CIH reviewing key areas of financial management

The CIH claimed there had already been ‘significant progress’ from the checks into budget setting and financial controls across the organisation, and into the performance of its subsidiaries ConsultCIH and Housemark.

The details were contained in a report from the audit and risk board, sent to members last Friday, which highlighted ‘improved performance information and strengthened controls’ as a result.

Jeff James, deputy chief executive of the CIH, said the reviews were just a standard procedure to enhance oversight and not directly related to the funding situation or writedown. ‘Every organisation wants to ensure it’s as effective as it can be – we’re always looking at ways to review, amend and improve our performances,’ he added. 

The audit and risk board’s role is to consider risk issues facing the CIH. The institute’s overall funding fell by £401,000 last year, while it took a £356,000 writedown in the value of its consultancy business, ConsultCIH. 

The board was set up in January 2012 as part of an overhaul of the CIH’s structure, but six of its eight members resigned in April following a dispute over the future of how risk should be handled.

The report said the board ‘has begun to establish its role after unexpected and challenging developments in its first few months,’ but made no further mention of the furore.

Mr James said: ‘We’re trying to concentrate on where the organisation wants to go, and didn’t want to brush over the past, but this is about looking to the future.

‘The report said the CIH’s strategy of investment management had been identified as ‘a key issue on which to gain assurance’. Last year the institute made £437,000 on its investments, which are managed by Charles Stanley,’ he added.

Mr James said the CIH was ‘keen to maximise the benefit’ of its portfolio, which is worth around £4 million and accounts for about 40 per cent of the organisation’s assets. ‘We need to keep an eye on this to make sure it’s giving the right return and type of growth,’ he added.

The board’s report noted that progress has been slower than expected in implementing reforms approved by the membership in 2011, although work on 28 of 32 key issues was complete or on schedule, with mainly procedural issues remaining.

It also said the CIH has appointed a firm to carry out a three-year programme of annual internal audits, which Mr James said would bring the CIH into line with the practice of other similar-sized organisations.