AML’s costs in performing its obligations under the lease are recoverable from leaseholders by way of the service charge. An independent firm of accountants audits the service charge accounts, which are made up to the end of September, and leaseholders are provided with a copy of those accounts annually.
I have in the past felt that circulation of service charge accounts which are over a year old is unsatisfactory and we should be prompter in getting the accounts completed. Unfortunately this wasn’t possible in the year to Sept 05, as we had great difficulty in getting all the information necessary from the previous managing agents. Their computer system in fact failed completely at one point and we have our auditor to thank for doing a very thorough job.
The directors have discussed the timely production of service charge accounts with the current managing agents and the auditors, and it is intended that the accounts to Sept 06 will be available to circulate within six months of the year end i.e. by end March 07 at the latest.