Accounting Principles & Procedures

Question 1

What are you rent KPIs? You said earlier 95% collection on Day 21, but it says 98% collection here?

Answer 1

We aim to exceed our KPIs and aim for 98% collection on day 21, although our KPI is 95%.

Question 2

Talk me through how you report on rent arrears and rent collection during quarter periods

Answer 2

We run arrears reports every week after the quarter date and update comments. We then hold meetings with the Client to update them and if necessary, recommend CRAR.

Question 3

Talk me through how you raise demands in Accordance with RICS Real Estate Management professional statement

Answer 3

Ensure they are issued in a timely manner and are clear and understandable. Also include relevant taxation information

Question 4

Talk me through how you reconciled the SC account at Egale 1&2?

Answer 4

Check invoices to ensure they are accurate and undertake SC movements to ensure they are apportioned correctly to the schedules and expenditure heads. Work with SC accountant to do this.

Question 5

Did you encounter any issues during the SC account reconciliation at Egale 1&2?

Answer 5

Some missing invoices required accrual – for example, only 11 out of 12 M&E contract invoices were received so we requested the final invoice to be sent and accrued this amount.

Question 6

You say the reconciliation was completed within 3 months of the SC year-end, is this in line with RICS guidance?

Answer 6

Yes although I understand guidance is 4 months. Our Clients KPI is 3 months

Question 7

Did the reconciliation at Egale 1&2 require an independent audit? When is this required?

Answer 7

No as it was not stated within the leases and tenants did not request this