The Regulator of Social
Housing (RSH) has concluded that A2Dominion Housing Group Limited still needs
to meet the governance outcomes of the Governance and Financial Viability
Standard.
In a regulatory
judgement published on 03 January 2024, the RSH concluded that A2Dominion
Housing Group Limited (A2Dominion) has not met the required governance outcomes
of the Governance and Financial Viability Standard and, as a result, it has
been downgraded to G3 status. Its current viability grade (V2) is unchanged.
RSH lacks assurance
that A2Dominion has a robust risk management, internal control and assurance
framework that enables it to manage and mitigate risks. The provider needs to
address critical risks effectively, leading to poor tenant outcomes.
RSH also needs more
assurance that A2Dominion's data and systems are adequate. These issues have
led to the provider producing poor-quality data and hindering the board's
oversight of the organisation.
A2Dominion's CEO and
Chair have been positively engaging with RSH. The provider is working to
address the governance issues identified by RSH's investigation and return to a
position where the required governance outcomes are met.
Harold Brown, Senior
Assistant Director for Investigations and Enforcement at RSH, said: “We found
significant issues with A2Dominion’s data and its business planning, risk, and
control framework, leading to a failure by the provider to manage key risks effectively.
A2Dominion is working with us to address these issues, and we will continue to
monitor the provider as it works to return to compliance”.
Registered providers of
social housing with more than 1,000 units are awarded Governance (G) and
Financial Viability (V) grades for compliance with the Governance and Financial
Viability Standard.
Grades of G1 and G2
indicate compliance with the governance element of the Governance and Financial
Viability Standard. In contrast, grades of G3 and G4 indicate non-compliance.
Similarly, V1 and V2 grades indicate compliance with the financial element, and
V3 and V4 grades indicate non-compliance.
RSH placed A2Dominion
on the gradings under review list on 08 September 2023 to indicate that it
investigated the provider's compliance with the Governance and Financial
Viability Standard. A2Dominion’s previous grades were G1/V2. They are now
G3/V2.
The RSH promotes a
viable, efficient, well-governed social housing sector able to deliver and
maintain homes of appropriate quality that meet a range of needs. It does this
by undertaking robust economic regulation focusing on governance, financial
viability and value for money that maintains lender confidence and protects the
taxpayer.
The RSH also sets
consumer standards and may take action if these standards are breached. RSH's
remit on consumer issues is expanding, and from April 2024, it will begin
carrying out regulatory inspections of social landlords.
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