Why we are engaging with Partick Housing Association Ltd (Partick)
We are engaging with Partick about its financial management and development plans.
Partick has recently completed a stock condition survey and is planning what further investment is required in the medium term. We will engage with Partick to get assurance that the impact of its investment plans has been reflected in Partick’s long term financial projections.
Partick has plans to grow through a programme of new homes for social rent and mid-market rent, and will receive significant public subsidy to help achieve this.
What Partick must do
- 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.
- tell us if there are any material adverse changes to its development plans which might affect its financial position or reputation, in line with our notifiable events guidance; and
- send us an update on its development programme by 31 October 2022. This will include details of the scale and tenure mix, timescales for delivery and any material delays or changes to the programme.
What we will do
- review the business plan and financial projections;
- meet with Partick’s senior staff to discuss the business plan, the financial information and any risks to the organisation;
- review the development update and liaise as necessary; and
- update our published engagement plan in light of any material change to our planned engagement with Partick.
Partick 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.