent

As there has been no communication from the managing agent on the email below, a further message was sent to her asking what was the outcome of her discussion with the committee, to date there has been no further response from her.

Update to Meeting request

As the accountant Mr. E......... the accountant had choosen not to respond to my request for a meeting to inspect the 2017/18 Account, I forwarded the request to the Managing Agent on 11/1/19 for her attention.  A response was received back on 16/1/19:

"Apologises for my delay in responding to you.  I have just returned from Holiday. I will have to discuss this matter with the committee Members, at my next visit with the said members.  This meeting is scheduled for next week."

Further email sent to the Accountant 7/1/19

Dear Mr. E.........., 

I refer you to my email dated 6th December, 2018 when an appointment was requested to inspect the invoices and receipts for the 2017/18 Account, as it is now exactly 1 month since the request, I wonder if you are now in a position to grant a meeting?


6/12/18 Request for Appointment

Dear Mr. E.........

Annual Account 2017/18

Regarding the above account, I would like to make an appointment for myself and another resident to inspect the invoices and receipts for the account, in particular the Repairs & Maintenance Expenses and the Legal and Professional Fees.       

This is being requested due to the fact that although you had given an undertaking during the last meeting held at your office on 15/2/18 that you would provide an breakdown/analysis of the Repairs & Maintenance Expenses when the account was issued, you did not follow through and provide the breakdown/analysis and can only assume this was was a decision made by the director and committee because when I broached the subject at the recent AGM, the director responded with:  ‘because we don’t have to’.

Thank you in advance and look forward to receiving an appointment date when it is convenient for you.

 Annual Account 2017/18 

A timely request was previously emailed to the current managing agent/accountant with regard to issuing a full breakdown of the of the Repairs & Maintenance Expenses included in the 2017/18 year end account.

Should a breakdown not be made available and attached to the year end account when the AGM is held, a meeting will be requested (as outlined in the Lease Document - relevant clause below) of the Managing Agent/Accountant during the AGM so that the account can be inspected by a number of residents and a breakdown extracted from the Repairs & Maintenance expenses.

It has become even more important that the director and committee are totally transparent and accountable where the finances of the company is concerned, due to the number of anomalies which have shown up and although brought to their attention, have not been properly addressed to date.

  • the unexplained £600 which was unaccounted for  in 2012

  • the monies paid out on the Painting Contract in 2015/16

  • the matter of interest earned on monies in the bank account which was put down to the fact that it was in a 'trust account' and therefore didn't earn interest.

  • poor judgement shown by the director and committee when making decision as to how the residents monies are spent i.e. sending unnecessary threatening solicitors letters when a different approach would have been more productive.

  • the incompetence of the new managing agent/accountant not being on the ball where the legal requirements of Companies House are concerned which has resulted in a penalty charge for late filing of the Confirmation Statement.


12/9/18: Further email sent to the managing agent referring to their previous reply of 3/9/18:

Referring to your email below 3/9/18  - was this matter discussed at the last meeting held on 4/9/18?  I ask as there was no mention of the breakdown in the minutes or a response back from you to confirm any outcome to the query.

Thank you in advance.


3/9/18:  The following reply received to my last email below:

I will discuss this at the next minutes.  With all committee members and back to you in due course.

Many Thanks

3/9/18:  Response sent back to the managing agent:

RE: Year End Account for 2017/18

Many thanks for your response and appreciate the information, however my query has not been addressed  i.e.

"Would you now kindly confirm that a full breakdown of the Repairs & Maintenance Expenses for that year will be provided when the actual account is issued to all residents prior to the AGM."

This is an important matter especially as other residents on the estate have expressed a wish to be able to see a full breakdown of the Repairs & Maintenance Expenses.  I also appreciate that the previous managing agent/accountant is the one responsible for  issuing the 2017/18 account but in your capacity as the new managing agent/accountant, perhaps you could have some influence on not only him but on the director and committee in relation to this matter.

Thank you once again and look forward to hearing from you.

3/9/18:  Reply received to the email below:

RE: Year End Account for 2017/18

In relation to you email.  I am awaiting 2017/18,  Year End Accounts to be returned from the Accountant.  Once in receipt of this.  We will duly submit to the Committee for their approval.  In turn, they will be distributed for all residents to see. 

I cannot give a timescale for the above, but, I can confirm that the accounts are in processing

Many Thanks

Year End Account for 2017/18

31/8/18:  The following email was sent to the Managing Agent today with regard to them providing a breakdown of the Repairs & Maintenance Expenses incurred during that year.

