ICAEW Accreditation Scheme. Client Cash Accounting Software (UK lettings market) Evaluation. CFP Software Ltd. CFPwinMan v4 (4.5.0.

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1 ICAEW Accreditation Scheme Client Cash Accounting Software (UK lettings market) Evaluation CFP Software Ltd CFPwinMan v4 ( ) Evaluation carried out by: Kevin Salter FCA CTA(Fellow) Date completed: October 2014 Signed: K Salter 1

2 Table of Contents 1 Summary Approach to evaluation Matters to consider before purchase Evaluation conclusion Security and continuity of processing Input of transactions File maintenance Processing Performance of requisite accounting functions Service charge for block management Reports Value Added Tax User Documentation Efficiency Integration and www facilities Support and maintenance National Approved Letting Scheme system requirements Appendix A

3 1 Summary 1.1 Introduction The suitability of client cash accounting software for the UK Letting Market for each particular user will always be dependent upon that user's individual requirements. These requirements should therefore always be fully considered before software is acquired. The quality of the software developers or suppliers should also be considered at the onset. 1.2 Fundamentally, good accounting software should: Be capable of supporting the accounting functions for which it was designed. Provide facilities to ensure the completeness, accuracy, confidentiality and continued integrity of these accounting functions. Meet relevant legislative requirements. Have controls in place to ensure client accounts cannot become overdrawn. Be effectively supported and maintained. It is also desirable that good accounting software should: Be easy to learn, understand and operate. Make best practical use of available resources. Accommodate limited changes to reflect specific user requirements. It is essential, when software is implemented, for appropriate support and training to be available. 2 Approach to evaluation 2.1 Objective To evaluate CFPwinMan v4 against a set of criteria developed by the ICAEW to ensure that the software meets the requirements of client cash accounting software for the UK letting market, as laid down in the summary. 2.2 Approach and Work performed In order to effectively evaluate CFPwinMan v4, a product specialist from the CFP Software Ltd completed the detailed questionnaire and provided it to the evaluator to examine. The evaluator then visited the CFP Software Ltd office in Redruth, Cornwall and in conjunction with the operation of the various aspects of the software assisted by a member of CFP Software s technical staff checked the answers to confirm their validity. The questions were individually reviewed and commented on and the majority of assessments were confirmed. The evaluator discussed the assessments with a member of CFP Software Ltd staff in order to clarify certain points. In the event of disagreement between CFP Software Ltd and the evaluator, the evaluator's decision was taken as final and the response changed accordingly. 3

4 CFPwinMan v4, was used throughout the evaluation. The evaluation covered the lettings agency software. In addition, the optional extra module Service Charge Module for Block Management was also examined. When the evaluation had been completed, the responses were completed by the evaluator and a draft copy sent to the ICAEW for review before completion of the final report. 2.3 Software/hardware utilised Dell 64bit laptop 1.8ghz processor running Windows 7 Professional Service Pack 1 -software is version Report structure The report has been broken down into its main constituents in the contents page. The evaluation questionnaire was provided by the ICAEW and has been used without alteration or amendment. 3 Matters to consider before purchase 3.1 General overview CFPwinMan is a complete lettings and property management software solution providing a Client Cash Accounting system. CFPwinMan also manages all daily tasks, reminders and diary appointments, fully automates all letter/contract production, produces high impact brochures, property lists and window cards, matches and mails to applicants (using SMS, MMS and ) and provides all the required reports. There is a core product dealing with all the above and a service charge module is available for those dealing with commercial property management (including maintenance and service charge schedules etc). 3.2 Supplier background With over 25 years experience, CFP Software claim to be the market leader and the largest supplier of Lettings and Property Management Software with over 3000 clients and tens of thousands of users throughout the UK. CFP claim that the lettings and property management software has become the industry standard for lettings and property management businesses up and down the country. 3.3 Product background and Suitability for user The product has been in the market for over 18 years and is claimed to be by far the most widely used property management system in the UK market The company continually monitors legislation and implements changes when they become necessary. NALS, RICS and ARLA have relationships with the agencies and they review the agencies practices directly including their use of software. 4

5 3.4 Typical implementation The software is implemented in agents large and small. It is a scalable solution and their clients range from individual users on single computers through to nationwide companies with 150+ branches. 3.5 Vertical applications Lettings, Property Management, Block Management, Commercial Management. 3.6 Software and hardware specifications Development environment A combination of technologies developed in-house or by third parties in a combination of VB6 / VB.Net / C#.Net / SQL Stored procedures Server platforms File services must be provided via SMB as offered native to any version of Microsoft Windows since Windows XP, and SQL Server 2005 (minimum required but also runs on 2008 and 2012) hosted on any supported operating system Databases SQL Server 2005 (minimum) for the sdb product, Microsoft Access.MDB file for any of the adb variant products Operating software CFPwinMan will install and run on any version of Microsoft Windows since XP Protocols SMB for file transfer (using the operating system s in-built file sharing facilities) / FTP for certain aspects of file upload /SFTP/ TCP/IP for SQL Server and communication with hosted facilities such as the link to LettingsPortal via CFPServices Minimum client PC specification See Appendix A Support and maintenance CFPwinMan customers are able to get support from a large telephone helpdesk team. CFP state the team consists of experts available from 09:00 5

6 to 17:30 Monday to Friday* skilled in every aspect of the software with significant prior experience across all areas of the software and hardware industry. (*Excluding Bank Holidays). 3.7 Software installation and support CFPwinMan is installed remotely by their dedicated team of trained Installation Technicians. The installations team provide a dedicated support service during this time. 3.8 Partner network and related accreditation process ICAEW accreditation since 2008 ensuring the accounting functions meet the standards set by this world leader of the accountancy and finance profession. Microsoft Partner accredited since CFP Software have access to all of the current and latest development resources, as well as access to future and forthcoming technologies. National Approved Letting Scheme (NALS) accredited since 2011 ensuring compliance with best practice within the industry. Safe Agent official supporter, recognising the shared objective of commitment to professional service 3.9 Highlighted issues CFPwinMan is specifically a client cash accounting system developed specifically to manage client funds held by agents on behalf of landlords and tenants. This package should not be confused with other more traditional types of accounting software. Attention should be drawn to the following limitations of CFPwinMan v4 as per the ICAEW questionnaire:- Passwords are not encrypted and can be seen and changed by a super user (but this is common to any software in that someone has to control the passwords). There is no facility to specify a minimum password age or to enforce password changes after a set period of time (manual systems could be implemented). Whilst this is a full double entry system it is designed specifically for the niche market of lettings and property management and is not currently suitable for general office accounting. The software is not multicurrency but can be used in other currencies. No system log of error messages or external security violations. No audit trails of changes to tables but there is limited data in these static fields in this vertical market software in any event. 6

7 The end user cannot produce output in XML format directly (XML is used by CFP to publish data to a letting portal). There is no report generator but the company consider that all required reports are already supplied and custom reports can be produced on request. There is a report generator for information reports. A wide range of account reports are available and other account reports can be supplied on request should the need arise. Updated invoices can be reprinted from the history log but are not clearly marked as duplicates. A Preview watermark is present on invoices that have not been updated. 4 Evaluation conclusion There were no areas in the evaluation that gave concern given the highly specific target marketplace for the product. CFPwinMan version is well designed, adequately fulfils the needs for end users in this type of business and is sufficiently specified. Disclaimer Any organisation considering the purchase of CFPwinMan v4 should consider their requirements in the light of proposals from CFP Software Ltd or its dealers and potential suppliers of other similarly specified products. Whilst the contents of this document are presented in good faith, ICAEW cannot accept liability for actions taken as a result of comments made herein. 7

8 5 Security and continuity of processing 5.1 What security features are included to control access to the application? 5.2 Can access to application functions be managed so users can only see (in menus and other links) and access those functions they are authorised to access? 5.3 Is this access to the application managed by: Individual user profiles? User groups based on their job roles? 5.4 If menus can be tailored would this override the application access control? 5.5 Passwords Is access to the software controlled by password? Please state the basis of control available (e.g., role based etc) If there is no password facility please state how confidentiality and accessibility control can be maintained within the software? Are single user systems access controlled by password? User login name and password plus workstation has to contain a licence Specific sections of the program can be locked so that only authorised users can have read only access or read/write access Both, profiles can be set either individually or by role Menus cannot be tailored Individual or Role both options are available 16

