Page: Presented - Byker Community Trust · 3/27/2019 · 10.1 The Director of Operations (DoO)...
Transcript of Page: Presented - Byker Community Trust · 3/27/2019 · 10.1 The Director of Operations (DoO)...
Board 27 March 2019 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 5. Health and Safety Update Page: Presented
by: 6. To approve the Minutes of the meeting held 13 February 2019
and Matters Arising
1 - 4 Chair
ITEMS FOR INFORMATION
7. Chief Executive Monthly Progress Report
5 - 12 J Haley
8. NHF Together with Tenants
13 - 31 P Pollard
ITEMS FOR DECISION
9. Value for Money Strategy Draft
32 - 47 J Clifford
10. Annual Review of Committees
48 - 54 G Bell C Stobbs A Patten
11. AOB
CONFIDENTIAL ITEMS FOR DECISION
12. To approve the confidential Minutes of the meeting held 13 February 2019 and Matters Arising
Chair
13. District Heating System: Transfer and Financing
J Haley
14. AOB
15. Date and time of the next Board 22 May 2019, 6pm – 8pm at the BCT office Board Training – Risk and Annual Discussion of Risk Environment J Clifford
Minutes of Board 13 February 2019 6:00pm Board Members Present: Jim Coulter (Chair), Gordon Bell, Christine Stobbs, Anthony Itiat, Geraldine Kay, Nigel Emmerson, Victoria Beattie, Annette Patten, Nick Kemp and Amanda Senior (6:05pm). BCT Officers Present: Jill Haley (CE), Philip Pollard (DoO), James Clifford (DoF), Michelle Bell (DoP) and Jaime Flinn (taking minutes) Observers: Stephen Sheraton (tenant), Francis Freeman and Alison Jennings (RSH).
1. WELCOME
1.1
The Chair welcomed everyone to the meeting including Francis Freeman, Regulation Manager and Alison Jennings, Senior Financial Analysis Manager from the Regulator of Social Housing (RSH) who were observing the BCT Board meeting.
2. APOLOGIES FOR ABSENCE
2.1 Apologies were received from Andrew Taylor.
3. DECLARATIONS OF INTEREST
3.1
There were no new declarations of interest.
4. URGENT ITEMS WHICH BOARD MEMBERS WISH TO RAISE
4.1
There were no urgent items arising.
5. HEALTH AND SAFETY (H&S) VERBAL UPDATE
5.1
The Director of Property and Development (DoP) updated Board on H&S compliance up to January 2019. All compliance areas are complete with no accidents, incidents or near misses during quarter three.
6. APPROVAL OF BOARD MINUTES AND MATTERS ARISING
6.1 The Minutes of the last Board meeting held on 19 December 2018 were agreed as a correct record and signed by the Chair.
6.2 Lift inspection certificates were received from KONE under item 5.1 of the minutes and item 5.2 the replacement of fire doors by Esh Property Services are now programmed for replacement, further information is detailed under item 11 of the Board agenda.
6.3 The DoP advised that BCT had concluded the exercise to identify vulnerable or disabled tenants unable to self-evacuate living in communal buildings over one storey. Eight residents have been identified and appointments have been arranged to discuss any further action that may be required.
6.4 Item 7.3 the option to increase labour resources for responsive repairs and voids is included under item 13 of the Board agenda.
6.
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6.4 All other outstanding actions from the minutes of 19 December 2018 were reported under item 12 of the Board agenda.
7. APPOINTMENT OF CHAIR ELECT
7.1
The Chair of Governance and Remuneration Committee (G&RC) advised that following a thorough selection process and two stage interview, a unanimous decision was made to recommend to the Board that Geraldine Kay be appointed to succeed Jim Coulter as the BCT Chair.
7.2 The appointment of Geraldine Kay as Chair elect was formally moved and seconded by Victoria Beattie.
7.3 The Board congratulated Geraldine Kay and she expressed her thanks and enthusiasm to take on the role.
8. QUARTERLY STRATEGIC RISK REGISTER
8.1
The Director of Finance and Resources (DoF) updated Board on the changes made to the Strategic Risk Register (SRR) during quarter three.
8.2 Board noted SR3, VAT savings from Cost Sharing Exemption (CSE) lost, has been amended since the Audit and Risk Committee (A&RC) meeting on 22 January 2019 from 12 (critical) to 9 (high) after the Chief Executive (CE) received a letter from HMRC advising that Karbon Solutions Limited (KSL) satisfy all of the required CSE criteria from the date that BCT joined the cost sharing group in June 2016.
8.3 Muckle LLP have concluded their review of BCT GDPR documents and work completed to date stating that BCT’s internal GDPR preparations have achieved a good level of compliance.
8.4 Board noted the changes made to the SRR.
9. BUYBACK POLICY
9.1 The DoF presented the report, which provided an update on the changes made to the Buy Back Policy and requested approval to bid for grant funding from Homes England.
9.2 Key points from the discussion were:
• A Board Member queried what opportunities there are to purchase properties in the expanded geographical area. The DoF advised BCT currently do a monthly review of popular real estate websites such as Right Move and there are regularly properties available that BCT would be interested in purchasing;
• It was advised that recent potential buy backs considered by BCT had not been completed because the purchase prices were too high. If grant funding had been available, these properties could have been purchased with a positive impact on the BCT Business Plan;
• Board Members recommended the following amendments be made to the policy: - The approval form at Appendix A should reflect the policy and include a step to
reject the property types where BCT does not have full ownership of the freehold; - It was requested the initial reinstatement costs in the approval form should be
included and itemised.
9.3 Board approved the request to bid for grant funding from Homes England and agreed the Buy Back Policy subject to the requested amendments.
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10. THRIVING BYKER STRATEGY
10.1 The Director of Operations (DoO) delivered a presentation summarising the BCT Thriving Byker Strategy.
10.2 Key points from the discussion were:
• The Chair suggested the Action Plan should clearly state what the roles of the 21 partner agencies are, and detail where BCT leads as opposed to those where BCT provide support or co-ordination. This is to ensure there is no confusion when the document is distributed;
• It was advised a number of base line measures have been put in place to measure the impact that organisations are having on the Estate, it was suggested that consideration is given to how best to measure social value and that this needs to be documented;
• The Chair suggested that partners of the Thriving Byker Strategy should ‘sign up’ to an audit approach to measure the outcomes and social impact on the Estate;
• It was requested the Thriving Byker Strategy partners should have a collaborative approach to BCT’s Safeguarding and Domestic violence policies.
10.3 Board approved the Thriving Byker Strategy as a working document subject to the
recommended changes.
11. QUARTERLY INVESTMENT PROGRAMME UPDATE
11.1 The DoP presented the report, which provided an update to Board on the delivery of BCT’s Investment Programme.
11.2 Key points from the discussion were:
• It was advised since writing the report under item 4.2 there is now only one tenant who has refused access to complete an electrical test;
• The Fire Risk Assessment (FRA) procedure has been reviewed during quarter three and the table in item 13.3 will be presented to Board as part of the Investment Programme Update moving forward;
• It was suggested the term ‘destructive’ should be amended on Appendix E to avoid confusion, and “invasive” substituted;
• The DoP advised BCT will be moving from 10 year electrical testing towards a 5 years testing regime from April 2019. A Board Member requested an update on risk profiling and a breakdown of future electrical testing in the next report. Amanda Senior agreed to forward the legal advice she had acquired regarding gaining access to properties for electrical testing to the DoP;
• A Board Member requested Appendix A the confidential cost update include the original budget for each scheme, the DoF advised that a complementary request from A&RC was to review how major scheme information is presented to Board and this will be put in place for the next update.
11.3 Board noted and agreed the contents of the report including commissioning Type 3 FRAs
on all BCT buildings and the appointment of RNJ Partnership LLP (item 16) and Savills (item17).
12. CE MONTHLY PROGRESS REPORT
12.1
The CE presented the report, which provided an update on progress since the last meeting, as well as any relevant, regional or national developments.
6.
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12.2 Key points from the discussion were:
• The CE provided an update on the value for money metrics which show a favourable position for BCT further detailed in item 17 of the Board agenda;
• It was advised the Corporate Plan Action Plan for 2019 will be reviewed by the Executive Team and refined into a simpler format;
• It was noted the Board was emailed the response received from the RSH regarding FRAs on 08 February 2019, which states “taking into account the assurance Byker provided to the regulator in terms of fire safety we have concluded that there is no breach of the consumer standards and will not be taking any regulatory action”;
• Board Members discussed the positive outcome of the response from HMRC regarding CSE for Karbon Solutions Ltd. It was advised that the CSE for the Housing Association sector was still at risk and will be reviewed by HMRC at a future date. It was confirmed that any changes to the CSE would not be applied retrospectively.
