Financial Statements 2020 | 41
1 . Principal Accounting Policies
Legal Status The association is registered under the Co-operative and Community Benefit Societies Act 2014 and is a registered housing provider .
Basis of Accounting The financial statements have been prepared in accordance with applicable UK Generally Accepted Accounting Practice ( UK GAAP ), including Financial Reporting Standard 102 ( FRS 102 ) and the Housing SORP 2018 : Statement of Recommended Practice for Registered Social Housing Providers and comply with the Accounting Direction for Private Registered Providers of Social Housing 2019 .
As at 31 March 2020 Accord Group Treasury Limited is the only remaining operational subsidiary of Accord Housing Association Limited . The activities of this subsidiary are such that there would be no difference between the figures as presented in the financial statements for the association and the financial statements for the consolidated group , and as such group accounts have not been prepared .
Public Benefit Entity The association is a Public Benefit Entity , as defined within FRS 102 as “ an entity whose primary objective is to provide goods or services for the general public , community or social benefit and where any equity is provided with a view to supporting the entity ’ s primary objectives rather than with a view to providing a financial return to equity providers , shareholders or members .”
Going Concern The accounts have been prepared on a going concern basis .
The Board has reviewed cash flow forecasts , updated for the likely impact of Covid-19 , for the 12 months from the date of these financial statements ( the going concern period ).
The Board has considered the impact on each business activity as part of their assessment and are confident that services are well managed and continue to make positive contributions to the organisation . We have robust cash flow management processes in place , have updated our Treasury Management policy in the light of Brexit and Covid-19 and have re-profiled large discretionary spend including the development programme .
We have a portfolio of housing assets which provide a secure income stream and long-term debt facilities in place to fund our committed reinvestment and development programme . Our care activities are diversified and built on strong , well established relationships with Local Authorities . We have the highest rating for Governance and Financial Viability from the Regulator of Social Housing ; recently confirmed through their In-depth Assessment process .
The organisation manages its exposure to risk and our approach to risk management along with an overview of the key risks and mitigations including those presented by coronavirus are set out on pages 26 to 27 . The Board has overall responsibility for risk management and risk appetite , with risks being reviewed and scrutinised by the Finance , Audit and Risk Committee and Executive Management Team .
Cash balances were £ 44.5m at the year end plus additional liquidity from secured borrowing facilities and were further bolstered post year end by the receipt of £ 55m final tranche of a private placement in June 2020 .