board agenda - south essex homes · 3.2 3.2.1 3.2.2 3.2.3 3.3 3.3.1 3.4 3.4.1 tony churton roger...

South Essex Homes Limited

Board Meeting

Date: Wednesday 15th March, 2017

Time: 6:30pm Committee Room 4

Board Agenda

Item Lead Person Indicative

Timing

1. Welcome and Introductions

2. Apologies for Absence

3. Declarations of Interest

PUBLIC AGENDA

4. Minutes & Matters arising from the Board

Meeting of 17th November, 2016

Minute 6.2 - Response to additional Residents Voice Your View - (TA electronically circulated 02/12/2016)

Minute 7.5 - Review of Risk Matrix - (Contained at agenda item 5)

Minute 8.2 - ICT SLA Progress (Contained at Agenda Item 15 Clause 4.3.1)

Minute 10.2 - DL to amend wording around social return on investment within the Value for Money Strategy. (Completed and reflected)

Minute 11.4 - Local R66b Update - (TA electronically circulated TD’s response 30/11/2016)

10 mins

5. Governance and Stewardship

Update on Board Appraisals

Training & Development Plan 2017/18

New Business Committee Proposal

Risk Matrix Proposal

Beverley Gallacher

10 mins

6. Chairs Remarks

Investors in People (IIP)

NFA Chairs Meeting Update

Reappointment to NFA Board

Shoebury Redevelopment

Tony Churton 10 mins

7. Residents: Voice Your View (none this cycle)

Beverley Gallacher 5 mins

8. Audit Committee Minutes – 22nd February 2017

David Joyce 5 mins

9. Company Assurance Report Daniel Lyons /

Beverley Gallacher 10 mins

10. Careline Service - Quality Assurance Review Outcome

Traci Dixon 10 mins

11. Budget Proposals 2016/17 David Lincoln 10 mins

12. Vision 2022 Business Plan David Lincoln 15 mins

13. Performance Update Report

Complaints Update Beverley Gallacher 15 mins


Draft Minutes of Board Meeting

Date: 17th November 2016

Time: 5:30pm

Committee Room 2, Civic Centre

Present: Tony Churton – Chair of the Board; Roger Eastwood - Vice Chair of the Board; Catherine Haycock; David Joyce; Keith Ducker; David Norman; Michael Oxley; Meg Davidson; Sacha Jevans; Rosalind Lane (Agenda Item 7 - end); In Attendance: Mike Gatrell - Chief Executive; David Lincoln - Director of Finance; Beverley Gallacher - Company Secretary; Tasmin Arthurton - Corporate Services Officer; Traci Dixon - Group Manager; Paul Longman - Group Manager; Daniel Lyons (up to Agenda Item 13);

Observers: 4

Action

1. 1.1

Welcome and Introductions Tony Churton, Chair of the Board, welcomed and introduced those present.

2. 2.1

Apologies for absence Apologies for absence were received and accepted from David Burzotta. Apologies for absence were received from Sharon Houlden and Mario Ambrose.

3. 3.1

Declaration of Interest There were no declarations of interest.

4. 4.1 4.2

Minutes and Matters arising from the Board Meeting of 21st September, 2016 6.4 - Staff Briefing dates were circulated to Board Members electronically. 7.1 - Leonard Cheshire case studies were circulated to the Board electronically.

Agenda Item No.

4

4

4.3 4.4 4.5

i)

8.2 - TA circulated the Residents Voice Your View response electronically. 10.4 - A report on Council Tax charged on void properties was circulated to the Board electronically. Recommendation The minutes of 21st September, 2016 were agreed as true and accurate record of the meeting.

5. 5.1 5.2 5.3 5.4

Chair’s Remarks NFA Update The NFA ‘Ordinary People Extraordinary Lives’ exhibition took place at Westminster Palace, 3 out of the 20 chosen exhibits were residents of South Essex Homes. NFA Meeting with the Housing Minister next week, where there will be some useful updates on regulation from Housing and Planning Act. KD recently attended NFA Board Member training and found it very useful and informative. SEH’s position on NFA board will require re-election next year. Innovation Awards South Essex Homes were positioned 6th nationally out of all housing organisations and were the top ALMO of the group. Staff Briefing - IIP Update IIP Gold assessment rescheduled to 30th January 2017. Board Member/Cabinet Member Liaison Meeting A positive meeting had taken place on 9th November between the Chair, Vice Chair, Portfolio Holder for Housing, the Leader of the Council, Director of Adult Services & Housing, MG and the Chief Executive of the Council, further meetings scheduled for January and April 2017.

6. 6.1 6.2

Residents: Voice Your View TC read aloud the Residents Voice Your View submission regarding water charges and subsequent response. “The Council is clarifying some final legal issues with external solicitors. It then hopes to be able to confirm its position regarding the water charges levied to tenants within the next three weeks.” The Board were advised of a further submission, however as agreed by the Board, questions should be received 7 days in advance of the Board meeting where an answer will be given. Officer’s response to the second submission will be circulated to the Board electronically.

TA

7.

Governance & Stewardship

5

7.1 7.2 7.3 7.4 7.5 7.6 7.7

i)

ii)

MO advised the Board that the Recruitment Panel met on 14th November and interviewed 4 candidates shortlisted out of the 6 applications. The panel recommended to the Board to appoint Rosalind Lane to the Board with immediate effect, and commence the Board succession training plan with a view to fill the further tenant vacancy due in June 2017. MO gave statements in support of each candidate. TC thanked panel members for their hard work on reviewing applications and the interview process. BG gave an overview of the Chairs Actions agreed by the Chair and Vice-Chair of the Board. TC asked when the risk matrix will be reviewed. MG confirmed that further work will be undertaken and reported to the Board. The Board agreed for future ‘Chairs Actions’ to be circulated to the rest of the Board for comments 48 hours in advance of a decision being required where possible. Recommendations The Board agreed the recommendation from the Recruitment Selection Panel to nominate Rosalind Lane to the Board for a Term of Office until 17th November 2019. The Board noted the Chairs Actions agreed by the Chair and Vice-Chair in accordance with the Code of Governance.

DL BG

8. 8.1 8.2 8.3

i)

Audit Committee Minutes - 24th October, 2016 DJ gave an overview of the meeting and advised the Board that the main area for debate at the meeting was around whether the Committee should have more input into the Internal Audit Annual Plan. The Board requested an update on the review of the ICT SLA. BG explained to the Board that the ICT SLA review had been delayed. However the newly consolidated SLA had been received and consultation would take place with the CMG and SMT. ICT SLA to come back to the Board after being reviewed. Recommendation The Board noted the minutes of the Audit Committee meeting of 24th October, 2016.

BG

10. 10.1

Value for Money Strategy DL gave the Board an overview of the report.

6

10.2 10.3

i)

After discussion, the Board requested additional consideration and additions be made to the commentary around social return on investment. DL to circulate revised wording to the Board by 5th December 2016. Recommendations The Board agreed the Value for Money Strategy as recommended by the Audit Committee, subject to the changes to be agreed electronically.

DL

11. 11.1 11.2 11.3 11.4

i)

ii)

Company Assurance Report DL asked the Board to note that although sickness absence levels are much higher than last year, we have made recommendations to the P&R Committee for changes to the sickness absence process. DJ asked whether KP15 (average time to complete all jobs) and KP21 (satisfaction of tenants with repairs and maintenance) are linked. PL explained that over recent years, average time to complete has actually increased due to a drop in the number of emergency jobs and better planning of works. DJ queried why Local R66b (percentage of tenants in arrears over 7 weeks) figure is increasing. TD advised this could be due to a Housing Benefit issue, but will report back to the Board electronically after investigation. Recommendation The Board noted the update provided on financial information as at 31st October, 2016. The Board noted the update provided on performance information as at October, 2016.

TD

12. 12.1 12.2 12.3

i)

Company Compliance Report DN asked in relation to the fire at Grampian earlier this year, whether we can be satisfied that residents now know proper fire procedures in high-rise flats. MG advised that we are as confident as we can be. Joint visits have been carried out through a door knocking exercise where nearly all residents were reached, given assurance and reminded of the procedure. In response to recommendations made by the Fire Service, signage/lighting had been reviewed and replaced as necessary. We are currently in the process of working with door manufacturers to look at the installation of permanent signs to the door detailing the fire procedure. The Board requested that the compliance report include an executive summary at the beginning of the report. Recommendation The Board noted the compliance update.

MA

7


Report of Group Manager Resources and Business Development

to

The Board

on

15th March, 2017

Report prepared by: Beverley Gallacher

Tel: 01702 212649

Governance and Stewardship

A Public Agenda Item

1 Purpose of Report 1.1 To obtain agreement from the Board on governance related issues.

2 Recommendations 2.1 2.1.1 2.1.2 2.1.3 2.1.4

The Board are recommended to:- Agree to the formation of a New Business Committee with the Terms of

Reference detailed at Appendix 1.

To agree the appointment of a Chair of the New Business Committee on

15th March 2017.

Agree the amendments to the New Business Risk Matrix as contained at

Appendix 2.

To note the Board’s attendance from February, 2016 to February, 2017 in

compliance with Clause 15.1.8 of the Code of Governance.

3 Background 3.1 3.1.1

New Business Committee The Board are requested to approve formation of a New Business Committee to review opportunities that are being brought to the Board for approval and to ensure that the business case and risk matrix are aligned to the Business Plan Vision 2022 (see Agenda Item 12). The New Business Committee Terms of Reference are contained at Appendix 1 to this report and will be reviewed by the Committee Members once established. The Board are asked to agree that the Membership will initially be 4 members as detailed below:

Agenda Item No.

Agenda Item No.

5

8

3.1.2 3.1.3 3.2 3.2.1 3.2.2 3.2.3 3.3 3.3.1 3.4 3.4.1

Tony Churton Roger Eastwood Meg Davidson George Sutherland George Sutherland will be co-opted from the South Essex Property Services Board. The Committee will meet when required to discuss and agree (subject to the Risk Matrix parameters) new business opportunities for both South Essex Home and South Essex Property Services which will ensure a more effective and efficient process for the Group. New Business Risk Matrix We have reviewed the original assessment criteria which needed considerable amendment and clarification. The original concept included eight or nine criteria to score which is both complicated and makes the weighting system unwieldy. It is recommended that the number of criteria should be considered for reduction. Scoring on a 1, 2, 3 basis does not allow for enough gradation between scores, so it is suggested that 1, 3 and 5 be used instead (anything more than that will make the scoring increasingly subjective. Where the score could be one or two (or three) due to different factors, the highest must be used. It should be noted that no criterion can have a zero or part score. Detailed at Appendix 2 to this report is information relating to the previous risk matrix which had been used (in italics) and the newly recommended commentary for agreement underneath each section. Board Annual Appraisals The dates for the annual appraisals are in the process of being arranged with the Chair and Vice-Chair of the Board. Following the completion of these 1-2-1s with the Chair and the Vice Chair the Boards Development and Training plan for 2017/18 will be formulated and sent out to Board Members for consideration. Board Attendance The Board as a whole have attended 81% of all Board, Committee and Mandatory training sessions from February, 2016 to February, 2017 and have achieved the target set in accordance with Clause 15.1.8 of the Code of Governance.

4 Equality and Diversity

4.1

All equality and diversity issues identified from the proposals contained in this report have been considered and are in accordance with the South Essex Homes Equality and Diversity Policy.

9

5 Risk 5.1

Any risks identified from the proposals contained in this report have been considered by the Senior Management Team. The Board have identified risks associated with the governance of the organisation which is included in Agenda Item 8 – the Company Assurance Report. Risk SEHRISK06 – Risk that the governance arrangements including statutory compliance are not robust enough to enable the Board to undertake its roles and responsibilities in full as Non-Executive Directors under Companies Act 2006. The unmitigated risk for this score is 25.

6 Financial Implications 6.1 All costs associated with the recruitment of the non-executive directors for

South Essex Homes are contained within the approved 2017/18 budgets. (Agenda Item 11) along with relevant development budget to undertake the programme (to be agreed) in 2017/18.

7 Background Papers 7.1 Not applicable.

8 Appendix 8.1 8.2

Appendix 1 - Proposed ToR of New Business Committee Appendix 2 - New Business Risk Matrix

10

Appendix 1 to Agenda Item 5

SOUTH ESSEX HOMES LIMITED

New Business Committee

Terms of Reference

The Committee will at all times uphold the organisation aims, objectives and policies and undertake to act on any specific tasks delegated to the Committee by the Board. Statement of Purpose – The Board of Directors has delegated responsibility to the Committee to identify and evaluate new business opportunities and to perform an advisory and steering role in relation to new business activity within the organisation and for the wider group. The duties of the Committee shall include the following: Oversee the development of a Commercial Strategy for South Essex Homes / South

Essex Property Services, and recommend to Board for approval Authorise and approve the submission of Tender returns in relation to new business

opportunities where this is required by the agreed risk and value criteria. Make recommendations to the Board in relation to the new business decisions and

associated approval of contracts. Selection and appointment of external consultants and contractors who are appointed to

advise the Committee.

Agree annual budget for consultancy/ professional advice in relation to business development.

Evaluate risks relating to the considered new business opportunity and where there is

potential for a significant risk to be associated with the project to report to the Board.

Determine and monitor investment opportunities in direct relationship with the Business Plan Vision 2022.

11

To review and propose annual performance targets, and recommend to Board for approval

To monitor the performance of new business activity against agreed KPIs, and report to

Board where performance is outside agreed variances

To ensure that any new opportunities are in strict compliance with the Financial Regulations

Evaluate the Risk Matrix and ensure that it is fit for purpose and undertake a review on

an annual basis

The Committee will report to the Board on the effectiveness if its Terms of Reference and recommend any changes for the Board’s agreement. The Chair of the New Business Committee shall, at their discretion, report any other urgent and/or relevant matters to the Board. The Committee shall be appointed by the Board from amongst the Board Members and shall consist of not less than three members. The Board shall appoint the Chair of the Committee. The Chief Executive and Director of Business Development (where appropriate) shall normally attend meetings and when required any other staff member.

.

Frequency of Meetings: Minimum of 2 per year Support to the Committee: Company Secretary Membership: A minimum of 3 Board Members Attendees: Chief Executive and Director of Business

Development

Co-opted Members South Essex Property Services Board Member (excluding the nominee from the South Essex Homes Board)

Quorum: 2

12


Recommendation:

To agree the proposed changes to the Risk Matrix.

Thoughts on SEPS Risk assessment matrix

We seem to have moved away from the original concept which needs considerable

amendment and clarification. Having eight or nine criteria to score is both

complicated and makes the weighting system unwieldy. The number of criteria

should be considered for reduction.

Scoring on a 1,2, 3 basis does not allow for enough gradation between scores, so it

is suggested that 1,3 and 5 be used instead (anything more than that will make the

scoring increasingly subjective. Where the score could be one or two (or three) due

to different factors, the highest must be used.

