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					Park View                                    Business and Community Review




BUSINESS AND COMMUNITY REVIEW ON THE
              OPERATIONS

                              OF

                   “PARK VIEW”
                 (GREAT MALVERN)


                    PREPARED FOR


                THE LEASEHOLDERS,
               PVRA COMMITTEE AND
            PARK VIEW (MALVERN) LIMITED



                        24 MAY 2007



                  JOSH CARDY Q.A. BSc (Hons)
                 Park View, 33 Abbey Road, Malvern




                             Page 1                              JC 2007
Park View                                                                                           Business and Community Review



                                 TABLE OF CONTENTS

INTRODUCTION .................................................................................................................... 5

OVERVIEW ............................................................................................................................. 5

PARK VIEW MALVERN LIMITED (“PVM”) ................................................................... 5

PARK VIEW RESIDENTS ASSOCIATION (“PVRA”) ..................................................... 6

THE FINANCIALS.................................................................................................................. 7

   Park View Malvern Limited ................................................................................................ 7
   Park View Residents Association ........................................................................................ 7
       Overview ............................................................................................................................ 7
       The Un-audited Accounts................................................................................................... 7
       Budgets ............................................................................................................................... 7
       Project Contracts ................................................................................................................ 7

THE PROFIT AND LOSS ACCOUNT ................................................................................. 8

   INCOME ............................................................................................................................... 9
       Service Charges .................................................................................................................. 9
         2006 Service Charge .................................................................................................... 10
         2007 Service Charge .................................................................................................... 12
         Ground Rent ................................................................................................................. 13
         Lease Transfer Fess ...................................................................................................... 13
         Bank Interest ................................................................................................................ 13
         Sundry Income ............................................................................................................. 13
   EXPENDITURE ................................................................................................................. 14
       Property and People Services Fund A .............................................................................. 14
         PV Building Common Parts Maintenance ................................................................... 14
         Render Repairs ............................................................................................................. 14
         Bright Willis Management Charge .............................................................................. 14
         Bright Willis Supervisory Fees .................................................................................... 15
         Survey Fees .................................................................................................................. 16
         Wages Handyman ........................................................................................................ 16
         Directors and Officers Indemnity Insurance ................................................................ 16
         Employers Liability Insurance ..................................................................................... 16
         Accountants Fees.......................................................................................................... 16
         Other Professional Fees ................................................................................................ 16
         PV Building Property Maintenance ............................................................................. 16
         Lift Contract and Charges ............................................................................................ 16
         Cleaners Wages ............................................................................................................ 17
         Window Cleaning ......................................................................................................... 17
         Building Insurance ....................................................................................................... 17

                                                                  Page 2                                                           JC 2007
Park View                                                                                           Business and Community Review


   THE DECORATION FUND ............................................................................................. 18
   Taxes .................................................................................................................................... 19

BALANCE SHEET ................................................................................................................ 19

BUDGETS ............................................................................................................................... 21

   Actuals against budget 2005/2006 ..................................................................................... 21
   Commentary on 2005 and 2006 Budgets .......................................................................... 22
       PV Building Common Parts Maintenance – Fund A ....................................................... 22
       PV Building Property Maintenance – Fund B ................................................................. 22
   BW 2007 Budget ................................................................................................................. 23
   Budgeting Methodology ..................................................................................................... 24
       Best Practice ..................................................................................................................... 24
   Integrated Budgeting Process – “A Layman’s Guide” .................................................. 25
       Recommended 2007 Fund A Budget ............................................................................... 26
       Recommended 2007 Fund B Budget ............................................................................... 28
   2007 Recommended Integrated Budget ........................................................................... 30

WHAT HAS THE MONEY BEEN SPENT ON? ............................................................... 31

   5 Year Expenditure ............................................................................................................ 31
   2002 Expenditure................................................................................................................ 32
   2003 Expenditure................................................................................................................ 33
   2004 Expenditure................................................................................................................ 34
   2005 Expenditure................................................................................................................ 35
   2006 Expenditure................................................................................................................ 36

OPERATIONAL REVIEW .................................................................................................. 37

   East Wing Stores (“EWS”) ................................................................................................ 37
       Conclusions ...................................................................................................................... 38
       Recommendation Options ................................................................................................ 38
   Annual Contracts ............................................................................................................... 39
   Contractors ......................................................................................................................... 39
   Specifications and Quotations ........................................................................................... 39
   Project Costing and Evaluation ........................................................................................ 40
   Guarantees .......................................................................................................................... 40
   Standard of Work Done ..................................................................................................... 40
       East Wing Examples ........................................................................................................ 40


                                                                  Page 3                                                           JC 2007
Park View                                                                                          Business and Community Review


   Maintenance of Maintained Parts .................................................................................... 40
      East Wing Examples ........................................................................................................ 40
   Surveys ................................................................................................................................ 40

BRIGHT WILLIS (“BW”) .................................................................................................... 41

RECOMMENDATIONS ....................................................................................................... 42

   Pre AGM 21 June 2007 ...................................................................................................... 42
   Post AGM 2007 ................................................................................................................... 42




                                                                 Page 4                                                          JC 2007
Park View                                                            Business and Community Review


INTRODUCTION
Park View (“PV”) is a Grade II listed building based in Great Malvern, Worcestershire
comprising 44 individual flats.

PV is both a business and a community and therefore this report has been sensitive to both
factors. It has been produced to aid the landlord, Park View Malvern Limited (“PVM”), the
Park View Residents Association and the residents in historical fact finding in relation to the
finances and operations of the business of Park View with an aim of instituting business and
community best practises for the future.

The objective is to ensure that PV is managed professionally, work undertaken by contractors
is of a high standard, receives value for money from its agents, is transparent in the workings
of the business and instils confidence amongst its residents that all is well in the world in
relation to their home.

OVERVIEW
Every leaseholder is governed by a lease that sets out rules and regulations relating to each
flat. Residents can be the leaseholder or it can be let out to a third party.

Park View is managed by a landlord, Park View Malvern Limited, a dormant charitable status
company that has directors made up of both residents and non-residents. PVM delegates the
running of PV to the Park View Residents Association Committee (“PVRA”), which consists
of leaseholders of PV. The PVRA shall appoint an agent. The delegation of powers is set out
in minutes dated 17 June 2000.

PARK VIEW MALVERN LIMITED (“PVM”)
This is a dormant company with assets of £13,500 relating to the notional value of the
freeholds of the 44 flats at PV. Its purpose is to act as lessor (landlord) to the leaseholders
and ensure its responsibilities under individual leases are adhered to.

PVM has directors who delegate the running of PV to the PVRA who in turn appoint a
managing agent, Bright Willis (“BW”). PVM activities are generally restricted to an AGM.

PVM can dissolve the PVRA based on a 75% majority and reconstitute it should they so wish.

PVM is subject to annual audit.

The current directors of PVM are:

Mr RF Hall-Jones (Malvern Councillor/Leaseholder of PV) - Chairman
Mr B Major (Leaseholder of PV)
Revd B Stowe (Leaseholder of PV) – Revd B Stowe is also the secretary
Mrs E J Wiltshear (Leaseholder of PV)
Professor R Shearman (Leaseholder of PV)
Ms G Stephens (Leaseholder of PV)


                                              Page 5                                      JC 2007
Park View                                                     Business and Community Review




PARK VIEW RESIDENTS ASSOCIATION (“PVRA”)
The PVRA is governed by Rules and a Constitution as revised at the PVRA AGM of 8 July
2004.

These set out the:

   1. Name
   2. Aims
   3. Organisation
   4. Committee
   5. Meetings
   6. Voting
   7. Proxy Voting
   8. Finance
   9. Auditors
   10. Alterations to Rules and Constitution
   11. Complaints
   12. Winding Up

The PVRA committee is as follows:

Robert Homer (Chairman), Jill Lucas, Anna Spacey, Joan Murphy (Secretary), Jim Murphy
(Treasurer), Brian Perrett, Maisie Smith.

All are residents of PV with the exception of Maisie Smith.




                                           Page 6                                 JC 2007
Park View                                                          Business and Community Review




THE FINANCIALS
This review is not exhaustive and has been prepared principally on the basis of the accounts
and working sheets produced by the accountants, Kendall Wadley LLP (“KW”) and the BW
letters/Update file kept in the office in Centre Block.

Leaseholders may well require further financial and operational information from the PVRA
committee to address specific issues.

Park View Malvern Limited
PVN has assets of £13,500 relating to the notional value of the freeholds of the 44 flats at PV.
This figure does not change from year to year.

Park View Residents Association
Overview
KW produces annual un-audited accounts.

The scope of their remit is only to check income and expenditure to bank statements and
make basic suggestions regarding best practice.

They are not accountable for value for money issues, sufficiency of cash balances and the
quality of work undertaken by suppliers to Park View. Nor are they accountable for surveys
and the workings of the PVRA.

The Un-audited Accounts
KW produces a profit and loss account and balance sheet supported by notes to the accounts.

Redecoration expenditure is not shown in the P&L account but only as a balance sheet
movement supported by a breakdown in the notes to the accounts.

Budgets
These have been included since 2005 and are shown in the notes to the accounts.

The budgets cover Fund A and Fund B only but do not show any information as to how the
budget figures are arrived at.

Project Contracts
The accounts do not include any information as to quotations, guarantees, actual costs and
quality of work undertaken.




