making our house your home board agenda 20 november 2018€¦ · 20-11-2018 · determined by...

Making our house your home

Chief Executive: Dena Macleod

Registered Office: Creed Court

Gleann Seileach Business Park

Willowglen Road, Stornoway

Isle of Lewis, HS1 2QP

Email:[email protected]

Web: hebrideanhousing.co.uk

Chief Executive: Dena Macleod

Registered Charity No: SCO35767

A Registered Society under the Co-operative

and Community Benefit Societies Act 2014

Reg No. 2644R(S)

BOARD AGENDA – 20

NOVEMBER 2018 PRELIMINARY MATTERS

Item Description Presented By Action Page No Time

1 Attendance & Apologies Appointment of Substitutes for

IDB

Chair Noting 3

5.30 pm

-

5.40pm

2 Declaration of Interest Chair Noting -

3 Minute of Board Meetings

29 & 30 August 2018

Chair Approval 6

4 Action Sheet Chief

Executive

Noting 13

5 Date of Next Meeting

13 February 2019

Chair Approval -

6 Health & Safety Director of

Operations

Noting -

ITEMS FOR DECISION Item Description Presented By Action Page No Time

7

Board Skills Assessment &

Training Plan

Corporate

Governance

Manager

Approval

16

5.40pm

-

6.00pm

8

Investment Update & 5

Year Investment

Programme

Assets &

Contracts

Manager

Approval T/F

9

Budget Timetable

2019/20

Director of

F&CS

Approval 21

10 Management Report to

30 September 2018

Director of

F&CS

Approval 30

POLICIES FOR APPROVAL Item Description Presented By Action Page No Time

11

Allocations Policy

Consultation

Director of

Operations

Approval 52

6.00pm

-

6.15pm

12 H&S Policy Statement Director of

Operations

Approval 66

13 Safeguarding Policy

Review

Chief

Executive

Noting 72

14 Code of Conduct Chief

Executive

Approval 78

2

MONITORING & UPDATE REPORTS Item Description Presented By Action Page No Time

15 Business Planning

Timetable

Chief

Executive

Noting

98

6.15pm

-

6.45pm

16 Business Plan 2015/16 –

2019/20 Monitoring

Report

Chief

Executive

Noting

100

17 Board Plan 2019 Corporate

Governance

Manager

Noting

123

18 Quarterly Treasury Report Director of

F&CS

Noting 127

19 Gas Audit Director of

Operations

Noting 133

20 Welfare Reform Director of

Operations

Noting 144

MEETING GOES INTO PRIVATE SESSION

Agenda Item 1

Board Members Notes 23-May-18 27-Jun-18 29-Aug-18

Norman Macleod

Mairi Bremner

Daniel Coyle 2

Alasdair Mackenzie

Calum Mackay

Iain Macmillan

Kevin Paterson

John Mitchell

Roddy Mackay

John Mackay

Dolene Smith 1

Fiona Macleod 3

Member present at meeting

1 - Appointed as a Tenant Member on 23 May 2018

2 - Resigned as Board Member 27 June 2018 Member not present at meeting

3 - Appointed as Board Member on 29 August 2018

Cancellation of travel due to weather/

technical problems

Member not required to be present at meeting

Special Leave

Board Meetings 2018/19

Agenda Item 1

Board Members Notes 30-Aug-18

Norman Macleod

Mairi Bremner

Calum Mackay

Alasdair Mackenzie

Iain Macmillan

John Mitchell

Roddy Mackay

John Mackay

Dolene Smith

Fiona Macleod

David Blaney 1

Alexander Gardner 2


1 - Appointed as a Community Member on 30 August May 2018

2 - Appointed as a Tenant Member on 30 August May 2018 Member not present at meeting


technical problems


Special Leave

Board Meetings 2018/19

Lobbying

Training

28-Jun-18

Mairi Bremner

Daniel Coyle 2

Alasdair Mackenzie

Calum Mackay

Iain Macmillan

Kevin Paterson

Roddy Mackay

Norman Macleod

John Mitchell

John Mackay

Dolene Smith 1


1 - Appointed as a Tenant Member on 23 May 2018 Member not present at meeting

2 - Resigned as Board Member 27 June 2018


technical problems


Board Training 2018/19

Board Members Notes

HEBRIDEAN HOUSING PARTNERSHIP

Board

Minutes of Meeting held in HHP Board Room, Creed Court, Wednesday, 29 August 2018 @ 5.30pm

ATTENDANCE & APOLOGIES

1

Attendance & Apologies

Present Staff & Consultants In Attendance

Mairi Bremner Dena Macleod (Chief Executive)

Alasdair Mackenzie John Maciver (Director of Operations)

John Mackay Donald Macleod (Director of Finance & Corporate

Dolene Smith Services)

Fiona Macleod (from Item 7) Angela Smith (Corporate Governance Manager)

Angus MacNeil (Assets & Contract Manager)

Apologies Donalda Mackinnon (Lewis Area Manager

Norman Macleod Katia Petteloot (Finance & Business Manager)

Calum Mackay Jane Ballantyne (Tenant Participation Officer)

Roddy Mackay Iona France (Governance Admin Officer – Minute Taker )

John Mitchell

Kevin Paterson

Iain Macmillan

As the Chair and Vice Chair were unable to be at the meeting the Company Secretary called for

nominations to Chair the meeting. Alasdair Mackenzie nominated Mairi Bremner. Mrs Bremner

accepted the nomination and passed on best wishes to the Chair and Vice Chair on behalf of the

Board.

The Company Secretary advised that Mr Kevin Paterson had not sought re-election to the Board. Mrs

Bremner thanked Mr Paterson for his contribution to the Board.

PRELIMINARY PROCEDURAL MATTERS

2

Declaration of Interest

Mairi Bremner declared an interest in Item 7.

3 Minute of Board Meeting 27 June 2018

The minute of the Board meeting of 27 June 2018 was submitted and approved as a true and accurate

record of the proceedings of the meeting.

4 Action Sheet

Item 23

The Director of Operations advised that the remaining tenants at Braehead had taken up new tenancies

and therefore HHP would shortly have vacant possession of the properties.

The Action Sheet was noted.


The date of the next meeting will be 30 August 2018 following the AGM and 20 November 2018 in Barra.

6 Health & Safety

There was nothing to report.

Agenda Item 3

ITEMS FOR APPROVAL

7 Board Member Appointment

Ms Fiona MacLeod had indicated that she was interested in joining HHP’s Board. Ms MacLeod, who is

from the island, had worked in both public and voluntary sectors for a number of years and had

considerable knowledge to draw upon in the fields of Governance, local and community planning and

development.

The appointment as a Board Appointed Member in accordance with HHP’s Rules and for a period of two

years with immediate effect was proposed and agreed.

Fiona Macleod joined the Board at this point after signing the Code of Governance.

Mrs Bremner left the meeting during the following discussion.

In accordance with the Regulatory Standards of Governance and Financial Management a governing

body: “must be assured that any member seeking re-election after nine years’ continuous service is able

to demonstrate their continued effectiveness…”

On 17 September 2018 Mrs Bremner will have served on the Board for nine years continuously.

Rule 39.1 states that the two longest serving Tenant and Community Board Members must resign each

year at the AGM. Mrs Bremner was not required to stand down this year, but the Board’s approval would

be required prior to 17 September 2018, to enable her service beyond the nine year limit.

The Board considered the benefits of Mrs Bremner continuing as a Board Member and agreed that she

had demonstrated her continued effectiveness.

The Board:

a) approved Ms Fiona MacLeod’s appointment to HHP’s Board for a period of two years as a Board

Appointed Member with effect from 29 August 2018;

b) approved Mrs Mairi Bremner’s continued service to the 2019 AGM as a Community Board

Member; and

c) noted the composition of the Board for the 2018/19 session.

8

Governance Report

The report assured the Board that the requirements of the Rules in respect of minutes and books of

accounts as set out in Rule 62 had been complied with for the year 2017/18. The report also detailed the

five proposed local charities which would be recommended to the AGM to receive a share of £5,000 of

the surplus as agreed at the Board meeting of 27 June 2018.

The Board:

a) noted that the Partnership has complied with Rules 62 to 67 for the year 2017/18;

b) approved the 5 charities:

Autism Eilean Siar;

Caraidean Uibhist

Cobhair Bharraigh

Eilean Siar Foodbank; and

Western Isles Kidney Patients’ Association

be proposed at the AGM on 30 August 2018 to each receive £1,000; and

c) approved the Draft 2019 Timetable for Board Meetings.

9 Board Development Plan 2019

The report outlined a timetable for the 2019 Board Development Assessment to be carried out.

The annual Board Member Skills Assessment was due to take place after the 2018 AGM. The Governance

Team will arrange individual meetings with Board Members to carry out the Assessments. Once the

outcome of the Skills Assessment is known, a Development Session will be held with the Chair and Chief

Executive. Following this any items arising from the session will be worked into a Training Plan and the

Board Development Plan for 2019 will be finalised and presented at the November 2018 Board Meeting.

The Board:

a) approved the Board Development Plan 2019 Assessment Timetable;

b) noted progress against the Board Development Plan 2018

c) agreed that a date for a development session led by the Chair in October or November 2018

would be discussed with the Corporate Governance Manager; and

d) delegated responsibility for finalising the 2019 Board Development Plan to the Chair and Chief

Executive.

10 Training Plan 2018/19

The report presented to the Board the updated Training Plan for 2018/19. The report also provided Board

Members with details of training undertaken, or in progress, for 2017/18.

Alasdair Mackenzie suggested that joint training with staff and Board Members would be more cost

effective and beneficial to Board Members and Staff. The Director of Finance & Corporate Services

advised that this would be carried out when appropriate and that joint training session had been

arranged previously.

The Board:

a) approved HHP’s updated Training Plan 2018/19 – 2020/21; and

b) noted the training completed in 2017/18.

11

Management Report

The Management Report for the month ended 30 June 2018 was presented to the Board for review.

The Director of Finance & Corporate Services advised that there were no significant variances to

highlight. There had been some slippage in the Development Programme and this was detailed at Item

22.

The report also sought approval to bring forward Capital Investment to this year from reserves to fund the

additional IT Data Hosting hardware. IT Data hosting had been procured earlier in the year, and whilst

savings would be achieved over the 4 year term of the contract, initial investment for additional

hardware was required.

