For your information, a
meeting was held yesterday 15/2/18 with our Accountant and
Managing Agent at his office, following requests for details
of our Estate’s Income and Expenses for tax year 2016/17.
Those present at the meeting were myself and another
resident, the Company Accountant, and 2 committee members.
Details of the information
supplied as a 'breakdown' has not been published here at the
request of the accountant.
Further Information from
The Garden Services as
well as Repairs & Maintenance Services are not employed
on a Contract basis.
The Company Bank Account
– it was confirmed that all Estate monies are kept in an
ordinary bank account and not an interest bearing account.
The Accountant said that the Sinking Fund is ‘kept in trust’
for the benefit of the Residents – which may give the
impression to a lay person that the money is deposited in a
‘trust account’ which yields interest, however it was
clarified that all of the Estate’s money is kept in an
ordinary bank account, which is why the Estate receives no
interest on the funds it holds.
Oversight of the Annual
Accounts –It was clarified that there is no external
oversight of the accounts and the only people who are fully
aware of the Estate’s financial dealings are the SRA Ltd
Director, the Committee and the Accountant. As a not for
profit Limited company, the SRA Ltd is not required to
provide full accounts to the tax office (HMRC), and when
Audited at the request of the SRA Ltd, only a sample of the
accounts are checked. It was also confirmed that the
Residents do have the right to call for an external Audit
should they not be satisfied with the financial management
of the estate.
Legal Responsibility –
it was also confirmed by the Company Accountant that in the
event of any irregularities coming to light either through
examination of the annual account by for example HMRC, or an
external Audit requested by the residents (as per the terms
of the Lease), the SRA Ltd Director as well as the Committee
members at the time would be legally responsible.
Thank you for taking the time
to read this letter – it is important for all Residents to
be informed as to where and how their money is being spent
and how the finances are being handled, I hope you not only
find it informative but useful. An undertaking has been
given by Accountant that in future a full breakdown of all
Income and Expenses will be issued to the Residents when the
annual account is published.