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Housing and Regeneration Bill


Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 4 — Registered providers

53

 

130     

Charity

(1)   

This section applies to a non-profit registered provider which is a registered

charity.

(2)   

The charity shall—

(a)   

keep proper accounting records of its transactions and its assets and

5

liabilities in relation to its housing activities, and

(b)   

maintain a satisfactory system of control of those records, its cash

holdings and its receipts and remittances in relation to those activities.

(3)   

For each period of account the charity shall prepare—

(a)   

a revenue account giving a true and fair view of the charity’s income

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and expenditure during the period, so far as relating to its housing

activities, and

(b)   

a balance sheet giving a true and fair view of the state of affairs of the

charity as at the end of the period.

(4)   

The revenue account and balance sheet must be signed by at least two directors

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or trustees.

(5)   

“Period of account” means—

(a)   

a period of 12 months, or

(b)   

such other period not less than 6 months nor more than 18 as the charity

may, with the consent of the regulator, determine.

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(6)   

This section does not affect any obligation under sections 41 to 45 of the

Charities Act 1993 (c. 10) (charity accounts).

131     

Charity: audit

(1)   

This section applies in relation to the accounts of a charity under section 130(3).

(2)   

If Condition 1 or 2 is met, the charity shall cause a qualified person to audit the

25

accounts and report on them in accordance with section 132.

(3)   

If neither Condition is met, the charity shall  cause a qualified person (“the

reporting accountant”) to report on the accounts in accordance with section

133.

(4)   

Condition 1 is met if the accounts relate to a period during which the charity’s

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gross income arising in connection with its housing activities was greater than

the sum specified in section 43(1)(a) of the Charities Act 1993.

(5)   

Condition 2 is met if—

(a)   

the accounts relate to a period during which the charity’s gross income

arising in connection with its housing activities was greater than the

35

accounts threshold as defined by section 43(1) of the Charities Act 1993,

and

(b)   

at the end of the period the aggregate value of its assets (before

deduction of liabilities) in respect of its housing activities was greater

than the sum specified in section 43(1)(b).

40

(6)   

“Gross income” has the same meaning as in section 43 of the Charities Act 1993.

(7)   

“Qualified person” means a person professionally qualified as an accountant.

 
 

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 4 — Registered providers

54

 

132     

Charity: auditor’s report

(1)   

An auditor appointed for the purposes of section 131(2) or 134(2) in respect of

a charity’s accounts shall make a report to the charity in accordance with this

section.

(2)   

The report must state—

5

(a)   

whether the revenue account gives a true and fair view of the charity’s

income and expenditure, so far as relating to its housing activities, and

(b)   

whether the balance sheet gives a true and fair view of the state of

affairs of the charity as at the end of the period to which the accounts

relate.

10

(3)   

The report must give the name of the auditor and be signed.

(4)   

The auditor shall, in preparing the report, carry out such investigations as are

necessary to form an opinion as to—

(a)   

whether the charity has complied with section 130(2) during the period

to which the accounts relate, and

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(b)   

whether the accounts are in accordance with accounting records kept

under section 130(2)(a).

(5)   

If the auditor thinks that the charity has not complied section 130(2) or that the

accounts are not in accordance with its accounting records, that must be stated

in the report.

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(6)   

If the auditor fails to obtain all the information and explanations which the

auditor thinks necessary for the purposes of the audit, that must be stated in

the report.

133     

Charity: accountant’s report

(1)   

A reporting accountant appointed for the purposes of section 131(3) in respect

25

of a charity’s accounts shall make a report to the charity in accordance with this

section.

(2)   

The report must state whether the accounts are in accordance with accounting

records kept under section 130(2)(a).

(3)   

On the basis of the information in the accounting records the report must also

30

state whether—

(a)   

the accounts comply with the requirements of the Charities Act 1993;

(b)   

section 131(3) applied in respect of the accounts.

(4)   

The report must give the name of the reporting accountant and be signed.

(5)   

If the reporting accountant fails to obtain all the information and explanations

35

which the reporting accountant thinks necessary for the purposes of preparing

the report, that must be stated in the report.

