Page: Presented by · 4. SRR Update 4.1 4.2 A new Risk Management Framework was adopted by Board on...
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Board 01 November 2017 BCT Office, 17 Raby Cross, Byker, Newcastle upon Tyne AGENDA 1. Reminder to switch off mobile phones 2. Apologies for absence 3. Declarations of Interest 4. Urgent Items which Board Members wish to raise, not elsewhere on the agenda ITEMS FOR DECISION Page: Presented by: 5. To approve the Minutes of the meeting held 20 September 2017 and Matters Arising 1 – 2 Chair 6. BCT Governance Matters 3 – 4 J Haley 7. Quarterly Strategic Risk Register 5 – 13 J Haley 8. Quarterly Investment Report Including Confidential Appendix A 14 – 19 M Bell 9. Draft Asset Management Strategy Framework 20 – 23 M Bell ITEMS FOR INFORMATION 10. CE Monthly Progress Report 24 – 37 J Haley 11. Quarterly Performance Report & Operational Update 38 – 47 P Pollard 12. Health & Safety Policy Update Q1 & Q2 48 – 52 M Bell 13. AOB CONFIDENTIAL ITEMS FOR DECISION 14. Tender Evaluation for the Provision of External Audit Services C Burns 15. District Heating Upgrade Work Package 3 Cost Evaluation Results M Bell 16. To approve the confidential Minutes of the meeting held 20 September 2017 and Matters Arising Chair CONFIDENTIAL ITEMS FOR INFORMATION 17. Performance & Services Committee Minutes and Actions P Pollard 18. AOB 19. Date and time of the next meeting – 20 December 2017, 5pm – 8pm at the BCT office 20. Board are reminded that the 2017 Board Away Day is on Saturday 18 November
Transcript of Page: Presented by · 4. SRR Update 4.1 4.2 A new Risk Management Framework was adopted by Board on...
Board 01 November 2017 BCT Office, 17 Raby Cross, Byker, Newcastle upon Tyne
AGENDA 1. Reminder to switch off mobile phones
2. Apologies for absence
3. Declarations of Interest
4. Urgent Items which Board Members wish to raise, not elsewhere on the agenda
ITEMS FOR DECISION
Page: Presented by:
5. To approve the Minutes of the meeting held 20 September 2017 and Matters Arising
1 – 2 Chair
6. BCT Governance Matters
3 – 4 J Haley
7. Quarterly Strategic Risk Register
5 – 13 J Haley
8. Quarterly Investment Report Including Confidential Appendix A
14 – 19 M Bell
9. Draft Asset Management Strategy Framework
20 – 23 M Bell
ITEMS FOR INFORMATION
10. CE Monthly Progress Report
24 – 37 J Haley
11. Quarterly Performance Report & Operational Update
38 – 47 P Pollard
12. Health & Safety Policy Update Q1 & Q2
48 – 52 M Bell
13. AOB
CONFIDENTIAL ITEMS FOR DECISION
14. Tender Evaluation for the Provision of External Audit Services
C Burns
15. District Heating Upgrade Work Package 3 Cost Evaluation Results
M Bell
16. To approve the confidential Minutes of the meeting held 20 September 2017 and Matters Arising
Chair
CONFIDENTIAL ITEMS FOR INFORMATION 17. Performance & Services Committee Minutes and Actions
P Pollard
18. AOB
19. Date and time of the next meeting – 20 December 2017, 5pm – 8pm at the BCT office 20. Board are reminded that the 2017 Board Away Day is on Saturday 18 November
Minutes of Board 20 September 2017 6:00pm Board Members Present: Jim Coulter (Chair), Gordon Bell, Alison Smith, Christine Stobbs, Nigel Emmerson, Nick Kemp and Geoff O’Brien. BCT Officers Present: Jill Haley (Chief Executive), Philip Pollard, Michelle Bell, Claire Burns, Gemma Candlish and Jaime Flinn (taking minutes) Observers: James Clifford
1. WELCOME
1.1 The Chair welcomed everyone to the meeting.
2. APOLOGIES FOR ABSENCE
2.1 There were no apologies received.
3. DECLARATIONS OF INTEREST
3.1
There were no declarations of interest.
4. URGENT ITEMS WHICH BOARD MEMBERS WISH TO RAISE
4.1 There were no urgent items arising.
5. APPROVAL OF BOARD MINUTES AND MATTERS ARISING
5.1 The minutes of the last Board meeting held on 19 July 2017 were agreed as a correct record and signed by the Chair.
5.2 5.2.1 5.2.2 5.2.3
Matter Arising Geoff O’Brien was welcomed to the meeting after being formally appointed as a Tenant Board Member at the Annual General Meeting (AGM) on 20 September 2017. James Clifford was also introduced to the Board. He will be joining the BCT as the Director of Finance and Resources on 02 November 2017. The Board agreed Claire Burns, Management Accountant, would act as Company Secretary due to the gap between Phil Ambrose leaving on the 31 August 2017 and James Clifford starting on the 02 November 2017. Board noted Catherine Walsh was previously given a retrospective leave of absence for personal reasons with the intention of resuming the role of Tenant Board Member at the AGM, Catherine failed to attend the meeting and did not provide apologies for absence. Under item D7.2 of the BCT Rules, unless she can provide a satisfactory reason to justify her absence, this will result in her removal from the BCT Board.
6. RE-APPOINTMENT TO BOARD
6.1
It was agreed that as there have been no volunteers to fill the role of Vice Chair of the BCT Board the role will remain vacant. Item E1 of the BCT Rules does not state that there must be a Vice Chair appointed at all times.
5.
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6.2 It was agreed that Christine Stobbs be appointed as Chair of the Finance and Audit Committee alongside the re-appointments of Gordon Bell, Nigel Emmerson and Jim Coulter. Geoff O’Brien volunteered to become a member of the BCT Finance and Audit Committee.
6.3 It was agreed that Gordon Bell be re-appointed as Chair of the Performance and Services Committee alongside the re-appointments of Nick Kemp, Nigel Emmerson and Jim Coulter. Geoff O’Brien volunteered to become a member of the BCT Performance and Services Committee.
7. CHIEF EXECUTIVE MONTHLY PROGRESS REPORT
7.1 Board discussed the annual Value for Money (VfM) Self-Assessment and the summary, which appears in the financial statements submitted to the AGM. Board were asked to comment/approve the statement for submission to the Regulator and were advised that this would be the last in the current format. The Regulator is about to commence formal consultation on replacement VfM requirements using a Sector Score Card. Board agreed to task the Performance and Services committee to review the current VfM objectives and performance, to achieve the objective of median level performance by 2020.
7.2 Board received this report for review and approval of the following documents;
• Value for Money Self-Assessment was formally approved subject to any comments by Monday 25 September 2017.
• Annual Report to Tenants was formally approved subject to any comments by Friday 29 September 2017.
7.3 Board members commented on and discussed the Board Effectiveness Survey results and
noted that they would be taken into consideration as part of the forthcoming HQN governance review and training programme.
7.4 It was advised that Appendix B, HCA Sector Risk Profile, and Appendix C, the updated HCA Regulating the Standards, will be included as part of the Board training programme which will commence on 18 November at the Board Away Day. The full document was circulated with the agenda and Board Members noted the specific area of change in the regulatory framework as highlighted in the Chief Executive’s report. The Board had agreed previously that the Sector Risk Profile would be taken into account in updating BCT’s Strategic Risk Register for discussion at the November Board meeting.
7.5 Board agreed to delegate the tender decisions for Tom Collins House and Mount Pleasant to the Finance and Audit Committee.
8. AOB
8.1
Nick Kemp advised that he and Geoff O’Brien would not be able to attend the Board meeting on 01 November due to a City Council Meeting being held on the same day. It was agreed alternative dates would be circulated in order to ensure the meeting is quorate.
…………………………. Chair of Byker Community Trust Board 01 November 2017
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Board 01 November 2017
Title: BCT Governance Matters Report By: Jill Haley, Chief Executive (CE) FOR DECISION 1. Recommendations
1.1 The Board are requested to:
1. Appoint;
• James Clifford as Company Secretary
• Claire Burns as Deputy Company Secretary 2. Approve Shareholder applications:
• Fiona Ford (Independent Membership)
• Vivian Hall (Independent Membership)
• Anthony Itiat (Tenant Membership)
• William Howe (Tenant Membership)
3. Approve Tenant applications to the Board:
• Anthony Itiat
• William Howe
2. Synopsis
2.1 This report provides a progress update on governance matters which have either arisen or changed since the 20 September meeting.
3. Background and Current Situation
3.1 Company Secretary
3.1.1 BCT’s former Company Secretary, Phillip Ambrose left the organisation on 31 August 2017 and Claire Burns, Management Account has been carrying out the role temporarily since that date.
3.1.2 James Clifford, BCT’s new Director of Finance and Resources will commence employment with us at the beginning of November and will also take over the Company Secretary responsibilities as part of his role.
3.2
Shareholder Applications
3.2.1 BCT continue to promote and advertise Shareholder membership and it is pleasing to see four new applications this month.
6.
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3.2.2 Applications are attached at Confidential Appendix A.
3.3 Board Member applications from Tenants
3.3.1 Tenant Board Members who are not elected at the AGM can be appointed in year by the Board. BCT rules provide that any Board Member who is elected during the year will serve until the next AGM when they can then be appointed for a three year term. Both applicants have had an interview with the Chair and CE and are recommended for appointment.
3.3.2 Applications are attached at Confidential Appendix B.
4.
Contact Officer
4.1 If you have any questions about this report that you would like clarifying before the meeting, you can contact Jill Haley by telephone on 0800 5335 442 or email [email protected]
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Board 01 November 2017
Title: Quarterly Strategic Risk Register (SRR) Update Report By: Jill Haley Chief Executive (CE) FOR DECISION Business Implications
Risk • This report has taken account of a new Risk Management Framework agreed by Board on 07 June 2017 and includes a revised SRR, to be updated and reported quarterly. The SRR is supported by three Operational Risk Registers which reported to Performance and Services (P&SC) and Finance and Audit (F&AC) Committees.
Financial and Value for Money • Robust risk management is a key part of BCT governance arrangements, it assists us in financial management and in achievement of VfM while ensuring best use of resources.
People/Consultation • The SRR covers areas of BCT business where customer engagement is required and ensures good control arrangements are in place and these are regularly reviewed.
Equality and Diversity • The SRR covers equality and diversity considerations within areas of BCT business and ensures good control arrangements are in place and these are regularly reviewed.
Environment Implications • The SRR covers the environmental aspects of the investment programme and the day to day management of the estate environment and ensures good control arrangements are in place and these are regularly reviewed.
Contractor Implications • The SRR covers the delivery of the investment programme and the day to day housing management services by contractors and ensures good control arrangements are in place and these are regularly reviewed.
1. Recommendations
1.1 The Board are recommended to;
i. Consider and approve the SRR (Appendix A). ii. Note and discuss the current position regarding the Business Plan stress testing
and compliance (Section 7 and Appendix B).
2. Synopsis
2.1 2.2 2.3
This report highlights the key risks facing the BCT at present and takes into account the Homes and Communities (HCA) Sector Risk profile 2017. The quarterly update and review of the SRR was carried out on 10 October 2017 and this is attached at Appendix A. The Operational Risk Registers (ORRs) for Neighbourhood, Property, Finance and Governance are reviewed and updated monthly and will be reported to their appropriate Performance and Services, or F&AC.
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3. Background Information
3.1 Board approved a new Risk Management Strategy and Framework on 07 June 2017, which requires the BCT Executive Team to carry out monthly reviews of the ORRs and a quarterly review and update of the SRR. Any recommended updates to the SRR are reported to Board for consideration and approval.
4. SRR Update
4.1 4.2
A new Risk Management Framework was adopted by Board on 07 June 2017, the SRR was reviewed accordingly and is set out at Appendix A. Future quarterly SRR reporting will include the following:
• Items added to the SRR.
• Items removed from the SRR.
• SRR items with updated risk score.
5.
Key Risks for BCT at Present
5.1
There are six risk areas with an overall risk score of HIGH. The key ongoing control arrangements to manage these are detailed within the SRR. In addition to this the table below summarises some specific current mitigation actions:
Risk Specific Actions
SR1 - Difficulty in modelling the financial impact of welfare reforms on income streams (rent loss, increases in arrears and bad debts) because of lack of clarity/certainty in government policy announcements, resulting in BCT’s inability to deliver the Business Plan and services
Modelling of Local Housing Allowance (LHA) against BCT property types and family sizes. Provision for Universal Credit (UC) affecting bad debt in year 1 of the Business Plan (15%). Quarterly reporting to F&AC. Annual and quarterly Business Plan refresh reported to F&AC. Business Plan stress testing of bad debt provision levels and inflation levels.
SR2 - Welfare reforms have a detrimental impact on household income within the area served by BCT
Quarterly reporting to P&SC. BCT Balanced Scorecard in operation reported to Board quarterly and Executive Team monthly. Additional Welfare Benefit Advisor resource for BCT. Karbon’s financial inclusion team providing additional support. Weekly rent surgeries. Support provided to tenants to apply for discretionary housing payment.
SR3 - Differential between Local Housing Allowance (LHA) rates and BCT rent across a range of property sizes
Modelling of LHA against BCT property types and family sizes. Review of rent structures following government review of LHA and impact of those affected by it.
SR4 - Economic and Brexit uncertainty adversely impacts on BCT business
Horizon scanning and keeping abreast of all changes that could affect BCT.
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SR12 - Legal challenge to Cost Sharing Exemption (CSE) VAT arrangements
BCT CE and Karbon CE participating in lobbying effort with National Housing Federation. A meeting with HMRC is to be held in December to discuss Social Housings access to CSE and the ‘Public Interest’ judgement.
SR16 - Rent reduction and inflation of costs reduces affordability of investment programme and investment capacity
Identify investment opportunities such as projects with a positive Net Present Value (NPV) to improve the Business Plan position. Annual and quarterly Business Plan refresh reported to F&AC. Business Plan stress testing. Quarterly monitoring of Investment Programme spend against available financing. Quarterly reporting of Investment Programme progress and cost to Board. Robust tender process.
6. Biggest Issues on the Horizon
6.1
BCT is operating in an uncertain political environment, some of the emerging issues which may result from this are summarised below;
6.1.1 Political Context
• Government focus on a pre-Brexit environment full of unknowns.
