The measures put in place by the Government to limit the spread of the virus have been changing on a daily basis. It is expected, at least in the shorter term, the limiting of the movement of people will continue and may even increase.
All of these developments and measures may have a broad range of implications for housing associations. The degree of impact on individual associations will depend on a number of factors including the association’s mix of rental, outright sales and shared ownership, the level of developments ongoing, contractual relationships, whether or not care is provided, staffing models, insourcing or outsourcing of repairs and maintenance, the nature of the association’s assets and liabilities and the association’s cash reserves.
The Board will already be dealing with unexpected challenges and focusing on the health and wellbeing of tenants and staff. Whilst this is the key priority it will be important that these response actions are reflected into the necessary decisions that have to be made when reporting on the association’s activities and financial position.
The FRC has confirmed that Companies House may grant extensions to reporting deadlines and this is similarly true of the Charity Commission however the Regulator of Social Housing has not taken steps to echo this flexibility as there are no provisions in the Housing Regeneration Act 2008 to allow this.
The key areas of focus of this update are as follows:
Management and the Board will need to carefully consider the impact of coronavirus on the association’s annual report and financial statements to ensure that these continue to reflect the financial activities and position of the association in accordance with the Housing SORP and The Accounting Direction for Private Registered Providers of Social Housing.
Non Profits Resource Library