The Social Housing Regulator has put Allnutt Mill, a small housing co-op in Kent, on its watchlist over “potentially serious governance and financial viability failings“.
Built in Lower Tovil in 1995, the co-op estate has 46 family houses comprising 25 two bed houses, 19 three bed houses and 2 four bed houses.
With fewer than 1,000 social homes, it is classed a small landlord. “We do not issue grades to small landlords and only publish or update regulatory judgements where we consider there to be serious weaknesses or failings in a landlord’s delivery of the outcomes of our standards,“ said the regulator in a notice on its website.
The notice follows an investigation by the regulator which found that “Allnutt Mill is not delivering the required outcomes of the Governance and Financial Viability Standard”.
It added: “It is our judgement that Allnutt Mill has not managed its resources effectively to ensure its viability can be maintained, and does not have effective governance arrangements.
“Allnutt Mill has not been able to demonstrate that it has managed its affairs with an appropriate degree of skill, independence, diligence, effectiveness, prudence and foresight. This has led to a failure to ensure it has an appropriate, robust and prudent business planning, risk and internal control framework in place that ensures access to sufficient liquidity at all times.”
The regulator says it began its responsive engagement with the co-op in November 2024, “following information being provided to us via a third party”. The investigation included a review of documentation provided by the co-op and discussions with its chair.
“From the evidence gained from the investigation,” the regulator adds, “it is our judgement that Allnutt Mill has not demonstrated appropriate internal control over its spending which has led to a significant deterioration of its liquidity position.”
The regulator added that Allnutt Mill has failed to ensure apppropriate oversight of performance against budget of the managing agent it uses for some functions of its business including the preparation of ongoing financial information and certain aspects of procurement. “The inadequacies in financial monitoring and committee scrutiny has resulted in Allnutt Mill now having to manage its cash carefully in order to meet its obligations,” it adds.
“During our investigation Allnutt Mill has been unable to provide routine financial information, including an up to date cashflow forecast or a complete understanding of its current liabilities. It is therefore unable to demonstrate an ability to manage its future liquidity position appropriately and its committee is unable to make informed strategic decisions.”
The report says the “lack of effective committee oversight and management of a key organisational risk is a fundamental failure of governance“, adding, “We will continue to work intensively with Allnutt Mill as it works to address the issues identified in this judgement. Allnutt Mill has shown a willingness to work with us.“
Allnutt Mill has been contacted for comment.