Risk Impact HowWeManage Risk Data is of poor quality or misinforms business decisions • Inadequate corporate oversight • Regulatory noncompliance and sanction • Reputational damage • Disruption to service delivery • Poor customer service • Financial consequences • Procurement completed for stock condition survey. Survey commenced on site 25 April 2022 • Compliance processes updated with new workbooks to validate data • Improvement programme – Building our Foundation covers Data improvement • Kickstart Data Officers (x2) have worked on Housing and Asset data. Upload due to further identify any issues. Work included – Cross matching data held on tenancy files and against data held in Castleton Housing System • 100% of all tenancies were reviewed • Asset – Inputting information on the Terrier (spreadsheet system for Asset Management) with the Administrator in Repairs working on closing historical works orders • Stock Condition Survey results will further inform us on key component data and building asset data that may be missing FINANCIAL GOLDENRULES ANDRISK TRIGGERS During the year the Board approved the introduction of financial ‘golden rules’ which underpin our approach to financial management. Through our financial planning, we ensure that these rules are harmonisedwith our corporate plan and objectives so that, in effect, they comprise the building blocks of our financial strategy. This approach helps us to preserve financial resilience into the long term. The golden rules have been set in the first instance against our financial loan covenants and a risk trigger has been introduced against each which, if breached or forecast to be breached, would trigger risk mitigations being agreed and deployed. Against Earnings Before Interest, Tax, Depreciation & Amortisation Major Repairs Included (EBITDAMRI) Interest Cover the financial golden rule is that performance shall never put Arhag within 25% of the tightest loan covenant limit and a trigger point 45% worse than the limit. Against Gearing the financial golden rule is that performance shall never put Arhag within 5% of the tightest loan covenant limit and a trigger point 10%worse than the limit. We also look to hold available free cash of over £3.5mwith a lower limit of £3.0m. Annual Report 2021-2022 21
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