9 5.5.5 Does the software allow for each user to have separate log on (user ids)? If No: How does the software track user activity? Is each user required to have a personal password? Are passwords one-way encrypted? [i.e. Is it impossible for anyone to see other user s passwords in the software?] Are passwords masked when entered by any user logging in? Is password complexity available at application level? If : Please specify [e.g. Number of digits, requirement for special characters, numeric, upper/lower case etc.] Is there a facility to enforce password changes after a chosen period of time? Is there a facility to specify a minimum age for passwords (e.g. 1 day)? How many previous passwords are retained by the system to limit users No, if you have access to passwords then you can see and change other users passwords usually only a super user (administrator) would have this access (which is common to most software) Passwords controlled by the superuser who can set it to be as complex or as simple as they like No No None 17

10 recycling passwords (e.g. 24 or 32)? 5.6 Please state how security allows for access to be specified separately for : Read? Security allows for Read only Read and write? Read/Write access is default setting. Read/Write includes delete/amend if available but delete cannot be applied to an accounting entry once an account exists Delete and amend? See above read and write also allows deletion where applicable 5.7 Are any data files, such as budgets or price updates, imported by users validated by the application software before main data files are updated? 5.8 Does the software require higher or specific levels of user access for changes to sensitive data, such as customer credit limits? Access is defined on setup of an individual and access rights determined at that stage 5.9 Please specify the specific security procedures (by passwords or warnings) over the: Update of ledgers Closing of accounting client accounting cash book not an annual accounting periods software Deletion of transactions Items cannot be deleted, if they are wrong they are reversed recorded in audit trail Archiving of transactions Is it impossible to delete a transaction? If No:- a reversing transaction is recorded 18

11 How are deletions controlled by the system? 5.11 Are deleted transactions retained in the audit trail and denoted as such? 5.12 Can a report be produced detailing all current users, via user groups, if relevant, and their authority levels and/or access rights? 5.13 If data can be accessed by separate reporting facilities, such as ODBC or separate report writer, is the user access security control applied? If No: Please explain any other protection in place to prevent unauthorised access to data with such facilities Is the level of security (described with this section) appropriate for the expected size of business using the software? 5.16 Is there a clear indication in the software or manuals as to how the data is: Backed-up? Recovered? Cannot delete transactions another entry is required to correct the original available to superuser only Reports are only available within the system and need security access. Custom reports can have security set at report level. These custom reports are generally a revision to an existing layout. Off site backup covered as part of training - auto backup on exit of software and this backup is to the server. Recovery would be assisted by support if needed. Helpsheets are provided. 19

12 5.17 Back ups How are back ups provided: Within the software application? Within the operating software? Are backup procedures automatic? Is the user forced or prompted to back-up at certain intervals? Can the intervals be customised? A scheduled backup is configured as part of the installation for SQL version. Access version last one to log out is prompted to run a backup. Instructions are given on external backups see 5.16 within the software Prompted in Access version automatic in SQL version. in SQL on logout in Access version Recovery Please state how the software facilitates recovery procedures in the event of software failure? (E.g. roll back to the last completed transaction) If software failure occurs part way through a batch or transaction, will the operator have to re-input the batch or only the transaction being input at the time of the failure? Regular saves are prompted plus software is written with transactional Roll Back embedded. (Microsoft functionality). Differs in the software but likely to be the whole batch, if this happened and user went back to process they would be able to see what had/hadn t updated successfully so they could reinput anything necessary Are these automated? Do the recovery procedures work? 5.19 What features are available within the software to help track down processing problems? Accounts and audit trails available. Reconcile balance reports available Are software messages clear? 20

13 5.21 Are user responses properly structured to ensure that erroneous key strikes do not lead to inappropriate actions?, e.g. date validations etc 5.22 I s there a software log which details: Error messages? No in access, in SQL standard Microsoft reporting Security violations? No 5.23 Audit trail Does the software have a detailed audit trail? Is it impossible to turn off or delete the audit trail? Does the software allocate a system generated sequential unique reference number to each transaction? Is this stamped with a user id? Is this unique reference number presented to the user at time of input? Is this unique reference number available to view, by the end user and by way of a report? separate audit trails for cash and non-cash (invoices) transactions cannot be turned off in the background not visible to end user every transaction has a user id and this is visible to the end user in any accounting report The system generated number is not visible, however items such as invoices also have a unique invoice number, these are presented to the user. If a user needed a report of the system generated number a custom report could be created (as long as under support contract it is likely that no charge would be made for this specific report). The system generated number is not available to the user, but, items such as invoice numbers are. 21

14 Is the transaction date and time stamped? Are all master file changes recorded in the audit trail? If : Does each change have a system generated reference allocated? Are the originator and authoriser identified? Is the change date and time stamped? Are all standing data changes recorded in the audit trail? If : Does each change have a system generated reference allocated? Are the originator and authoriser identified? Is the change date and time stamped? - both recorded in the underlying table both are visible in a history log. No e.g. change of address for a property owner not recorded but history logs and files would have original data. This could be put in place in SQL version on request (probably no charge if under support). Everything is recorded in the accounting functions. date viewable on screen time recorded in history log Financial yes, information no in backend not generally visible to end user Is all input data included two separate audit trails as 22

15 within the audit trail, including amendments, deletions, journals etc.? Does the software allocate a system generated unique reference number to each amendment, deletions journal? Is this stamped with a user id? Is this unique reference number presented to the user at time of input? Is the transaction date and time stamped? How is it linked to the original transaction? Are imported /interfaced transactions detailed in the audit trail? Is each stamped with a user id? Is this unique reference number presented to the user at time of input? Is the transaction mentioned above in underlying tables for invoice numbers, not for the underlying table. Could be produced if requested (if under support likely that no charge would be made) Automatically via table linking -only import is a standing order generated reference number but not generally visible to the end user where applicable in financial transactions e.g. when entering an invoice the number to be allocated will be displayed on screen 23

16 date and time stamped? How are transactions differentiated within the audit trail? 5.24 What are the procedures for handling dates? (E.g. 2 digit years, 4 digit years) In the case of two digits what is the break point for the century? Are dates handled consistently throughout the software? The only import feature is standing order receipts which is a bank provided file. There is a batch number which is a nonuser editable field. 4 digit years 24

17 6 Input of transactions The following sections in Input of transactions, File maintenance, Processing and Reports are primarily aimed at the three main accounting ledgers and where applicable Sales Order Processing, Sales Invoicing, Purchase Order Processing and Stock Control. 6.1 Is data input controlled by selfexplanatory menu options? 6.2 Are these menus applicationspecific? 6.3 Does the software provide input validation checks such as account code validation, reasonableness (limits, VAT or discount checking) and validity checks (VAT check-digit calculations)? 6.4 Can the user amend data on an input screen prior to update? choice of tabs or icons e.g. date, address format, VAT checking of amount etc. Date defaults to today s date when entering invoices for example. 6.5 What control features are within the software to ensure completeness and accuracy of data input? 6.6 Are all input transactions subject to this control? 6.7 How does the software ensure uniqueness of the input transactions? (i.e. to avoid duplicate transactions) Messages issued and update not possible unless transaction valid. On batches totals must equal individual entries. database generated unique ID s are allocated to transactions warnings are generated if inputting duplicate numbers e.g. invoices with a number already used. 25

18 6.8 Does the software allow for batch control totals? If : Are batches automatically numbered? Are batches forced to balance before ledger update? Does the software allow the temporary halting of input of a batch to allow for queries or other activities to take priority (e.g. set up a new account) Is the user forced to confirm batch totals? 6.9 Is attempted posting of unbalanced journals rejected? (G/L) Are input errors highlighted? If are they: Rejected and reported on screen? Rejected and error reports generated? and posted to suspense? in certain areas e.g. Fast Track Receipts for fast track receipts various drilldown facilities are available whilst in fast track receipts fast track receipts No general ledger error displays on screen No has to balance before batch accepted for posting 6.11 Does the software have an automatic facility to correct/reverse/delete transactions? If : Are all the double entry transactions documented in the audit trail? 6.12 What are the controls to ensure the internal integrity of the Reconcile balances report can be run at any time. Also bank 26

