External Audit

25 June 2008

Dear Members

Council leaseholders and freeholders in Tower Hamlets are relying on unanimous cross party support for a motion tonight that calls for in depth independent scrutiny by an external auditor of the calculation, the apportionment and the collection of service charges in this borough.

Motion 11.3, the proposal to carry out an external audit, if passed, will enable the council to deliver on its fundamental commitment to residents: that accounting procedures in this borough will be transparent and accountable.

For ten years we have been lobbying Tower Hamlets Council to be open about its accounting procedures and we have met determined resistance from the housing directorate. Leaseholders do not believe that service charge accounts in this borough are reasonably and accurately constructed.

Why is the council so reluctant to open the books? If all is not well residents have a right to know and our elected representatives also have a right to know.

In Southwark the need for an external audit was recognised and supported by all the political parties. And the leasehold management team fully cooperated with residents to prepare tender documents and operating procedures. In Southwark the council has learnt from its past mistakes, and it knows that clear and transparent accounting procedures verified in an independent external audit is the only way to regain the trust and cooperation of homeowners. Housing professionals in Southwark have concluded that they cannot do their job without it.

Leaseholders in this borough urge you pass this motion and by so doing prepare the way for a new and constructive period of cooperation between the council and leaseholders.

It is unthinkable that you will vote against openness and transparency. This is about hard pressed residents. Not party politics. Please don’t let your constituents down.

Tower Hamlets Leaseholders Association

Leaseholder Services Motion, proposed by Cllr Tim Archer, Seconded by Cllr Peter Golds
 
Council notes the continuing dissatisfaction of leaseholders with the overall service they receive from Tower Hamlets Council, particularly in respect of:
 
- information and consultation on both major works and annual service charges
- the overall level of both major works and annual charges, particularly the administration and management element.
- the value for money that these charges represent and the quality of the services that leaseholders are asked to pay for
 
Furthermore this council notes the following recent developments:
 
- the £50 refund being made to leaseholders by this council in recognition of leaseholder grievances and excessive charges to date
- the recent Lister House Leasehold Valuation Tribunal case that the Council lost.
 
This council therefore resolves to call on the executive to:
 
- provide leaseholders with an appropriate level of reassurance on the process and resulting charges levied by the Council, by way of an independent audit of leaseholder services to establish that Leaseholder service charges are fair and appropriately calculated. 
This review should be carried out by an recognised independent firm of auditors.