The Board:

a) noted the management information at 30 June 2018; and

b) approved the additional IT Data Hosting Capital Investment requirement of £73K to be funded

from reserves.

12 Investment Programme Monitoring Report

The report provided an update on the 2018/19 Investment Programme.

The Board agreed in June 2018 to carry out external insulation works at Dunmore Crescent, Leverburgh

and this would be funded from the insulation budget. The cost of the works is unchanged. However,

£128k was required to be vired from the unallocated budget to fully fund the works. There was also a

requirement for a further £403k to be vired from the unallocated budget to carry out works identified

from the Stock Condition Survey.

Mairi Bremner enquired if the £148k to fund the insulation work would have any impact on the insulation

programme and the Director of Operations confirmed that the works are 100% grant funded but if there

were any additional funds required for insulation works a further report will come to Board for approval.

The Director of Operations further highlighted that the UK and Scottish Government have issued further

guidance concerning fire safety and flat and communal doors and that there may be a requirement for

works to be carried out which would be funded from the unallocated budget.

The Board:

a) Noted the 2018/19 Investment Programme progress and financial update; and

b) Noted the update on External Wall Insulation at Dunmore Crescent;

c) Approved the virement of £148k from the insulation budget and £128k from the unallocated

budget for external wall insulation at Dunmore Crescent; and

d) approved that £403k be vired from the unallocated budget to carry out works.

POLICIES

13 Code Of Conduct For Staff & Code Of Governance For Board Members

The report sought approval in respect of a revised Code of Governance for Board Members and Code

of Conduct for Staff.

Since the Codes were last approved in 2015, the SFHA had made some revisions to the Model Codes

upon which HHP’s Codes are based, and these had been incorporated accordingly. Further additions

incorporated in 2015 to strengthen HHP’s Governance arrangements were retained.

The Code of Conduct for Staff would be required to go out to consultation with staff and the Union,

therefore it was proposed that the draft Code of Conduct be approved to go out to consultation and

return to the Board for final approval in November 2018, subject to any changes suggested following the

consultation process.

The Board approved:

a) the revised Code of Governance for Board Members; and

b) the revised Draft Code of Conduct for Staff for consultation with staff and the Union.

MONITORING & UPDATE REPORTS

14 Tenant Satisfaction Survey

The report provided information on the key results of the 2018 Tenant Satisfaction Survey.

The Director of Operations advised that all results for ARC indicators included in the survey had improved

since 2015, the 2 areas identified in the 2018 Regulation Plan had both increased significantly and overall

satisfaction increased from 83% to 88%.

Alasdair Mackenzie enquired why the percentage of tenants who took part in the survey was not

included in the Homeward newsletter. The Director of Operations advised that only the headline figures

were included in the latest edition of the newsletter and that more detailed figures would be included in

the next edition. A more detailed report giving contextual and household information would also be

presented to Board Members at the Business Planning Day.

The Board noted:

a) the key findings from the 2018 Tenant Satisfaction Survey and the improvement in overall

satisfaction from 83% to 88%; and

b) the improvement in the areas of performance highlighted in the 2018 Regulation Plan.

15 Alasdair Mackenzie left the meeting prior to the discussion of this item.

Stock Condition Survey

The near final draft of the Stock Condition Survey was presented to the Board for information. The

Director of Operations advised that report was still being reviewed in terms of quality assurance issues

and data but that indications were that there were no issues that could not be dealt within the current

investment budget framework. As part of the Stock Condition Survey a short interview was conducted

on Fuel Poverty which showed figures have fallen significantly in the past 5 years although they are still

very high in national terms. The 4 year Investment Programme will come to the November Board based

on the results of the Stock Condition Survey.

The Board noted the Stock Condition Survey.

16 Business Plan Monitoring Report

The report provided an update on the Business Plan Action Plan agreed in March 2018. The Chief

Executive advised that, following the Business Planning Day, how actions are reported to the Board

would be reviewed.

The Board noted the progress in the Business Plan Objectives Monitoring Report.

17 Quarterly Treasury Report to 30 June 2018

The report informed the Board of the Treasury Management activities of the first quarter of 2018/19. The

Director of Finance & Corporate Services advised that there was no requirement to borrow during the

first quarter, which is in line with the Annual Financing Strategy for 2018/19. The cash balance of £9.622m

would reduce as larger developments are realised.

The Board noted:

a) the quarterly report on the Analysis of Investment and Borrowing;

b) the outstanding loans at 30 June 2018 of £4.95 million; and

c) the cash balance at 30 June 2018 of £9.622 million.

18 Welfare Reform

The report updated the Board on the preparatory work carried out for Welfare Reform.

Job Centre Plus confirmed that Full Service Universal Credit will commence on 26 September 2018 in the

Outer Hebrides. Work had been undertaken to ensure staff are familiar with processes etc. The

Department for Work and pensions (DWP) confirmed that HHP have been selected for enrollment onto

the Universal Credit-Trusted Partner Scheme and the UC Landlord Portal. This would allow the fast track of

some processes which would be of assistance to both HHP and their tenants.

The Lewis Area Manager provided Board Members with a brief overview of the processes involved. She

outlined some of the issues facing both HHP and tenants and the assistance being provided to tenants

during the transition period.

The Board noted the Welfare Reform update.

19 Tenant Participation Strategy 2016 – 2020 Update

The report presented Board Members with an update on the Tenant Participation Strategy and the

progress of the delivery of the Action Plan. There had been significant tenant engagement carried out

over the year by the Tenant Participation Officer and the Tenant Forum.

The Board noted the progress with the Tenant Participation Action Plan.

Chairperson Mr Norman M Macleod

SIGNED ………………………………………………………

DATE ………………………………………………………

HEBRIDEAN HOUSING PARTNERSHIP Board Minutes of Meeting held on Thursday 30 August 2018 @ 1.15pm in Town Hall, Stornoway

ITEM DISCUSSION

PRELIMINARY PROCEDURAL MATTERS

1 Attendance & Apologies

Present Apologies Staff & Consultants In Attendance

Iain Macmillan Norman Macleod Dena MacLeod Mairi Bremner John Mitchell John MacIver Alasdair Mackenzie Calum Mackay Donald Macleod David Blaney (via Skype) Roddy Mackay Angela Smith Fiona Macleod Iona France Dolene Smith Alex Gardner

Declaration of Interest

There were no interests declared.


The date of the next meeting will be 20 November 2018.

MANAGEMENT

4 Election of Chair

The Company Secretary called for nominations for the Chairperson’s position following the AGM held earlier in the day.

Norman Macleod was nominated by Alasdair Mackenzie and this was seconded by John Mackay.

There were no other nominations. Norman Macleod was appointed to the position of Chairperson in his absence.

The Company Secretary called for nominations for the position for Vice Chair.

Calum Mackay was nominated by Mairi Bremner and this was seconded by Alasdair Mackenzie.

There were no other nominations. Calum Mackay was appointed to the position of Vice Chairperson in his absence.

5 Election to Standing Committees

The Company Secretary called for nominations to the Audit & Risk Committee. Six Board Members are required to sit on Committee.

It was agreed that those who currently sit on the Audit & Risk Committee should remain on the Committee. There were 2 vacancies on the Audit & Risk Committee.

The current Members are:

Mairi Bremner;

Calum MacKay;

John Mitchell; and

Roddy Mackay.

David Blaney and Dolene Smith were appointed to sit on the Audit & Risk Committee.

Agenda Item 3

6 Work Groups

There were currently vacancies on several Work Groups and it was agreed that the Work Groups would be as follows:

Development

Norman Macleod;

John Mackay;

Alasdair Mackenzie;

John Mitchell; and

Fiona Macleod.

Investment

Alasdair Mackenzie;

Mairi Bremner;

Calum Mackay;

Roddy Mackay; and

David Blaney.

Finance

Iain Macmillan;

Calum Mackay;

Alasdair Mackenzie;

Norman Macleod; and

Alex Gardner.

Housing Management

Alasdair Mackenzie;

Mairi Bremer;

Calum Mackay;

Alex Gardner;

Dolene Smith.

Remuneration Work Group:

Mairi Bremner;

Iain Macmillan;

Calum Mackay;

Norman Macleod; and

Alex Gardner.

7 Alex Gardner was appointed as Spokesperson for Tenant Liaison and Housing Management. There were no changes to the other Spokespersons.

Chairperson Mr Norman M Macleod

SIGNED ……………………………………………………….

DATE ……………………………………………………….

Action Point

MINUTE NUMBER ACTION TO BE TAKEN DEADLINE/

TIMESCALE ACTION BY PROGRESS

1 29 Aug 18

(1)

Chief Executive to write to Kevin Paterson to thank him for his contribution.

Chief Executive Done

2 29 Aug 18

(8)

Arrange for charity cheques to be presented following AGM 30 November 2018

Corporate Governance

Manager

Date agreed for 2nd November in Stornoway and Southern Isles presentation to coincide with Board meeting on 20th November.

3 29 Aug 18

(9)

Arrange Skills Assessment with Board Members.

Development Session to be arranged to be held with Chair and Chief Executive prior to finalising the Board Development Plan.

30 Sept 2018

5 November 2018

Corporate Governance

Manager

Chief Executive

Carried out with 10 of 12 Board Members. Report on Agenda.

To arrange prior to November Board Meeting.

4 29 Aug 18

(11)

Bring forward investment to IT Data Hosting budget. Director of Finance & Corporate Services

Done

5 29 Aug 18

(12)

£148k to be vired from the insulation budget and £128k from the unallocated budget for external insulation works at Dunmore Crescent

£403k to be vired from unallocated budget to carry out works identified by Stock Condition Survey.

Director of Finance & Corporate Services

Done

6 29 Aug 18

(12)

Staff Code of Conduct to be issued for consultation with Staff and Union.

28 Sept 2018 Corporate Governance

Manager

Issued with return by 28 September 2018. On November Agenda.

7 29 Aug 18

(13)

Detailed information on Tenant Satisfaction Survey in December 2018 of Newsletter.

Detailed report giving contextual and household information to Business Planning Day.

31 October 2018

Director of Operations

Planned for December 2018.

Final report to be issued to Board Members November 2018.