                                             Page 7                                     JC 2007
Park View                                                                                    Business and Community Review




THE PROFIT AND LOSS ACCOUNT
5-year results are shown below:

Park View Residents' Association Limited - Unaudited Profit & Loss Account


                                                2006   2005   2004   2003   2002                            Total    Average
                                             ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL                                      Per Year

                                             £ inc vat   £ inc vat   £ inc vat   £ inc vat   £ inc vat   £ inc vat   £ inc vat
INCOME
Service Charges                                61,067      70,050      67,717      72,577      66,441    337,852      67,570
Ground Rent                                     1,700       1,700       1,700       1,700       1,700      8,500       1,700
Lease Transfer Fees                               275         651           0         217         233      1,376         275
Bank Interst                                    2,417       1,718       1,329       1,527         774      7,765       1,553
Sundry Income                                       0           0       1,810           0       7,282      9,092       1,818
                                               65,459      74,119      72,556      76,021      76,430    364,585      72,917

EXPENDITURE
FUND A
Property
PV Building Common Parts Maintenance            2,916       1,367       3,856       3,550       2,477      14,166      2,833
PV Parking & Roads Maintenance                  1,026         115          92         353      12,584      14,170      2,834
Render Repairs                                      0           0       9,413       8,450           0      17,863      3,573
Garden Maintenance Contract                     4,024       3,907       2,502       3,871       3,998      18,302      3,660
Sundry Gardening Charges                          862         820           0           0           0       1,682        336
                                                                                                                           0
People Services                                                                                                            0
Bright Wills Management Charge                  4,071       4,168       3,877       4,071       3,878     20,065       4,013
Bright Willis Supervisory Fee Fund A              715           0         654           0           0      1,369         274
Survey Fees                                         0           0         852           0           0        852         170
Wages Handyman                                  2,398       2,645       2,332       2,187       1,792     11,354       2,271
Directors and Officers Indemnity Insurance        315         300         448           0           0      1,063         213
Employers Liability Insurance                     276         260           0           0           0        536         107
Accountants Fees                                1,410       1,351       1,851       1,116         964      6,692       1,338
Other Professional Fees                           347         378         317         403         636      2,081         416
                                               18,360      15,311      26,194      24,001      26,329    110,195      22,039

FUND B
PV Building Property Maintenance               20,971       5,565      46,667      12,391      16,895    102,489      20,498
Lift Contract and Sundry Lift Charges           2,452       4,484       2,714       2,333                 11,983
Bright Willis Supervisory Fee Fund B              846           0         877           0           0      1,723         345
Cleaners Wages                                  3,366       3,283       2,472       2,600       3,190     14,911       2,982
Window Cleaning                                     0       1,845       1,140       2,426       1,845      7,256       1,451
Building Insurance                              9,370       8,582       8,028       7,392       6,270     39,642       7,928
                                               37,005      23,759      61,898      27,142      28,200    178,004      33,204

SURPLUS/DEFICIT                                10,094      35,049    (15,536)      24,878      21,901      76,387     17,674

RECONCILIATION TO ACCOUNTS
2003 Render Repairs Restated                  (8,450)                               8,450                       0

SURPLUS/DEFICIT PER ACCOUNTS                    1,644      35,049    (15,536)      33,328      21,901      76,387


For the purposes of this report expenditure has been re-classified under Property and People
Services with additional costs centres being created to help in analysis. The majority of the
income accounts and cost centres are self-explanatory (with the exception of the maintenance
charges for Fund A and Fund B) but a brief review of each is noted on the following pages.



                                                            Page 8                                                      JC 2007
Park View                                                           Business and Community Review


INCOME

Service Charges
Service charges are those monies billed to each leaseholder to cover the running and
maintenance of Park View.

It is calculated based on rules set out in each owners lease. Each flat pays a fixed %
contribution to Fund A and B.

In simple terms a budget is produced by the managing agent that calculates planned
expenditure for the following year. The %’s are then applied against the relevant budgets.

The service charge is split between Fund A, Fund B and the Decoration Fund. The definition
of these is set out in the lease of each leaseholder. The lessor is Park View Malvern Limited.

Leases (Second Schedule & Eight Schedule Part One) refer to Fund A expenses as those
relating to the “Maintained Property”(MP). This covers common parts of the building as
follows:

     Private Roads, Parking Spaces, Amenity Areas
     Entrance Halls, Passages, Landing, Staircases, Lift, Machinery & Equipment, Laundry
      Room,
     Roofs, Gutters, Rainwater Pipes, Foundation Floors, All Walls bounding Individual
      Flats, External parts of the Building (but not glass), Tanks, Sewers, Drain Pipes, Cables,
      Wires, Ducts, Conduits and Aerials not solely used solely for the purpose of one flat
     Managing Agents Fees, Accountants Fees
     Insurance of Private Roads, Amenity Areas and Employers Liability Insurance

For the purposes of this report the above expenses are shown in the Profit & Loss account
under Fund A, Property and People Services.

The Decoration Fund covers the painting and maintenance of the outer shell of the building
and has been split from general Fund B expenses as it is the major expense and deemed to be
easier to manage as a separate item.

Leases (Eighth Schedule Part Two) refer to Fund B expenses as those relating to the
“Maintained Property”(MP) not covered by Fund A (i.e. Painting and Decorating the External
Walls of PV), general service costs and those expenses that can be attributable directly to each
wing. Specifically they are as follows:

     Painting and Decorating (Now Reclassified as the Decoration Fund (“DF”)).
     Insurance Premiums
     Cleaning external windows and internal windows of the MP, landings, entrance halls,
      passages
     Rubbish Removal, Rates
     Fire appliances, TV aerials



                                             Page 9                                       JC 2007
Park View                                                                                Business and Community Review


For the purposes of this report the above expenses are shown in the Profit & Loss account
under Fund B. (The DF is covered under Fund B in the lease – Check why is being allocated
under Fund A rules).

The breakdown of the 2006 service charges paid for each flat are set out below.

2006 Service Charge

Park View Residents' Association                    2006 Service Charge Contributions
                                                   DEC           FUND B      FUND B      FUND B      FUND B     TOTAL
                                       FUND A      FUND          SOUTH      CENTRE       NORTH         EAST PAYABLE
                                       BUDGET BUDGET            BUDGET      BUDGET      BUDGET      BUDGET
                                              2006      2006         2006        2006        2006        2006 PER FLAT
                                       £           £                    £           £           £           £          £
                                         23,635.00 10,002.00    10,033.00   19,718.00    6,344.00    1,330.00  71,062.00
                   Flat %'s Flat %'s
                    DF &
            Flat   FUND A FUND B
SOUTH        1      1.38%    8.50%         326.16      138.03      852.81                                        1,317.00
SOUTH        2      2.76%    9.50%         652.33      276.06      953.14                                        1,881.52
SOUTH        3      2.76%   10.25%         652.33      276.06    1,028.38                                        1,956.76
SOUTH        4      2.76%   10.25%         652.33      276.06    1,028.38                                        1,956.76
SOUTH        5      2.76%   10.25%         652.33      276.06    1,028.38                                        1,956.76
SOUTH        6      2.76%   10.25%         652.33      276.06    1,028.38                                        1,956.76
SOUTH        7      2.76%   10.25%         652.33      276.06    1,028.38                                        1,956.76
SOUTH        8      2.76%   10.25%         652.33      276.06    1,028.38                                        1,956.76
SOUTH        9      2.76%   10.25%         652.33      276.06    1,028.38                                        1,956.76
SOUTH       10      2.76%   10.25%         652.33      276.06    1,028.38                                        1,956.76
CENTRE      11      4.13%    7.25%         976.13      413.08   10,033.00    1,429.56                            2,818.76
CENTRE      12      2.76%    6.70%         652.33      276.06                1,321.11                            2,249.49
CENTRE      13      2.76%    5.90%         652.33      276.06                1,163.36                            2,091.74
CENTRE      14      2.76%    5.90%         652.33      276.06                1,163.36                            2,091.74
CENTRE      15      1.38%    3.75%         326.16      138.03                  739.43                            1,203.62
CENTRE      16      1.38%    3.25%         326.16      138.03                  640.84                            1,105.03
CENTRE      17      4.13%    8.75%         976.13      413.08                1,725.33                            3,114.53
CENTRE      18      2.76%    8.00%         652.33      276.06                1,577.44                            2,505.82
CENTRE      19      2.76%    5.90%         652.33      276.06                1,163.36                            2,091.74
CENTRE      20      2.76%    5.90%         652.33      276.06                1,163.36                            2,091.74
CENTRE      21      2.07%    3.95%         489.24      207.04                  778.86                            1,475.15
CENTRE      22      1.38%    3.25%         326.16      138.03                  640.84                            1,105.03
CENTRE      23      2.76%    5.90%         652.33      276.06                1,163.36                            2,091.74
CENTRE      24      2.76%    5.90%         652.33      276.06                1,163.36                            2,091.74
CENTRE      25      2.07%    3.95%         489.24      207.04                  778.86                            1,475.15
CENTRE      26      1.38%    3.25%         326.16      138.03                  640.84                            1,105.03
CENTRE      27      1.38%    3.25%         326.16      138.03                  640.84                            1,105.03
CENTRE      28      1.38%    3.25%         326.16      138.03                  640.84                            1,105.03
CENTRE      29      1.38%    2.75%         326.16      138.03                  542.25                            1,006.44
CENTRE      30      1.38%    3.25%         326.16      138.03                  640.84                            1,105.03
NORTH       31      4.13%   16.92%         976.13      413.08               19,718.00    1,073.40                2,462.61
NORTH       32      1.38%   11.15%         326.16      138.03                              707.36                1,171.55
NORTH       33      1.38%   10.15%         326.16      138.03                              643.92                1,108.11
NORTH       34      2.07%   13.16%         489.24      207.04                              834.87                1,531.16
NORTH       35      1.38%   10.15%         326.16      138.03                              643.92                1,108.11
NORTH       36      2.07%   14.16%         489.24      207.04                              898.31                1,594.60
NORTH       37      1.38%   10.15%         326.16      138.03                              643.92                1,108.11
NORTH       38      2.07%   14.16%         489.24      207.04                              898.31                1,594.60
EAST        39      3.45%   26.00%         815.41      345.07                            6,344.00      345.80    1,506.28
EAST        40      2.07%   18.00%         489.24      207.04                                          239.40      935.69
EAST        41      2.07%   15.00%         489.24      207.04                                          199.50      895.79
EAST        42      1.38%   12.00%         326.16      138.03                                          159.60      623.79
EAST        43      1.38%   12.00%         326.16      138.03                                          159.60      623.79
EAST        44      2.07%   17.00%         489.24      207.04                                          226.10      922.39
                    100%                   23,640      10,004                                        1,330.00   71,068.73




                                                         Page 10                                                   JC 2007
Park View                                                         Business and Community Review


The 2006 service charge billed to leaseholders reconciles to the service charge shown in the
profit and loss account as follows:

Balance per 2006 service charge computation on previous page:             £71,069

Decorating Fund (Not included in P&A account):                          (£10,002)
                                                                        ------------
Service Charge Income per P&L Account:                                    £61,067
                                                                        =======

(Difference of £2 is roundings)




                                           Page 11                                      JC 2007
Park View                                                                               Business and Community Review


The breakdown of the 2007 service charges paid for each flat are set out below.

