The Regulator of Social Housing lacks assurance that Octavia’s financial resources and systems are adequate. These issues have led to the provider producing poor-quality and untimely financial data, and setting unrealistic budgets.
RSH also lacks assurance that Octavia has a robust financial plan that it is capable of delivering. Its financial performance has been weaker than budgeted and this has impacted its performance against its loan covenants.
Octavia is working to address the governance and financial viability issues identified by RSH’s investigation, in order to ensure its long-term financial viability.
Harold Brown, Senior Assistant Director for Investigations and Enforcement, said: “We found significant issues with Octavia’s financial planning, as well as a failure by its board to have appropriate oversight of the organisation. We expect Octavia to address these issues promptly and return to compliance with our standards.”