No criterion can have a zero or part score.

Detailed below is information relating to the previous risk matrix which has been

used (in italics) and the newly recommended commentary for agreement underneath

each section.

Attributes or criteria: Capital Investment Required

Capital investment refers to investment for the acquisition of the assets required to

operate the particular service. In the case of South Essex Property Services this

might refer to premises, plant, vehicles or in the case of the development of new

homes, land. When assessing capital investment, consideration needs to be given

to:

The level of investment

The source of the investment (loans, interest rates, repayment levels)

The opportunity cost

The period of time over which the investment will be written off

13


Suggested scoring:

Score Value Recovery

1 None or under

£100k Written off in

lifetime of contract

3 Over £100k and

funded from internal reserves

Permanent acquisition of asset such as

property

5

Borrowing needed from source external to SEH/SEPS

Asset to be disposed of at end of contract at less

than purchase price

Revenue Subsidy Required

Revenue subsidy refers to any funding that may be required to allow a project to become viable over the short term. This might include recruitment or the purchases of consumables prior to the project generating income. Revenue subsidy should only be required over the short term otherwise a project is unlikely to be financially viable for South Essex Homes Suggested scoring:


1 None or under £50k Written off in first year of contract

3 Over £50k and under £100k

Written off over initial life of

contract

5 Over £100k Annual review and

write off adjustment in year

Fit with Existing Services

The fit with existing services considers to what extent South Essex Property Services can deliver the service without redesigning the service delivery model. In this context an opportunity that could be delivered without changing the existing service delivery model and supporting infrastructure would be considered a lower risk than one that required service redesign The fit with existing services and the next one ‘Strategic fit’ could be brought together

as one. It is proposed that a new title to combine both. ‘Fit with current objectives’

14


Suggested scoring:

Score Current service

delivery Current strategic

direction Geography

1

Services currently delivered by South

Essex Homes/SEPS

Falls within the current Business

Plan

Can be undertaken from existing premises

3

Includes an extension of

services currently delivered by South

Essex Homes/SEPS

Falls mainly within current Business Plan but requires

some minor changes to be

agreed.

Requires new accommodation within

Southend Borough

5

South Essex Homes/SEPS does

not currently provide this service

Is currently outside the

Business Plan

Requires new accommodation

outside Southend Borough but within

Essex

Strategic Fit

Strategic fit refers to the degree to which the project supports South Essex Property Services aims. While this will have financial dimensions it will also take into account other strategic priorities including South Essex Homes Business Plan Vision 2022. See above Revenue Income generated The revenue income generated assessment needs to take into account the level of income as well as the degree to which this allows a margin over costs which exceeds the financial “hurdles” agreed by the South Essex Property Services Board. These include:

Minimum expected contribution to reducing Central Overheads in cash terms

Minimum surplus over operating costs per annum or over lifetime of project

Minimum payback period for one off costs This criterion is not really needed if the hurdles are set or agreed by Board at the outset for all projects that may come along. It is proposed that, at the very least, there should be agreed guidelines set which will be developed. Length of Contract Depending on the circumstances the length of the contract will either increase or decrease risks. A short term contract may enable South Essex Property Services to contain exposure where there are other risks and enable an exit from the arrangement relatively quickly if not performing as anticipated. Alternatively a longer-

15


term arrangement may allow better options for recovering investment and a greater degree of stability. It is therefore important that length of contract is considered in the context of all other risks. It is proposed that this is included in the exit strategy.

Exit Strategy

This relates to the ease with which South Essex Property Services can terminate an arrangement. It may relate to contractual arrangements or the extent to which terminating the arrangement has the potential to be costly, disruptive, or damaging to reputation Suggested scoring

Score Contract or project

exit Cost recovery

Knock-on effects of exit

1

Clearly defined timescale or

contained piece of work within which

all costs and charges can be

levied and recovered

All costs incurred during delivery

and paid for at the time OR Start up

and/or mobilisation costs

claimed at commencement

None or minimal

3

Defined timescale or scope of work

that can be ended by either party

Start up and mobilisation costs

recovered over period of contract not recovered if

contract terminated ahead of schedule OR Payments based on performance

Unsold stock OR Contracted staff to

remunerate OR Disruptive effects to main business OR Increase in Central

overheads as a result exceeds budget

contingency

5

Vague contract terms giving

uncertainty of exit mechanisms for

both parties

Onerous penalties for non-

performance OR Unable to recover high start-up and mobilisation costs if terminated early.

Reputational damage to South Essex

Homes or SBC OR Disruptive to core

business or service delivery

Resources Required to Bid

All bids will require some degree of time and potentially financial resource input. This

element is intended to encourage consideration of the extent of resource input

required in the context of the bid value both in financial terms and in relation to

reputation and establishing expertise. Each scenario will need to be considered on

16


its own merits however previous experience, the level of in house expertise the

complexity of the bidding documentation will all be influential factors.

The degree to which legal or other expertise needs to be brought in will also need to

be considered.

It is proposed to remove this criteria as this will need to be reviewed before work is

undertaken on the project bid or tender – is it worth it? Can we do it? Etc.

Quality of Information Information can be variable and therefore can limit the ability to make informed judgements. Awareness of the extent of work required, TUPE implications, potential additional costs and other risks will improve South Essex Property Services ability to make a sound judgement as to whether a project is available and therefore reduce exposure to risk. Suggested scoring

Score Costs Work content

1

Clear breakdown of likely costs based

on current expenditure

elsewhere in the business

Work or service content clearly

defined and understood; similar to, or extensions of, existing business

3

Likely costs are based on good benchmarked

information and /or sound quotations

Further clarification or role definition required later in

bid/tender process OR Taking over existing service provider who will

provide basic information

5

Costs are variable, difficult to quantify

or subjecct to market variations

when contract likely to be underway.

Ambiguous work content based on

incomplete or inaccurate

information or data;

Delegation arrangements Delegated authority for progressing New Business projects is based on the overall

risk value for the project concerned ranging from a score of 1 to 3 with 1

representing the lowest risk. Only whole numbers are used in the Risk Assessment

Matrix. Progressing in this context means entering into a formal arrangement,

reflected in a contract or service level agreement.

The delegation parameters are as follows:

17


Overall

Project Risk

Level

Potential

Turnover

over life of

project

Authority Required

Low (1.4 or

less)

< £100,000 Chief Executive – in discussion with the Chair

Medium (1.5

to 2.4)

< £100,000 to

£249,999 Investment and New Business Committee

High (2.5 to

3)

>£250,000 The Board

In addition to the risk scoring the following criteria should be observed and proposals

should be referred to the Parents New Business Committee for direction where:

The potential project turnover is expected to be in excess of £100,000

Any level of Capital or revenue subsidy is required

There are potential TUPE implications

A score in excess of 1 is achieved for risks associated with Strategic fit or Exit Strategy.

Where the potential turnover is anticipated to be in excess of £250,000 the proposal

must be discussed and agreed by the SEPS and SEH Board as part of the SEH

governance arrangements.

The opportunity will be taken to further develop the policy as progresses. This will enable South Essex Property Services to adopt an iterative approach and is appropriate given the scale of new business activity currently being undertaken. Given the new scoring, the overall risk level is suggested below.

Overall Project Scores Low 2.3 or Less

Medium 2.4 to 2.9

High 3.0 and above

While it could be argued that if all the scores are 3 indicating medium risk, the overall

medium score ought to be higher than that shown, the combination of so many

medium risks does take the overall risk to a new level.

18


Another point is the relevance of the potential turnover. It can be argued that it is not

the size of the turnover that should govern the authority level but the level of financial

support required to get the project off the ground.

I would also recommend that if ANY risk is scored as 5, that it should be referred to

the parent Board.

A suggested delegation table is:

Overall

Project Risk

Level

Financial

support

required

Authority Required

Low (2.3 or

less)

< £100,000 Chief Executive in discussion with the Business

Development Director and the SMT

Medium (2.4-

2.9)

< £100,000 to

£249,999 New Business Committee in agreement with the

SEPS Board (where appropriate)

High (3.0 and

above, plus

any with an

individual risk

of a score of

5)

>£250,000

Or if borrowing

from external

resources is

required.

SEH Board

Appendix - Proposed Risk Matrix

19

Appendix A to Appendix 2 to Agenda Item 5

Example

High Med Low/No Risk

5 3 1

When scoring elements only use 5,3 or 1

Zero or part scores cannot be used

Attribute Score Weighting Project Score

Capital investment required 1 20% 0.20

Revenue subsidy required 3 25% 0.75

Fit with existing services 1 25% 0.25

Exit strategy 5 15% 0.75

Info. quality 3 15% 0.45

TOTAL 13 100% 2.40

Overall Project Scores

Low 2.3 or Less

Medium 2.4 to 2.9

High 3.0 and above

Risk Assessment / Matrix

Scoring Levels

20

Appendix A to Appendix

2 to Agenda Item 5


1 Under £100kWritten off in lifetime of

contract

3

Over £100k and

funded from internal

reserves

Permanent acquisition

of asset such as

property

5

Borrowing needed from

source external to

SEH/SEPS

Asset to be disposed of

at end of contract at

less than purchase price


1 Under £50kWritten off in first year of

contract

3Over £50k and under

£100k

Written off over initial life

of contract

5 Over £100k

Requires a contract

extension or write-off at

end of contract

ScoreCurrent service

deliveryCurrent stratgic direction Geography

1

Services currently

delivered by South

Essex Homes/SEPS

Falls within the current

Business Plan

Can be undertaken from

existing premises

3

Includes an extention

of services currently

delivered by South

Essex Homes/SEPS

Falls mainly within

current Business Plan

but requires some minor

changes to be agreed.

Requires new

accommodation within

Southend Borough

5

South Essex

Homes/SEPS does not

curently provide this

service

Is currently outside the

Business Plan

Requires new

accommodation outside

Southend Borough but

within Essex

Score Contract or project exit Cost recovery Knock-on effects of exit

1

Clearly defined

timescale or contained

piece of work within

which all costs and

charges can be levied

and recovered

All costs incuured during

delivery and paid for at

the time OR Start up

and/or mobilisation

costs claimed at

commencement

None or minimal

3

Defined timescale or

scope of work that can

be ended by either

party

Start up and

mobilisation costs

recovered over period

of contract not

recovered if contract

terminated ahead of

schedule OR Payments

based on performance

Unsold stock OR

Contracted staff to

remunerate OR

Disruptive effects to main

business OR Increase in

Central overheads as a

result exceeds budget

contingency

5

Vague contract terms

giving uncertainty of

exit mechanisms for

both parties

Onerous penalties for

non-performance OR

Unable to recover high

start up and mobilisation

costs if terminated early.

Reputational damage to

South Essex Homes or

SBC OR Disruptive to

core business or service

delivery

Score Costs Work content

1

Clear breakdown of

likely costs based on

current expenditure

elsewhere in the

business

Work or service content

clearly defined and

understood; similar to,

or extensions of,

existing business

3

Likely costs are based

on good benchmarked

information and /or

sound quotations

Further clarification or

role definition required

later in bid/tender

process OR Taking over

existing service provider

who will provide basic

information

5

Costs are variable,

difficult to quantify or

subjecct to market

variations when

contract likely to be

underway.

Ambiguous work

content based on

incomplete or

inaccurate information

or data;

21


Minutes of Audit Committee Meeting

Date: 22nd February, 2017

Time: 5:30pm

Room 4.03, Civic Centre

Present: David Joyce - Chair of the Audit Committee; Michael Oxley; Catherine Haycock; In Attendance: David Lincoln – Director of Finance; Beverley Gallacher – Company Secretary; Daniel Lyons – Business Accountant; Tasmin Arthurton – Corporate Services Officer; Elaine Allen – Audit Manager SBC; Linda Everard – Head of Internal Audit; Tim O’Connor - Scrutton Bland; Daniel Helps - Fraud SBC (Agenda Item 1-6); Action

1. 1.1

Welcome and Introductions DJ welcomed Tim O’Connor - Scrutton Bland and Daniel Helps - Southend Borough Council to the meeting.

2. 2.1

Apologies for Absence Apologies were received from Roger Eastwood and David Burzotta.

3. 3.1

Declarations of Interest DJ confirmed his position as Director of Finance of Christian Action Group and as a Board Member representative on the South Essex Property Services Board.

Agenda Item No.

8

22

4. 4.1

Report of Whistle Blowing Incidences BG provided an update on the on-going fraud allegation.

5. 5.1 5.2 5.2.1 5.2.2 5.2.3 5.2.4 5.2.5 5.2.6 5.2.6 5.2.7

Minutes and Matters Arising from the Meeting held on 24th

October 2016 The minutes were agreed as a true and accurate record of the meeting. All matters arising from the previous meeting were addressed in the timescale agreed. The Committee requested that evidence of these be collated and put into Dropbox for reference. Minute 5.2.8 - 10.2 “DJ requested confirmation of the impact on South Essex Homes resources being spent on SEPS” (DL) - TA confirmed electronically to whole Board 30/11/16

Minute 7.3 - In relation to paragraph 5.1, MO requested that the word ‘substantially’ required clarification. (DL) - TA sent clarification electronically 01/12/16

Minute 7.5 - DJ asked for reassurance that in relation to the Right to Buy report, SEH would be compliant with regulation by 31st October deadline. DL agreed to send a note to confirm. (DL) - TA confirmed electronically 14/11/16 Minute 7.7 - Following discussion of Audit Committee Members’ involvement in the setting of the annual audit plan, which they would prefer to have more influence over, LE agreed to circulate the standard when the plan is set for 2017/18. (LE) - Contained at Agenda Item 12

Minute 7.8 - BG agreed to re-send the Audit Committee Terms of Reference to members. (BG) - Circulated electronically on 15/02/17 by TA

Minute 9.4 - DL agreed to share ‘pay to stay’ workflow with members once drawn up and guidance becomes available. (DL) - TA email 30/11/16 confirming scrapping of PTS element of welfare reform so not necessary

Minute 9.5 - In relation to Appendix 2, as per request of the Committee, DL agreed to make changes to show variances reflected as positive figures. (DL) - Contained at Agenda Item 10

Minute 9.6 - In relation to Appendix 5, the Committee requested a variance column between forecasts. (DL) - Contained at Agenda Item 10

TA

23

5.2.8 5.2.9 5.2.10 5.2.11

Minute 10.3 - BG agreed to share the Operational Risk Register with the Committee. (BG)

- TA sent electronically 25/10/16

Minute 12.1 - DL gave an overview of the report and advised that he would be organising an away day session with the Board to discuss the VFM Strategy and the Business Plan in December. (DL) - Took place 22

nd December 2016

Minute 12.2 - The Committee requested that more social/environmental factors be included. DL agreed to speak with the Community Development team, regarding projects such as the hub and discuss what else we could include. DL to include a paragraph on social/environmental factors in the strategy and circulate an updated version to the Committee before it is approved by the Board. (DL) - Amended and contained within Value for Money Strategy

Minute 12.5 - DJ queried whether SEH holds a liability register (financial commitments). DL and DLy agreed to ascertain any liabilities and report anything back electronically to the Committee. (DLy) - Sent electronically 16/02/17

6. 6.1 6.2

i)

Counter Fraud and Investigation Directorate Performance Report Daniel Helps gave an overview of the report and attached case summary. Recommendation The Audit Committee noted the report.

