Agenda item

To provide an update on i4B Holdings Ltd.’s and First Wave Housing Ltd.’s draft accounts, recent performance, risk register and recent audits.

7.1 First Wave Housing Ltd

7.1.1 Report from Chair of First Wave Housing Ltd

This report provides the Audit and Standards Advisory Committee (The Committee, ASAC) with an update on First Wave Housing Ltd.’s (FWH; The Company) draft accounts, recent performance, housing companies’ development strategy, risk register, and recent audits.

7.1.2 First Wave Housing Ltd Guarantor Report

7.2 I4B Holdings Ltd

7.2.1 Report from Chair of i4B Holdings Ltd

This report provides the Audit and Standards Advisory Committee (The Committee, ASAC) with an update on i4B Holdings Ltd.’s (i4B; The Company) draft accounts, recent performance, housing companies’ development strategy, risk register, and recent audits.

7.2.2 i4B Shareholder Report

Ahead of the formal introduction of the item, the Chair advised the Committee of a change in the reporting of i4B and First Wave Housing as it was recognised that the role of the Audit & Standards Advisory Committee was to scrutinise the Council oversight of the companies as opposed to scrutinising the companies themselves.

Ravinder Jassar, Deputy Director of Finance introduced the reports that updated the Committee on the work of both First Wave Housing Ltd (FWH) and i4B Holdings Ltd (i4B) to deliver against their business plans.

Key issues highlighted were as follows:

·                The Committee was advised that following a review of the Committee’s arrangements and in consultation with the Chair and Vice Chair, it had been agreed that the Committee would receive bi-annual reports from the Council’s Chief Executive and Corporate Director of Finance & Resources to provide assurance on the arrangements the Council, as Guarantor of FWH and shareholder in i4B, had in place to oversee the good performance and governance of the companies. It was recognised that this revised approach was in line with best practice as recommended by CIPFA.

·                The Committee’s attention was drawn to Section 3.4 of the reports that laid out the governance arrangements in place.

·                It was highlighted that both business models remained in financially strong and stable positions.

·                Voids and rent collections continued to be areas that required focus.

The Chair invited the Committee to ask officers any questions or clarifying points in relation to both i4B and FWH.

The following points were discussed:

·                The Committee felt there should be enhanced regular scrutiny of i4B and FWH, Peter Gadson, Corporate Director of Resident Services, advised that there were plans to hold a joint scrutiny Committee meeting in January 2024 with both the Resources & Public Realm Scrutiny Committee and Community & Wellbeing Scrutiny to examine the companies in more detail, and if it was felt to be an effective way forward, regular opportunities for scrutiny of the companies could be undertaken  via their  inclusion on the Committee’s work plans. The Chair agreed as a forward action to liaise with the Chairs of both Scrutiny Committees to explore this further.

·                Specifically in relation to i4B, the Committee queried the issue of tax inefficiencies, Ravinder Jassar, Deputy Director of Finance advised that as i4B had become more profitable, the company was required to pay more tax, consequently discussions had taken place with a tax consultant to ensure that the company was operating as tax efficiently as possible.

·                Following a Committee query on i4B’s buying strategy, it was confirmed that now that house prices had started to fall, buyers acting on behalf of the Council had been instructed to start purchasing again after a brief pause due to the rising interest rates and unstable market conditions that had begun to stabilise.

·                The Committee questioned what was being done to increase void turnaround times for both companies, in response the Committee was advised that the revised operational changes that had been made to manage the reduction of void turnaround times  were starting to come in to effect, with the full effects expected to be felt within the next 6 months; revised targets would see minor voids being turned around within 28 days and major voids being turned around in 72 days.

As there were no further questions the Chair thanked Ravinder Jassar and Peter Gadson for presenting the report and responding to the Committee queries. The Committee RESOLVED to:

(1)      Note the reports for both i4B Holdings Ltd and First Wave Housing Ltd.

(2)      Note the financial position for 2022/23 for both i4BHoldings Ltd and First Wave Housing Ltd. note the reports and their financial position for 2022/23.