13. QUARTERLY PERFORMANCE UPDATE
13.1 13.2
The DoO delivered a presentation to Board summarising the operational and financial performance of BCT for quarter three. Board Members were directed to the scorecard provided. Key points from the discussion were:
• The Chair queried if there was a relationship between tenants that are difficult to engage with and the cost of repairing void properties. The DoO stated that there were often links between a lack of engagement and property condition. It was further advised that the Executive Team had visited a void property on 13 February 2019 where the tenant had refused access and the property was in a state of disrepair. The DoO discussed the additional support services BCT can access to ensure individuals are supported to maintain their tenancy. The DoP advised that Karbon Solutions tradespersons working for BCT are receiving training to identify potential safeguarding issues when accessing properties;
• A Board Member suggested under SD2 of Appendix A there were some duplications for property termination reasons. The DoO advised that a fix to categorisation errors would be in place for the next quarterly report;
• The DoP advised the target of £79 for responsive repairs had been influenced from the 2017/18 performance data. The DoP will use data from the previous two years of responsive repairs and voids to set 2019/20 targets;
• The DoO agreed to update Board on when the review of Tyne and Wear Homes is complete but that he had not yet seen a copy of the report.
The meeting adjourned at 7:10 pm to allow for the confidential session to take place.
…………………………. Chair of Byker Community Trust Board 27 March 2019
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Board 27 March 2019
Title: Chief Executives Monthly Progress Report Report By: Jill Haley, Chief Executive (CE) FOR INFORMATION 1.
Recommendations
1.1
The Board is recommended to note and discuss the contents of this report.
2. Synopsis
2.1 This report aims to bring Board Members an update of information and progress since the last meeting, as well as any relevant, regional or national developments.
3. Actions from last Board meeting
3.1
All outstanding actions from the minutes of the meeting of 13 February 2019 were reported separately in an email to Board on 18 March 2019. Any further progress in relation to ongoing actions will be reported at the meeting.
4. Delegated Decisions
4.1 There were no delegated decisions taken since the last Board meeting on 13 February 2019.
5. Regulator of Social Housing (RSH) – Regulatory Judgement (RJ)
5.1 Following the RSH Regulation Manager and Senior Financial Analysis Manager
meetings and Board attendance on 13 February 2019, Board Members were copied into
the CEs various correspondence to the RSH.
5.2 BCTs draft narrative judgement was received and agreed by the Chair and CE on 14 March 2019, with the information embargoed until 27 March 2019 when the RJ will be publically announced.
5.3 A copy of the RJ will be tabled at the meeting.
5.4 No-deal Brexit – letter from Fiona MacGregor, RSH Chief Executive
5.4.1 On 14 February 2019 the Chair circulated a letter to Board from Fiona MacGregor regarding Brexit related risks.
5.4.2 Brexit impact is included in the Strategic Risk Register (SR2) with specific reference to the inflation risk that may arise from it. The potential financial impact of Brexit was set in accordance with Bank of England advice and modelled as part of the stress testing scenarios against the BCT Business Plan in December 2018. The results demonstrated
7.
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that BCT would not breach its loan covenants.
5.4.3 Further Brexit risks which may impact on BCT are included in the Operational Risk Registers and they are:
• Potential supply problems for components and materials - lift and district heating boiler plant components have been specifically identified;
• Affordability and sustainability of tenancies, due to rising inflation costs of food and other personal or household goods.
5.4.4 All risks and mitigation strategies will continue to be closely monitored in accordance
with the BCT’s risk management control framework.
6. Cost Sharing Exemption (CSE)
6.1 Since the 13 February 2019 Board update, no further communications have been received.
6.2 The notice on the HMRC website remains as: Exempt supplies by Social Housing organisations - “The exemption for supplies made by housing associations is currently under review. When that review has been completed, HMRC will announce any changes to take effect from a prospective date. In the meantime, Social Housing organisations may continue to use the exemption until the review is completed”.
7. Draft Corporate Plan Action Plan (CPAP) for 2019/20
7.1 7.2
As agreed at the February Board meeting, the first draft of the CPAP is attached at
Appendix A
The draft is set around the three themes that were agreed at the Board Away Day (BAD)
in November 2018:
1. Making Byker an Estate of choice;
2. Contributing to the Byker Estate’s sustainability and viability; and
3. Ensuring BCT’s sustainability and viability.
7.3 The CPAP has been simplified and includes only the operational actions that arose out
of the BAD in November 2018. It will be further evolved during the Board Workshop on
24 April 2019, when Board will agree how to progress the strategic themes arising from
the BAD and also decide upon the next steps leading to the creation of a new Corporate
Plan for 2020.
8. Acquisition of Land of the Former Hare & Hounds
8.1 When the architect Ralph Erskine designed the Byker Estate, he designed it around various retained community facilities. The Hare and Hounds public house, situated on Raby Street, was one of those facilities. The building stood vacant for several years and was acquired by Newcastle City Council (NCC) with assistance from Bridging Newcastle Gateshead. The vacant building became a target for repeated vandalism and arson attacks.
8.2 In the months leading up to the Byker stock transfer, serious concerns were raised by Tyne & Wear, Fire & Rescue Service about the safety of the building which was burnt out and in a dangerous condition. The building was also acting as a magnet for crime and anti-social behaviour. The Chief Fire Officer recommended to NCC that the building
should be demolished and in July 2012 this was carried out. The 320m² site was then
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grassed and a perimeter trip rail installed. 8.3
The land of the former Hare and Hounds Pub was originally included on the list of future buildings which could be transferred to BCT as part of the stock transfer but due to the fact that the demolition works were ongoing at the time of the stock transfer, the land was missed from the final transfer agreement.
8.4 BCT submitted a business case for the transfer of the land from NCC to BCT in July 2015 and on 31 January 2019 the transfer of land completed.
9. Contact Officer
9.1 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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Page 11 of 54
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Page 12 of 54
Board 27 March 2019
Title: National Housing Federation, “Together with Tenants” Draft Plan. Report By: Philip Pollard, Director of Operations FOR INFORMATION Business Implications
Risk • The “Together with Tenants” Charter outlines the need for closer links between tenants and residents with regulation and holding boards to account. BCT Board have responsibility for seeking appropriate assurance that all of the Regulatory Standards are being met. Failure to meet the requirements of the Regulatory Standards could have a detrimental impact upon the Regulator of Social Housing governance assessment of BCT.
Financial and Value for Money • BCT are required to complete a Value for Money (VfM) self-assessment under the requirements of the Economic Standards. BCT also aim to achieve VfM through the awarding of contracts relating to requirements of the Home, Neighbourhood and Community Consumer Standards. The “Together with Tenants” Charter outlines that every tenant and resident has the right to know how the organisation is run and how decisions are made.
People/Consultation • The “Together with Tenants” Charter and the Consumer Standards require that BCT ensure that tenants have a voice in the shaping of service delivery and are involved in the scrutiny and monitoring of services.
Equality and Diversity • The “Together with Tenants” Charter and all Consumer Standards require a non-discriminatory approach to be considered and implemented within service delivery.
Environment Implications • The “Together with Tenants” Charter and the Neighbourhood and Community Standard requires that BCT provides a decent, safe home and quality service.
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 VfM in the delivery of quality homes and services with our contracting partners. BCT also places a focus upon the need for community investment to be included within contractual arrangements where appropriate.
1. Recommendations
1.1 The Board is recommended to;
i. Note the content of the National Housing Federation (NHF) “Together with Tenants” draft plan (Appendix A);
ii. Provide feedback to be included in BCT’s consultation response to the NHF about the “Together with Tenants” draft plan; and
iii. Agree to adopt the “Together with Tenants” Charter and receive future reports from the Customer Scrutiny Committee that detail performance against the charter.
2. Synopsis
2.1 The NHF is the membership body for housing associations in England and its members provide two and a half million homes for more than six million people.
8.
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2.2 2.3
This report details the NHF draft plan, “Together with Tenants” which sets out the changes that housing associations should consider making with the aim of creating a stronger and more balanced relationship with tenants and residents. The NHF are seeking views on the “Together with Tenants” draft plan from tenants, residents, housing associations and stakeholders by 19 April 2019.
