"Invest in and deliver good governance"
Maintaining strong and effective governance is vital in ensuring that English Rural continues to be well run.
A review of our compliance against the Governance and Viability Standard by the Regulator of Social Housing during the year reaffirmed our gradings at the highest levels of G1 and V1. There is however no room for complacency and a programme of governance enhancement has been embarked on, with some notable outcomes already completed.
A new Risk Management Framework was established, linked to the Business Strategy 2019-24 and operating context. Standing Orders and Financial Regulation, which provide the framework for decision making and delegation, were also redrafted. These changes allowed the opportunity to reflect the different Group structure, specifically the merger of NFVHA into the Group and the increased activity of our subsidiary ER Homes Ltd. Much of the governance work has been supported by consultants Altair, who have also been contracted to undertake a review of board effectiveness. The results of this review were reported to and considered by the Board at the July 2020 meeting.
The Regulator of Social Housing awarded English Rural the highest available grading of V1 and G1
Reviews have been undertaken of the staffing team and Board profile, to identify any skill gaps or succession needs. The outcome from this work were serveal changes to the level and roles of staff, including developing some functions by recruiting new skills or support via training. A succession plan has been agreed by the Board, with two new Board Members recruited during the year and further future recruitment timeframes confirmed. A programme of board training has also been embarked upon. Committee skills have been strengthened following a review of membership, including the decision to consider co-opted committee members. Specifically, the Audit & Risk Committee has been refreshed, with a new name and comprehensively updated terms of reference. One of the first roles of this Committee was to re-tender internal audit services, with Beavers and Struthers appointed at the end of a competitive process.
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Retained V1 and G1 regulatory gradings
Risk Management Framework refreshed to reflect Business Strategy
Incorporating new terms for an Audit & Risk Committee
Standing Orders and Financial Regulations redrafted
Board Effectiveness Review started
Board succession and training plans agreed
New external auditors appointed, and internal audit services tendered
Our Vice-Chair, Nick Way OBE, takes questions from the audience at our Affordable Rural Housing Conference in Surrey in September 2019
>> Recruitment of new Board Members is happening in an increasingly competitive market, where other housing associations increasingly offer to pay for non-executive roles. The recruitment undertaken during the year was successful, attracting the requisite skills and talent hoped for. However, the ability to continue to do so needs to be kept under review by the Board. Furthermore, the pace of change on the Board, as the agreed succession planning is pursued, should also be managed carefully to safeguard the culture that makes English Rural the successful organisation that it is.
>> Regulatory and legal expectations on English Rural and the cost (time, capacity and money) of compliance continue to increase in response to internal growth and external expectations. Monitoring the cost of this compliance and the impact it has on business resource is something that the Board have agreed to do going forward.