Dear Managing Agent,

I refer you to an email I sent on 20/5/18 which contained a number of queries, and your subsequent response on 30/5/18 when  you confirmed that all documentation relating to the 2017/18 account had been passed over and was in your possession.  Would you now kindly confirm that a full breakdown of the Repairs & Maintenance Expenses for that year will be provided when the actual account is issued to all residents prior to the AGM – date still to be set.

Thanking you in advance.


Year End Account for 2016/17

Update 15/7/18 - to date there has been no response from any of the parties the email had been sent to.

4/7/18 The following email has been sent to the managing agent/accountant, director & committee of the SRA:

With regard to the estate's 2016/17 Year end Accounts,  I am attaching the ‘breakdown’ supplied by the Accountant in 2017 in response to the request for a complete breakdown of the Repairs & Maintenance Expenses. You will notice there is a distinct lack of information and in some cases  no explanation at all.  I am also attaching a  catergorised version so that it can be seen at a glance what has been spent on each category and relevant queries on each item.

I am hoping that you will be able to provide this information given that you do have the data as you have already confirmed that all account information was passed over to you.

You will appreciate that the devil is always in the detail and to ensure not only transparency, but also to inform the residents in a format which is easy to read, where their monies are being spent and that it is being spent properly and wisely.  This is the kind of information which hopefully you will provide in future when it comes to the annual account.

I look forward to hearing back from you and thank you in advance.

The breakdown referred to in the above email can be viewed here.


Year End Account for 2016/17

4/7/18 - an email has been sent to ........Ltd regarding this account - please see here.


Queries regarding the Sycamores Account

30/5/18 - response received from the Managing Agent regarding Account queries:

  1. Yes all documents have been received from the Accountant
  2. Yes the managing agent will be carrying this out
  3. Accounts will be checked off by an independent FSA Registered Accountant


A request was sent to the Managing Agent on 20/5/18 with a number of queries for clarification relating to the Sycamores Accounts, a copy of the request was cc'd to the director and committee for their information.

1)  When the new managing agent took over the management of the Estate, were all the account records and paperwork for the year 2017/18 handed over to your company by the previous managing agent/accountant, or for any previous years?

2)  Can you clarify if you will be producing the actual end of year Account for 2018/19?

3)  Will the end of year account for 2018/19 be audited by an external auditor, or will you be having only a Landlords Statement produced as was the case in previous years by the managing agent/accountant?


Information on the Annual Accounts

Throughout  2017/18 attempts were made to the director, committee and the accountant to obtain a breakdown of the Repairs & Maintence Expenses for the year 2016/17 and were obstructed at every turn - this had been fully documented, click here to view the history of those events.

When the residents had been notified and confirmed that ... Ltd were taking over all of the accounting duties of the Estate, an email was sent to them asking for confirmation that they would provide this breakdown, to date this email has neither been acknowledged or responded to.

As the AGM is only a few months away when the account for 2017/18 will be issued, it is hoped that .... Ltd have taken notice of the request above and a complete breakdown of these expenses will be included in the 2017/18 account.  ..... Ltd did not compile the account for 2017/18, however they have confirmed that all the relevant documentation for that year had been handed over to them on their commencement as managing agent on 1/4/18, therefore the information is available and they are in a position to issue the breakdown. 

The whole point of asking for this information is to ensure there is transparency and accountability with regard to the expenditure of the residents service charge.


Useful Information to be aware of with regard to the SRA Ltd

Annual Account Information - The Law

The .................. Residents Association Ltd is classed as a Micro-entity company – an explanation from companies house as follows:

Micro-entities are very small companies and will be a micro-entity if it has any 2 of the following:

  • a turnover of £632,000 or less

  • £316,000 or less on its balance sheet

  • 10 employees or less

If a company is a micro-entity, it can:

  • prepare simpler accounts that meet statutory minimum requirements

  • send only it's balance sheet with less information to Companies House

Audit exemption statement

You must include the following statement on the balance sheet of your accounts if you’re using an audit exemption.

For the year ending [your company’s year end date], the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.


If shareholders ask for an audit

Even if your company’s usually exempt from an audit, you must get your accounts audited if shareholders who own at least 10% of shares (by number or value) ask you to. This can be an individual shareholder or a group of shareholders.

They must make the request in writing and send it to the company’s registered office address.

The request must arrive at least one month before the end of the financial year that the audit is being asked for.


January 8, 2021

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