7. 7.1 7.2 7.3 7.4 7.5

Terms of Reference and Forward Planner BG gave an overview of the report and appendices, and assured the Committee that the Forward Plan for 2017/18 is a working model which can be amended if required. LE advised that there had been a delay to the annual review of the Fraud policies and agreed to update the Committee on fraud policies at the next meeting in May to discuss framework. It was clarified that the Forward Plan, “the Annual Governance Statement” should be amended to ‘yes’ to be referred to the Board. Recommendations

LE TA

24

i)

ii)

iii)

The Audit Committee approved the updated Terms of Reference and recommends them to the Board for approval. The Audit Committee approved the Forward Plan for 2017/18. The Audit Committee noted that there are no exceptions to actions in the Audit Committee Performance Assessment, and no exceptions in the evaluation of the effectiveness of the Audit Committee.

8. 8.1 8.2

i)

Financial Accounting Policies

3.2.8 – the Auditors will amend the wording to net book value and fair value under impairment of fixed assets. Recommendation

The Audit Committee noted the Accounting Policies currently in force and endorsed them.

9. 9.1 9.2 9.3 9.4 9.5 9.6

i)

Risk Management Exception Report BG gave an overview of the report and asked members to disregard paragraph 3.3 which had been included erroneously. The Committee requested that the completed actions under Stage 3 of SEHRISK04 be listed under Stage 2 instead. It was noted that the target risk score under SEHRISK07 Stage 3 should be reduced 8 in line with the mitigated risk score. The Committee agreed to keep SEHRISK09’ as Strategic and not demote it to the Operational Risk Register. It was noted that the target risk score under SEHRISK10 Stage 3 should be 5 as no actions have been identified in line with the mitigated risk score. Recommendations The Audit Committee noted the actions contained in the Internal Audit report on Risk Management contained at Agenda Item 12 which will be implemented in target time.

25

ii)

iii)

The Audit Committee agreed to the proposal from SMT to reduce the mitigated score on the risks ‘SEHRISK03’ and ‘SEHRISK06’. The Audit Committee agreed to amend the wording of ‘SEHRISK02’.

10. 10.1 10.2 10.3

i)

ii)

iii)

iv)

Assurance Report DLy gave an overview of the report. The Audit Committee received an update on the current contracts with Kiers for repairs and Aarons for Gas. The Committee noted that the action plan in place with Aarons was not on track. Recommendations The Audit Committee reviewed and considered the Company’s financial performance based on information as at 31st January 2017. The Audit Committee noted the exceptions for Key Performance Indicators as at 31st January 2017. The Audit Committee noted the benchmarking performance for Key Performance and Value for Money Indicators for 2015/16 data. The Audit Committee noted and commented on the targets currently set for 2017/18 performance, subject to on-going dialogue with Southend Borough Council and further recommendation to the Board.

11. 11.1 11.2

i)

Budget Proposals - 2017/18 DL gave an overview of the report and asked members whether they would be happy to only receive the pages ‘Service Summary’, ‘Expenditure Summary’ and ‘ Income and Expenditure Summary’. The Committee agreed to this proposal. Recommendations The Audit Committee agreed the Management Fee of £5,827k

DLy

26

ii)

iii)

iv)

and further recommends it to the Board. The Audit Committee agreed the Service Charge Income of £3,395 and further recommends it to the Board. The Audit Committee agreed the proposed Operating Budget of £9,741k for the company, set out in Appendix 1 and further recommends it to the Board. The Audit Committee agreed that the proposed items of one off expenditure are met from balances, amounting to £114,500 and further recommends this to the Board.

12a. 12.1 12.2

i)

Internal Audit Summary Progress Report LE clarified that the Shared Service Board referred to in paragraph 5.6 would have representatives from Southend Borough Council, Castle Point Borough Council, South Essex Homes, Thurrock Council as well as the Head of Internal Audit (SBC) and Group Manager for Counter Fraud & Investigation (Thurrock). Recommendation The Audit Committee notes the report.

12b. 12.1

i)

Internal Audit Charter, Strategy and Audit Plan for 2017/18 Recommendation The Audit Committee approves (but not directs) the Charter, Strategy and Audit Plan proposed for 2017/18.

13. 13.1 13.2

i)

External Audit Strategy 2016/17 The Committee requested a covering report be produced for the next occurrence. Recommendation The Audit Committee noted the report.

14. Date of Next Meeting – 17th May, 2017

15. The meeting closed at 19:35

27



to

The Board

on

15th March, 2017

Report prepared by: Beverley Gallacher

Tel: 01702 212649

Audit Committee Terms of Reference


1 Purpose of Report 1.1 To obtain agreement from the Board in relation to the Terms of Reference

reviewed by the Audit Committee.

2 Recommendations 2.1 2.1.1

The Board are recommended to:- Agree the updated Audit Committee Terms of Reference as recommended

by them.

3 Background 3.1

The Audit Committee undertook its annual review of its Terms of Reference and recommend he inclusion of the ethical governance framework assurance requirements in 2017/18.


4.1

All equality and diversity issues identified from the proposals contained in this report have been considered and are in accordance with the South Essex Homes Equality and Diversity Policy.

5 Risk 5.1

All risks have been considered by the Audit Committee in advance of being recommended to the Board for approval.

Agenda Item No.

Agenda Item No.

8

28

6 Financial Implications 6.1 All Financial Implications have been considered by the Audit Committee in

advance of being recommended to the Board for approval. 7

Background Papers

7.1 None.

8 Appendices 8.1

Appendix 1 - Audit Committee Terms of Reference (with track changes)

29


SOUTH ESSEX HOMES LIMITED

Audit Committee

Terms of Reference

The Committee will at all times uphold the organisation’s aims, values, objectives and policies.

Statement of Purpose - The Board of Directors has delegated responsibility to the Committee:

to provide independent assurance of the adequacy of the risk management framework and the associated control environment.

to provide independent scrutiny of the organisation’s governance, financial and non-financial performance to the extent that it affects the organisation’s exposure to risk and weakens the control environment.

to oversee the financial reporting arrangements.

The duties of the Committee shall include the following:

Regulatory Framework

To review Financial Regulations and Scheme of Delegation and arrangements to secure value for money and review effectiveness of these arrangements

To monitor the effective development and operation of risk management and corporate governance in the company, agreeing necessary actions to ensure compliance with good practice

To scrutinise, on an annual basis, the performance management framework and Risk Management Framework to ensure that it is fit for purpose and enables the Board to effectively challenge

To monitor progress in addressing risk related issues reported to the Committee

To monitor the company policies on Whistleblowing, Anti-Fraud and Corruption and Money Laundering and the complaints process and review the assessment of fraud risks

To review changes in and compliance with accounting policies and practices

To scrutinise and approve the Treasury Management Strategy and Policies and it operation

30

To review the Annual Governance Statement prior to approval and consider whether it properly reflects the risk environment and supporting assurances, taking into account internal audit’s opinion on the overall adequacy and effectiveness of the Company’s framework of governance, risk management and control

To undertake a wider role leading on the promotion of high standards of conduct as part of the governance arrangements throughout the organisation.

To scrutinise the ethical governance framework and ensure it is reflected in business practices throughout the organisation

External Audit and Financial Statements

To recommend to the Board the appointment of the External Auditor and their fees.

To enhance the effectiveness of the relationship with External Audit.

To discuss with the External Auditors, before the audit commences, the nature and scope of the audit.

To review External Audit reports, and receive the annual audit letter.

To monitor the implementation of external audit recommendations.

To review the annual financial statements before submission to the Board, focusing particularly on:

The Directors report and the Governance Assurance Statement

The status and position of service level agreements

Major judgemental areas

Significant adjustments resulting from the audit

Review and scrutinise the company’s quarterly management accounts and report to the Board

Internal Audit

To appoint the Internal Auditor, monitor performance against contract/SLA and approve the Charter, Strategy and Audit Plan

To review and monitor delivery of the Audit Plan, consider performance against agreed performance measures as well as findings from individual audits undertaken and approve any significant changes and associated resource implications

To monitor the implementation recommendations arising from internal audit reports

To consider the Head of Internal Audit’s annual report and opinion and its implications for the Annual Governance Statement

31

To consider reports from the Head of Internal Audit on internal audit’s performance during the year, including the performance of external providers of internal audit services.

To contribute to the Quality Assurance and Improvement Plan and in particular, to the external quality assessment of internal audit that takes place at least once every five years.

General Responsibilities

Where other committees’ are responsible for providing assurance over the operation of key company business management processes, the Audit Committee’s remit is to gain appropriate assurance that this work is being done properly and that action taken to improve such arrangements is being taken as required.

To maintain a work programme that is reviewed annually and agreed by the Board, which provides the outline for the Audit Committee agenda for each meeting. It should demonstrate that the Committee is receiving sufficient and appropriate information to discharge its responsibilities.

Ensure effective communication with the Board. The Chair of the committee will present the minutes of each meeting to the Board to provide information about actions agreed, highlight any matters that need to be brought to its attention and respond to any questions raised

To meet with the Resident Scrutiny Panel annually to discuss the work programme for the oncoming year.

To receive recommendations from the Resident Scrutiny Panel in relation to reviews undertaken during the year for agreement or information.

To monitor and review the performance and financial position of the Commercial Subsidiary at each meeting.

Act on any specific task assigned by the Board.

The Committee will produce an annual statement of actions for inclusion in the Board’s Annual Report. update the Board on its actions at each Board meeting. At the same time the committee will report to the Board on the effectiveness of its Terms of Reference and recommend any changes for the Board’s agreement.

How the committee will operate

The Committee is authorised to seek any information it requires from any employee and all employees are directed to co-operate with any request made by the Committee.

The Committee is authorised by the Board to obtain outside legal or other independent professional advice and to secure the attendance of the outsiders with relevant experience and expertise if it considers this necessary.

The minutes of the Audit Committee meetings shall be formally recorded and submitted to the Board. The Chair of the Audit Committee shall, at their discretion, report any other urgent and/or relevant matters to the Chair and/or Board.

32

The Committee shall be appointed by the Board from amongst the Board Members (with the exception of the Chair) and shall consist of not less than four members.

The Board shall appoint the Chair of the Committee.

The Director of Finance and the Head of Internal Audit shall normally attend meetings and when required the External Auditors. All other Board Directors will have the right to attend at their discretion, without the right to vote. The Chair of the Board and the Chief Executive may also be required to attend at the invitation of the Audit Committee.

The Meeting will normally consist of a Part One and a Part Two. Attendance at Part One will include members of the Audit Committee and representatives, and as appropriate, representatives of internal and external audit. Part Two will be for specific discussion between the Audit Committee and the company’s Auditors. Staff will not Attend Part Two of the meeting.

Frequency of Meetings: Minimum of 4 per year

Support to the Committee: Corporate Services Manager Company Secretary

Membership: Minimum of 4 Board Members.

Attendees: Director of Finance, External Auditors and Internal Auditors

Quorum: 2

Reports to the Board

33



To

The Board

On

15th March 2017

Report prepared by: Daniel Lyons

Tel: 01702 212605

Company Assurance Report


1 Purpose of Report 1.1 To provide the Board with a high level statement of assurances relating to the

financial performance, corporate compliance statement and health and safety position of the Company.

2 Recommendations 2.1 2.1.1 2.1.2 2.1.3

That Board are recommended to :- Note the update provided on financial information as at February, 2017. Note the update provided on Health and Safety as detailed in Appendix 1. Note the update provided on Compliance provided at Appendix 2.

3 Financial Update 3.1 3.2

Introduction This report sets out the actual expenditure on the operating budget and revenue repairs budget to 28th February, 2017.

Agenda Item No.

Agenda Item No.

9

34

3.3 Expenditure for 2016/17

Description

Budget for

year £000

Budget to 28th

February £000

Actuals at 28th

February £000

Variance

£000

Turnover 9,610 8,817 8,952 135

Operating costs & Interest 9,750 8,545 8,128 417

Profit / (Loss) (140) 272 824 552

The Revenue Repairs Budget

4,736 4,192 3,793 399

The Capital Programme 4,871 4,745 3,928 817

3.4 3.4.1 3.4.2 3.4.3 3.4.4

The Operating Budget The main variances on The Operating Budget to date are detailed below; Income from External Sources £69k We are expecting to exceed budgeted income in this area. This is primarily due to the Women's Refuge income being higher than expected for the year due to backdated charge relating to previous years. Employees - £59k under spend Currently we are expecting the employee budget to be around £4k overspent for the year. Although we have picked up extra costs on the SHO accommodation there have been under spends on other employee budgets which have offset this extra cost to some degree. A project is currently underway to re-let the SHO accommodation and so we should see reduced costs here in future years. Utility Costs £173k under spend The utilities budgets are currently under spent, the year-end position here will depend on there being no prolonged periods of cold weather during the final month of the year which could increase the cost of gas in sheltered schemes. Any under spend is earmarked to offset against reduced income in future years, because of the annual contracts we have in place the likely increase in price due to the falling pound will not impact us in the current financial year. Supplies and Services £127k under spend There is a significant amount of under spend in this area. The Supplies and Services budget is made up of a large number of small departmental items but also includes the cost of ICT which falls outside of the SLA with Southend Borough Council. We are expecting an under spend of around £70k on ICT costs alone due to one off projects being delayed due to the ICT review taking place in 2017/18 (under the Core Projects agreed by the Board).

35

3.4.5

Forecast After taking into account the earmarked underspend on utilities and the contribution to the pension fund reserve the forecasted underspend will be in the region of £30,000 to £50,000.

3.5

Revenue Repairs

3.5.1

The Revenue Repairs Budget is under spent by £399k. This under spend is attributable to lower spend on Planned & Cyclical projects due to contingency allowances and later than anticipated expenditure (£234k). The Voids Budget is underspent due to lower numbers of voids and reduced average costs (£168k).

3.6

Capital Programme

3.6.1 3.6.2 3.6.3

There is an under spend of £817k on the Capital Programme. Decent Homes works have been reviewed to reflect life expired component replacements. We have also deferred the installation of 2 communal boilers until 2017/18. Phase 2 of the Block upgrade project at Saxon Gardens has now started. We are anticipating a small overspend on the Rewiring Budget due to health and safety issues. All other Capital projects for 2016/17 are programmed to be completed by 31st March 2017. Expenditure from the Sheltered Housing Remodelling Budget is to be used in conjunction with the Sheltered Housing Review.