• The increasing surpluses of housing associations have attracted Government attention due to the capacity for both efficiency savings and new build.
• HCA are consulting on a revised VfM Standard and Code of Practice. A new standard set of metrics for Housing Associations called the Sector Scorecard will be applied from April 2018 which will measure: - Unit costs. - Operating surplus. - Return on assets. - Scale of investment and development. - Borrowing as a proportion of asset base. - New housing supply delivered.
6.1.2 Income pressures
• The Court of Justice of the European Union recently ruled that CSE for VAT can only be available where a members activities are in the ‘public interest’. It is currently uncertain if UK housing associations will be categorised as ‘public interest’ by HMRC. If they are not, BCT will be required to pay circa £320k in VAT per year for the services which are currently delivered via Isos Complete Support.
• Universal Credit was rolled out in Newcastle on 07 February 2017 and represents an increasing risk to income collection and arrears due to delays in tenants receiving benefit and also because it is paid directly to the tenant as a lump sum payment.
• Benefit caps represent further squeeze on household incomes.
• Local Housing Allowance rates will lead to issues of affordability particularly for tenants living in supported and sheltered housing and under 35s.
• Falls in the value of the pound leading to increased price inflation in the wider economy which will have a delayed impact on consumer pricing, at a time when people are already finding it very difficult to make ends meet.
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6.1.3 Governance challenges
• Non-executive and executive skillsets to match business needs and objectives.
• Dynamic management and development of our assets (land and property) to service both the needs of the community and deliver new units to meet housing demand.
6.2 In summary, we must continue to monitor and manage our business closely and continue our drive for greater efficiencies and value for money. Growing and developing our assets with positive NPV projects will increase income and Business Plan capacity. The issue of new housing supply has been defined as a key measurement of the governments new Sector Scorecard.
7. Loan Covenant Compliance
7.1 7.2 7.3
The latest loan covenant compliance calculations up to 2025 as at September 2017 are attached at Appendix B. They are being reported and discussed at Novembers F&AC. They will be reported to our lender, Yorkshire Building Society (YBS), in our quarterly report due in November 2017, and have also been informally discussed with YBS at the quarterly meeting on 16 October 2017. The loan covenant compliance calculations reflect the current and estimated future position against the covenant limits contained within the loan facility agreement. No breaches of covenant are forecast. The forecast figures are taken from the BCT Business Plan model and the Savills
valuation report.
• Asset cover covenant In years 2020 and 2021, the asset cover covenant has headroom of 14% and 13% respectively. An increase in loan drawdown in 2020 of £2.5m would result in the covenant limit being exceeded. To mitigate this risk, we will monitor the timing of investment programme spend. A detailed review and re-profiling exercise will be undertaken on the timing of the Option two spend agreed by Board on 26 April 2017 to determine our loan drawdown requirements on a year by year basis. This exercise has commenced and will be finalised when the new Director of Finance & Resources takes up post on 02 November 2017. The findings of the review will be reported to Board on 20 December 2017. Also note that the covenant limit for an asset cover covenant is typically set at 90% for more mature housing associations, whereas for BCT this was set at 75%. YBS have indicated that they would be willing to discuss a review of the 75% level with us in the next two to three years, subject to further successful application of our Business Plan.
• Interest cover covenant There is significant headroom on the interest cover covenant.
• Net debt per unit covenant In years 2020, the net debt per unit covenant has headroom of 19%. An increase in loan drawdown in 2020 of £3.5m would result in the covenant limit being exceeded. To mitigate this risk, we will closely monitor the timing of investment programme spend.
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8. Loan Facility Drawdown Requirements up to 2025
8.1 8.2 8.3
Following the completion of BCTs 100% Stock Condition Survey, Board took a considerable time to discuss and agree the medium term investment priorities up until 2025 and agreed to proceed with the Option two Investment Programme. A detailed review and re-profiling exercise will be undertaken on the timing of the Option two spend to determine our loan drawdown requirements on a year by year basis. This exercise has commenced and will be finalised when the new Director of Finance & Resources takes up post on 02 November 2017. The findings of the review will be reported to Board on 20 December 2017. BCT are required to make a loan drawdown of £4m on 31 March 2018, taking the total loan drawdown to £10m. This is due to an interest rate fix agreement that was made with YBS to fix the interest rate on the first £10m loan drawdown at 3.66% until 09 January 2025. Once the re-profiling exercise has been undertaken, we will determine whether we require a total loan drawdown of £10m from 31 March 2018. If this is not required, we have discussed with YBS the possibility of delaying the £4m drawdown further. YBS would then calculate the cost to BCT to delay the £4m loan drawdown.
9. Refinancing requirement post 2025 and investment capacity post 2025
9.1 9.2
The loan requirements of BCT post 2025 were reported to Board on 07 June 2017 as part of the Annual Business Plan. Work will commence on the Business Plan for the period from 01 April 2018 onwards when the new Director of Finance & Resources takes up post on 02 November 2017. This will include stress testing against a variety of sensitivities, and subsequent review of potential mitigations and the impact of the mitigations. The longer term investment capacity will be considered, following detailed profiling of the medium term investment spend.
10. Background Papers
10.1 Risk Management Framework Report 07 June 2017 Quarterly Strategic Risk Register Update 19 July 2017.
11. 11.1
Contact Officer If you have any questions about this report that you would like clarifying before the meeting, you can contact Jill Haley by telephone on 0800 5335 442 or email [email protected]
7.
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f E
xe
cu
tive
/
Com
pa
ny S
ecre
tary
20
17
On
ta
rge
t
7. A
ppen
dix
A
Page 10 of 52
A s
tructu
re w
hic
h s
up
po
rts a
n e
ffe
ctive
wo
rkin
g
rela
tio
nsh
ip w
ith
Ne
wca
stle
City C
ou
ncil.
C
ha
nge
re
qu
ire
d a
s a
wa
y o
f re
info
rcin
g t
he c
ha
nge
s
to t
he
Se
cto
r R
isk P
rofile
and
BC
T’s
Ris
k M
ana
ge
men
t F
ram
ew
ork
.
SR
6
Bo
ard
un
ab
le to
en
su
re t
ha
t th
ere
are
suff
icie
nt E
xe
cu
tive
skill
s, kn
ow
led
ge
an
d
exp
erie
nce
to
ma
na
ge
th
e
org
an
isation
’s b
usin
ess
LO
W
HIG
H
ME
DIU
M
N
ew
sta
ff s
tru
ctu
re s
et u
p to
de
live
r n
ew
se
rvic
e
de
live
ry m
od
el.
Rep
ort
an
d b
en
chm
ark
ing b
y C
am
pb
ell
Tic
kell
to
be
nch
ma
rk o
rga
nis
ation
str
uctu
re,
role
s a
nd
re
mun
era
tion
.
Chie
f E
xe
cu
tive
2
017
On
ta
rge
t
SR
7
Non
-co
mp
lian
ce w
ith
e
sta
blis
he
d B
CT
in
tern
al
go
ve
rna
nce
ru
les,
co
de
of
co
ndu
ct
an
d r
ela
ted
a
rra
nge
men
ts
LO
W
HIG
H
ME
DIU
M
B
oa
rd in
du
ctio
n a
nd t
rain
ing.
Cha
ir /
C
hie
f E
xe
cu
tive
/
Com
pa
ny S
ecre
tary
On
go
ing
On
go
ing
SR
8
Und
erp
erf
orm
an
ce
aga
inst
BC
T’s
vis
ion
and
co
rpo
rate
p
lan
ob
jective
s
LO
W
ME
DIU
M
LO
W
Q
ua
rte
rly r
evie
w o
f co
rpo
rate
pla
n b
y B
oa
rd.
Qu
art
erly r
evie
w o
f co
rpo
rate
pla
n b
y E
xe
cu
tive
Te
am
. B
oa
rd c
orp
ora
te p
lan
tra
inin
g.
Exe
cu
tive
Te
am
2
020
On
ta
rge
t
Reg
ula
tio
n a
nd
co
mp
lia
nc
e
SR
9
Non
-co
mp
lian
ce w
ith
re
gu
lato
ry
sta
nda
rds
LO
W
HIG
H
ME
DIU
M
R
egu
lar
revie
w o
f re
gula
tory
pu
blic
ation
s b
y B
oa
rd a
nd
Exe
cu
tive
Te
am
. E
xe
cu
tive
Te
am
O
ngo
ing
On
go
ing
SR
10
Non
-co
mp
lian
ce w
ith
da
ta
pro
tection
re
qu
ire
me
nts
L
OW
H
IGH
M
ED
IUM
BC
T’s
da
ta p
rote
ctio
n r
equ
ire
me
nts
we
re r
evie
we
d b
y
an
exte
rna
l d
ata
pro
tectio
n s
pe
cia
list du
rin
g 2
01
6/1
7.
Fu
rth
er
train
ing a
nd
advic
e is to
be
co
mm
issio
ned
in
a
cco
rdan
ce
with
the
20
18
Da
ta P
rote
ctio
n legis
latio
n
ch
an
ge
s.
2
018
On
ta
rge
t
SR
11
Non
-co
mp
lian
ce w
ith
he
alth
&
safe
ty (
H&
S)
requ
ire
me
nts
L
OW
H
IGH
M
ED
IUM
An
nua
l H
&S
Po
licy r
evie
w.
Six
mo
nth
ly H
&S
up
date
s t
o B
oa
rd.
Mo
nth
ly m
on
ito
rin
g o
f a
ll a
rea
s o
f com
plia
nce t
o m
eet
legis
lative
requ
ire
me
nts
. D
irecto
r of
Pro
pe
rty &
Deve
lop
men
t an
d T
ech
nic
al
Se
rvic
es M
an
age
r b
oth
IO
SH
qu
alif
ied
. T
ech
nic
al S
erv
ices M
an
age
r cu
rre
ntly u
nde
rgo
ing
NE
BO
SH
qu
alif
ication
. O
ngo
ing m
an
dato
ry s
taff
tra
inin
g p
rogra
mm
e o
n H
&S
a
nd
safe
gu
ard
ing.
Directo
r of
Pro
pe
rty &
D
eve
lop
men
t O
ngo
ing
On
go
ing
CS
V a
rra
ng
em
en
ts
SR
12
Le
ga
l ch
alle
nge
to
Co
st
Sh
arin
g E
xe
mp
tio
n (
CS
E)
VA
T
arr
an
ge
men
ts fo
r S
ocia
l H
ou
sin
g O
rga
nis
ation
s
ME
DIU
M
HIG
H
HIG
H
£3
20
k/y
ea
r irre
co
ve
rab
le
VA
T
BC
T C
E a
nd
Ka
rbo
n C
E p
art
icip
atin
g in
lo
bb
yin
g e
ffo
rt
with
Na
tio
na
l H
ou
sin
g F
ed
era
tio
n. A
me
etin
g w
ith
H
MR
C is t
o b
e h
eld
in D
ece
mb
er
to d
iscuss S
ocia
l H
ou
sin
gs a
cce
ss to
CS
E a
nd
th
e ‘P
ub
lic In
tere
st’
jud
ge
men
t.
ICS
Boa
rd w
ith
BC
T
Chie
f E
xe
cu
tive
o
ve
rsig
ht
20
17
On
ta
rge
t
SR
13
Fa
ilure
in
CS
V g
ove
rna
nce
a
rra
nge
men
ts
LO
W
HIG
H
ME
DIU
M
B
CT
are
sha
reh
old
ers
in t
he C
SV
an
d B
CT
’s C
hie
f E
xe
cu
tive
is a
dire
cto
r o
n th
e B
oa
rd o
f IC
S.
Chie
f E
xe
cu
tive
O
ngo
ing
On
go
ing
Bu
sin
es
s c
on
tin
uit
y
SR
14
Fa
ilure
in
bu
sin
ess c
ontin
uity
du
e to
lo
ss o
f ke
y r
eso
urc
e (
eg
bu
ildin
g o
r IT
syste
m)
LO
W
HIG
H
ME
DIU
M
In
form
ation
an
d c
om
mu
nic
ation
s t
ech
no
logy (
ICT
) d
isaste
r re
co
ve
ry is c
ove
red
by t
he
IC
T s
erv
ice leve
l a
gre
em
en
t w
ith
IC
S -
in
the
eve
nt of
an
IC
T fa
ilure
/
dis
rup
tio
n a
t B
CT
, IC
S w
ill in
vo
ke
th
eir p
lan
s to
re
sto
re
se
rvic
es.
Fin
an
cia
l a
nd
in
ve
stm
en
t p
rog
ram
me
man
ag
em
en
t
SR
15
Ineff
ective
fin
an
cia
l m
ana
ge
me
nt
lea
ds t
o p
oo
r V
fM,
poo
r b
usin
ess p
lan
nin
g,
LO
W
HIG
H
ME
DIU
M
A
nn
ua
l bu
sin
ess p
lan
an
d q
ua
rte
rly b
usin
ess p
lan
re
fresh
re
po
rte
d t
o F
&A
Co
mm
itte
e.
Bu
sin
ess p
lan s
tress te
stin
g.
Directo
r of
Fin
an
ce
&
Reso
urc
es
On
go
ing
On
go
ing
Page 11 of 52
ina
bili
ty t
o e
nsu
re c
ash f
low
a
nd
co
ve
na
nt com
plia
nce
, re
su
ltin
g in
re
gu
lato
ry
do
wn
gra
din
g.
Horizo
n s
ca
nn
ing.
Mo
nth
ly m
on
ito
rin
g o
f b
an
k c
ove
na
nt.
M
on
thly
bu
dge
t m
on
itorin
g.
Qu
art
erly r
ep
ort
ing o
f fin
an
cia
l re
su
lts to
F&
A
Com
mitte
e.
Fix
ed
in
tere
st
rate
on
exis
ting lo
an
dra
wd
ow
n.
Unit c
ost a
na
lysis
of
curr
en
t se
rvic
e d
eliv
ery
a
rra
nge
men
t ca
rrie
d o
ut.
V
fM r
ep
ort
ing to
F&
A C
om
mitte
e.
Pro
po
sa
l se
t o
ut b
y G
ove
rnm
en
t in
Octo
be
r 20
17
to
in
cre
ase
so
cia
l h
ou
sin
g r
en
ts b
y C
PI
plu
s 1
% f
or
5
ye
ars
fro
m 2
02
0.