Board Action Sheet

Agenda Item 4

Action Point



8 29 Aug 18

(15)

4 Year Investment Programme Report to November 2018 Board 5 November 2018


Report on agenda.

9 29 Aug 18

(16)

Business Plan Monitoring Report to be reviewed following Business Planning Day.

Chief Executive Will be done after 1 April 2019.

10 27 June 18

(11)

Investment Programme procurement be progressed as per report prepared by ALT.


Report on agenda.

11 27 June 18

(15)

Business Planning Day timetable to be prepared after AGM and to run over a 3 month period.

31 Aug 2018 Chief Executive First meeting held on 31 October 2018. Tenant meetings scheduled throughout November.

12 27 June 18

(16)

Review Financial Regulations following conclusion of Pay & Grading Review.

28 Feb 2019 Director of Finance & Corporate Services

13 28 June 18

(17)

Review rechargeable repairs budget. 31 Oct 2018 Director of Finance & Corporate Services

Review undertaken with some costs reallocated to voids. Potential virements needed with respect ot full year out-turn.

14 27 June 18

(18)

Report to Investment Working Group on continuous Investment Programme with no break at year end.

Nov 2018 Director of Operations

Planned for future meeting.

15 23 May 2018

(12)

Begin discussions with Union Technical on a Warm Homes Fund Bid.

Provide figures showing how much has been spent on Fuel Poverty.

Nov 2018

Investment Manager

Discussions in progress.

Information being compiled.

16 23 May 2018

(15)

Full review of Development Policies. 30 Nov 2018 Development Manager

In progress.

17 21 Mar 18

(18)

Policies which address safeguarding are to be reviewed on an annual basis to confirm remain compliant with OSCR and a report to go to November Board.

20 Nov 18 Corporate Governance

Manager

On agenda.

Action Point



18 15 Nov 17

(11)

Arrange for Gas Audit to be carried out on an Annual basis. 31 Aug 2018 Director of Operations

Completed August 18. Report on agenda.

19 15 Nov 17

(20)

Training on void loss accounting to be arranged. 30 November 2018

Director of Finance & Corporate Services

To be arranged alongside financial training requested by Board Members following the Board meeting on 20 November 2018.

20 28 June 17

(8)

Report to September Board on Subsidiary activities. 27 June 2018 Director of Finance & Corporate Services

Subsidiary meeting held on 26 June 2018 to sign accounts. Options with regards to potential activities were highlighted & three options were to be explored further with findings to be presented in 3 months time.


Angela Smith 30-Oct-18

ITEM NO 7

BOARD SKILLS ASSESSMENT TRAINING PLAN

Board 20 November 2018

Report by Chief Executive

Purpose of Report

1.1 This Report advises of the outcome of the Board Skills Exercise that was carried out in

September and October 2018 and details a training plan which arose from Board

Members’ responses, in addition to recommending a further Development Session for

the Board prior to the end of 2018.

Summary

2.1 In accordance with the Scottish Housing Regulator’s Regulatory Standards of

Governance and Financial Management, the Board needs to “assess annually the

skills, knowledge, diversity and objectivity that it needs for its decision-making, what is

contributed by continuing governing body members, and what gaps there are that

need to be filled.”

2.2 A skills assessment exercise with 10 out of 12 Board Members took place in October

2018. Results were collated and reviewed, and a Draft Training Plan, prepared in line

with identified needs, is outlined at Appendix 1.

2.3 The outcome from the Skills Assessment, in addition to a further development session

led by the Chair, will be used to populate the 2019 Development Plan for the Board.

Competence

3.1 The legal, financial, or other constraints arising from the recommendations to this

report being implemented are detailed at 5.1 – 8.1.

Recommendations

4.1 It is recommended that the Board:

a) approve the Training Plan at Appendix 1;

b) agree a date for a further development session led by the Chair before the

end of 2018 from the list at 13.1; and

c) delegate responsibility for finalising the 2019 Board Development Plan to the

Chair and Chief Executive.

APPENDIX 1 Draft Board Training Plan and Timetable 2018

Background Papers Regulatory Standards of Governance and Financial Management

Writer of Report Angela Smith Tel: 0300 123 0773


Competence

Financial

5.1 There will be a financial cost to the implementation of the Board Training Plan which

will be borne from existing budgets. The allocation for Board Training for 2018/19 is

£7,000 and it is anticipated that a similar amount will be made available for the

coming financial year.

Legal

6.1 There is a regulatory requirement to carry out a skills assessment and provide ongoing

training to Board Members in order to sustain their continued effectiveness.

6.2 Any training undertaken by Board Members will be in accordance with HHP’s Training

Strategy.

Regulatory Guidance

7.1 The relevant Regulatory Standards are:

Standard Sections

6 The governing body and senior officers have the skills

and knowledge they need to be effective.

6.1, 6.2, 6.3

Risk

8.1 Governance of the Partnership is critical to its long term viability. Carrying out skills

assessments helps to ensure that the Board has the skills, knowledge and diversity it

needs to provide capable leadership, control and constructive challenge to achieve

the RSL’s purpose, and helps to mitigate the risk of not delivering good tenant

outcomes or manage the Partnership’s affairs.

8.2 Recruitment of Governing Body Members is detailed at number 11 on the Risk

Register.

Report Details

Skills Assessment

9.1 A skills assessment took place with Board Members in September and October.

9.2 Board Members were asked to respond to two surveys:

The first with 20 questions on skills and experience relating to HHP and the

environment in which it operates: 18 on a scale of 1-5, where 5 is the highest

skill and 1 is the lowest, and 2 direct responses. They were asked to evidence

any answer they gave, and also to quality it if they wished. The questions

related to Expertise, Partnership, Customer Focus and Integrity; and

The second had 18 areas of housing knowledge and experience and 15 areas

of housing skill and experience, in which they were asked to assess their skill

and experience as good, some or require training, and then determine the

importance of any required training on a scale of 1-3.


9.3 Board Members generally scored themselves as “good” or “very good” against the

first question set, which is what might be expected considering the length of service

many have now given housing in the islands.

9.4 The second question set teased out any areas of training need. Any areas in which

more that four Board Members indicated they would benefit from training has been

worked into the Training Plan at Appendix 1, in addition to any common areas of

training requested.

9.5 In accordance with the way Board Members responded the areas that have been

earmarked for training are:

Housing Allocations;

Homelessness;

Housing Options;

Finance;

IT/Tablet;

Measuring Performance;

New Build & Housing Development;

Housing Legislation; and

Welfare Reform.

Board Training Plan 2019

10.1 A draft Training Plan and Timetable has been prepared at Appendix 1 which draws in

the above elements. There will be a mix of in-house and external training made

available and all training will be tailored to the strategic requirements of the Board.

10.2 Board Members were advised that if they became aware of particular training

requirements throughout the year, these could be raised with the Company Secretary

and worked into the plan accordingly.

10.3 Should the Board approve this plan the Governance Team will source training and

firm up dates accordingly.

Personal Training Plans

11.1 The Governance Team will get in touch with each of the Board Members to discuss a

training plan personalised to their needs, where collective training has not been

arranged but they have identified a requirement. Personalised training may take a

variety of formats, which may include online training, or face-to-face training with

staff.

2018 Training Plan

12.1 Only one third of the planned training sessions from the 2018 plan took place. This was

largely due to Board Members’ geographical or time constraints, and prior

commitments, which made it difficult to arrange training. We will consider a range of

options for the coming year to maximize the amount of training we can offer to Board

Members, which may include online training sessions, or smaller group training. We will

give as much notice as possible for formal training sessions organised with external

trainers, and consider the recording of such sessions for any Board Members who

can’t be present.

Board Development Session

13.1 The Board is asked to agree a date prior to the end of 2018 for a Board Development

session led by the Chair who will be assisted by the Chief Executive. A list of dates is

detailed below, and the Board will be asked at the meeting to indicate which date is

most suitable:


Tuesday 11 December, 10-12am;

Wednesday 12 December, 10-12am; or

Thursday 13 December, 2-4pm.

13.2 Following this Development Session, any further items arising can be worked into the

timetable at Appendix 1 and the Development Plan for 2019 will be finalised and

distributed.

APPENDIX 1

2018

Training Inhouse / External Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

Business Planning

1 Development Session to be held with Board

2 Tablet & IT

3 Finance

4 Homelessness

5 Housing Allocations

6 Housing Options

7 Welfare Reform

8 New Build & Housing Development

9 Measuring Performance

Following AGM - 2020 Skills Assessment Cycle Commences AGM

Draft 2019 Training & Development Plan & Timeline

2019


Donald Macleod 29-Oct-18

ITEM NO 9

BUDGET TIMETABLE 2019/20


Report by Director of Finance & Corporate Services

Purpose of Report

1.1 To present to the Board a Budget Strategy for 2019/20 including rent consultation for

consideration and approval.

Summary

2.1 The Partnership prepares long term financial plans which are updated on an annual

basis to take account of changes. The plans are for 30 years. Shorter term plans are

also prepared for submission to the Scottish Housing Regulator; they cover a 5 year

period.

2.2 A Strategy has been prepared for 2019/20 and is at Appendix 1.

2.3 The timetable to ensure the 2019/20 rents are set within statutory timescales is

included in the Budget Strategy.

Competence

3.1 Financial and legal constraints arising from the recommendation to this report being

implemented are detailed at 5.1 – 6.3.

Recommendations

4.1 It is recommended that the Board approve the 2019/20 Budget Strategy for

consultation, including the budget timetable.

APPENDIX 1: 2019/20 Budget Strategy

Background Papers: None

Writer of Report: Donald Macleod Tel: 0300 123 0773


Competence

Financial

5.1 This report considers the financial resources the Partnership requires for 2019/20.

Legal

6.1 The Partnership’s Rule 69 states that “The Partnership must keep proper books of

account to cover its income, expenditure transactions and its assets, liabilities and

reserves in line with section 75 and 76 of the Co-operative and Community Benefit

Societies Act 2014. It must also set up and maintain a suitable system for controlling its

books of accounts, its cash and its receipts and invoices.”

6.2 The Board has the ultimate responsibility for the Partnership’s finances and in

accordance with the Financial Regulations the Board has the responsibility to

approve annual budgets.

6.3 The Finance Working Group’s remit includes reviewing the details of the annual

budget on behalf of the Board.