2007 Service Charge

Park View Residents' Association                   2007 Service Charge Contributions
                                                        DEC      FUND B      FUND B       FUND B      FUND B    TOTAL
                                        FUND A         FUND      SOUTH      CENTRE        NORTH         EAST PAYABLE
                                       BUDGET       BUDGET      BUDGET      BUDGET       BUDGET      BUDGET
                                            2007        2007         2007       2007         2007        2007 PER FLAT
                                               £            £           £           £            £           £         £
                                       20,885.00    10,002.00    9,491.00   19,224.00     6,300.00    1,315.00 67,217.00
                   Flat %'s Flat %'s
                    DF &
            Flat   FUND A FUND B
SOUTH        1      1.38%    8.50%       288.21       138.03       806.74                                          1,232.98
SOUTH        2      2.76%    9.50%       576.43       276.06       901.65                                          1,754.13
SOUTH        3      2.76%   10.25%       576.43       276.06       972.83                                          1,825.31
SOUTH        4      2.76%   10.25%       576.43       276.06       972.83                                          1,825.31
SOUTH        5      2.76%   10.25%       576.43       276.06       972.83                                          1,825.31
SOUTH        6      2.76%   10.25%       576.43       276.06       972.83                                          1,825.31
SOUTH        7      2.76%   10.25%       576.43       276.06       972.83                                          1,825.31
SOUTH        8      2.76%   10.25%       576.43       276.06       972.83                                          1,825.31
SOUTH        9      2.76%   10.25%       576.43       276.06       972.83                                          1,825.31
SOUTH       10      2.76%   10.25%       576.43       276.06       972.83                                          1,825.31
CENTRE      11      4.13%    7.25%       862.55       413.08     9,491.00    1,393.74                              2,669.37
CENTRE      12      2.76%    6.70%       576.43       276.06                 1,288.01                              2,140.49
CENTRE      13      2.76%    5.90%       576.43       276.06                 1,134.22                              1,986.70
CENTRE      14      2.76%    5.90%       576.43       276.06                 1,134.22                              1,986.70
CENTRE      15      1.38%    3.75%       288.21       138.03                   720.90                              1,147.14
CENTRE      16      1.38%    3.25%       288.21       138.03                   624.78                              1,051.02
CENTRE      17      4.13%    8.75%       862.55       413.08                 1,682.10                              2,957.73
CENTRE      18      2.76%    8.00%       576.43       276.06                 1,537.92                              2,390.40
CENTRE      19      2.76%    5.90%       576.43       276.06                 1,134.22                              1,986.70
CENTRE      20      2.76%    5.90%       576.43       276.06                 1,134.22                              1,986.70
CENTRE      21      2.07%    3.95%       432.32       207.04                   759.35                              1,398.71
CENTRE      22      1.38%    3.25%       288.21       138.03                   624.78                              1,051.02
CENTRE      23      2.76%    5.90%       576.43       276.06                 1,134.22                              1,986.70
CENTRE      24      2.76%    5.90%       576.43       276.06                 1,134.22                              1,986.70
CENTRE      25      2.07%    3.95%       432.32       207.04                   759.35                              1,398.71
CENTRE      26      1.38%    3.25%       288.21       138.03                   624.78                              1,051.02
CENTRE      27      1.38%    3.25%       288.21       138.03                   624.78                              1,051.02
CENTRE      28      1.38%    3.25%       288.21       138.03                   624.78                              1,051.02
CENTRE      29      1.38%    2.75%       288.21       138.03                   528.66                                954.90
CENTRE      30      1.38%    3.25%       288.21       138.03                   624.78                              1,051.02
NORTH       31      4.13%   16.92%       862.55       413.08                19,224.00     1,065.96                 2,341.59
NORTH       32      1.38%   11.15%       288.21       138.03                                702.45                 1,128.69
NORTH       33      1.38%   10.15%       288.21       138.03                                639.45                 1,065.69
NORTH       34      2.07%   13.16%       432.32       207.04                                829.08                 1,468.44
NORTH       35      1.38%   10.15%       288.21       138.03                                639.45                 1,065.69
NORTH       36      2.07%   14.16%       432.32       207.04                                892.08                 1,531.44
NORTH       37      1.38%   10.15%       288.21       138.03                                639.45                 1,065.69
NORTH       38      2.07%   14.16%       432.32       207.04                                892.08                 1,531.44
EAST        39      3.45%   26.00%       720.53       345.07                              6,300.00      341.90     1,407.50
EAST        40      2.07%   18.00%       432.32       207.04                                            236.70       876.06
EAST        41      2.07%   15.00%       432.32       207.04                                            197.25       836.61
EAST        42      1.38%   12.00%       288.21       138.03                                            157.80       584.04
EAST        43      1.38%   12.00%       288.21       138.03                                            157.80       584.04
EAST        44      2.07%   17.00%       432.32       207.04                                            223.55       862.91
                    100%               20,889       10,004                                            1,315.00    67,223.18




                                                       Page 12                                                    JC 2007
Park View                                                         Business and Community Review


The service charge for 2007 has not been checked against actual figures used by BW and
assumes a DF contribution the same as 2006 of £10,002.

Ground Rent
These fees are charged to each apartment under the terms of the leases. It ranges from £35 to
£40 per flat. There are 44 flats.

Lease Transfer Fess
Every time an apartment is sold there is a charge made by PVM of 0.005% of the sale price.
This is set out in each owners lease.

Bank Interest
There are currently 14 banks accounts as noted on page 4 of the 2006 accounts. Some are
current and some are deposit.

There are 5 Fund B service charge accounts (1 general and 1 for each wing) and 4 Fund B
reserve accounts (1 for each wing)

Sundry Income
In 2004 South Wing residents made a contribution of £1,810 to cover planned one off
additional lift costs in 2005.

The 2002 figure of £7,282 is presumed to relate to insurance claims. This needs to be
checked.




                                           Page 13                                       JC 2007
Park View                                                           Business and Community Review


EXPENDITURE
The Decoration Fund expenditure is not included in the profit and loss account.

As has been already noted this report has changed the name of some cost centres and added
additional ones for a better understanding of the expenditure. This has not affected the total
expenditure figure.

Property and People Services Fund A

PV Building Common Parts Maintenance
2006 - £2,916/ PV Parking and Roads Maintenance 2006 - £1,026.

These relate to general maintenance work as detailed on page 3 of the notes to the accounts.

The total figure in the notes to the accounts of £13,106 is reconciled to these two figures as
follows:

PV Common Parts               £2,916
PV Parking                    £1026
Render Repairs                £8,450       (Shown in 2003)
Supervisory Fees              £750         (Shown under People Services)
                              ----------
                              £13,106
                              ======
The only significant cost over the last 5 years has been the new driveway that was laid in
2003 by M Walsh Engineering for a cost of £12,584 shown under PV Parking in 2002.

Render Repairs
2006 - £0. Major costs of £17,863 were spent in 2003/04. No supporting information was
available at this time.

Garden Maintenance Contract
2006 £4024 / Sundry Gardening Charges £862.

JG Hall is the contractor and currently charges £345.11 per month. No supporting information
was available at this time.

Bright Willis Management Charge
2006 - £4,071.

There is a management contract between the PVRA and BW signed 4 November 2004
effective 1 June 2004.

The BW management charge is based on a fee of £92.53 per flat per year. This equates to
£4,071 based on 44 flats. This rate was maintained for 2006.

The accounts also have a cost centre of management fees, which has been reclassified. They
do not relate to BW.

                                            Page 14                                      JC 2007
Park View                                                              Business and Community Review



Bright Willis Supervisory Fees
The management contract referred to above also includes an additional fee for the supervision
inspections of contracts over £5,000.

This is to cover a full specification and tendering procedure, appropriate supervision to ensure
satisfactory standards and settlement of accounts.

Fees earned by BW over the last 5 years are as follows:

Bright Wills Supervisory Fees

                               2006        2005        2004        2003        2002       Total

                           £ inc vat   £ inc vat   £ inc vat   £ inc vat   £ inc vat   £ inc vat

Fund A                          715           0          654          0           0       1,369
Fund B                          846           0          877          0           0       1,723
Decorating Fund               (715)         952        3,015      4,117           0       7,369
ICI Contract June 2006        6,827           0            0          0           0       6,827
                              7,673         952        4,547      4,117           0      17,289

The above figures have been extracted from the accounts with the exception of the ICI
contract, which has been based on 7.5% of John Carters quotation and is not part of the 2006
accounts.

