Letter of Agreement on Co Ownership by yvw10620

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									                             Procedural Compliance Checklist
                                                 RSM
                                         (Rent, Sale & MRMW)

                                                                                                                                     Version 1.0 July 2010


                          For use by 'Independent Auditors' undertaking self-assessment procedural compliance audits under
                                                Programme Partnering Agreement (PPA) procedures




   The purpose of this checklist is to identify specific checks to be undertaken in order to determine whether all procedural requirements and relevant
                             funding conditions as set out in the Affordable Housing Capital Funding Guide have been met.



                                                                            Date
Relevant Audit Year                                                         organisation/scheme
                                                                            file audited


Partnership or                                                              Partnership I.D. or
Organisation name                                                           IMS Organisation code

Name and address of
                                                                            Scheme IMS No.
scheme
Start on Site event                                                         Practical Completion
date                                     If not applicable enter comment    event date                                 If 'N/A' enter comment
(enter latest SOS event                                                     (enter N/A or latest PC event
recorded in IMS or N/A)                                                     recorded in IMS)


Developing RP name                                                          Developing RP code


Type of housing                                                             Development type
e.g. Sale/NBHB, Rent, MRMW                                                  e.g. newbuild, refurb


                                                                            Full contact details of
Independent Auditors
                                                                            person completing
Business Name
                                                                            checklist
                                                                         Note

  In addressing the checks set out below please answer either 'Yes' or 'No' as appropriate. Where checks are considered to be not applicable to the
                                 scheme then a 'No' response should be inserted and justifying comments inserted.
                      The Comments box should also be used to explain deficiencies or shortfalls in supporting documentation.
The Auditors report should summarise all of the deficiencies, shortfalls and instances where specific checks were considered to be not
                                                                     applicable

       Item no.              Timeliness of Grant Claim            Yes / No   Additional notes for Auditors             Comments



                        Solicitors completion certificate or                 Check date of
          1             proof of ownership dated before first                exchange/completion of
                        grant claim                                          purchase contracts




                                                                             Check date of possession of site
                        Main contract signed and dated and
                                                                             within signed and dated
          2             contractual possession of site has                   building contract - 'letter of
                        passed to builder prior to grant claim               intent' is unacceptable



                        For lease properties - was a lease
                                                                             Check for written confirmation
                        signed before first grant claim, if not
          3                                                                  from Solicitors that any such
                        was there a legally binding letter                   letter is legally binding.
                        confirming agreement to lease


                        Practical completion certificate issued              Check dates from certificates
                        or independent certification of                      with dates of claims and check
          4                                                                  completion certificate dates
                        completion confirmed by date of final
                                                                             corresponds to building contract
                        grant claim



                        Security of Grant                         Yes / No   Additional notes for Auditors             Comments


                                                                             Check that any specified
                                                                             consents were obtained and
                                                                             either there were no
                        Does the land/property offer 'good                   covenants/restrictions likely to
          5                                                                  impede development or that
                        title'
                                                                             there was relevant indemnity
                                                                             insurance in place. Check
                                                                             Solicitors' Report on Title.


                                                                             Check that there is Solicitor
                        Does the organisation have ownership                 based evidence available that
                        of the property (or where leased has                 completion has taken place at
          6                                                                  the agreed sum. Confirmation
                        secured the lease on the agreed
                                                                             from Solicitor should be dated
                        terms).
                                                                             post-completion
     Is evidence available to confirm that
     the submitted details of number of       Check IMS submission details
     persons, dwellings, types, size, needs   against contract detail, grant
7                                             confirmation and practical
     categories, occupancy & location
                                              completion stage.
     accord with the scheme details as
     designed and procured.

                                               Check rent figures in IMS
                                              against Tenancy agreement.
                                              If no match, please state actual
                                              rents and those on IMS, and
                                              any apparent reason for
     Are the rent figures input to IMS        discrepancies; include RP's
8    substantially the same as the actual     explanation for any
     rents charged                            discrepancies.
                                              When an unregistered body
                                              (URB)) transfers to an RP the
                                              URB should obtain confirmation
                                              of rents from RP before
                                              independent certification.


     Were all necessary Planning Consents
     obtained prior to completion
     replace with:

     a. Was detailed planning permission      Check dates of planning
9                                             approval
     granted prior to initial grant claim

     b. were all reserved matters satisfied
     prior to practical completion



                                              Check dates
                                              Third Party certificate e.g.
     Were Building Regulation approvals
10                                            NHBC Buildmark includes
     obtained prior to completion             confirmation of Building
                                              Regulations sign off




                                              Check whether other consents
                                              apply and whether they were
     Where required, were other specified     obtained as required. (e.g.
11   consents obtained for the relevant       party wall awards, listed
     works                                    building consent, permission to
                                              demolish, agreed remediation
                                              plan with Environ. Agency



                                              Check documentation for
                                              compliance. The general
     Were Funding Conditions complied
12                                            premise should be in favour of
     with                                     compliance unless there are
                                              indications to the contrary.
     TSH schemes: do the lease terms
13   accord with those agreed as the basis                 Check for accordance
     for grant

     MRMW: Where HCA's approval of
     qualifying costs were based upon
                                                           Check contract documents and
14   specified works is documentary                        invoices
     evidence available to indicate that the
     works were carried out as required.

