External Audit Services

Description

Southern Housing are seeking to procure External Audit Services to undertake an independent audit of Southern Housing and its related subsidiaries. Southern Housing was formed in December 2022 following the merger of Optivo and Southern Housing Group. Our history stretches back to the early 20th century and over 120 years later our social purpose of helping those in housing need remains. Southern Housing now owns over 80,000 homes and serves 167,000 residents across London, the South East, the Midlands and the Isle of Wight. Our merger has enabled us to deepen ties in our key communities. There are two PIE entities within the Group - Southern Housing and Optivo Finance PLC. The group is also working on consolidating the group structure. Current subsidiaries include: 1. Optivo Finance PLC – bond issuing vehicle 2. Southern Home Ownership Ltd – Non-charitable Registered Provider - develops, sells and manages home ownership properties T/O £154m 3. Optivo Development Services Ltd – Private Limited Company - design and build T/o - £108m4. Southern Housing Construction Limited - Private Limited Company - operates in London and throughout Southeast England providing a construction service to the companies within Southern Housing T/O £2.7m 4. Lamborn Estates Limited – Private Limited Company - developing and selling for Open Market Sale, only 1 live scheme currently, possibly close before this audit, T/o £2m 5. Crystal Palace Housing Association – Non-charitable Registered Provider - 262 units all historic shared ownership homes T/0 £1m 6. Amicus Group – Charitable Registered Provider - 1 home (holds cash and loans back to parent) 7. Spruce Homes Limited – Private Limited Company - market rent T/O £1.3m 8. Middlesex First Ltd – Community Benefit Society - provides accommodation at 3 student halls T/O £7m 9. Fresh Visions People Ltd – charity, income £0.3m 10. Linked Charities × 5 a. Samuel Lewis Foundation – Charity, 340 homes, T/o £2m b. The Fellowship Houses Trust – Charitable Registered Provider - 58 homes T/O £420k c. Hewitt Homes – Charitable Registered Provider - 49 homes T/O £380k d. Charity of Julia Spicer Almshouse – Charitable Registered Provider - 14 homes T/O £79k e. Eason Gruaz Homes – Charity - 8 homes T/O £30k 11. Southern Space Ltd - Private Limited Company - The Company holds a one third interest in Triathlon Homes LLP which owns and manages the social housing units within the East Village in Stratford, East London - Triathlon Homes LLP – 33% partnership via Southern Space Ltd – not part of the tender. 12. Affinity Housing Services (Reading) and Affinity Reading Holdings Ltd – 50% JV with Abri Group – not part of the tender 13. Optivo Enterprises Ltd – Dormant 14. Optivo Homes Ltd – will be closed before this audit PROPOSED SCOPE OF SERVICES We require an independent audit of Southern Housing and its related subsidiaries and JVs, carried out in accordance with International Standards on Auditing (UK) (ISAs (UK)). The scope of the contract will include: a) External audit annual planning meeting and development of an audit strategy for each year end beginning with the year ending 31st March 2027 with a planned approach to key audit risks and analysis of previous findings/ recommendations b) Meeting to discuss and agree accounting policies pre year end c) Conducting the interim audit – expect part to be carried out on site d) Attendance at pre year end Audit & Risk Committee (ARC) meeting to present annual audit approach and plan (anticipating March) e) Conducting year end fieldwork f) Undertaking an audit of all entities in the corporate structure (entities to be confirmed annually) including group consolidation, excluding Triathlon Homes LLP and Affinity Reading in compliance with legal and accounting guidance/best practice. g) Undertaking an annual audit of our Euro Medium Term Note (EMTN) programme h) Liaising with Southern Housing’s Director of Internal Audit and consideration of reports produced to understand their scope of works and any significant findings, their view on and contribution to the overall control environment i) Audit of annual covenant certificates for lenders j) Attendance at final clearance meeting k) Attendance at post year end ARC (anticipating July) meeting to present completion report l) Annual meeting with the Chair of ARC, with potential need for ad hoc calls during the year m) Ad hoc meetings / calls as required by ARC / Executive / Financial Services The scope of the contract specifically excludes: a) Grant audits b) Service charge audit. The chosen supplier will be an established, high-quality firm that not only provides an audit opinion on Southern Housing but also offers a professional and informed sounding board to question existing practices and offers external perspectives. It will also provide proactive support to the Audit & Risk Committee on the sector as a whole and keep management abreast of relevant changes in accounting and auditing standards which could impact the organisation. CONTRACT PERIOD The contract will be for a maximum period of 5 years for the years ending 31 March 2027, 2028, 2029, 2030 and 2031. The contract will be subject to the annual re-appointment of the external auditors by the Southern Housing Board. PROCUREMENT ROUTE Southern Housing will be conducting the Procurement Process through Open Procedure in accordance with the Procurement Act 2023. The form of contract will be the Southern Housing standard form of services contract with amendments. PROCUREMENT TIMETABLE We are seeking to publish the tender by 18 December 2025 and are targeting to award the contract by 31 March 2026.

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