Standard Sections

3 The RSL manages its resources to ensure its financial well-

being and economic effectiveness.

3.1

Risk

8.1 The major risk to the setting of budgets is the impact of the fluctuating current

economic environment on tenants and contractors which impacts directly on the

Partnership’s cash flow.

8.2 A number of risks which may impact the setting of budgets have been identified in

our risk register and these include the Affordability of our rents, Implementation of

Universal Credit, Brexit and Repairs Overspend. These are continually monitored with

potential mitigation actions being put in place where appropriate.

BUDGET STRATEGY 2019/20

APPENDIX 1

1 | P a g e

TABLE OF CONTENTS

INTERPRETATIONS & ABBREVIATIONS

TABLE OF CONTENTS ............................................................................... 0

BACKGROUND ....................................................................................... 2

OPERATING ENVIRONMENT ...................................................................... 2

2019/20 BUDGETS ................................................................................... 3

LONGER TERM PLANNING HORIZONS ........................................................ 3

DRIVING EFFICIENCY GAINS .................................................................... 4

EFFECTIVE RISK MANAGEMENT ................................................................. 4

KEY ASSUMPTIONS .................................................................................. 4

APPENDIX 1 BUSINESS PLANNING CYCLE .................................................. 5

APPENDIX 2 BUDGET TIMETABLE .............................................................. 6

2 | P a g e

BACKGROUND

1.1 The Partnership prepares long term financial plans which are updated on an annual

basis to take account of changes. The plans are for 30 years. Shorter term plans

are also prepared for submission to the Scottish Housing Regulator; they cover a 5

year period.

1.2 A new 5 year Business Plan will be prepared to cover the period 2019/20-2023/24

and will be presented to the Board in February 2019.

1.3 The Board approved a 30 year business plan in March 2018 that was submitted to

our Funder in March 2018 for approval. The amount of money which the

Partnership can borrow in any given financial year is determined by the 30 year

business plan.

1.4 The Board sets the rent on an annual basis, generally in February and at the same

time the detailed annual budget for the coming financial year is approved. The

rents for 2018/19 were set for one year on an RPI only basis.

1.5 The Board and the Executive team have committed to have an agreed

implementation plan for the restructure of rents in place by 31 December 2020.

OPERATING ENVIRONMENT

2.1 The Business Plan will be updated in February 2019 to cover the following 5 years

and will outline in detail the challenges, opportunities and responsibilities facing

the Partnership over that time. The assumptions used in the 2019/20 budget will

be updated to reflect any changes in the revised business plan objectives. The

current business plan objectives are summarised in the table below for reference:

2.2 The budget strategy will remain focused on rent affordability, investing in tenants

homes to ensure government standards for energy efficiency are met, and

providing long term security for tenants.

2.3 The economic and political landscape over the last 12 months remains challenging.

One significant challenge is the long term population forecast for the Outer

Placing tenants at the centre

Investing in a sustainable way in tenants homes

Delivering continuous improvement over time

Providing efficient, effective housing services of the highest

quality whilst keeping rents affordable

Being a good employer that attracts and retains high quality

staff

Delivering Value for money

Making the biggest impact on the economic well being of

communities throughout the Outer Hebrides that resources

will allow

3 | P a g e

Hebrides which is showing a projected decline of 14% over the next 20 years. The

Board are working with key partners in the community to try and prevent the

forecast turning into a reality with representation on various strategic committees

for example the Community Planning Partnership.

2.4 The key considerations which the strategy will take into account:

a) Impact of BREXIT;

b) Long term population forecasts for the Outer Hebrides;

c) Universal Credit;

d) Rent affordability & fuel poverty;

e) Impact of weather on repairs budgets;

f) Driving efficiency gains;

g) Government standards for providing energy efficient heating systems;

h) Changes in health & social care provision;

i) The large increase in the Scottish Government development grant and the

number of units to be built as per the CNES SHIP will be modelled; and

j) Changes in Housing Quality and Safety Standards, particularly in the wake of

Grenfell.

2.5 The Bank of England has increased the base rate of interest by 0.5% to 0.75% in the

last 12 months to help combat the steady increase in inflation.

2019/20 BUDGETS

3.1 The 2019/20 budget is drawn from Year 2 of the 30 year forecasts included in the

Business Plan approved in March 2018. The budget will take account of the

proposed rent increase in April 2019 which is based on RPI +0.5%, with alternative

options also being reviewed.

3.2 Budget Managers will be provided with Cash Planning Limits for the service areas

they are responsible for and they are required to keep their planned budgets within

the Cash Planning Limits.

3.3 Draft budgets will be prepared for discussion with tenants groups. Where possible

the budgets will be broken down by geographical area to enable tenants to see

where funds are raised and spent.

LONGER TERM PLANNING HORIZONS

4.1 The Partnership’s resources are targeted to meet legal requirements and deliver

business plan objectives.

4.2 The 30 year plan will be updated and presented to the Board in February 2019.

Some of the key considerations to be captured in the 30 year plan are as follows:

Continued investment in housing stock

Delivery of a development program in line with the SHIP

The potential of long term voids increasing due to falling demand

4 | P a g e

Rent Restructuring to be in place by 31 December 2020

The ending of the VAT agreement within the next 2-4 years

4.3 The Board will ensure the Partnership always lives within its means and does not

put the long term security of the organisation at risk by keeping growth under

control and spending the funds as effectively as possible to support the most

vulnerable remaining in their homes.

4.4 The 30 year financial plans will be updated annually to take account of major

changes during the year. A copy of the revised business planning timetable is at

Appendix 1.

DRIVING EFFICIENCY GAINS

5.1 HHP are developing a Value for Money (VFM) strategy and have participated in the

SHN VFM benchmarking survey. The results of this survey will assist in establishing

a VFM strategy.

5.2 Financial information including budgets will be at a sufficiently detailed level to

enable efficiency gains to be clearly demonstrated and reported at a number of

levels.

5.3 Post-implementation reviews of strategies which promised to deliver efficiencies

will be carried out to ensure that the efficiencies are recognised and that lessons

are learnt from mistakes which cost the organisation money.

EFFECTIVE RISK MANAGEMENT

6.1 The Risk Appetite is set by the Board on an annual basis as part of its business

planning process and this is reflected in both the long and short term budgets for

the Partnership.

6.2 The risks identified in the risk register have been taken into account in the

financial plans.

6.3 Assess the possibility of self-insurance for some low level risks.

KEY ASSUMPTIONS

7.1 The key assumptions will be updated during December to enable preparation of the

2019/20 budgets.

7.2 The timetable for the preparation of the budgets is at Appendix 2.

HHP is a registered society under the Co-operative and Community Benefit Societies Act 2014, Registered Number: 2644R(S),Registered Office: Creed Court,

Gleann Seileach Business Park, Willowglen Road, STORNOWAY, Isle of Lewis HS1 2QP. It is a charity registered in Scotland, Charity Number:SCO35767, registered as

Registered Social Landlord with the Scottish Housing Regulator, Registration Number:359 and registered as a Property Factor, Registration Number PF000183

Email: [email protected]

Web: www.hebrideanhousing.co.uk

Phone:0300 123 0773

mailto:[email protected]

http://www.hebrideanhousing.co.uk/

5 | P a g e

APPENDIX 1 BUSINESS PLANNING CYCLE

Timescale Task Details

December 30 year

Cashflows

Updated for

a) Year 1 figures taking into account the

latest forecasts in November

management report

b) Material changes to global assumptions

inflation

interest rates

grant levels

tax

income (benefits)

c) Materials changes to

investment plan

repairs costs

development plan

rental income

Dec/Jan Rent consultation Consultation with tenants on proposed

rent increase and rent guarantee

(when applicable)

January Budget Strategy Updated to reflect 30 year cash flows

and business planning day

Strategy will include proposals for rent

guarantee and service levels

March Business Plan Board approve revised business plan

and 30 year cash flows for the following

financial year

April Submit annual business plan together

with 30 year cash flows to RBS

May RBS approval of business plan and

covenants for the new financial year

June Submission to SHR of 5 year return + 30

year cash flows based on what was

submitted to RBS

6 | P a g e

APPENDIX 2 BUDGET TIMETABLE

Area Task Responsible Timescale

Preparation Review options for rent

setting & approve

methodology for rent

consultation

Finance Working

Group

December 2018

Update 30 year Business

Plan

Chief Executive 28 January 2019

Collation Preparation of the

Consultation document

& First pass review with

Tenant Participation

Officer

Finance & Business

Services Manager

December 2018

Review Executive Team Executive Team 07 January 2019

Finance Working Group

(Rent Setting)

Board W/b 14 January

2019

Finance Working Group

(30 Year Business Plan)

Board January /

February 2019

Consultation Consult with Tenants on

2019/20 Rent increase

Executive Team 08 January 2019

to 31 January

2019

Approval Board approval of

2019/20 Rent Increase &

updated 30 year

business plan

Board 13 February 2019

Implementation Detailed Investment

Budgets

2019/20

Director of

Operations

21 January 2019

Detailed Development

Budgets for 2019/20

Development

Manager/Fixed

Asset Accountant

21 January 2019

Update Ledger with

detailed budgets

Finance & Business

Services Manager

18 February 2019

Update Management

Reporter

Finance & Business

Services Manager

11 March 2019

Prepare Budget Book Finance & Business

Services Manager

15 March 2019

New Rents to be

implemented

Executive Team 01 April 2019


Katia Petteloot 1 November 2018

ITEM NO 10

MANAGEMENT REPORT TO 30 SEPTEMBER 2018


Report by Director of Finance and Corporate Services

Purpose of Report

1.1 To present the Management Report for the month ended 30 September 2018 to the

Board for review.

Summarys’

2.1 This is the Management Report to 30 September 2018 and the information is

presented in compliance with regulations to provide Board Members with assurance

that expenditure is within approved budgets and income collected is on target. A

copy of the report is at Appendix 1.

2.2 Forecast out-turn for the year is in line with RBS approved Financial Covenant with no

material variances to highlight at this stage.

Competence

3.1 The legal, financial or other constraints to any recommendation in this report are

contained in Paragraphs 5.1 to 6.1.