This report has shown the supervisory fees as a separate item in Fund A, Fund B and the DF
although the accounts do not do that.

2006 £846
This relates to the new roof for South Wing and represents 7.5% of the total cost of £11,280
(£9,600 plus vat). This % should be 8.8125% according to the management contract. No
enquiries have been made as to this discrepancy. This point also applies to earlier charges.

2005 £952
This relates to painting of the North Block by John Carter and is 7.5% of the cost noted in the
accounts of £12,690.

2004 £4,547
Fund A charges of £654 relate to render repairs implying a total cost of £8,724 from John
Carter. No information has been seen to support the accuracy of this charge.

Fund B charges of £877 relate to work done on re-leading the South Wing Roof (£229.13),
damp proofing work in Centre Block (£528.75) and the re-decoration of the basement area
(£118.97).




                                             Page 15                                          JC 2007
Park View                                                            Business and Community Review


The DF supervisory charge of £3,015 relates to the following:

Painting Building                           £1,871.56
Scaffolding                                   £440.63
Painting Sills                                £259.53
Joinery /doors/Windows                        £398.34
Render                                         £45.39

No information has been seen to support the accuracy of these charges but it would appear
that the re-leading, damp proofing, Sill, Joinery and Render charges maybe in breach of the
management contract.

2003 £4,117
No information has been seen to support the accuracy of this charge.

Survey Fees
2006 - £0. The only survey identified in the accounts over the last 5 years relates to a lateral
restraint survey carried out by Shire Consulting in 2004 relating to cracks at Flat 31.

John Carter also made a charge of £176.25 in 2004 noted as work with structural engineer re
survey. No information has been seen to support the accuracy of this charge.

Wages Handyman
2006 - £2,398. No comment

Directors and Officers Indemnity Insurance
2006 - £315. Presumed to relate to the directors of PVM Limited. No comment

Employers Liability Insurance
2006 - £276. To cover liability against contractors working at PV.

Accountants Fees
2006 - £1,410. Relates to Kendal Wadley.

Other Professional Fees
2006 - £347. Filing fee £30, petty cash £241 and water rates £376.

PV Building Property Maintenance
2006 - £20,971. The accounts show a figure of £24,269. This report has shown separately lift
charges of £2,452 and BW supervisory fees of £846.

This is the other significant cost centre along with the re-decoration fund. An analysis is
shown under the section “What Has the Money been Spent on”.

Lift Contract and Charges
2006 - £2452. Annual Contract for South Wing is £670.52 and £1,341.08 for Centre Block.
Respective insurance is £146.93 and £293.87




                                             Page 16                                      JC 2007
Park View                                                           Business and Community Review



Cleaners Wages
2006 - £3,366. No information has been seen to support the accuracy of this charge.

Window Cleaning
2006 - £0. Appears to have been discontinued. To be investigated.

Building Insurance
2006 - £9,370. This covers the site at 33 Abbey Road including the building (£6.8M),
Lessors’ Furnishings (£86,655), subsidence and loss of rent. Terrorism cover is not included.

This charge has increased by 50% in 5 years. This needs to be reviewed to ensure that PV is
getting good value for money.




                                           Page 17                                      JC 2007
Park View                                                                             Business and Community Review


THE DECORATION FUND
As already noted, this is not shown in the Profit and Loss account.

A summary is as follows:

Park View Residents' Association Limited

Decorating Fund Expenditure
                                                          2006         2005         2004         2003         Total
                                                       ACTUAL       ACTUAL       ACTUAL       ACTUAL

                                                        £ inc vat    £ inc vat    £ inc vat    £ inc vat   £ inc vat

EXPENDITURE

External Painting and Decoration
John Carter - South/North/Centre/East                     7,074       12,690       31,373       24,481      75,617
John Carter (Non VAT) - North/South/Centre/East           5,500            0            0       16,450      21,950
John Carter (Non VAT) - Windows/Doors                     2,500            0            0            0       2,500
John Carter - Domer Windows                                   0            0        1,116            0       1,116
                                                         15,074       12,690       32,489       40,931     101,183

Other Charges
John Carter - Render Repairs                                   0            0          429            0         429
John Carter - Sills                                          752            0        1,680            0           0
John Carter - Joinery                                          0            0        5,311            0           0
John Carter - Sundry                                       1,494            0        1,533        1,739       4,766
Thomson Seal                                                   0            0          629            0           0
                                                           2,246            0        9,582        1,739       5,195

Professional Fees
Bright Willis Supervisory Fees - Painting/Decoration       (715)          952        2,520        4,117       6,874
Bright Willis Supervisory Fees - Render Repairs                0            0           45            0          45
Bright Willis Supervisory Fees - French Doors                  0            0          398            0         398
Bright Willis Supervisory Fees - Windows/Sill                  0            0           52            0          52
                                                           (715)          952        3,015        4,117       7,369


TOTAL EXPENDITURE                                        16,604       13,642       45,086       46,787     113,747



The ICI remedial works are not included in the above figures.

The accounts for 2002 do not show a decoration charge but the cash balances for the
decoration fund over 2002 show a movement of £16,328. This movement has yet to be
investigated.

No information has been seen to support the accuracy of any of the decoration fund charges.




                                                       Page 18                                                  JC 2007
Park View                                                         Business and Community Review


Taxes
The PVRA do not pay tax and are not registered for VAT. No check has been made on
whether they need to be registered as part of this report.


BALANCE SHEET

The Balance at 31 December 2006 has debtors and prepayment, cash and creditors. For the
future, debtors and creditors should be analysed in the notes to the accounts between fund A
and B for budgeting purposes.

The cash balances of £101,626 are split as follows:

Park View Residents' Association

Cash Balances at 25 December 2006

Account Description              Wing        Bank                         £

Fund A Current Account           N/A         Barclays              7,260.25
Fund A Contingency Account       N/A         Barclays             21,114.91
Redecoration Account             N/A         Standard Life        16,341.10
Driveway Account                 N/A         Standard Life         8,201.02
Maintenace Account               N/A         Standard Life            53.84
Fund B Service Charge Account    N/A         Barclays              3,496.78
Fund B Service Charge Account    South       Barclays              2,238.71
Fund B Reserve Account           South       Barclays                  5.33
Fund B Service Charge Account    Centre      Barclays              2,652.65
Fund B Reserve Account           Centre      Barclays             12,541.23
Fund B Service Charge Account    North       Barclays              3,677.58
Fund B Reserve Account           North       Barclays              5,398.09
Fund B Service Charge Account    East        Barclays              1,253.96
Fund B Reserve Account           East        Barclays             14,096.53

Client account                   N/A         Bright Willis            63.27

Maintenance Reserve              N/A                               3,133.24

Petty Cash                                                            98.08

                                                                 101,626.57

As part of the budgeting and treasury function review, the number of bank accounts need to
be reduced and consideration given to only using one bank for all accounts.




                                           Page 19                                    JC 2007
Park View                                                           Business and Community Review


A suggested bank account structure is as follows:

Fund A Current Account
Fund A Deposit Account (To include Capital Projects and Emergency Funds)
Fund B South Wing Current Account
Fund B Centre Wing Current Account
Fund B North Wing Current Account
Fund B East Wing Current Account
Fund B General Deposit Account (To include Capital Projects and Emergency Funds)

The rationale for this comes from the budget review detailed later in this report.

The maintenance reserve of £3,133, according to the accountants, represents un-reconciled
differences between Bright Willis & Kendall Wadley in determining the cash position
when the PVRA funds were separated from Bright Willis' general client account during
2002/03. This needs to be addressed and monies transferred into one of the Fund A or B
accounts.

The Fund B Budget vs Actual review shown on page 8 of the 2005 notes to the accounts
raises the issue of the reasonability of the basis of billing tenants in advance and other
implications relevant to the Nine Schedule Part two of leases.




                                            Page 20                                     JC 2007
Park View                                                                     Business and Community Review




BUDGETS
Actuals against budget 2005/2006
Park View Residents' AssociationLimited                            Budgets to Actuals
                                                2006   2006    2006              2005   2005       2,005
                                             ACTUAL BUDGET Variance           ACTUAL BUDGET     Variance
                                                                                               to Budget
                                                   £          £          £          £        £         £
INCOME
Service Charges                                61,067                           70,050
Ground Rent                                     1,700      1,200       500       1,700    1,200      500
Lease Transfer Fees                               275                              651
Bank Interst                                    2,417                            1,718
Sundry Income                                       0                                0
                                               65,459      1,200       500      74,119    1,200      500
EXPENDITURE
FUND A
Property
Park View Building Property Maintenance         2,916      6,000     3,084       1,367    3,000    1,633
Park View Grounds Property Maintenance          1,026      2,600     1,574         115    5,600    5,485
Render Repairs                                      0      1,200     1,200           0        0        0
Garden Maintenance Contract                     4,024      4,000      (24)       3,907    4,000       93
Sundry Gardening Charges                          862      1,500       638         820    1,500      680