19 ledger(s) or the accounting information, e.g., control of accounts Is it possible to allocate input values directly to ledger control accounts? If : Please note the mechanisms available to allow the user to establish why the total balances on individual accounts do not agree to a respective control account? 6.14 Can automatic accruals or prepayments be generated? If : Will these automatically be reversed after the period end? (G/L) 6.15 Does the software have a purchase invoice register? reconciliation reports. No No ledgers as such Reconcile balances allows for this as client cash accounting 6.16 Does the software permit multi debit/credit journals? client cash accounting 6.17 Can journals be saved as template with GL codes and cost centres and either with or without monetary amounts? client cash accounting 6.18 Can journals be set up to distribute amounts in a fixed percentage against GL/Cost centre codes? 6.19 How are transactions client cash accounting 27

20 identified on screen/reports as to: Type? Debit or credit? compcode - letters indicate the type of transaction separate columns 6.20 Can separate nominal analysis codes be input for each invoice line? If : Does this cover: Sales ledger? Purchase ledger? income based on predefined headings tailored to the circumstances. Expenses are user definable. no ledgers Stock? 6.21 Can receipts and payments be, they must be matched matched to specific invoices? If :- Automatic if amounts match but Automatic? user can override Manual? Both? 6.22 Will the software permit part payments? if paying landlord. In development and should be available within 3 months 6.23 Will the software allow: Payments to be made to customers? Receipts to be received from suppliers? 6.24 Does the software handle purchase credit notes? Is there an ability to automatically amend stock, if applicable? 6.25 Can the software generate sales credit notes? no purchase ledger no stock Not a sales ledger as such but a credit can be entered 28

21 If yes: Is there an ability to match to a sales invoice? Is there an ability to automatically amend stock, if applicable? 6.26 Does the software handle discounts and promotions? 6.27 Does the software provide for early settlement discounts? Can early settlement discounts be automatically generated? Are there controls over accepting settlement discounts (e.g. time limits)? Is VAT treated correctly on early settlement discounts? 6.28 Will the software permit the posting of unallocated cash to the ledgers? has to be matched against a sales invoice No - Does this apply to: Sales ledger? No Ledgers as such but unallocated cash received can be posted to an Unallocated Money account. Cannot post a payment without an invoice being entered Purchase ledger? 6.29 Are unallocated cash/credit notes specifically reported for follow up? displayed on screen and specific report available 29

22 6.30 Are outstanding transactions displayed for allocation? If :- Does this apply to: Sales ledger? in receipts, not applicable to expenses as cannot post unallocated payments Purchase ledger? 6.31 Does the system allow the user to post or allocate a payment or receipt with a date prior to the invoice transaction date? If : Is the user warned that the aged balance values may not agree to the trial balance values?, but, all transactions will always appear in chronological order in the accounts (uneditable) and, in addition, the history log will record the actual dates of receipt and payment. no trial balance purely cash book entries 6.32 Is it possible for new accounts New Landlords/tenants/tenancies to be created during input? etc can be created at any time If :- Does this cover: Sales? Purchases? General? Stock? 6.33 What controls are there over the creation of new accounts? Is the originator and/or authoriser identification logged by the software? 6.34 Is the user prevented or warned from overriding credit limits or discounts? (S/L). User Security whilst a user could create a new landlord for instance, permissions could be set to prevent any financial postings to that account. in history log but warnings are given where payments due exceed monies available 30

23 6.35 Does the software have a bank reconciliation facility? 6.36 Does the software enable transactions to be posted to the ledgers whilst performing a bank reconciliation (e.g. standing charges, bank charges etc)? 6.37 Are these adequately reported? 6.38 Does the software accept input files from other computer packages? If : What formats are accepted? What controls are in place over the interface? 6.39 Does the software have a facility for calculating interest on late payments?. We support a template driven standing order import file with new templates being generated as per the customer s preferred banking system requirements. All the major banks are supported. List available on request. Additionally, we support import of AUDDIS Bank Returned DDI XML instruction files to create new D/D instructions. File has to match requested sum and tenant code. There are integrity tests applied.. There is a separately chargeable service charges module required for this. (Guide price 1,400 + support). Additional bank accounts may also be needed at a further additional cost. This can charge simple or compound interest on rent, 31

24 ground rent, sundries, fees, deposit held or service charge items. 32

25 7 File maintenance 7.1 Are ledgers:- Open Item Open item? Balance forward? No ledgers but expenses and Does the above cover: Sales ledger? income are open item Purchase ledger? General ledger? 7.2 Is a month end routine required to be undertaken? 7.3 Is the creation or amendment of standing data (e.g. customer account details) controlled by menu options? No month or annual closedowns required. 7.4 Are menus:- Application specific Application specific? User specific? either greyed out or function not available when making selection 7.5 Is it impossible to delete accounts if the balance if Nil but transactions have been recorded against the code. Does this apply to: General Ledger? Sales Ledger? Purchase Ledger? Stock? Archive available for properties, landlords and tenants. Transactions still held but not displayed unless specifically requested. Cannot delete anything. 7.6 Are there any other constraints over the deletion of accounts? Once accounts exist records can not be deleted 33

26 7.7 What is the size and format of reference numbers and descriptions within: General Ledger? but tenant codes 8 alphanumeric, expenses text 50 characters Sales Ledger? Purchase Ledger? Stock? 7.8 Is the scope of the reference number adequate to permit sufficient depth of analysis? 7.9 How does the software guard against/warn about, duplicate account numbers on set up? 7.10 How does the software enable the traceability - from, to and through the accounting records - of any source document or interfaced transaction? 7.11 What drill down/around functionality is available within the software? 7.12 Can reports be invoked which identify all the fields which have been modified? 7.13 If the software uses a lot of standing information which changes frequently or regularly, does the software allow for such changes to be effected through the use of parameters or tables? Duplicates not allowed on tenants, properties, landlords, contractors, bank etc. Various search facilities e.g. code, name, All screens allow drill down and multi screens to be opened Certain field changes are recorded. All accounts are set once entered, they need to be reversed to remove so fully traceable. Can be invoked in SQL if ever required but would make system very slow. Tables are used where appropriate but there is very little standing information 34

27 If : Is the use of such parameters or tables adequately reported? 7.14 What controls are within the software over changes to parameters and tables e.g. reporting, password etc? Some are recorded in history log.superuser only can change passwords Does the software allow selective archiving of old data on a user-defined basis? 7.16 What controls are in place over the handling of archived data? 7.17 Can archived data be used for reporting purposes? 7.18 Does the software allow for the restoration of archived data for audit without affecting current accounting data? for zero balance records. Users can search and view archived records in line with security set for that user. All data still available just stops it appearing on reports (unless a balance exists). can be included in reports if required. 35

28 8 Processing 8.1 Does the software ensure that menu options or programs are executed in the correct sequence (e.g. ensure outstanding transactions are processed before month end procedures run)? 8.2 After an external document (e.g. sales invoice or cheque payment) has been generated and posted to the accounts is it impossible to amend this data? 8.3 Is there an audit trail of all changes to transactions which have updated the ledgers? 8.4 Can the software calculate prices or values by reference to master file data? 8.5 Does the software provide automatic recalculation, where appropriate, of data input? (e.g. VAT) 8.6 Does the software warn the user when the ledger is out of balance? 8.7 How is this done e.g. when the software is switching on or on ledger update? The Organiser an internal action planner - prompts where necessary. In making payments to contractors etc invoices need to be entered before the payment can be entered. Only by a reversing entry so full audit available It can calculate VAT and commission fees but should never happen. Database corruption is only circumstance. The Report reconcile balances will have a tick on the screen to indicate all is fine a cross if there is an issue. Users are trained to check this report on a daily basis. 36

