Building sinking funds

On some of our schemes we have set up a building sinking fund, or savings fund. This helps us to spread the cost of large items over several years. Monies paid into this fund accumulates for future communal maintenance, repairs and improvements, such as, external redecoration and the replacement of equipment rather than presenting you with a large bill in the year the work is done. Interest earned on the sinking fund is shown in the annual accounts and remains in the fund.