Housing association audit
The audit of housing associations in the United Kingdom follows standards set by the FRC, the Regulator of Social Housing, and bodies like the National Housing Federation. Whether you’re one of the registered social landlords in England, or a co-operative and community benefit society, you need a firm with a deep understanding of the sector and the regulatory requirements that apply.
We deliver services tailored to UK housing bodies. Our dedicated team brings the knowledge and experience needed to ensure quality services for housing associations of every size.
What does the work involve?
A housing association audit covers financial reporting under FRS 102 and the Housing SORP. The statements must reflect how the organisation manages its property portfolio, grant income, tenant receivables, and long-term borrowing. Getting the balance sheet right matters because funders, board members, and stakeholders all rely on it.
Practice Note 14 (PN 14), revised March 2021, sets out direction for practitioners carrying out work in the social housing sector. It covers going concern reviews, grant accounting, property valuation, and the treatment of homes held for social benefit. Any specialist working in this field should be applying it throughout the engagement.
Some bodies also have obligations under the Co-operative and Community Benefit Societies Act 2014. We handle both charity and non-charity structures, including groups with a subsidiary that need consolidated accounts.
Key audit focus areas
Working in this sector differs from standard commercial engagements. There are unique compliance and governance challenges:
- Property asset valuation and impairment
- Grant income recognition and conditions from Homes England (formerly the Homes and Communities Agency)
- Treasury management, loan covenants, and financial risk exposure
- Tenant arrears provisioning and bad debt policies
- Development programme capitalisation policies
- Value for money reporting and benchmarking against sector metrics
- Data integrity checks on asset records and stock condition data
- Procurement review for major works and supplier contracts
We also look at sustainability reporting. Bodies across the UK face growing pressure to report on decarbonisation, energy performance, and ESG.
Governance and compliance
The Governance and Financial Viability Standard applies to all registered providers in England. The 2023 Regulation Act and the Building Safety Act 2022 have raised the bar. Risk assessments, internal controls, and governance arrangements all feed into the engagement.
We carry out an assessment of financial resilience and flag anything in our management letter that the board needs to act on. Boards that navigate change benefit from this independent assurance, which adds real value and helps ensure standards are met.
In Wales, Community Housing Cymru provides sector guidance. We adapt our approach to match the framework that applies to your organisation.
Advisory services
Beyond the statutory engagement, we offer a consultation service covering financial planning, risk management, and strategic reviews for social housing providers. Bodies dealing with mergers, stock transfers, or new development programmes need advice alongside their audit. We add value by identifying risks early and helping finance teams plan ahead.
Appointing an external auditor
If your board is looking to appoint a new firm, we’re happy to discuss what the process looks like. We’re ICAEW-regulated and we bring specific experience in this area. Our fees are fixed and agreed before we start. We attend committee meetings to present findings and discuss issues directly with board members.
Business continuity planning, treasury reviews, and restructuring all benefit from having the right team in place. If you want guidance on what good audit looks like, call us on 0161 832 4451 or request a callback.