3. Background Information
3.1 3.2 3.3
The NHF “Together with Tenants” draft plan sets out that the views and voices of tenants and residents are essential to ensuring that housing associations are delivering homes and services that meet the needs of communities. Tenants and residents can not only help to identify where improvements are required, but also play a key role in making changes happen that will benefit whole communities as well as individuals. The actions set out in the “Together with Tenants” draft plan introduce expectations at Board level, outline clear commitments for tenants and residents, provide a louder voice and a stronger role in scrutiny as well as providing a clear link to regulation. The actions set out in the draft plan are: 1. A new requirement in the National Housing Federation Code of Governance for
boards to be accountable to their tenants and residents. 2. A new “Together with Tenants” Charter setting out what tenants and residents can
expect from their housing association landlord. 3. Tenant and resident oversight and scrutiny of the charter, with a report on how their
landlord is doing against the charter commitments. 4. A closer link with regulation.
4. 4.1 4.2
New requirement in the NHF Code of Governance The regulation of housing associations requires that a governance code is adopted and the NHF Code of Governance is the most widely used. There will be a new requirement introduced into the NHF Code of Governance later in the year that makes clear that boards are responsible for ensuring that they are accountable to their tenants and residents and they will need to demonstrate compliance with this requirement. Boards would be able to evidence compliance by signing up to and delivering on the commitments of the “Together with Tenants” Charter.
5. 5.1 5.2
Together with Tenants Charter The “Together with Tenants” Charter sets out that a stronger relationship between housing associations and tenants and residents needs to show clear commitments and expectations. Housing associations will be asked to adopt the following eight commitments which draw on the existing consumer standards set out by the Regulator of Social Housing: 1. Every tenant and resident has the right to be treated with respect.
2. Every tenant and resident has the right to a decent, safe home and quality service.
3. Every tenant and resident has the right to be listened to and have their view heard on
decisions that affect their community, home and the services they receive.
Page 14 of 54
4. Every tenant and resident has the right to know how the organisation is run, how
decisions are made, and how they can get involved.
5. Collectively, tenants and residents have the right to influence decisions that affect their
community, home and the services they receive.
6. Every tenant and resident will have simple, clear and accessible routes for raising
issues, making complaints and seeking redress.
7. Every tenant and resident will receive support and advice when things go wrong or
their expectations aren’t met.
8. Every tenant and resident will have access to the information they need to make
informed decisions and hold their landlord to account.
6. Tenant and resident oversight and scrutiny
6.1 The “Together with Tenants” Charter will provide a framework for housing association
boards to assess whether they are meeting the expectations of their tenants and
residents.
6.2 Tenants and residents will have a strong role to play in scrutinising the performance of
their landlord against the commitment to the charter and will report findings to the housing
association Board who in turn would be expected to respond and put in place plans to
address any issues.
7. Closer link to regulation
7.1 There is a requirement for housing associations to be compliant with the consumer
standards as set out by the Regulator of Social Housing.
7.2 The “Together with Tenants” charter sets out that if tenants and residents believe that a
housing association is failing to meet the commitments in charter, and does not put plans
in place to improve, that this may provide useful evidence for the regulator to consider
when assessing compliance against the consumer standards.
8. BCT’s consultation response and next steps
8.1 8.2 8.3 8.4 8.5
A sub-group of BCT’s Customer Scrutiny Committee (CSC) met on 11 March to formulate responses to the questions for tenants and residents that are set out on page 8 of Appendix A. The formulated response of the CSC is attached at Appendix B and will be included as part of BCT’s response to NHF. BCT’s Director of Operations and Community Engagement Officer have completed a self- assessment of the requirements of the “Together with Tenants” Charter, outlined on pages 11 and 12 of Appendix A, and did not identify any issues that would prevent BCT from adopting the charter. BCT have given an indication to the NHF that they wish to become an early adopter of the “Together with Tenants” Charter as well as agreeing to be part of a sub-regional working group that will be led by the Chief Executive of Gentoo. The sub-regional working group will look to identify any opportunities for joint working and
8.
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discuss with tenants their preparedness to do peer to peer work on testing delivery against the commitments made.
8.6 BCT Board members are asked to provide any relevant feedback to be included in BCT’s consultation response before 12 April 2019.
9. 9.1
Contact Officer 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]
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Page 1
Together with Tenants Our draft plan Your feedback needed by 19 April
20 February 2019
About this plan
The National Housing Federation is the membership body for housing associations in England. Our housing association members provide two and a half million homes for more than six million people.
This draft plan explains the changes housing associations are considering making with the aim of creating a stronger, more balanced relationship with tenants and residents. We’d like to hear views from tenants, residents, housing associations and stakeholders on these changes and how they should be put into action.
What’s in this plan?
• Why is change needed? • Building a stronger relationship – our draft plan • How the views of tenants and residents will shape this work • Sharing your views • Next steps • Questions • Appendix A – Together with Tenants Charter
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Page 2
Why is change needed?
Recently, housing associations have faced a number of questions about their relationship with tenants and residents. The conversation following the tragic fire at Grenfell Tower exposed some real differences in how people feel about living in social housing and their relationship with their social housing landlord. These questions include:
• Are tenants and residents listened to when things go wrong with their home or the service they receive?
• Do they have the chance to influence decisions that are made about their home or the services they receive?
• What can they do if they don’t think their landlord is taking their concerns seriously?
Housing associations work hard to create a positive relationship with their tenants and residents, alongside aiming to provide safe, decent and affordable homes. The sector has a longstanding commitment to engaging with tenants and residents, and there are many great examples of how housing associations have shaped their organisations around the needs and views of the people they house.
However, housing associations know they do not always get it right for everyone and are not always as accountable as they should be to their tenants and residents. They also recognise the lack of consistency between landlords. Some tenants and residents have said their landlord feels distant, and this has led to a lack of trust in housing associations in some places.
Housing associations cannot do their job properly without the input, help and support of their tenants and residents.
The Federation has been working with tenants, residents, tenant representative groups, our members and others to understand what practical change is needed to address these questions.
We have been working closely with the Government to understand what other changes will help protect and strengthen the interests and rights of tenants and residents in social housing. We support stronger consumer regulation and improving routes for redress, as outlined in the Government’s Social Housing Green Paper.
We also think it is important that tenants and residents have a strong collective voice, which is why we support the A Voice for Tenants steering group and its aim to establish a national body for tenants.
Housing associations want to take action as soon as possible to build a stronger relationship with tenants and residents. This is why we are seeking views on this draft plan now, while we continue to work alongside the Government.
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Page 3
Building a stronger relationship – our draft plan
To build a stronger relationship, it is vitally important that housing associations operate in a way that:
• values the voice and experience of tenants and residents • is open and transparent in terms of how they act and share information • welcomes challenge and is honest about where they need to improve.
To do this, housing association boards need to be properly connected to the people they house – including those who may be harder to reach – and have a clear understanding of how the homes and services they provide are experienced by their tenants and residents. There also needs to be a culture of respect across the whole organisation.
The views and voices of tenants and residents are vital to ensuring housing associations are delivering homes and services that meet the needs of communities. Tenants and residents can not only help identify where improvement is required, but play a key role in making changes happen that will benefit whole communities as well as individuals.
The actions set out in this draft plan:
• introduce new expectations at board level • set out clear commitments for tenants and residents • give tenants and residents a louder voice, a stronger role in scrutiny, and more influence locally
and nationally • provide a clear link to regulation.
The four proposed actions are:
1. A new requirement in the National Housing Federation Code of Governance for boards to be accountable to their tenants and residents.
2. A new Together with Tenants Charter setting out what tenants and residents can expect from their housing association landlord.
3. Tenant and resident oversight and scrutiny of the charter, with a report on how their landlord is doing against the charter commitments.
4. A closer link with regulation.
Further details on each action are listed in the following sections of this plan.
Alongside these actions, we are working with the Centre for Public Scrutiny to convene an independent tenant advisory panel, whose remit will be to guide the development of this plan and how it is put into action.
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Page 4
1. New requirement in the Code of Governance
A strong commitment from housing association leadership to valuing the voice and experience of tenants and residents is essential to creating a stronger relationship.
We intend to formalise this commitment and will be consulting later this year on the introduction of a new requirement to the Code of Governance produced by the National Housing Federation, demonstrating that housing associations are serious about change.
The regulation of housing associations requires them to adopt a governance code, and the Federation’s code is the mostly widely used. Not only will a new requirement in this code make clear that boards are responsible for ensuring they are accountable to their tenants and residents, but they will also need to evidence how they are compliant with this requirement. One way of evidencing this compliance would be for the housing association to sign up to, and deliver on the commitments of, the Together with Tenants Charter.