4

Health and Safety Exceptions (Appendix 1)

4.1 As set out in the Health and Safety Update report in Appendix 1, the Board are asked to note there are no exceptions up to 28th February, 2017.

5

Changes in Accounting Polices

5.1 The Audit Committee at its meeting in February 2017 noted and endorsed the Accounting Policies currently in place.

6

Corporate Compliance Position

6.1 All programmes of work and actions to meet legislative compliance are on track for 2016/17. At present there are no exceptions to be reported and all elements of the Corporate Compliance Position Statement comply. See Appendix 2.

36

7

Diversity and Equality Opportunities

7.1

There are no direct Equality and Diversity implications arising from this report.

8

Financial Implications

8.1 The financial implications are incorporated in the body of the report. 9 Background Papers 9.1 None

10 Appendices 10.1 10.2

Appendix 1 – Health and Safety Update Report Appendix 2 – Corporate Compliance Position Statement

37


Health and Safety Update January 2017 to February 2017 Health and Safety Training Completed for 2017 Lone Worker and Potential Risk Register Training for staff on the 3rd Floor at the Civic Centre

Annual refresher Training completed for 15 members of staff Fire Safety Awareness Training for staff 2 staff attended training Controls of Substances Hazardous to Health (COSHH) and Personal Protective Equipment (PPE) Training 2 staff attended training Caretaker and Cleaner Health and Safety Awareness Refresher Training including

Fire Safety Awareness

Manual handling

Lone Working

COSHH (Controls of Substances Hazardous to Health)

Sharps. Caretakers 21 Cleaners 9 Office staff / Team Leaders 3 3 members of staff missed the training due to sickness / annual leave 5 Hostel managers Health and Safety Awareness Refresher Training including

Fire Safety Awareness

Lone Working

DSE (Display Screen Equipment)

Sharps. SBC Health and Safety Training completed for 2017 1 Health and Safety Awareness Training course including Manual Handling and Display Screen Equipment 1 Risk Assessment Training course Inspections/Assessments/Audits completed for 2017

Health, Safety and Fire Workplace Inspections Update in Corporate Compliance Position Statement

Fire Audits and Fire Inspections completed by the Fire Service for 2017 The Fire Service will now only inspect / audit buildings over 10 floors, which will include all our Tower Blocks but not include Mornington, Riverstone, Barringtons etc.

Update in Corporate Compliance Position Statement

Estate Walkabouts completed for 2017 80 Estate walkabouts are scheduled for 2017, KS intends attending 50% of the scheduled estates walkabouts.

Workplace risk Assessments completed for 2017 4 DSE display screen Equipment risk assessment including1 home visit

38


2 Stress risk assessments.

South Essex Homes Health and Safety Policies and procedures

KS has reviewed all South Essex Homes Health and Safety Policies and Procedures for 2017

Reviewed the Potential Risk Register KS has completed a 6 monthly review of the Potential Risk Register

Contractors - Health and Safety spot check inspections completed for 2017 2 Health and Safety spot check inspections have been completed.

Health and Safety Quarterly Meeting – January 2017 Discussed Accident, Incidents and Near Misses Reviewed Accidents Reviewed Health and Safety Training and evaluation sheets Reviewed workplace risk assessments completed

Major Accident/ Incident Investigations completed for 2017

None

South Essex Property Services

No actions completed

Castle Point Completed Fire Risk Assessments and Health and Safety Inspections for 2016 at Castle point.

Sheltered Housing Schemes (SHS) KS is completing a review of the DSE (Display Screen Equipment) in SHS offices.

Meetings attended as Health and Safety Advisor in 2017 Health and Safety Quarterly Meeting Team Leaders Property Services Staff Forum CMG False Fire Alarm Meeting

Other Information

Next 3 year Health and Safety action plan 2015 - 2018, based on HSG65, is being implemented.

Kerry Sinclair CMIOSH Regulation Compliance Officer February 2017

39


Corporate Compliance Position Statement

28th February 2017

Key Regulations

List of Control measures, South Essex Homes, has in place in order to comply with Health and Safety Legislation.

The Regulatory Reform (Fire Safety) Order 2005 BS 5839: Fire detection and Fire alarm systems for buildings – Part 1: Code of Practice for design, Installation, commissioning and maintenance. BS 5306-8:2012

Fire Alarm systems, Weekly fire alarm call point tests are carried out in Sheltered Housing Schemes, Homeless Hostels and Women’s Domestic Violence Refuge. Fire alarm systems are serviced and maintained by specialist contractor. The full fire alarm wiring is tested at the beginning of a new contract (April 2016). This was carried out in April 2016. The systems themselves are tested and checked four times a year April, July, October and January 2017. This included fire doors being serviced and maintained as part of the fire alarm service contract. Fire evacuation drills are completed in all Sheltered Housing Schemes every 3 months Fire extinguishers and fire blankets are annually serviced and maintained in accordance with BS 5306 Mains operated smoke and heat detectors are annually serviced and maintained as part of the gas servicing contract. Fire Risk Assessments completed on all South Essex Homes properties and annually reviewed. Annual Fire Audits completed by the Fire Safety Officer on all Sheltered Housing Schemes and Tower Blocks. The schedule for fire risk assessments for 2017 will affect 22 Sheltered Housing Schemes (SHS), 13 Tower Blocks (TB), 9 Hostels (H), 149 medium and low rise blocks (B) 85 Others (O). A total of 278 Fire Risk Assessments. All blocks had their fire risk assessment revised from the calendar year 2015. Progress so far for 2017 up to 28th February 2017:- SHC = 13 completed TB = 1 completed H = 2 Completed B= 5 completed O = 0 completed

40


South Essex Homes complies

Electricity at Work Reg. 1989 IET Wiring Regulations 2008: BS 7671 BS 5266 Emergency lighting. Code of Practice for the emergency escape lighting of premises

Mains electrical systems periodic test certificate. 5 yearly Programme Annual Portable Appliance Testing (PAT Testing): Annual programme Emergency Lighting testing: Annual programme

Information regarding Electrical Periodic Testing - Borough wide.

Approximate number of SEH properties – 6,093

Start of contract: Mid-June 2016 end date 31st March 2021

Domestic properties tested up year to date = 794 PAT inspection and testing: This is an annual check where appliances owned by South Essex Homes are tested and inspected. This work is due to start in December 2016 and is completed in full. Escape / Emergency Lighting: An annual operational test of all systems is carried out in April, followed by 11 monthly service visits.


Legionnaires Legionnaires Disease, The Control of Legionella Bacteria in water systems. Approved Code of Practice and Guidance (L8)

Risk assessment for every sheltered scheme and homeless hostel are undertaken every 2 years. The existing contract started in 2014 and ends in 2018. Water samples are taken every quarter and analysed and results stored on a data base. Water temperatures are taken at each of the 22 sheltered schemes each month and all remedial works carried out as required. At the high rise blocks South Essex Homes currently sample and test for Legionella every six months. To date we have had no adverse samples. The contractor concerned is Northumbrian Water Scientific Services (NWG Scientific Services). This affects 1369 flats. South Essex Homes complies

Control of Asbestos Reg. 2012 (CAR)

South Essex Homes carry out Asbestos Management Surveys to a

number of properties annually to comply with current legislation.

Steps are taken to enter the ‘difficult access’ properties by working

closely with the Tenancy Services Team.

Two contractors are employed with regards the asbestos regime.

One undertakes the test, inspection and analysis while the other is

licenced for Asbestos removal and Waste Carrying.


The Lifts Reg. 1997

The lifts are surveyed by the Councils Insurers (ALLIANZ) every six months and certificates of compliance are issued. At the time of the six month inspection the inspector will advise whether any

41


supplementary tests are required. All comments and recommendations made by the insurers are passed to South Essex Homes technical staff, who forward said reports to the lift maintenance contractor for action and where necessary for quotes. The Lift Contractor undertakes monthly inspections and maintenance services to each lift in accordance with a service schedule. The inspection is carried out by a competent person who will detect defects or weaknesses and asses the safety and continued safe use of the lifts. South Essex Homes complies

Gas Safety (Installation and Use) Reg. 1998

South Essex Homes complies with the legal obligation to carry out an annual gas safety check in all properties with Council owned gas appliances. Annual gas safety certificates for gas boiler / appliances are issued by our contractor and said certificate (CP12) are recorded on our data system. Remedial works are actioned by the contractor as part of the comprehensive contact. South Essex Homes undertakes with the gas servicing contractor a

ten month servicing programme for all landlord gas appliances. By

undertaking the programme on a ten month cycle each property has

its annual safety check at least within the required twelve months.

At April 2016 4720 properties required an annual check.

As 5th March 2017 5073 safety checks were undertaken. Target for

year end is 5664

All properties currently have a valid LGSR.


Construction Construction (Design and Management) Reg. 2015

This regulation applies to capital and major works contacts and is managed “in house” by the South Essex Homes property team. South Essex Homes complies

42


Report of the Group Manager Housing Services

to

The Board

on

15th March 2017

Report prepared by: Traci Dixon

Tel: 01702 212625

Careline Service - Quality Assurance Review Outcome


1 Purpose of Report 1.1 To advise the Board of the outcome of the review of the Quality

Assurance Review of the Careline Service carried out by Campbell Tickell.

2 Recommendations 2.1 2.2

The Board note the Executive Summary taken from the Campbell Tickell

Quality Assurance review of the Careline Service.

The Board note the action plan based on the observations and

recommendations made in the report, and that the action plan will be

monitored and updated by the Operational Management Team (OMT) and

any exceptions reported to the Senior Management Team (SMT).

3 3.1 3.2 3.3 3.4

Background As part of its strategic business planning process, the Board identified five corporate projects to be undertaken, which are critical to the organisation. The Careline Service was one of those five corporate projects. Campbell Tickell were commissioned as part of the quality assurance exercise to carry out a market appraisal of the Telecare sector to assist South Essex Homes in developing a five year plan for growth. The brief also included a review of the quality and effectiveness of the current service. The Review included interviewing front line staff, managers of the area and

some service users. Prior to the on-site visits being carried out, Campbell

Tickell were provided with background information to assist in the desk top

exercise.

Campbell Tickell completed a market appraisal of the community alarm

Agenda Item No.

Agenda Item No.

10

43

3.5 3.6 3.7 3.8 3.9

service, reviewing the quality and effectiveness of the service and assessing the potential for growth.

The purpose of review was to have an independent perspective of how we

deliver our services and provide an impartial challenge to current thinking

and practice and constructively and positively help the organisation to move

into a more commercial market.

The review established that SEH already provides a competitive existing

local service with a good reputation which can be built upon.

Campbell Tickell also established that the Careline Service already delivers

a satisfactory service to its customers and Campbell Tickell recommended

that the good customer satisfaction should be highlighted to assist with

future promotion of the service.

SEH has the scope to expand the range of products available to its existing customers, as well as reaching new customer groups that have been identified.

The final report was produced and submitted in December 2016 and the key findings were analysed in order to produce the Action Plan. (Appendix 1)

4 The Executive Summary (taken from the report)

4.1 4.2 4.3 4.4 4.5

Campbell Tickell found that the Careline service delivers a satisfactory service to its customers. Efficiencies have been made but more can be done to reduce administrative tasks, staffing costs and free up more time for staff to take on increased monitoring contacts at the busiest times of the day. The Careline service’s basic call monitoring service is very competitive in price compared to both local and national organisations and there is scope to grow and increase charges to new customers, but the new service offering will need to reach out to new customers and new customer groups using a wider range of product and service packages. Very few of the national organisations researched by Campbell Tickell have their own mobile responding service and commercial organisations rely on neighbours, family and friends. A mobile responding service would give SEH a local competitive edge. Demographic research has shown that there is a real potential to grow its dispersed alarm service to the local population within Southend, primarily older people and people with a learning disability. The ability to increase charges and offer variable packages to existing customers may be restricted by the fact that the dispersed alarm revenue is currently collected by Southend Borough Council.

44

4.6 4.7 5 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8

The current funding for sheltered housing is under review and it is most likely that both the legacy supporting people funding and the support element of the service charge i.e. Intensive Housing Management are at risk of disappearing by 2019 and will be replaced by another local pot of funding. It is very likely that revenue funding will decrease by 2019 as a result. The Telehealth market is increasingly growing around the country but it is a market in the early stages of its development. There are no obvious commercial market opportunities for social housing providers at this point in time. Summary of Actions Undertaken to Date Since January 2017, letters (including a product information leaflet and a ‘recommend a friend’ incentive) have been sent to current service users, in phases, promoting the new packages available. To date, 2000 letters have been sent to existing customers residing in Council owned Part 1 & 2 sheltered accommodation. So far, we have received over 60 enquiries which we are following up with further information and installations. Letters are now being sent to all other existing service users within the borough (SBC and private), again in a phased way. An advertisement has been produced and has been distributed within the Echo in local areas including Basildon, Castle Point and Southend to commence a marketing campaign for new customers in these areas following the confirmation from Essex County Council of the withdrawal of the Supporting People funding in 2017/18. Internal Promotion Members of SEH staff have been notified of the new products available from Careline via email and the internal staff magazine. Sheltered Housing Officers are helping promote the new packages within the sheltered schemes and are specifically assessing new residents during their first visit to recommend any suitable products/packages.

6 Equality & Diversity 6.1 All equality and diversity issues have been incorporated within the review

and will be included where necessary within the Action Plan.

7 Risk 7.1

Costs have been considerably reduced over the past few years. The service is running at a small deficit at present. However, action is being

45

7.2 7.3

undertaken to increase the customer base and further reduce costs which will minimise our financial risk. Actions derived from this review will need to be actively managed and reported to both the SEH and SEPS Board and SBC on an exception basis to ensure that the service delivery is in line with marketing strategy which supports this area to become a business generating service in the short to medium term. The proposed removal of Supporting People funding has been deferred for 2017/2018 to allow for further detailed consultation with sheltered housing residents. Over the past few years SEH has worked with the Council to reduce the Supporting People funding and it is currently only covering £1.20 per week per customer. The potential impact of the removal of the Supporting People funding has therefore been greatly reduced. The likelihood is that in 2018/2019 residents will be required to fund the £1.20 per week directly.

8 Financial Implications 8.1 8.2 8.3

The Council have agreed an increase of 10% to the Careline service charge for existing clients as at 1st April, 2017. This will help to ensure the service is able to be fully funded and eliminate the deficit funding position which the service has always had. All actions detailed in the body of this report will serve to decrease the deficit over the next 12 month period. Any new customers gained via the marketing strategy will generate an additional minimum income of £148.80 per year for the service (based on the starter package of £12.40 per month). With the confirmation from the Council that Supporting People funding will continue for a further one year period, this will give sufficient time to consult with residents currently receiving Supporting People.

