5 Directors' Report
Accordingly, the directors continue to adopt the going concern basis in preparing the Group’s consolidated financial statements. Auditor BDO LLP has expressed its willingness to continue in office as auditor to Anchor. Disclosure of information to auditors At the time of approval of this report: • So far as the Board members are aware, there is no relevant audit information of which Anchor’s auditor is unaware. • The Board members have taken all steps that they ought to have taken as directors to make themselves aware of any relevant audit information (and to establish that Anchor’s auditor is aware of that information). • The Board members consider that the annual report is fair, balanced and understandable and provides the information necessary to assess the Group’s position and performance, business model and strategy. Registered provider and co-operative and community benefit society Board members’ responsibilities The Board members are responsible for preparing the report of the Board and the financial statements in accordance with applicable law and regulations. Co-operative and Community Benefit Society law and social housing legislation require the Board members to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). In preparing these financial statements, the Board members are required to: • Select suitable accounting policies and then apply them consistently. Make judgements and accounting estimates that are reasonable and prudent. • State whether applicable UK Accounting Standards and the Statement of Recommended Practice: Accounting by Registered Social Housing Providers 2018 have been followed, subject to any material departures disclosed and explained in the financial statements. • Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group and association will continue in business. The Board members are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and association’s transactions and disclose with reasonable accuracy, at any time, the financial position of the Group and association and enable them to ensure that the financial statements comply with the Co-operative and Community Benefit Societies Act 2014, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2022.
They are also responsible for safeguarding the assets of the Group and association and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Board is responsible for ensuring that the report of the Board is prepared in accordance with the Statement of Recommended Practice: Accounting by Registered Social Housing Providers 2018 and the Accounting Direction for Private Registered Providers of Social Housing 2022 (adopted one year early). Financial statements are published on the Group and association’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the Group and association’s website is the responsibility of the Board members. The Board members' responsibility also extends to the ongoing integrity of the financial statements contained therein. Statement of internal control The Board is responsible for establishing and maintaining the effectiveness of the Group’s system of risk management and internal controls. The system is designed to manage, rather than eliminate, the risks of failure to achieve business objectives, failure to safeguard the organisation’s assets and failure to produce reliable financial and management information. It provides reasonable, and not absolute, assurance against material misstatement or loss. The Board reviews the effectiveness of the system of internal control annually. The Audit & Risk Committee’s (ARC) terms of reference include the duty to oversee, gain assurance and report to the Board on the effectiveness of the system of internal control throughout the Group. Anchor Board and ARC receive assurance that internal controls are operating effectively and risk is being managed through a variety of sources, the principal ones being: • Annual external audit of the financial statements. • Internal audit programme (Anchor sources internal audit services from a third-party provider). • Annual self-assessments of compliance with relevant laws and regulations. • Appointing third party specialists to provide assurance on particular areas. Examples include cyber security and property compliance certification. The Group operates ongoing processes for identifying, evaluating and managing the significant risks that it faces. They have been in place for the year to 31 March 2024 and up to the date of the approval of the Annual Report and the Group financial statements. The Board and ARC review strategic risks and key risk indicators at least quarterly. ARC oversees the relationship with and receives reports from the internal auditor. Internal audit reports, recommendations and management responses are reported to ARC. Management actions for all high and medium recommendations are verified by the internal auditors and tracked through to completion by ARC.
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