Service Charges audit?

freedommmm

We have a small block of 8 conversion flats in London, and are paying over £3400 per year without having a lift, a garden, a parking lot etc. The management company accounts get "audited and signed off by independent accountants". However, it is of very questionable value. It seems they only that the record-keeping, not so much that the charges are reasonable, that the works (???) are really getting done, that they are not using family and friends to inflate prices etc.


Can someone please recommend [reasonably priced] qualified specialists to do a proper audit to check for any evidence of fraud and dishonesty?

G_M

You are approaching this wrong. Instead of looking for new auditors, look into Right To Manage.

http://www.lease-advice.org/topics/?topic=right-to-manage

Hoploz

Normally you could expect to receive a statement of accounts once a year, which breaks down what money has gone where.

That is your starting point.

Then you can query particular charges which seem expensive and ask them to be challenged. Or it could be you are paying a lot into a sinking fund each year, perhaps the block may need major works doing in the next few years which they are pooling money for?

You need to get the statement and go through it. Often residents have a meeting at this point to discuss things they aren't happy with, eg if the gardeners a costing a lot and they never even turn up - you can then go to the managing agents and query it. They may not even be aware things are not being done when all they do is pay invoices when they come in.

Mobeer

Definitely look into the costs breakdown. Residents in my block have found allowances for entry phone servicing when that wasn't being done, and huge insurance costs following a valuation error.

Majestic12

You also have a right to inspect service charge invoices.

AnotherJoe

Is the fee £3400 split over 8 flats so you are paying £425 for your flat, or do you own all the flats and are paying £3400 or do you own just one and each is paying £3400 ?
Is there a sinking fund ? And if so, what is that worth and is that in the accounts ?
Are any works envisaged ?