SR
16
Ren
t re
du
ction
an
d infla
tio
n o
f co
sts
redu
ce
s a
ffo
rda
bili
ty o
f in
ve
stm
en
t p
rogra
mm
e a
nd
inve
stm
en
t ca
pa
city
HIG
H
HIG
H
HIG
H
£2
m s
ho
rtfa
ll fo
r 4
ye
ar
pe
rio
d o
f re
nt
red
uction
. C
um
ula
tive
im
pa
ct of
£6
.9m
ove
r th
e p
erio
d to
2
025
Ide
ntify
in
ve
stm
en
t o
pp
ort
un
itie
s t
ha
t im
pro
ve
the
b
usin
ess p
lan p
ositio
n.
An
nua
l an
d q
ua
rte
rly b
usin
ess p
lan
refr
esh
rep
ort
ed t
o
F&
A C
om
mitte
e.
Bu
sin
ess p
lan s
tress te
stin
g.
Qu
art
erly m
on
ito
rin
g o
f In
ve
stm
en
t P
rogra
mm
e s
pen
d
aga
inst
ava
ilab
le f
ina
ncin
g.
Qu
art
erly r
ep
ort
ing o
f In
ve
stm
ent
Pro
gra
mm
e p
rogre
ss
an
d c
ost
to B
oa
rd.
Rob
ust te
nd
er
pro
ce
ss.
Chie
f E
xe
cu
tive
&
Exe
cu
tive
Te
am
O
ngo
ing
On
go
ing
SR
17
La
ck o
f un
de
rsta
nd
ing o
f B
CT
a
sse
ts, p
erf
orm
an
ce
of
cu
rre
nt
inve
stm
en
t p
rogra
mm
e,
and
fu
rth
er
inve
stm
ent
requ
ire
me
nts
.
LO
W
HIG
H
ME
DIU
M
1
00
% S
tock C
on
ditio
n S
urv
ey c
arr
ied
ou
t in
20
15
/16
. B
oa
rd A
wa
y D
ay a
nd
Work
sh
op
du
rin
g F
eb
rua
ry a
nd
A
pril 2
017
to c
on
sid
er
an
d s
et m
ed
ium
te
rm p
rio
ritie
s.
Qu
art
erly m
on
ito
rin
g o
f in
ve
stm
ent
pro
gra
mm
e s
pen
d
aga
inst
ava
ilab
le f
ina
ncin
g.
Qu
art
erly r
ep
ort
ing o
f In
ve
stm
ent
Pro
gra
mm
e p
rogre
ss
an
d c
ost
to B
oa
rd.
Mo
nth
ly p
roje
ct m
an
age
men
t m
ee
tin
gs w
ith
co
nstr
uction
pa
rtn
ers
of
sch
em
es in
de
ve
lop
me
nt a
nd
on
site
re
vie
w o
f p
rog
ress a
nd c
ost
co
ntr
ol.
Rob
ust te
nd
er
pro
ce
ss.
Directo
r of
Op
era
tion
s
On
go
ing
On
go
ing
Rep
uta
tio
n
SR
18
Rep
uta
tio
na
l d
am
age
ca
used
b
y in
eff
ective
Boa
rd a
nd
m
ana
ge
me
nt o
ve
rsig
ht,
poo
r co
mm
un
ication a
nd
la
ck o
f fo
cu
s o
n q
ua
lity a
nd
op
era
tio
na
l p
erf
orm
ance
LO
W
HIG
H
ME
DIU
M
Q
ua
rte
rly P
&S
Com
mitte
e m
ee
tin
gs r
evie
w a
nd
d
iscuss t
he
qu
alit
y o
f op
era
tion
al pe
rfo
rma
nce
and
co
mm
un
ication
s.
BC
T B
ala
nce
d S
co
reca
rd in
op
era
tio
n r
ep
ort
ed
to
B
oa
rd q
ua
rte
rly a
nd
Exe
cu
tive
Te
am
mo
nth
ly.
Ta
rge
t se
ttin
g in
lin
e w
ith
BC
T o
bje
ctive
fo
r m
ed
ian
be
nch
ma
rk p
erf
orm
ance
by 2
020
. B
en
chm
ark
ing in
pla
ce u
sin
g in
du
str
y s
tand
ard
H
ou
sem
ark
syste
m.
Op
era
tion
al ta
rge
ts inclu
de
d in
sta
ff a
pp
rais
als
, re
vie
we
d m
onth
ly.
Ten
ant
Scru
tin
y a
nd
Te
nan
t C
om
mu
nic
atio
n’s
Gro
up
in
o
pe
ratio
n.
BC
T A
nnu
al R
ep
ort
to
Ten
ants
. A
nn
ua
l C
usto
me
r C
are
Vis
it w
ith
eve
ry t
en
an
t co
mm
en
ce
d in
Ma
y 2
01
7.
Directo
r of
Op
era
tion
s
On
go
ing
On
go
ing
7. A
ppen
dix
A
Page 12 of 52
7. A
ppen
dix
B
Page 13 of 52
Board 01 November 2017
1. Recommendations
1.1 Board are recommended to;
i. Note the content of this report and progress of the BCT Investment Programme; ii. Note the confidential Appendix A, BCT Investment Programme Cost Update; iii. Agree to instruct Esh Property Services to develop detailed designs and costs to
convert the former housing office into residential accommodation as detailed in confidential Appendix A (ref 4a);
iv. Note the revised costs for Dunn Terrace secondary mains renewal work on the roof of the Byker Wall and the remaining uncommitted balance in confidential Appendix A (ref 1).
2. Synopsis
2.1 The report provides a progress update on the delivery of BCT’s Investment Programme, and advises Board of any issues that may affect the delivery of the programme.
Title: Quarterly Investment Programme Update Report By: Michelle Bell, Head of Property FOR INFORMATION & DECISION
Business Implications
Risk • Progress and cost updates to Board provide close monitoring of the BCT Investment Programme and on any potential risks.
• Emerging health and safety issues are reported to ensure risk/emerging risk is minimised, monitored and where applicable implemented to meet landlord obligations.
Financial and Value for Money (VfM)
• Maximising value for money and social or economic benefits via delivery of the Investment Programme by ensuring projects align with BCT’s Capital Investment Strategic Brief.
• Costs are closely monitored to align with the Business Plan budgets.
• Opportunities for grant funding are explored and progressed where appropriate.
People/Consultation
• Achieving added value and maximising training and job opportunities for the benefit of residents through the delivery of its Investment Programme is a key objective.
• The Investment Programme will be shaped to address resident’s needs and concerns. Full consultation is undertaken with residents affected by each project.
Equality and Diversity • A non-discriminatory approach is adopted in procurement & consultation processes.
Environment Implications
• The Investment Programme will improve and regenerate the Byker estate environment and the lives of customers who live here.
Contractor Implications • A strategic partnership approach and a commitment to BCT’s Mission, Vision and Values are adopted by all BCT’s contracting partners.
8.
Page 14 of 52
3. Progress - Byker Wall New Concierge Service and Communal Digital Aerial Installation
3.1 The work to upgrade the Byker Wall concierge and digital aerial installation by Openview was completed on 18 January 2017. The defect liability period will end on 18 January 2018.
4. District Heating Upgrade
4.1 Work Package 1 – Secondary Mains Renewal Contract
4.1.1 The secondary mains renewal work is nearing completion in the Norfolk Square / Priory Green area. The next phase is underway to replace the secondary mains adjacent to Gordon House.
4.1.2 A further five areas of pipework were identified as requiring replacement where temporary repairs had previously been carried out, and following Board approval on 19 July 2017, these secondary mains replacements are being programmed in for completion.
4.1.3 Work has commenced on replacing the secondary mains on Dunn Terrace roof. This has been prioritised so that the work is complete before the winter months. As the works now include replacing the full length of secondary mains pipework, H. Malone & Sons have confirmed that additional edge protection is required on the perimeter of the roof, to allow the new pipework to be lifted onto the roof by crane. The existing man safe system cannot be utilised for this work. These additional barriers had not previously been costed and is included in confidential Appendix A for decision.
4.2 Work Package 2 – Heat Transfer Station Renewal and BMS Replacement
4.2.1 Refurbishment of the heating sub stations and the extension of the district heating primary mains/network to include the three group heating systems at Ayton Street, Janet Croft and Janet Square completed on 02 November 2016. The defects liability period will end on 01 November 2017.
4.3 Work Package 3 – Internal Upgrade Works
4.3.1 Subject to a separate report to Board on this agenda.
4.4 Biomass 2 – Boiler Installation
4.4.1 The Biomass 2 project is currently on hold until the government releases guidance on the next round of ECO funding.
5. Modern Homes Omit Programme
5.1 There are currently 79 outstanding modern homes omits across the estate. All tenants were consulted and 12 confirmed they would like the internal decent homes work carried out to their home. This has now increased to 14 properties.
5.2 Esh Property Services were appointed by Board to complete these works on 08 March 2017, and detailed surveys and home visits followed to determine which tenants required additional support or a temporary move.
Page 15 of 52
5.3 Esh Property Services started on site on 11 September 2017 and their original programme anticipated completion at the end of October 2017. Esh have reported that they now anticipate the contract to be completed by December 2017, due to the addition of two properties and unforeseen additional works on the properties completed to date.
6. Comprehensive Environmental Upgrade
6.1 The comprehensive external environmental improvements within the Stock Transfer Offer Document committed BCT to exploring a variety of issues within this wide ranging stock transfer promise. To date BCT have spent almost £3m implementing issues included in this stock transfer promise.
6.2 At the Board meeting on 27 April 2017, members received a presentation detailing the development of BCT’s Investment Programme and Medium Term Priorities. Board agreed in principle to proceed in principle with Option two package of investment up to the end of our current loan facility in 2025. This Option provided the highest available level of investment post 2025, and committed a further £4m to the delivery of this final stock transfer promise.
6.3 On 16 August 2017, a meeting was held between BCT, Historic England and Newcastle City Council Planning Department to discuss the procurement of the design team and principles relating to the approach of designing any fencing replacement to address security concerns for residents.
6.4 The development of the design brief is in progress and will be agreed with Historic England prior to commencing the procurement process. It is anticipated that the OJEU procurement process will commence by December 2017.
7. Hobby Rooms Phase 1
7.1 The hobby room’s conversion project started on site with Esh Property Services on 13 February 2017 and the initial programme indicated a full project completion in August 2017.
7.2 Work is progressing well, with three of the new homes now complete, and two with minor snagging to complete at the time of writing this report. We have encountered a number of issues that have impacted on the overall project completion date. These issues include:-
• Additional unforeseen asbestos removal which has required 14 day notification to the Health & Safety Executive, particularly in the Headlam House conversion.
• Delays in receiving planning permission for 2 Chirton Wynd.
• Complications with arranging utility supplies and meters fitted.
• Delays encountered in receiving clarification on some of the external components due to the Grade II* listing of the estate.
• Inclement weather affecting the completion of external works.
7.3 Although BCT can take partial handover of the hobby rooms as they complete, the contract allows this to be delayed until the overall completion date. This is now anticipated to be mid November 2017.
7.4 A revised project completion date has been submitted and accepted by the HCA.
7.5 The HCA launched their Compliance Audit programme for 2017/18 and the Hobby Rooms project was selected for audit. BCT attended audit preparation training at the
8.
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HCA Regional Office on 25 July 2017 and with the Spirit Partnership on 26 July 2017 and 15 September 2017. The audit took place on 3 October 2017 by Independent Auditor (IA), Randip Singh Bahra, Director at Hephaestus Associates Limited. The IA has now submitted all his findings to the HCA, and confirmed the information provided by BCT was sufficient to ensure all potential areas of risk were covered. The next steps include:
• After 03 November 2017 - HCA will review the IA findings and query responses where required;
• HCA Local and National moderation will take place;
• HCA Compliant Audit Report will be sent to BCT Chief Executive in Q1 2018/19;
• Compliance Audit Report issued to BCT Board Chair – five days later;
• BCT have a ten day window to respond to any factual inaccuracies;
• Compliant Audit Report to be signed off by BCT Board Chair within one month of receipt.
7.6 The Housing Management Team are currently preparing for allocating the new homes
and tenancies which can commence immediately where required on the completed homes. Interest has been received following the marketing of the homes via Byker News and Social Media. Priority for all the homes will be given to existing Byker tenants who have valued customer status and appropriate housing need. This includes the disabled adapted units. Following this exercise, any available homes will be advertised via Tyne & Wear Homes Choice Based Lettings Scheme.
7.7 The hobby room at 26a Raby Way has been promoted in the Autumn 2017 edition of Byker News. BCT are aiming to launch the completion of the hobby rooms in late November 2017, using this hobby room in a press release and arranging a key handover with the new tenant.
8. Conversion of the Former Housing Office
8.1 Since October 2016, the former housing office on Brinkburn Street has remained empty. NCC has not identified a long term use for the building and earlier this year declared the building surplus.
8.2 A report was presented to Board on 20 September 2017 highlighting a development opportunity for BCT to acquire the building from NCC. It detailed the results of recent preliminary investigations of working in partnership with Esh Property Services to undertake a residential conversion of the building to create four, two bedroomed homes for rent, two of which would be designed and converted to wheelchair standards.
8.3 Board agreed to proceed with the next steps which included:
• Submitting a business case to NCC to consider the disposal of the former housing office to BCT at nil consideration;
• Instruct Esh Property Services to develop detailed design options and further building inspections and surveys to finalise the proposed conversion costs for the project;
• Instruct Esh Property Services to undertake outline planning discussions with NCC to ensure recommendations are incorporated into the design and planning application process;
• Finalise costs to negotiate the conversion of the building with Esh Property Services;
• Develop an achievable delivery timetable;
• Submit a bid to the HCA for affordable homes grant funding towards the creation of four new homes for affordable rent.
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8.4 The Business Case to NCC to consider the disposal of the former housing office to BCT at nil consideration is in progress and will be submitted during November 2017.