29 9 Performance of requisite accounting functions 9.1 What control features are provided by the software to support effective user controls? 9.2 Is there: Transaction sequencing? Automatic dating of posting transactions? Identification of user id or source of document? 9.3 Is the software available as multi user? 9.4 Can the same function be used by more than one person at the same time, whilst still retaining the separate user identities? 9.5 Is the software available as multi-company? If : How many companies are supported? 9.6 Is a group consolidation facility available? 9.7 Can the software consolidate entities with different charts of accounts? 9.8 How many levels of nominal analysis can be handled by the software? 9.9 How does the software handle cost centres, departments, Password logins and the forcing of balanced postings Offers current date with ability to override displayed date compcode generated identifies source and user ID is also shown for individual transactions, where batches are involved records are locked for the first user to access e.g. paying landlords. if required multi-branch is standard Unlimited If each company is set up as a branch for this type of vertical market software Branches are available as are fee earner reports (treated as cost 37

30 divisions? 9.10 How are periods handled by the software? centres) no accounting periods as such 9.11 How many: Accounting periods can be set up? Years can be set up? 9.12 Can the length/ number of periods be adjusted to suit different customer requirements? 9.13 How many accounting periods can be open at any one time? 9.14 How many years can be open at any one time? 9.15 Can a period or year be reopened after it has been closed? If : What controls are in place over this function? If No: Is the data archived on the server? Is this accessible for reporting purposes? Can a previous year be restored from backup? 9.16 Can data from all accounting periods and years be accessed at any one time? Reports can be produced between any two dates at any time All data available to report between any dates 9.17 Can previous months and years be accessed for enquiries or reports? All data available to report between any dates 38

31 9.18 Does the software handle posting date as well as document date? If : Are transactions analysed by posting date or document date? 9.19 Can transactions be posted to more than one accounting period at any point in time? 9.20 Does this cover: General ledger? Sales ledger? Purchase ledger? Only displays document date posting date held in underlying database 9.21 Is it possible to allocate transactions to: Future periods? Previous closed periods? A previously closed year? If : What controls are in place e.g. level of authorisation and on screen warnings? Will the software revise subsequent periods accordingly? No periods as such 9.22 How will transactions outside the current period be: Reported Accounted for in the VAT return? 39

32 9.23 Does the software permit use of budgets and provide comparisons between budgets and actuals? If : How many versions of budgets/forecasts can be maintained on the system? 9.24 Are budgets available for: General ledger? Sales ledger? Purchase ledger? Overheads? Balance sheet? 9.25 Can budgets be set by: Period? Annually? 9.26 Can the software automatically generate budgets? Please state how this is achieved What is the maximum value of transactions and of totals that can be handled by the software? 9.28 What is the maximum number of transactions that can be handled by the software? No maximum Limited by database size only 9.29 What is the maximum number of accounts on each ledger: Sales ledger? Limited only by the database itself never likely to be an issue Purchase ledger? General ledger? 40

33 10 Service charge for block management 10.1 Does the system warn the user if a transaction could render the client account to become overdrawn? 10.2 How does the system handle Non Resident Landlord tax deductions in relation to: The landlord s account? Payments to HMRC? How does the system ensure that tax deductions relating to non resident landlords are in accordance with current guidelines? In line with HMRC regulations quarterly reporting, depends on landlord having exemption, whether landlord is VAT registered, whether expenses are tax deductible etc. Receipt and payment dates also taken into account. Payments are due once per quarter and a report is produced. An annual report which is a form substitute is also produced. There are user definable expense codes which can be tagged as either deductible or nondeductible. 41

34 10.3 How does the system handle tax exemptions Can the tax exemption certificate be linked to the landlord s account? tax is deducted if the overseas tax rate is set but a FICO* reference can be entered so that no tax is deducted. *FICO used to be the name of the tax office that is now CNR (Centre for Non Residency) but some items still use the term - Financial Intermediaries and Claims Office. A link can be set to the actual document How are payments to HMRC handled by the system? At the end of a quarter a report is run of sums payable and this indicates also if funds need to be transferred to meet the payment How does the system handle refunds due to a landlord from HMRC? Net amounts due are automatically calculated and the net reported to be paid to HMRC. It will automatically check the entitlement to a refund based on the tax paid in that tax year and will not allow a greater amount to be repaid. Where e.g. a tax exemption certificate is processed in a tax year a refund can be obtained up to the amount of tax already deducted. If there is nothing net due to HMRC i.e. a repayment, HMRC will send a cheque which can then be processed in the normal way. 42

35 10.6 Are all transactions including refunds and deposits shown on the landlord s statement? All transactions appear on a statement of account internally in the software however currently the only circumstance where a transaction does not appear on a landlord s statement is where a refund of overseas tax is made. It cannot be hidden as it appears in other reports Does the system provide a list of property expenses? 10.8 Can the user add to this list? 10.9 Can the system differentiate between tax deductible and non tax deductible expenses? Can these be user defined? Can the system handle multiple landlords for one property? Can the percentage split (of income and expenditure) be user defined? Can one off expenditure be allocated to a specific landlord? - via landlord screen as opposed to property screen only applies to fees. Expenses have to be entered at a property level. 43

36 10.14 Can the system produce consolidated statements by landlord? A summary statement is available (total rent, expenses by category and total fees) Can the system produce letting agents (section 19) reports? option to include overseas landlords (as some HMRC offices think they should be included) and option to create a csv file Can the software handle service charges i.e. Charges directly to tenants for shared services? Is there any limit to the number of units in a block to which service charges may be raised? No Can the charge periods for expenses be defined? weekly, monthly, 4 weekly, 3 or 6 monthly, annual etc Can user defined expenses be added to the list of expenses of service charges? Can service charges expenses be treated as composite? Is there a RICS translation table for expenses under the service charges? Is there a schedule of contributions report to show invoices to be raised to tenants? 44

37 10.23 Do the reports generated comply with the recommendations in the Commonhold and Leasehold Reform Act 2002? Does the system permit under/over apportionments of 100% of the services charges? for properties defined as commercial No for properties defined as residential In accordance with the Act Is it possible when creating a new period to: Copy the prior period? Apply a % increase? Are year end balancing statements laid out as per the s 21(5) of the Landlord and Tenant Act 1985? Are Summary of Obligations and Rights statements produced as required under: s153 relating to service charges s158 relating to administration charges s166 relating to ground rents all comply with the style and format as set out in the legislation 45

38 11 Reports 11.1 Are all reports adequately titled and dated? (E.g. report name, client name, data, period, batch, last entry number, period end, pages, numbers etc.) 11.2 Do the reports provide totals where applicable? 11.3 Are these totals calculated or taken from a control file? Please state the reports that do not feature calculated totals Is it clear when the report has ended? (totals or end markers) 11.5 Can reports be saved in electronic format (as distinct from just printing)? Are such files adequately protected from deletion or amendment? 11.6 Is a report writer provided as part of the software or as an addon? Please state the name of any third party package What level of knowledge is required to use the report writer e.g. beginner, regular user, expert? 11.8 Can the report writer make use of user-defined fields (including external fields)? as required Calculated. Options for csv,pdf, rtf Users can amend/delete-this is how they were designed. PDFs cannot generally be amended. Part of the software (see 5.13 above) Regular user but not external 46

39 11.9 Does the report writer enable: Separate access to each system area? Reports to be prepared which combines related data from a number of system areas (e.g. Customers Sales Stock items) in the same report? Can users define the parameters, columns, fields and selection criteria used on reports reported? Are standard reports always produced, even when they are nil returns? Is there an option for reports to exclude nil balances, this year or where there are nil balances this year and last year, to enable a comparative report to be produced with the completeness of both years being maintained? Can screen layouts, reports and transaction formats be easily adapted to users requirements? Can a hard copy be produced of all screen enquiries? Can transaction files for all previous periods of the year be retained in the software to permit enquiries and reports? e.g. relational reports such as properties belonging to a landlord, tenant s arrears details etc. except for accounts reports comprehensive reports are provided Comparison reports Nil balances are usually excluded but some reports have option to include them., each user can define and store layouts - all transactions always available Are reports of all changes to Available if required 47

