Financial Management & Service Charge Oversight
Residential service charge funds must be managed with care, transparency, and appropriate financial controls. Directors of RTM and resident management companies rely on managing agents to ensure that service charge funds are administered responsibly and that clear financial information is available to support decision-making.
At MY Facilities Management our financial management processes are designed to ensure service charge funds are handled transparently and in accordance with recognised professional standards.
Service Charge Budgeting
We work with directors to prepare structured annual service charge budgets that reflect the operational needs of the building.
Budgets typically include:
routine maintenance and repairs
utilities and building services
cleaning and maintenance contracts
insurance
compliance and safety requirements
contributions to reserve funds where appropriate
Clear budgeting helps directors understand expected costs and ensures leaseholders have visibility of how service charge funds are allocated.
Financial Reporting
Accurate and transparent financial reporting is essential for responsible building management.
We maintain structured financial records and provide reporting that enables directors to review:
service charge expenditure
budget performance
reserve fund balances
arrears and payment tracking
This allows directors to maintain oversight of the building’s financial position and make informed decisions where adjustments are required.
Service Charge Funds and Client Accounts
Service charge funds belong to leaseholders and must be managed separately from company operating funds.
Where applicable, service charge funds are held in designated client accounts in accordance with relevant professional standards and regulatory requirements. This ensures funds remain clearly segregated and protected.
Arrears Management
Where service charge payments fall into arrears, a structured process is followed to ensure the issue is addressed appropriately.
Our aim is to work with directors to ensure arrears are managed in a fair and consistent manner while protecting the financial stability of the building.
Financial Governance and Controls
We operate financial governance procedures designed to ensure transparency and accountability in the management of service charge funds.
These procedures include:
documented financial processes
structured record keeping
contractor invoice verification
financial oversight by directors
Directors retain ultimate authority over key financial decisions affecting the building.
Compliance and Financial Crime Controls
Managing agents must operate appropriate controls to ensure financial activities are conducted responsibly and in accordance with relevant regulatory requirements.
MY Facilities Management maintains internal policies and procedures relating to:
anti-money laundering (AML)
financial crime prevention
anti-fraud and anti-corruption controls
sanctions compliance
These procedures form part of our wider financial governance framework and help ensure financial activities relating to the buildings we manage are conducted responsibly.
Supporting Directors
Directors of RTM and resident management companies often carry responsibility for the financial management of their building.
Our role is to provide organised financial administration, clear reporting, and practical guidance so directors can maintain oversight of service charge funds while ensuring the building operates effectively.