Year End Accounts Statement Page 1: Accountants Report
Current legislation does not state how soon the annual statement of accounts for service charges should be produced and issued to leaseholders after the year-end although there may be a date in the leases or a statement that the information should be produced ‘as soon as practical’.
If there is no such date or statement then ‘best practice’ is for them to be issued 6 months after the year-end.
Page 1 of the accounts will show an Accountants Report for the relevant year-end. For our block it states that an audit will not be required under the terms of our lease and the report is made to our managing agent to be issued with the service charge accounts. No responsibility is accepted or assumed by the accountants to anyone other than the managing agents for their work in the report.
The basis of their report will have been carried out with regard to Technical Release 03/11 Residential Service Charge Accounts. In Summary they obtained the service charge accounts from the managing agent and checked whether the figures were extracted correctly from the accounting records maintained on behalf of the freeholder. They performed a sample check to see whether the entries in the accounting records were supported by receipts, other documentation or other information they inspected. They also checked whether the balance of the service charge monies for the property (and shown on the balance sheet) is included with the total client monies held and agreed or reconciled to the bank statements for the accounts in which the funds are held.
It will go on to state that because the procedures don’t constitute an audit or a review in accordance with the International Standards on Auditing (UK and Ireland) or the International Standards on Review Engagements they do not express any assurance on the service charge accounts.
If they had performed either an audit or a review then other matters may have come to their attention and been reported accordingly.
Page 2 will be that of the Statement of the Income and Expenditure which can be read here.