In a regulatory notice published today (31 March 2023), the Regulator of Social Housing has concluded that Rapport Housing and Care has breached the governance and financial viability standard.
The regulator’s investigation found a series of failures in Rapport’s governance and financial management, which has led to significant liquidity issues.
Rapport did not carry out robust stress testing on its business plan, failed to properly consider the implications of taking on new liabilities, and did not plan appropriately for the impact this would have on its business and regulatory compliance.
These issues demonstrate a lack of effective oversight by Rapport’s board, and the regulator has concluded that it failed to manage its affairs with appropriate skill, independence and foresight. The regulator has used its powers to appoint interim officers to the board, to give Rapport additional skills and capacity to address these failings.
Harold Brown, Senior Assistant Director for Investigations and Enforcement, said:
This is a fundamental failure of governance by Rapport, including ineffective management of its financial risks which led to significant liquidity issues. Rapport needs to address these issues urgently and we are working with the provider intensively to ensure that it does so.
As part of this approach we have appointed statutory officers to strengthen Rapport’s board, to help provide the capacity needed to support the management of its financial position, ensure that tenants remain safe, and address weaknesses in its governance.
