Service Charge Statement of Account
VHMC service charge statement of account for the year ended 31 December 2013 is now available. The statement of account has been approved by the directors of VHMC.
Members attention is drawn to the following notes included on page 16 of the statement of accounts:
- Accounting Policies. The Accounts are prepared in accordance with the provisions of the lease and on the accruals basis.
- Tax provided on bank interest received. Service charge monies are held on trust in accordance with section 42, Landlord and Tenant Act 1987. Interest earned on service charge monies held on deposit is taxable at the basic rate of income tax. The rate of tax applied to interest during the year was 20% (2012: 20%).
- Debtors. Total debtors of £224,711 (2012: £102,940) comprising £149,366 service charges owed; £22,654 pre-payments and £52,691 deficit for period to be collected.
- Bank Account. Service charge money was held at:
- Lloyds TSB Bank in a designated client’s account of Alan Foster & Associates for Victory Hill
- Barclays Bank in the name of GH Property Management Services Ltd
- Newbury BS in the name of C A Davison (note: account not declared in prior year accounts)
- Creditors. £340,972 (2012: £324,871) comprising £19,434 accounts payable; £79,707 accrials; £211,561 reserves relating to MSCP; £30,270 service charge paid in advance.
- Reserve Funds. The general reserve has been maintained to meet the cost of large, non-regular repair and maintenance work.
- Prior Year Adjustment. A prior year adjustment is made of £14,667 additional deficit to be collected from the residents. This adjustment arises from additional liabilities relating to the purchase of key fobs and other costs arising in 2011 and 2012. (note: the board is unable to provide further information relating to the scope of this adjustment due to defective record keeping during this period).
- Water Deficit. The deficit arising from the allocation of water charges in earlier years is shown within the balancing statement as an aditional debtor of £25,461 to be collected from the residents.
- Allocation of Costs. Costs relating to the Estate and the Car Parks are now no longer re-allocated to the Blocks but will carry their own surplus or deficit in the accounting period. This change is made as all residents contribute to the Service Charge for these areas and this method achieves greater transparency of cost relating to these areas.
- Related Party Transactions.
- Within Cash at bank on the Balancing Statement is a balance of £2,642 which is held in the name of C.A. Davison, a director of the Company throughout the year. All of the transactions on this account occurred during 2012 and comprised receipts of £3,142 and expenditure of £500.
- Expenses claimed by C.A. Davison in relation to 2012 totalling £1,426.32 and services paid on behalf of the company in September 2012 totalling £1,777.65 were offset against service charge payments due from Mr Davison.
Provisional statutory accounts for FY2013 are available here: Victory Hill Statutory Accounts 2013