40 standing data on customers, suppliers, tax rates etc automatically generated or stored for later printing? If : Is the report able to capture the nature of the change, user id and data and time of the change? Are all transactions on all reports individually identifiable? Do the reports show whether items are debit or credit? Do reports give sufficient narrative and coding to enable cross referencing? Is it possible to drill down from reports to the ledgers and original transactions? Can the software produce all requisite reports: Day books a report Reconcile Balances in a trial balance format with Debits and Credits can be produced Trial balance Profit and loss account Balance sheet Aged debtors Equivalent report is Rent arrears which can be produced Aged creditors Aged stock Aged unallocated cash See (debtors) Aged unallocated cash (creditors) Budgets 48

41 Cash flow statement VAT reports VAT form EC Sales Listings Intrastat returns (SSD) Are the above reports standard within the software or do they have to be written? Is the age criteria fixed or user definable? Can the aged analysis and day book reports be in summary and detail? Do standard reporting options give sufficient flexibility to tailor individual reports? Standard report by date Can all reports be reproduced after the period end but at the month end date: Transaction listings? Reports can be run at any time for any period Day books? Trial balance? Is it possible to print out retrospective month end aged sales and purchase ledger reports that agree back to the month end trial balance control account figures as at the month end? Purchase ledger For debts there is a report that shows arrears for any specified date range, an organiser that displays all outstanding debts with a column to indicate age and an automated arrears letter feature which allows the user to send arrears letters based on age of debt 49

42 11.28 Do the standard budget reports provide sufficient analysis of variances? Do such reports provide exception reporting, percentage analysis and comparatives? Do standard reports show sufficient analysis of trading results? (E.g. sales analysis by region)? Are all movements during each accounting period shown on sales, purchase, general, stock ledger detail reports? Do the sales and purchase ledger reports show how all partial payments or allocations (unallocated cash) have been treated? Is there a general ledger report that shows balances brought forward and carried forward plus all posted transactions in the period? Is a trial balance available? Is this in summary or detailed format? but there are reports available showing unallocated cash receipts Can the management accounts, profit and loss account and balance sheet be sufficiently analysed by: Project/job Fee income can be reported by 3 criteria - fee earners, department, branch and by fee type across any date range Cost centres See Department See

43 Division See Company See Group (if applicable) See Can the above be user defined by Period and/or range? Any date range What controls are there in place so that the user is aware of partly processed transactions: Unposted invoices The Organiser internal to do list has reports of e.g. invoices to post, rents to calculate, arrears due, landlords with money due etc Uninvoiced dispatches Payments Receipts As State the controls that are in place to ensure that the correct price/discount has been applied to invoices/credit notes? (e.g. Gross Margin reports) Detail all automatically generated documents for external use. (E.g. sales invoices and statements, remittance advices.) Can the software reproduce source documents? [E.g. sales invoices; POs, Remittance advices ] Are the duplicates an exact replica of the relevant financial and VAT accounting information as stored on original documents [i.e. they do not take account of any subsequent changes to the standing data? Rental invoices and fee notes, letters, landlords remittance notices, contractor payments, paying in slips etc Are these clearly identified as No 51

44 duplicates? Does the software force the production of month-end reports? Can the reporting function make use of external data files? Does the report writer have the facility to scroll up and down when output to screen? Can all reports be run without the need for period-end procedures to be initiated? Does the report writer allow print previews of all reports? Can transactions and standing data be output directly to other formats e.g. CSV, txt, XML, PDF etc. for any period of time required? and not considered Necessary No period-end procedures (XML files cannot be generated by end users directly XML is however used to publish data to a letting portal). 52

45 12 Value Added Tax The following sections detail the general requirements/features of an accounting package in handling VAT. It cannot cover all eventualities or all users and where necessary members should contact their local HMRC office for detailed guidance. The overall objective is to accurately record the accounting for VAT in order to support VAT returns to HMRC Does the software have the facility to hold the following VAT information:- for letting agent UK VAT registration number? Intrastat code? EC Code? EC VAT registration numbers (10)? VAT rates (please specify number available) No unlimited 12.2 How does the software handle roundings? 12.3 Is this applied consistently? 12.4 Does the software handle VAT Scale charges with automatic double entry processing? 12.5 Does the software handle VAT calculation tolerances? If do any discrepancies produce: Warning? Appear in the audit Inbuilt Rounding function in software 53

46 trail? Appear in the VAT exception report? 12.6 What security features (password/ audit trail) are in place to control changes made to: General ledger VAT control accounts? VAT tables set up and change? Tolerance levels? Invoice sales number table? Changes on VAT code on customer files? Changes on VAT code on stock files? VAT calculated on sales invoices or credit notes? 12.7 Does the software store and report a VAT return identifier [VRI]? 12.8 How does the software ensure that that each eligible posting is reported only once in a VAT return? User Security Only 1 rate in use for VAT on fees charged No VAT rate on Landlord files If permitted to raise an invoice the VAT can be amended with an appropriate warning Not automatic but the reports will pick up entries that have been backdated in error. The Pay Agency Fees report is the key. Pay Agency Fees report can only pick up figures once. The agencies using the software charge fees for their services and those fees attract VAT so as the agency earns fees the system charges VAT and the Pay Agency report shows all Agency fees 54

47 Method of operation earned plus all VAT charged on those fees. Agencies would then put this information into whatever software they use for managing their own business (e.g. Sage) 12.9 VAT basis. Can the software handle: Invoice (standard) accounting? Cash accounting? The agents can get reports for fees charged via both types of VAT methods but for the Agencies this would be dealt with in a separate accounting package such as Sage 50. Agents cannot process any agency expenses through the software (they are not allowed to process expenses from a client cash account). They would withdraw fees from the clients cash account and pay the fees into their business account. CFPwinMan would then have no further involvement and the agencies VAT return would be done from whatever other package the agency uses If the software can handle both invoice (standard) and cash methods depends how entered into prime accounting records 55

48 of accounting for VAT is the basis clearly identified during set up? Does the software allow for a switching between methods? If : Is the change fully supported by audit trails to ensure proper VAT treatment of all transactions? Is this ability to change a basis of accounting clearly flagged, i.e. users warned etc Does the software alert the user that they require HMRC authorisation if they attempt to apply, retrospectively, the Cash Accounting Scheme for VAT accounting? Does the software provide useful and relevant information on switching in the software help section? Can the software handle the following VAT schemes: Annual accounting scheme? Flat rate scheme? 56

49 Retail schemes? Account for VAT on the margin? Can the software be configured to handle partial exemption methods? Please state the number of VAT codes available for VAT analysis How does the software handle: Outside scope? Distance selling (supply to an unregistered EC customer)? How the software handle EC VAT: Goods and related service? Services only? Process? Triangulation? Does the software include the functionality to identify EU acquisitions? If : Can the software generate acquisition tax? Can a report be generated of all EU acquisitions and the amounts of acquisition tax generated? 57

50 12.19 Does the software include the functionality to identify transactions liable to reverse charge VAT? If : Can the software generate reverse charge VAT? Can a report be generated of all transactions liable to reverse charge VAT, and the amounts of tax where so generated? Does the software have a facility to reconcile the VAT returns amounts for input, output and net VAT payable/recoverable to the General ledger control account? How does the software handle late transactions posted outside the closed VAT return period? Input VAT (purchases) Can the software handle VAT inclusive amounts and automatically calculate the input VAT? Does the software require the following to be entered: Supplier reference? - CFPWinman does not manage the agencies business it only manages the clients cash account and therefore only manages and reports on the charging of fees with VAT. Any backdated fee would be picked up on the next pay agency report and the agency would then need to process that information appropriately in their own business software. 58