2. Together with Tenants Charter
A stronger relationship needs clear commitments and expectations, relating to all aspects of tenants’ and residents’ experience – from living in a decent home, to being treated with respect, and knowing what to do when things go wrong.
The table below sets out eight commitments that housing associations would be asked to adopt. While housing associations would be strongly encouraged to sign up to these commitments, it would remain voluntary. However, if a housing association does not adopt the charter, then the Federation’s Code of Governance would make clear that it would need another mechanism for ensuring it is compliant with the requirement to be as accountable as possible to its tenants and residents.
These commitments are deliberately simple and straightforward, making it as easy as possible for people to relate them to their own experience. These are the core commitments that tenants and residents have told us they should have the right to expect, regardless of their landlord or where they live. Individual housing associations may choose to complement these core commitments with additional commitments or specific standards they would agree with their own tenants and residents.
These commitments draw on the existing consumer standards set out by the Regulator of Social Housing, and in some instances go further. Bringing them together in a clear, simple way, making sure they focus on experience rather than process, and raising their profile, is intended to deliver meaningful change for tenants and residents.
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Page 5
Commitments
1 Every tenant and resident has the right to be treated with respect.
2 Every tenant and resident has the right to a decent, safe home and quality service.
3 Every tenant and resident has the right to be listened to and have their view heard on decisions that affect their community, home and the services they receive.
4 Every tenant and resident has the right to know how the organisation is run, how decisions are made, and how they can get involved.
5 Collectively, tenants and residents have the right to influence decisions that affect their community, home and the services they receive.
6 Every tenant and resident will have simple, clear and accessible routes for raising issues, making complaints and seeking redress.
7 Every tenant and resident will receive support and advice when things go wrong or their expectations aren’t met.
8 Every tenant and resident will have access to the information they need to make informed decisions and hold their landlord to account.
A more detailed description of the commitments and how they may be delivered is set out in Appendix A.
3. Tenant and resident oversight and scrutiny
The charter will provide a consistent framework for housing association boards to assess whether they are meeting the expectations of their tenants and residents, but in itself will not necessarily create a stronger, more balanced relationship. An important factor will be tenants and residents having the power, information and agency to hold their landlord to account, and the charter will provide a mechanism to make this happen.
Tenants and residents are better placed than anyone to take a view on the homes and services their landlord is providing and must be trusted to do so. The charter will provide a mechanism for tenants and residents to play this vital role in holding their landlord to account.
To do this, tenants and residents will have a strong role in scrutinising the performance of their landlord against the commitments in the charter. Tenants and residents would report to the housing association board, who in turn would be expected to respond and put plans in place to address any
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Page 6
issues. This should be done in a transparent and public way and could be part of the annual review against the Code of Governance.
How this works will be down to the individual housing association in discussion with tenants and residents, recognising that many already have tenants on boards, scrutiny boards or advisory positions. However, it is important that reporting is inclusive and captures and reflects the views of as many tenants and residents as possible, rather than just those who are already engaged with their landlord.
4. Closer link to regulation
Housing associations are already required to be compliant with the consumer standards set out by the Social Housing Regulator. We support strengthening the regulation of these consumer standards, as outlined in our response to the Social Housing Green Paper. This may mean the regulator reviews compliance with the standards in more places, not just where there is evidence of serious detriment.
If tenants and residents believe that a housing association is failing to meet the commitments in the charter, and does not put plans in place to improve, this might provide useful evidence for the regulator, indicating where further work and intervention may be necessary to protect the interests of tenants and residents and ensure issues are dealt with in a timely and effective manner.
How the views of tenants and residents will shape this work
To help build the new stronger relationship between tenants, residents and landlords, the Federation is working with the Centre for Public Scrutiny to convene a new tenant advisory panel. The panel will sit independently of the Federation to provide advice and challenge and guide this work as it develops. Applications are open to all housing association tenants and residents and we want to ensure a diverse and inclusive representation. The deadline for applications is Friday 15 March and more information can be found on the Centre for Public Scrutiny website.
This panel will play a crucial role in the Together with Tenants work as it is rolled out across England.
We are also advocating a strong national voice for social housing tenants and residents through our support for the A Voice for Tenants steering group and our ongoing close collaboration with tenant representative organisations throughout the development of this plan.
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Page 7
Sharing your views
This plan is only a draft. It has been put together to help prompt as many different views and voices as possible, particularly from tenants and residents.
In order to inform the next stage of the plan and begin to create a new relationship between tenants, residents and housing association, we need your views and help.
Please share your views by 19 April using one of the following methods:
• Tenants and residents can participate in our online questionnaire or get in touch with us directly to discuss their feedback.
• Housing associations can participate in one of our member workshops, share their feedback through our online questionnaire, or get in touch with us directly.
• Stakeholders can use our online questionnaire to share their views, or get in touch with us to discuss their feedback.
Next steps
We would like to hear your views by Friday 19 April 2019. Based on the feedback, this draft plan and charter will be revised. The tenant advisory panel and other tenants and residents will help shape and guide this process.
The Federation will support more than 40 housing associations, together with their tenants and residents, to test how the plan and charter work in practice from April 2019, taking on board feedback from this consultation. This will allow us to make further changes based on their experience before a wider rollout.
We welcome further interest from housing associations who would like to join as early adopters. If you would like to find out more, please visit our website.
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Page 8
Questions
Questions for tenants and residents
You can respond to these questions either via our online questionnaire, or by emailing us your answers.
1. Do you think the four actions outlined in this draft plan (see list below for reference) are the right actions?
• A change to the National Housing Federation Code of Governance – your landlord’s board would agree to be as accountable as possible to all residents and tenants.
• A new Together with Tenants Charter – your landlord would set out, in a clear and publicly available document, what you can expect from them.
• Tenant and resident oversight and scrutiny of the charter – tenants and residents can publicly report on how your landlord is doing.
• A closer link with regulation – tenant and resident oversight of the charter can provide useful evidence to the regulator about whether your landlord is compliant with consumer standards.
1.1 Please let us know if you have any further comments on the actions.
2. Does the Together with Tenants Charter cover the right issues? 3. Is there anything missing from the charter that you feel you have the right to expect from your
housing association? 4. Do you have any suggestions for how the wording of the charter could be improved or made
clearer? 5. Do you agree that tenants and residents should have a role in reporting on housing associations’
performance against the charter?
5.1 Do you have any suggestions for how this could work well in practice?
6. Do you agree that tenant and resident oversight of the charter should have a role in regulation, including providing evidence to the Regulator of Social Housing where relevant?
6.1 Do you think this role should be strengthened?
7. Do you have any further comments or suggestions on linking tenant and resident oversight of performance to regulation?
8. If you are interested in applying to be part of the independent Tenant Advisory Board, please send us your email address.
9. Is there anything we’ve missed? Or do you have any further comments?
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Page 9
Questions for housing associations
You can respond to these questions either via our online questionnaire, or by emailing us your answers.
1. Do you think the four actions outlined in the draft plan (require accountability in the Code of Governance; create a new Together with Tenants Charter; give tenants and residents oversight and scrutiny of the charter; link this more closely with regulation) are the right actions?
1.1 Please let us know if you have any further comments on these actions.
2. Does the Together with Tenants Charter cover the right issues? 3. Is there anything missing from the charter that you feel your residents have the right to expect from
you? 4. Do you have any suggestions for how the wording of the charter could be improved or made
clearer? 5. Do you agree that tenants and residents should have a role in reporting on your housing
associations’ performance against the charter?
5.1 Do you have any suggestions for how this could work well in practice?
6. Do you agree that tenant and resident oversight should link to regulation?
6.1 Do you think this link should be strengthened?
7. Do you have any further comments or suggestions to make on linking tenant and resident oversight of performance to regulation?
8. Please indicate the size of your organisation:
• up to 500 homes • 500 – 1,000 homes • 1,000 – 5,000 homes • 5,000 – 10,000 homes • more than 10,000 homes.
9. Is there anything we’ve missed? Or do you have further comments?
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Page 10
Questions for stakeholders
You can respond to these questions either via our online questionnaire, or by emailing us your answers.
1. Do you think the four actions outlined in this draft plan (require accountability in the Code of Governance; create a new Together with Tenants Charter; give residents oversight and scrutiny of the charter; link this more closely with regulation) are the right actions?
