Page 30 - rural-final-inspection-report-september-2016
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APPENDIX 1
INSPECTION GRADING SYSTEM

The scoring mechanism is on the basis of an overall rating from 1 to 4 being
awarded, along with individual ratings for the four main areas of focus. The
four tier grading system is as follows:

Rating 1 - Substantial Assurance
To be given to housing associations where there is a robust system of risk
management, control and governance which ensure that objectives are fully
achieved. Housing associations in this category serve as an example of best
practice. These housing associations will have a well run system of internal
control and a risk management programme resulting in all identified risks
being addressed and mitigated.


Rating 2 - Satisfactory Assurance

To be given to housing associations who have shown they have an effective
system of control which will ensure the achievement of objectives. There may
be some weaknesses but these would not be regarded as impacting
significantly on the overall performance of the association.



Rating 3 - Limited Assurance
To be given to housing associations where there is a considerable risk that
the Association will fail to meet its objectives or where an Association has
previously received an “Unacceptable” or “No Assurance” rating and they
have shown progress in addressing previous shortcomings. Prompt action is
required to improve the adequacy and effectiveness of risk management,
control and governance.



Rating 4 - No Assurance
To be given to housing associations where internal systems have failed or
there is a real and substantial risk of the Association failing to meet its
objectives and where they are also failing to provide any of the following:
sound corporate and financial governance, quality housing; value for money.
Such housing associations are considered a high risk to themselves and the
public funds which they might receive.













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