RSL Services:

An essential task for all RSLs is to prepare financial models to ensure they will continue to be viable in the future.

The new performance standards, which form the key reference point not only to judge the quality of performance and service provision but the reference point for any necessary statutory intervention, cover this specific area. Guiding Standard 4.6, Financial Viability, requires RSLs to make good use of long term cashflows and sensitivity analysis to test assumptions and demonstrate viability. This also links with Guiding Standard 1.1, Planning & Performance, in which long term costed maintenance programmes must link into the financial planning process.

As Chartered Accountants, Alexander Sloan have all the experience required to prepare a fully costed models with the relevant level of sensitivity analysis. We have prepared such models for several RSLs, been asked to comment on in-house models, and provided staff and committee training on the topic.

Interested?

If you would like to discuss your requirements with us, please e-mail Rachel Osprey (ro@alexandersloan.co.uk) or Phil Morrice (pm@alexandersloan.co.uk) who will be pleased to discuss your requirements, whether it is to review and comment on your existing model or prepare a brand new one.

Our Audit Managers, Rachel Osprey and Phil Morrice, are experienced both in use of excel spreadsheets and in the RSL sector and can prepare models which will enable your association to meet the necessary performance criteria, and provide a vital business tool which will consider, amongst other factors, the following :

• Number of units by category
• Development programme and affect on future revenue and costs
• Assumptions on right to buy sales
• Identify variable costs (e.g. reactive repairs) and fixed or semi fixed costs (e.g. salaries, office rent)
• Vary assumptions on future inflation and interest rates on loans/deposits
• The future major repair programme - on occasions this may exceed 30 years and extend the life of the financial model depending on the nature and cost of such major work.