Governance and leadership
URH is an in-house arms length company owned by Lambeth Council which operates a management agreement for the provision of delegated services. The individual RMOs each have their own management agreement with the council. URH acts as the council’s agent for the monitoring, supervision, and support of RMOs.
The governing body of URH is its Board of Directors. This comprises nominees of the RMOs and the council, and elected independent directors who bring particular skills and expertise to the board.
The council and the RMOs have agreed to maintain a balance of membership on the URH Board of Directors which is comprised of:
- 50% of directors who are nominees of the RMOs
- 25% of directors who are nominees of Lambeth Council
- 25% of directors who are independent directors
Internal Control
URH will be responsible for the administration of the payment of management fees and estate service costs to the RMOs on behalf of the council. URH will also need to manage its own running costs of approximately £600,000 a year, and it will be the council’s agent for the investment of some £8m a year on the capital programme.
URH will need to set the highest standards of financial control and probity.
The board has adopted financial regulations, a scheme of delegation, and procurement procedures which will support the overall framework of internal control.
Regular reporting to the board and to the council will highlight any movements out of line with agreed budgets.
The URH Board will also adopt a risk management approach to all its activities. The assessed risks will provide a guide to develop a programme of internal audit to support management and to assist with establishing systems of control. It will also guide the work of URH’s external auditors in their audit to provide assurance to the council as owners of the company, and to wider stakeholders.