8.5 The HCA have been in contact with all Registered Providers and Local Authorities, including BCT, to explore development opportunities that can provide starts on site in March 2018. Although this is a tight timescale, BCT have confirmed that by undertaking the next steps in 8.3 in tandem, a March 2018 start on site could be achievable. BCT has requested grant funding at £30k per unit, and are awaiting a decision from the HCA and the Spirit Partnership as to whether we are submitting a bid for empty homes funding or submitting a bid to utilise slippage in the Spirit Partnerships current allocation.
8.6 In order to finalise costs for consideration by Board, detailed costs have been obtained from Esh Property Services to develop the project to planning permission stage. These are included in Confidential Appendix A (ref 4A) for decision.
9. Disabled Adaptations Programme
9.1 During 2017/18, there have been 15 referrals for major adaptations to BCT properties, of which:-
• Four adaptations are complete;
• Three adaptations are ordered and awaiting installation;
• Eight adaptations were assessed and refused in line with the policy criteria and relocation support provided where required due to the lack of appropriate accommodation in Byker. Two appeals have been received.
10. Tom Collins House & Mount Pleasant Sheltered Accommodation
10.1 During August 2017, Storm Tempest completed their surveys on Mount Pleasant and Tom Collins House to deliver an external and communal upgrade of both blocks in accordance with BCTs brief.
10.2 As agreed by Board in July 2017, these surveys included finalising the specifications for:
• Replacing the cladding on Tom Collins House due to its age and condition, in accordance with the listed building requirements;
• Installing a sprinkler system to the sheltered and non-sheltered properties in Tom Collins House.
10.3 Storm Tempest prepared all the contractual documentation and four contractors were
invited to tender. Tenders were returned on 22 September 2017 from three contractors.
10.4 The tender evaluation panel met on 29 September 2017. This involved Michelle Bell and Ash Gibson (BCT), BCT Board Chair Jim Coulter, Richard Reed and Mark Harrison (Storm Tempest). The panel collectively scored the costs and qualitative method statements.
10.5 On 06 October 2017, a tender evaluation report was circulated to all members of Finance and Audit Committee, recommending the external and communal upgrade of Tom Collins House and Mount Pleasant is awarded to Esh Property Services. Responses were received from majority of committee members, who agreed to award the contract to Esh Property Services. Storm Tempest have been asked to prepare the contract award documentation.
10.6 It is anticipated that the project will start on site in the New Year.
8.
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11. Byker Wall Link Bridges
11.1 Following concerns relating to the stability of the link bridge joining Headlam House to the Byker Wall, detailed surveys were carried out to the five link bridges adjoining the Byker Wall and Dunn Terrace. Bell Group were appointed by Board to complete these works in March 2017.
11.2 11.3 11.4
Work started on site in July 2017, and the refurbishment of Felton House link bridge is now complete. Headlam House link bridge followed and the steel members were stripped and exposed. This has identified major alterations required to replace an existing steel member supporting the bridge. A detailed survey has been undertaken by a structural engineer and whilst these are his recommendations he does not consider the structure to be unsafe at present, however was unable to guarantee its strength should further corrosion occur. Therefore costs are being obtained to replace the steel members and discussions commenced with NCC Planning Department to determine if the structural engineer’s recommendations require listed building consent. Due to these delays, Bell Group have moved onto commence Brinkburn House and expect this link bridge and the remaining two link bridges to be complete by the Christmas closedown. Bell Group will return in January 2018 to complete the works to Headlam House link bridge.
12. Byker Painting Programme 2017/18
12.1 On 19 June 2017, work commenced on the delivery of the 2017/18 external painting programme. 253 homes in the Bolam/Ayton Rise area of the estate have received external decoration including the internal communal areas of The Brow. Bell Group have reported that all work is expected to be complete by 03 November 2017.
13. Contact Officer
13.1 If you have any questions about this report that you would like clarifying before the meeting, you can contact Michelle Bell by telephone on 0800 533 5442 or email [email protected]
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Board 01 November 2017
Title: Draft Asset Management Strategy Framework Report By: Michelle Bell, Director of Property & Development FOR DECISION Business Implications
Risk • BCTs Asset Management Strategy (AMS) will strategically link to the Corporate Plan and the asset and liability register. It will provide strategic direction on asset related investment decisions and minimise the risk of making poor investments.
Financial and Value for Money • The AMS will ensure it optimises the future return on its assets; maximises value for money (VFM) and delivers making the best use of resources.
People/Consultation • The AMS will be shaped to ensure all BCT assets are maintained to the decent home standard providing quality homes and services for our customers. The strategy will provide direction for asset growth to meet local housing need.
Equality and Diversity • A non-discriminatory approach will be adopted in the development of the AMS ensuring BCT deliver homes and services to meet the requirements of our diverse community.
Environment Implications • Environmental Factors as detailed in Appendix A, will be embodied into the strategies development ensuring its delivery in accordance with National and Local drivers and Regulatory requirements.
Contractor Implications • BCT adopts a strategic partnership approach with all its contracting partners to ensure their commitment to delivering BCT’s Mission, Vision and Values. Maximising value for money in the delivery of quality homes and services with our contracting partners will underpin the strategies development.
1. Recommendations
1.1 The Board are recommended to;
I. Consider and agree the proposed AMS Framework at Appendix A; II. Note the next steps in the development of the AMS.
2. Synopsis
2.1 A key objective of The Corporate Plan 2015-20, is the development of a comprehensive
AMS for the Byker Estate. This report sets out the proposed framework for the development of an AMS and provides information on its development to date and the next steps.
3. Background Information
3.1
The existing Value for Money Standard, introduced in 2012 by the Homes & Communities Agency (HCA), required Registered Providers (RP’s) to articulate and deliver a comprehensive and strategic approach to achieving value for money in meeting the organisation’s objectives.
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3.2 3.3 3.4
It includes four specific expectations, one of which expects: ‘RP’s to understand the return on its assets and have a strategy for optimising the future return on assets; including rigorous appraisal of all potential options for improving value for money including the potential benefits in alternative delivery models measured against the organisations purpose and objectives’. It requires RP Boards to demonstrate to stakeholders how they are meeting this standard. Therefore on an annual basis, BCT publishes a robust Value for Money (VFM) Self-Assessment, which sets out how we are achieving VFM in delivering our purpose and objectives. On previous VFM Self-Assessments, BCT have evidenced our journey in the development of our AMS, as part of demonstrating our arrangements in meeting the VFM standard.
4. Key aims of our AMS
4.1 The National Housing Federation guidance suggests Asset Management Strategies are taking on a more significant role within the business planning of social landlords, and that in planning our strategy we must look to achieve three core aspects:
1. Investing in the long-term sustainability of the assets: having a stock investment programme designed to keep all properties to the required standard and deliver carbon reduction;
2. Actively managing the assets so that decisions are made about individual properties: by fully understanding the return on our assets and identifying properties which have a poor social, economic or environmental performance due to low demand and high costs. This would allow most RPs the opportunity to sell or demolish areas of unsustainable housing. This is not an option for BCT on a Grade II* listed estate but would allow bespoke action to be implemented on particular property types or areas of the estate;
3. Consider how the AMS is supporting the wider aims of the organisation: such as investing in new properties or wider community activities.
4.2 The AMS will provide a framework for managing our stock proactively and will support the
Business Plan and Corporate Plan objectives. It will allow us to link our knowledge of the stock, the need for housing in response to local demand and customer aspirations to what is affordable in the Business Plan.
5.
Development of the AMS to date
5.1 Fundamental to completing the AMS is ensuring we have robust, reliable information for its development. To date we have completed:-
• 100% Stock Condition Surveys (SCS) of all blocks, garages and external property surveys;
• Accessed 71% of our stock internally to complete SCS’s;
• Undertook detailed investment profiling using up to date cost information from BCT projects to date, building in inflation over the lifetime of the Business Plan;
• Completed a Business Plan refresh using detailed investment profiling, which has been considered and approved by Board following a Board Away Day on 04 February 2017, Board Workshop on 10 April 2017 and a Board presentation and report on 26 April 2017.
• Delivered and Committed £30m of investment across the estate to date, with a further £10.9m planned up to 2025, completing Option 2 package of investment and medium term prioriites;
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• Reviewed and adopted a revised Buy Back Policy , with seven buybacks completed;
• Entered into a Cost Sharing Agreement with ISOS Complete Support for the delivery of Property Services, including the delivery of responsive repairs, void management and compliance / ancillary related maintenance contracts. Included in the Service Level Agreement (SLA) is a comprehensive set of KPI’s enabling BCT to undertake robust performance management across all areas of the SLA in terms of compliance, quality and cost;
• Adopted a Net Present Value calculation methodology in investment decision making for the development of new homes and in concurrence with the compliance required in upgrading and maintaining the estate to meet Listed Building requirements;
• Completed an Appraisal of our Land Development Sites in partnership with NCC;
• Developed a Capital Investment Strategic Brief, accelerating employment and training opportunities in all procurements;
• Following the service transition in October 2016, BCT now own and manage all its stock condition data, which is continually updated on project or void completions. Further system development is being considered to align with repairs and maintenance data.
6. Next Steps
6.1 The HCA is proposing to replace the existing VFM Standard with a revised and strengthened standard and this is covered as part of the CE report to Board.
6.2 We will ensure any recommendations from the revised HCA VFM Standard are incorporated into the development of the final AMS.
6.3 Appendix A is the proposed framework for the development of BCTs AMS and comments from Board are welcomed on the structure. BCT will engage independent specialist support in the development of the AMS where required. A full draft of the AMS will be reported to Board in March 2018.
6.4 Emerging from the final AMS will be a set of key objectives and targets, to take forward the implementation of the Strategy in delivering this objective of the Corporate Plan 2015-20.
6.5 The AMS will be developed in accordance with the NHF guidance and will be strategically linked to BCTs Corporate Plan and asset and liability register. Emerging from the final AMS will be an action plan with a set of key objectives and targets to take forward.
7. 7.1
Contact Officer If you have any questions about this report that you would like clarifying before the meeting, you can contact Michelle Bell by telephone on 0191 2903910 or email [email protected]
9.
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Board 01 November 2017
Title: Chief Executives Monthly Progress Report Report By: Jill Haley, Chief Executive (CE) FOR INFORMATION 1. Recommendations
1.1 The Board are recommended to note and discuss the contents of this report.
2. Synopsis
2.1 This report provides an information update of progress made since the last Board
meeting.
3. Actions from last Board meeting
3.1
All outstanding actions were covered in an email to Board Members on 12 October 2017:-
• Performance and Services Committee (P&SC) reviewed the current Value for Money (VfM) objectives and performance as agreed by Board.
• The Sector Risk Profile has been taken into account in updating BCT’s Strategic Risk Register – reported separately on the Board agenda.
• The cost value engineering exercise is underway – reported separately on the Board agenda.
4. Delegated Decisions
4.1 None since 20 September 2017.
5.
Corporate Plan Action Plan
5.1 BCT’s Corporate Plan Action Plan for 2017/18 is accessible on the BCT website. The following list are outputs/outcomes achieved during Quarter two against individual objectives:
5.2 Objective Outputs / Outcomes
Continuing to develop the BCT Investment Programme and complete the planned projects.
• The draft AMS Framework will be reported to Board 11/2017.
• Investment and life cycle information on stock condition has been loaded into the housing management test system. A detailed demonstration of the planned maintenance module is being arranged with Capita using BCT test information to complete BCT analysis of the system.
• Hobby room refurbishment - Work has commenced to allocate the new homes to tenants who have the appropriate housing need and have obtained BCT Valued Customer Status. The properties will be occupied on completion.
• Omits phase 2 - Esh Property Services are on site carrying out decent home improvements to 14 properties, completion expected 12/2017.
• Link bridge improvements - Completion extended to 01/2018 due to improvements to Headlam House Link Bridge which requires listed building consent and planning permission.
10.
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• External building and communal improvements to Tom Collins House and Mount Pleasant - Contract awarded to Esh Property Services. Project due to start on site 01/2018.
• District heating internal improvements - Tender award being considered by Board 11/2017.
• Comprehensive environmental upgrade of the estate – Following a meeting with Historic England 08/2017 the tendering process to appoint a design team to work with the Byker Community on environmental priorities for investment will commence 12/2017.
• 4 unit conversion of the former housing office - 09/2017 Board agreed to submit a business case to NCC for the acquisition of the building, explore grant funding opportunities and develop detailed conversion costs to create 4 homes for disabled and older people.
• Revised Right to Buy (RTB) Buy Back Policy using a NPV calculation recommended to Board 07/2017. The revised Buy Back Policy was taken to Board 07/2017 and further details were taken to Finance & Audit Committee 08/2017. The revised Buy Back Policy has now been adopted.
Engaging, empowering and supporting residents.
• Tenant Engagement Strategy (TES) completed and implemented 09/2017. Community Engagement Officer vacancy has been advertised. Interviews to take place w/c 30/10/2017.
• The Engagement Framework was presented to P&SC 10/2017.
• Activities have taken place over the summer and the Annual Tenants Event held on 10/2017 attended over 100 tenants.
• Over 200 Customer Care Visits have been completed as of 10/2017.
• 2 summer trips with an educational theme were delivered and were attended by over 80 tenants.
Contributing to economic health of the neighbourhood.
• Final draft of the Thriving Byker Community Strategy (TBCS) will be complete when the Community Engagement Officer is in post following recruitment 10/2017
• Making a positive difference; Health - Annual Tenant Event has a health and wellbeing theme delivered by partners 10/2017 attended by over 100 tenants. Energy Efficiency - Tender award for District Heating Internal Improvements being considered by Board 11/2017. Digital Inclusion - Virgin Media have held detailed discussions with BCT 10/2017 and are exploring current and potential connectivity in Byker as part of their connecting the country campaign. Welfare Reform - Welfare reform roles advertised 10/2017.
Being a first class strategic Partner.
• NCC - 2 Chirton Wynd will be complete and ready for occupancy 11/2017. Board agreed 09/2017 to submit a business case to NCC for the acquisition of the former housing office, explore grant funding opportunities and develop detailed conversion costs.
• Karbon Homes - Meetings to discuss performance measures and to introduce a more effective system for the flow of keys and viewings during void periods 07/2017. Ongoing and monitored through key performance information reports and weekly internal void meetings.
• Newcastle University - Grant assistance applied for under the Knowledge Transfer Project (KTP) to support the partnership 07/2017. Job advertisement and description has been set for this post subject to grant funding being awarded 11/2017.
