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Findings<br />

Key lines of enquiry<br />

42. We received the following written and verbal information in relation<br />

to our second set of key lines of enquiry:<br />

43. What is the process followed by <strong>Lewisham</strong> Homes, Regenter<br />

B3 and the RSLs for billing leaseholders for service charges?<br />

When is the estimated charge for the financial year provided?<br />

When are leaseholders informed of the final actual costs and<br />

when are the consequent increased payments or refunds due?<br />

<strong>Lewisham</strong> Homes<br />

Estimated bills for service<br />

charges are sent to<br />

leaseholders in March for<br />

the forth-coming financial<br />

year commencing in April.<br />

This estimate will include<br />

any adjustments for the<br />

previous financial year. This<br />

estimate allows the<br />

leaseholder 10 months in<br />

which to pay.<br />

The estimate is based on<br />

the actual costs in previous<br />

years for repairs, technical<br />

repairs, lift costs, entry<br />

phone etc. This is coupled<br />

with the available budget<br />

allocation for the forth<br />

coming year and an<br />

addition for inflation.<br />

In September, or within 6<br />

months of the end of the<br />

year, the leaseholder will<br />

receive a statement of<br />

actual costs for the<br />

previous year.<br />

Refunds or increase are<br />

applied to the next year’s<br />

estimate.<br />

Regenter B3<br />

Leaseholders are sent the estimated<br />

service charge demands at the end of<br />

each financial year (March) for the new<br />

financial year beginning in April.<br />

Leaseholders can choose to pay the full<br />

amount in 28 days or by 10 monthly<br />

instalments.<br />

The 2008/2009 estimate was based on<br />

the schedule of services we were<br />

obligated to carry out under the contract.<br />

This included all cyclical and planned<br />

maintenance works.<br />

Tenders/Quotations are obtained from<br />

specialist contractors i.e. Lifts, Gas<br />

(CP12’s), Pest Control, Aerials etc. An<br />

evaluation of the prices is carried out and<br />

termed contracts are awarded, usually 3-<br />

5 years.<br />

The 2009/2010 estimates were based on<br />

the actual cost in the previous year.<br />

6 months after the end of the financial<br />

year the actual cost adjustments are sent<br />

to leaseholders.<br />

Any credit on their account will be<br />

refunded at the leaseholders request.<br />

They will need to make their request<br />

when they receive their actual<br />

adjustment. Debits will be added to next<br />

year’s bill.<br />

RSL<br />

L&Q: Estimates are sent in<br />

Feb.<br />

Actuals sent the following<br />

September after year end.<br />

Balancing demand<br />

issued/credit refunded.<br />

Payment arrangements<br />

offered.<br />

Hyde:<br />

Budgets for the following year<br />

are prepared in Sept/Oct and<br />

Hyde does some consultation<br />

with leaseholders during this<br />

process.<br />

Estimated bills for service<br />

charges are then sent out in<br />

February for the forthcoming<br />

year (includes any<br />

adjustments for the previous<br />

year). Payments are then<br />

collected monthly.<br />

In September, leaseholders<br />

receive a final statement of<br />

costs from the previous year.<br />

Any surplus or deficit on the<br />

estimated costs is carried<br />

forward to the following year.<br />

The <strong>Council</strong>’s obligations to leaseholders<br />

27

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