F3-35/99 Supported Housing Management Grant (SHMG) Compliance Appraisal

Provides Guidance on the Supported Housing Management Grant (SHMG) Compliance Appraisal which comes into effect from December 1999.

31 Dec 1999

Distributed to: All registered social landlords (RSLs) and local authorities.

1. Introduction

1.1. The Supported Housing Management Grant (SHMG) Compliance Appraisal is a new Housing Corporation process which we are introducing from December 1999. It is an additional element in a range of controls designed to ensure that public funds are properly spent on supported housing schemes which meet the required standards. Details of the SHMG Review and annual reconciliation process can be found in the Guide to Supported Housing.

1.2. This circular sets out the aims of the SHMG Compliance Appraisal and explains how the process will be conducted. We are currently finalising the long term arrangements for linking the SHMG Compliance Appraisal function to other Corporation activities (e.g. regulatory visits and the SHMG Review). We will issue a further circular if additional guidance is required.

2. Aims of the SHMG Compliance Appraisal

2.1. The aims of the SHMG Compliance Appraisal process are:

to test compliance with the SHMG eligibility criteria;
to check the validity of an RSL's self-certified submissions.

2.2. Details of the SHMG eligibility criteria are set out in the Corporation's 'Guide to Supported Housing' and a number cross reference to the Corporation's performance standards. Any instances of non-compliance with performance standards will be dealt with by the relevant staff in the regional regulation team.

2.3. The Housing Corporation plans to appraise RSLs in receipt of SHMG every 3 years, subject to continued funding through SHMG.

3. Coverage of the Compliance Appraisal

3.1. SHMG is paid in respect of an individual supported housing scheme or a management group, consisting of a number of projects. Each scheme or management group represents an individual approval (identified by a scheme number) for SHMG funding. For each approval the level of SHMG has been agreed for :

a specified number of units;
a specified client group;
a specified staff to tenant ratio;
specific properties (except for floating support schemes).

3.2. We will check the accuracy of the information submitted to the Corporation in respect of the details listed above. We will also examine the RSL's practices in a number of areas to establish whether their performance meets the SHMG eligibility criteria for the scheme(s) or management group(s) being audited.

3.3. The number of schemes to be audited will be in proportion to the total number of an RSL's SHMG approvals (see 3.1 above ).

4. Procedures

4.1. The Corporation will give a minimum of 6 weeks notice of a visit and a mutually convenient date will then be agreed.

4.2. The schemes to be examined will be identified by the Corporation in advance of the visit. Additional schemes may be selected once the SHMG Compliance Appraisal is underway.

4.3. The SHMG Compliance Appraisal will involve:

examination of documentation including relevant procedures and records;
interviews with staff;
a visit to the project(s) where appropriate.

4.4. The operational areas covered will include:

aims and objectives of the scheme(s) and how performance is monitored against these;
agency management arrangements, including the operation of the management agreement;
lettings, including procedures and practice;
residents rights;
staffing, including recruitment and training procedures;
the intensive housing management service (see the 'Guide to Supported Housing' for definitions);
budgeting and financial control at the scheme (or management group) level.

4.5. The letter of notification will set out the documentation which the RSL will be asked to provide, either prior to or at the time of the visit. This will include both tenant and staff files. The appraisers will interview a mixture of centrally based and project based staff.

5. Reporting Our Findings

We will provide the RSL with a written report within 6 weeks of completing the SHMG Compliance Appraisal visit. The report will identify any concerns regarding compliance, specify remedial action and highlight good or innovative practice where appropriate.

6. Enquiries

6.1. Please direct any enquiries about this circular to the Corporation's Supported Housing Advice Line on 020 7393 2037 or the appropriate Regional Office of the Corporation.