134     

Charity: extraordinary audit

(1)   

This section applies where, in accordance with section 131(3), a charity

appoints a reporting accountant to prepare a report in respect of any accounts.

40

(2)   

The regulator may require the charity to—

 
 

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 4 — Registered providers

55

 

(a)   

cause a qualified person to audit the accounts and prepare a report on

them in accordance with section 132, and

(b)   

send a copy of the report to the regulator by a specified date.

(3)   

A requirement under subsection (2) may be imposed only during the period of

account following the period to which the accounts relate.

5

(4)   

In this section—

“period of account” has the meaning given by section 130(5), and

“qualified person” has the meaning given by section 131(7).

135     

Charity: auditor’s powers

(1)   

This section applies to a person who is appointed by a charity for the purposes

10

of section 131(2) or (3) or 134(2).

(2)   

The charity must grant the person access to its documents, if or in so far as they

relate to its housing activities.

(3)   

An officer of the charity must provide such information or explanations as the

person thinks necessary.

15

136     

Offences

(1)   

A registered provider commits an offence if it fails, without reasonable excuse,

to comply with—

(a)   

a direction under section 127,

(b)   

a provision listed in subsection (2), or

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(c)   

a requirement imposed under a provision listed in subsection (3).

(2)   

The provisions referred to in subsection (1)(b) are—

(a)   

section 128;

(b)   

section 130;

(c)   

section 131.

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(3)   

The provisions referred to in subsection (1)(c) are—

(a)   

section 129;

(b)   

section 134.

(4)   

If a registered provider fails to comply with a direction, provision or

requirement mentioned in subsection (1) every officer of the registered

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provider is guilty of an offence.

(5)   

It is a defence for an officer to show that the officer did everything that could

reasonably have been expected to ensure compliance by the registered

provider.

(6)   

A person guilty of an offence under this section is liable on summary

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conviction to a fine not exceeding level 5 on the standard scale.

(7)   

Proceedings for an offence may be brought only by or with the consent of—

(a)   

the regulator, or

(b)   

the Director of Public Prosecutions.

 
 

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 4 — Registered providers

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137     

High Court

(1)   

If a registered provider fails to comply with a direction, provision or

requirement mentioned in section 136(1), the High Court may on the

application of the regulator make an order for the purpose of remedying the

failure.

5

(2)   

An order may include provision about costs.

138     

Disclosure

(1)   

This section applies to information that a person has received while acting—

(a)   

as auditor of a non-profit registered provider, or

(b)   

as a reporting accountant in relation to a non-profit registered provider.

10

(2)   

The person may disclose the information to the regulator for a purpose

connected with the regulator’s functions—

(a)   

despite any duty of confidentiality, and

(b)   

whether or not the regulator requests the information.

(3)   

The reference to disclosing information includes expressing an opinion on it.

15

(4)   

“Reporting accountant” means a person who is appointed to prepare a report

which, by virtue of any enactment, has to be prepared in respect of accounts

that are not subject to audit.

Insolvency etc.

139     

Non-profit providers only

20

This group of sections applies only to non-profit registered providers.

140     

Preparatory steps: notice

A step specified in the Table has effect only if the person specified has given

the regulator notice.

 

Step

Person to give notice

 

25

 

Any step, of a kind prescribed for the purposes of this

The person taking the step

 
 

section by the Secretary of State by order, to enforce a

  
 

security over land held by a registered provider

  
 

Presenting a petition for the winding up of a registered

The petitioner

 
 

provider which is—

  

30

 

(a)   

a registered company, or

  
 

(b)   

an industrial and provident society

  
 

Passing a resolution for the winding up of a registered

The registered provider

 
 

provider which is—

  
 

(a)   

a registered company, or

  

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(b)   

an industrial and provident society

  
 

But not the passing of a resolution for winding-up

  
 

where the regulator’s consent is required under section

  
 

156 or 158

  
 
 

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 4 — Registered providers

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Step

Person to give notice

 
 

Making an administration application in accordance

The applicant

 
 

with paragraph 12 of Schedule B1 to the Insolvency Act

  
 

