Housing association audit is a core part of what we do at Audit Group. We act as expert auditors for registered providers of social housing across the North West and beyond, handling the statutory audit, regulatory returns and Housing SORP compliance that the housing sector demands. As part of Jack Ross Chartered Accountants – ICAEW-regulated and established in 1948 – we bring decades of audit experience to a sector where getting it right matters. Our support covers everything from year-end accounts to regulatory submissions.
Who needs a housing association audit?
Most housing associations are required to have an annual audit. If your organisation is a registered provider with the Regulator of Social Housing (RSH), you’ll need audited financial statements prepared under the Housing SORP (Statement of Recommended Practice). This applies whether you’re structured as a community benefit society, a registered charity, or a company limited by guarantee.
Even smaller associations that fall below the statutory audit thresholds often need an audit because their regulator or funders require it. Grant-funded housing projects, stock transfer organisations and ALMOs all typically need independent assurance over their financial statements.
The regulatory framework
Housing associations operate under a specific set of accounting and regulatory requirements that sit on top of the standard Companies Act framework:
- Housing SORP 2018 – the Statement of Recommended Practice issued by the National Housing Federation. It sets out how registered providers should present their financial statements, including treatment of social housing properties, grant income and component accounting.
- FRS 102 – the underlying financial reporting standard. Housing SORP is applied as a layer on top of FRS 102, with sector-specific modifications.
- RSH Accounting Direction – the Regulator of Social Housing issues an annual Accounting Direction that specifies additional disclosures required in the financial statements of registered providers.
- FRC Practice Note 14 – the Financial Reporting Council’s guidance on the audit of housing associations, revised March 2021. It covers sector-specific audit risks and how to address them under ISA (UK) standards.
Your auditor needs to understand all four layers. A general practice auditor who treats a housing association like any other company audit will miss things – and the RSH will notice.
What makes housing association audits different?
The housing sector has specific audit risks that don’t exist in most other industries:
- Property valuations – social housing properties are valued differently from commercial property. Existing Use Value for Social Housing (EUV-SH) is the standard basis, and it requires specialist knowledge to audit properly.
- Component accounting – housing associations must account for major components (roofs, kitchens, bathrooms, heating systems) separately and depreciate them over their individual useful lives.
- Grant accounting – social housing grant is a significant balance sheet item. The treatment under Housing SORP – whether to recognise as a creditor or take to reserves – has a material impact on your accounts.
- Regulatory returns – the annual Financial Forecast Return (FFR) and quarterly returns to the RSH need to reconcile with the audited accounts.
- Tenant service charges – service charge income and expenditure must be properly ringfenced. Getting this wrong creates both accounting and legal problems.
Our approach to housing association audit
We assign a named audit partner and a consistent team to each housing association client. That matters in the housing sector because understanding your organisation – its stock profile, development pipeline, funding structure and governance – takes time. We don’t rotate junior staff through your audit every year and start from scratch. Our expert team ensures continuity from one year to the next.
Our audit methodology follows ISA (UK) standards and incorporates the specific requirements of FRC Practice Note 14. We plan the audit around the risks that matter most in social housing: property valuations, development scheme accounting, pension obligations and treasury management.
We also provide practical feedback. The management letter you receive after the audit won’t be a list of generic observations – it will cover specific issues we’ve identified and recommendations you can act on. If there are regulatory compliance gaps, we’ll flag them early so you can address them before the RSH does.
Beyond the statutory audit
Many of our housing association clients also ask us to help with:
- Internal audit and controls assurance
- Grant certification for Homes England funded schemes
- Board governance reviews
- Value for money assessments
- Stress testing and financial viability reviews
We can provide these alongside the statutory audit or as standalone engagements. Having your external auditor handle some of this work means better coordination, less duplication, and a clearer picture of the impact on your organisation’s financial health. We support housing associations at every stage – from pre-audit planning through to board presentation.
If your housing association needs a new auditor – or you want a second opinion on your current audit arrangements – call us on 0161 832 4451 or get in touch through our website. We’ll give you a fixed-fee quote within 48 hours.
