Why we are engaging with Kingsridge Cleddans Housing Association Ltd (Kingsridge Cleddans)
We are engaging with Kingsridge Cleddans about its governance.
In November 2023 Kingsridge Cleddans’ senior officer left the organisation. Kingsridge Cleddans appointed an interim senior officer as it progressed its plans to recruit a permanent replacement.
Following our engagement with Kingsridge Cleddans in its handling of this matter, we identified a number of areas of non-compliance with regulatory requirements including the Standards of Governance and Financial Management (the Standards) in particular Standards four, five and six. This included concerns about its approach to appointments to the governing body, governing body appraisals, succession planning, the quality of the information provided to the governing body, and lack of an internal audit programme.
In March 2024 Kingsridge Cleddans appointed a new senior officer and will now progress plans to undertake an independent governance review. It has commissioned external support to deliver this. Following the independent governance review, Kingsridge Cleddans will develop an action plan to address weaknesses in its approach to governance. Kingsridge Cleddans is looking to strengthen its governing body to support it through this next period. It has recently co-opted one new member and will look to recruit more members.
We will engage with Kingsridge Cleddans to seek assurance about the steps it is taking to address weaknesses in its governance and to achieve compliance with the Standards as well as its capacity and capability to deliver the improvements required.
Kingsridge Cleddans is working constructively and openly with us.
The Housing (Scotland) Act (2010) requires us to monitor and assess the financial well-being, governance and performance of each Registered Social Landlord (RSL).
Our current assessment is that Kingsridge Cleddans is non-compliant and is working towards compliance with the Regulatory Standards of Governance and Financial Management. We set out below the information that Kingsridge Cleddans must provide in order to assure us that it can achieve compliance.
What Kingsridge Cleddans must do
Kingsridge Cleddans must:
- send us regular updates on progress with the independent governance review;
- send us a copy of the report on the outcomes of the independent governance review when complete;
- send us a copy of the improvement plan it develops following the independent governance review to address weaknesses in its approach to governance and to achieve compliance with the Standards; and
- send us additional assurance about the capacity of the governing body and strategic leadership to take forward the necessary changes.
What we will do
We will:
- review the updates on progress with the independent governance review and engage as necessary;
- review the report on the outcomes of the independent governance review and engage as necessary;
- review the improvement plan developed following the independent governance review and engage as necessary;
- review plans to improve capacity of the governing body and strategic leadership to take forward the necessary changes;
- arrange to observe a governing body meeting and provide feedback;
- review our regulatory strategy in the light of this; and
- update our published engagement plan in the light of material change to our planned engagement with Kingsridge Cleddans.
Regulatory returns
Kingsridge Cleddans must provide us with the following annual regulatory returns and alert us to notifiable events as appropriate:
- Annual Assurance Statement;
- audited financial statements and external auditor’s management letter;
- loan portfolio return;
- five year financial projections; and
- Annual Return on the Charter.
It should also notify us of any material changes to its Annual Assurance Statement, and any tenant and resident safety matter which has been reported to or is being investigated by the Health and Safety Executive or reports from regulatory or statutory authorities or insurance providers, relating to safety concerns.