Teign Housing - Gov.uk
The Social Housing Regulator
September 2017
HCA Regulatory Judgement on Teign Housing LH4403
HCA Regulatory Judgement Teign Housing – LH4403
Publication Details Reason for publication Governance downgrade
Regulatory process Stability Check and Reactive Engagement Please see the definitions in Annex 1 for more detail
Governance G2 (Compliant) The provider meets our governance requirements but needs to improve some aspects of its governance arrangements to support continued compliance
Viability V1 (Compliant) The provider meets our viability requirements and has the financial capacity to deal with a wide range of adverse scenarios.
Key to grades G1 / V1
Compliant
G2 / V2
Compliant
G3 / V3
Non-compliant and intensive regulatory engagement.
G4 / V4
Non-compliant, serious failures leading to either intensive regulatory engagement or the use of enforcement powers. Page 2 of 5
HCA Regulatory Judgement Teign Housing – LH4403
Provider Details Origins Teign Housing (Teign) is a company limited by guarantee and a registered charity. It was established in 2004 to receive the transfer of stock from Teignbridge District Council. The key focus for Teign is the provision of housing services and the development of new affordable homes.
Registered Entities The only registered entity is Teign Housing.
Unregistered Entities Teign has one wholly-owned subsidiary, Templer Homebuild Limited.
Geographic Spread and Scale Teign owns and manages 3,601 social housing units, comprising mainly general needs homes and housing for older people, and a small amount of shared ownership accommodation. Teign operates in the Teignbridge local authority area.
Staffing and Turnover Teign employs the full time equivalent of 82 staff. It reported a turnover of £18.8m for the year ended 31 March 2017.
Development Teign intends to develop 345 new homes over the next six years.
Page 3 of 5
HCA Regulatory Judgement Teign Housing – LH4403
Regulatory Judgement This regulatory judgement downgrades the previous published assessment of Teign’s governance. Based on evidence gained following engagement on rents as part of the regulator’s analysis of Teign’s Statistical Data Return submission, the regulator has concluded that Teign meets our governance requirements, but needs to improve some aspects of its governance arrangements to support continued compliance. The Governance and Financial Viability Standard requires registered providers to comply with all regulatory requirements and have an appropriate, robust and prudent control framework. The regulator’s engagement on rents led to the identification of a control failure that had remained undetected by Teign for a number of years. Errors were made in rent setting, which resulted in a breach of the Rent Standard and a significant number of tenants being overcharged. This related to key data relied upon by both internal and external sources. We have concluded that this control failure represents an area of governance weakness. Teign’s response has been swift and decisive. Plans are in place to reimburse affected tenants and the local authority. Teign’s board has commissioned a review into specific operational control arrangements. Teign has been open and transparent with the regulator, providing comprehensive and good quality information. The regulator’s assessment of Teign’s compliance with the financial viability element of the Governance and Financial Viability Standard is unchanged. Based on evidence gained from a stability check, the regulator has assurance that Teign’s financial plans are consistent with, and support, its financial strategy. The provider has an adequately funded business plan, sufficient security in place, and is forecast to continue to meet its financial covenants under a wide range of scenarios.
Page 4 of 5
HCA Regulatory Judgement Teign Housing – LH4403
Annex 1: Definitions of Regulatory Processes In Depth Assessment (IDA) An IDA is a bespoke assessment of a provider’s viability and governance, including its approach to value for money. It involves on-site work and considers in detail a provider’s ability to meet its financial obligations and the effectiveness of its governance structures and processes.
Stability Checks Based primarily on information supplied through regulatory returns, a stability check is an annual review of a provider’s financial position and its latest business plan. The review is focused on determining if there is evidence to indicate a provider’s current judgements merit reconsideration.
Reactive Engagement Reactive engagement is unplanned work which is triggered by new intelligence or a developing situation which may have implications for a provider’s current regulatory judgement.
Stability Checks and Reactive Engagement In some cases, we will publish narrative regulatory judgements which combine intelligence gained from both Stability Checks and Reactive Engagement.
Further Information For further details about these processes, please see Regulating the Standards on http://www.gov.uk/hca.