51 Supplier document reference? Internal document reference? Invoice tax point date? Invoice posting period date? Invoice gross total? Invoice VAT amount? Individual invoice lines: Net amount? VAT rate? VAT code? Does the software validate individual invoice line VAT amounts against the total invoice of VAT (less early settlement at discount) and accept or reject the amount subject to the software tolerance? Can the user override the software derived input VAT amount and input VAT as shown on the supplier invoice? Does the software allow VAT to be reclaimed on the basis of registered but unposted invoices? 59

52 If :- Does the software flag the status as: VAT not yet reclaimed? VAT claimed? Output VAT (sales) Does the software generate sales invoices? For each invoice generated is the following information included on the sales invoice: Unique software generated invoice sequential reference? Company name, address, EC country code and VAT number? The time of supply (tax point) Date of issue (if different to the time of supply) Customer s name (or trading name) and address, EC country code and VAT number (if applicable) The unit price [applies to countable goods or services. E.g. an hourly rate; or a price for standard services.] not EC country code though Name and address does not show customers VAT number No unit price Applicable 60

53 A description which identifies the goods or services supplied? Does the software identify supplies that are zero-rated, exempt, no VAT applicable? Is this on the face of the invoice? Does the software handle Proforma invoices? If : Are the invoices clearly identified as this is not a tax invoice? VAT Reporting Does the software produce a VAT 100 form as standard? If No: Does the software have a means of producing reports that support the completion of the VAT return? Is the VAT return information available by report on a three monthly basis or any other specified period? The agency would only ever charge fees to a landlord so all transactions would have VAT at the standard rate. Preview invoices available where invoice raised but not posted Is there a detailed and summary analysis of all 61

54 transactions included in each return sorted by VAT code and transaction type making up the total in each of the boxes on the VAT 100 Form? Can the VAT return be recreated showing all the transactions which were included in the original VAT return? Does the software have a separate VAT audit log? Note where the software details the following non routine event in the audit trail or VAT audit log etc: Changes to VAT tables Change from invoice/cash VAT accounting or other Schemes VAT tolerance Changes to VAT rates on customer, supplier, product master files. Please specify Are the above changes noted above stamped with a: User id? Software generated unique reference number? 62

55 Date and time? VAT postings Are all VAT postings recorded in the audit trail or VAT audit log? Does the software denote whether each transaction has been included in a reconciled VAT return? How does it denote which VAT Return the transaction has been included in? Does the software produce a VAT Exception report detailing such transactions as: VAT amounts outside tolerance levels? Manual changes to software generated VAT? Write offs Zero value invoices? If No for any of the above: How does the software document these occurrences? Does the software handle intra-community supply of goods? 63

56 12.42 Does the software support production of an EC Sales List? If : Does the report show the country code, the customer name, their EC VAT number, the invoice reference and indicators for different types of despatches? Does the software produce invoice level reports that enable every value on each EC Sales List report to be traced to source documents? Does the software have a means of ensuring that each eligible posting on the EC Sales List is reported only once? (Please state how this is done within the software) How does the software handle triangulation? E.g. a movement of goods without a related invoice transaction Does the software produce the relevant documents in a format [e.g. CSV or XML] that can be uploaded direct to the HMRC gateway? 64

57 12.47 Can these be electronically transmitted direct from the system? Does the software produce Intrastat reports where applicable? How are errors on VAT accounts corrected? How does the software handle the VAT on purchase and sales ledger contras? How does the software handle partially allowable expenditure, e.g. VAT on petrol invoices where employees are provided with petrol (adjustment required for own use)? Can the software handle cheque refunds to customers? If : How is the VAT accounted for under cash accounting? Can the software handle invoices with multiple rates of VAT? How does the software handle write off of bad debts and the related VAT? 65

58 13 User Documentation This section applies to any of: online, hardcopy or other (e.g. WWW) documentation specify which are applicable Is the manual clearly laid out and understandable? 13.2 Is the manual comprehensive and accurate? 13.3 Is there an index to the manual? 13.4 Is it easy to locate specific topics in the manual when required? 13.5 Is it easy to follow through all procedures in the manual? 13.6 Does the manual include: online and on PC/server A tutorial section? Separate help sheets A guide to basic functions? Pictures of screens? Completed examples included in the manual? Specific error correction procedures? VAT information? 13.7 Does the documentation clearly specify the actions to be taken by users at each important stage of processing? 13.8 Are help screens available relating to the task in hand? (context sensitive help). No but there are tool tips 66

59 13.9 Do they provide on-line instructions on how to use particular features of the software? Can they be edited or prepared by the user? No Will the Software House make the detailed program documentation (e.g. file definitions for third party links) available to the user, either directly or by deposit with a third party? 67

60 14 Efficiency 14.1 Are the various functions of the software menu-driven, or otherwise easy to initiate? 14.2 Is there a good response time in the initiation of functions? 14.3 Is data entry easily repeated if similar to previous entry? 14.4 Does the software prevent access to a record while it is being updated? 14.5 Is there locking at file or record level? 14.6 Does the software allow for the running of reports whilst records are being updated? 14.7 Does the software retain a log of file updates until the next occasion on which the relevant information is reported or the relevant file used in a regular control procedure? 14.8 Can regular reports be easily duplicated if required? 14.9 Does the software warn the user when space is becoming short? Not necessary in this type of software Record level Unlikely to be an issue 68

61 15 Integration and www facilities 15.1 Are the different accounting modules integrated? as regards accounting modules 15.2 Are they integrated on real time basis or batch basis? 15.3 Can the integration of batches be by batch, weekly or monthly? 15.4 Is the ledger updating process satisfactorily controlled by the production of control reports? 15.5 What operating systems does the software run under? Windows XP, Windows 7, Windows Vista, Windows 8 / Windows 8.1 / Windows Server Terminal Services (2003, 2008 and 2012) Which databases can be used? Access or SQL see 3.6.2/ Can more than one software function be performed concurrently? 15.8 Can the software be linked to other packages e.g. word processing, graphics, financial modelling, to provide alternative display and reporting facilities? 15.9 Can definable links to spreadsheets be created? Does the software integrate with any web trading software? External or Suppliers own? There is an internal diary and word processor- syncs diary with Google Calendar, integrates with Outlook for . Reports can be exported to Excel for manipulation. Export to xls or csv/txt file only 69

62 15.11 Note which other business application software that can be linked to the software: Payroll? Time/fees? MRP? Fixed assets? Document management software? Job costing? CIS? Other please specify? Tenancy Deposit Scheme (Deposit Protection Service) link supplies details of tenants deposits and returns a registration number and protection certificate to prove registered Is the software compatible with XML standards? If so in what respect? (input/ output/ other)? Can produce XML output if Required see above 70

63 16. Support and maintenance 16.1 How is the software sold: Direct from Software House? Via Value Added Reseller (VAR)? Direct Only 16.2 How is the product supported:- Software House Direct by Software House? By VAR? 16.3 Is the software sold based upon number of users or number of concurrent users? 16.4 Do VARs have to go through an accreditation process? If : Please note the process. If No: Please explain how organisations are chosen to be VAR? 16.5 In the event of a dispute between Supplier and VAR how can the situation be resolved? 16.6 Detail the types of cover available. Both options available 16.7 Please note all method of support available : Telephone Modem link Internet Other specify. Remote support + helpsheets available to customers 16.8 Please provide an indicative cost Guide price - 1 database

64 of cover and what is included. users pa support and maintenance 16.9 How often are general software enhancements provided? Will they be given free of charge? How are enhancements and bug fixes provided to customers? Is hot line support to assist with immediate problem solving available? If so, is there an additional cost involved? At what times will this support be available? Who provides training: Software House? VAR? Is hardware and maintenance provided by: Software House? VAR? Is a warranty offered in respect of specification of the software? Will the software supplier/dealer make the program source code available to the user, either directly or by deposit with a third party (Escrow)? As and when needed Upgrade from Access to SQL is chargeable otherwise covered by support contract Download from web CD if Requested No covered by normal support Fees Monday- Friday exc Bank Holidays Software House Software house provides some hardware (on request) generally just servers not essential for the sale Escrow if required but never been done 72

65 16.19 Are there any unduly restrictive conditions in the license for the software? 50 year licence for registration to a company re-registration charge ( 100 but under review) to register if a business takes over another with the software in place. 73