• Foundation futures - Secured a tenancy on the former YMCA unit at Dunn Terrace from 09/2017 and will progress their project in Byker.
• NHF - Finance & Resources Team provide ongoing financial management, risk management, governance and all the required back office support to help enable Property Services and Neighbourhood Operations in delivery of their partnership activities. As well as all this established ongoing support some specific examples of recent additional support are: - Assistance with prudential borrowing arrangements for district heating
infrastructure upgrade.
- Financial appraisal of investment proposals. - Assistance with monitoring community activities fund.
Establishing a framework and timetable for new contracts.
• Concierge & cleaning services. A research visit to another housing association completed 09/2017.Initial meeting with current contractor about potential renewal of the contract 09/2017.
• A timetable of 2017/2018 investment projects has been completed and published on BCT website 10/2017.
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Securing outcomes which balance efficiency, economy and effectiveness in all we do.
• VfM review of BCT performance benchmarks by P&SC commenced, including a review of the sector scorecard and BCT balance scorecard by P&SC 10/2017.
• 06/2017 Esh Property Services have engaged 90 pupils from Byker Primary and St Lawrence Primary in the STEM project (Science, Technology, and Engineering & Mathematics). In 07/2017, 60 pupils from St Lawrence Primary School visited the Esh site office in Byker and learned how to stay safe around a construction site. Esh donated £1000 to PLAY in Newcastle and the St Michaels Church to contribute towards their junior youth club. Delivering the hobby room’s contract has enabled 7 apprentices to use the site as part of their ongoing development. Esh have also delivered the Build my Skills employability programme benefitting 448 year 10 students from Heaton Manor and Walker Technology College.07/2017 Revised Buy Back Policy considered by Board, further details considered by Finance & Audit Committee 08/2017.
• Revised Buy Back Policy was adopted. 09/2017 Board agreed to submit a business case to NCC for the acquisition of the former housing office. Empty homes grant funding has been explored from the Homes and Communities Agency 10/2017.
Maintaining a clear approach to risk identification and management.
• New Risk Management Framework adopted by Board on 06/2017. Implemented 07/2017.
Ensuring we continue to have a sustainable Business Plan.
• Work has commenced on the 2018/19 budget, which will be used as the basis for the Business Plan for the period 04/2018. Work is also underway on modelling the timing of investment programme spend against loan availability and investment programme promises up to 2025, which will be fed into the Business Plan.
Focusing on excellent customer service.
• Over 200 Customer Care Visits have been completed as of 09/2017. Recruitment of vacant posts commenced 10/2017.
Continuing to aim for excellence in Governance.
• HQN commissioned to undertake an overarching governance review of current arrangements and enable a revised decision making structure, reinforced by BCT’s Risk Management Framework.
• Chairs Attendance at BCT Tenant Event 10/2017.
Ensuring staff are proud of their work for Byker through support for training, development and remuneration policies.
• Campbell Tickell have supported BCT to complete a full structural review consultation period with staff commenced 07/2017. Revised structure was implemented with effect from 10/2017.
• In this current year staff have been supported on the following external courses including; - Ash Gibson - NEBOSH qualification. - Emily Fullen – Level 4 certificate in Housing CIH Housing Academy
11/2017. - James Clifford - Company Secretary Role Training 12/2017.
• Staff conference will take place 11/2017.
Marketing/PR • BCT Awards 2017/18: - Chartered Institute of Public Relations (CIPR) Excellence awards - BCT
newsletter was awarded the top accolade for ‘Best External Publication’ 06/2017.
- Chartered Institute of Housing (CIH) North East Awards – Outstanding Innovation for the Cost Sharing Vehicle.
- CIH North East Awards – Exceptional Contribution by a CIH member for Jill Haley.
- CIH North East Pride Awards – Best Publication.
6.
Isos Complete Support (ICS) – Driving Efficiency
6.1 6.2
On 11 September 2017, BCTs executive team met with Karbon and conducted a cost performance review of the Service Level Agreements (SLAs) up until 31 August. A full breakdown of costs for each SLA was considered by the Performance and Services Committee on 18 October. The ICS/BCT Management Accounts for the first six months of the year (up until 30 September) have since been reconciled and are below budget at £1,026k, compared to the SLA Pricing model budget assumption of £1,100k.
6.3 This is a positive start to the year however it should be noted that the SLA pricing model
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budget assumption is evenly phased throughout the year and does not take into account seasonal demand fluctuations. In terms of cost incurred a 16% estimated overhead continues to be applied to SLA direct costs as appropriate.
6.4 BCT have agreed with Karbon that a full ‘fit for purpose’ review of each individual SLA will be undertaken during January 2018. In the meantime the performance of each SLA and its associated cost will continued to be closely monitored by BCTs service head at the local monthly meetings.
6.5 Furthermore, it was confirmed at the ICS Board meeting on 17 September that an external service review of the various SLAs would be commissioned to evaluate how services and costs benchmark with other market providers and to understand the differences which the Cost Sharing Vehicle (CSV) adds in relation to customer satisfaction and compliance etc.
7. Cost Sharing VAT Exemption Threat update
7.1 Board will recall that at its April meeting a discussion was held about various separate legal cases which had been heard in the Court of Justice of the EU (CJEU), which cast some doubt over whether or not the ‘Cost Sharing Exemption’ (CSE) would enable housing associations such as BCT and Karbon to share resources in the future without incurring a VAT. The CSE was only introduced into UK law in 2012 and, owing to the strict rules governing its use, it has not been extensively implemented in the UK.
7.2 On Thursday, 21 September 2017 CJEU released its judgments in the Latvian case of DNB Banka (C- 326/15), the Polish case of Aviva (C-605/15) and in infringement proceedings brought by the European Commission v Germany (C- 616/15). The cases consider the operation of the cost sharing exemption (CSE).
7.3 To summarise the result, the CJEU has held that the CSE can only be used by organisations which provide VAT exempt services listed in law as being in the ‘public interest’. This list includes education, health and welfare services, for example, but specifically excludes financial services, betting and gaming and real estate services.
7.4 The CJEU has ruled that under the current CSE VAT Directive, housing associations cannot benefit from the VAT exemption for services provided by a cost sharing group as they do not class housing association business as being in the ‘public interest’ (despite housing associations being categorised as a ‘public body’ under EU public contract regulations and for other purposes).
7.5 The National Housing Federation (NHF) and their tax advisers Deloitte have been monitoring the situation closely on behalf of the BCT, Karbon Homes, Two Castles and other housing organisations, who like us have taken the initiative to make valuable savings in this way.
7.6 The NHFs current view is that it is within HMRCs gift to a certain extent, on how they enact this EU ruling in relation to UK housing associations. NHF are awaiting a meeting with HMRC to discuss the matter, they have requested that the BCT and Karbon CE’s (along with others) attend the meeting, to put forward their argument for housing associations.
8. 8.1
Homes and Communities Agency (HCA), Value for Money (VFM) Standard The VFM Standard was introduced in 2012. The standard is the way by which the HCA regulates the performance of Registered Providers of social housing (RPs) in terms of performance of their functions economically, efficiently and in a manner that value is
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obtained from social housing investment.
8.2 The HCA is proposing to revise and replace this standard with one which is strengthened, alongside a supporting Code of Practice which will aid registered providers in their understanding of the VFM standard.
8.3 On 27 September the HCA launched a consultation paper on both the VFM standard and the Code of Practice. The consultation is an opportunity for organisations to influence the development and implementation of the revised VFM standard and its code of practice which is due to come into force in April 2018. The document is summarised below. For easy reference attached at Appendix A are Annex 1 - Value for Money Standard 2018 and Annex 2 - Value for Money Code of Practice. The full consultation document can be accessed at: https://www.gov.uk/government/consultations/consultation-on-the-value-for-money-standard.
8.4 The HCA's proposed changes on updating the standard reflect the environment RPs are now operating in. The consultation document outlines the following objectives for the revised standard:
• To continue improvement in VFM in the sector • To embed a strategic approach in businesses for delivering VFM • To encourage investment in existing homes and new housing supply • To enhance consistency, comparability and transparency in VFM reporting
8.5 The HCA has said that it is "more important than ever" that RPs demonstrate how their
VFM delivers the new and affordable housing and tenant support that is needed.
8.6 The new standard aims to move away from the currently published “value for money self-assessment” reporting, to include more focused reporting, introducing a set of metrics (a subset of the Sector Scorecard), as well as the requirement to evidence performance against a RP’s own targets – recognising the increasing diversification of the sector.
8.7 The boards of RPs are still expected to maximise organisational objectives by having a comprehensive and strategic approach to VFM, delivering and demonstrating it. While the basic principles in the standard remain the same as before, the proposed approach seeks to strengthen board accountability and enhance consistency, comparability and transparency.
8.8 The HCA has set out clear outcomes for providers to achieve through the proposed standard. These are to:
• Clearly articulate their strategic objectives, including their strategy for delivering homes that meet a range of needs
• Have a strategic approach, agreed by the board, to achieving VFM in meeting these objectives and demonstrate their delivery of VFM to stakeholders
• Ensure that optimal benefit is derived from resources and assets to optimise economy, efficiency and effectiveness in the delivery of their strategic objectives
8.9 RPs will be required to demonstrate the action and activity they have taken to deliver
these required outcomes.
8.10 The annual accounts should include evidence that enables stakeholders to understand providers’ performance against their targets including any metrics set out by the regulator, how that performance compares to peers, and measurable plans to address any areas of underperformance.
10.
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8.11 The proposed standard defines VFM as maximising outcomes as well as controlling
costs – it embraces the use of all resources and assets at the provider’s disposal.
8.12 Key implications and considerations for RPs include:
• Up-to-date strategic objectives must be in place, supported by measurable outcome-based targets.
• VFM should be a strategic issue, embedded throughout the organisation. This could include a standalone VFM strategy or principles embedded in the corporate objectives.
• Embedding VFM means a comprehensive approach to VFM delivery – the application of the three ‘Es’ (economy, efficiently and effectiveness) to operations, strategic decision-making and oversight.
• A rationale and approach for balancing investment in existing stock, improvements in services for tenants, and investment in new development – evidencing the trade-offs and strategic decisions aligned to achieving VFM through delivery of strategic objectives.
• Non-social housing activity should be taken into account when considering VFM and supported by robust business cases.
• Boards should fundamentally challenge the existing way of achieving objectives when making decisions. This includes use of assets, service delivery structures and organisational form. Where expected levels of delivery aren’t being achieved, they need to ensure they have the systems in place to challenge executives.
• Boards need an ongoing grasp of VFM performance and to demonstrate that their decisions are rooted in its consideration. This requires appropriate performance monitoring and reporting systems that span the 3 ‘Es’ operationally (across all activities) and strategically. This includes reporting absolute costs, how these costs compare to other organisations, how they have changed over time and what is driving costs. Such systems also facilitate an understanding of inputs, versus outputs achieved and enable corporate VFM target-setting.
• Boards will need to understand the proposed regulatory reporting requirements and consider how additional data would aid stakeholder understanding of their performance. Reporting in the accounts needs to be clear, concise and appropriate.
• The assessment of VFM, including through in-depth assessments, is increasingly data driven. There is a requirement to demonstrate a deep understanding of costs and cost drivers, including service quality and scope, supported by objective evidence.
8.13 While consultation on the standard runs to 22 December 2017 and its implementation is
not until April the direction of travel is clear, the HCA expects boards to demonstrate regular and appropriate consideration of potential VFM gains. This must include full consideration of costs and benefits of alternative commercial, organisational and delivery structures.
8.14 Boards of RPs need to:
• Understand data, costs and strategic and operational performance across teams, departments and functions throughout the business.
• Review strategic objectives to assess how these can be measured, what targets are required and how performance is reported.
• The proposed standard sets out expectations that appropriate targets are in place for measuring performance in achieving VFM.
• Capture and internally articulate the reasons for the levels of investment in existing stock, improvements in services for tenants, and investment in new development. The proposed standard required boards to “strike an appropriate balance” and RPs will need to be able to explain what this balance looks like to them and evidence their rationale.
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8.15 Next Steps for BCT
BCT already have a VFM statement and objectives and have identified the need to look its VFM aim (set earlier in the year) of reaching sector medium performance by 2020. The Performance and Services Committee commenced the VFM review at its October meeting and progress is covered in a separate report to this meeting.
9. Consumer Regulation Review (CRR) 2016/17
9.1
The CRR 2016/17 was published in October. The document explains how the HCA has gone about implementing the legislation on consumer regulation between April 2016 and March 2017 and its consumer regulation work (case studies) and lessons learned in the year.
9.2 The BCT executive team will consider the CRR and report any resulting considerations and/or actions from it to 20 December meeting.
10. General Data Protection Regulation (GDPR)
10.1 GDPR comes into force on 25 May 2018 and it is the largest overhaul of data protection since 1998 Act. The driver behind the Act is to bring the UK laws up to date and to bring EU law into our domestic law.
10.2 The three main objectives of GDPR are; to maintain public trust in how personal data is handled; to ensure uninterrupted data flows between the UK, EU and Globally, for trade purposes and to maintain the ability to share, receive and protect data for security and law enforcement purposes following Brexit.
10.3 Implications for BCT
10.3.1 GDPR is much more rigorous than current DPA and will have a significant impact on how we handle personal information on tenants, customers, projects and staff. It is essential that BCT undertakes a review of all current DPA controls and mechanisms operating across the business to ensure they fully meet what is needed.
10.3.2 During October a cost tender exercise with legal specialists was carried out to commission an external review of BCTs current controls, specifically to:
• Review of current DPA controls and mechanisms operating across BCT and the Cost Sharing Vehicle (CSV) with ISOS Complete Support (ICS) to ensure that they fully meet the GDPR requirements.
• Board and staff training on GDPR – How will the GDPR impact BCT in relation to our tenants, customers, projects, staff, Board and the CSV?
• Advise on how we should handle and manage data within the organisation to ensure that customer data is safe, and how we gain counsel for its use.
10.3.3 When the specialist review of BCT is complete, all findings and actions will be reported
to Board as part of a wider training session and prior to the implementation of GDPR.
11. 11.1
Equality and Diversity (E&D) Training E&D training for BCT Board and staff is now facilitated on line. In order to complete the training Board members will receive an emailed link week commencing 13 November. Please click on the link and follow the instructions to complete the training. If you experience any problems in completing the online training please contact Jamie Finn on 0191 223 8791 or [email protected]
10.
