Housing and Regeneration Bill

House of Commons

Session 2007 - 08
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Other Bills before Parliament

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
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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
15
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.
20
(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
30
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
15
(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.
20
(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.
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(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.
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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
30
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
35
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.
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(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.
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(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
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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

35

(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)).
20
(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

25

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

35

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
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(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.
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(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—
25
(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.
30
(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)).