66 17. National Approved Letting Scheme system requirements 17.1 Client Money Does the system allow for separate ledger accounts to be set up for each customer (landlord/tenant)? Separate accounts exist for each customer (Landlord/Tenant) and for items such as overseas tax, agency cash etc What is the maximum number of accounts that can be set up? Do ledger accounts include the following in their title? - Name of customer/landlord/tenant? - Description of the account? Are different levels of access provided on customer accounts: - For set up? - Write to? - Read only? Unlimited How are access rights managed? User defaults passwords/user rights section Does the system allow for separate bank accounts to be set up for each customer (landlord/tenant)? How does the system distinguish different types of bank accounts? Please list all types of accounts handled by the system? It does where relevant, ie Property and Landlord, Tenant receipts go to Property Bank account, deposit bank account or agency bank account Unique identifier plus description/account name which is then associated to a customer. User definable any type 74

67 of account Can the system differentiate between office bank accounts and designated client bank accounts? If : How is this done? What are the prerequisites and procedure for setting up a client bank account? Do client bank accounts include the following in their title? - Name of customer/landlord/tenant? - Description of the account e.g. designated client bank account? Are different levels of access provided on client bank accounts: - For set up? - Write to? - Read only? in terms of client cash bank accounts, but the system does not cater for a general non-client office account. Users can set Banks up within the system and associate them to relevant records. Each Bank has a unique id, a name, a branch, sort code, account number, account name and a known as. User has to have authority to access bank accounts section plus user also has to have access to relevant tab on information forms to attach a bank account to a landlord/tenant They include the account name and known as. Designated will need to be entered as part of the description when creating the account.(user definable) For access ie you can not open the form at all For write (including set up) For read only ie you can open the form but can not edit 75

68 How many client bank accounts can the system operate? How many client bank accounts can be set up per customer? Can the system link a particular designated client bank account to a customer ledger account? If : How is this done? Can the system denote that the designated client bank account is held at an authorised institution? Unlimited unlimited. By association to the client record either through Property level or Landlord level The system ensures that the sort code and bank account number are in the correct format (xxxx-xx for sort code for example) Does the system hold any standard letters that can be issued to authorised institutions to advise them that client monies are to be ring-fenced and handled in accordance with NALS accounting standards? Can a current balance on each client bank account be readily ascertained? Can the system monitor office bank account credit balances? If : Does the system produce a report of these or flag any unusual balances? Can the system monitor client bank account credit balances? No standard letters are supplied but users could create own letters as merge fields exist for default property bank account details to be merged into letters It reports them but doesn t flag them, the user would need to manually look down the report -insofar as the system does not actually permit a client bank account to 76

69 If : Does the system produce an exceptions report and flag these balances? Is there a central register of client bank accounts? Does this register periodically monitor activity on each client bank account? Will the system highlight client bank account inactive for a significant period? If : How is this done? Will the system highlight any remaining balances left on client bank account if the customer account is closed? Can the system be set up to ensure that any attempt to make changes to the client account: - Is prohibited? 17.2 Receipts - A system warning raised? What is the procedure for identifying office and client money? become overdrawn! Users (with appropriate permissions can override this however). A standard report is produced which would show all balances both debit and credit Manual reports between date ranges can be produced at any time No (we could set up a report if required). This would also be identifiable from the date range reports, you cannot close accounts with balances, the system will continue to report on them in reconcile balances You can only make changes if you have authority to do so but no warnings if authorised people make changes Invoices are raised ahead of any receipts being made, if a receipt is paid into or earned from monies in a client cash account it will appear on the pay agency fees 77

70 Can the system handle all forms of receipts? (e.g. cash, cheques, drafts) What facility is in place to ensure all client money is paid into a client bank account first? What facility is in place to ensure all client money is: - Banked without delay? - Posted to the client account promptly? Does the system record cash receipt posting dates? Does the system record the date the monies appeared on the bank statements? Are reports available to highlight the posting and banking dates of client money, by customer? Can reports be run to highlight any discrepancies, between posting date and banking date based upon tolerance limits? Can the system set specific parameters in order to identify and record client money not held in a designated client report and will show in reconcile balances as credit belonging to the agency. Any monies received have to be allocated to a client (tenant/landlord) in the system cannot post direct to bank account. All types can be handled Cash receipts must be paid into the bank no facility for cash payments in the system Items remain outstanding on bank reconciliation if posted. It batches receipts together and posts a batch to the bank when pay in slip updated -the information is stored and is available but on multiple reports No can be produced on request No - preset - Insofar as monies have to be recorded in the system against a specific client 78

71 account? and held in a client bank account. If : Are these accounts separately identifiable and held on a separate register? If No: What other controls are in place to identify such receipts? Does the system require that a fee note has been issued for a client before a receipt can be posted? Will the production of a fee note flag a transfer of costs from a client bank account within a pre-specified number of days or date? Can the system identify a certain procedure for different types of receipt? - Office money office bank account? No unallocated monies can be entered. Reports are available to show outstanding fee notes and available funds for matching Money is earned within the system but has to be paid to an office account before it can be used for any office expenses (see Pay Agency Fees) - Client money client bank account? All monies appear in reconcile balances and alerts to pay to Landlords or to refund to tenants appear on organiser 79

72 - Payment on account of costs - client account? Please expand How is the receipt of mixed payments recorded? Contractors bills can be paid directly from client money, this in turn shows on landlord statement A single receipt is entered into the system, the money is allocated to relevant invoices at item level so a receipt for say 500 could be entered but this would then be split at item level so could cover two or more outstanding amounts, say 300 for rent and 200 for deposit. If money is placed in a client bank account, can the system trigger a reminder to transfer the office account element within the pre-set timescale? No reminder but agencies regularly draw down monies as they can not use it until it is transferred to an office account separate to CFPwinMan (which only deals with client funds) If receipt of a mixed payment includes professional disbursements incurred can the system trigger a reminder, within a pre-set timescale, to pay the disbursement or transfer a sum from the client bank account in settlement? 17.3 Withdrawals, when disbursement charges are received or made the system prompts on organiser (displayed at startup) to pay the bill Can the system be set up to (Payments only can 80

73 ensure a withdrawal can only be made by an authorised person? If : What systems controls are used? How does the system ensure the withdrawal is for approved purposes? Can the system set up particular types of allowable payments so that an authorised user has to specify the type of withdrawal? If : - What type of withdrawals will the system record? Please list be made) Users need permissions in defaults to pay monies out of the system Withdrawals are linked to the type of receipt, monies can only be used for intended purposes, e.g a receipt for Overseas tax can only be refunded to the payer or paid to hmrc the intended purpose of the monies controls what can happen to it., fully item specific. So someone set up to make contractor payments can only do that. Payments to agency Payments to landlords Refunds to Tenants Payments to Contractors Payments to Deposit Protection Scheme Payments to Inland Rev (overseas tax) - Are these types of allowable withdrawals user definable? No - as all withdrawal types are pre-set so the behaviour is fully controlled, users can 81

74 not set their own withdrawal types. - Is the use of these mandatory?, the user can only withdraw monies using the systems pre set withdrawal methods using these preset methods is mandatory What controls are in place to manage the following withdrawal types out of the client bank account: - For payment on property authorisation to the person entitled to receive it? - In discharge of a sum owed to the third party by the person otherwise entitled to receive it? - To correct an inadvertent overpayment into the account? - For payment into another customer s client bank account kept by the letting agent? Property payments can be refunded to tenant or paid to landlord, no other options available (other than for disbursements, which is fully auditable) Controlled by way of entering as a contractor payment naming the contractor as the third party. Would show as unallocated and a payment (with the appropriate permissions) would be needed to issue the repayment Although you could pay into another bank account, the system will still allocate the money to the correct client and report that monies are held in x bank account belonging to y client. A bank transfer can be done (with appropriate permissions). 82

