b'CHP financial statements 2020/2021Independent auditors report toChelmer Housing Partnership Limited Opinion We have audited the financial statements of Chelmercollectively, may cast significant doubt on the groups and Housing Partnership Limited (the association) for the yearthe associations ability to continue as a going concern for ended 31 March 2021 which comprise the consolidatedthe going concern period.and company Statements of Comprehensive Income,However, as we cannot predict all future events or consolidated and company Statements of Changes inconditions and as subsequent events may result in outcomes Reserves, consolidated and company Statements of Financialthat are inconsistent with judgements that were reasonable Position, consolidated Statement of Cash Flows and relatedat the time they were made, the above conclusions are not notes, including the accounting policies in note 1.a guarantee that the group or the association will continueIn our opinion the financial statements:in operation. give a true and fair view, in accordance with UKFraud and breaches of laws and regulationsStatement on internal controls accounting standards, including FRS 102 The Financial ability to detectReporting Standard applicable in the UK and RepublicTo identify risks of material misstatement due to fraud Purposeof Ireland, of the state of affairs of the group and the(fraud risks) we assessed events or conditions that could association as at 31 March 2021 and of the income andindicate an incentive or pressure to commit fraud or provide This statement provides an opinion on how effectively the monthly reporting to the Leadership Team and Board expenditure of the group and the association for the yearan opportunity to commit fraud. Our risk assessment Group governs and manages the key risks related to itson key performance indicators to assess progressthen ended;procedures included:business and financial plan.towards achievement of key business objectives,comply with the requirements of the Co-operative andEnquiring of the Board, the Audit and Risk Committee, targets, and outcomes; Community Benefit Societies Act 2014; andinternal audit and inspection of policy documentation Sources of assurancehave been prepared in accordance with the Housing andas to the Groups high-level policies and procedures to The Board acknowledges and accepts that it has overall a CEO report to every Board meeting, providing detailRegeneration Act 2008 and the Accounting Direction forprevent and detect fraud, including the internal audit responsibility for establishing and maintaining the internalon performance against corporate objectives along withPrivate Registered Providers of Social Housing 2019.function, and the Groups channel for whistleblowing, control system and for reviewing its effectiveness. Theinformation from the wider sector; Basis for opinion as well as whether they have knowledge of any actual, Board has delegated authority to the Audit and Risk appraisal and authorisation process for new initiativesWe conducted our audit in accordance with Internationalsuspected or alleged fraud.Committee for reviewing the effectiveness of the system.and commitments; Standards on Auditing (UK) (ISAs (UK)) and applicable law.Reading Board and Audit and Risk Committee minutes.The Audit and Risk Committee considers risk reports, a review of the employee journey, together with Our responsibilities are described below. We have fulfilledUsing analytical procedures to identify any unusual or internal audit reports, management assurances, a frauda recruitment policy, to ensure skilled employees our ethical responsibilities under, and are independent ofunexpected relationships.register and the external audit management letter.are retained; the group and the association in accordance with, UK ethicalWe communicated identified fraud risks throughout the requirements including the FRC Ethical Standard. We believeaudit team and remained alert to any indications of fraud There is a continual process for identifying, evaluating, and an experienced and well-trained approach to treasurythat the audit evidence we have obtained is a sufficient andthroughout the audit. managing significant risks. The key elements of the internalmanagement with regular reviews by the Board and appropriate basis for our opinion. As required by auditing standards, and taking into account control framework during 2020-2021 were as follows: its committees; Going concern possible pressures to meet loan covenants, we performterms of reference and delegated authorities for the an internal and external review of treasury managementThe associations Board has prepared the financialprocedures to address the risk of management override of committees and working groups;strategies, policies and procedures; statements on the going concern basis as they do not intendcontrols and the risk of fraudulent revenue recognition, indelegation schedules dictating roles and responsibilities a new Investment Policy and Tax Strategy; to liquidate the group or the association or to cease theirparticular the risk that income from activities other than for the Chief Executive and Leadership Team; operations, and as they have concluded that the groupssocial housing lettings, service charge income, market renta strengthened Whistleblowing Policy; and the associations financial position means that this islettings or amortization of government grant, is recorded in approval at the 2020 AGM for the CEO and CFO Regular review and monitoring of liquidity and realistic. They have also concluded that there are no materialthe wrong period and the risk that Group management may to become executive Board Directors, increasingcash forecasting; uncertainties that could have cast significant doubt overbe in a position to make inappropriate accounting entries.transparency and accountability at Board level; their ability to continue as a going concern for at least a yearWe did not identify any additional fraud risks.a refreshed Risk Management Framework, leading approval of CHPs Anti-Fraud, Bribery, Corruption andfrom the date of approval of the financial statements (theIn determining the audit procedures we took into account to clearly defined responsibilities for identifying,Money Laundering Policy; going concern period). the results of our evaluation and testing of the operating evaluating, and controlling significant risks; self-assessment against, and compliance with, theIn our evaluation of the Boards conclusions, we consideredeffectiveness of some of the Group-wide fraud risk Governance and Financial Viability Standard and thethe inherent risks to the groups business model andmanagement controls. quarterly reviews of the risk register by the LeadershipNHF Code of Governance; analysed how those risks might affect the groups andWe also performed procedures including: Team, Audit and Risk Committee, and Board; the associations financial resources or ability to continueinterrogation of high-risk areas by the Audit anda Building Safety Compliance Framework, along withoperations over the going concern period.Identifying journal entries and other adjustments to test Risk Committee; the six key building safety policies for; gas and heatingOur conclusions based on this work: based on risk criteria and comparing the identifiedsystems, electrical, asbestos, fire safety, water hygienewe consider that the Boards use of the going concernentries to supporting documentation. These includedrobust strategic and business planning processes,and lift safety. basis of accounting in the preparation of the financialthose posted to seldom used accounts and year end including regular stress testing, against detailed financialThe Audit and Risk Committee has received the Leadershipstatements is appropriate; material journals.budgets and long-term forecasts; Teams annual review of the effectiveness of the systemwe have not identified, and concur with the BoardsAssessing significant accounting estimates for bias.of internal control, together with the annual report of theassessment that there is not, a material uncertainty internal auditor and has reported on these to the Board.related to events or conditions that, individually or 36 37'