Experts in Property Accounting
MJP Accountants is a limited liability partnership and a member of the Institute of Chartered Accountants in England & Wales (ICAEW). We are experts in property accounting and provide a range of services for property investors and property managers.
Annual statements of account should be prepared for property structures where common services are provided to freeholders and/or leaseholders and the cost of those services need to be correctly accounted for in the service charge accounts and apportioned amongst the stakeholders who are required to fund those services. All annual statements of account should be subject to an examination by an independent accountant before issue to the stakeholders.
An independent accountant examination can take the form of an "Audit" or an "Engagement to deliver a report of factual findings", the latter also being referred to as “Certification”. Individual leases will state whether the accountant needs to audit or certify the annual statement. Leases drafted prior to 1980 used the term "audit" loosely so there is room for interpretation but post 1980 leases are more specific. An audit is a rigorous investigative process and the accountant needs to follow procedures governed by International Standards on Auditing. By comparison a statement of factual findings is based on relatively limited procedures and does not require the same level of investigation so is less time consuming and less expensive than an audit but should still provide reasonable comfort to the stakeholders that the annual statement of account has been correctly prepared and is in accordance with the books and records.