Recommendations

4.1 It is recommended that the Board:

a) note the management information at 30 September 2018 as detailed in

Appendix 1; and

b) approve a virement of £95k from rent void loss and handymans budget to

responsive repairs.

APPENDIX1: Management Report to 30 September 2018


Writer of Report: Katia Petteloot Tel: 0300 123 0773

Katia Petteloot 1 November 2018

Competence

Financial

5.1 The Board approved budgets for 2018/19 in February 2018 which projected a surplus

for the year of £2,252,038. The forecasted out turn is £2,543,108.

5.2 The higher forecast out-turn is mainly driven by the additional RSL Adaptations funding

of £293K for 2018/19.

Legal

6.1 The following Partnership rules are applicable:

a) Rule 69 - The Partnership must keep proper books of accounts to cover its

income, expenditure transactions and its assets, liabilities and reserves in line

with Part 7 of the Co-operative and Community Benefit Societies Act 2014. It

must also set up and maintain a suitable system for controlling its books of

accounts, its cash and its receipts and invoices.

Regulatory Guidance


Standard Sections

2 The RSL is open and accountable for what it does. It

understands and takes account of the needs and

priorities of its tenants, service users and stakeholders.

And its primary focus is the sustainable achievement of

these priorities

2.1, 2.2, 2.4

3 The RSL manages its resources to ensure its financial

well-being and economic effectiveness.

3.1

Risk

8.1 The key risk is that HHP does not meet its Financial Covenants on an ongoing basis.

The covenant for 2018/19 has been formally approved by our Funders. The covenant

is forecast to be met in March 2019.

Report Details

Virements

9.1 The Forecast Out-Turn on responsive repairs is expected to be £95K over the revised

budget, based on spend in the next 6 months being in line with prior year spend in the

second half of the year.

9.2 A detailed review of repairs incurred to date is under way with an update to be

provided at the Board meeting.

Hebridean Housing Partnership Registered Scottish Charity SCO 35767

2018/19

Management Reports To 30 September 2018

APPENDIX 1

Hebridean Housing Partnership Management Reports

2

Introduction The Management Reports for 30 September 2018 are attached and if Board Members or

Managers have any areas of concern or would like additional information they should

contact the Director of Finance & Corporate Services.

The Management Reports are made up of three sections:

Section 1:High Level Summary

• Written by the Director of Finance & Corporate Services.This section shows in graphical format how HHP isperforming in relation to the annual budget for 2018/19.

Section 2:Management Accounts

• Prepared by the Finance and Business Services Manager.Provides an Income & Expenditure Account, Balance Sheetand detailed operational budgets for the period. TheManagement Acounts include a more detailed commentaryfrom Budget Managers on performance.

Section 3:Key Financial Performance Measures

• Prepared by the Finance and Business Services Managerincluding a review of Financial Covenants to provide theBoard with assurance that the Covenant for 2018/19 will notbe breached.


3

Section1-HighLevelSummary

Commentary on Performance by Director of Finance & Corporate

Services

The forecast out-turn being higher than the initial approved budget is mainly due to RSL

Adaptations funding of £293K for 2018/19. This is offset by £293K costs in Aid &

Adaptations which is reflected in the Investment programme and captured in Capital

Investment.

£

Initial approved Surplus 2,252,038

Virements 169,746

Virement/Adjustment current period 128,835

Revised Surplus 2,550,619

Changes identified this financial year

Changes to Income increases/(decreases) 62,489

Cost (increases)/decreases (70,000)

Depreciation -

Grant Amortisation -

Forecast Surplus to 31 March 2019 2,543,108

Increase in funds required to meet forecast out-turn 7,511


4

The financial covenant for 2018/19 has been approved by our Funders. The forecast shows

that the financial covenant will be met for the year ended 31 March 2019.


5

Section2ManagementAccounts

Page

Summary Income & Expenditure Account 6

Balance Sheet at 30 September 2018 7

Rental Income 8

Supervision & Management Costs 9

Repairs & Maintenance 10

Estate Works 11

Aids & Adaptations 12

Investment 13

Non-Housing Investment 14

Development 15


6

Income & Expenditure Account

For the period ended 30 September 2018

Commentary on Performance

The main point to note is

Line 1 Dwelling Rents

The Performance to date is above budget mainly due to better performance on Void loss of £62K, which is

recognized in the full year Forecast Out-Turn, and Bad Debts being below budget by £87K.

More detailed explanations of variances can be found on pages 8 to 14

Line BUDGET ACTUAL

Initial Revised to Spend to Budget Budget to Revised Revised Over/ at

Budget Budget 30-Sep-18 30-Sep-18 to date date Budget Budget (under) 31-Mar-19

£ £ £ £ £ % £ % £ £

1 Dwelling rents (net) 8,519,360 8,519,360 4,258,140 4,427,622 (169,482) -4% 4,091,738 48.03% 62,489 8,581,849

2 Non Dwelling rents (net) 13,630 13,630 6,890 9,635 (2,745) -40% 3,995 29.31% 13,630

3 Right to Buy Sales - 8,742 8,742 8,742 - - 0.00% 8,742

4 Grant Funding 120,000 554,000 290,000 285,523 4,477 2% 268,477 48.46% 554,000

5 Other Income 44,450 44,450 23,110 26,483 (3,373) -15% 17,967 40.42% 44,450

6 TOTAL INCOME 8,697,440 9,140,182 4,586,882 4,758,006 (171,124) -4% 4,382,176 47.94% 62,489 9,202,671

7 Supervision & Management 2,230,743 2,405,744 1,353,428 1,214,510 138,918 10% 1,191,234 49.52% 2,405,744

8 Response Repairs 1,372,065 1,410,235 565,365 666,073 (100,708) -18% 744,162 52.77% 70,000 1,480,235

9 Estate Works 171,320 171,320 49,480 66,313 (16,833) -34% 105,007 61.29% 171,320

10 Planned/Cyclical Maintenance 717,224 722,724 323,750 263,783 59,967 19% 458,941 63.50% 722,724

11 Total Operating Expenditure 4,491,352 4,710,023 2,292,023 2,210,679 81,344 4% 2,499,344 53.06% 70,000 4,780,023

12 Operating Surplus/(Deficit) 4,206,088 4,430,159 2,294,859 2,547,327 (252,468) -11% 1,882,832 42.50% (7,511) 4,422,648

13 Interest received 5,000 16,000 9,500 9,531 (31) 0% 6,469 40.43% 16,000

14 Interest paid 438,350 367,000 91,000 91,262 (262) 0% 275,738 75.13% 367,000

15 Surplus/(Deficit) 3,772,738 4,079,159 2,213,359 2,465,595 (252,236) -11% 1,613,564 39.56% (7,511) 4,071,648

16 Depreciation 2,720,700 2,757,988 1,351,603 1,351,603 - 1,406,385 50.99% 2,757,988

17 Grant Amortisation (1,200,000) (1,229,448) (613,823) (613,823) - (615,625) 50.07% (1,229,448)

18 Surplus/(Deficit) 2,252,038 2,550,619 1,475,579 1,727,815 (252,236) -17% 822,804 32.26% (7,511) 2,543,108

CAPITAL INVESTMENT

19 Housing Investment Programme 4,368,170 4,503,214 731,386 641,739 94,924 13% 3,861,475 85% 4,503,214

20 Non Housing Investment 76,035 191,272 121,337 10,973 110,364 91% 180,299 94% 191,272

21 Development Programme 3,442,785 3,164,477 1,054,288 561,550 492,738 47% 2,602,927 82% 3,164,477

7,886,990 7,858,963 1,907,011 1,214,262 698,026 37% 6,644,701 84.55% - 7,858,963

CURRENT YEAR BUDGET BUDGET VARIANCE BUDGET REMAINING FORECAST OUT-TURN


7

Balance Sheet at 30 September 2018


Note 1 Fixed Assets Fixed Assets are shown at gross cost and are reduced by the depreciation charge

for the period.

Note 2 Development The value of work in progress, net of Grant, on current properties and new

& Investment developments

More detailed information is available in the Performance Report.

Note 4 Cash HHP currently hold RTB receipts of £1.348 million. HAG of £148K with respect to

RTB properties disposed was repaid in September 2018.

30 September 2018 31 March 2018

£ £

Notes

Fixed Assets

1 Tangible assets-social housing 1 75,757,045 77,108,648

2 Development & Investment Programme 2 1,214,262

3 Tangible assets - property, plant and equipment 823,303 823,303

4 Landbank 691,166 691,166

5 Investments 3 2

78,485,779 78,623,119

Current Assets

6 Stock 241,633 241,633

7 Trade and other debtors due within one year 3 571,021 899,890

8 Debtors due after more than one year 190,711 190,111

9 Short-term deposits 4,192,852 4,062,896

10 Cash at bank and in hand 4 5,821,982 6,146,301

11 Loan to subsiduary 16,307 16,307

11,034,506 11,557,138

12 Creditors: amounts falling due within one year 5 (2,038,895) (2,501,253)

Net current assets 8,995,611 9,055,885

Total assets less current liabilities 87,481,390 87,679,004

13 Creditors: amounts falling due after more than one

year 6 (10,566,028) (11,877,636)

14 Deferred capital grants 7 (43,421,146) (44,034,969)

15 Pension Liability (1,136,000) (1,136,000)

16 Net Assets 32,358,216 30,630,398

Capital and Reserves

17 Share Capital 205 203

18 Revenue Reserve 32,358,011 30,630,195

32,358,216 30,630,398


8

Rental Income



Line 6 Total Income:

Bad Debts are 87K lower than budget and voids performance is better than forecast by £62K.

This contributes to the net income for the year to date being above budget.

The saving on voids is recognised in the Forecast Out-Turn.

