accord_fs_2020_JD_FINAL | Page 34

32 | Accord Housing Association
The Board is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the group and association and enable it to ensure that the financial statements comply with the Cooperative and Community Benefit Societies Act 2014 , the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing ( April 2015 ). It is also responsible for safeguarding the assets of the association and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities .
The Board is responsible for the maintenance and integrity of the corporate and financial information included on the association ’ s website . Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions .
Going Concern and Viability
The organisation ’ s business activities , its current financial position and factors likely to affect its future development are set out within the Strategic Report above . In making its judgement on the future viability of the organisation , the Board has carried out a review of the impact of the coronavirus and other operating and financial pressures on our business activities and how the measures planned and already implemented will protect financial viability .
The organisation reacted quickly and proactively in the very early stages of the virus . The Executive Management Team led the organisation through the pandemic , co-ordinating planning , information gathering and decision making and the Board maintains oversight throughout .
The budget for 2020-21 was approved by the Board in March 2020 with assumptions agreed pre-virus . Our updated financial plan has subsequently been stress-testing with a series of Covid-19 related scenarios including multi-variant scenarios around the economic , operational and housing market impact with assumptions agreed with our treasury advisors and sense-checked against our initial experience .
Even under the most extreme financial pressure , the mitigations identified would recover the plan to a position where all funders ’ covenants are comfortably met and cash flow is available to support operating activities , capital reinvestment and our development programme for the foreseeable future .
Our exposure to fluctuations in house prices is minimal as our planned development programme is predominantly affordable rented properties and the financial plan is not reliant on the proceeds from first tranche sales to subsidise the programme . Through the Homes England grant programme we have flexibility of tenure and are therefore able to switch easily between rent and shared ownership in mitigation of an adverse effect on sales or valuations .
We bolstered cash balances during March , drawing an additional £ 20m from revolving credit facilities ; robustly managed cash flow and keep a tight grip on discretionary spend . All additional costs related to delivering safe and compliant care services will be recovered through our contracts with Local Authorities , many of whom have made additional payments over and above the normal contract to support the organisation .
There was minimal development activity as a result of Government restrictions and therefore the period of available liquidity remains unchanged through lower capital expenditure and robust income collection . In June 2020 we received the final tranche of the private placement with PIC ; £ 55m and renewed a £ 10m revolving credit facility with a £ 20m five year facility ensuring that we meet the forecasts provided to the Regulator in the quarterly survey .
Following a thorough and robust assessment , the Board has a strong expectation that the association has substantial resources to continue in operational existence for the foreseeable future , being a period of at least twelve months after the date on which the report and financial statements are signed . For this reason , it continues to adopt the going concern basis in the financial statements .
Auditors
A resolution for the re-appointment of BDO LLP as auditors of Accord Housing Association will be proposed at the 2020 Annual General Meeting .
On behalf of the Board
Elisabeth Buggins ( Chair ) 30 July 2020
Stuart Fisher ( Executive Director of Resources ) 30 July 2020