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12. Contact Officer
12.1 If you have any questions about this report that you would like clarifying before the
meeting, you can contact Jill Haley by telephone on 0191 290 3910 or email [email protected]
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Annex 1: Value for Money Standard 2018
1 Required outcomes
1.1 Registered providers must:
a) clearly articulate their strategic objectives
b) have an approach agreed by their board to achieving value for money in meeting
these objectives and demonstrate their delivery of value for money to stakeholders
c) through their strategic objectives, articulate their strategy for delivering homes that
meet a range of needs
d) ensure that optimal benefit is derived from resources and assets and optimise
economy, efficiency and effectiveness in the delivery of their strategic objectives.
2 Specific expectations
2.1 Registered providers must demonstrate:
a) a robust approach to achieving value for money – this must include a robust
approach to decision making and a rigorous appraisal of potential options for
improving performance
b) regular and appropriate consideration by the board of potential value for money gains
– this must include full consideration of costs and benefits of alternative commercial,
organisational and delivery structures
c) consideration of value for money across their whole business including their approach
to investment in non-social housing activity – they should include whether this
generates returns commensurate to the risk involved and justification where this is
not the case
d) that they have appropriate targets in place for measuring performance in achieving
value for money in delivering their strategic objectives, and that they regularly monitor
and report their performance against these targets.
2.2 Registered providers must annually publish evidence in the statutory accounts to enable
stakeholders to understand the provider’s:
a) performance against its own value for money targets and any metrics set out by the
regulator, and how that performance compares to peers
b) measurable plans to address any areas of underperformance, including clearly stating
any areas where improvements would not be appropriate and the rationale for this. 10
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Annex 2: Value for Money Code of Practice
The role of the Code of Practice
1. This Code of Practice (the Code) is designed to amplify the requirements in the Value for
Money Standard (the Standard). It is designed to help registered providers 1 understand
what the regulator is looking for when seeking assurance on compliance with the Standard.
The Code clarifies the Standard by explaining and elaborating on the content, with illustrative
examples where necessary. Registered providers must have regard to the Code when
assessing their compliance against the Standard. In considering whether the Standard has
been met, the regulator will have regard to the Code. It is therefore important that registered
providers are familiar with its content. However, it is the Standard rather than the Code that
the regulator will enforce against.
2. The regulator adopts a co-regulatory approach. It has statutory objectives in relation to
economic and consumer matters and sets standards in both areas. Responsibility lies with
the boards2 of registered providers to ensure that they meet the regulator’s standards. In
light of our co-regulatory approach, these standards only prescribe outcomes and
expectations. Providers are free to choose how they will achieve those outcomes and
expectations.
3. This Code explains those outcomes and expectations set out in the Value for Money
Standard in more detail. It does not elaborate on all outcomes and expectations set out in
the Standard; it only provides further explanation where the regulator believes that this is
required. Commentary within the Code does not indicate a greater importance to that
element of the Standard. Registered providers need to comply with the entire Standard.
4. Examples of how registered providers might achieve compliance are not intended to be
exhaustive nor prescriptive. Registered providers are free to comply with the requirements of
the Standard in any way that they consider appropriate. If there are any conflicts between
the Code and the Standard, the Standard takes precedence.
Required outcomes Paragraph 1.1 a– d) – Achieving value for money in meeting strategic objectives
5. Registered providers must ensure that clear, up-to-date strategic objectives are in place.
These objectives must:
• deal with the medium to long-term future of the organisation
• include measurable targets based on outcomes, and
• be demonstrably linked to the aims and purpose of the organisation.
1 In the context of this document the term “registered providers” refers to private registered providers
2 Throughout this Code references to registered providers' 'boards' should, where a registered provider does not have a
board, be taken to include an equivalent management body as appropriate.
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6. In articulating their strategic objectives, registered providers may choose to embed value for
money within those objectives, or may alternatively have a standalone value for money
strategy. Whichever approach is taken, a comprehensive approach to value for money
needs to be embedded throughout the business including at the level of individual business
streams.
7. Providers’ objectives must articulate their strategy for delivering homes that meet a range of
needs. This might, for example, include their plans for new development to meet unmet
housing need in particular localities, or investment in the existing stock to sustain its quality
and/or better meet the needs of particular client groups.
8. Achieving value for money should include achieving economy, efficiency and effectiveness
in all areas of activity, taking into account the outputs achieved as well as input costs.
Economy, efficiency and effectiveness are defined as follows:
• Economy: minimising the cost of resources used while having regard to quality
• Efficiency: the relationship between the output from goods or services and the
resources to produce them
• Effectiveness: the extent to which objectives are achieved and the relationship
between intended and actual impacts.
9. Registered providers must ensure that they achieve optimum economy, efficiency and
effectiveness in delivery of their strategic objectives recognising the need to balance factors
such as available resources, risks and other duties the provider must comply with (such as
health and safety requirements) to ensure long-term financial viability.
10. In terms of deriving “optimal benefit” from resources and assets, registered providers should
take a measured and proportionate approach, taking into account the requirements of all the
standards, in particular the Governance and Financial Viability Standard.
11. Further detail on expectations for delivering optimal benefit can be found in paragraph 15 of
the Code.
12. Registered providers must ensure that they have sought to maximise the financial return
from their assets and activities in so far as that is consistent with achievement of the
organisation’s wider organisational purpose and strategic objectives. Social housing
businesses will generally receive a lower- than-market return on social housing assets as
renting properties below the market rate is an integral part of their social purpose. However,
where a provider has had to accept lower financial returns in pursuit of their purpose, the
rationale for this should be clearly articulated and justified.
13. Registered providers must also be able to demonstrate that they have a full understanding of
the return they generate from their assets compared to the costs of maintaining those
assets. Registered providers should be able to demonstrate how this return varies across
their asset base, e.g. according to stock type or geographical location. Where assets are not
apparently achieving the maximum expected return, registered providers should be able to
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articulate the rationale for continued support of the asset. This may be, for example, that
historical covenants are in place, which restrict the sale of properties even where there are
high maintenance costs.
Specific expectations Paragraph 2.1 – Approach
14. Registered providers must ensure their approach to the management of resources and
assets is strategic, comprehensive, and clearly linked to achieving strategic objectives. This
includes assurance around the robustness of decision making in this area.
15. Registered providers must ensure they meet their organisational purposes and objectives
(including, where relevant, charitable objectives) when considering the use of resources or
assets. Resources and assets should be considered in the widest sense, for example it must
not be limited to use of physical assets and resources, but should include investments into
particular services or business streams. It should also include consideration of whether their
approach to remuneration and employment costs represent optimal use of resources.
16. An effective approach to value for money requires consideration and action to be taken at
both:
• an operational level – maximising value for money in the activities they carry out
• a strategic level – ensuring that value for money is considered and addressed in all
strategic decisions.
17. Registered providers must ensure that they have an understanding of absolute costs, how
these costs compare to other organisations, and how they have changed over time.
Registered providers should understand what is driving their costs and make sure that they
are getting the desired quality at the lowest price.
18. Robust decision making must include a ‘rigorous appraisal’ of all potential options for
improving performance and may include (but is not limited to):
• cost inputs versus outputs achieved
• opportunity cost of using assets and resources in their current function
• comparison against potential alternatives
• evaluation of implications for delivery of objectives.
19. In some instances the existing commercial, organisational or delivery structures within a
registered provider may not be the best vehicle to enable the organisation to achieve its
organisational objectives. It is incumbent on boards to actively consider the opportunity costs
of their current structures compared to a range of alternatives, and the implications for
delivery of objectives and maximising value for money.
20. This could include the potential benefits and limitations of considerations such as (but is not
limited to):
• corporate structure
• procurement
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• diversification / divestment of business streams
• investment in non-social housing activity including that undertaken in any
unregistered subsidiary
• partnership arrangements
• standalone business versus merging with another provider, and geographic areas
of operation.
21. Where investment in non-social housing activity is being undertaken either by the registered
provider or through an unregistered subsidiary, this activity should generate returns
commensurate to the risks involved. Non-social housing-related activity may bring with it
more inherent risk than more traditional social housing activity. Where this is the case,
registered providers should fully understand and balance the risks associated with the
activity versus the rewards they expect to receive.
Paragraph 2.2 – Reporting
22. Transparency and accountability help drive improvement in value for money. Transparency
requires appropriate performance monitoring and reporting systems, encompassing all
elements of the value chain and the economy, efficiency and effectiveness of boards’
actions and decisions. Where boards find that expected levels of delivery are not being
achieved, they should ensure that they have the systems and skills in place to be able to
challenge executives. They should also ensure that robust plans are in place for
improvement, or where it would not be appropriate to undertake improvements this should
be clearly stated and the rationale for the decision set out.
23. Registered providers must ensure that the reporting undertaken meets the requirements of
the Standard, including the requirement to report against the metrics defined by the regulator
and to report value for money at a group level, taking into account all areas of the
organisational structure. Registered providers should also report on different activities and
types of assets that are appropriate to their business priorities. Registered providers who
undertake a range of different activites are expected to report on those activities separately
to their social housing activity. They should also consider their actual performance, previous
year’s performance, five-year forecast, and targets for five-year forecasts in relation to
strategic objectives.
24. Registered providers are also free to report any additional measurements that they consider
would aid understanding of their performance (e.g. costs and outcomes for supported
housing and other specialist areas of the business). Explanation of underlying factors
influencing performance must be factual and concise and easily identifiable.
25. Registered providers are required to publish reporting on the above in their statutory
accounts in a way that is clear, concise and appropriate to their stakeholders.
Legal status of the Code
26. This Code is issued by the Homes and Communities Agency – the regulator of social
housing, under section 195(1) of the Housing and Regeneration Act 2008 (as amended) (the
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Act). It relates to the Value for Money Standard (the Standard) set by the regulator under
section 194 of the Act.
27. Section 195(2) of the Act provides that the regulator may have regard to the Code when
considering whether the Standard has been met.
28. The Code applies to all registered providers which are subject to the Standard (i.e. private
registered providers and not local authority providers of social housing.)
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BCT Board – 01 November 2017
Title: Performance Report Quarter Two and Operational Update. Report By: Philip Pollard, Director of Operations FOR INFORMATION
Business Implications
Risk • The report outlines key performance information and where satisfactory performance is not being achieved, mitigations will be outlined to ensure performance improvements and eliminate risks for the business.
Financial and Value for
Money • The report outlines key performance information and the monitoring of Service
Level Agreements relating to operational delivery. Where satisfactory performance is not achieving target, mitigations will be outlined to ensure that performance improves and that BCT continue to achieve VFM for contracts that are in place.
People/Consultation • By working closely with residents and communities through Customer Care Visits and the Tenant Engagement Strategy we will establish customer priorities whilst also providing the opportunity for customers to input into service delivery.
Equality and Diversity • Byker has a very diverse community and by engaging with all residents through Customer Care Visits and the Tenant Engagement Strategy we are able engage with those whose characteristics are detailed in the Equality Act.
Environment Implications • There are no environmental implications.
Contractor Implications • There are currently no contractor implications however performance of contractors is closely monitored through Service Level Agreements to ensure that performance is achieved.
1. Recommendations
1.1 The BCT Board are recommended to note and discuss the content of this report.
2. Synopsis
2.1 This report provides performance information relating to for quarter two of the 17/18 financial year and covers the months of July, August and September.
2.2 The report also provides a headline update regarding operational service delivery with a particular focus upon Customer Care Visits, the Cost Sharing Vehicle with Karbon, and the development of performance measures whilst giving consideration to Value For Money (VfM) by the Performance and Services Committee (P&SC).
3. Performance Update
3.1 The BCT balanced scorecard outlines operational performance in key areas as follows:
• Customer Services
• Stock Investment
• Tenancy Management (Voids and Lettings)
• Income Management (Tenancy)
• Corporate Health The scorecard is attached at Appendix A.
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3.2 Customer Services: Three Key Performance Indicators’ (KPIs) have been developed covering Customer Services. The KPI’s are as follows:
• Number of complaints received
• Number of compliments received
• Number of customer satisfaction surveys completed
3.2.1 There was one complaint received during the second quarter of the year. The complaint related to an aids and adaptations request and was resolved to the satisfaction of the complainant.
3.2.2 There were two compliments received during the second quarter of the year. Compliments related to Repairs and Grounds Maintenance.
3.2.3 A Customer Care Visit programme has been developed and is currently being delivered by the Neighbourhood Housing Team. At the end of quarter two, 201 surveys have been completed, which equated to 112 during the quarter. Headline information continues to highlight concerns relating to waste management and anti-social behaviour both of which continue to be addressed through multi-agency working groups.
3.3 Stock Investment: Four KPI’s have been developed to cover the responsive repairs. All indicators performed above target for quarter two.
3.3.1 The indicator for the percentage appointments made and kept was at 98.1% for quarter two and is at 98.2% for the year to date against a target of 95%.
3.3.2
The KPI for the average responsive repair cost has a target of £120 including support
staff costs. There were a total of 1,627 repairs completed during this period giving an
average repair cost of £104 which is well inside of the target. Year to date, the average
cost is £96.
Month Direct Costs
£
Support
Costs £
(40%)
Total
Cost £
Repairs
Completed
Average
Repair Cost
£
July 57,752 6,537 64,289 615 105
August 41,274 7,799 49,073 489 100
September 49,365 5,874 55,239 523 106
3.3.3
The percentage of responsive works orders completed on time stands at 98.3% against a target of 98% at the end of quarter two. Performance achieved target during the quarter following below target performance during the first two months of the year. The average time to complete responsive works stood at 7.2 days at the end of quarter 2 and 7.9 days year to date against a target of 10.5 days for the year.
3.3.4 It should be noted that as at the end of quarter two, 100% of dwellings had a valid gas safety certificate.
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3.4 Tenancy Management (Voids and Lettings) KPIs for this area of the operational service cover how efficiently and effectively the stock is being managed and properties are being let.
3.4.1 In terms of void management, some performance indicators are outside of target for the year so far. There have been some issues concerning the number of void properties as a result of the number of evictions due to rent arrears.
