Administration charge maintenance overview

An administration - or management - fee is usually included within the overall service charge to cover the administrative cost of managing the service charge itself. The specific fee is calculated based on the total service charge applicable, which in turn is derived from the inherent cost elements. Where one or more cost elements are exempt from an administration fee, they may be excluded from the calculation, simply by activating the corresponding attribute, located within the individual element record. With the disaggregation of service charge billing, the specific administration charge is reported separately under a discrete cost element, which itself automatically reflects the same 'exclusion' attribute. As multiple management fees may be applicable, each covering different charge thresholds, Civica Cx Housing supports the creation of any number of corresponding administration rules. For each rule, it is possible to define the minimum charge levied, as well as setting a limit on the maximum fee that a tenant or leaseholder is expected to pay for the financial period covered by the service charge. System validation checks ensure that rules cannot coexist with overlapping threshold values, and therefore one rate may be applicable to, say, the first £500 and then a different rate for £501 upwards, until the defined maximum is reached.

Separate help articles have been created for each key aspect of administration charge maintenance, including:

• To create a new administration charge rule
• To assign threshold operators to an administration charge rule