Engagement plan from 31 March 2022 to 31 March 2023

Landlord name

Linthouse Housing Association Ltd

Publication date

31 March 2022

Regulatory status

Compliant

The RSL meets regulatory requirements, including the Standards of Governance and Financial Management.

Why we are engaging with Linthouse Housing Association Ltd (Linthouse)

We are engaging with Linthouse about its financial management.

Linthouse has told us it has a significant cash outflow over the next five years to support its investment plans. We will engage with Linthouse to get assurance about its borrowing strategy and how it is managing all of the risks associated with its plans.

What Linthouse must do

Linthouse must:

  • send us by 30 June 2022:
    • its approved business plan and updated risk register;
    • 30 year financial projections consisting of statement of comprehensive income, statement of financial position and statement of cash flow complete with assumptions and explanatory narrative;
    • a comparison of projected financial loan covenants against current covenant requirements;
    • financial sensitivity analysis which considers the key risks, the mitigation strategies for these risks and a comparison of the resulting covenant calculations with the actual current covenant requirements;
    • the report to the Board in respect of the approved 30 year projections, sensitivity analysis and covenant compliance; and
    • evidence of how it demonstrates affordability for its tenants.

What we will do

We will:

  • review the business plan and financial projections;
  • meet with Linthouse’s senior staff to discuss the business plan, the financial information and any risks to the organisation; and
  • update our published engagement plan in light of any material change to our planned engagement with Linthouse.

Regulatory returns

Linthouse 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.

Our lead officer for Linthouse Housing Association Ltd is:

Simon Stone

Regulation Manager

Buchanan House
58 Port Dundas Road
Glasgow
G4 0HF

0141 242 5552