9 Resident Consultation 9.1 A number of service users were consulted as part of the Campbell Tickell

review. At present there has been no further consultation with regard to the outcome of the Careline service review.


11 Appendices

11.1 Appendix 1 - Action Plan

46


Careline 16-18

Careline Action Plan 2016-18

Report Type: Actions Report

Report Author: Hannah Moxsom

Generated on: 10th February 2017

Code & Title CAP 16-18 Careline Action Plan Managed By Beverley Gallacher

Description Marketing Commercial Activities for Careline Progress Bar

Status Icon

Code Title Description Expected Outcome Status Icon Planned start date

Due date Progress bar

Assigned to

CAP01 Review the Careline Service

Consider the Campbell Tickell final report and develop a marketing strategy to grow the service and generate new business.

To produce a marketing strategy to expand the existing Careline service.

03-Jan-2017

31-Mar-2018

Beverley Gallacher; Hannah Moxsom



Assigned to

1.1 Develop Marketing Strategy

Produce a timetable of advertisements, articles and mailshots to advertise and promote the Careline service.

All existing clients contacted. Advertisements placed in local papers. Increase in client base/service provision by 10% and increased income generation.

03-Jan-2017 01-Feb-2017




Assigned to

1.2 Develop Marketing Strategy Benchmarking current service using information from Campbell Tickell.

Service provision and costs meet expectations

and are competitive in the commercial market.

03-Jan-2017 01-Feb-

2017 Beverley Gallacher

Code Title Description Expected Outcome Status Icon Planned Due date Progress Assigned to

47


start date bar

CAP02 Phase 1: To increase the amount of Careline products available

Investigate further Tunstall products and establish which products will be offered under the new Advanced Careline packages.

Increased in the products available to Careline customers.

03-Jan-2017

16-Jan-2017

100% Traci Dixon; Margaret Hutchings



Assigned to

CAP03 Phase 1: Promoting advanced packages

Promoting the new products to Careline’s existing customers

Careline service expanded to existing customers, increase client base and income.

23-Jan-2017

31-Jul-2017

Hannah Moxsom



Assigned to

3.1 Promoting advanced packages to Sheltered Part 2 residents

1000 letters sent to all Sheltered Part 2 existing Careline customers

Increased income generated from existing customers

23-Jan-2017 20-Feb-2017

100% Hannah Moxsom; Joni Pack



Assigned to

3.2 Promoting advanced packages to Part 1 residents

175 letters sent to all Part 1 existing Careline customers


20-Feb-2017 27-Feb-2017




Assigned to

3.3 Promoting advanced package to all other existing Careline users

Approx. 2600 letters to be sent to all other existing Careline customers (excluding SBC Part 1&2)


27-Feb-2017 31-Jul-2017




Assigned to

CAP04 Phase 1: Internal promotion Internal promotion of the Carline service and advanced products within SEH

SEH staff aware of Careline packages and the Marketing Strategy and confident to promote the

23-Jan-2017

31-Jul-2017

Traci Dixon / Margaret Hutchings; Julia Pack/Lynsey Hurd;

48


service during their day to day work.



Assigned to

4.1 Notifying staff of Careline Marketing Strategy

Notifying SEH staff of the Careline Marketing Strategy, service and products available via email and internal staff magazine.

All staff are aware of new packages available and Marketing Strategy and are confident to give

advice and guidance to prospective new clients.

23-Jan-2017

31-Jul-2017

100% Beverley Gallacher; Julia Pac; Lynsey Hurd



Assigned to

4.2 Training SHOs and Careline Staff

Training SHOs and Careline staff in promotion of service and products.

Careline staff and SHOs are aware of new packages and are confident to promote service, give advice and guidance when dealing with enquiries

23-Jan-2017

31-Jul-2017

Traci Dixon; Margaret Hutchings



Assigned to

4.3 Training all other front line staff

Produce a training /promotional video. Train all other front line staff to recognise any support need and promotion of service and products.

Members of staff are aware of the new packages and are confident to promote service and signpost correctly.

06-Mar-2017

31-Jul-2017




Assigned to

CAP05 Phase 2: Promoting the Careline service to attract new customers

Promote the existing Careline service and advanced products to new customers.

The client base of the Careline service increased by attracting new customers and new income generated.

06-Mar-2017

31-Jul-2017


Code Title Description Expected Outcome Status Icon Planned Due date Progress Assigned to

49


start date bar

5.1 Promoting the Careline service to all SBC council tenants

Approx. 4600 letters to be sent to all SBC council residents that are not existing Careline customers

Increased service provision and new income generated.

31-Jul-2017

Hannah Moxsom; Joni Pack



Assigned to

5.2 Promoting the Careline service

to all SBC council tenants

Resident magazine campaign

(Insight)


31-Jul-

2017

Julia Pack; Lynsey

Hurd



Assigned to

5.3 Promoting the Careline Service to other local residents

Researching and targeting other specific groups/geographical areas within the Southend borough


31-Jul-2017

Beverley Gallacher; Hannah Moxsom; Julia Pack; Lynsey Hurd



Assigned to

CAP06 Phase 2: External promotion

SEH website to be updated with advanced product details. Social media promotion and local newspaper /magazine adverts

Promotion of Careline service externally.

23-Jan-2017 31-Jul-2017

50% Julia Pack/Lynsey Hurd



Assigned to

CAP07 Phase 2:Implementation of customer feedback process

Revise the customer satisfaction survey to seek customer feedback from customers that respond to the Marketing Strategy.

Reviewing the responses of customer satisfaction and the effect the service has on

To receive and record customer satisfaction feedback and to meet expectations and need.

03-Jan-2017

31-Mar-2018

Beverley Gallacher; Helen Walker; Hannah Moxsom

50


people’s lives – to then be used for further promotion of service



Assigned to

CAP08 Phase 3: Adult Social Care Telecare service review

To work in partnership with SBC to investigate improvements to the ASC Telecare service

Budget savings and improved processes due to identified efficiencies.

31-Jul-2017

31-March-2018 Beverley Gallacher



Assigned to

CAP9 Phase 3: Review of existing Careline Structure

Review current working practices

Budget savings and improved processes due to identified efficiencies.

31-Jul-2017

31-March-2018

Traci Dixon; Beverley Gallacher;



Assigned to

CAP10 Phase 3: Developing business plan for proposals to other Essex Authorities

Produce a timetable based on market research relating to current providers and reduced supporting people funding. Target those authorities affected by supporting people funding reductions. Look at possible partnership arrangements.

Increased service provision across the county. New income generated. Increased client base.

31-Jul-2017

31-March-2018

Traci Dixon; Beverley Gallacher;

51


Report of Director of Finance to

The Board

on

15th March 2017

Report prepared by: David Lincoln

Tel: 07735 562048

Budget Proposal 2017/18

A Public Item

1 Purpose of Report 1.1 This report sets out the formal proposals in respect of the Management

Fee and operating budget for 2017/18.

2 Recommendations 2.1 2.2 2.3 2.4

To agree Management Fee of £5,827k as recommended by the Audit Committee. To agree the Service Charge Income of £3,395k as recommended by the Audit Committee. To agree the proposed Operating budget of £9,741k as recommended by the Audit Committee. To agree that the proposed items of one off expenditure are met from balances, amounting to £114,500.

3 Background 3.1 3.2 4 4.1

The Budget for 2017/18 is set in line with the Draft Business Plan – Vision 2022 and existing plans and policies set by the Board. The sources of income to finance this are: the Management Fee (set by the Council), service charge income, income from external activities, general income and interest on balances. The Budget must be within the available resources. Management Fee The Cabinet, at its meeting of 19th January 2017 agreed to recommend to the Council:

Agenda Item No.

Agenda Item No.

11

52

5 5.1 6 6.1 7 7.1 7.2 7.3 8

A Management Fee of £5,827k

An average increase in service charges of 1%

The actual cost of heating and lighting The Turnover for 2017/18 The income to support the budget for South Essex Homes is as follows:

Income available to support the Budget

2016/17 £000

2017/18 £000

Core Management Fee 4,720 4,726

SLA and Accommodation charges 1,107 1,101

Total Management Fee 5,827 5,827

Service Charges 3,382 3,395

Income from Commercial Business in support of the budget

269 189

Other Income 121 111

Total 9,599 9,522

Management Fee The management fees, set by the Council, are part of a three year savings programme from 2015 to 2018, whereby SEH had to save £341k over three years. This has been fully achieved primarily through a number of minor restructures that were reported to the Committee in each of the years. Service Charges South Essex Homes have calculated the service charges based on an analysis of the actual costs. Based on this the Council has proposed an average increase in service charges of 1%. The heating charges are the actual costs of heating for each of the individual schemes from 1st November 2015 to 31st October 2016 and allocated to tenants based on floor area.

The costs of service and heating costs included in the budget are fully met by the income generated by the service charges.

Budget Pressures

53

8.1 9 9.1

10 10.1 10.2

11 11.1

The Council set a savings requirement for South Essex Homes for 2017/18 of £50k. In addition to this are the normal budget pressures such as the nationally agreed wage award of 1%, increments and general inflation. These were discussed at the Board away day in December 2016. Pension Fund Triennial Valuation The triennial valuation of the South Essex Homes pension fund was carried out, as of 31st March 2016. It is valued on an “on-going basis” (assuming the fund will continue with active employees). The results have just been received and are as follows:

The funding level is 107%

This will increase the employer contributions by £91,500 which will be offset by the deficit contributions of £120,000

The recommended changes to the contributions to reflect the revaluation will be implemented from 1st April 2017 and are included in the budget.

The Budget The summary of the draft budget is set out in Appendix 1 together with the detailed budget for each service area. The changes between years are itemised under each of the service areas. The budget supports the draft Business Plan – Vision 2022 (see Agenda Item 12). Set out in the table below are the total budget requirements and the resources available to meet this, leaving a budget shortfall of £219k.

Description 2016/17

£ 000 2017/18

£ 000

S.E.H Total Budget Requirement (Appendix 1)

9,739 9,741

Met from:

Management Fee -Core Fee 4,720 4,726

-SLAs & Accommodation 1,107 1,101

Service Charge 3,382 3,395

Commercial Income Support Budget 269 189

Other Income 121 111

Total Income 9,599

9,522

Shortfall 140 219

Budget Shortfall At this point in time there is an overall budget shortfall of £219k. At the Board away-day in December the Board identified five projects to be implemented by officers. Savings to date are set out below:

54

11.2 11.3 12 12.1 12.2 12.3

£ Total savings required 219,000 Savings achieved to date 71,000 Further savings required. 148,000

These savings have not been fully identified as yet and progress on this will be brought to each cycle of the Audit Committee and the Board. Officers are identifying saving in excess of the sum required and, although they cannot all be achieved on 1st April 2018, the cash savings requirement will be achieved in 2017/18. They will be achieved by a combination of minor restructures and re-letting of ex- Wardens’ properties. One off Costs There are a number of one off costs that are required that will enable the Company to be able to work more effectively going forward. These are set out in Appendix 2 for consideration. A key project set by the Board was to review the ICT arrangements to ensure that they are fit for purpose to meet the future needs of S.E.H. Alysium Consulting has been commissioned to carry out this review and will be reporting back to the Board later in the year. At that time it is likely that it will be necessary to seek approval for additional expenditure required to meet outcomes derived from this review. It is proposed that the Board agree to meet the one off costs of £114,500 from balances and to note the work being carried out in respect of the IT review.

13 Financial Implications 13.1 The financial implications are set out in the body of the report.

14 Diversity and Equal Opportunities 14.1 All equality and diversity issues identified from the proposals contained in

this report have been considered and are in accordance with the South Essex Homes Equality and Diversity Policy.

15

Risk

15.1

The key risk for the Company is that a balanced budget has not been achieved. The value of the savings required has been identified and all additional costs have been incorporated into the budget. In addition there is the risk that reduction in budgets will adversely affect services to tenants. Additional items of one off expenditure have been identified to enhance service delivery as well as ensuring that the recommended savings do not adversely affect services.

55

16 16.1 17 17.1 17.2

Background Papers Cabinet report of Southend Borough Council – 19th January 2017 Appendices Appendix 1 - Summary Budget 2017/18 Appendix 2 - List of One off Costs

56


2015/16 Spend Service Area 2016/17 Working Budget 2017/18 Proposed Budget Variance between Budgets Variance between Budgets

£ £ £ £ %

Expenditure

0 Contingency 50,000 50,000 0 0.0%

1,545,573 Company 1,313,577 1,136,271 (177,306) (13.5%)

228,427 Corporate Services 224,954 157,395 (67,560) (30.0%)

32,619 Board 55,046 51,406 (3,640) (6.6%)

665,454 Executive Management Team 609,736 713,774 104,039 17.1%

71,290 Human Resources 130,244 105,965 (24,279) (18.6%)

269,274 Finance 287,606 300,263 12,658 4.4%

436,662 Income Management 487,521 496,637 9,116 1.9%

432,107 Tenancy Services West 365,085 416,643 51,557 14.1%

347,292 Tenancy Services East 358,500 404,558 46,059 12.8%

1,617,009 Caretakers 1,614,633 1,647,426 32,793 2.0%

224,458 ASB Team 152,423 166,109 13,686 9.0%

0 SMAART Team 87,847 94,111 6,264 7.1%

353,000 Community Development Team 344,281 359,306 15,025 4.4%

52,008 Tenants Expenses 38,500 41,700 3,200 8.3%

1,210,996 Sheltered Housing 1,336,758 1,256,323 (80,435) (6.0%)

476,065 Careline 489,759 498,784 9,025 1.8%

395,199 Temporary Accomodation 466,043 478,105 12,063 2.6%

0 Housing Maintenance 434,799 455,616 20,817 4.8%

618,047 Housing Attributes 274,284 291,711 17,427 6.4%

471,255 Housing Improvement 321,508 332,162 10,654 3.3%

321,597 Civic Centre 295,325 287,110 (8,215) (2.8%)

9,768,332 Total Expenditure 9,738,427 9,741,376 2,949 0.0%

Turnover

(9,264,000) Management Fee Income (5,827,000) (5,827,000) 0 0.0%

0 Service Charge Income (3,382,000) (3,395,058) 13,058 0.4%

(72,315) Miscellaneous Income (73,500) (73,800) 300 0.4%

0 Careline Income (8,000) (8,000) 0 0.0%

(64,234) Interest (40,000) (30,000) (10,000) (25.0%)

(300,659) Income from External Activities (268,602) (188,602) (80,000) (29.8%)

(9,701,208) Total Turnover (9,599,102) (9,522,460) (76,642) (0.8%)

