Bentley Bridge Leisure Park

Transcription

1 Bentley Bridge Leisure Park Service Charge Reconciliation 1 January March

2 Service Charge Reconciliation Contents Executive Summary Independent Accountants Report Explanation of Variances Additional Information Contacts 2

3 Executive Summary For the year ended 31 March 2015, the service charge out-turn for Bentley Bridge was:- Actual expenditure 252,460 Budget expenditure 262,684 Variance ( 10,224) / (3.9%) I am pleased to advise that there has been an underspend on the overall budget mainly due to the savings in Site Management Resource s, Electricity and Cleaning and Environmental costs. This year has seen significant work on the sites drainage system (tenant and landlord) with all drains being cleaned after a number of blockages were reported. Due to the reported blockages being caused by fats, oils and grease build up, we have targeted action on operators grease collection and disposal systems. We have carried out essential repairs to the CCTV system which included replacing the failing DVR unit, we have also repainted and cleaned the external canopy circling the main terrace of units. As always we have aimed for high operational standards, and as such our site team have undergone IOSH training for Health & Safety and have attended refresher courses for first aid. We have also provided training for the new Risk Wise daily surveys introduced to site to assist in managing hazards and risks. Corporate responsibility is a key focus with our continued involvement in Wednesfield Business Watch scheme. We have also supported our national charity partner Mencap, throughout the year by creating a Just Giving Page and advertising our support for them via our website and social media pages. This year we have recruited a new Centre Manager following the retirement of the previous Centre Manager. Mark Welsby was appointed in March 2014 and is responsible for all aspects of the day to day operation of the Park. As always we have striven to obtain the best value possible and have focussed on delivering a high quality, responsive service to operators and customers alike. Mark Welsby Centre Manager T: M: E: mark.welsby@landsecurities.com 3

4 Independent Accountants Report BENTLEY BRIDGE LEISURE PARK Independent Accountants report for the period from 1 January 2014 to 31 March 2015 We have examined the attached statements of service charge expenditure for the period from 1 January 2014 to 31 March 2015 which have been prepared from the accounting records, information and explanations provided to us by the managing agent, X-Leisure Limited. We have not examined the apportionment of the total expenditure between the occupiers of the property. Respective responsibilities of the landlord and independent accountants. The landlord is responsible for keeping proper and complete accounting records and for the preparation of these service charge statements. The managing agent, X-Leisure Limited, has undertaken these responsibilities on behalf of the Landlord. It is our responsibility to form an independent opinion, based on our examination, on the statements of service charge expenditure and to report our opinion exclusively to the Landlord and their managing agent. To the fullest extent permitted by law, we do not accept or assume any liability to anyone other than the landlord (or managing agent where applicable) for our work, for this report, or for the opinions we have formed. Basis of Opinion We planned and performed our Independent Review so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the statements of service charge expenditure are a fair summary of the accounting records relating to Bentley Bridge Leisure Park for the period from 1 January 2014 to 31 March 2015 and are sufficiently supported by accounts, receipts and other documents which have been made available to us. Our work does not comprise an audit as defined by International Standards on Auditing (UK and Ireland). We are not required to express an opinion on the adequacy of any reserve fund for future expenditure. Opinion In our opinion, the attached statements of service charge expenditure totalling 252,460. i) Have been prepared in accordance with the accounting records, information and explanations provided to us, and ii) Are sufficiently supported by accounts, receipts and other documents. 5th June 2015 Websters Chartered Accountants 12 Melcombe Place Marylebone London NW1 6JJ 4

5 BENTLEY BRIDGE LEISURE PARK Service Charge Variance Summary for the period from 1 January 2014 to 31 March 2015 Actual Budget Actual months Variance Variance 15 months 12 months % Management Fees 26, % 26,730 20,635 Independent Accounting Fees 2, % 1,900 1,800 Site Management Resources 12,462 (5,863) (32.0)% 18,325 13,883 Health, Safety & Environment 3,272 1, % 1,953 1,340 Management 44,714 (4,194) (8.6)% 48,908 37,658 Electricity 8,327 (3,673) (30.6)% 12,000 7,874 Water 185 (565) (75.4)% Utilities 8,512 (4,238) (33.2)% 12,750 8,028 Security 116, % 115,756 89,817 Cleaning & Environmental 46,111 (2,264) (4.7)% 48,375 35,897 Soft Services 162,246 (1,885) (1.1)% 164, ,714 Mechanical & Electrical Services 2,254 (2,715) (54.6)% 4,970 8,293 Fabric Repairs & Maintenance 20,926 4, % 16,425 13,355 Hard Services 23,180 1, % 21,395 21,648 Major Works 13,808 (1,692) (10.9)% 15,500 0 Exceptional Expenditure 13,808 (1,692) (10.9)% 15,500 0 TOTAL 252,460 (10,224) (3.9)% 262, ,048 This statement should be read in conjunction with the Independent Accountants Report 5

