Why we are engaging with Loreburn Housing Association Ltd (Loreburn)
We are engaging with Loreburn about its governance.
Loreburn has experienced a high turnover of members of its governing body and has an ongoing recruitment exercise to identify new members.
Given the level of turnover, we will engage with Loreburn about its recruitment exercise and to get assurance that it has an effective induction programme in place in line with our Regulatory Standards of Governance and Financial Management (the Regulatory Standards).
We will also engage with Loreburn to get assurance that it has a robust succession planning process in place to maintain an appropriate and effective composition of governing body members and to ensure the governing body’s ongoing sustainability in line with the Regulatory Standards.
What Loreburn must do
- provide us with updates on the recruitment process for governing body members; and
- provide us with information relating to its governing body induction programme and succession planning.
What we will do
- consider the updates on the recruitment process for governing body members;
- review the information in relation to the induction programme and succession planning for the governing body and liaise as necessary;
- observe a meeting of the governing body; and
- update our published engagement plan in the light of any material change to our planned engagement with Loreburn.
Loreburn 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.