67,124 Total Shortfall to be funded from Savings 139,325 218,916

SOUTH ESSEX HOMES LTD

Operating Budget 2017/18

Service Summary

57


Service Area Employees Premises Utility Transport

Legal and

Insurance

Supplies and

Services SLA Costs Total

£ £ £ £ £ £ £ £

Contingency 0 0 0 0 0 50,000 0 50,000

Company 42,400 0 33,650 0 0 176,277 883,944 1,136,271

Corporate Services 129,145 0 500 300 0 27,450 0 157,395

Board 42,106 0 1,500 1,250 2,000 4,550 0 51,406

Executive Management Team 695,327 0 1,800 4,100 0 12,547 0 713,774

Human Resources 91,765 0 0 0 0 14,200 0 105,965

Finance 186,218 0 0 0 74,165 39,880 0 300,263

Income Management 331,639 15,613 250 1,500 42,000 105,635 0 496,637

Tenancy Services West 377,693 7,500 1,400 3,200 3,500 23,350 0 416,643

Tenancy Services East 359,237 20,500 2,000 4,400 3,500 14,921 0 404,558

Caretakers 961,638 422,500 161,475 40,373 0 61,440 0 1,647,426

ASB Team 142,174 9,000 325 1,200 1,000 12,410 0 166,109

SMAART Team 93,236 0 175 400 0 300 0 94,111

Community Development Team 337,906 0 900 3,200 0 17,300 0 359,306

Tenants Expenses 0 0 400 15,600 0 25,700 0 41,700

Sheltered Housing 724,592 3,300 448,581 2,625 0 77,225 0 1,256,323

Careline 461,688 4,874 4,250 5,988 0 21,984 0 498,784

Temporary Accomodation 352,653 15,310 74,918 2,000 0 33,225 0 478,105

Housing Maintenance 445,636 0 2,200 4,330 0 3,450 0 455,616

Housing Attributes 287,051 0 360 700 0 3,600 0 291,711

Housing Improvement 319,782 0 460 2,470 0 9,450 0 332,162

Civic Centre 0 217,000 0 0 0 70,110 0 287,110

Total Expenditure 6,381,887 715,597 735,144 93,636 126,165 805,004 883,944 9,741,376


Expenditure Summary


58


2015/16 Spend Income and Expenditure Analysis 2016/17 Working Budget 2017/18 Proposed Budget Variance between Budgets Variance between Budgets

£ £ £ £ %

Expenditure

5,854,453 Employees 6,142,892 6,381,887 238,995 3.9%

802,551 Premises 707,251 715,597 8,345 1.2%

740,572 Utilities 886,604 735,144 (151,460) (17.1%)

115,435 Transport 85,669 93,636 7,966 9.3%

392,928 Legal and Insurance 120,765 126,165 5,400 4.5%

1,186,360 Supplies and Services 913,585 805,004 (108,581) (11.9%)

676,032 SLA Costs 881,660 883,944 2,284 0.3%

9,768,332 Total Expenditure 9,738,427 9,741,376 2,949 0.0%

Revenue

(9,264,000) Management Fee Income (5,827,000) (5,827,000) 0 0.0%

0 Service Charge Income (3,382,000) (3,395,058) (13,058) 0.4%

(72,315) Miscellaneous Income (73,500) (73,800) (300) 0.4%

0 Careline Income (8,000) (8,000) 0 0.0%

(64,234) Interest (40,000) (30,000) 10,000 (25.0%)

(300,659) Income from External Activities (268,602) (188,602) 80,000 (29.8%)

(9,701,208) Total Revenue (9,599,102) (9,522,460) 76,642 (0.8%)

67,124 Total Shortfall to be funded from Balances 139,325 218,916

Key Reasons for Variances on 2016/17 Budget vs 2017/18 Budget

Employees Pilot of allocations team 51,700

2016/17 Cost of Living Increase 58,300

2017/18 Increments 55,500

2017/18 Cost of Living Increases 56,600

SMT Restructure 16,600

Pension Rate Changes (25,700)

Apprentice Levy 25,000

SHO leased Accomodation 35,000

Removal of one off items in 2016/17 budget (33,350)

Premises Increase in Council tax liability due to change in council policy 13,000

Rebase Civic Centre Rent to correct level (8,200)

Utilities Reduction in Sheltered gas costs (132,400)

Reduction in communal block electricity costs (9,000)

Increase in Water costs for Hostels 10,000

Reduction in telephone costs due to savings on SBC contract (15,900)

Reduction in Mobile Telephone Costs (4,000)

Transport Caretakers Leased vans (lease and fuel etc) 5,800

Tenants Taxi Costs 4,100

Taxis for Hostels residents needing transport to move on 1,000

Mileage (4,100)

Legal and Insurance Tenancy Services Warrant and Legal costs 5,400

Supplies and Services Removal of one off IT costs (73,000)

Removal of one off Hostel furniture costs (17,000)

Service Area Reviews 20,000

DBS checks (4,000)

Combining of Insight with Rent Statements (6,700)

Savings from SNAP magazine (11,800)

Sheltered / Careline printer costs 3,800

Caretakers Equipment Purchases and Cleaning materials 13,000

Interest Reduction in interest income due to reducing balances 10,000

Income from External

Activities Cessation of Womens refuge contract 80,000



Income and Expenditure Summary

59


Description Department One Off Additional Expenditure

Leadership and Organisational Development Human Resources 20,000.00

Continuation of Leadership programme to meet the needs of the new Organisational Development plan

Board Member Recruitment Board 7,000.00

To meet the recruitment of new Board members in 2017/18

Additional finance capacity Senior Management Team 43,500.00

To continue to develop new projects relating to SEPS hosting and the housing company during a transitional period

Estate Services Equipment Estate Services 15,000.00

To enable the processes to be made more efficient and competitive

Re-write of Tenancy Conditions Tenancy Services 9,000.00

The printing and publishing costs of a reworked Tenancy Conditions pack

Service Area Reviews Senior Management Team 20,000.00

Continuation of work with Campbell Tickell to review services

114,500.00

List of One off costs to be met from balances

60


Report of Director of Finance

to

The Board

On

15th

March 2017

Report prepared by: David Lincoln Tel: 07735562048

Vision 2022 Business Plan


1. Purpose of Report 1.1 To bring the Business Plan Vision 2022 to the Board for consideration.

2. Recommendations 2.1 To agree the Vision 2022 Business Plan. 3. Introduction

3.1 3.2 3.3

At the Board awayday in December 2016 the Board reviewed the existing Vision 2020 Business Plan in the light of the changes that have taken place affecting the Company over the past three years. These were primarily:

The extension of the Management Agreement to 2019

The Council transferring part of the Allocations Services across to the Company to manage.

The far closer working relationship with the Council.

The national and local pressures on the supply of housing and in particular social housing

The continuing financial pressures on the Council.

The need for South Essex Homes to reduce its cost base to make itself more competitive to win new business.

The opportunities arising from the town centre redevelopment project

Maintaining performance levels. The main outcome of this meeting was that the Board identified five key projects for the coming year, which are critical for the future of SEH. These will be the primary focus of all staff and the business in the coming year. The key messages from the awayday were that we:

Needed to work collaboratively with the Council to enable it to achieve its goals

Agenda Item No.

Agenda Item No.

12

61

3.4 4. 4.1 4.2 4.3 4.4

Continue to provide services that we were proud of

Ensure the long term sustainability of the Company. Discussions will take place with staff to develop longer term strategic plans to achieve the objectives set out in the Business Plan and these will be presented to the Board for consideration. The Plan The plan has been changed to reflect the discussions with the Board as well as discussions with the senior managers. The strap-line of Working Smarter Together remains, the aims have been simplified and the objectives reduced to avoid duplication. A summary pictorial version of the plan has been produced to help to demonstrate the relationship of all the elements of the plan (Appendix 3). The challenge now will be to get real ownership of all staff of the plan in the same way that they responded to the 2* Audit Commission challenge and Investors in People (IIP) Gold.

5. Diversity and Equal Opportunities 5.1 There are no direct equality issues arising from this report. 6. Risk 6.1 The key risk of not having a Business Plan that drives the direction of the

Company is that focus and direction will be lost. 7. Financial Implications 7.1 There are no direct financial implications arising from the plan. As the plan

progresses then any financial consequences will be brought to the Board. 8. Resident Consultation 8.1 The Southend Tenants & Residents Federation will be consulted once the

plan is agreed. 9. Background Papers 9.1 Southend Borough Council’s HRA Business Plan 10 Appendices 10.1 10.2

Appendix 1 - The Business Plan - Vision 2022 Appendix 2 - The pictorial version of the Plan

62


1

Business Plan 2017 to 2022

Vision 2022

63

http://www.southessexhomes.co.uk/seh/site/index.php


2

Contents

Section

Page

1.0 Introduction

3

2.0 Our Mission

4

3.0 Our Aims

4

4.0 The Influencing Factors

4-7

5.0 Our Objectives

7

6.0 Delivering our Objectives

8-9

7.0 Strategic Projects and Performance Goals

10

8.0 Supporting Our Objectives 10

9.0 Organisational Development 11

10.0 Performance Management 11

11.0 Risk Management 11

12.0 Behaviours 11

13.0

Financial Resources 12

14.0 Appendices 12

64


3

South Essex Homes Business Plan

1.0 Introduction

1.1 South Essex Homes is the management company established in October 2005 by

Southend Borough Council (The Council) to manage the 6,500 homes of the Council’s

rented and leasehold properties. We have made significant progress in improving

services, working with residents and investing in homes over the last 11 years.

1.2 This business plan is about the future. It covers the period from 2017 to 2022 and is

above all intended to be a practical document providing the operating framework for

South Essex Homes over the next five years. The objectives we have set are

ambitious while recognising the constraints and challenges that continued pressure

on public finances create.

1.3 The plan emphasises the importance of our continued relationship with the Council

and that, for us to continue to add value, the partnership needs to be underpinned

by clear expectations and shared ambitions. We understand and accept the need for

a continued re-evaluation of our on-going role and articulate through this plan how

we see our contribution developing.

1.4 South Essex Homes and the Council have a strong track record of achievement in the

Housing Service. We believe this provides a sound platform for the future

development of the services we provide but also recognises the need for us to invest

in our staff, our systems, our residents and our key relationships for us to continue

to make a difference in the future.

1.5 We also realise that we must expand our sphere of work and increase income to

ensure the long term sustainability of South Essex Homes. We aim to achieve this

through our subsidiary South Essex Property Services.

1.5 The essence of this plan is about practicality and delivery. We have set out clear

ambitions and identified outcome measures that will enable us to demonstrate

results to both the Council and residents. The ambitions set out here will form the

basis of action plans which describe the detail of how South Essex Homes will

continue to deliver a high quality service for the Council by working smarter

together.

Tony Churton

Chair of the Board, March 2017

65


4

2.0 Our Mission

2.1 South Essex Homes Mission is Working Smarter Together

3.0 Our Aims

3.1 Our aims reflect the fundamental goals we must achieve in close collaboration with the Council. These are set out below:

Working Smarter Together

In partnership with Southend Borough Council

We will:

Provide excellent services

Ensure our sustainability

4.0 The Influencing Factors

4.1 South Essex Homes’ aims are driven by a series of influencing factors, from national

economic pressures to the Council’s own strategic objectives. Our goals are

inextricably linked with these factors. Our overriding purpose is to work holistically

with the Council in ensuring tenants receive a high quality, cost effective service and

that our future is sustainable.

4.2 The National Context

We face a time of very significant change for housing and the public sector more

widely. This business plan is being prepared in the context of that continuing change

and uncertainty. In addition it is likely that public sector spending constraints will

remain a priority for the Government, putting further financial pressures on both the

Company and the Council.

66


5

The key national factors likely to continue to impact on South Essex Homes directly

and indirectly are:

The Government continuing to reduce public expenditure

The challenges to increase affordable housing in the wider context of a general shortage of housing and the increase in private rented housing for families

The challenge of meeting the future demands of welfare reform

The ageing population and the social care challenges arising from this

In addition the National Federation of ALMOs (NFA) and the Association of Retained

Council Housing (ARCH) have stated that the Councils and ALMOs they represent are

keen to help deliver new homes across every tenure, and believe that, given the right

help, they could make a major contribution. Specifically they have asked the

Government to:

Encourage and support Councils to supply homes for sale, market rent and low rent

housing depending on the needs of, and market issues in, local areas.

Reconsider social rent reduction plans and debt caps to enable Councils to finance

much more new building from their HRAs.

Make sure that arrangements to replace Council higher - value homes give Councils

the resources and flexibility to deliver at least one-for-one replacement.

4.3 The Local Context

The challenges facing Southend are reflective of the national context and South Essex

Homes has a key role in supporting the Council to respond to these.

4.4 The Local Housing Context

The Council’s local Housing Strategy contains three aims which reflect the national

agenda and are particularly relevant in terms of South Essex Homes’ role. These are:

Promote the delivery of quality housing, including affordable, to meet local needs and promote a sustainable and balanced housing market

Promote improvement in the quality of the existing housing stock achieving Decent, Healthy and Environmentally Sustainable homes across all tenures

Promoting greater accessibility to different types of housing and promoting independent living for vulnerable groups and continuing work to prevent homelessness

The Company’s objectives reflect these aims.

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6

4.5 The Broader Local Context

The Objectives identified in the Council’s business plan are intended to contribute to

helping the Council achieve its strategic priorities.

The five key strategic aims of the Council remain:

Safe

- Create a safe environment across the town for residents, workers and

visitors

- Working in partnership with Essex Police and other partners to tackle crime

- Look after and safeguard children and vulnerable adults

Clean

- Continue to promote the use of green technology and initiatives to benefit

the local economy and environment

- Encourage and enforce high standards of environmental stewardship

Healthy

- Actively promote healthy lifestyles for all

- Work with public and private sectors to provide good quality housing

- Enable the planning and development of quality, affordable housing

Prosperous

- Improve the life chances of our residents, especially vulnerable children and

adults, by working to reduce inequalities and social deprivation across our

communities

- Ensure continued regeneration of the town through a culture lead agenda

- Ensure residents have access to high quality education to enable them to be

lifelong learners and have fulfilling employment

- Ensure the town is ‘open for business’ and that new, developing and existing

enterprise is nurtured and supported

Led by an Excellent Council

- Work with and listen to our communities and partners to achieve better

outcomes for all

- Enable communities to be self-sufficient and foster pride in the town

- Promote and lead an entrepreneurial, creative and innovative approach to

the development of our town

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7

The key focus for the Council will be:

Responding effectively to and supporting the move towards the integration of

the health and social care agenda

Responding to the pressures on the children’s services

Delivering the services across the borough holistically and within integrated

communities with the public taking more responsibility

Achieving this through the transformational agenda of:

Having a more entrepreneurial approach, including income generation

Being more of an enabler rather than a provider working with communities and partners to deliver services

These offer us both business opportunities to support the Council and major

challenges to the way we deliver our services to support these objectives.

The Council is under pressure to meet local housing needs as a result of rising house

prices and also the level of rents in the private rented sector. Ensuring the delivery

of additional housing across tenures in the Borough is a key priority for the Council.

