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. 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, which can lead to poor tenant outcomes.
RSH also needs to ensure
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 the provider's failure 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 capable of delivering and
maintaining 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, which maintains lender confidence and
protects the taxpayer.
The RSH also sets consumer
standards and may take action if these standards are breached. The RSH's remit
on consumer issues is expanding, and from April 2024, it will begin conducting
regulatory inspections of social landlords.
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