Leaseholder Service Charge Audit

Anchor will require the following leaseholder service charge audits/services based on:-

• Preparing the service charge statement in accordance with Tech 03/11 Residential

Service Charge Accounts published jointly by the professional accountancy bodies with ARMA and RICS;

• Anchor will make available all relevant information and documentation in relation to

which your procedures are to be performed including transaction list and trial balance spreadsheet for each home as well as relevant information requested upon sampling;

• Maintaining proper accounting records in relation to the premises in respect of which a service charge statement is prepared;
• Ensuring your compliance with the requirements of the Landlord and Tenant Acts

1985 and 1987;

• Safeguarding the assets relevant to the service charge statement and preventing

and detecting fraud, error and non-compliance with law or regulations.

Ensuring that all arithmetic on the service charge statements is correct. Your procedures will be performed in order to detect any mathematical errors in the calculations made by Anchor.

Agreeing all entries on the service charge statements to supporting working papers and income and expenditure data for the service charge period.

Agreeing a sample of expenditure declared in the statement of expenditure to invoices / other supporting documentation and evidence of payment to ensure that:

• expenditure is eligible under the Anchor Hanover Group’s agreement with their tenants
• expenditure included in the certificate is defrayed in the correct service charge

period; and

• apportionments included in the certificate for admin costs and overheads are on

a basis that is consistent with the Anchor Hanover Group’s internal systems

The above agreed procedures will be performed having regard to Tech 03/11 Residential Service Charge Accounts published jointly by the professional accountancy bodies with ARMA and RICS. Having performed the agreed procedures, you will report to Anchor in writing on your findings.