3.4.2 The KPI for the average cost of all void works per property has a target £2450
including support costs. The direct costs of providing the void repair service for the
period of quarter two was £146,374 with support costs of £20,210. During this period
there were 73 voids completed which gives an average cost of £2,374 per void
property. Year to date the monthly average has fluctuated above and below the target
with year to date performance standing at £2,475 therefore marginally missing the
target.
Month Direct Costs
£
Support
Costs £
(40%)
Total
Cost £
Voids
Completed
Average
Void Cost £
July 53,874 6,537 60,411 27 2,237
August 48,050 7,799 55,849 29 1,926
September 44,450 5,874 50,324 17 2,960
3.4.3
The stock turnover as a percentage of all stock performed at 13.4%, which is outside of the target of 10% at the end of quarter two and stands at 12.8% year to date however is showing improvement from the end of year 16/17 which was 14.7%. This is due to the number of evictions as previously outlined to the committee. The figure is particularly high as a result of evictions due to rent arrears.
3.4.4 The percentage of dwellings that were vacant and available to let performed outside of target standing at 1.8% at the end of quarter two against a target of 1.0%. This performance needs to be taken into context with the high number of terminations previously outlined.
3.4.5 The average re-let time at the end of quarter two, using the Housemark definition, was 36.5 days year to date. This is an improvement from the 39.1 days for the year 16/17 and this indicator is being closely monitored through weekly meetings with the staff responsible for the allocation of properties. It should also be noted that a focus has been placed upon ensuring that properties are being allocated in line with affordability checks and pre-tenancy training in order to mitigate against tenancy failure due to rent arrears.
3.5 Income Management The KPIs covering income management have been developed to assess whether rental income is being maximised in an efficient and cost effective way.
3.5.1 The percentage of income collected against the debit stood at 98.2% at end of quarter two, which is in the lower quartile in terms of benchmarking performance. Performance has dipped since the first quarter as we begin to see the impact of the introduction of Universal Credit. The indicator is showing improvement from the 16/17 year end which
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stood at 98%. The current arrears position is £762,426.32 as of week 25 of the financial year which is an increase from the end of year 16/17. The table below outlines the rent arrears position and some of the work that is being done to address the situation as well as making comparisons with Universal Credit cases.
Measure Position (Week 25 2017-18)
Number of Tenancies 1777
Households with no arrears 503
Households with arrears 1274
Households with arrears less than £250 580
Households with between £1-2k arrears 153
Households with over £2k arrears 100
Universal Credit cases 239
Average arrears per household Non U/C £478.92
Average arrears per household U/C £1119.10
Households with a NOSP (YTDQ2) 139
Evictions (YTDQ2) 24
Active Suspended Possession Orders 128
3.5.2 Universal Credit (U/C) was introduced in Newcastle during February 2017 and we are starting to see a severe impact upon the levels of rent arrears. As of week 25 of the financial year there were 239 active U/C cases equating to £267,467.45 of arrears. This equated to a 23.08% arrears balance as a percentage of the annual debit. This is consistent to what other housing organisations in the area are observing. Week 44(2016-17) full
roll out commences Week 25(2017-2018) current figures
Number of U/C cases 177 239
Cat 1 tenancy debt £655,462.66 £762,426.32
Cat 1 U/C tenancy debt £137,070.77 £267,467.45
Average U/C debt per tenant
£774.40 £1119.10
U/C arrears as % of annual debit
14.13% 22.39%
Net arrears as % of annual debit
6.96% 8.64%
Net arrears as % annual debit excluding U/C
6.13% 6.49%
The table above shows that non U/C rent arrears are much lower at 6.49% compared to 22.39% for those in receipt of U/C. Rent arrears are following the trend that was predicted at the start of the year which would mean that performance targets set for the year would be achieved if it were not for the debt that U/C is creating.
3.5.3 In order to mitigate against the risks to income as a result of the introduction of U/C, rent surgeries have been introduced and are regularly over-subscribed with tenants. Additional resource is currently being recruited in order to support tenants through the U/C process. Pre-tenancy training has also been introduced in order to support tenants with improving skills and knowledge concerning household budgets, money management and welfare benefits.
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3.5.4 Current rent arrears net housing benefit as a percentage of the rent debit stood at 8.9% at the end of quarter two. This is performing outside of target however it should be noted that there has been an increase in the percentage figure due to the overall level of annual debit reducing because of the removal of furniture charges at the end of April 2017.
3.5.5 Former tenants arrears as a percentage of the rent debit is performing 3.6% at the end of quarter two and has reduced by 0.6% since the end of the 2016/17. This is outside of target and performing in the lower quartile in terms of benchmarked performance. All former tenant arrears accounts have been reviewed and are at the correct stage of the collection process.
3.5.6 The current and former tenant arrears write off is performing at 4.0% for the year to date at the end of quarter two.
3.5.7 Former tenant arrears stood at £451,082.63 at the end of quarter two. Positive collection rates continue to be observed with regards to the overall debt. At the end of quarter two £32,405 has been collected in former tenant debt.
3.5.8 The total tenancy debt at the end of quarter two stood at £ £909,904.10 which has increased since the start of the year as a result of the evictions that have taken place and also the introduction of Universal Credit.
3.6
Corporate Health
3.6.1 During the second quarter, the number of days lost to sickness per employee stood at 3.50 days annualised against an annual target of 7.5 days. In terms of benchmarking, this places the organisation in the upper quartile compared to the peer group against a target of 5.93 days.
3.6.2 Staff turnover was 58.5% annualised during the second quarter against a target of 10%. This figure does look exceptionally high due to it being annualised. There were four people left the organisation during the quarter. Two left due to finding alternative employment and two left as a result of the restructuring exercise that has taken place. In terms of benchmarking, this places the organisation in the lower quartile compared to the peer group against a target of 7.0%.
4. Operational Update
4.1 The process of undertaking ‘Annual Customer Care’ visits has commenced. The aim is to improve BCT’s knowledge of the customer base, increase customer involvement in service delivery, complete a property inspection and gain an insight into the needs of customers when shaping future services and commissioning. At the end of the second quarter, 201 visits have been completed. Customers are very supportive of the visits and have found them to be a useful mechanism for communicating with BCT. The visits have also shown that properties are generally being kept and maintained to acceptable standards.
4.2 The Customer Care visits have highlighted a number of key themes for tenants with particular concerns being raised around waste management. Positive work continues with Newcastle City Council to address the issues. In terms of anti-social behaviour there has also been some positive work undertaken with Newcastle City Council and the Police in order to address the situation. Three closure orders have been made on properties as well tenancies being terminated as a result. BCT are continuing to work closely with wider partners in order to ensure that these issues of an anti-social behaviour are addressed and suitable support mechanisms are in place for victims.
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4.3 The Sector Scorecard, which will form a key part of the measurement of efficiencies
within the sector, is to be introduced from April 2018 following a year-long pilot that is
being supported by over 200 housing associations.
4.4 BCT currently use a balanced scorecard in terms of performance management and it is
important BCT begin to consider how both the balanced scorecard and the Sector Scorecard are used and developed to ensure that BCT meeting regulatory requirements. The Homes and Communities Agency has also announced that within the Value for Money (VfM) Standard consultation that the regulator proposes to use the Sector Scorecard to measure efficiencies.
4.5 At their meeting on 18th October Performance and Services Committee commenced a VfM review with regards to how BCT will address performance improvement targets in relation to achieving median sector benchmarks by 2020. As part of that process quality and cost information will also be taken into account from both from a BCT and tenant’s perspective. An exercise is to be undertaken to review performance measures in order to address the following:
• Where are we now?
• What is the median?
• What is the gap?
• What are we doing and what else can we do to reduce the gap?
4.6 The BCT Board have already developed a value for money statement which reads, “The BCT is committed to delivering VfM in the interests of tenants and the wider community because we want to minimise financial pressures on households adversely affected by the economic pressures which they face, in addition to improving services and customer satisfaction. We believe it is important to establish a culture of continuous improvement and to do so, engage with our tenants and residents to determine their views and priorities.” The BCT Board also need to consider and review the VfM statement as part of the required compliance with the new VfM Standard when it has been finalised. Information relating to the VfM Standard consultation is included in the Chief Executives Report.
4.7 BCT have received the Management Accounts for the first half of the year to September 2017 relating to the Cost Sharing Vehicle (CSV) with Karbon. Year to date costs total £1,026k compared to the SLA Pricing model budget assumption of £1,100k, demonstrating a year to date saving of £74k.
4.8 The BCT will be leading a review of the CSV and all Service Level Agreements commencing in January 2018. This is to ensure that BCT continue to focus on efficiencies and value for money from this arrangement.
5. Conclusion
5.1 In terms of repairs and maintenance the majority of indicators are performing close to target with work continuing to report overall costs. There has been some impact on the cost of void repairs due to the condition of the properties following evictions although this is starting to show improvement.
5.2 Performance with regards to lettings is currently outside of target however it should be taken into account that there has been an exceptionally high turnover of properties. This has been exasperated by a high number of evictions for rent arrears where by the
Page 43 of 52
conditions of the properties has been extremely poor which has also impacted on the time taken to repair voids to a suitable standard.
5.3 Income management performance is well outside of target in terms of the Housemark benchmark, however it should be noted that positive progress has been made since service transition. Universal Credit is now having an adverse impact upon overall performance however mitigations have been put into place. An additional briefing note on Universal Credit was presented to the Performance and Services Committee on the 18 October and regular reports will continue to be presented. Additionally, a meeting has been arranged between senior BCT staff and Nick Brown MP to discuss the impact it is having on BCT and our tenants.
6. Contact Officer
6.1 If you have any questions about this report that you would like clarifying before the meeting, you can contact Philip Pollard by telephone on 0800 533 5442 or email [email protected]
11.
Page 44 of 52
Byk
er
Co
mm
un
ity T
rus
t: Q
2 2
017
/18
Cu
sto
mer
Se
rvic
es
Do
es
th
e o
rga
nis
ati
on
de
liv
er
ex
ce
lle
nt
cu
sto
me
r s
erv
ice d
uri
ng
all
in
tera
cti
on
s w
ith
ten
an
ts?
Num
be
r o
f co
mp
lain
ts r
ece
ive
d-
13
--
-
Num
be
r o
f co
mp
lime
nts
re
ceiv
ed
-2
10
--
-
Num
be
r o
f cu
sto
me
r sa
tisfa
ction
su
rve
ys c
om
ple
ted
-11
22
01
--
-
Num
be
r o
f M
P E
nq
uir
ies
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6-
--
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ck
In
ve
stm
en
t
Do
es
th
e o
rga
nis
ati
on
pro
vid
e a
re
sp
on
siv
e r
ep
air
s s
erv
ice
to
its
te
na
nts
?
Pe
rce
nta
ge
of
ap
po
intm
en
ts m
ad
e a
nd
ke
pt
95
.0%
98
.1%
98.2
%M
-UQ
98
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99.3
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Pe
rce
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ge
of
resp
onsiv
e w
ork
s o
rde
rs c
om
ple
ted
on
tim
e98
.0%
98
.3%
97.5
%-
--
Ave
rag
e tim
e t
o c
om
ple
te r
espo
nsiv
e w
ork
s o
rde
rs1
0.5
7.2
7.9
LQ
6.7
4.7
Ave
rag
e c
ost
of
resp
on
siv
e r
ep
air
s£
12
0£
10
4£
96
--
-
Ove
rall
perc
en
tag
e o
f cu
sto
me
rs v
ery
/fa
irly
sa
tisfie
d
with t
he
wa
y th
e c
all
wa
s h
an
dle
d w
he
n r
ep
ort
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a
rep
air
-9
2.0
%9
4.7
%-
--
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rall
perc
en
tag
e o
f cu
sto
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/fa
irly
sa
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qu
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pa
ir-
10
0.0
%9
6.0
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--
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rall
perc
en
tag
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sto
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rs v
ery
/fa
irly
sa
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with t
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pa
ir s
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on
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n-
10
0.0
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3.3
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--
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11. A
ppen
dix
A
Page 45 of 52
Is t
he
org
an
isa
tio
n e
ns
uri
ng
th
e s
afe
ty o
f it
s t
en
an
ts b
y a
dh
eri
ng
to
re
gu
lato
ry s
tan
da
rds
?
Pe
rce
nta
ge
of
dw
elli
ngs w
ith
a v
alid
ga
s s
afe
ty
cert
ific
ate
100
.0%
10
0.0
%1
00.0
%U
Q1
00
.0%
10
0.0
%
Te
na
nc
y T
erm
ina
tio
n,
Vo
id W
ork
s a
nd
Le
ttin
gs
(T
en
an
cy
)
Ho
w e
ffic
ien
tly
an
d e
ffe
cti
ve
ly i
s t
he
org
an
isa
tio
n p
roc
es
sin
g v
oid
s t
o a
le
tta
ble
sta
nd
ard
?
Vo
id insp
ectio
n a
ve
rage
wo
rkin
g d
ays
3.0
2.7
2.8
--
-
Vo
id w
ork
s a
vera
ge
da
ys (
Sta
nd
ard
)1
8.0
16
.71
5.4
--
-
Vo
id w
ork
s a
vera
ge
da
ys (
Str
uctu
ral)
33
.0-
34
.7-
--
Ave
rag
e c
ost
of
void
wo
rks p
er
pro
pe
rty
£2
,50
0£
2,9
60
£2
,47
5L
Q£
2,0
07
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,18
3
Do
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th
e o
rga
nis
ati
on
le
t it
s p
rop
ert
ies
eff
icie
ntl
y a
nd
eff
ecti
ve
ly?
Sto
ck tu
rnove
r as a
pe
rce
nta
ge
of
all
sto
ck
(an
nua
lise
d)
10
.0%
13
.4%
12.8
%L
Q9
.5%
5.0
%
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rce
nta
ge
of
dw
elli
ngs v
aca
nt a
nd
ava
ilab
le t
o let
1.0
%1
.8%
1.6
%L
Q0
.3%
0.1
%
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rce
nta
ge
of
dw
elli
ngs v
aca
nt a
nd
un
ava
ilab
le to
le
t0
.2%
0.1
%0.2
%M
-UQ
0.3
%0.0
%
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id r
en
t lo
ss a
s p
erc
en
tag
e o
f a
nn
ua
l re
nt
de
bit
1.0
%1
.8%
1.8
%L
Q1
.1%
0.3
%
Ave
rag
e r
ele
t tim
e (
Ho
use
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rk S
tan
da
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.542
.43
6.5
LQ
19
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arg
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r to
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ch
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Page 46 of 52
Inc
om
e M
an
ag
em
en
t
Is t
he
org
an
isa
tio
n m
ax
imis
ing
its
re
nta
l in
co
me
in
an
eff
icie
nt
an
d c
ost
eff
ec
tiv
e w
ay
?
