Mid-year questions to keep budgets, compliance and major works on track

As we reach the midpoint of the year, resident directors must take stock to ensure service charge budgets, compliance obligations under the Building Safety Act, and major works remain on course. This is the moment to ask the tough questions that reveal gaps in financial reporting, governance, and planned maintenance before they escalate into costly problems. In this edition, we highlight key prompts that help tighten control over reserve funds, Section 20 consultations, fire risk assessments, procurement, and arrears management, keeping your asset management strategy on track through to year end.

Budget and cash flow: are variances tracked and actions agreed?

Understanding your building's financial health is crucial. Are there unexplained variances in your budget? Tracking these and agreeing on actions will help maintain financial stability. Regular reviews ensure your cash flow is aligned with projections, preventing unexpected shortfalls. Keep an eye on these details to safeguard your financial strategy and prepare for the next section on arrears management.

Service charge arrears: what is the recovery plan and timeline?

Service charge arrears can significantly impact your building's resources. Do you have a clear recovery plan and timeline in place? Addressing arrears promptly prevents further financial strain and ensures resources are available for essential maintenance and improvements. A structured approach to arrears recovery will also enhance your overall financial governance. This sets the stage for reviewing major works and reserve funds.

Reserve fund and major works: does the plan match current condition and costs?

A robust plan for your reserve fund and major works is pivotal. Does it reflect your building's current condition and realistic costs? Ensuring the reserve fund aligns with actual needs helps avoid unplanned expenses and supports long-term asset value. Regular assessments and updates keep your strategy relevant and effective.

Keep your asset management strategy on track and begin implementing these checks today for peace of mind.

P.S. Tighten control over your budget and governance now to prevent future surprises.

Contact the Temphis team to explore how we can support your and your needs