Line BUDGET ACTUAL

Initial Revised to Spend to Budget Budget to Revised Revised Over/ at

Budget Budget 30-Sep-18 30-Sep-18 to date date Budget Budget (under) 31-Mar-19

£ £ £ £ £ % £ % £ £

1 Dwelling Rent Gross 8,882,800 8,882,800 4,441,500 4,461,288 (19,788) 0% 4,421,512 49.78% 8,882,800

2 Non Dwelling Rent Gross 15,090 15,090 7,680 10,347 (2,667) -35% 4,743 31.43% 15,090

3 Voids - Dwelling (181,040) (181,040) (91,500) (29,011) (62,489) 68% (152,029) 83.98% 62,489 (118,551)

4 Voids - Other (1,460) (1,460) (790) (712) (79) 10% (749) 51.27% (1,460)

5 Bad Debts (182,400) (182,400) (91,860) (4,655) (87,206) 95% (177,746) 97.45% (182,400)

6 TOTAL 8,532,990 8,532,990 4,265,030 4,437,258 (172,228) -4% 4,095,732 48.00% 62,489 8,595,478



9

Supervision & Management Costs


Commentary on performance

Line 6 Employee Costs

Year to date variance is driven by delays in awarding the annual pay award. Remainder of

difference driven by vacant posts.

Line 8 IT & Telecoms

Underspend is mainly driven by budget phasing in software.

Line 20 Professional Fees

Both Legal Fees (£27K) and Consultants Fees (£40K) are running below budget. Consultants Fees

includes a budget for Stock Condition Survey of £16K which is payable on completion of the

survey.

Line 28 Fees charged to Capital:

Investment Internal Fees are to be posted in October with budget phasing to be updated

accordingly.

Line Heading BUDGET Actual

Initial Revised to Spend to Budget Budget Revised Revised Over/ at

Budget Budget 30-Sep-18 30-Sep-18 to date to date Budget Budget (under) 31-Mar-19

£ £ £ £ £ % £ % £ £

1 Salaries and Wages 1,221,930 1,244,930 632,240 600,254 31,986 5% 644,676 52% 1,244,930

2 National Insurance 121,770 121,770 61,200 53,490 7,710 13% 68,280 56% 121,770

3 Pension Costs 220,250 220,250 110,400 106,209 4,191 4% 114,041 52% 220,250

4 Other Employee Costs 49,500 55,500 31,528 26,732 4,796 15% 28,768 52% 55,500

5 Travel & Subsistence 33,700 33,700 17,280 6,928 10,352 60% 26,772 79% 33,700

6 EMPLOYEE COSTS 1,647,150 1,676,150 852,648 793,613 59,035 7% 882,537 53% - 1,676,150

7 Premises Costs 47,900 47,900 25,660 23,688 1,972 8% 24,212 51% 47,900

8 IT & Telecoms 221,450 221,450 112,520 101,543 10,977 10% 119,907 54% 221,450

9 Area Offices 26,040 26,040 13,020 12,668 352 3% 13,372 51% 26,040

10 Payroll & Cashdesk 14,200 14,200 9,100 5,058 4,042 44% 9,142 64% 14,200

11 Property Management Fees 4,010 4,010 4,010 3,008 1,003 25% 1,003 25% 4,010

12 SUPPLIES & SERVICES 313,600 313,600 164,310 145,965 18,345 11% 167,635 53% - 313,600

13 Postage, Printing & Stationery 40,560 40,560 21,710 20,815 895 4% 19,745 49% 40,560

14 Admin Furniture & Equipment 3,000 3,000 1,560 382 1,178 76% 2,618 87% 3,000

15 Training Courses 50,250 50,250 25,320 16,662 8,658 34% 33,588 67% 50,250

16 Community Support 30,140 20,423 14,423 7,243 7,180 50% 13,180 65% 20,423

17 Health & Safety 9,250 9,250 4,720 1,268 3,452 73% 7,982 86% 9,250

18 Recruitment Costs 6,000 6,000 3,000 190 2,810 94% 5,810 97% 6,000

19 ADMINISTRATION COSTS 139,200 129,483 70,733 46,560 24,174 34% 82,924 64% - 129,483

20 Professional Fees 331,760 487,323 183,137 103,764 79,373 43% 383,559 79% 487,323

21 Insurance 238,600 238,600 119,580 118,883 697 1% 119,717 50% 238,600

22 Affliation Fees 44,620 46,775 24,310 18,489 5,821 24% 28,286 60% 46,775

23 Charitable Donations 5,000 5,000 - - - 5,000 100% 5,000

24 Governance 39,850 39,850 20,660 2,952 17,708 86% 36,898 93% 39,850

25 Bank Charges 9,500 9,500 4,800 3,339 1,461 30% 6,161 65% 9,500

26 Public Relations/Marketing 15,080 15,080 7,530 634 6,896 92% 14,446 96% 15,080

27 CORPORATE EXPENSES 684,410 842,128 360,017 248,061 111,956 31% 594,067 71% - 842,128

28 Fees charged to capital (543,117) (543,117) (86,280) (8,865) (77,415) 90% (534,252) 98% (543,117)

29 VAT Received - Partial Exemption (10,500) (12,500) (8,000) (10,823) 2,823 -35% (1,677) 13% (12,500)

30 RECHARGES (553,617) (555,617) (94,280) (19,688) (74,592) 79% (535,929) 96% - (555,617)

31

TOTAL SUPERVISION AND

MANAGEMENT COST 2,230,743 2,405,744 1,353,428 1,214,510 138,918 10% 1,191,234 50% - 2,405,744

CURRENT YEAR BUDGET BUDGET VARIANCE BUDGET VARIANCE forecast out-turn


10

Repairs & Maintenance


Commentary on performance

Line 1 Responsive Repairs:

The YTD variance on responsive repairs is unlikely to be recovered through the second half of the

year. The forecast out-turn has been increased by £95K based on spend in the second half of the

year being in line with prior year costs.

Line 2 Void Repairs:

The YTD variance on void repairs is driven by budget phasing and it is anticipated that we will be

within budget at the end of the year.

Line 18 Planned Maintenance:

Contractor programme has been agreed, underspend to date is due to budget phasing and will

be reviewed in October.

Line Heading BUDGET ACTUAL

Initial Revised to Spend to Budget to Budget to Revised Revised Over/ at

Budget Budget 30-Sep-18 30-Sep-18 date date Budget Budget (under) 31-Mar-19

£ £ £ £ £ % £ % £ £

1 Responsive Repairs 800,000 840,325 309,920 403,872 (93,952) -30% 436,453 52% 95,000 935,325

2 Void Repairs 264,000 264,000 102,460 137,804 (35,344) -34% 126,196 48% 264,000

3 Handymen 124,960 122,805 60,880 48,782 12,098 20% 74,023 60% (25,000) 97,805

4 GENERAL REPAIRS 1,188,960 1,227,130 473,260 590,458 (117,198) -25% 636,672 52% 70,000 1,297,130

5 Decoration Allowance 46,530 46,530 25,370 29,619 (4,249) -17% 16,911 36% 46,530

6 Council Tax empty properties 19,800 19,800 9,780 5,644 4,136 42% 14,156 71% 19,800

7 Minor Aids & Adaptations 500 500 200 651 (451) -226% (151) -30% 500

8 Compensation 10,195 10,195 10,195 1,600 8,595 84% 8,595 84% 10,195

9 SPECIFIC ITEMS 77,025 77,025 45,545 37,513 8,032 18% 39,512 51% - 77,025

10 Rechargeable Repairs 48,900 68,900 35,730 36,377 (647) -2% 32,523 47% 68,900

11 Rechargeable Repairs Recoverable (10,700) (30,700) (21,000) (20,860) (140) 1% (9,840) 32% (30,700)

12 Insurance Repairs 55,000 55,000 17,960 10,511 7,449 41% 44,489 81% 55,000

13 Insurance Claims Recoverable (17,500) (17,500) - - - (17,500) 100% (17,500)

14 RECOVERABLE EXPENDITURE 75,700 75,700 32,690 26,027 6,663 20% 49,673 66% - 75,700

15 Commercial Properties 1,200 1,200 600 - 600 100% 1,200 100% 1,200

16 Communal Lighting 29,180 29,180 13,270 12,074 1,196 9% 17,106 59% 29,180

17 NON DWELLING REPAIRS 30,380 30,380 13,870 12,074 1,796 13% 18,306 60% - 30,380

18 Planned maintenance 514,200 519,700 226,760 190,167 36,593 16% 329,533 63% 519,700

19 Gas Servicing 60,000 60,000 30,000 20,699 9,301 31% 39,301 66% 60,000

20 Estate Management 14,320 14,320 8,100 6,937 1,163 14% 7,383 52% 14,320

21 Other Servicing (incl. heating) 85,374 85,374 42,450 44,024 (1,574) -4% 41,350 48% 85,374

22 Stair Lifts and Door Entry Systems 2,080 2,080 1,100 1,778 (678) -62% 302 15% 2,080

23 Gutter Cleaning 32,400 32,400 14,640 - 14,640 100% 32,400 100% 32,400

24 Sewage Pumps 700 700 700 177 523 75% 523 75% 700

25 Dun Berisay Heat 8,150 8,150 - - - 8,150 100% 8,150

26 CYCLICAL MAINTENANCE 717,224 722,724 323,750 263,783 59,967 19% 458,941 64% - 722,724

27 TOTAL REPAIRS & MAINTENANCE 2,089,289 2,132,959 889,115 929,856 (40,741) -5% 1,203,103 56% 70,000 2,202,959

BUDGET VARIANCE BUDGET REMAINING FORECAST OUT-TURN

CURRENT YEAR

BUDGET


11

Estate Works

For the period ended 30 September 2018 Line Heading BUDGET ACTUAL



£ £ £ £ £ % £ % £ £

1 Garage Repairs 3,110 3,110 1,580 - 1,580 100% 3,110 100% 3,110

2 Unadopted Infrastructure 112,340 112,340 13,480 48,728 (35,248) -261% 63,612 57% 112,340

3 Grounds Maintenance 55,520 55,520 34,070 17,585 16,485 48% 37,935 68% 55,520

4 Paths 350 350 350 - 350 100% 350 100% 350

5 TOTAL ESTATE WORKS 171,320 171,320 49,480 66,313 (16,833) -34% 105,007 61% - 171,320


Line 2 Unadopted Infrastructure:

Overspend to date is mainly due to £12K invoice for drainage works at Riverview and £15K to

replace a burst pipe and reinstate groundworks at Dun Innes. It is anticipated that Unadopted

Infrastructure costs will be within budget as per Forecast Out-turn.