75 - To withdraw interest which has accrued on the account? - Payment of letting agents fees How does the system ensure that payments is only made if the customer has a copy of the letting agents account and authorisation has been received in writing or as part of the terms of engagement between the letting agent and customer? What controls are in place to ensure that there are sufficient funds available in the client bank account to cover the required withdrawal? What controls are in place over the transfer between different client bank accounts? How does the system ensure a withdrawal cannot make a client Interest has to be credited to relevant client or appears as an agency fee Agency fees can only be entered onto the system as receipt for an open invoice or as a deduction on a Statement (per terms of engagement). Any deduction made for fees results in relevant paperwork being produced for sending to client. History log shows production of agreement (which can be done from within the system). There is no system to enforce a Terms of Business agreement being in place before paying fees. The system is designed to prevent users from overdrawing the clients cash account, very prominent messages require authorised users to confirm to overdraw and warn this should only do this when reversing something. You can transfer monies (if you have authority in defaults) but it is fully itemised so would record the monies as belonging to the same client but in the different account The system is designed to prevent users from overdrawing the clients 83

76 bank account overdrawn? What controls are in place to ensure that withdrawals cannot be made in cash? Does the system allow withdrawals against uncleared cheques? What controls are in place to block a withdrawal being made out of a client bank account for the payments relating to another customer? Can the system recognise that interest is due to a client? - At what intervals/ amounts is this triggered? - What rate of interest is applied? - What method is used for calculating interest due to a client? What controls in place to ensure all interest generated on a designated client account is allocated to that account? Is there a de-minimis level by which interest is not allocated to a client? cash account, very prominent messages require authorised users to confirm to overdraw and warn this should only do this when reversing something. There is no facility for cash withdrawals within the system Clearance days are entered into defaults for receipt types, the system will not process payments due until after the clearance periods (set in defaults) unless a user chooses to override. This is not possible, all monies are itemised and allocated to a client determined by status setting in database All controlled by agent Bank Reconciliations mean that interest would need to be added for reconciliation to balance Under the control of the agency 84

77 How are customers flagged on the system that are contracted out of the provision of interest? - How are such customers and their related client bank accounts determined? - What information is required to enforce this? Are there rules in the system to ensure that interest is paid on cleared funds only e.g. ability to identify immediate and 4 day cleared funds? Can reports be produced for government requirements for high interest earning clients bank accounts? A flag can be set in the system to indicate the status No Reports could be written if requested Noted Noted 85

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79 Appendix A Minimum Software and Hardware Specifications Dedicated SQL/File Server not used as a workstation or to run other applications Under 10 users Windows RAM (Minimum) Processor Hard Disk CD-ROM SQL XP Pro SP3, Vista Business or Windows 7 Pro 2Gb 2.6Ghz At least 160 GB YES MS SQL Server 2005 / 2005 Express Please NOTE a workstation OS cannot accept more than 10 network connections. For network connections over 10 you will need to upgrade the SQL server so that it meets the requirements below with Microsoft Windows 2003 or 2008 server Over 10 users Windows Windows Server or 2008 (a dedicated Server OS is recommended rather than Small Business Server) RAM (Minimum) 4GB Processor 3.2 Ghz Xeon (or equivalent specification) Hard Disk At least 160 GB Raid 1 (ensure that at least 10% is always free space) CD-ROM SQL MS SQL Server 2005 / 2005 Express Please note the RAM & Processor details provided are a recommended minimum. All business applications and services running on a server will compete for resources, so please ensure that your server is not overloaded. CFP advise against SBS for this reason. Note that SBS cannot be used as a TS Server. Peer to Peer Server / Single User Windows XP Pro SP3 Vista Business or Windows 7 Pro RAM (Minimum) 2Gb 4Gb Processor 2.6Ghz 2.6Ghz Hard Disk At least 160 GB (with 10% free space) At least 160 GB (with 10% free space) CD-ROM YES YES 87

80 Monitor SVGA monitor or better, capable of displaying at least 256 colours. The monitor display must be at least 1024 x 768 (recommended 17in monitor or above). Workstations Windows XP Pro SP3 Vista Business or Windows 7 Pro RAM (Minimum) 1Gb 2Gb Processor 2.6Ghz 2.6Ghz Hard Disk 2Gb Available Space 2Gb Available Space CD-ROM YES YES Monitor SVGA monitor or better, capable of displaying at least 256 colours. The monitor display must be at least 1024 x 768 (recommended 17in monitor or above). Please note the RAM & Processor details provided are a recommended minimum. Increasing the RAM in a workstation and peer peer server or having a faster processor will have a positive effect on the performance of CFPwinMansdb. All business applications installed on a workstation will compete for resources, so CFP would recommend increasing the specification of workstations if numerous applications are installed. TS Hardware and Software Requirements Dedicated Terminal Services Server not used to run applications locally Windows Windows Server or 2008 (2008 recommended) (Small Business Server is not suitable) RAM (Minimum) 4GB (Suitable for approx. 12 connections running CFP applications) Processor 3.2 Ghz Xeon (or equivalent specification) Hard Disk At least 160 GB Raid 1 (ensure that at least 10% is always free space) CD-ROM Terminals/Workstations - for each user connecting to the Terminal Server Windows XP Pro SP2 Vista Business or Windows 7 Pro RAM (Minimum) 1Gb 2Gb Processor 2.6Ghz 2.6Ghz Hard Disk At least 160 GB At least 160 GB CD-ROM YES YES Monitor SVGA monitor or better, capable of displaying at least 256 colours. The monitor display must be at least 1024 x 768 (recommended 17in monitor or above). The quality of the hardware for a terminal server is key to the performance of the overall system. Every operation of all connected clients takes place on the server. We strongly recommend setting up a separate terminal server to your main file server. This ensures the local network can function to its maximum potential because clients logging in to the terminal server will not take valuable resource from the file 88

81 server. Also, a high-performance hard drive system is not essential for the terminal server if the main data is stored on a separate file server the file server should have the high performance drives(s). It is further recommended that the server is kept free of all components that are not needed for terminal server operation e.g. sound cards and modems. Connection Routers are used to connect branch offices to the head office the one with the file server storing the database. ADSL (broadband) is the minimum connection type suitable for continuous use. Dedicated leased lines are recommended. Citrix (XenApp) XenApp is not an operating system it is just a system extension. However, it is a very good extension! It provides optimised use of resources such as load balancing, to support many more nodes with the same spec, bandwidth control and automatic reconnection. Other features such as support for DOS and Apple are not relevant as our Windows applications are all 32-bit. Please note that use of Citrix is not something that we support, so it relies entirely on your own IT being able to support and configure your system to allow our products to run on it. If your IT cannot support Citrix, DO NOT use Citrix! Peripherals ADSL internet connection. Remote access software on at least one computer that is running the CFP software application; Printers recommended HP business class laser or inkjet. Please ensure that shared printers are capable of coping with the increased demand. We do not recommend multi-function units for busy offices unless provided for individual workstations. Network Requirements 5 screens or more - Dedicated Server and workstations as detailed on the previous page; 4 or less - peer-to-peer networking. Workstations as detailed above but with ONE PC having the same spec as the Peer to Peer server spec as detailed on the previous page; We recommend at least 100mbps throughput on all network devices, though ideally 1Gbit throughout. Minimum category 5 cabling, RJ45 connectors, a business class switch. Quality network cards are also recommend in all computers. Other methods of connection may be suitable, but performance may be impaired. Wireless networking is not suitable for database applications! 89

82 Virus Checking It is vital that you have a quality virus checker, on all computers. It is also essential that this virus checker is updated on a regular basis - which is normally done via Internet download. We have become aware of a new breed of subtle virus that causes persistent system errors that can be very destructive to your operating system. Our support staff are powerless to help with problems caused by viruses and will ask if you have run an up to date virus scan. It is your responsibility to ensure that you are adequately protected from viruses however, it should be noted that having your AV configured for "on access" scanning of ALL files will have a detrimental effect on speed of file access. Providing you schedule regular scans of unprotected files, it is common practise to leave your main data files "at risk" in order to achieve optimum performance for day to day access. If it is your decision that performance is most important and outweighs the risk of infection, you can disable on access scanning of the CFP data folders. 90