The Council is seeking to pursue a number of initiatives over the coming years in

order to deliver this.

South Essex Homes can support the Council to deliver these broader objectives by

widening the scope of its own service delivery to the Council.

5.0 Our Objectives

5.1 Taking into account the national context, the local pressures and our aims, we have

identified the key strategic objectives to be achieved over the next 5 years.

These objectives are:

Deliver Value to the Council

Empower Residents

Provide Innovative Solutions

Engage with Communities

Develop our commercial activities

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8

6.0 Delivering our Objectives

6.1 Delivering Value to the Council

We will:

Work in partnership with the Council to critically review our purpose and

contribution:

Continue to deliver an efficient sustainable service

Seek to assist in the delivery of the major town centre regeneration project

Work with the Council to support and deliver the requirements of any Local Housing Company

Continue to respond effectively to the requirements arising from the introduction of Welfare Reform

Maximise the Council’s rental income

6.2 Empowering Residents

We will:

Review and develop our Engagement Strategy to continue to offer the

broadest range of options for residents to inform the on-going delivery of

services

Continue to work in partnership with the Residents’ Scrutiny Forum to

deliver actions identified from their independent reviews

Support and train residents to encourage representatives, forums and

associations to become more self-sufficient in their community involvement

Develop the Hub concept to further support residents to deal with issues

they are experiencing, which may be compromising their tenancy, maximise

their income and reduce arrears for the organisation

Support all residents to ensure sustainability of tenancies and leases

6.3 Providing Innovative Solutions

We will:

Strive to maintain our key performance and resident satisfaction measures in

the top quartile of our peers, in the context of reducing costs

Further develop the Asset Management Strategy and Reinvestment Standard

to enable informed decisions to be made about future investment in the

stock

70


9

Review the form of delivery of the repairs service to ensure Value for Money

and to ensure compliance with relevant legislation

Comprehensively review our IT and other communication systems to ensure

staff are equipped to deliver excellent services, to improve communication

and to ensure residents are able to access our services using a variety of

online methods to suit their needs

Review the delivery of front line services to ensure the highest quality of

service in the context of our overall financial viability

Work in partnership with the Council and other providers to contribute to

building community capacity by sourcing external funding for projects

6.4 Engaging with Communities

We will:

Identify initiatives to enhance the communities where residents live and

increase satisfaction with neighbourhoods, educating and supporting tenants

to take more responsibility for this

Support the Council in achieving its objectives, including regeneration, renewal

and redevelopment projects

Work in partnership with the Council and external agencies to provide advice

and support to residents to minimise the impact of Welfare Reforms

Educate, support and encourage residents to improve their management of the

use of energy and cut associated energy bills

6.5 Developing our Commercial Activities

We will:

Maximise external sources of funding

Review and expand the delivery of the Careline Service to maximise income

Focus on maximising the use of our commercial subsidiary, South Essex

Property Services, to provide more cost effective services and to improve our

competitiveness

Expand the services delivered to the Council to support the General Fund

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10

7.0 Strategic Projects and Performance Goals

7.1 We have identified five key projects to drive the plan forward. The aim of these is to

put the Company in a good position going forward to meet the changes and

challenges awaiting us. We will work with staff to build on these to achieve the aims

going forward. The five projects are:

Careline Review

Transforming the Careline service into a commercially viable business unit and making it more competitive

Repairs and Maintenance

Redesigning the delivery of the externalised repairs service

Re-engineering of Frontline services

Reducing costs of services, whilst maintaining performance levels

ICT Review

Delivering effective IT solutions to facilitate culture change and delivery models

Expanding the future role of South Essex Homes

Utilising the commercial subsidiary to increase our competitiveness, expand our portfolio and reduce costs

7.2 Alongside this we will continue to strive to maintain the excellent service delivery to

our tenants. We have a set of key performance indicators, which are set out in

Appendix A.

8.0 Supporting our Objectives

8.1 To enable us to achieve our objectives we need to have the right business and

cultural foundations in place and be able to maintain and constantly build upon

these.

8.2 South Essex Homes has a strong track record in, and has consistently demonstrated

our ability to, deliver results. We are confident we have in place the governance,

leadership and key relationship’s to continue delivering and achieve the ambitions

set out in this plan. Most of all we have confident, capable staff who demonstrate a

positive attitude to the challenges ahead. Underpinning our plan are the key

organisational foundations on which to deliver our aims and objectives.

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11

9.0 Organisational Development

9.1 We have achieved Investors in People Gold Award accreditation and will use the

lessons learned from this together with the results from our three yearly staff survey

to develop our staff and leaders through our Organisational Development

Programme.

10.0 Performance Management

10.1 The Company’s performance management strategy combined with the planning

process enables the targets set in partnership with the Council to be robustly

monitored and delivered. This combined with effective leadership and Governance

provides the foundation for ensuring the ambitions in this plan are delivered.

11.0 Risk Management

11.1 The effective management of Risk will be a key factor in the delivery of our business

plan. To support the identification and management of risks we have in place a

comprehensive strategy that supports a structured and focussed approach to risk

management. The strategy aims to apply best practice to the identification,

evaluation and control of key risks and ensure that residual risks are at an acceptable

level.

12.0 Behaviours

12.1 Having the right behavioural environment for our staff to work in ensures that we

work collaboratively towards our goals, both with each other, our customers and our

stakeholders. Staff have worked together across the organisation on developing our

corporate behaviours and are proud to say they own the behaviours. These are set

out below:

Communicating Effectively

Giving information or instructions in a clear and concise manner that

understands and appreciates the needs of the receiver.

Being Consistent

Ensuring a consistent approach is taken when we make decisions or give advice,

to tenants or staff, making certain there is equity.

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12

Being Respectful and Professional

Treating everyone as they would wish to be treated, so they feel their needs are

valued. Acting with integrity and a high professional standard and being

sympathetic to customers’ needs.

Having Ownership with Empowerment

Taking responsibility for work from start to finish. Management giving staff at

all levels the freedom to make decisions, where appropriate and able to do so,

and supporting them throughout.

Having a Positive Can Do Attitude

Looking for solutions rather than excuses. No blame, no surprises.

Being Collaborative

Sharing consistent goals and being supportive of each other in achieving them

and ensuring that others views are valued and respected.

13.0 Financial Resources

13.1 In moving forward the Company has to strike a balance between reducing costs and

maintaining services. In setting the savings targets for the next five years, it is

believed that this can still be achieved. It will however be difficult to achieve further

savings without adversely affecting services. The Company is likely to need to look to

use sustainable income from South Essex Property Services to support the

management fee to ensure service levels are sustained. A summary of the financial

position is set out in Appendix B.

14.0 Appendices

14.1 Appendix A - Performance Targets

14.2 Appendix B - Five Year Company Budget

74

Targets for 2017/2018

PI Code PI Name Proposed target 17/18 (16/17 target)

KP 1 Overall Satisfaction of tenants

95%

KP 2 Overall satisfaction of sheltered tenants

95%

KP 3 Careline calls answered in 1 minute

97.5%

KP 4 Collection rate for rents

99.7%

KP 5 Current rent arrears as % of rent due

1.77%

KP 6 Satisfaction with property condition

97%

KP 7 Void turnround time

17 days KP10 Satisfaction with Estate Services 90%

KP11 Satisfaction with outcome of ASB complaints

93%

KP12 Responsive repairs completed in target times

99%

KP13 Jobs completed right first time

97%

KP15 Average time to complete all jobs

8.5 days

Appendix a to Appendix 1 to Agenda Item 12

75


KP16 Tenants satisfied with jobs completed

99%

KP17 Gas safety certificates

100%

KP19 % non-decent council homes

0%

KP20 Improvement Programme completed

100%

KP21 Satisfaction of tenants with repairs and maintenance 88%

KP22 Satisfaction that views are listened to and acted upon

80%

KP23 Leaseholder satisfaction with South Essex Homes

82

KP24 Working Days Lost Due to Sickness Absence

7.25

KP25 Complaints responded to within 10 days

100%

KP29 Satisfaction with Neighbourhood

91.5%

KP30 NEW Satisfaction that rent provides value for money

90%

KP31 NEW Percentage of respondents very or fairly satisfied with the overall quality of their home

90%

KP32 NEW (was KSS25)

Tenants satisfied with viewing and letting process

97%

KP33 NEW Tenants satisfied that service charges provide value for money 80%

Local N20 Anti-Social Behaviour cases successfully resolved

99.6%

Local R2 Number of evictions for rent arrears

-

76


Local R7 Write-offs (cash value)

-

Local R13 Current rent arrears (in cash)

To be calculated when rent roll is known which will reflect value of KP5 target against collectible debit

Local R13a Former tenant arrears

£440,000 subject to review

Local R14 FTAs as a percentage of debit

1.2%

Local R66b % of Tenants in arrears over 7 weeks

-

Local SP8 Occupancy rate for hostels -

Local V3 Void loss as % of debit

-

Local V3 (F1) Void loss

- Local V8 Percentage of property void & relettable -

Local V21 Proportion of lettable voids empty for over four weeks

-

Local V22 Percentage of tenants underoccupying due to spare room subsidy who we have contacted -

Local V22 (F1) Number of tenants underoccupying due to spare room subsidy who we have contacted -

Local V22 (F2) Total number of tenants underoccupying due to spare room subsidy -

77

Appendix b to Appendix 1 of Agenda Item 12

2017/18 2018/19 2019/20 2020/21 2021/22

£'000 £'000 £'000 £'000 £'000

Turnover

Management Fee 5,827 5,877 5,927 5,977 5,977

Service Charge Income ** 3,395 3,425 3,455 3,485 3,515

Other Income 82 82 82 82 82

Income from External Sources 189 189 189 189 189

Total Turnover 9,493 9,573 9,653 9,733 9,763

Operating Costs

Employees 6,357 6,482 6,607 6,732 6,857

Other operating costs 3,360 3,360 3,360 3,360 3,360

Apprentice Levy 25 10 10 10 10

Total Operating Costs 9,742 9,852 9,977 10,102 10,227

Gross Proft / (Loss) (249) (279) (324) (369) (464)

Interest Receivable 30 30 30 30 30

Net Proft / (Loss) (219) (249) (294) (339) (434)

% of Controllable Budget 4.6% 5.2% 6.1% 7.0% 8.9%

** Assumes service charge income increases with costs

South Essex Homes 5 year Budget model

78


Report of Group Manager, Resources and Business Development

to

The Board

on

15th March 2017

Report prepared by: Helen Walker

Tel: 01702 212649

Performance Update Report


1 Purpose of Report 1.1 1.2 1.3

To advise the Board of the outcomes of the Benchmarking exercise undertaken with Housemark for 2015/16 data. To advise the Board of the targets which have been discussed with Southend Borough Council for 2017/18. To provide the Board with comparative information relating to complaints for 2015/16 and 2016/17 (year to date)

2 Recommendations 2.1 2.1.1

2.1.2 2.1.3

2.1.4

The Board are requested:- To note the outcomes of the performance Benchmarking exercise for

2015/16 as shown at Appendix 1 with year to date performance and

proposed targets.

To note the outcomes of the Value for Money Benchmarking exercise for

2015/16 as shown at Appendix 2

To agree the targets for performance indicators as discussed with Southend

Borough Council and as recommended by the Audit Committee as

contained in Appendix 1, and as shown with year to date performance for

2016/17

To note the complaints information for 2015/16 and 2016/17 as shown at

Appendix 4.

Agenda Item No.

Agenda Item No.

13

79

3 3.1 3.1.1 3.1.2

3.1.3 3.1.4

3.1.5 3.1.6 3.2 3.2.1 3.2.2 3.2.3

Background Performance Benchmarking As in previous years, South Essex Homes have undertaken the annual benchmarking exercise for 2015/16 data during the summer months of 2016/17. The data was analysed by Housemark, and comparative data against our peer group (those organisations with similar stock sizes and location) as well as all organisations in the UK. The results of this are shown at Appendix 1, with the previous year’s results also shown for information. South Essex Homes are above median position for most indicators for our peer group, with the exceptions being shown below:

KP4 – Collection rate for rents

KP19 – Percentage non decent council homes

Local R14 – Former tenant arrears as a percentage of debit

Local V3 – Void loss as percentage of debit

Local V8 – Percentage of property void and relettable KP4 Collection rate for rents was affected by additional collection of water rates, which always impacts on our ability to reach top quartile. KP19 Percentage non-decent homes is impacted by our round 5 status, by only achieving Decent Homes funding in later years against other organisations who will have obtained their funding some years earlier. Local R14 is impacted by the same factors as KP4, i.e. a proportion of our Former Tenant Arrears is caused by uncollected water rates. Local V3 and Local V8 are affected by the properties which are currently empty as a result of the Queensway project and the review into Sheltered Housing being undertaken by the Council. Value for Money Benchmarking As well as benchmarking our performance information, South Essex Homes also benchmarked via Housemark our cost information against our peer group and all organisations in the UK. The results of this are shown at Appendix 2, with the previous year’s results also shown for information. Resident involvement remains an area where we are in the lower quartile areas for cost. However our team includes tenancy sustainment work, as well as community development. This work is undertaken with other teams such as income management and tenancy services, and helps us to identify vulnerable tenants who may be at risk of failing their tenancies due to various issues. The total cost of Anti-Social Behaviour per property is also an area where we are in the lower quartile areas for cost. Further analysis has shown that we have a high number of cases per 1,000 properties.

80

3.2.4 3.2.5 3.2.6 3.2.7 3.3 3.3.1

3.3.2 3.3.3 3.3.4 3.4 3.4.1

Other areas where we are also lower quartile for cost include Tenancy Management, Major Works, some Void costs, Estate Services and Leasehold Services. Major Works remain more expensive due to the ongoing Decent Homes work which will have been completed by many organisations who received their funding in earlier years. Estate Services have always historically shown as more expensive than other organisations. We cannot determine the depth of the services offered by other organisations, but many other authorities, Housing Associations or ALMOs do not have the same numbers of tower blocks as us. This combined with our number of low rise buildings with regular estate requirements means that we spend more per property than some others. This position would therefore be unlikely to change in the near future. We consider that Leasehold Services show as more expensive than some other organisations that are able to achieve economy through scale. Performance Targets 2017/18

Following receipt and analysis of the performance benchmarking information, South Essex Homes have been in discussion with Southend Borough Council to agree performance targets for 2017/18. These are contained within the final column of Appendix 1.

