Conspiracy Theory or Fact?

I donít normally subscribe to conspiracy theories however given the lengths below which the director and committee are prepared to go to ensure that the receipts and invoices for the Repairs & Renewals  are not inspected every year, it's tempting to go down that route i.e.  

  • they are in Breach of the Lease

  • they have committed an offence under the section 21 & 22 of the Landlord and Tenant Act 1985

For the past 3 years I and another resident have been trying to obtain an analysis of of the expenses shown on the annual Account - namely the Repairs & Renewals Expenses.  Unfortunately there is no analysis because everything paid out under these headings are lumped together and the residents have no idea what their service charge is being spent on and if the expenditure was legitimate or not.  When questioned on why they would not give the details of these expenses at the AGM, residents were informed 'because we don't have to'. 

One possible explanation which could be entertained is that perhaps a number of illegitimate expenses or  'guvvy jobs' had been put through the books without receipts or invoices under the guise of Repairs & Renewals, and if the director and committee allowed the accounts to be inspected, then these anomalies would obviously come to light, this might go a long way to explain why the director and committee will not allow the accounts to be scrutinised. 

It could be argued that the accounts are audited and an external accountant is also employed to look at the account.  The accountant who normally handles the end of year account has been shown to make errors in the accounts - on one occasion in the 2012 Account  £600 went missing and he put it down to a 'typing error', which it could not possibly have been - why was that not picked up at the time?

What the external accountant actually does is provides an 'Accountant's Report to the Landlord on the Service Charge Statement of Accounts' and they clearly state: 

'Basis of Report: item 2 - to check, based on a sample, whether entries in the accounting records were supported by receipts, other documentation or evidence that we inspected'.  

So - if any of us subscribed to conspiracy theories we could have a field day because all the elements are there in the director and committee's actions to fuel speculation, they don't want the residents asking questions and looking too closely at how their Service Charge money is spent!

 

February 17, 2020

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