Lanarkshire Housing Association has implemented component accounting software from Real Asset Management in a drive to tighten its current processes and maintain compliance with FRS 102.
LHA had reached a stage where its £28 million asset base, comprising myriad components such as land, roofs, windows, kitchens, heating systems and bathrooms, needed a more rigorous and intelligent solution than its existing spreadsheet-based processes.
Laurie Boles, finance and corporate services director, Lanarkshire Housing Association, said, “We were looking for an IT supplier with experience of the social housing sector as well as a solution that provides value for money, is easy to use, intuitive and flexible in query access and reporting.
“We evaluated a couple of systems but RAM was chosen because of its track record in delivering component accounting software in housing. The defining factor was seeing it in a live environment and obtaining good feedback from RAM’s other housing customers regarding its ease of use and smooth migration.”
RAM’s software is now mainly being used for recording and monitoring the component-level detail of LHA’s housing stock. It dovetails into its annual accounting process and enables the organisation to undertake more accurate depreciation forecasting during each financial year, where previously this capacity was hampered due to the complexity of its spreadsheets. Sector-specific functionality such as the quick and easy importing of component replacement assets and the linking of associated component and grant records to the property unit is also heavily used.
Boles said, “The preparation of our ‘fixed-asset note’ used to be time-consuming and required the management of large volumes of data. Since the implementation of RAM’s component accounting software, the preparation time alone has been reduced by two weeks compared with previous years.”
Having the capability within the software to natively produce the financial reports in the right format for its annual accounts provides LHA with the peace of mind regarding FRS 102 compliance. Data integrity is also greatly improved because there is no need for manual interventions; this has been further validated by LHA’s external auditors following its recent year-end audit.
Boles said, “Previously, we approached component accounting as an annual task, but we are now using the software proactively as a forecasting tool in operational and longer-term financial plans.”