Targets have been agreed to reflect top quartile with the following exceptions:

KP4 – Collection rate for rents KP24 – Working days lost due to sickness absence Local R14 – Former tenant arrears as a percentage of debit As with performance benchmarking, KP4 is affected by additional collection of water rates, which always impacts on our ability to reach top quartile. This equally impacts upon the target set for Local R14 KP24 has been targeted so that we work towards top quartile. In previous years we have been able to achieve this, however 2016/17 has been a challenging year for managing sickness absence and therefore the target has been set realistically to work towards top quartile, and is in line with changes to our absence monitoring process. Year to date performance exception report The performance report for the year to date up to end of January 2017 is contained within Appendix 1. Most indicators are currently performing at, or better than target with the following exceptions:

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3.4.2 3.4.3 3.4.4 3.4.5

3.5 3.5.1 3.5.2 3.5.3

KP12 – Responsive repairs completed in target times

KP15 – Average time to complete all repair jobs

KP20 – Percentage Improvement Programme completed

KP24 – Working days lost to sickness absence

KP12 performance is below the yearly target due to a combination of factors. The summer months saw a dip in reported performance from both contractors, partly due to technical difficulties when there were some access issues to South Essex Homes’ systems. In January performance from Kier was marginally below target, however during all the autumn and winter months there have been problems with performance from the gas contractor, who have undergone some administrative disruption. This issue is currently being managed at Senior Management level. As previously reported, performance for KP15 has been affected by two different issues, including accuracy of completion times reporting at Aaron Services, and small numbers of jobs which were not actioned by Kier in line with contract timescales, which affected the overall repair time. In January there have also been repairs outside of timescale by Aaron Services. This is being discussed at contractor meetings. It does however remain more cost effective to issue more routine repairs than urgent. KP20 is below target due to the difference in target and completions following a delayed start to the windows contract. The contractor is now on site, and works are anticipated to be completed within contractual timescale, although this will run into the early part of 2017/18. Budget deferral has been agreed. The number of working days lost to sickness absence stayed above target for most of the year. The majority of days lost over the year have been caused by long-term sickness, with more than one member of staff requiring hospitalisation for medical procedures over the recent months. We will continue to monitor all absence in a robust manner but are now very unlikely to meet the annual target. Complaints analysis and comparative information 2015/16 and 2016/17 Contained within Appendix 3 is an analysis of complaints received. This is presented by service area, with additional information to show whether complaints are upheld (fully or partially) or not upheld. The level of complaints for 2016/17 is currently lower than at the same point in 2015/16. Complaint numbers across most service areas remain fairly similar, with the biggest increases in complaints relating to Tenancy Management and Careline, and the biggest decreases in complaints relating to Anti-Social Behaviour and Property Services (planned works etc.) There is no specific reason for the increase in complaints relating to Tenancy Management, especially when looking at the percentage of those complaints which are upheld. The increase in complaints against Careline

82

3.5.4 3.5.5 3.5.6

appear to mostly reflect dissatisfaction when reporting repairs to out-of-hours staff, and where this has been upheld, the relevant staff have received further training. Complaints relating to responsive repairs are often of a similar nature, however we have recently seen an increase in complaints relating to boiler repairs. This is connected to the downturn in performance for KP12 and KP15, and we are continuing to address this at a senior level with the gas contractors. For both years, the overall percentages of complaints which are fully or partially upheld remain broadly similar. In 2015/16, a total of 8 complaints were escalated to stage 2. Of these 8 complaints, three were upheld at stage 2 and the rest were not upheld. Two of those which were not upheld were subsequently escalated to stage 3. Neither of these was upheld. We were advised that one would be referred to the Ombudsman, however there has been no further contact concerning this matter. In 2016/17 year to date, 5 complaints have been escalated to stage 2. One was fully upheld, and four were not upheld. One of those was then escalated to stage 3, where the panel partially upheld one section of the complaint, but not all aspects.


4.1

All equality and diversity issues identified from the report have been considered and are in accordance with the South Essex Homes Equality and Diversity Policy.

5 Risk 5.1

Any risks identified from the proposals contained in this report have been considered by the Senior Management Team.

6 Financial Implications 6.1 All costs associated with the performance targets and value for money

results have been fully considered and are within budget.

7 Resident Consultation 7.1 Not applicable


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9 Appendices

9.1

Appendix 1 – Performance benchmarking, target setting and year to date performance. Appendix 2 – Value for Money comparative benchmarking information Appendix 3 – Complaints comparative data 2015/16 and 2016/17 YTD

84

Performance Benchmarking, Target setting and YTD performance appendix

Top quartile

Middle Upper (2nd Quartile)

Median

Lower Middle (3rd Quartile)

Bottom quartile

Top quartile from Housemark Results

PI Code PI Name

2014-15 Peer Group

2014-15 All of UK

2015-16 Peer Group

2015-16 All of UK

2014-2015 2015-2016 April-January 2017

Proposed target 17/18 (16/17 target)

KP 1 Overall Satisfaction of tenants

88.20%

89%

89.55%

90%

91.3% 96.6% 95.6% 95% (95%)

KP 2 Overall satisfaction of sheltered tenants

93%

94%

93%

94.18%

97.46% 95.01% 95.36% 95% (95%)

KP 3 Careline calls answered in 1 minute

TSA Standard

TSA Standard

TSA Standard

TSA Standard 99.2% 98.5% 98.7% 97.5% (97.5%)

KP 4 Collection rate for rents

99.97%

99.92%

100.27%

100.05%

99.38% 99.85% 99.83%

99.7%

(99.7%) The additional collection of water rates impacts our

quartile position)

KP 5 Current rent arrears as % of rent due

1.82%

1.85%

1.80%

1.80%

1.59% 1.37% 1.47% 1.77%

(agreed by SBC)

KP 6 Satisfaction with property condition

- - - - 93% 99% 98% 97% (97%)


85


PI Code PI Name

2014-15 Peer Group

2014-15 All of UK

2015-16 Peer Group

2015-16 All of UK

2014-2015 2015-2016 April-January 2017


KP 7 Void turnround time

22 days 19.6 days 17.2 days

19 days

17.9 days 18.7 days 15.5 days

17 days (18

days)

KP10 Satisfaction with Estate Services

87.03%

87.95%

83.28%

84.47%

84.9% 92.5% 90.6% 90% (90%)

KP11 Satisfaction with outcome of ASB complaints

82.52%

87%

87.43%

89.5%

100% 100% 99% 93% (93%)

KP12 Responsive repairs completed in target times

- - - - 99.2% 98.46% 97.16% 99% (99%)

KP13 Jobs completed right first time

95.03%

94.90%

94.4%

95.7%

95.9% 98.7% 98.7% 97% (97%)

KP15

Average time to complete

all jobs

7.45 days

6.50 days

8.66 days

6.80 days


8.5 days (7

days) more

routine jobs are being planned

KP16 Tenants satisfied with jobs completed

98.21%

97.49%

Quartile not available


99% 99.5% 99.2%

99% (99%)( (this survey is now transactional, we have amended our process for 2017/18)

KP17 Gas safety certificates

100% 100% 100%

100%

100% 100% 100% 100% (100%)

KP19 % non-decent council homes

0%

0%

0%

0%

5% 2.5% 1.7%

0% (0%)(this target achievement is wholly depending on properties held for regeneration

86


PI Code PI Name

2014-15 Peer Group

2014-15 All of UK

2015-16 Peer Group

2015-16 All of UK

2014-2015 2015-2016 April-January 2017


or major works by

SBC)

KP20 Improvement Programme completed

- - - - 168.3% 103.3% 72.4% 100% (100%)

KP21 Satisfaction of tenants with repairs and maintenance

82.93%

85.7%

86.4%

87%

88.2% 92.9% 88.3% 88% (90%)

KP22

Satisfaction that views are listened to and acted upon

75.5%

75.09%

77.9%

76.15%

90.4% 87.7% 86.3% 80% (80%)

KP23

Leaseholder satisfaction with South Essex Homes

66.62%

67.58%

71.56%

72.25%

82% 86% 83% 82% (82%)

KP24 Working Days Lost Due to Sickness Absence

6.29 days

7.09 days

6.69 days

7.27 days


7.25 days (7.75 days) (we have changed our processes in line with those of the Council and target an improvement in our management of sickness in

2017/18.

KP25 Complaints responded to within 10 days

- - - - 99% 100% 97% 100% (100%)

KP29 Satisfaction with Neighbourhood

89.15%

89.10%

91.43%

89%

90% 92% 91% 91.5% (90%)

KP30 NEW Satisfaction that rent provides value for money

86.6% 86.08% 88.3% 87% - - 96.8% 90% (86.4%)

87


PI Code PI Name

2014-15 Peer Group

2014-15 All of UK

2015-16 Peer Group

2015-16 All of UK

2014-2015 2015-2016 April-January 2017


KP31 NEW

Percentage of respondents very or fairly satisfied with the overall quality of their home

87.7% 88.3% 87% 88.7%

- - 95.89% 90%

(87.35%)

KP32 NEW (was KSS25)

Tenants satisfied with viewing and letting process

97.35% (Satisfaction with allocations and lettings)

98.76% (Satisfaction with allocations and lettings)


97.40%

97% 98% 98% 97% (97%)

KP33 NEW Tenants satisfied that service charges provide value for money

79.48% 78.35% 80%

Local N20 Anti-Social Behaviour cases successfully resolved

98.47%

98.76%

99.57%

99.43%

100% 99.7% 100% 99.6% (99%)

Local R2 Number of evictions for rent arrears

- - - - 30 45 11 -

Local R7 Write-offs (cash value)

- - - - £167,970 £135,468 £92,159 -

Local R13 Current rent arrears (in cash)

- - - -

£503,814 £449,893 £476,088

To be calculated when rent roll is known which will reflect value of KP5 target against collectible debit

Local R13a Former tenant arrears

- - - - £427,377 £396,899 £381,266

£440,000 subject to review

Local R14 FTAs as a percentage of debit

0.60%

0.74%

0.45%

0.74%

1.15% 1.10% 1.03% 1.2% (1.2%)

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PI Code PI Name

2014-15 Peer Group

2014-15 All of UK

2015-16 Peer Group

2015-16 All of UK

2014-2015 2015-2016 April-January 2017


Local R66b % of Tenants in arrears over 7 weeks

- - - - 3.37% 2.85% 3.11% -

Local SP8 Occupancy rate for hostels - - - - 60% 82% 87% -

Local V3 Void loss as % of debit

0.58%

0.60%

0.52%

0.6%

1.65% 2.05% 1.83% -

Local V3 (F1) Void loss

- - - -

£531,901 £686,605 £510,650

-

Local V8 Percentage of property void & relettable

0.24%

0.29%

0.20%

0.25%

0.81% 1.40% 0.92% -

Local V21 Proportion of lettable voids empty for over four weeks

- - - - 22.4% 31% 34.6% -

Local V22

Percentage of tenants underoccupying due to spare room subsidy who we have contacted

- - - -

100% 100% 100% -

Local V22 (F1)

Number of tenants underoccupying due to spare room subsidy who

we have contacted

- - - -

8.75 9.08 13.3 -

Local V22 (F2) Total number of tenants underoccupying due to spare room subsidy

- - - - 8.75 9.08 13.3 -

89

Housemark Value for Money comparative data

Top quartile

Middle Upper (2nd Quartile)

Median

Lower Middle (3rd Quartile)

Bottom quartile


Housing Management

2014-15 Peer Group

2014-15 All of UK

2015-16 Peer Group

2015-16 All of UK

2014-2015 2015-2016

Total cost per property of Housing Management

£382.27

£360.97

£353.88

£362.27

£365.17 £365.96

Rent arrears and collection

Total cost per property of rent arrears and collection

£110.70

£105.77

£105.91

£110.45

£103.48 £98.45

Resident Involvement

Total cost per property of resident involvement

£46.69

£41.04

£41.72

£40.93

£63.24 £60.50

Anti-Social behaviour

Total cost per property of Anti-Social Behaviour

£44.60

£43.20

£41.19

£39.26

£62.40 £68.43

Lettings

Total cost per property of lettings

£49.12

£49.29

£52.41

£52.67

£26.48 £27.44

Tenancy Management

Total cost per property of tenancy management

£96.22

£78.98

£89.58

£82.65

£109.56 £111.15


90


Major Works & Cyclical Maintenance

2014-15 Peer Group

2014-15 All of UK

2015-16 Peer Group

2015-16 All of UK

2014-2015 2015-2016

Total cost per property of major works and cyclical maintenance

£1319.11

£1185.88

£1,404.34

£1,181.15

£1,558.14 £1,627.32

Major works (service provision)

Total cost per property of major works (service provision)

£856.50

£763.49

£950.36

£759.71

£1,160.77 £1,219.64

Major works (management)

Total cost per property of major works (management)

£88

£67.13

£86.40

£65.12

£119.25 £106.35

Cyclical maintenance (service provision)

Total cost per property of cyclical maintenance (service provision)

£200.25

£157.03

£236.06

£157.20

£239.55 £266.96

Cyclical maintenance (management)

Total cost per property of cyclical maintenance (management)

£37.66

£30

£38.55

£33.34

£38.57 £34.37

91


Responsive repairs and void works

2014-15 Peer Group

2014-15 All of UK

2015-16 Peer Group

2015-16 All of UK

2014-2015 2015-2016

Total cost per property of responsive repairs and void works

£636.70

£691.96

£685.49

£700.65

£498.98 £579.85

Responsive repairs (service provision)

Total cost per property of responsive repairs (service provision)

£360.41

£351.01

£376.24

£351.66

£221.56 £274.92

Responsive repairs (management)

Total cost per property of responsive repairs (management)

£83.66

£85.13

£89.07

£90.89

£76.73 £79.10

Void works (service provision)

Total cost per property of void works (service provision)

£126.07

£134.21

£129.43

£139.88

£162.24 £190

Void works (management)

Total cost per property of void works (management)

£26.07

£28.75

£24.16

£29.35

£38.46 £35.83

92


Other service areas

2014-15 Peer Group

2014-15 All of UK

2015-16 Peer Group

2015-16 All of UK

2014-2015 2015-2016

Estate Services

Total cost per property of Estate Services £130.66

£111.23

£130.01

£111.22

£197.01 £177.30

Leasehold Services

Total cost per property of Leasehold £271.64

£219.47

£230.68

£180.69

£404.00 £406.51

93

34

2

7

1

10 11

2 1

6

2

5

1

13

0

35

2 3

0

16

1 2

0

4

0

9

4 5

2

0

5

10

15

20

25

30

35

40

Number of Complaints by service area

2015/16 2016/17 YTD


94

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

Complaints upheld by service area

2015/16 2016/17 YTD

95

35

1

20

11

22

1

4

1 0

27

1

8

10

18

2

12

4

1

0

5

10

15

20

25

30

35

40

Customer Care Compensation GeneralDissatisfaction

Disagree withdecision

Standard ofservice

MissedAppointment

Time taken Communication Discrimination

Type of complaint

2015/16 2016/17

96

board agenda - south essex homes · 3.2 3.2.1 3.2.2 3.2.3 3.3 3.3.1 3.4 3.4.1 tony churton roger...

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