ACCOUNTS

4/12/19 - SERVICE CHARGE STATEMENT OF ACCOUNTS FOR YEAR 2018/19

Expenditure:  An analysis should have been included for each category marked in red where charges have been lumped together so that the residents can actually see where their money has been spent and on what.

Income:  £680 pounds was missing from the actual receipts received into the Sinking Fund - the managing agent gave a vague explanation how this shortfall came about - details here.   The expenditure below marked in red were queried via email on 8/10/19, unfortunately there has been no response to these queries to date.

Info Only:  During the recent meeting with the managing agent on 27/11/19, it was indicated that next year an analysis would be provided to the residents alongside the account, however as she pointed out, she is only an employee and the director and committee make the decisions.  It should also be noted that the residents were not given an opportunity to question the director and committee regarding the amounts shown in the Income & Expenditure Statement at the recent AGM, this was due to the meeting only lasting 20 minutes.

An explanation of the Audit:  The director and committee have on a number of occasions stated that these accounts are audited - in this case it was the newly appointed Chartered Accountants who carried out the work on the 2018/19 Account.  Unfortunately during the 'audit' all that is checked is that the amounts stated with regard to 'Income' tallies with the Bank Statements, similarly a sample of the expenditure is checked against receipts/invoices.   There is no in depth check carried out to ensure that the Income amounts stated in the account as shown below is actually correct or not, consequently if errors are made in the original amounts included in the account they would not be identified by the auditor.  This is exactly what happened with the £680 discrepancy.  So - the compilation of the account is down to the managing agent in agreement with the director and committee, who handles the day to day recording of all transactions therefore she is responsible for this error!

You can now see the importance of  Inspecting these accounts especially as a number of discrepancies came to light over the past few years which have never been resolved and no one held responsible for them, it is also open to abuse depending on how efficient and trustworthy the people handling the residents funds are.

 

February 17, 2020

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