SILVERDALE COURT. Service Charge Accounts. For the Year Ended 31 March 2012

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1 Service Charge Accounts For the Year Ended 31 March 2012

2 Contents of the Service Charge Accounts Page Service Charge Accounts Information 1 Chartered Accountants' Report 2-3 Service Charge Income and Expenditure Account 4 Service Charge Balance Sheet 5 Notes to the Accounts 6

3 Service Charge Accounts Information PROPERTY: MANAGING AGENT: COMPANY DIRECTORS: COMPANY SECRETARY: COMPANY NUMBER: REGISTERED OFFICE: Silverdale Court Goswell Road London EC1V 7DU Goswell Road Management Ltd E M Micklewright J Wicks E A Hicks De Pena P D Curtis AD Financial Services Limited (England and Wales) Avaland House 110 London Road, Apsley Hemel Hempstead Hertfordshire HP3 9SD 1

4 Chartered Accountants' Report of Factual Findings to the Managing Agent of Silverdale Court This report is made to the managing agent for issue with the service charge accounts in accordance with the terms of our engagement. Our work has been undertaken to enable us to make this report to the managing agent and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the managing agent for our work or for this report. Basis of report Our work was carried out having regard to TECH 03/11 Residential Service Charge Accounts published jointly by the professional accountancy bodies with ARMA and RICS. In summary, the procedures we carried out with respect to the service charge accounts were: 1. We obtained the service charge accounts and checked whether the figures in the accounts were extracted correctly from the accounting records maintained by the managing agent; 2. We checked, based on a sample, whether entries in the accounting records were supported by receipts, other documentation or evidence that we inspected; 3. We checked whether the balance of the service charge monies for this property shown on page 5 of the service charge accounts agreed or reconciled to the bank statements for the accounts in which the funds are held. Because the above procedures do not constitute either an audit or a review made in accordance with the International Standards of Auditing (UK and Ireland) or International Standards on Review Engagements, we do not express any assurance on the service charge accounts other than in making the factual statements set out below. Had we performed additional procedures or had we performed an audit or review of the financial statements in accordance with International Standards of Auditing (UK and Ireland) or International Standards on Review Engagements, other matters might have come to our attention that would have been reported to you. Report of factual findings: a. With respect to item 1 we found the figures in the statement of account to have been extracted correctly from the accounting records. b. With respect to item 2 we found that those entries in the accounting records that we checked were supported by receipts, other documentation or evidence that we inspected. 2

5 Chartered Accountants' Report of Factual Findings to the Managing Agent of Silverdale Court c. With respect to item 3 we found that the balance of service charge monies shown on page 5 of the service charge accounts agrees or reconciles to the bank statements for the accounts in which the funds are held. David Lindon & Co Chartered Accountants & Registered Auditors Avaland House 110 London Road, Apsley Hemel Hempstead Hertfordshire HP3 9SD 15 May

6 Service Charge Income and Expenditure Account Notes Income relating to the period Service charges 68,155 68,901 Rent 6,000 6,135 Insurance recharge 1,628 - Bank interest (net) Other income 63 - Total income receivable 75,860 75,056 Expenditure relating to the period Repairs and maintenance: Cleaning and caretaking 9,600 9,360 Window cleaning (communal areas) 3,000 3,600 Lift repairs and maintenance 8,715 4,865 Pest control Plant & equipment maintenance 1, Drain clearance 2,178 3,153 General repairs 17,781 9,689 Courtyard works Major works CCTV installation 14,681 - Gutters & downpipes 28,790 - Building repainted 14,775 - Rubbish chute door 3,450 - Utilities: Water rates and sewage 8,693 7,137 Electricity (communal areas) 2,880 3,108 Insurance Buildings 4,014 5,612 Terrorism cover 1,032 2,641 Engineering Management liability Administrative costs Printing, postage and stationery Telephone 2,155 1,793 Accountancy fees 1,812 1,940 Bank charges General expenses Depreciation - computer equipment Total expenditure 127,784 56,400 (Deficit)/surplus for year (51,924) 18,656 4

7 Service Charge Balance Sheet at 31 March FIXED ASSETS Computer equipment: -cost 1,871 1,871 -depreciation (618) (309) 1,253 1,562 CURRENT ASSETS Due from Silverdale Court Freehold Limited Prepayments 3,806 - Cash at bank and in hand (note 3) 12,123 51,407 16,304 51,969 CURRENT LIABILITIES Trade creditors invoiced to Goswell Road Management Ltd other trade creditors 9,605 - Service charge income received in advance 6,586 - Accruals and other creditors , NET ASSETS ,665 Represented by: MAINTENANCE RESERVE Balance at 1 April 52,665 34,009 Income and expenditure (deficit)/surplus (51,924) 18,656 TOTAL RESERVES ,665 These service charge accounts were approved by the directors of Goswell Road Management Limited on 15 May 2012 and were signed on the Company's behalf by: E M Micklewright Director 5

8 Notes to the Service Charge Accounts 1. Accounting policies The accounts are prepared on the accruals basis. Depreciation is provided in order to write off computer equipment over its estimated useful life of three years. 2. Bank interest received Service charge monies are held on trust in accordance with Section 42, Landlord and Tenant Act Interest earned on service charge monies held on deposit is taxed at source at the basic rate on income tax. The rate of tax applied to interest received during the year was 20% (2011: 20%). 3. Bank account Service charge money was held in trust at the Natwest Bank Plc under the following accounts: Account type Title Number Current Goswell Road Management Reserve Goswell Road Management

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