1986 in respect of a registered provider which is a

  
 

registered company

  

5

 

Appointing an administrator under paragraph 14 or 22

The person making the

 
 

of that Schedule in respect of a registered provider

appointment

 
 

which is a registered company

  
 

Filing with the court a copy of a notice of intention to

The person filing the notice

 
 

appoint a person under either of those paragraphs in

  

10

 

respect of a registered provider which is a registered

  
 

company

  
 

141     

Moratorium

(1)   

If a step specified in the Table below is taken in respect of a registered provider,

a moratorium on the disposal of land by the provider begins.

15

(2)   

Where a step specified in the Table is taken in respect of a registered provider,

the person specified must give the regulator notice as soon as is reasonably

practicable.

(3)   

If the notice is not given the step is not invalidated (but the end of the

moratorium depends on the notice being given — see section 142(2)).

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(4)   

The regulator shall give the HCA a copy of any notice received under this

section.

 

Step

Person

 
 

Any step, of a kind prescribed for the purposes of this

The person taking the step

 
 

section by the Secretary of State by order, to enforce a

  

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security over land held by a registered provider

  
 

The making of an order for winding up a registered

The petitioner

 
 

provider which is—

  
 

(a)   

a registered company, or

  
 

(b)   

an industrial and provident society

  

30

 

The passing a resolution for the winding up of a

The registered provider

 
 

registered provider which is—

  
 

(a)   

a registered company, or

  
 

(b)   

an industrial and provident society

  
 

The making of an administration order in accordance

The person who applied for the

 

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with paragraph 13 of Schedule B1 to the Insolvency Act

order

 
 

1986 in respect of a registered provider which is a

  
 

registered company

  
 

The appointment of an administrator under paragraph

The person making the

 
 

14 or 22 of that Schedule in respect of a registered

appointment

 

40

 

provider which is a registered company

  

142     

Duration of moratorium

(1)   

The moratorium begins when the step specified in section 141 is taken.

 
 

Housing and Regeneration Bill
Part 2 — Regulation of Social Housing
Chapter 4 — Registered providers

58

 

(2)   

The moratorium ends (unless extended or cancelled) with the period of 28 days

beginning with the day on which the regulator receives notice under section

141(2).

(3)   

During a moratorium the regulator may extend it (or further extend it) for a

specified period, with the consent of each secured creditor of the registered

5

provider.

(4)   

If the regulator extends a moratorium it shall notify—

(a)   

the registered provider,

(b)   

any liquidator, administrator, administrative receiver or receiver

appointed in respect of the registered provider or its land, and

10

(c)   

the HCA.

(5)   

During a moratorium the regulator may cancel it if satisfied that it is

unnecessary to make proposals under section 146.

(6)   

Before cancelling a moratorium the regulator must consult the person who

took the step that triggered it.

15

(7)   

When a moratorium ends the regulator shall give notice, and (except in the case

of cancellation) an explanation of section 143, to—

(a)   

the registered provider, and

(b)   

its secured creditors.

(8)   

When a moratorium ends the regulator shall also give notice to the HCA.

20

(9)   

Taking a further step during a moratorium does not—

(a)   

start a new moratorium, or

(b)   

alter the existing moratorium’s duration.

143     

Further moratorium

(1)   

This section applies if—

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(a)   

a moratorium in respect of a registered provider ends otherwise than

by cancellation, and

(b)   

a further step specified in section 141 is taken in relation to the provider

within the period of 3 years beginning with the end of the moratorium.

(2)   

The further step does not automatically trigger a further moratorium.

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(3)   

But the regulator may impose a further moratorium for a specified period, if

each secured creditor of the registered provider consents.

(4)   

If the regulator imposes a new moratorium it shall notify—

(a)   

the registered provider,

(b)   

any liquidator, administrator, administrative receiver or receiver

35

appointed in respect of the registered provider or any of its land, and

(c)   

the HCA.

(5)   

This group of sections applies to a further moratorium as to a first moratorium

(except for section 142(2)).

 
 

 
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