Page 5 of 5
September 2017
HCA Regulatory Judgement on Teign Housing LH4403
HCA Regulatory Judgement Teign Housing – LH4403
Publication Details Reason for publication Governance downgrade
Regulatory process Stability Check and Reactive Engagement Please see the definitions in Annex 1 for more detail
Governance G2 (Compliant) The provider meets our governance requirements but needs to improve some aspects of its governance arrangements to support continued compliance
Viability V1 (Compliant) The provider meets our viability requirements and has the financial capacity to deal with a wide range of adverse scenarios.
Key to grades G1 / V1
Compliant
G2 / V2
Compliant
G3 / V3
Non-compliant and intensive regulatory engagement.
G4 / V4
Non-compliant, serious failures leading to either intensive regulatory engagement or the use of enforcement powers. Page 2 of 5
HCA Regulatory Judgement Teign Housing – LH4403
Provider Details Origins Teign Housing (Teign) is a company limited by guarantee and a registered charity. It was established in 2004 to receive the transfer of stock from Teignbridge District Council. The key focus for Teign is the provision of housing services and the development of new affordable homes.
Registered Entities The only registered entity is Teign Housing.
Unregistered Entities Teign has one wholly-owned subsidiary, Templer Homebuild Limited.
Geographic Spread and Scale Teign owns and manages 3,601 social housing units, comprising mainly general needs homes and housing for older people, and a small amount of shared ownership accommodation. Teign operates in the Teignbridge local authority area.
Staffing and Turnover Teign employs the full time equivalent of 82 staff. It reported a turnover of £18.8m for the year ended 31 March 2017.
Development Teign intends to develop 345 new homes over the next six years.
Page 3 of 5
HCA Regulatory Judgement Teign Housing – LH4403
Regulatory Judgement This regulatory judgement downgrades the previous published assessment of Teign’s governance. Based on evidence gained following engagement on rents as part of the regulator’s analysis of Teign’s Statistical Data Return submission, the regulator has concluded that Teign meets our governance requirements, but needs to improve some aspects of its governance arrangements to support continued compliance. The Governance and Financial Viability Standard requires registered providers to comply with all regulatory requirements and have an appropriate, robust and prudent control framework. The regulator’s engagement on rents led to the identification of a control failure that had remained undetected by Teign for a number of years. Errors were made in rent setting, which resulted in a breach of the Rent Standard and a significant number of tenants being overcharged. This related to key data relied upon by both internal and external sources. We have concluded that this control failure represents an area of governance weakness. Teign’s response has been swift and decisive. Plans are in place to reimburse affected tenants and the local authority. Teign’s board has commissioned a review into specific operational control arrangements. Teign has been open and transparent with the regulator, providing comprehensive and good quality information. The regulator’s assessment of Teign’s compliance with the financial viability element of the Governance and Financial Viability Standard is unchanged. Based on evidence gained from a stability check, the regulator has assurance that Teign’s financial plans are consistent with, and support, its financial strategy. The provider has an adequately funded business plan, sufficient security in place, and is forecast to continue to meet its financial covenants under a wide range of scenarios.
Page 4 of 5
HCA Regulatory Judgement Teign Housing – LH4403
Annex 1: Definitions of Regulatory Processes In Depth Assessment (IDA) An IDA is a bespoke assessment of a provider’s viability and governance, including its approach to value for money. It involves on-site work and considers in detail a provider’s ability to meet its financial obligations and the effectiveness of its governance structures and processes.
Stability Checks Based primarily on information supplied through regulatory returns, a stability check is an annual review of a provider’s financial position and its latest business plan. The review is focused on determining if there is evidence to indicate a provider’s current judgements merit reconsideration.
Reactive Engagement Reactive engagement is unplanned work which is triggered by new intelligence or a developing situation which may have implications for a provider’s current regulatory judgement.
Stability Checks and Reactive Engagement In some cases, we will publish narrative regulatory judgements which combine intelligence gained from both Stability Checks and Reactive Engagement.
Further Information For further details about these processes, please see Regulating the Standards on http://www.gov.uk/hca.
Page 5 of 5