                                                           Check documentation for
     Have relevant expert reports been                     compliance. e.g. NHBC
     obtained where there is documented                    Buildmark certification,
15                                                         valuation/structural reports/site
     evidence of factors that may adversely
                                                           investigation/solicitors report
     affect mortgageability
                                                           etc


     Sundry Conditions                          Yes / No   Additional notes for Auditors       Comments


                                                           Check that calculations are
                                                           present to support the
     Whole life cost - is there evidence that              contention of being above or
16                                                         below the 85% criterion for 100
     this scheme has been assessed
                                                           year life (or 80% for an
                                                           assumed 60 year life)



                                                           Check for evidence to show that
     2012 Construction Commitments
                                                           the principles are being adopted
17   (Affordable Housing Provider version)                 e.g. implemented and actively
     principles adopted                                    monitored (i.e. action plan)



     Newbuild - Have any                                   Check to ensure that there is no
                                                           evidence on files which points
     waivers/variations been requested for
18                                                         towards active non-compliance
     non-compliance with required/agreed                   for which a waiver should have
     standards                                             been sought from the HCA


                                                           Check for evidence on files of
                                                           full compliance and that any
     Refurbishment - Has full compliance
                                                           non-compliance is supported by
19   with required standards been                          reasoned consideration of
     considered                                            suitability for the intended user
                                                           group.

                                                           Check for evidence on files that
                                                           HQI assessments have been
                                                           carried out by an HQI
20   HQI assessments carried out                           experienced person on the basis
                                                           of the scheme designs as (a)
                                                           planned and (b) delivered
                                                                Check for evidence on files that
                                                                at practical completion the HQI
                      Were the relevant HQI scores
         21                                                     scores achieved are no lower
                      achieved                                  than those committed to at bid
                                                                stage.



                                                                Check for evidence on files that
                                                                evidence based BfL
                      Was Building for Life assessment          assessments have been carried
                      based upon the 20 Building for Life       out by a BfL experienced person
         22                                                     at both scheme design and
                      criteria carried out and did it achieve
                                                                completion stage.
                      the required score
                                                                Applicable for 2008/11
                                                                programme approvals




                                                                Check for evidence on files that:
                                                                • Sustainability assessments
                                                                have been carried out by a
                                                                registered assessor at scheme
                                                                design and completion stage,
                                                                e.g. Ecohomes or Code for
                      Newbuild - Does the scheme meet the       Sustainable Homes certificates.
         23                                                     • Code for Sustainable Homes
                      required Sustainability standard
                                                                completion stage certification
                                                                forwarded to BRE.
                                                                • the level achieved is no lower
                                                                than that committed to at
                                                                approval stage




                                                                Check for evidence of
                      Newbuild - Has the relevant Tender
                                                                submission of a completed form
         24           Price Index for Social Housing (TPISH)    for new build schemes however
                      return been submitted to BCIS             procured


Additional checks specific to SALE schemes                      Additional notes for Auditors       Comments


                      Has the percentage of shared
                                                                Check outturn percentage of
         25           ownership sales been updated with         sale against IMS input
                      actual percentages

                      Have the fundamental clauses as
                                                                Check that lease and required
         26           required by the AHCFG been included       clauses are in accord.
                      in Shared Ownership leases

                      Has the RP carried out a suitable         Check for evidence that the HCA
                                                                affordability toolkit or an
                      financial assessment of every
         27                                                     equivalent methodology has
                      applicant and are these assessments       been used to carry out the
                      kept on file for audit purpose            assessment.
                             Are applicants meeting the eligibility
                             requirements listed below:
                             • Purchaser/s unable to purchase
                             suitable property without assistance;                 Check for evidence on files that
             28              • Purchaser/s can afford the mortgage                 these issues have been properly
                             costs involved;                                       considered

                             • Purchaser/s encouraged to purchase
                             maximum share that they can afford



                             Has the RP prioritised applicants'
                             access to this product according to the               Ensure that the evidence is on
             29              existing priority order as set out in                 file.
                             the applicant eligibility section of the
                             AHCFG
Self Build Shared Ownership                                             Yes / No   Additional notes for Auditors      Comments


                                                                                   Supporting documents that
                                                                                   should be kept on file:
                                                                                   • Detail of mortgages being
                                                                                   obtained;
                                                                                   • self builders income;
                                                                                   • info on group training;
                             Has the RP maintained a scheme file
             30                                                                    • 1st time buyers evidence;
                             containing relevant documents?                        • RP's endorsement;
                                                                                   • cost/value relationship;
                                                                                   • copy of membership details;
                                                                                   • governing instruments;
                                                                                   • audited a/c's;
                                                                                   • cert of registration (RFS)



Rural Repurchase Schemes                                                Yes / No   Additional notes for Auditors      Comments




                             Has a valuation report and a letter
                             from RP detailing the surpluses made                  Check documentation for
             31                                                                    compliance.
                             on previous Staircasing transactions
                             been obtained




Independent Auditor
Signature                                                                          Date
(person who completed this
checklist)

Independent Auditor
in Charge                                                                          Date
(Authorised Signatory)

								
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