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2 Financial Management

2.1 Objective
To ensure that the Association operates a viable business with

adequate recourse to financial resources in order to meet its current
and future business commitments in accordance with the Housing

Association Guide.

2.2 Opinion

The Finance Inspection concentrated on four areas. They were:
(a) Financial Viability;

(b) Financial Planning and Monitoring;
(c) Control Environment; and

(d) Board Overview.

Overall, the Team considered that the financial management of Rural

Housing Association Ltd should be categorised as “Satisfactory

Assurance” (Grading 2, see Appendix 1). This grading is provided in
the understanding that the Association has provided significant

evidence that they are financially viable, that they have good standards
of financial management / reporting in place and that the Board has

detailed financial information to assist them in their decision making
and risk management.

The Association have good payment policies and procedures in place
and these appear to be followed in the majority of cases. Payment

runs are completed weekly and problem areas are quickly identified. It

was evidenced that the Association perform diligent checks on supliers
invoices with adequate explanations being provided for all aged

creditors. The aged creditor report is reviewed on a weekly basis. The
Association has a prompt payment target of 30 days from the receipt of

the invoice.

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