Policy Overview
Precedent Estate Management Ltd is committed to transparent and accountable financial administration in respect of service charge and estate funds.
Client monies are administered strictly in accordance with the lease, management agreement and applicable statutory requirements.
Segregation of Funds
Client funds are held separately from the company’s own operating funds.
Where applicable:
- Service charge monies are maintained in designated, ringfenced, purpose provided client accounts
- Funds are applied solely for the benefit of the relevant development
- Office and Precedent operating expenses are not paid from client accounts
Authorisation & Controls
The company operates structured internal controls to ensure:
- Expenditure is authorised in accordance with the lease and management agreement
- Contractor invoices are reviewed prior to payment
- Dual review processes are applied where appropriate
- Financial records are maintained contemporaneously
Financial Reporting
We provide structured financial reporting to:
- Directors of resident management companies
- Freeholders (where applicable)
- Leaseholders, where required under statutory rights
Reports typically include:
- Budget / year to date expenditure comparisons
- Reserve fund balances
- Year-end reconciliation statements/ Section 21 summaries
- Section 22 responses
Reserve Funds
Where leases provide for reserve or sinking funds:
- Contributions are collected/ transferred to designated client deposit accounts, midyear or at yearend, and accounted for separately
- Funds are monitored against anticipated lifecycle expenditure
- Balances are reported transparently
Record Retention
Financial documentation, invoices and supporting records are retained in accordance with statutory requirements and governance standards.
Professional Standards
Precedent maintains Professional Indemnity and Client Money Protectiom Insurance and operates accounting procedures consistent with recognised industry practice.
Policy reviewed February 2026.