URH is an arms length management organisation (ALMO) owned by Lambeth Council. URH operates a management agreement for the provision of delegated services. The individual resident management organisations (RMOs) each have their own management agreement with the council. URH acts as the council's agent for the monitoring, supervision, and support of the four RMOs.

The governing body is the URH Board of Directors. This comprises nominees from the RMOs, nominees from 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 as follows:

• 50 per cent of directors who are nominees of the RMOs
• 25 per cent of directors who are nominees of Lambeth Council
• 25 per cent 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.

Chart showing the main relationships between URH, Lambeth Council and the four RMOs: