Page 3 - rural-final-inspection-report-september-2016
P. 3
Final Report
Rural Housing Association Ltd
September 2016


Rural Housing Association was last subject to a Follow up Inspection, on

Property Management in 2014 resulting in a Satisfactory Assurance grading for
this area. This inspection covered all five inspection areas and has resulted in

a number of recommendations that if implemented would enhance the

Association’s performance. Details of these can be found in the main body of
the report and summarised in Appendix 2. A summary of the findings for each

of the areas inspected together with the Assurance rating is provided in the
following paragraphs.

Financial Management - the performance of the Association as indicated by

the operating margins, interest cover and gearing levels is good. The

Association is efficient at managing its cash through its cashflow forecasting
and budgeting, with the three year rolling cash forecast updated weekly. The

Association however has a low current ratio, and at times cash reserves do not

align with their treasury management policy. However this is planned to be
alleviated by the securing of a loan with the Danske Bank. Therefore in the

area of Financial Management, the Team considered that the financial
management of the Association 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.

Property Development - In May 2014 the Association’s development status

was reinstated with the proviso that the Association use a Development Agent.
Since that time the Association has acquired a limited number of Existing

Satisfactory Purchases (ESP’S). The Association has processed these in
house with the approval of the Northern Ireland Housing Executive (NIHE)

Development Programme group. The evidence from this inspection indicates

that the Association is adopting a cautious but reasonable approach to its
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