12

Aids & Adaptations





£ £ £ £ £ % £ % £ £

1 Minor Aids & Adapations - - - 651 (651) (651) -

2 Investment Programme

3 Aids & Adapations 120,000 413,000 200,000 144,275 55,725 28% 268,725 65% 413,000

4 Grants

5 Received (120,000) (413,000) (200,000) (144,593) (55,407) 28% (268,407) 65% (413,000)

6 TOTAL AIDS & ADAPTATIONS - - - 333 (333) 0% (333) 1% - -



13

Investment Expenditure



Line 6 OT Aid & Adaptations:

Additional spend of £293K is funded by government grants of the same amount.

Line 4 Kitchens:

Contracts have been awarded and the works are scheduled for the second half of the year.

Line 8 Heating:

Contracts have now been awarded and work has started.




£ £ £ £ £ % £ % £ £

1 Roofs 112,140 112,767 2,227 2,226 1 0% 110,541 98% 112,767

2 Insulation 148,057 283,207 - - - 283,207 100% 283,207

3 Total Roofs 260,197 395,974 2,227 2,226 1 0% 393,748 99% - 395,974

4 Kitchen 256,974 291,723 490 - 490 100% 291,723 100% 291,723

5 Bathrooms 198,450 142,829 55,937 36,145 19,793 35% 106,684 75% - 142,829

6 OT Aids & Adaptations 120,000 413,000 200,000 144,275 55,725 28% 268,725 65% 413,000

7 Showers 119,700 87,142 33,456 21,907 11,549 35% 65,235 75% - 87,142

8 Heating 1,731,598 1,858,257 251,031 251,032 - 0% 1,607,225 86% 1,858,257

9 Rewiring - 13,377 3,952 3,952 - 0% 9,425 70% - 13,377

10 Smoke/C02 Detectors 62,040 75,349 13,309 13,309 - 0% 62,040 82% - 75,349

11 Total Internals 2,488,762 2,881,677 558,176 470,619 87,557 16% 2,411,058 84% - 2,881,677

12 Windows 69,900 458,811 121,931 119,841 2,090 2% 338,970 74% 458,811

13 Roughcast house & wall 192,000 294,000 - - - 294,000 100% 294,000

14 Fencing 220,980 194,580 49,052 49,052 5,275 11% 145,528 75% - 194,580

15 Externals 412,980 488,580 49,052 49,052 5,275 11% 439,528 90% - 488,580

16

Total Investment excl. Unallocated

Exp/Efficiency Saving 3,231,839 4,225,042 731,386 641,739 94,923 13% 3,583,303 85% - 4,225,042

17 Unallocated Expenditure 1,136,331 278,172 - - - 278,172 100% - 278,172

18 Total Investment 4,368,170 4,503,214 731,386 641,739 94,924 13% 3,861,475 86% - 4,503,214



14

Non Housing Investment

For the period ended 30 September 2018 Line Heading BUDGET ACTUAL



£ £ £ £ £ % £ % £ £

1 Total Uist Office 3,500 3,500 - - - 0 3,500 0 - 3,500

2 Furniture & Fittings 6,100 13,600 13,600 - 13,600 100% 13,600 100% 13,600

3 Office equipment 3,050 3,050 - - 3,050 0% 3,050

4 IT equipment 63,385 171,122 107,737 10,973 96,764 90% 160,148 94% 171,122

5 Total Stornoway Office 72,535 187,772 121,337 10,973 110,364 91% 176,799 94% - 187,772

6 Total 76,035 191,272 121,337 10,973 110,364 91% 180,299 94% - 191,272


Line 4 IT equipment:

Forecast Out-Turn includes £73K for additional Capital Expenditure with regards to the new Data

Hosting solution with Castle.


15

Development Expenditure



Overall Spend to Date: The underspend to date is driven by delays in getting projects on site

e.g., Kit delivery delays at Stag Road and the re-tendering of Tarbert

Police Station.

Balivanich, Horgabost and Breasclete planning applications to be lodged

by the middle of November and the forecast out-turn has been

amended to reflect slippage on these projects.

Line BUDGET ACTUAL

Initial Revised Budget to Spend to Budget to Budget to Revised Revised Over/ at


£ £ £ £ £ % £ % £ £

1 New Build 8,029,177 7,477,672 3,464,248 2,767,524 696,724 20% 4,710,148 63% 7,477,672

2 Retentions 2,379 2,379 2,379 2,379 (0) 0% - 0% 2,379

2 LIFT 754,635 754,635 451,380 336,144 115,237 26% 418,491 55% 754,635

3 Unallocated 3,159,564 1,960,480 - - - 1,960,480 100% 1,960,480

4 Total Development Costs 11,945,755 10,195,165 3,918,007 3,106,046 811,961 21% 7,089,119 70% - 10,195,165

5 Housing Association Grant

6 New Build (4,643,970) (4,730,073) (2,647,719) (2,331,302) (316,417) 12% (2,398,770) 51% (4,730,073)

7 LIFT (216,000) (216,000) (216,000) (213,510) (2,490) 1% (2,490) 1% (216,000)

-

8 Other Grants & Sales proceeds -

8 LIFT Sales (336,700) (400,452) - - - (400,452) 100% (400,452)

9 Unallocated (3,306,300) (1,684,480) - (1,684,480) 100% (1,684,480)

10 Total Grants (8,502,970) (7,031,005) (2,863,719) (2,544,812) (318,907) 11% (4,486,192) 64% - (7,031,005)

11 Private Finance required

12 New Build 3,385,207 2,747,599 816,529 436,221 380,308 47% 2,311,378 84% - 2,747,599

12 Retentions 2,379 2,379 2,379 2,379 (0) 0% - 0% - 2,379

13 LIFT 201,935 138,183 235,380 122,634 112,747 48% 15,549 11% - 138,183

14 Development - Abortive Costs - 316 - 316 (316) - 0% - 316

15 Unallocated (146,736) 276,000 - - - 276,000 100% - 276,000

16 Private Finance required 3,442,785 3,164,477 1,054,288 561,550 492,738 47% 2,602,927 82% - 3,164,477



16

Section3:KeyFinancialPerformance

Measures

Page

Financial Covenants 17

Key Ratios 19

Right to Buy 20

Cash flow Forecast 21


17

Financial Covenants


The revised facility agreement with our Funders has one Financial Covenant, Interest

Cover. Where a deficit is projected in any financial year, the covenant is based on an

absolute sum rather than a percentage, so the covenant for 2018/19 is a maximum cash

flow deficit of £7,049,570. The financial covenant for 2018/19 has been approved by our

Funders. The covenant is forecast to be met in March 2019.

Interest Cover

Covenants for 2018/19 Deficit (£7,049,570)

Forecast to 30 September 2018 (£3,499,862)

Tolerance available £3,549,708

Reduction in expenditure required to achieve covenant £0


18

Annual Cash flow Deficit

Line Detail Current Position Forecast

Income £ £

1 Dwelling rents (net) 4,427,622 8,581,849

2 Non Dwelling rents (net) 9,635 13,630

3 Right to Buy Sales 47,000 -

4 Grant Funding 285,523 554,000

5 Other Income 26,483 44,450

6 Grant received for New Build 2,331,302 4,730,073

7 Sale of LIFT received - 400,452

8 Grant on LIFT received 213,510 216,000

9 Insurance Receipts - 17,500

10 Total Income 7,341,076 14,557,954

Expenditure

13 Supervision & Management 1,223,375 2,948,861

14 Response Repairs 666,073 1,480,235

15 Estate Works 66,313 171,320

16 Planned/Cyclical Maintenance 263,783 722,724

17 Investment Programme 632,874 3,960,097

18 Office Alterations and IT 10,973 191,272

19 LIFT Costs 336,144 754,635

20 Opening Balances

21 Development Costs 2,767,524 7,477,672

22 Total Expenditure 5,967,059 17,706,816

23 Net Operating Cashflow 1,374,018 (3,148,862)

24 Interest Paid 91,262 367,000

25 Interest Collected (9,531) (16,000)

26 Total Interest 81,732 351,000

27 Annual Cashflow Surplus/(Deficit) 1,292,286 (3,499,862)

Interest Ratio 6% -11%

Covenant Requirement

Maximum Annual Cashflow deficit (7,049,570) (7,049,570)

Tolerance 8,341,856 3,549,708

-254% -108%


19

Financial Ratios


Key RatiosCurrent Forecast 2017/18

Current Ratio 5.32 4.71 5.27

(Current Assets/Current Liabilities)

Net Debt Per Unit

Borrowing/ stock units £2,276.21 £2,279.98 £2,287.79

Voids% 0.66% 2.05% 0.83%

Voids as % of Rental Income Due

Bad Debts % 0.10% 2.05% 0.18%

Bad Debts written off as % of Rental Income Due

Staff Cost/Turnover % 16.68% 18.34% 17.15%

Gross Surplus 53.54% 48.45% 53.41%

Operating Surplus/Turnover

Net Surplus 36.31% 27.88% 36.19%

Net Surplus/Turnover

Cash Flow Forecast 2018/19

The above cash flow shows the actual income received and the payments made for the period to September 2018 with projections for the

remainder of the year.