People Services
Bright Wills Management Charge                  4,071      4,275        204      4,168    4,275      107
Bright Willis Supervisory Fee                     715      1,000        285          0      500      500
Survey Fees                                         0          0          0          0        0        0
Wages Handyman                                  2,398      2,600        202      2,645    2,500    (145)
Directors and Officers Indemnity Insurance        315        350         35        300      400      100
Employers Laibility Insurance                     276                 (276)        260        0    (260)
Accountants Fees                                1,410      1,250      (160)      1,351    1,000    (351)
Other Professional Fees                           347         60      (287)        378       60    (318)
                                               18,360     24,835      6,475     15,311   22,835    7,524
FUND B
Park View Building Property Maintenace         20,971     18,875    (2,096)      5,565   28,350   22,785
Lift Contract and Sundry Lift Charges           2,452      2,750        298      4,484    3,500    (984)
Bright Willis Supervisory Fee Fund B              846          0      (846)          0        0        0
Cleaners Wages                                  3,366      4,200        834      3,283    3,960      677
Window Cleaning                                     0      2,100      2,100      1,845    1,600    (245)
Building Insurance                              9,370      9,500        130      8,582    9,000      418
                                               37,005     37,425        420     23,759   46,410   22,651

TOTAL VARIANCE                                                        7,395                       30,675

CONTINGENCY BUDGET (GENERAL)
Fund A                                                         0                          2,000
Decoration Fund                                           10,002                         10,002
Fund B                                                         0                              0
                                                          10,002                         12,002

TOTAL BUDGET                                              72,262                         81,247
Reconciled to accounts as:                                     £                              £
Fund A Budget                                             24,835                         24,835
Fund B Budget                                             37,425                         46,410
Decoration Fund                                           10,002                         10,002
                                                          72,262                         81,247




                                                Page 21                                              JC 2007
Park View                                                           Business and Community Review




Commentary on 2005 and 2006 Budgets

The 2005 results show a positive spend variance of £30,675 excluding the decorating fund.
Over 90% of this relates to underspend on the provisions for property maintenance as follows:

PV Building Common Parts Maintenance – Fund A
Budgeted £3,000 for repairs, spent £1,367
Budgeted £5,500 for driveway, spent £0

The driveway provision should have been starting in 2003.

PV Building Property Maintenance – Fund B
Budgeted £16,000 for repairs, £7,000 for re-roofing and £4,000 for parapet repairs. The
majority of this was against capital projects that should have been provided for in earlier
years.

The 2006 results are not as material but same issues apply.

The variances noted are due to poor budgeting and a lack of complete picture.

The decoration fund is not included!

The decorating fund budget for 2005 and 2006 was £20,000 and actual expenditure was over
£30,000.

Weaknesses in budgeting are as follows:

      No account is taken of opening cash balances
      No account is taken of opening debtor and creditor balances
      No supporting calculations back up capital projects
      Contingencies are guessed and are not based on a methodology
      No integrated budget is calculated prior to billing service charges
      Service charges made do not reflect reality and result in spiking




                                            Page 22                                     JC 2007
Park View                                                                                    Business and Community Review


BW 2007 Budget

Park View Residents' Association                                                      Budgets 2007

                                                                                      FUND A     FUND B
                                                                                                 TOTAL    SOUTH CENTRE      NORTH    EAST
                                                                                             £        £        £        £        £       £
Property
PV Building Common Parts Maintenance         Repairs 500/Contingency Repairs 2500       3,000
PV Parking & Roads Maintenance               Driveway Contingency 1500/lighting 200     1,700
Render Repairs
Garden Maintenance Contract                  Gardening & Tree Surgery                   5,750
Sundry Gardening Charges

People Services
Bright Wills Management Charge                                                          4,275
Bright Willis Supervisory Fee Fund A         999 yr leases charge                       3,000
Survey Fees
Wages Handyman                                                                          2,700
Directors and Officers Indemnity Insurance                                                350
Employers Liability Insurance
Accountants Fees                             Kendal Wadley                              1,250
Other Professional Fees                      Rates                                         60

FUND B
PV Building Property Maintenance             Contingency                                          6,450    1,000    4000      750     700
PV Building Property Maintenance             Parapet Repairs South/Centre                         3,205      705    2500
PV Building Property Maintenance             Internal Upgrade                                     6,000    2,500    1500     2000
PV Building Property Maintenance                                                                      0
Lift Contract and Sundry Lift Charges                                                             2,750     916     1834
Bright Willis Supervisory Fee Fund B                                                                  0
Cleaners Wages                                                                                    4,500    1,170    2,340     990
Window Cleaning                                                                                   2,300      575    1150      460     115
Building Insurance                                                                               10,000    2,500    5000     2000     500
Utilities                                    Gas/Electricity                                      1,125      125      900     100

                                                                                       22,085    36,330    9,491   19,224    6,300   1,315

Ground Rent                                                                            (1,200)

                                                                                       20,885    36,330




The above figures have been included in the recommended Fund A & B budgets shown on
pages 26 and 28 of this report.




                                                                Page 23                                                JC 2007
Park View                                                          Business and Community Review


Budgeting Methodology

The running of PV involves day-to-day operational expenses, general maintenance of the
buildings and grounds and specific capital projects. The first two categories are annual whilst
capital projects occur based on the life expectancy of the previous capital project carried out
as set-out in the insurance backed guarantee.

The budgets are used for raising monies off residents in advance to ensure that the PVRA has
sufficient money in the bank to pay for the running of the business of PV.

Existing budgets cover Fund A, Fund B and the decoration fund and the total of these is used
as a basis for billing residents an annual service charge, payable in 2 equal instalments (25
December and 25 June), each year.

The majority of the budget items are spent within 1 year whilst capital projects involve
accumulating monies over a period of years to cover individual expected costs of each project.

Current budgeting practices have been a bit haphazard and resulted in both under and over
provisions, as has been seen in South Wing (2006 Parapet Project) and East Wing (over
£15,000 in the fund at the end of 2006). In addition the variance analysis of actual to budget
for 2006 and 2005 shows large differences, which should not happen with accurate budgeting.

Best Practice

The treasurer is introducing new amortisation budgeting procedures, which will cover the
capital projects and will address the main concerns that have been identified to date over
spikes in leaseholders service charges.

The overall budget should show the following:

   Cash balance bought forward for each fund
   General Running Expenses for Fund A under 1 year
   Contingency provision Fund A against emergencies
   Capital Projects within 1 year Fund A
   Capital Projects over 1 Year Fund A
   General Running Expenses for Fund B under 1 year
   Contingency provision Fund B against emergencies
   Capital Projects within 1 year Fund B
   Capital Projects within 1 year Fund B
   General Crisis Fund

There are currently some 15 bank accounts. With tighter controls over financial analysis and
reporting there would not be a need for so many accounts.




                                            Page 24                                    JC 2007
Park View                                       Business and Community Review


Integrated Budgeting Process – “A Layman’s Guide”

                  START WITH OPENING


                      CASH BALANCES

                            ADD ON

            OPENING DEBTORS LESS CREDITORS

                           TAKE OFF

  FIXED EMERGENCY FUNDS AND PRIOR YEAR
       PROVISIONS OR CONTINGENCIES


            GIVES YOU AVAILABLE CASH BEFORE
                    SERVICE CHARGE

                           TAKE OFF

                 CURRENT YEAR BUDGET

   GIVES YOU SERVICE CHARGE REQUIRED TO
               MEET BUDGET



                               Page 25                              JC 2007
Park View                                                                             Business and Community Review


Recommended 2007 Fund A Budget

Park View Residents' Association                                Recommended 2007 Fund A Budget
FUND A RUNNING EXPENSES                                                                        Expenditure       Expenditure
                                                                                                     2007              2007
                                                                                                      New               BW
Property:
PV Building Common Parts Maintenance                                                                                     500
PV Parking & Roads Maintenance                                                                                           200
Render Repairs                                                                                           2,500
Garden Maintenance Contract                                                                                            4,141
Sundry Gardening Charges                                                                                               1,609
People Services
Bright Wills Management Charge                                                                                         4,275
Bright Willis Supervisory Fee Fund A                                                                                       0
Bright Willis 999 Lease Fees Fund A                                                                                    3,000
Survey Fees                                                                                              5,000
Wages Handyman                                                                                                         2,700
Directors and Officers Indemnity Insurance                                                                               350
Employers Liability Insurance                                                                             300
Audit Fees                                                                                                             1,250
Rates                                                                                                                     60
Other Professional Fees (Accountants/Lawyers)                                                         2,500
Contingency (44 flats@ £100 less ground rent of £1,700)                                               (100)            2,800
                                                                                                     10,200           20,885


FUND A CAPITAL PROJECTS                                               Project         Saving         Saved          Pro-Rata
(DEFINED AS PROPERTY PROJECTS OVER £2500)          Estimate             Year           Start          Prior         Provision
                                                                                       Year          Years              2007
                                                           £                                                                £
Fund A Capital Projects Under 1 Year
East Wing Stores                                       £4,000            2007           2007             2,500         1,500
Fund A Capital Projects Over 1 Year
Decoration Fund                                    £100,000              2014           2007                          14,286
Driveway                                            £15,000              2008           2005          8,000            7,000
                                                                                                     10,500           22,786




FUND A CONTINGENCY DEPOSIT BANK ACCOUNTS                                                                               Bank
                                                                                                                   25-Dec-07
Bank Accounts                                Type
Fund A Capital Projects                      Deposit            (Saved Prior Year Plus 2007 Provision)                33,286
Fund A Emergency Fund                        Deposit            (44 Flats @ £125 per flat)                             5,500



Figures in bold italic are in addition to the BW 2007 budget.

Pro-rata provisions should be calculated on a time period up to the year before the planned
spend. For example the 2007 decoration fund provision for 2007 is calculated up to 2013 with
the work planned in 2014. The provision for 2007 is £14,286 (£100,000 divided by 7 years).




                                                        Page 26                                                   JC 2007
Park View                                                          Business and Community Review


Contingencies should be based on a rationale rather than a guess figure. Preference should be
for specific projects based on a quote. For the purposes of this budget the contingency has
been set as £100 per flat giving a total of £4,400 less the ground rent contribution of £1,700.

