OG - Service Charge Module - PP586

Orbit recovers service charges from 26,803 residents, across 1,306 schemes or estates. In previous years the Group has substantially under-recovered service charge contributions as a result of: direct service chargeable costs that have not been fully recharged or recovered; the deficit between the overhead costs of administering services and the management fee charged. In response to this under recovery, Orbit Living commissioned detailed business analysis in the area of Estate Services. This piece of work focused on structural issues across the service area and on processes and systems used for service charge management across the Group. One of the recommendations is the implementation of a service charge management system to perform service charge calculations and apportionments and allow for more efficient budget monitoring. The Group is looking to appoint a service provider who will be responsible for: · Provision of the service charge system · Implementation of the system in conjunction with the internal project team · Support provision for the first year of operation The system will be used for the management of service charges and budget monitoring. All charging and collection of charges will continue to be processed by our housing management system. All processing of invoices will continue to be processed by our finance system.