At O'Dwyer Property Management, we understand that the professionalism of the managing agent is tested and reflected in their ability to ensure service charge adequacy and the promotion and provision of a sinking fund. Our team of certified accountants specialise in preparing and advising clients on service charge budgets, and know that this is central to the managing agent’s role.
Service charge billing, apportionment and collection, can be a lengthy process. In Ireland, only about 10% of owners pay on foot of the initial demand and so the operation of a debt-collection programme thereafter is required. Our process includes the calculation and charging of interest in line with lease terms in addition to arranging and coordinating legal action to ensure full recoveries. As well as cash flow management and day-to-day accounting, we also manage reserve fund planning (Building Investment Funding), ensuring that future works requirements for your building are provided for. The arrangement and ongoing management of the funds falls to the managing agent.
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Service Charge Apportionment
- Prepare, issue and administer the appropriate Service Charge Accounts to all Members apportioned in accordance with the terms of the Lease or Title and as prescribed by the approved Budget.
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Annual Service Charge Budget
- Annually, in advance, prepare for the client’s approval, a Budget Forecast for the following financial year, including a Sinking/Reserve Fund provision.
- As a matter of good practice, we procure as appropriate, three quotes where contracts are being renewed or are not already in place.
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Financial Records and Books
- We maintain proper financial records, books of account and all financial statements relating to The Premises and the management thereof at all times, as well as ensuring same is available to the management board of The Client and its Auditors.
- Monitoring and reporting to The Client on the actual performance against budget as required by the Board of the Client.
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Quarterly Financial Reporting
- Financial reports are issued quarterly and these provide up to date information in relation to the financial performance of the development.
- Each quarterly financial report includes a report on actual expenditure to budget, a balance sheet, a schedule of accruals and prepayments, a service charge debtor listing and bank reconciliations, together with bank statements.
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Annual Financial Statements
- Annual financial statements are prepared.
- Audit files are prepared and ready for audit within 6 weeks of year end.
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Independent Audit
- Audit files are prepared, including all invoices received for the financial year.
- An annual independent audit is carried out.
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Annual Service Charges Administration
- Issue annual service charge newsletter.
- Issue annual service charge statements of demand.
- Issue direct debit mandates.
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Service Charge Collections
- Collect current instalments of Service Charges and any such other monies due from the members.
- Issue such reminders for the normal collection and recovery of all Service Charges.
- Take such measures in accordance with the Terms set down on Title to notify any non-paying Member in advance and to charge such interest to the Member within a reasonable time before the completion of the financial year.
- In accordance with the terms of the Head Lease, pass any non-paying Service Charge account to specialist Solicitors for the recovery of same through the legal process.
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Contractor Invoice Payments
- Expend all sums received for the benefit of The Premises that are prescribed within the Budget, specified and agreed in advance.
- In the case of an emergency, take such reasonable measures and incur such expenses as The Agent shall consider appropriate and necessary to mitigate damages.
- Expend such sums considered necessary by The Agent to ensure compliance with any statutory provision affecting The Premises or affecting The Client or The Agent with regard to The Premises.
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Deposit and Current Bank Accounts
- Lodge directly all Service Charge receipts and record all payments to each owners account.
- Maintain deposit and current accounts for The Client and prepare periodic reconciliation statements.
- Take such reasonable care to ensure that all Sinking Funds Reserves are maintained in the deposit account and the interest rate is appropriate and recorded.
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