Yorkshire-based housing association enlists RAM's asset management software to adhere to SoRP's component accounting guidelines
Broadacres Housing Association, a charitable provider of social housing in North Yorkshire, has selected fixed asset management software from Real Asset Management (RAM) to manage its £160 million asset base in line with the Statement of Recommended Practice (SoRP). It offers the association a robust asset register, providing the component accounting detail required to meet the new SoRP guidelines.
Broadacres Housing Association, operated under charitable rules, provides a comprehensive range of services to a network of over 5,000 homes across North Yorkshire. The Broadacres vision is "To deliver an individual service which makes a real difference to people's lives" and offers homes for rent, shared ownership and outright sale. The association provides general needs properties and homes for those with mental health problems, learning disabilities and the elderly and prides itself on its customer care, a feat well recognised by the local community.
With component accounting becoming statutory across housing associations, Richard Armitage, Financial Performance Manager at Broadacres explains the reasons behind the latest purchase. "At present we have a housing management system in place, but we knew that inevitably we would need to adhere to the new Statement of Recommended Practice guidelines and wanted a solution for this specific purpose. The software from RAM offers us a user-friendly and simple solution for component accounting and with a solid foothold in the housing market already, we knew it was a name we could trust."
Richard adds "It was imperative that we invested in a solution that was not only SoRP compliant but had the ability to streamline our business. We looked around at the opportunities available to us and the software from RAM appeared to be the leader in the market. RAM dominated housing conferences and appeared to have a strong knowledge of SoRP guidelines and the changing landscape of housing associations, vital when enlisting a partner for a task of this scale."
Under the new SoRP rulings, Broadacres will be obliged to adhere to the changes required in asset recording. Where a building is currently classed as a single asset, under the new guidelines, anything deemed replaceable will be classed as a separate asset, changing 5,000 properties into upwards of 35,000 assets. Despite the deadline being several months away for the association, the sheer volume of the task is driving it to install software ahead of the deadline. As Richard explains, "Dividing our already extensive asset register into components will be inevitably time-consuming. By implementing the software from RAM now, we hope to streamline this process and have the SoRP-compliant system in place prior to the proposed deadline. In doing so, we hope to see a smooth transition to component accounting in the coming months."
Richard concludes, "At present we aim to utilise Asset4000 for component accounting alone. However, I am aware that in time the system will help us with IFRS compliance too. This was a fundamental driving factor behind the purchase from RAM. It has implemented countless systems into housing associations and it is comforting to be involved with a reputable company with a strong knowledge of component accounting procedures."