Fund A Running Expenses: The bank balance should be assumed to be zero at the end of each
year. The budget includes some items detailed in the BW budget, adjustments based on a
review of cost centre spend levels over the last 5 years and actuals from current service
contracts. The £2,500 for render repairs is based on the fact there seems to be a continuous
need for this and the £2,500 for other professional fees is against possible further accountants
investigation work (Implementation of new controls and investigation of the 2007 budget
methodology) and possible legal advice over BW and bank accounts. The survey fees cover
the need for a survey of South, Centre and North wings.

Fund A Capital Projects: The bank balance at the end of the year should be the sum of the
pro-rata total provided against each project plus prior year savings. Prior year budgets have
provided against East Wing Stores and the Driveway.

Fund A Emergency: This has been a set at a fixed figure of £5,500 (£125 per flat) and should
not change from year to year.
.




                                            Page 27                                     JC 2007
Park View                                                                                              Business and Community Review


Recommended 2007 Fund B Budget

Park View Residents' Association                                      Recommended 2007 Fund B Budget
FUND B RUNNING EXPENSES                     Description                                  South (10)     Centre (20)      North (8)        East (6)         Total
                                                                                        Expenditure    Expenditure    Expenditure    Expenditure     Expenditure
                                                                                               2007           2007            2007           2007          2007
                                                                                                  £               £              £              £             £

PV Building Property Maintenance            Parapet Repairs                                    705          2,500                                         3,205
PV Building Property Maintenance            Internal Upgrade                                     0          1,500           2,000                         3,500
Lift Contract and Sundry Lift Charges                                                          916          1,834                                         2,750
Bright Willis Supervisory Fee Fund B                                                             0              0               0              0              0
Cleaners Wages                                                                               1,170          2,340             990              0          4,500
Window Cleaning                                                                                575          1,150             460            115          2,300
Building Insurance                                                                           2,500          5,000           2,000            500         10,000
Utilities                                                                                      125            900             100                         1,125
Contingency (£100 per flat)                                                                  1,000          2,000            800            600           4,400
                                                                                             6,991         17,224           6,350          1,215         31,780


FUND B CAPITAL PROJECTS                                                Saving   Saved    South (10)     Centre (20)      North (8)        East (6)         Total
(DEFINED AS PROPERTY PROJECTS OVER £2500)                 Project       Start   Prior     Pro-Rata        Pro-Rata       Pro-Rata       Pro-Rata Expenditure/
                                             Estimate       Year        Year    Years     Provision      Provision       Provision      Provision      Provision
                                                                                               2007           2007            2007           2007          2007
                                                      £                                           £               £              £              £             £
Fund B Capital Projects Under 1 Year


Fund B Capital Projects Over 1 Year
East Wing Flat Roof                          £22,500           2017      2002   9,000                                                      1,500         10,500
South Wing Flat Roof                         £15,000           2028      2008                     0                                                           0
Joinery & Wood Painting Centre Wing           £2,500           2010      2007                                 833                                           833
Joinery & Wood Painting East Wing             £2,500           2010      2007                                                               833             833
                                                                                9,000             0            833               0         2,333         12,167


FUND B EMERGENCY FUND                                                                         South         Centre          North            East
(Based on £250 per flat)                                                                  Provision      Provision       Provision      Provision
                                                                                        Flats 1 to 10 Flats 11 to 30 Flats 31 to 38 Flats 39 to 44
                                                                                                  £               £              £              £

Fund B Emergency Budget                                                                      2,500          5,000          2,000           1,500



FUND B BANK ACCOUNTS                                                                     South (10)     Centre (20)      North (8)        East (6)         Total
                                                                                              Bank            Bank           Bank           Bank           Bank
                                                                                          25-Dec-07      25-Dec-07      25-Dec-07      25-Dec-07       25-Dec-07
                                                                                                   £              £              £              £
Bank Accounts                               Type
Fund B Capital Projects                     Deposit                                              0             833              0         11,333         12,167
Fund B Emergency Fund                       Deposit                                          2,500           5,000          2,000          1,500         11,000




Figures in bold italic are in addition to the BW 2007 budget.

Fund B budgets have been produced on a similar basis to Fund A. They are a little more
complicated as residents only pay for costs relating to their own wings.




                                                                  Page 28                                                                  JC 2007
Park View                                                          Business and Community Review


 Pro-rata provisions should be calculated on a time period up to the year before the planned
spend. For example the 2007 decoration fund provision for 2007 is calculated up to 2013 with
the work planned in 2014. The provision for 2007 is £17,143 (£120,000 divided by 7 years)
and 2008 £34,285.

Contingencies should be based on a rationale rather than a guess figure. Preference should be
for specific projects based on a quote. For the purposes of this budget the running expense
contingency has been set as £250 per flat giving a total of £11,000. This figure should
decrease once a detailed survey has been carried out, as costs will be transferred into capital
projects.

Fund B Running Expenses: The bank balance should be assumed to be zero at the end of each
year.

Fund B Capital Projects: The Bank balance at the end of the year should be the sum of the
pro-rata total provided against each project plus accumulated provisions.

Fund B Emergency: This has been a set at a fixed figure of £11,000 (£250 per flat) and should
not change from year to year.

Therefore this budget shows that lease contributions for Fund B for 2007 should be
£13, 686 and not the figure raised of £36,330 set by BW.

Based on these contributions, Fund B bank balances at the end of 2007 are estimated as
follows:

Fund B Running Expenses:                    £0
Fund B Capital Projects:                £7,167
Fund B Emergency:                      £11,000

It is recommended that to ensure costs are actually allocated against wings there should be
current accounts for each wing and one deposit account for all the wings.




                                            Page 29                                    JC 2007
Park View                                                                                 Business and Community Review


2007 Recommended Integrated Budget
Using existing cash balances at 31 December 2006, 2007 service charge income and 2007
budgets it is possible to computate expected surpluses and deficits on Fund A and B accounts
as follows:
What does this mean?
Park View Residents' Association

Service Charge Sufficiency and Projected Cash Surplus/Deficit

CASH BALANCES                                     Total    Fund A     Fund B    Fund B    Fund B     Fund B    Fund B     Other
                                                                      General    South    Centre      North      East
Summarised as:                                        £          £          £        £         £          £         £          £

Fund A                                           52,917     52,917
Fund B                                           45,361                 3,497    2,244     15,194     9,076     15,350
Other                                             3,348                                                                    3,348
Cash Balances as at 31 December 2006            101,627     52,917      3,497    2,244     15,194     9,076     15,350     3,348

Debtors less Creditors @ 25 Dec 2006              7,524                                                                    7,524

less:
Emergency Fund A                                 (5,500)    (5,500)
Emergency Fund B                                (11,000)                        (2,500)    (5,000)   (2,000)    (1,500)
Prior Year Provisions Fund A                    (10,500)   (10,500)
Prior Year Provisions Fund B                     (9,000)                                                        (9,000)
                                                (36,000)   (16,000)        0    (2,500)    (5,000)   (2,000)   (10,500)        0

Cash available before 2007 Service Charge        73,151     36,917      3,497    (256)     10,194     7,076      4,850    10,872

ACTUAL INCOME
Service Charge 2007                    Dec-06    33,612     15,447               4,746      9,612     3,150        658
Service Charge 2007                    Jun-07    33,612     15,447               4,746      9,612     3,150        658
                                                 67,223     30,893         0     9,491     19,224     6,300      1,315         0

Total Cash Available before
2007 Expenditure and Provisions                 140,374     67,810      3,497    9,235     29,418    13,376      6,165    10,872


BUDGETED EXPENDITURE
Fund A Running Expenses                         (31,085)   (31,085)
Fund A Capital Projects                         (22,786)   (22,786)

Fund B Running Expenses                         (31,780)                        (6,991)   (17,224)   (6,350)    (1,215)
Fund B Capital Projects                          (3,167)                              0      (833)         0    (2,333)

Surplus Cash 31 December 2007                    51,556     13,940      3,497    2,244     11,361     7,026      2,617    10,872


In simple terms the above integrated budget schedule shows surplus cash to requirements of
£51,556!

This report has only skimmed the surface of prior year budgets and possible capital projects
and these need to be accurately identified based on quotations before a view on cash surpluses
can be taken and 2008 service charge levels set.

The treasurer will undertake a detailed review of budgets and represent a revised 2007
version.