1.1 Please let us know if you have any further comments on the actions.
2. Does the Together with Tenants Charter cover the right issues? 3. Is there anything missing from the charter that you feel tenants and residents have the right to
expect from housing associations? 4. Do you have any suggestions for how the wording of the charter could be improved or made
clearer? 5. Do you agree that tenants and residents should have a role in reporting on performance against
the charter?
5.1 Do you have any suggestions for how this could work well in practice?
6. Do you agree that tenant and resident oversight should link to regulation?
6.1 Do you think this link should be strengthened?
7. Do you have any further comments or suggestions to make on linking tenant and resident of performance to regulation?
8. Is there anything we’ve missed? Or do you have further comments?
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Page 11
Appendix A – Together with Tenants Charter
Commitment Description Ideas for the ‘what’ and ‘how’ Every tenant and resident has the right to be treated with respect.
All tenants have the right to be treated with respect in all of their interactions with their landlord.
• Organisational values and ways of working agreed locally between tenants and residents and landlords.
• Clear standards setting out what tenants and residents can expect when they interact with their landlord.
Every tenant and resident has the right to a decent, safe home, and a good quality service.
All tenants have the right to live in a home that is demonstrably decent and safe and to receive high-quality services from their landlord.
• Decent Homes Standard. • Repairs and maintenance standard. • Void standard. • Asset investment and management strategy. • Information on fire safety and procedures. • KPIs as agreed locally.
Every tenant and resident has the right to be listened to and have their view heard on decisions that affect their community, home and the services they receive.
All tenants and residents have the right to be listened to, even if they have not engaged in the way suggested by their landlord, both individually and collectively, and for their concerns to be meaningfully responded to.
• Sector support for a national tenant voice. • Robust mechanisms to provide assurance
that all tenants and residents can communicate with their landlord, including outside of ‘official’ channels.
• Service standards (developed with and tested by tenants and residents) on interaction and response, with regular reporting against the standard,
• Effective scrutiny, oversight and board arrangements – providing regular feedback to tenants about how their views have been taken into account.
Every tenant and resident has the right to know how the organisation is run, how decisions are made and how they can get involved.
All tenants and residents have access to clear information about the governance and leadership of their landlord, decision-making processes at all levels of the organisation and how they can get involved.
• Tenant and resident involvement strategy. • Information on decision-making processes,
key decisions that have been made (summary in regular reports/annual report), information on key staff roles and board members.
Collectively, tenants and residents have the right to influence decisions that affect
All tenants and residents have the right to influence decisions that affect their communities, homes and
• Tenant and resident involvement strategy. • Tenant-facing policies, such as repairs and
maintenance and complaints, are developed
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Page 12
their community, home and the services they receive.
services, and landlords proactively provide a wide range of opportunities for tenants to exert influence.
in partnership with tenants and residents and regularly reviewed.
• Mechanisms for tenant and resident involvement and scrutiny are varied, flexible and actively encouraged, and it is clear how tenants and residents can get involved through formal and informal routes.
Every tenant and resident will have simple, clear and accessible routes for raising issues and making complaints and seeking redress.
The routes for raising issues and making complaints are simple, clear and accessible, and tenants and residents have a good understanding of how they work and what happens next.
• Information clearly available on the website, in any communications, and in tenancy/leasehold agreements.
• Clear and effective complaints policies developed with and tested by tenants and residents.
• Service standard on complaints (developed with and tested by tenants and residents), with regular reporting against the standard.
• Clear escalation process (ombudsman and regulator).
Every tenant and resident will receive support and advice when things go wrong or their expectations aren’t met.
Support and advice when things go wrong is freely available to tenants and residents, and landlords engage proactively and transparently with independent routes for mediation and redress.
• Information clearly available on the website, in any communications, and in tenancy/leasehold agreements.
• Complaints policy and service standards. • Clear escalation routes. • Clear signposting to external/independent
routes. Every tenant and resident will have access to the information they need to make informed decisions and hold their landlord to account.
Landlords commit to openness and transparency – developing a standard set of information they will provide based on what is important to tenants and residents in ways that reflect their preferences. This may include information on performance, finances, staff structure, decision-making, governance.
• Transparency commitment – what landlords will share with tenants and residents and how (i.e. not just putting it on website) – could include relevant policies, organisational and financial information.
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Monday 11 March 2019
Focus Group of BCT’s Customer Scrutiny Committee – response to “Together with Tenants”
Questions for tenants and residents
1. Do you think the four actions outlined in this draft plan (see list below for reference) are the right
actions?
• A change to the National Housing Federation Code of Governance – your landlord’s board
would agree to be as accountable as possible to all residents and tenants.
• A new Together with Tenants Charter – your landlord would set out, in a clear and publicly
available document, what you can expect from them.
• Tenant and resident oversight and scrutiny of the charter – tenants and residents can
publicly report on how your landlord is doing.
• A closer link with regulation – tenant and resident oversight of the charter can provide useful
evidence to the regulator about whether your landlord is compliant with consumer standards.
1.1 Please let us know if you have any further comments on the actions.
Answer:
- The wording is at times difficult for tenants to understand and lots of jargon is used. CSC were not
clear exactly what it all means.
- CSC were not sure how the charter will have an impact upon the day to day things that are
important to tenants e.g. communication on local issues with their landlord.
- The section outlining a closer link with regulation sounds vague.
- There does not appear to be a contractual commitment between tenants and the landlord.
- Concerned that the charter is voluntary, in terms of a closer link. How will tenants know what closer
means? There is no measure and perhaps suggested measures could be included in any published
document.
2. Does the Together with Tenants Charter cover the right issues?
Answer:
- Good thing generally, no issue with validity.
- Covers the right issues but won’t necessarily change things on the ground.
- Adds another layer of bureaucracy for no reason, no external checks or validation.
- Needs work and thought around implementation and engagement if it is to work.
- The charter needs to become a living document maintained by the Housing Associations so that
performance can be measured.
3. Is there anything missing from the charter that you feel you have the right to expect from your
housing association?
Answer:
CSC are happy with the content of the charter and don’t think that there is anything relevant missing.
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4. Do you have any suggestions for how the wording of the charter could be improved or made
clearer?
Answer:
- There are a number of agencies involved with regulation, monitoring and scrutiny such as NHF /
HCA / Homes England / Housing Ombudsman / TPAS / CfPS. This is too confusing for tenants and
no one was sure about what each one did and how they interlinked. This will need to be simplified.
- CSC were of the opinion that there was still no direct route or way of escalating quickly concerns
about health and safety.
- CSC felt that the ‘buck’ could still be passed between Landlord, Local Authority or other agencies
and the new charter would do little to address this.
- In summary, CSC felt that there needed to be a clearer picture nationally about redress.
- The suggestion was made about some form of ‘independent trigger’ for example a community
trigger i.e. when a group of residents felt they had exhausted an issue locally, or a figurative trigger
e.g. when a number of complaints was reached on a specific topic. When this trigger was reached
there would be some form of independent investigation:
o From a regulatory body (CSC suggested something equivalent to OFGEM / IPCC that was
independent from the regulator or ombudsman)
o From a tenant panel – CSC suggested the national advisory tenant group could have a role
in over-seeing this.
o Essentially some group of authority would listen to residents’ concerns, act upon them and
take action on their behalf. It was felt that this would have more teeth and provide more
reassurance for tenants.
5. Do you agree that tenants and residents should have a role in reporting on housing associations’
performance against the charter?
Answer:
- Yes but not sure the Together with Tenants is the right way, for the following reasons:
o Issue with tenants understanding their rights and feeling comfortable to complain.
o Felt tenants put up with things for fear of repercussions.
o Tenants are not always happy to come forward, particularly if they felt they were in
‘trouble’ for rent or the condition of their property. Therefore, tenants and residents who
get involved tend to be self-selecting.
5.1 Do you have any suggestions for how this could work well in practice?
CSC had no further suggestions to make in relation to this question.
6. Do you agree that tenant and resident oversight of the charter should have a role in regulation,
including providing evidence to the Regulator of Social Housing where relevant?
Answer:
- It was felt that resident oversight is not great as it may validate the views of a particular group and
relying on this approach may be difficult. There may also be difficulties in terms of recruitment and
commitment from people who have their own lives to lead.
- A model that relies on residents to oversee something and give up their time is presumptuous.
Residents felt that they would feel more comfortable that someone else would step in quicker when
they felt it was needed.
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- Remove the ‘serious detriment test’ and use a different, lesser measure to trigger a regulatory
intervention (see q4).
6.1 Do you think this role should be strengthened?
CSC did not answer this question in light of the answer provided to question 6.