Pe
rce
nta
ge
re
nt
co
llecte
d a
ga
inst a
nn
ual n
et
ren
t de
bit
99
.9%
98
.2%
98.3
%L
Q9
9.7
%1
00.1
%
Curr
ent
ren
t a
rre
ars
ne
t ho
usin
g b
en
efit
as a
pe
rce
nta
ge
of
an
nua
l re
nt
de
bit
1.8
%8
.9%
8.9
%L
Q2
.1%
0.8
%
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rme
r te
na
nt a
rre
ars
as p
erc
en
tage
of
ren
t de
bit
0.9
%3
.6%
3.6
%L
Q1
.3%
0.7
%
Curr
ent
an
d f
orm
er
ten
an
t a
rrea
rs w
ritt
en
off a
s
pe
rce
nta
ge
of
rent
de
bit (
an
nu
alis
ed
)0
.5%
7.6
%4.0
%L
Q0
.3%
0.1
%
Su
pp
ort
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rvic
es
, G
ov
ern
an
ce a
nd
Co
rpo
rate
He
alt
h
Do
es
th
e o
rga
nis
ati
on
re
tain
th
e r
igh
t p
eo
ple
wit
h t
he
rig
ht
sk
ills
? D
oes
th
e o
rga
nis
ati
on
en
su
re t
he w
ell
be
ing
of
its
wo
rkfo
rce
?
Ove
rall
Sta
ff tu
rno
ve
r (a
nn
ua
lise
d)
10
.0%
58
.5%
39.0
%L
Q1
5.8
%7.0
%
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st
pe
r e
mp
loye
e d
ue
to
sic
kne
ss (
ann
ua
lise
d)
7.5
03.5
05
.53
UQ
8.9
75
.93
Qu
art
ile d
efin
itio
n:
On
e o
f th
e th
ree p
oin
ts th
at
div
ide a
ran
ge
of d
ata
or
pop
ula
tio
n into
fo
ur
equ
al p
art
s.
Th
e fir
st
qua
rtile
(a
lso
ca
lled
th
e lo
we
r q
ua
rtile
) is
th
e n
um
be
r b
elo
w w
hic
h lie
s th
e 2
5 p
erc
en
t o
f th
e b
ott
om
da
ta. T
he
se
co
nd
qu
art
ile (
the
me
dia
n)
div
ide
s th
e r
an
ge
in t
he
m
idd
le a
nd
ha
s 5
0 p
erc
en
t o
f th
e d
ata
be
low
it.
Th
e t
hird
qu
art
ile (
als
o c
alle
d th
e u
pp
er
qu
art
ile)
ha
s 7
5 p
erc
en
t of
the
da
ta b
elo
w it
an
d th
e t
op
25
pe
rce
nt
of
the
da
ta a
bo
ve
it.
Be
nch
ma
rk:
Sta
nd
ard
, or
a s
et
of
sta
nd
ard
s,
use
d a
s a
po
int
of re
fere
nce
fo
r e
va
lua
tin
g p
erf
orm
an
ce
or
leve
l o
f qu
alit
y.
Ben
ch
mark
s m
ay b
e d
raw
n f
rom
an
org
anis
atio
ns o
wn e
xp
eri
en
ce
, fr
om
th
e e
xpe
rie
nce o
f o
the
r org
an
isatio
ns in
the
in
du
str
y,
or
from
le
gal re
quir
em
en
ts s
uch
as r
egu
latio
ns.
KP
IT
arg
et
Q2 2
01
7Y
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r to
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teM
on
thly
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orm
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rge
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dC
urr
en
t P
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orm
an
ce
B
en
ch
ma
rkM
ed
ian
To
p D
ec
ile
11. A
ppen
dix
A
Page 47 of 52
Board 01 November 2017
Title: Health and Safety Policy and Update Q1 and Q2 2017/18 Report By: Michelle Bell, Director of Property & Development FOR INFORMATION
Business Implications
Risk • BCT’s Health and Safety (H&S) Policy and management arrangements proactively manage compliance with legislation to reduce the risk of any potential breaches in H&S.
Financial and Value for Money
• BCT will, with its contracting partners, manage H&S risks to effectively reduce the risk of potential financial loss via litigation, accidents and incidents, staff absence or construction related delays.
People/Consultation
• BCT ensures its H&S management and monitoring measures are regularly reviewed in order to protect the health, safety and welfare of its staff, partners, contractors, tenants and members of the public as far as reasonably practicable.
Equality and Diversity
• This report ensures a non-discriminatory approach is adopted in our H&S Policy and its management and monitoring processes.
Environment Implications
• BCT Board and employees will receive training as and when necessary to ensure all safe working practices are adhered to, and H&S is monitored in the wider environment to guarantee the safety of our tenants and members of the public.
Contractor Implications • A number of our legal and statutory H&S responsibilities are delivered through our partnership agreement with ISOS Complete Support (ICS). Close partnership working continues to ensure all appropriate measures are managed and monitored.
1.
Recommendations
1.1 The Board are recommended to; i. Note the contents of this report.
2. Synopsis
2.1 BCT have a moral and legal responsibility to ensure the health, safety and welfare of
its staff, partners, contractors, tenants and members of the public as far as reasonably practicable. This report provides an update of H&S activity between 01 April 2017 and 30 September 2017, to satisfy Board that BCT are complying with all relevant legislation.
3. Background Information
3.1 Employers must comply with the requirements of the H&S at Work Act 1974. This is a key piece of legislation covering H&S law, but we are also bound by other regulations such as the Management of H&S at Work Regulations (1999), The Workplace (Health, Safety and Welfare) Regulations (1992) and the Regulatory Reform (Fire
12.
Page 48 of 52
Safety) Order 2005. Our main responsibilities are identified in BCT’s H&S Policy, and BCT continue to comply.
3.2 BCT have three members of staff trained to emergency at work first aid standards and
BCT have two trained designated Fire Wardens.
3.3 To ensure BCT are compliant with all H&S legislation as a landlord, we monitor monthly, BCTs statutory H&S obligations delivered through our contractual agreement with Your Homes Newcastle (YHN) and our partnership agreement with ISOS Complete Support (ICS) for: 1. The provision of support services delivered by YHN which includes concierge and
cleaning services; 2. The Member’s agreement in relation to a cost sharing arrangement with ICS with
agreement for the provision of:- a. Property Services which includes responsive repairs, voids maintenance and
delivery of compliance related maintenance services; b. Grounds maintenance and environmental response services including
playground inspections.
4. Investment Programme
4.1 The Construction Design and Management Regulations 2015 (CDM) place duties upon clients and contractors for construction related work involving work over 30 working days or 500 man hours. BCT continue to ensure all their duties under the CDM Regulations are being met and discharged where appropriate on capital contracts.
4.2 Any reportable accidents or incidents on capital contracts categorised as RIDDOR (Reporting of Injuries, Disease and Dangerous Occurrences Regulations 2013), which require reporting to the H&S Executive should also be reported to BCT Board. Between 01 April 2017 and 30 September 2017 there have been no accidents or incidents categorised as RIDDOR on BCT capital projects.
5. Leaseholders
5.1
BCT currently own the freehold to 29 leasehold properties across the Byker Estate. BCT do not have a legislative responsibility to carry out safety inspections on gas appliances within leasehold properties, however it is good practice to ensure our leaseholders service their gas appliances on an annual basis.
5.2 In total eight of these leaseholders have gas appliances. One of these purchased after 2009 so under the terms of their lease, have provided BCT with a valid CP12 certificate. In addition, one leaseholder is sub-letting so has provided a valid CP12 to BCT.
6. ICS Services (as detailed in 3.4)
6.1 Between 01 April 2017 and 30 September 2017 in relation to services provided by ICS they have; 1. Continually reviewed legislation that impacts on H&S compliance for these service
areas; 2. Not amended any method statements / risk assessments in these service areas; 3. Not updated any Corporate H&S Policy Statements; 4. Completed routine play area inspections (weekly) and operational visits (monthly) of all
Page 49 of 52
BCT play areas; 5. Confirmed there has been no accidents in Byker categorised as RIDDOR that
require reporting to the H&S Executive.
7. YHN Contracted Services (as detailed in 3.4)
7.1 Between 01 April 2017 and 30 September 2017 in relation to services provided by YHN, they have; 1. Continually reviewed legislation that impact on H&S compliance for these service
areas; 2. Have reviewed and updated the method statements / risk assessments for these
service areas in May 2017 and provided copies to BCT; 3. Not updated any Corporate H&S Policy Statements; 4. Confirmed there has been one accident in Byker categorised as RIDDOR that
required reporting to the H&S Executive. This involved a member of staff sustaining a needle stick injury in the Byker Wall bin store on 23 July 2017 and is still absent from work.
8. 8.1
Compliance Contracts The table below details the position of all compliance related contracts as at 30 September 2017.
H&S Legislative
Requirement
No of location
inspections across the
estate
Frequency Status Comments
Fire risk assessments
(FRA) 19 3 years All valid.
Lift examination and testing
18 Monthly All lift inspections valid. (1 no inspection delayed due to pigeon excrement preventing access – this is now complete)
Water hygiene
7 Monthly All water hygiene inspections valid.
Communal Area
Asbestos Monitoring
27 Annual All valid. 2 removed since last update, as it has been confirmed no asbestos present.
Portable Appliance
Testing (PAT) 5 Annual All PAT testing of electrical appliances valid.
Emergency Lighting
43 6 Monthly
An order has been placed with ICS to install emergency lighting into Graham House. Of the remaining 42 inspections, 40 are valid and 2 outstanding and are scheduled for inspection.
Fire Fighting Equipment
20 Annual
All inspections of firefighting equipment valid. Inspections include lift motor rooms and BCT office.
12.
Page 50 of 52
Gas Servicing
135 homes and
1 Communal Boiler at Chirton House
Annual
All valid. Gas pipework and meters are being removed in all voids where applicable.
8.2 8.3
Newcastle City Council (NCC) operate five district heating substations and district heating office that BCT own, and the H&S compliance of these buildings is their responsibility. It is good practice, but not legislation for BCT to have copies of all compliance and inspection records. BCT is discussing this information request at its district heating partnership meeting on 15 November 2017, as to date we are experiencing difficulties in obtaining compliance records relating to these buildings.
8.4 8.5
All electrical installations deteriorate with age and use. Domestic properties should be checked at least every ten years or upon change of occupancy, five years if they are a modern homes internal omit or a communal area to ensure they are in a satisfactory condition in accordance with current wiring regulation. Following BCTs audit of electrical inspection data, 252 properties were identified for electrical testing in 2017/18. ICS have commenced the electrical testing programme and completed 23 tests.
9. Gas
9.1 The information YHN provided BCT with on 03 October 2016 stated 79 properties were identified as having gas meters where tenants had no gas appliances. A further 13 gas meters have since been identified by BCT as part of routine works. We are working closely with utility providers and to date 17 gas meters have been removed, and 75 remain.
10. 10.1
Fire Risk Assessments In the last H&S update report, Board were notified that all fire doors in communal blocks had been checked, and this had identified nine communal staircase doors that had no intumescent fire and smoke seals. These fire doors have now been replaced and are fire safety compliant.
11. Caution Alert Policy & Register
11.1 Where customers are known to have been violent or abusive, or can be reasonably anticipated to merit caution, BCT implements its Caution Alert Policy and records the risk associated with the customer on a Caution Alert Register. This provides guidance for staff and partners working on behalf of BCT to help them keep safe. The information is stored on the OTIS Housing Management System, and will provide an indicator against a tenancy together with guidance on visiting the property or not as the case may be. BCT have 25 customers with a Caution Alert Registered. Three have been added in Q1 and Q2 2017/18.
11.2 Additionally to protect the safety of staff, we have Lone Working procedures in place. These include:
• Ensuring staff detail on the office board where they are visiting and their expected time of return. Colleagues monitoring staff against planned return times, and during this
Page 51 of 52
period call challenged three times staff who did not return to the office by their expected time. They were all safe but running late so the return time was extended;
• BCT employees who regularly visit customers have a mobile phone. The phone has a facility called ‘Orbis Code 5’. This code 5 system uses the mobile phone to allow BCT staff to record their whereabouts and how long they are expected to be in attendance at any property. At the set time for leaving the property the device must be reset or the system asks the staff member to confirm they are ok or extend their appointment. If neither are selected after two minutes it automatically generates a red alert. Orbis operators will then locate the user and using GPS can locate the staff member to a couple of metres. Orbis contact BCT and summon emergency assistance if required.
• Mandatory conflict resolution training has been held, with 17 staff attending. Two members of staff were unable to attend so there will be a follow up session in the New Year to accommodate them and new employees to the current vacancies.
12. 12.1 12.2 12.3
Health and Safety Policy Review Under the Management of Health and Safety at Work Regulations 1999, BCT as an employer, has a duty to appoint a competent person to ensure the organisation complies with its statutory duties relating to H&S. To date, BCT has sought professional ‘Competent Person’ H&S advice externally, and following the service transition, has put arrangements in place to ensure our ‘Competent Person’ is a member of the BCT team. This enables BCT to be self-sufficient in relation to H&S matters and have instant access to H&S advice should an incident arise. A ‘Competent Person’ is someone who has sufficient training, experience or knowledge. The NEBOSH General Certificate is a recognised qualification that gives the necessary knowledge for a person to be considered ‘Competent’. BCTs Technical Services Manager is currently undertaking this qualification and following successful completion in December 2017, will allow him to act as BCTs ‘Competent person’. As BCT’s H&S Policy is due its annual review in November 2017, the Technical Services Manager will complete a review of the policy following his accreditation and an updated policy will be reviewed by Board as part of the next H&S Update in April 2018.
13. Contact Officer If you have any questions about this report that you would like clarifying before the meeting, you can contact Michelle Bell by telephone on 0800 533 5442 or email [email protected]
12
.
Page 52 of 52