                                                           Page 30                                                  JC 2007
Park View                                                                       Business and Community Review


WHAT HAS THE MONEY BEEN SPENT ON?
The next 5 pages show both a 5-year and annual breakdowns of expenditure.
5 Year Expenditure
                                                                 TOTAL Fund B Fund B Fund B Fund B            % of
WHAT THE MONEY HAS BEEN SPENT ON - 2002 to 2006                  SPEND  South Centre  North   East           Total
                                                             £       £      £      £      £      £           Spend
Decoration Fund:
Painting of Building                       2002-2006   101,440                                               24.7%
General Maintenance of Building            2002-2006     2,541                                                0.6%
Sills Repairs                              2002-2006     2,631                                                0.6%
Render Repairs                             2002-2006       840                                                0.2%
Windows & Doors                            2002-2006     7,709                                                1.9%
Bright Willis Supervisory Fees             2002-2006     7,369                                                1.8%
                                                                 122,530                                     29.8%


Major Fund A Projects
Tarmacadam of Drive                          2002       12,584                                                3.1%
Render Repairs of Building                 2002-2006    19,085                                                4.6%
Fire Extinguishers                         2002-2006     1,295                                                0.3%
External Lighting                          2002-2006     1,710                                                0.4%
Bright Wills Supervision Fees              2003-2004     1,369                                                0.3%
                                                                  36,043                                      8.8%


Balance of Fund A Property Maintenance     2002-2006              11,525                                      2.8%


Major Fund B Projects
New Downpipes & Rainwater Heads            2002-2006     7,078              2,086    2,282   2,564     146    1.7%
Water Damage                               2002-2006     2,732                  0    2,174       0     558    0.7%
Windows and Doors                          2002-2006     4,366              1,690      564   1,786     326    1.1%
Felt Repairs                               2002-2006     1,746                  0    1,746       0       0    0.4%
Chimney Repairs                            2002-2006     1,680                  0    1,680       0       0    0.4%
Lintels                                    2002-2006       399                  0        0       0     399    0.1%
Cornice Repairs                            2002-2006    10,255              3,675    5,840       0     740    2.5%
Boiler Repairs and Service                 2002-2006     3,200                  0    3,200       0       0    0.8%
Redecoration & Repairs                     2002-2006     5,287                  0    3,963   1,232      92    1.3%
Leading/Rendering Coping Stones/Parapets   2002-2006    17,475             11,507    5,663     305       0    4.3%
Roof Repairs                               2002-2006    13,119             12,208      911       0       0    3.2%
Timber/Dry Rot Cleaner Rooms & Stores      2002-2006     9,673                  0    9,673       0       0    2.4%
Damp-proofing                              2002-2006     9,013                  0    9,013       0       0    2.2%
Entrance Porch                             2002-2006     1,586                  0    1,586       0       0    0.4%
Bright Willis Supervision Fees             2002-2006     1,723              1,075      648       0       0    0.4%
                                                                  89,331   32,241   48,943   5,887   2,260   21.7%


Balance of Fund B Property Maintenance     2002-2006              14,881                                      3.6%


Service Contracts:
Bright Willis                              2002-2006    20,065                                                4.9%
Lifts                                      2002-2006    11,983                                                2.9%
Garden - J Hall et al                      2002-2006    19,984                                                4.9%
Cleaning                                   2002-2006    22,167                                                5.4%
Handyman                                   2002-2006    11,354                                                2.8%
Directors/Public Liability Insurance       2004-2006     1,599                                                0.4%
Building Insurance                         2002-2006    39,642                                                9.7%
Survey Fees                                2002-2006       852                                                0.2%
Accountants & Other Professional Fees      2002-2006     8,773                                                2.1%
                                                                 136,419                                     33.2%


                                                                 410,728




                                                   Page 31                                               JC 2007
Park View                                                     Business and Community Review


2002 Expenditure


                                                             TOTAL Fund B Fund B Fund B Fund B
WHAT THE MONEY HAS BEEN SPENT ON - 2002                      SPEND  South Centre  North   East
                                                        £        £      £      £      £      £
Decoration Fund:
Painting of Building                                    0
General Maintenance of Building                         0
                                                                  0

Major Fund A Projects
Tarmacadam of Drive                                  12584
Render Repairs of Building                             441
                                                              13,025

Balance of Fund A Property Maintenance                         2,036

Major Fund B Projects
Water Damage                                         2,732                     2,174          558
Windows and Doors                                    1,690             1,690
Leading/Rendering Coping Stones/Parapets             4,300               540   3,760
Roof Repairs                                         1,440               529     911
                                                              10,162   2,759   6,845      0   558

Balance of Fund B Property Maintenance                         6,733

Service Contracts:
Bright Willis                                        3,878
Lifts                                                    0
Garden - J Hall et al                                3,998
Cleaning                                             5,035
Handyman                                             1,792
Building Insurance                                   6,270
Accountants & Other Professional Fees                1,600
                                                              22,573

                                                              54,529




                                           Page 32                                 JC 2007
Park View                                                       Business and Community Review


2003 Expenditure

                                                              TOTAL Fund B Fund B Fund B Fund B
WHAT THE MONEY HAS BEEN SPENT ON - 2003                       SPEND  South Centre  North   East
                                                         £        £      £      £      £      £
Decoration Fund:
Painting of Building                                 40,931
General Maintenance of Building                       1,739
Bright Willis Supervisory Fees                        3,402
                                                               46,072

Major Fund A Projects
Render Repairs of Building                            8,450
Fire Extingusihers                                    1,133
Bright Wills Supervision Fees                           715
                                                               10,298

Balance of Fund A Property Maintenance                          2,770

Major Fund B Projects
New Downpipes & Rainwater Heads                       2,993              555    1,789       649
Boiler Repairs and Service                            3,200                     3,200
Lintels                                                 399                                         399
Leading/Rendering Coping Stones/Parapets              4,282             2,702   1,580
Roof Repairs                                            329               329
                                                               11,203   3,586   6,569       649     399

Balance of Fund B Property Maintenance                          1,188

Service Contracts:
Bright Willis                                         4,071
Lifts                                                 2,333
Garden - J Hall et al                                 3,871
Cleaning                                              5,026
Handyman                                              2,187
Building Insurance                                    7,392
Accountants & Other Professional Fees                 1,519
                                                               26,399

                                                               97,930




                                           Page 33                                       JC 2007
Park View                                                         Business and Community Review


2004 Expenditure

                                                              TOTAL Fund B Fund B Fund B Fund B
WHAT THE MONEY HAS BEEN SPENT ON - 2004                       SPEND  South Centre  North   East
                                                         £        £      £      £      £      £
Decoration Fund:
Painting of Building                                 32,488
General Maintenance of Building                         630
Sills Repairs                                         1,679
Render Repairs                                          429
Windows & Doors                                       6,845
Bright Willis Supervisory Fees                        3,015
                                                               45,086

Major Fund A Projects
Render Repairs of Building                            9,413
External Lighting                                     1,201
Bright Wills Supervision Fees                           654
                                                               11,268

Balance of Fund A Property Maintenance                          2,747

Major Fund B Projects
New Downpipes & Rainwater Heads                       3,592              1,531             1,915      146
Chimney Repairs                                       1,680                       1,680
Timber/Dry Rot Cleaner Rooms & Stores                 9,673                       9,673
Damp Proofing                                         9,013                       9,013
Cornice Repairs                                       5,790               150     5,640
Windows and Doors                                     1,886                           0    1,786      100
Redecoration & Repairs                                2,819                       2,273      546
Leading/Rendering Coping Stones/Parapets              8,570              8,265               305
Bright Willis Supervision Fees                          877                229      648
                                                               43,900   10,175   28,927    4,552      246

Balance of Fund B Property Maintenance                          3,644

Service Contracts:
Bright Willis                                         3,877
Lifts                                                 2,714
Garden - J Hall et al                                 2,502
Cleaning                                              3,612
Handyman                                              2,332
Directors/Public Liability Insurance                    448
Building Insurance                                    8,028
Survey Fees                                             852
Accountants & Other Professional Fees                 2,168
                                                               26,533

                                                              133,178




                                           Page 34                                         JC 2007
Park View                                                       Business and Community Review


2005 Expenditure

                                                             TOTAL Fund B Fund B Fund B Fund B
  WHAT THE MONEY HAS BEEN SPENT ON - 2005                    SPEND South Centre North      East
                                                           £     £   £      £      £      £
  Decoration Fund:
  Painting of Building                                 12,690
  Render Repairs                                          411
  Bright Willis Supervisory Fees                          952
                                                                14,053

  Major Fund A Projects
  Render Repairs of Building                             135
  Fire Extinguishers                                      81
  External Lighting                                      100
                                                                  316

  Balance of Fund A Property Maintenance                         1,166

  Major Fund B Projects
  New Downpipes & Rainwater Heads                         493                     493
  Windows and Doors                                       564                     564
  Redecoration & Repairs                                2,376                   1,690     686
  Leading/Rendering Coping Stones/Parapets                323                     323
  Roof Repairs                                             70              70
                                                                 3,826     70   3,070     686   0

  Balance of Fund B Property Maintenance                         1,739

  Service Contracts:
  Bright Willis                                         4,168
  Lifts                                                 4,484
  Garden - J Hall et al                                 4,727
  Cleaning                                              5,128
  Handyman                                              2,645
  Directors/Public Liability Insurance                    560
  Building Insurance                                    8,582
  Accountants & Other Professional Fees                 1,729
                                                                32,023

                                                                53,123




                                             Page 35                                JC 2007
Park View                                                          Business and Community Review


2006 Expenditure

                                                              TOTAL Fund B Fund B Fund B Fund B
WHAT THE MONEY HAS BEEN SPENT ON - 2006                       SPEND   South Centre  North   East
                                                          £       £    £     £       £     £

Decoration Fund:
Painting of Building                                 15,331
General Maintenance of Building                         172
Sills Repairs                                           952
Render Repairs                                            0
Windows & Doors                                         864
                                                               17,319

Major Fund A Projects
Render Repairs of Building                              646
Fire Extinguishers                                       81
External Lighting                                       409
                                                                1,136

Balance of Fund A Property Maintenance                          2,806

Major Fund B Projects
Cornice Repairs                                       4,465              3,525     200               740
Felt Repairs                                          1,746                      1,746
Entrance Porch                                        1,586                      1,586
Windows and Doors                                       226                                          226
Redecoration & Repairs                                   92                                           92
Roof Repairs                                         11,280             11,280
Bright Willis Supervision Fees                          846                846
                                                               20,240   15,651   3,532      0   1,057

Balance of Fund B Property Maintenance                          1,577

Service Contracts:
Bright Willis                                         4,071
Lifts                                                 2,452
Garden - J Hall et al                                 4,886
Cleaning                                              3,366
Handyman                                              2,398
Directors/Public Liability Insurance                    591
Building Insurance                                    9,370
Accountants & Other Professional Fees                 1,757
                                                               28,891

                                                               71,968



All of the above expenditure analysis reconciles to the un-audited accounts. The description
of expenditure has been sourced from the notes to the accounts.




