Service Charge Payable
This module assists corporate occupier tenants in reconciling the service charge their landlords ask them to pay. It produces a reconciliation of the service charge to ensure that the landlord is calculating the correct on account and balancing payments, providing an audit trail of the calculation. It also highlights any major variances year on year for budgets, or within the period
for actuals against budget that may indicate something outside of the ordinary has occurred. This may trigger the tenant raising a query with the landlord, ultimately requesting that an audit is performed of the landlord’s accounts to validate the accuracy of the charges.
Horizon assists the tenant in preparing a reconciliation statement by modelling the heads of expenditure the tenant is contracted to pay, the percentage share, any caps and floors that have been negotiated and any associated management fee. The budget and actual cost for each head of expenditure can then be captured. This information is recorded for each service charge period, enabling comparative analysis to be carried out and variances outside a designated tolerance to be highlighted.
It is possible that several statements may be received from the landlord in a given year, each for a different type of expense recovery, e.g. service charges, insurance. Similarly, in Horizon it is possible to record information relating to these separately for each period, so that they can be reconciled independently.
