Scottish Energy Performance Certificate (EPC) Accreditation Scheme: operating requirements

Integrity and operational resilience

This section sets out the minimum requirements that prospective Approved Organisations must meet and maintain as part of their approval.

1.1 Financial Integrity

1.1.1 AOs must demonstrate that they have appropriate arrangements in place to ensure financial integrity and continued operation.

1.1.2 AOs must submit an annual financial statement to the Scottish Ministers to demonstrate their ongoing viability.

1.2 Operational resilience/business continuity

1.2.1 AOs must have provisions in place to minimise disruption to operation as a result of unforeseen circumstances.

1.2.2 AOs must demonstrate that measures are in place within an Operational Resilience Plan to:

• ensure operational continuity in the face of events such as the loss of key staff, staff illness, fire and flood damage
• protect data from unrecoverable loss, unauthorised access or theft; and
• ensure that, in the case of ceasing to trade, core information and resources have been maintained in such a way that a successor organisation can be appointed to take over responsibility for ongoing operation of the scheme in respect of both assessor members and the public set out in a Cease to Trade Statement (expanded on below).

1.2.3 AOs must provide the Scottish Ministers with a copy of their Cease to Trade Statement annually. As a minimum, this must include:

• measures that the AO would take in the event of one or more of the categories of building they are approved under ceasing to operate (either voluntarily and involuntarily)
• how membership records will be accessible to the Scottish Ministers following a ‘Cease to Trade’ notification
• the procedures in place for transferring members that have been affected by ‘Cease to Trade’, to other AOs; and
• how the AO will manage data from their own or other scheme members following a ‘Cease to Trade’ notification

1.2.4 In the event of acquiring another AO, the successor AOs must take responsibility for EPCs and any outstanding issues relating to these EPCs produced through the former AO. This would include, for example, resolving any outstanding audit issues or complaints.

1.2.5 AOs are expected to monitor EPC assessor member capacity, and must inform the Scottish Ministers if it is ever expected that a critical drop in this capacity may occur.

1.3 Conflict of interest

1.3.1 AOs must operate to ensure that there is no conflict of interest between their operation as an AO and any other activities they undertake. AOs must inform the Scottish Ministers whether there are any activities that may compromise, or be seen to compromise, their independence as an AO.

1.3.2 Each AO must assess and record such risks, through the maintenance of a Register of Interests between their members and audit personnel/ staff undertaking ‘fit and proper person’ checks, and notify the Scottish Ministers of any such activities and measures put in place to demonstrate that any conflict of interest is resolved. Where necessary, AOs may seek advice from the Scottish Ministers on measures identified.

1.4 Risk management

1.4.1 AOs will have and maintain a Risk Register, which they will share with Scottish Ministers (or auditors acting on behalf of the Scottish Ministers) as and when required.

1.4.2 The purpose of this is to identify and manage risks to the operations of the AO and, as a minimum, should include information on the risk owner, as well as any controls/ mitigations/ planned actions.

1.5 Fraud risk assessment

1.5.1 AOs must have a Fraud Risk Assessment which sets out procedures for identifying, preventing and dealing with fraudulent activities. The Fraud Risk Assessment must be a) provided to the Scottish Ministers when updated and b) made available for inspection on request by Scottish Ministers or a representative acting on their behalf.

1.5.2 AOs must take the appropriate action in line with their Fraud Risk Assessment in the event of suspected fraud. This will include informing the appropriate authorities, for example, local trading standards bodies, as required, or if criminal activity is suspected, the police.

1.5.3 AOs must keep the Scottish Ministers informed of suspected fraudulent or dishonest practice. Where there is more than one AO involved, the AOs impacted must inform the Scottish Ministers and consider which other authorities should be notified.