FINANCIAL MANAGEMENT Annual community service fee budgets are developed based on factors such as expenditure trends, zero-based principles, community improvement plans, current year contract values, statutory requirements and audits and RERA regulations.
In addition, various regression models are applied to evaluate resources versus area versus costs to determine potential trends to predict community service fee rates.
The age of communities also plays an important role in determining services and improvements that maybe required to ensure maintenance needs and associated costs.
With research and historical data, we plan and predict the general and capital expenses, special and Master Community levies to offer economies of scale and added value.
Service fees are determined on a zero-based budgeting model by justifying community expenditures for the operation and maintenance of common property for each new period.
Service fee invoices coupled with an information pack are sent to residents. Also, campaigns and discounts for fee payments promote awareness on timely payment and its value to the community.
We adopt a robust strategy to claim overdue payments. This has proved successful in boosting the collection of outstanding dues.
– Development of annual community service fees.
– Secure RERA approvals and perform applicable pre-requisites (previous year audit, budget review audit, disclosures etc.).
– Invoice and collect community service fees.
– Manage day to day transactions and book-keeping.
– Manage cash-flows and fund balances for financially sustainability.
– Coordinate with RERA and auditors for transactions and escrow accounts for funds release.
– Maintain, monitor and manage investment funds
– Manage end-to-end payables and receivables processes.
– Enforce financial penalties following community violations and late payments
– Community service fee structure is dependent on the community’s governance structure, that is developed at the initial stage. Based on the stakeholders/components (i.e. residential, retail, commercial offices, hotel, entertainment etc.), the structure is set up to ensure fair and equitable method of allocation based on area, assets, energy consumption, personnel and usage.
– The overall service fee is determined based on the annual budget, which is then segregated between various components and uses that make up the community.
– Budget line items are determined based on the community’s needs and desires of the community and its respective components.
– General fund consists of day to day operating and administrative expenses which include maintenance and utility costs.
– Capital reserve fund is collected annually based on a capital reserve fund study, that indicates the annual contribution to build a robust reserve fund for capital replacements.
– Special levy is a one-off charge for items not in the design or covered under the general fund or for special unbudgeted for requirements.
– Master community levy goes towards maintenance of areas that are not part of any particular community but are common to the Master Community shared by all.
A typical budget includes, but is not limited to, the following:
– Zero-based budgeting
– Historical expenses
– Utility consumption and rates
– Resource allocation on site
– Service provider contracts
– Capital assets evaluation (maintenance, repair and replacements)
– Surplus/deficit adjustment from previous years
The community service fee is an owner’s annual contribution to his/her share of the common expenditure of the community.
ECM boasts of the highest community service fee collection rates in the industry.
Residents receive an itemized service fee invoice with a comprehensive community service fee information pack.
Our payment options include online (portal and Emaar One app) payment, bank transfer, via payment kiosks and auto pay features.