6 BENTLEY BRIDGE LEISURE PARK Service Charge Allocation of Costs for the period from 1 January 2014 to 31 March 2015 Management Fees 26,730 Management Fees 26,730 Independent Accounting Fees 2,250 Independent Accounting Fees 2,250 Staff Costs 12,281 Site Offices/Accommodation 181 Site Management Resources 12,462 Health, Safety and Environmental 3,272 Health & Safety 3,272 Management 44,714 Electricity Lighting 7,578 Electricity Tax CRC 749 Electricity 8,327 Water 185 Water 185 Utilities 8,512 Security 116,135 Security 116,135 Cleaning 32,996 Housekeeping/Sundry Costs 500 Landscaping (External) 12,615 Cleaning and Environmental 46,111 Soft Services 162,246 Fire Precautions Maintenance (77) Lighting/Electrical Maintenance 2,331 Mechanical and Electrical Services 2,254 External Maintenance 20,926 Fabric Repairs and Maintenance 20,926 Hard Services 23,180 Major Building Works 13,808 Exceptional Expenditure 13,808 Grand Total 252,460 This statement should be read in conjunction with the Independent Accountants Report Total 6

7 Explanation of Variances Expenditure Type Actual 14/15 Budget 14/15 Variance Variance % Management 44,714 48,908 ( 4,194) (8.6%) This cost heading covers the fixed management fee for the site, site management resources and health, safety & environmental. Site management resources variance: ( 5,863) The salary package for the new Centre Manager following the retirement of the previous incumbent was at a significantly reduced cost hence the saving under this cost heading. Health, safety and environmental variance 1,319 Overspend in this cost heading due to completing a Health & Safety Tree Survey and mapping to assess the condition and potential risks or remedial works on the sites tree scheme which was not budgeted. Expenditure Type Actual 14/15 Budget 14/15 Variance Variance % Utilities 8,512 12,750 ( 4,238) (33.2%) Electricity Savings have been made (30.6%) as a consequence of our Energy Bureau exercising economies of scale in energy market procurement. Water Costs were over budgeted and actuals align with 2013/14 and are based on meter readings. Expenditure Type Actual 14/15 Budget 14/15 Variance Variance % Soft Services 162, ,131 ( 1,885) (1.1%) This category covers security, cleaning and winter maintenance. Cleaning and Environmental Variance ( 2,264) Underspend in this section due to not requiring any snow clearances this winter period and the costs for replacement cleaning equipment were lower than budgeted. 7

8 Expenditure Type Actual 14/15 Budget 14/15 Variance Variance % Hard Services 23,180 21,395 1, % Mechanical and electrical services variance ( 2,715) Cost savings were achieved with the retendering of the external car park lighting maintenance contract and not requiring to replace any fire extinguishers. Fabric Repairs and Maintenance variance 4,500 Over budget in this cost heading due to the emergency call out fees for the site wide drainage blockage ( 725) and the associated unplanned remedial works and drainage descale ( 4,105). Expenditure Type Actual 14/15 Budget 14/15 Variance Variance % Exceptional Expenditure 13,807 15,500 ( 1,693) (10.9%) Major works variance ( 1,692) Original plans to refurbish the totem signage were put on hold and the funds used to clean and repaint the external canopy 5,700, remove the metal structures by the pedestrian entrance and canal 1,300 and to replace damaged drainage in the service yard 6,705. 8

9 Additional Information Accounting Principles This service charge statement was prepared on an accruals basis and all figures are shown net. Land Securities Plc has chosen to opt to tax Bentley Bridge. Cost Centres and Apportionment Service Charge expenditure is allocated to one schedule and costs are apportioned based on gross internal floor area Service Partners Key services are provided by the following service providers: Service Service Partner Contract Duration Next Re-tender Security Services Man Commercial Protection Ltd 3 Years May 2018 CCTV Reflex Systems Ltd 3 Years May 2018 Soft Services OCS Ltd 3 Years May 2018 MEBF NG Baileys Ltd 3 Years May 2018 Apportionment (See Next Page) Please note that this apportionment represents the position at 31st March Where there have been changes in apportionment or tenancies during the year then the figures shown are only indicative. Along with balancing invoices/credit notes, we have issued individual statements showing a full breakdown relevant to each tenant. 9

10 Land Securities Group PLC Apportionment Schedule Bentley Bridge Common Total 252, ,460 Factors All Address All tenants Unit 1 Bentley Bridge Leisure Park 44, ,393 Unit 2A Bentley Bridge Leisure Park 4,156 10,601 Unit 2B Bentley Bridge Leisure Park 1,844 4,704 Unit 3 Bentley Bridge Leisure Park 3,675 9,374 Unit 4 Bentley Bridge Leisure Park 25,944 66,178 Unit 4B Bentley Bridge Leisure Park 4,077 10,400 Unit 5 Bentley Bridge Leisure Park 3,500 8,928 Unit 6 Bentley Bridge Leisure Park 2,450 6,249 Unit 7 Bentley Bridge Leisure Park 2,190 5,586 Unit 8 Bentley Bridge Leisure Park 7,075 18,047 Totals 98, ,460 10

11 Contacts Mark Welsby Centre Manager T: M: E: Mark is responsible for all aspects of the day to day operation of the Leisure Park. Emma Jeffery Portfolio Manager T: E: Emma is responsible for dealing with occupational space requirements, lettings, tenant mix, refurbishment and development matters. Steve Pettit Senior Property Management Surveyor T: M: E: Steve is responsible for the consideration of tenants applications for Landlord consents in respect of assignments, sub-lettings, alterations and general enquiries regarding leases. Funke Ajibola Senior Property Accountant T: E: Funke is responsible for the administration of the Service Charge - the apportionment of charges, the annual reconciliation and the processing and allocation of invoices. 11