REGULATORY COMPLIANCE
The Homes and Communities Agency ( HCA ) Governance and Financial Viability Standard outlines its expectations for Registered Providers to demonstrate that VFM services are being delivered , and moreover that VFM is embedded in the culture of the organisation . Accord understands the importance of being able to confidently demonstrate VFM through responsible management of finances and application of resources , whilst continuing to provide excellent services to customers . These arrangements were tested during 2016 during the HCA ’ s In Depth Assessment of Accord which resulted in a continuing G1 / V1 rating . Accord ’ s achievements have been benchmarked against the requirements of the Standard , as below :
Registered providers shall …
How Accord delivers against these requirements
“ Have a robust approach to making decisions on the use of resources to deliver the provider ’ s objectives , including an understanding of the trade-offs and opportunity costs of its decisions .” n The Accord Board receives regular updates on implementation of agreed business plan objectives . n In the development of the Business Plan and prioritising the objectives of Accord the Board recognises the opportunity costs associated with prioritising one set of objectives over another with the appreciation that resources are finite . n Board decisions are made on a ‘ clear line of sight ’ basis with a full appreciation of operational risk , delivery and forecast financial performance . n Financial planning is integrated into business planning cycle . Annual detailed financial plans are prepared identifying the extent of the financial resources available to deliver the Board ’ s strategic objectives and ambitions . n Opportunity costing is incorporated into the Project Approval Process ( PAP ) to demonstrate the rationale behind proposed business and investment decisions . For example the decision to invest or divest in certain properties based upon asset management intelligence as well as cost and risk implications of decisions . n Business planning and objective setting at Board development sessions and strategy days include VFM as a fixed agenda item . This ensures the commitment of financial resource aligns entirely to the business plan objectives . n Key financial planning documents such as the budget assumptions report , annual budget and financial business plan are subject to challenge and scrutiny by the Board with a specific focus on VFM . n The Executive Board reviews all major investment decisions , business cases and business development opportunities including VFM , risk identification and mitigation and exit strategies before recommendation to Board . n All existing major services and contracts are underpinned by detailed exit strategies . n Through rigorous stress testing of the financial plan , the Board is clearly sighted on relevant risk events and how these might impact upon the forecasted performance and the ambitions of the Board . n The Board regularly revisit its risk appetite assessment and statement to set the agreed parameters to support the decision making process around Accord ’ s current and future operating activities .
22 Accord Housing Association