                                           Page 36                                        JC 2007
Park View                                                         Business and Community Review




OPERATIONAL REVIEW
The running of PV has been delegated by PVM to the PVRA and its managing agent Bright
Willis.

A review of the correspondence file (noted as BW letters/Updates) of workings of the PV
business over the last three years indicates while a huge amount of time is spent by the
committee, individual residents and BW it seems to take a long time before anything is done.

The correspondence supports the conclusion that efforts are well intentioned by all concerned
but the process seems slow and convoluted. BW writes a huge number of letters to all and
sundry but there is no structure and as a result it is very hard to keep a handle on what is
going on.

A review of the East Wing Stores process is a good example.

East Wing Stores (“EWS”)
Minutes of PVRA, 27 October 2005, have a BW comment that EWS are part on the
communal property, a Fund A expense and that the removal of the asbestos roof would be
costly. It was agreed that the PVRA chairman would take over this project (No fee to BW)
And BW suggested a sum of £3,000 to be budgeted to the contingency fund.

The 2006 budget prepared by BW in late 2005, showed a figure of £2,500 as contingency.
This was reviewed and approved in a PVRA budget meeting on 2 December 2005.

Flat 39 writes to PVRA secretary, 16 January 2006, asking if East Wing residents can
purchase the stores

BW replies to PVRA secretary, 23 January 2006, with a very detailed explanation of why this
is not possible

PVRA meeting, 26 January 2006, noted that Chairman had a quote for £1,500 for asbestos
roof removal. It was agreed that BW and Chairman would continue to examine matter and
report back.

BW writes to Flat 39, 1 February 2006 with a condensed version of the letter sent to the
PVRA secretary.

BW writes to PVRA secretary, 6 February 2006, confirming that permission was not granted
to flat 39 to purchase the stores

Flat 10 writes to BW over storage areas in general in February 2006

BW writes to Flat 10 with general comments on storage, 1 March 2006, and addresses the
East Wing Stores with the recommendation that the roofs be replaced and used for a better
purpose


                                           Page 37                                    JC 2007
Park View                                                           Business and Community Review


PVRA meeting, 21 March 2006, agreed that the EWS project was a priority. Chairman/BW to
get quotations for the cost of re-roofing.

PVRA meeting, 30 March 2006, again agreed that quotations should be sought for roof
replacement. BW warned that this would be expensive. BW reiterated that residents should be
given opportunity to identify and dispose of items in the various storage areas. Agreed that an
inventory of each storage area required so that BW could ask residents to reduce levels stored.

BW writes to Flat 10, 7 April 2006, over the storage issue acknowledging that the storage is a
sensitive issue and recommending that any regulations regarding storage should be in the PV
Handbook

The AGM of 26 May made no reference to the 2006 budget.

Minutes of PVRA meetings were reviewed up to 28 September and the EWS was not
mentioned. Minutes after this date were not in the file but it is presumed that further
discussions took place.

A letter is sent to all leaseholders and residents, 27 February 2007, detailing health and safety
legislation regarding Asbestos Containing Materials (“ACM”) stating that EWS must be
cleared by end of March 2007.

During March and April there is much confusion and anxiety expressed by EW residents and
numerous letters and emails were exchanged with BW.

The project has now drifted and plans uncertain.

Facts:

The asbestos roof needs to be removed
The cost of removal is likely to be under £1,000 (based on a quote obtained by flat 40)
The contingency of £2,500 set out in 2006 budget was incorrect and excessive and resulted in
residents paying more than needed into contingency funds
The process has caused much confusion and anxiety to EW residents

Conclusions
The process of project managing the EWS has been unsatisfactory both from a business and
community viewpoint. Project process now being taken on by treasurer.

Recommendation Options
   1. Remove roof and replace with tiled roof/upgrade wooden slated fronts in second half
      of 2007 (Cost Estimate £4,000)
   2. Review project in 2007 and implement in 2008




                                             Page 38                                     JC 2007
Park View                                                          Business and Community Review


Annual Contracts
There are a number in existence as follows:

Bright Willis (“BW”) Management Contract
J Hall Gardening Contract
Lift Contracts for South and Centre Blocks
Insurance Contracts (Building, Employers Liability, Professional Indemnity)
Wages Handyman
Accountants
Cleaners

BW contract has been a contract effective 1 June 2004 signed 4 November 2004 by Chairman
of PVRA and BW. Management fee is £78.75 plus vat per flat (44 flats) plus 7.5% plus vat
for contracts with a cumulative price over £5,000 to cover extra work for large projects.
Termination, by either party, requires 3 calendar months written notice.

The insurance contracts are managed by Clarke Roxburgh Insurance Brokers of Malvern.
The building insurance cover runs from 25 December 2006 to 25 December 2007 (premium
was paid in December 2006), as does the employer liability insurance. Directors and Officers
Insurance runs from 17 April to 16 April.

No other current contracts were available from records seen.

Contractors
The PVRA and BW are entitled to use any contractor deemed suitable.

Over the last five years the following contractors have been used for significant projects over
£5,000 per annum.

John Carter – General Building Contractor (2002 – 2006)
Avenir Roofing – South Wing Roof (2006)
M Walsh Engineering – Tarmac Drive (2003)
ICI – Painting (2006)
Dri-Wall services – Dry-rot and Damp proofing (2004)

John Carter has been used for over 90% of the work carried out over the last 5 years totalling
in excess of £350,000

Specifications and Quotations
No written evidence was obtained relating to any detailed specifications.

Quotes have been seen for Avenir Roofing and the 2006 ICI contract only.

The EWS project has been covered previously with no specification or quotation provided
although work was to commence in April 2006.



                                              Page 39                                  JC 2007
Park View                                                          Business and Community Review


Project Costing and Evaluation
There are none.

Guarantees
These come in the form of contractor guarantees and insurance backed guarantees, should the
contractor guarantee be irrecoverable.

The only insurance back guarantee sighted was for the Avenir Roof work and it was in the
name of Roger Young of BW.

Standard of Work Done
BW is responsible for inspecting the quality of the work done and ensuring it is to a high
standard.

There is no written evidence from BW that this is done.


East Wing Examples
     The specification and quotation process for the East Wing September 2006 woodwork
      re-decoration was based on a single figure of £2,500 from John Carter as follows:
      “To re-paint all windows and French doors, woodwork to be rubbed down, spot primed,
      undercoated and glossed in dulux weathershield exterior”

The window frame to flat 40 is rotten and was painted over. Work was done in 2003 on same
window frame.

     Bitchmastic painting by John Carter in December 2006 to EW maisonettes (external
      skirting) of poor standard. Cost £78 plus vat.

Maintenance of Maintained Parts
There is evidence that the maintained parts are not kept to a high standard.

East Wing Examples
     The Flagstones have not be cleaned in 5 years (except by residents)
     Concrete breaking up around flagstones and external skirting
     Damp proofing

Surveys
There have been two surveys done on PV in the last five years. Shire Consulting in 2003 on
flat 31. Advice had been taken from the insurance loss adjusters, Cunningham Lindsey. The
second survey was by JGP Associates in 2002 on East Wing.




                                            Page 40                                    JC 2007
Park View                                                          Business and Community Review


BRIGHT WILLIS (“BW”)
Bright Willis are estate managers based in Birmingham. The managing director is Roger
Young. They have been the managing agents of PV for over 15 years. Roger Young manages
all work carried out on PV. No other BW manager is involved although reference is made to a
Helen Partridge in a letter to Robert Homer from BW of 17 August 2005.

The work undertaken in preparing this report has highlighted concerns over the service
provided by BW over the last five years both as a managing agent generally and in relation to
their management contract between BW and the PVRA.

The key areas identified are as follows:


     The budgets produced are unstructured and unsubstantiated leading to incorrect monies
      being raised from leaseholders

 Lack of project and financial information on any work undertaken
 No written evidence of supervisory work
 Incomplete justification of supervisory fees billed
 Reliance on one-man band (John Carter) as major contractor
    No supporting documentation to work carried out by John Carter
    No guarantees available from John Carter
     No project (operational and financial) information on John Carter/ICI paint contracts

     Unsatisfactory working relationship between BW and PVRA/Leaseholders
    Not responding to on a timely basis to PVRA/residents queries
    Operating on the basis of a BW agenda rather than a PVRA agenda with a
   confrontational “I am in charge” attitude to PV and its residents




                                            Page 41                                    JC 2007
Park View                                                        Business and Community Review




RECOMMENDATIONS
Pre AGM 21 June 2007
    Consider need for a Building Survey and a Health and Safety Survey to be undertaken
     by qualified contractor. No major projects should be undertaken until this is complete

    2007 Budgets to be reviewed and recalculated based on supporting documentation

    For KW to review and agree new budget processes

    PVRA to implement new project processes

    BW/PVRA to obtain a complete operational and financial picture of painting contracts
     over last 5 years

    PVRA to implement more inclusive and transparent process with residents over major
     projects

    To review the position of BW as managing agent


Post AGM 2007
    John Carter to be used less and to redo substandard work already carried out

    All written communication between the managing agent (“MA”) and residents should
     be copied into treasurer

    Communication between MA and residents should be via an onsite surgery

    All contracts awarded over £500 to be supported by a quote and detailed specification.
     Invoices to have these attached prior to payment

    All contracts under £500 to be supported by worksheets detailing hours spent, hourly
     rate and materials charged. Invoices to have these attached prior to payment

    Redesign accounts to include decoration fund in profit and loss account and make cost
     centres more transparent

    Review best way to use accountants. Notes to the balance sheet need to be more
     detailed.

    Review treasury function.




                                          Page 42                                    JC 2007

				
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