7. Do you have any further comments or suggestions on linking tenant and resident oversight of
performance to regulation?
Answer:
- Too much to expect tenants to understand performance information and regulation.
- It takes a really educated and skilled person to do this with time and commitment, no one wanted to
be critical of tenants but it was felt that this was not a role tenants should have to do.
- Some members in the group had been involved for many years and still felt this was something they
did not fully understand.
- CSC felt that BCT was transparent and open in sharing information although questioned whether
information related to what the landlord wanted them to see.
- Residents will not always feel comfortable or confident on how or what to challenge.
8. If you are interested in applying to be part of the independent Tenant Advisory Board, please
send us your email address.
Is there anything we’ve missed? Or do you have any further comments?
Answer:
CSC felt the idea behind Together with Tenants may have limitations and saw it as a reaction to make it
look like the sector are doing something, following the Grenfell disaster. The regulation and implementation
of the charter needs to be better outlined in a way that tenants can understand in any future documentation
and publications.
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Board 27 March 2019
Title: Value for Money Strategy Report By: James Clifford, Director of Finance & Resources & Company Secretary FOR DECISION
Business Implications
Risk The purpose of this policy is to mitigate against SR1 and SR2 by increasing income, and reducing costs.
Financial and Value for Money This policy sets out BCT’s strategic approach to Value for Money.
People/Consultation The policy encapsulates the targets set out when the budget and investment plan for 2019-20 were approved.
Equality and Diversity There are no direct consequences.
Environment Implications BCT’s Reinvestment % target will be improved by investment in the environment and new homes.
Contractor Implications BCT works with its contractors to achieve efficiencies.
1.
Recommendations
1.1
The Board is recommended to: i. Approve the Value for Money (VfM) Strategy
2. Synopsis
2.1 The Regulator requires BCT to take a strategic approach to VfM. This Strategy gives
the context for BCT’s current VfM position and gives targets for 2019-20.
3. Value for Money Strategy
3.1 The VfM Strategy can be found at Appendix A.
3.2 All targets result from the Budget and Investment Programme as approved by the Board at the last meeting.
4. Next Steps
4.1 Board will be kept updated on progress against targets through the quarterly management accounts.
5. 5.1
Contact Officer If you have any questions about this report that you would like clarifying before the meeting, you can contact James Clifford by telephone on 0800 5335 442 or email [email protected]
9.
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1
Value for Money Strategy
Policy Details
Policy Name Value for Money Strategy
This policy is applicable to Board, Management and Employees.
Author name James Clifford
Author job title Director of Finance and Resources
Authorised by Board
Date published 27 March 2019
Version Number 1.0
Date of next review 31 March 2020
Responsible Officer(s) for
implementation
Director of Finance and Resources
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Contents
Page Why do we need this document? 3 Context 4 - 5 Scope 6 Targets and Action Plan 7 - 8 Responsibilities, assurance and timeframes. 9 Appendix A – Value for Money Standard 10 Appendix B – Glossary of Terms 11 - 12 Appendix C – Target performance 13 - 15
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1. Why do we need this document?
What is Value for Money?
Link to strategy
“Value for Money” describes the entire approach an organisation takes to ensure
that available resources are used optimally throughout the value chain to achieve
maximum fulfilment of its Vision, Mission and Objectives.
Triple Bottom Line
As a housing association with a strong social purpose, BCT cannot just consider the
cheapest option. Alongside the economic benefits, it must also consider the social
and environmental benefits, this is often referred to as the ‘Triple Bottom Line’.
The three ‘E’s
Value for Money is often described in terms of the three ‘E’s of Economy, Efficiency
and Effectiveness, and this terminology has been adopted by the Regulator for
Social Housing.
Regulatory requirements for Value for Money
As a registered provider, BCT is required to follow the Value for Money Standard
(2018) issued by the Regulator of Social Housing. The Standard is set out in full at
Appendix A.
In particular, the Standard (as reinforced by the Accounting Direction 2019) requires
a registered provider to report in its statutory accounts:
• performance against its own value for money targets and any metrics set out
by the regulator, and how that performance compares to peers
• measurable plans to address any areas of underperformance, including
clearly stating any areas where improvements would not be appropriate, and
the rationale for this
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1. Why do we need this document? (continued)
Purpose of this document
The purpose of this document is to:
• Set out BCT’s strategic approach to Value for Money; and
• Demonstrate compliance with the Standard.
2. Context
BCT Vision, Mission and Values
Our Vision
Our Vision for 2020 is an independent Byker Community Trust where:
• We have delivered on the major stock transfer promises; • We ensure tenants have a key voice and role in decision making; and • We maximise access for local people into employment, training, health and
educational opportunities.
Our Mission
“We work for people who have a voice and influence in our business; we celebrate
our diverse neighbourhood; we provide quality homes, environment and services.”
Our Objectives
• Fulfilling the stock transfer promises: Completing and developing the Investment Plan.
• Engaging, empowering and supporting residents. • Contributing to economic health of the neighbourhood. • Completing the journey to independence: Being a first class strategic partner. • Growing our commissioning skills. • Establishing a framework and timetable for new contracts. • Underpinning Value for Money and the financial security of the BCT: Securing
outcomes which balance efficiency, economy and effectiveness in all we do. • Maintaining a clear approach to risk identification and management. • Ensuring we continue to have a sustainable business plan. • Delivering excellence: Focusing on excellent customer service. • Continuing to aim for first class governance. • Ensuring staff are proud of their work for Byker through support for training,
development and remuneration policies.
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5
2. Context (continued)
About Byker Community Trust
History
Byker Community Trust (BCT) is a Housing Association which was established in
July 2012 following the successful ballot of Byker residents, proposing the transfer of
the Estate from Newcastle City Council to an independent body in order to:
• Secure the much needed investment to upgrade the Estate; • Involve residents in greater direction of services on the Estate; • Ensure service reviews led to improvements in the delivery to tenants.
Properties
The Byker Estate was built mainly during the 1970s, designed by Ralph Erskine and
shaped around the community that lived in the area at that time. The Estate
perimeter is formed by the iconic Byker Wall. The properties are built of a unique
style and with non-traditional materials.
The Estate is Grade II* Listed with Historic England for its architectural significance.
This means that our investments and replacements of property components must
conform to the original design and materials. This brings technical challenges and
increased costs.
Backlog of Investment
A key objective for BCT has been to provide much-needed investment into the Byker
Estate to ensure its long-term viability. Unlike many other stock transfers, the priority
was large-scale refurbishment of exteriors (not interiors) of properties.
Demographics
The Byker Ward one of the most deprived in Newcastle. There significant issues of
health, education, poverty, and ICT literacy.
The population of the Byker Estate is diverse, with a large proportion of residents not
having English as their first language.
District Heating
The Majority of BCT properties are served by the Byker District Heating System
which provides heat and hot water on demand to our tenants. Charges to tenants for
District Heating comprise around 20% of BCT’s turnover.
Providing a District Heating to all tenants adds approximately £950 to BCT’s Housing
Management Cost per Unit.
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3. Scope
Links to other resources
The Value for Money Strategy articulates how BCT will optimise resources to deliver
its strategic objectives and so is relevant to other BCT strategies and policies. In
particular:
Link to Value for Money
Relevant Resource
Setting the Vision, Mission and Strategic Objectives for BCT
• The Corporate Plan 2015-20
Supplemental strategies • The Asset Management Strategy • The Tenant Engagement Framework • Thriving Byker Strategy
Resources which implement the Value for Money Strategy
• The Procurement Strategy • The 40 year Business Plan • The Annual Budget • Five year Investment Programme • Financial and Procurement Regulations • Treasury Management Policy • The work of the Customer Scrutiny
Committee
Timeframe
The current BCT Corporate Plan sets out the Vision, Mission and Objectives for
2015-2020.
The BCT Board has agreed that the development work for the new Corporate Plan
should begin during 2019-20 including extensive consultation with our tenants.
Updating the Corporate Plan will change the strategic objectives and therefore the
Value for Money priorities.
This strategy applies for 2019-20, and will prioritise completion of the final items in
the current Corporate Plan.
