The recovery of service charges from leaseholders has been often a complex task which in some cases has often left the housing association not collecting them. To complicate matters, when these are collected, they are often managed by the finance team outside of the housing management system and are usually done through a series of complex spreadsheets with only a few key staff understanding it. As they are usually invoiced from finance, the tenancy element is often overlooked meaning that the transparency of the charges is often unavailable to the housing staff.
The ActiveH Service Charges (Scheme Accounting) module has been designed to interact with whatever systems you store the main system information in, be it the finance system, asset management system or another third party solution. With the ability to store how properties and charges are split, how the apportionment is managed and what rules need to be adhered to when calculating the charges, means that the end result is a system that requires limited input from a user.
Each charging element can have its own administration / management fee associated to it. It can also gather the associated budgets or actuals from different parts of multiple systems if required. Giving you a defined figure to use across a series of properties, blocks or schemes.
Once a figure has been calculated, the system then has the ability to apportion the charges across a number of properties based on whatever rules you require. This may simply be to charge leaseholders or it may include general service charges across whole estates. The way the system is designed, it allows you carry out the apportionment, other things like capping, tenancy rules etc. in an automated fashion once the system knows the rules. This makes the Scheme Accounting a very flexible tool to capture and manage the service charges within your organisation.
Once all the charges have been managed it then goes through an approval process. This allows a full audit trail of how the costs are built and handled.
Finally, the costs are transferred directly into the Rent Accounting system to be collected as part of your usual collection procedures. With the ability to renew charges easily, whenever you want, you have a very flexible automated system which simplifies what is often seen as a complex procedure. Added to that, the risk element to the business will have also been mitigated as all the relevant information is now within the housing management system.
Call us now for a free consultative meeting with one of our highly experienced housing systems consultants to understand how ActiveH and Scheme Accounting can benefit your business.
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