Development Funds - Annual Income & Expenditure Account
What is the Purpose?
The main purpose of an Annual Income & Expenditure Account is to record all income generated by a development as well as recording all expenditure incurred. This will allow, at the end of the financial year, to determine whether the development has operated at a surplus or deficit.
Why is it Important?
In order to maintain service provision to a development, the development requires to generate sufficient funds to allow for the service providers e.g., cleaners, gardeners etc. to be paid on an ongoing basis. This ensures that the development does not fall into dis-repair.
If the production of the Income & Expenditure Account identifies that there has been a deficit in the previous financial year, those developments that operate budgeted/advance billing will see an increase in their costs for the next financial year whilst those developments operating arrears billing with a float will likely require a float review to be undertaken.
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