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7
4. Targets and Action Plan
Value for Money Targets 2019-20
BCT is required to report on its performance against its own Value for Money metrics
and those set out by the Regulator. BCT’s Value for Monet metrics areas follows:
Set by the Regulator
Metric Purpose Name 2019-20 Target
1 Efficiency Reinvestment % 29.3%
2 Effectiveness New supply delivered A – Social Housing Units
0.0%
New supply delivered B – Non-Social Housing Units
0.0%
3 Efficiency Gearing
26.2%
4 Efficiency EBITDA-MR Interest Cover -728.6%
5 Economy
Headline Social Housing Cost per Unit £6,650
6 Efficiency A – Operating Margin (social housing lettings only)
23.6%
B – Operating Margin (overall)
23.6%
7 Efficiency ROCE % 8.0%
Set by BCT Board
Metric Purpose Name 2019-20 Target
8 Efficiency Rent Collection
98%
9 Efficiency Void rent loss
1.3%
10
Economy Budget Surplus 2019-20 £2,086,000
A glossary describing these metrics is set out in Appendix B.
Details of these targets and BCT’s current performance are set out in Appendix C.
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5. Responsibilities and Review
Board Approve Value for Money (VfM) Strategy Monitor progress via quarterly management accounts.
Audit and Risk Committee Scrutinise VfM target progress via quarterly management accounts.
Director of Finance Provide quarterly updates to Executive Team and Board. Advise on improvement actions.
Executive Team Monitor and manage budgets closely. Adhere to procurement rules. Initiate VfM discussions with staff ensuring everyone is engaged the VfM agenda.
Management Accountant Monthly budget meetings with key budget holders.
All staff Receive training on lean processing and consider VfM actions that can be taken in their daily work.
Review
The Strategy will be reviewed in March 2020, to align with the Corporate Plan for
2020 onwards.
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Appendix A - 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; and
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 and where they invest in non-social housing activity, they should consider whether this generates returns commensurate to the risk involved and justification where this is not the case; and
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; and
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.
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Appendix B – Glossary of Terms Metric required by the Regulator Reinvestment % Investment in new and existing property as a % of the
value of all the housing stock in the accounts. This metric indicates the level of profits that is being used to improve or create housing assets.
New supply delivered A – Social Housing Units B – Non-Social Housing Units
New housing built or bought as % of the total number of housing stock. This metric is shows how the housing association is contributing to the government’s priority of building new homes. The metric is split to show homes delivered for social housing purposes and other purposes.
Gearing This measure compares the net debt of the organisation to the value of its assets. Housing Associations (HA) will often borrow against the value of their properties to receive funding for new projects. This metric shows how much borrowing of this type the HA has done. If the ratio is too high it could indicate financial risk. If the ratio is too low, it may indicate that the HA could stretch its business plans further.
EBITDA-MR Interest Cover
This metric compares the cash made from the essential operations of the HA compared to the interest payments that it is required to make. Essential operations include running costs and major repairs, but not new developments. This metric shows how affordable the HA’s current level of debt is. Similar to above, a low value will potentially indicate a risky business model. A high number might indicate that the HA could take on more debt to further its Objectives.
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Appendix B – Glossary of Terms (continued) Metric required by the Regulator (continued)
Headline Social Housing Cost per Unit
The running costs and major repairs costs incurred by the HA divided by the number of housing units it owns. This metric is an indication of how economical and efficient the HA is.
Operating Margin A ratio of the operating profit in the accounts compared to turnover (social lettings). This is a measure of the “profitability” of the HA.
ROCE % This metric compares BCT’s profits to the value of the assets as recorded in the accounts. This is another measure of the “profitability” of the HA.
Metrics set by the BCT Board
Rent Collection % This metric compares the value of rent collected by BCT compared to the level of rent charged to tenants. It shows how efficient BCT’s rent collection procedures are and is an indication of sustainable tenancies.
Void rent loss % This is a measure of the rent lost because a property was empty. It is a factor of the number of tenancy terminations and the length of time that is takes to relet the property. This metric is affected by the efficiency of internal processes to renovate and advertise empty properties, and the demand for the property type.
Budget Surplus 2019-20 The BCT Board has approved the budget for 2019-20. The budget turnover (income)exceeds expenditure by 1,786,000.
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Appendix C – Target Performance
1. Reinvestment Investment in new and existing property as a % of the value of the housing stock in the accounts.
2017-18 (Actual) 2018-19 (Forecast) 2019-20 (Target)
9.7% 18.6% 29.3%
This is an important metric for BCT and as it reflects our strategic priority since Stock Transfer to invest and improve the Byker Estate. After a relatively slow year of capital expenditure in 2017-18, Reinvestment has been higher in 2018-19 and is expected to be even higher in 2019-20.
2a. New Supply (Social) New social units delivered as % of stock numbers
2017-18 (Actual) 2018-19 (Forecast) 2019-20 (Target)
0.6% 0.2% 0%
This metric does not currently represent a strategic priority for BCT. The new homes delivered are the Hobby Rooms in 2017-18 and Ralph Erskine House in 2018-19.
3. Gearing Net debt compared to assets
2017-18 (Actual) 2018-19 (Forecast) 2019-20 (Target)
10.7% 14.3% 26.2%
BCT has a very low level of gearing compared to its peers and the sector as a whole. The Board is aware that BCT has capacity to carry out additional investment in the short to medium term, and the various options to use this capacity will be the subject of debate as the next stage of the Corporate Strategy is formulated.
4. EBITDA MRI Interest Rate Cover
Operating cashflows compared to interest costs
2017-18 (Actual) 2018-19 (Forecast) 2019-20 (Target)
706.9% -54.6% -728.6%
These numbers reflect the fact that BCT is moving into two years where debt will be increasing as loan funding is used to deliver major repairs on the Estate.
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Appendix C – Target Performance (continued)
5. Headline Social Housing Cost per unit
Running costs and major repairs costs per unit of stock
2017-18 (Actual) 2018-19 (Forecast) 2019-20 (Target)
£3,929 £5,098 £6,648
The cost per unit figure is calculated using the day to day costs of running BCT as well as the cost of delivering major repairs like the roof and lift replacement programmes. These numbers are growing because BCT is increasing the level of investment in stock - an average of £1,409 per unit in 2018-19 to £3,293 per unit in 2019-20.
6a. Operating Margin (SHL)
Operating profit compared to turnover (social lettings)
2017-18 (Actual) 2018-19 (Forecast) 2019-20 (Target)
21.8% 18.1% 23.6%
It will be a major challenge for BCT to maintain this metric at the sector median. For a housing association that provides largely general needs accommodation, BCT charges a high level of service charges due to the District Heating System and Byker Wall concierge charges. Approximately 25% of BCT’s turnover is from service charges which operate at 0% or negative margins. In addition, BCT has higher unavoidable expenditure due to the fact that we have increased investment costs related to conforming to the Grade II* Listing requirements. The Painting Programme is a major works item and adds further costs and significant variability to the metric. The metrics are healthy for the years shown, but will come under increasing pressure as BCT matures and depreciation charges increase as a result of major schemes completing.
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Appendix C – Target Performance (continued)
8. Rent Collection Rent collected compared to rent charged
2017-18 (Actual) 2018-19 (Forecast) 2019-20 (Target)
97.1% 98.0% 98.0%
BCT’s calculation is based on the movement in rent arrears after expected housing benefit payments are excluded. Over 500 of BCT’s 1800 tenants receive Universal Credit, and this number is growing. There is concern that the final rent week of the year will not be funded for Universal Credit customers. Maintaining the collection rate for 2018-19 into 2019-20 will be a good result for BCT.
9. Void rent loss Rent lost because properties were not tenanted
2017-18 (Actual) 2018-19 (Forecast) 2019-20 (Target)
1.87% 1.54% 1.3%
The Board has set a very challenging stretch target for improvement on void rent loss %. This target has improved greatly since 2017-18.
10. Budgeted Operating Surplus
Operating income compared to operating expenditure.
2017-18 (Actual) 2018-19 (Forecast) 2019-20 (Target)
£1,967,000 £1,750,000 £2,086,000
The Board has set a tight budget for 2019-20 that will require tight cost control by BCT Executive Team.
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Board 27 March 2019
Title: Annual Review of Committees Report By: The Chairs of the Committees FOR DECISION
Business Implications
Risk Audit and Risk Committee (A&RC) manages risk on behalf of the Board, has reviewed the Risk Management Framework and ensures that BCT has a robust system of internal controls.
Financial and Value for Money A&RC scrutinises financial statements and management accounts in detail prior to presentation to Board. Governance and Remuneration Committee (G&RC) reviews staff and Board pay to ensure value for money.
People/Consultation Customer Scrutiny Committee (CSC) helps BCT customers influence services, policies, and procurements. G&RC carried out benchmarking of salaries.
