Regulator impressed by RSLs’ self-audit process

The Scottish Housing Regulator has recently unveiled the results of its in-depth investigation into how social landlords confirm their compliance with regulatory requirements. This process aids them in formulating their Annual Assurance Statements, which are obligatory submissions to the Scottish Housing Regulator by October’s end every year.

Thirteen landlords were visited by the Regulator to delve into their practices of ensuring compliance with regulatory requirements and their methodologies for compiling the statement. The primary emphasis during these visits was on how landlords assure themselves of meeting their obligations towards tenant and resident safety. In the case of Registered Social Landlords (RSLs), the focus was on how the governing body ensures its financial planning approach and the foundational assumptions supporting the RSL’s financial plans.

The latest report by the Regulator reveals that most landlords have established comprehensive and sturdy self-assurance procedures, with adequate measures in place to ensure the governing body is sufficiently certain about the organisation’s financial planning and underlying assumptions.

Offering recommendations for improvements to RSLs, the Regulator suggested:

• Involving tenant groups or organisations in the assurance process.
• Evaluating the frequency and depth of information provided to the governing body regarding tenant and resident safety.
• Ensuring the governing body leads and takes ownership of the self-assurance process.
• Continuing efforts to submit statements punctually.
• Enhancing the presentation of financial information to governing bodies.
• Regularly reviewing assumptions and seeking specialist advice when necessary for financial forecasting.

Helen Shaw, the director of regulation, commented, “We sought feedback from landlords on their self-assurance processes and statement preparation experience. Tenant and resident safety emerged as a pivotal concern during this year’s visits.”

Shaw continued, “Our thematic review not only highlights successful strategies employed by landlords but also outlines various recommendations. We urge all landlords to peruse this report as they shape their self-assurance methods and prepare their upcoming statement.”

Annually, the Regulator scrutinises each landlord’s Statement as part of its risk assessment process, with the outcomes to be disclosed in engagement plans around late March.