Equality and Diversity CSC seeks the views of all tenants, including those that are traditionally “hard to reach”.
Environment Implications CSC is helping to shape the Environmental Upgrade proposals and deal with the issues of waste on the Estate. A&RC has received a report on litter.
Contractor Implications CSC oversaw the procurement of Concierge and Cleaning services.
1.
Recommendations
1.1
The Board is recommended to: i. Receive an update from the Committee Chairs; ii. Confirm that the Committees are effectively discharging their Terms of Reference.
2. Synopsis
2.1 The Committees are reviewed including:
• the work of the Committees during the year;
• membership and attendance; and
• an outlook for the year ahead.
2.2 The Board is asked to confirm each Chair’s assessment of effectiveness.
3. Assessments
3.1 The Committee assessment are set out in the appendices:
• Appendix A – Audit and Risk Committee
• Appendix B – Governance and Remuneration Committee
• Appendix C – Customer Scrutiny Committee
4.
Contact Officer - If you have any questions about this report that you would like clarifying before the meeting, you can contact James Clifford by telephone on 0800 5335 442 or email [email protected]
10.
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Appendix A - Audit and Risk Committee (A&RC) 1
Terms of Reference
1.1 The role of A&RC is to:
• Approve and manage the internal plan;
• Manage the external audit;
• Manage Risk on behalf of the Board;
• Scrutinise annual accounts and other financial information for the Board; and
• Review the inputs and assumptions of the base Business Plan prior to stress-testing.
2. Work of the committee during 2018-19
2.1 During 2018-19, the focus of the Committee has been to improve the systems of risk management and internal audit at BCT. The work undertaken has significantly improved the internal control environment at BCT and increased the level of assurance for the Board.
3. Membership and Attendance
3.1 3.2
The following table sets out the attendance at the Committee for the year:
Audit and Risk
Committee Member
24-Apr 2018
22-May 2018
24-Jul 2018
23-Oct 2018
22-Jan 2019
Total
Christine Stobbs
Y Y Y Y Y 5/5
Jim Coulter
Y Y Y Y Y 5/5
Gordon Bell
Y Y Y Y Y 5/5
Alison Smith
Y N Y 2/3
Andrew Taylor
N N 0/2
Victoria Beattie
Y Y 2/2
The Chair would welcome more members to join the Committee to reduce the risk of non-quorate meetings.
4. The year ahead
4.1
In 2019-20, progress through the Internal Audit Plan will continue which will broaden and deepen the level of assurance for the Board. Internal audits planned for 2019-20 include: Property Compliance, ICT, Anti-fraud, and mitigating risk controls.
4.2 The Committee will oversee the external audit and review the 2018-19 annual accounts.
4.3 The Committee will review the following policies before they are presented to Board for approval:
• Procurement rules;
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• Treasury Management Policy;
• Counter Fraud Policy; and
• Regulatory Returns Policy.
4.4 The Committee will review adherence to the Governance and Viability Standard, and recommend an overall statement on the strength of internal controls which will be included in the annual accounts.
5. Committee Effectiveness
5.1 Having reviewed the work of A&RC, the membership and the forward plan, the Chair concludes that the Committee continues to discharge its Terms of Reference effectively.
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Appendix B - Governance and Remuneration Committee (G&RC) 1.
Terms of Reference
1.1 The role of G&RC is to:
• Consider in detail matters of governance;
• Advise on nominations to the Board, and review Board member skills and succession planning;
• Approve key HR and equality policies and benchmark employee salaries;
• Approve the salaries of the Chief Executive and Board Members; and
• Review regularly its own effectiveness.
2. Work of the committee during 2018-19
2.1
During 2018-19, the committee considered various reports including its own terms of reference, the policies for Board membership, the admission of shareholders and the governance self-assessment. It oversaw arrangements for complying with the GDPR and noted the findings of the gender pay gap review.
2.2 The Committee also recommended the appointment of two new Board members and two additional shareholders. It recommended a policy for the remuneration of Board members and oversaw the recruitment and selection of the new Chair of the Board.
2.3 The Committee considered the triennial review of staff remuneration including an external benchmarking exercise and agreed specific recommendations regarding the CE and Executive Team pay.
3. Membership and Attendance
3.1 The following table sets out the attendance at the Committee for the year:
Governance and Remuneration
Committee Member
01-Apr 26-Jul 31-Jan Total
Gordon Bell
Y Y Y 3/3
Nigel Emmerson
Y Y N 2/3
Jim Coulter
Y Y Y 3/3
Nick Kemp
N* N Y 1/3
Geraldine Kay
N 0/1
*Due to an oversight, Nick Kemp did not receive the Committee Papers
4. The year ahead
4.1
In May 2019, the Committee will review the primary HR policies of BCT including the Code of Conduct, and the annual review of Governance documents. The Committee will scrutinise in detail BCT’s self-assessment against the NHF Code of Governance.
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4.2 G&RC will consider improvement actions arising from the recent Board Effectiveness survey.
4.3 In January 2020, the Committee will consider how best to achieve a smooth succession when two Board members retire at the 2020 AGM. Both members are also members of G&RC, including the Chair.
4.4 The Committee will review adherence to the Governance and Viability Standard, and recommend an overall statement on the strength of internal controls which will be included in the annual accounts.
5. Committee Effectiveness
5.1 Having reviewed the work of the G&RC, its membership and the forward plan, the Chair concludes that the Committee continues to discharge its Terms of Reference effectively.
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Appendix C - Customer Scrutiny Committee (CSC) 1.
Terms of Reference
1.1 The purpose of the CSC is to:
• Review and set service standards in line with budget parameters;
• Monitor performance on complaints and customer satisfaction;
• Encouraging further tenant involvement across the Estate; and
• Review the committee’s effectiveness.
2. Work of the committee during 2018-19
2.1 2.2 2.3 2.4 2.5
During 2018-19, the focus of the Committee has been to recruit members, establish standard agenda items, receive performance information, identify training needs and develop a programme of service reviews. The CSC were involved in the review of the Concierge and Cleaning contract reviewing the current provision and budget requirements as well as developing Key Performance Indicators (KPI) and work schedules for the new contracts. The CSC have commenced a review of BCT’s Complaints and Compliments policies and procedures and have been supported in doing so by receiving training from the Centre for Public Scrutiny (CfPS). The CSC have received quarterly performance reports and have agreed a format for how the information is presented that has enabled members to gain a more thorough understanding of the information and service delivery. The CSC have held an additional meeting to consider the content of the National Housing Federation document “Together with Tenants” in order to formulate a response to the consultation.
3 Membership and Attendance
3.1
The following table sets out the attendance at the Committee for the year:
Customer Scrutiny
Committee Member
25-Jun 13-Aug
12-Nov
04-Feb
Total
Annette Patten
Y Y Y Y 4/4
Fiona Ford
Y Y N N 2/4
Steve Sheraton
Y Y Y Y 4/4
Mark Ford
Y Y N N 2/4
Andrew Ross
N Y Y N 2/4
Kayleigh Spencer
N N N N 0/4
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3.2
Carole Ludbrook
N N N N 0/4
Sandra Concalves
N N N N 0/4
Elisee
Makulu N N N N 0/4
Observers
Anthony Itiat
N Y N N 1/4
Tanya Longmead
Y Y Y Y 4/4
Herbie Warren
Y Y Y Y 4/4
Olya Bowers
Y
N Y N 2/4
Carolann Smith
Y N N N 1/4
The Chair has written to members of the CSC who have failed to attend any of the meetings advising that they have had their membership revoked due to non-attendance. The resulting CSC vacancies are to be filled from the pool of observers in order to reduce the risk of non-quorate meetings. This exercise will be completed at the meeting in May 2019.
4. The year ahead
4.1 4.2 4.3 4.4 4.5
In 2019-20, the CSC will continue to receive quarterly performance reports and monitor information and trends relating to complaints that are received by BCT. The CSC will conclude the scrutiny review of BCT’s Complaints and Compliments policy and procedure before commencing a scrutiny review of Repairs and Maintenance. The CSC will also play a role in BCT’s consultation exercises that will help to shape future investment and corporate planning activities. The CSC will identify any further training needs and an additional area for a scrutiny review to be held during 2019/20. The Committee will also oversee the delivery of the BCT Family Fun Day, which will be held on 31 July 2019 and the BCT Tenants Conference to be held in October 2019.
5. Committee Effectiveness
5.1 Having reviewed the work of CSC, the membership and the forward plan, the Chair concludes that the Committee continues to discharge its Terms of Reference effectively.
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