Monthly Cash Flow Forecast

Year Ended 30-Sep-18 31-Oct-18 30-Nov-18 31-Dec-18 31-Jan-19 28-Feb-19 31-Mar-19 Total

31-Mar-19 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Cash on Hand at beginning of month 4,068,106 3,684,012 2,988,987 2,099,340 603,281 390,305 295,657 296,022

Cash Receipts

Rent 562,864 455,367 872,518 576,795 689,969 872,518 689,969 8,557,731

Sale of Assets - - - - 336,700 - - 405,900

Grant Income 440,871 338,837 460,733 854,517 242,017 67,847 4,301,100 9,006,878

Bank Interest - - - - - - - -

Insurance Claims - - - - - - - -

Other income 24,821 40,460 40,460 40,460 40,460 40,460 40,460 486,524

Transfer from Deposit - - - - - 200,000 1,100,000 1,300,000

Total 1,028,556 834,664 1,373,712 1,471,772 1,309,145 1,180,826 6,131,529 19,757,033

Total Cash Available 5,096,662 4,518,675 4,362,699 3,571,112 1,912,426 1,571,131 6,427,186

Cash Paid Out

Payroll 132,594 161,591 136,705 136,705 136,705 136,705 136,705 1,647,907

Management Costs 67,007 72,983 72,983 72,983 72,983 72,983 72,983 832,096

Repairs 342,080 169,635 169,635 169,635 169,635 169,635 169,635 2,135,114

Investment 148,619 436,126 1,153,953 695,822 534,535 286,994 466,813 5,260,196

Development 571,425 551,815 730,083 1,299,294 608,263 609,157 5,191,636 12,484,528

Total 1,261,726 1,392,150 2,263,359 2,374,439 1,522,121 1,275,473 6,037,772 22,359,842

Cash Paid Out (Non P & L)

Loan Interest - 93,393 - 93,393 - - 93,393 413,014

Deferred RTB Receipts 500,000 500,000

HAG Repayment 148,149 - - - - - - 148,149

Refunds 2,775 - - - - - - 10,284

Transfer to Deposit Account - - - - - - - 100,000

Total 150,924 137,538 - 593,393 - - 93,393 1,171,447

Total Cash Paid out 1,412,650 1,529,688 2,263,359 2,967,832 1,522,121 1,275,473 6,131,164

Cash Position at End of Month 3,684,012 2,988,987 2,099,340 603,281 390,305 295,657 296,022 -

Deposit Acct At end of Month 6,295,250 6,295,746 6,295,746 6,295,746 6,295,746 6,095,746 5,095,746

Total Funds Available 9,979,262 9,284,733 8,395,086 6,899,027 6,686,051 6,391,403 5,391,768


Donalda MacKinnon 9-Nov-18

ITEM NO 11

ALLOCATIONS POLICY CONSULTATION


Report by Director of Operations

Purpose of Report

1.1 This report provide Board Members with a copy for the proposed Allocation Policy

Consultation Document for approval.

Summary

2.1 The Housing (Scotland) Act 2014 was laid before the Scottish Parliament on 15 May

2018 and came in to force on 24 June 2018.

2.2 Some of the changes in the Act will affect the Allocations Policy which was due for

review in November 2016.

2.3 HHP will be consulting with stakeholders to get their views on the changes in the Act

which will affect the Allocation Policy. It is proposed that views be sought from

tenants, applicants, partner agencies and the wider community.

2.4 The Housing Management Working Group have considered these issues and have

provided a steer on the issues identified in the 2014 Act.

Competence

3.1 The financial, legal or other constraints are detailed at paragraph 5.1 and 6.1.

Recommendations

4.1 It is recommended that the Board note the report and approve the Allocation Policy

Consultation document at Appendix 1.

APPENDIX 1 Allocations Policy Consultation Document

Background Papers None

Writer of Report Donalda MacKinnon Tel: 0300 123 0773


Competence

Financial

5.1 There are no financial implications arising from this report.

Legal

6.1 It is a legal requirement that landlords consult on their Allocation Policy before making

any changes and that a report is produced on that consultation.

Regulatory Guidance


Standard Sections

1 The governing body leads and directs the RSL to

achieve good outcomes for its tenants and other

service users.

1.1, 1.6





these priorities

2.2



3.3

4 The governing body bases its decisions on good

quality information and advice and identifies and

mitigates risks to the organisation’s purpose.

4.3

Risk

8.1 There are no specific risks associated with this report.

Report Details

9.1 The Housing (Scotland) Act 2014 was laid before Parliament on 15 May 2018 and

came in to force on 24 June 2018. There are changes within the Act that affect the

current Allocation Policy which was due for review in November 2016. The review was

delayed in the implementation of the 2014 Act.

9.2 The consultation document sets out the legislative changes which affect the

Allocation Policy and it seeks feedback, comments and other suggestions from

tenants and other stakeholders. The Housing Management Working Group have

considered the issues arising from the Act and the draft consultation document. It


should be noted that they are not supportive of the suggestion that single person

households could be given greater access to 3 apartment properties.

9.3 The consultation will commence on 26 November 2018 and all feedback, comments

and suggestions should be submitted to HHP by 21 December 2018.

Allocations Policy Review

Consultation Document

November 2018

This Consultation Document is for HHP Tenants, applicants, partner agencies and the wider community.

HHP is a Registered Charity (No. SCO35767); Registered Society under the Cooperative and Community Benefit Societies Act 2014 Reg No 2644R(S);

Registered Social Landlord Reg No:359; Registered Property Factor: PF000183

Appendix 1

1

PREFACE This consultation document seeks views on HHP’s Allocations Policy following a review of

the policy and the changes implemented in the Housing (Scotland) Act 2014.

We request your views on the areas outlined in this paper as we review our approach to

allocating houses, and would appreciate any other issues to be highlighted.

Why are we consulting you? HHP want to provide an opportunity for all to express their opinions regarding the

Allocations Policy. The views and suggestions detailed in consultation responses will be

analysed and used as part of the decision making process for the development of the

final policy.

This consultation seeks views on the attached document. It is primarily aimed at:

HHP tenants;

Tenants and Residents Group;

Housing applicants; and

Partner agencies.

However, comments are also welcomed from other interested parties and the wider

general public. The consultation policy will be available on the Partnership’s website

www.hebrideanhousing.co.uk or by contacting the office and requesting a hard copy

of the document. A full copy of the Allocation Policy is available on request.

What we would like you to do? This consultation period begins on 26 November 2018 and runs until 21 December 2018.

Please ensure that your response to this consultation reaches us by 21 December 2018.

Responses can be submitted in writing to:

Allocation Policy Review

Hebridean Housing Partnership

Creed Court


Willowglen Road

Stornoway

Isle of Lewis

HS1 2QP

Or by email to: [email protected] If you wish to discuss any aspects of the

document in more detail please contact HHP on 0300 123 0773.



2

ALLOCATION POLICY CONSULTATION

INTRODUCTION 1.1 HHP’s Allocation Policy is normally reviewed every three years. However, due to the

delay in Legislative changes the Policy review was postponed. Several provisions from

the Housing (Scotland) Act 2014 were laid before the Scottish Parliament on 15 May

2018 and came in to force on 24 June 2018.

1.2 The HHP Housing Management working Group is overseeing the review of the Policy.

The consultation will commence on 26 November 2018 and all feedback should be

submitted to HHP by 21 December 2018.

1.3 When the consultation closes all feedback will be analysed and it is proposed that the

revised Allocation Policy will be presented to HHPs Board for approval on 13 February

2019.

1.4 This document sets out the legislative changes brought in by the Housing (Scotland) Act

2014 which affect the allocation of housing. It also gives you the opportunity to

feedback any comments or suggestions which you feel may be relevant to the policy.

There are also a few questions in this document which we would like you to consider.

1.5 HHP let around 220 homes per year and there are around 500 applicants on our waiting

list seeking housing. The Allocation Policy is the means by which we determine which

applicants will be prioritised for housing.

HOUSING (SCOTLAND) ACT 2014 - POLICY CHANGES

Reasonable Preference

2.1 When allocating housing the law says that social landlords have to give reasonable

preference to people with particular needs. This has been amended in the 2014 Act.

It says that social landlords now have to give reasonable preference to:

• People who are homeless or are threatened with homelessness and who

have unmet housing needs

• People who live in unsatisfactory housing conditions and who have unmet

housing needs

• Social housing tenants who are considered to be under-occupying their

home.

2.2 Landlords can also give reasonable preference to other groups. We would like your

views on this. For example the current policy provides for those who are

overcrowded and those living in Below Tolerable Standard (BTS) housing.

3

Question 1 – Do you think there are other categories of

housing need which should be given priority?

Adapted Housing

2.3 The Housing (Scotland) Act 2014 makes an amendment to allow landlords to repossess

an adapted property where there is no longer an occupier who requires the

adaptation. This would only apply to a purpose built adapted property or a house that

has had major adaptations carried out.

2.4 It is proposed that HHP adopt this provision to repossess houses into the Allocation Policy.

However it is also proposed that enforcement action would only be used by HHP in

exceptional circumstances and would require Board approval. If a property was

required to meet the needs of an individual or family and the current tenants no longer

required the adaptation, a pack of incentives should be available, including assistance

with removal costs to encourage the tenant in moving to an alternative property.

Question 2 – Do you agree with this proposal?

Property Ownership

2.5 When deciding on an applicant’s priority for housing, the 2014 Act allows social

landlords to take the ownership or value of property owned by the applicant into

account. This applies to the applicant, anyone who normally lives with the applicant or

who plans to live with them. However, the Act makes it clear that property ownership

cannot be taken into account if:

The owner cannot secure entry to their property, for example it may be

uninhabitable

Occupation of the property will lead to abuse from someone else living in that

property or who previously lived with the applicant

Living in the property threatens the health of any occupants and the applicant

has done all they could to prevent than danger.

Question 3 – Do you think the ownership of property

should be taken into account when deciding on an

applicant’s priority?

4

Question 4 – If so do you think the exceptions above are

the right ones or should there be others?

OTHER ISSUES TO CONSIDER

Single Person Applicants

3.1 The Allocation Policy states that a single person household applicant is entitled to a 1

bedroom property. Single person households comprise almost 50% of the waiting list

but only around 25% of housing stock is 1 bedroom. Waiting times are therefore

generally longest for single person households. We currently only allocate 2 bedroom

properties to single person households where there is no demand for such properties.

Question 5 – Should single households be given an

increased chance of being allocated housing by giving

them access to a 2 bedroom property in all areas?

Prioritising Applicants

3.2 The Policy states in section 23.1 The Housing (Scotland) Act 2001 specifies that, in

allocating houses, the landlord shall not take account of whether an applicant is

resident in their area if the applicant:

I. Is employed, or has been offered employment, in the area;

II. Wishes to move into the area and they are satisfied that his purpose in doing so is

to seek employment;

III. Wishes to move into the area to be near a relative or carer

IV. Has special social or medical reasons for requiring to be housed within the area;

V. Is subject to conduct amount to harassment or

VI. Runs the risk of domestic violence.

3.3 Applicants who satisfy the above conditions will be considered for housing in terms of

HHP’s assessment process. Applicants who do not meet the above criteria will be

offered housing but the offer will be for low demand areas only.

3.4 The population in the Outer Hebrides is aging and declining. This poses challenges for

work sectors such as Health and Social Care. At present Health and Social Care are

unable to recruit enough staff and are running with a high level of vacancies. Some

care facilities are also struggling for staff.

5

Question 6 - Should applicants be prioritised for housing

if moving to the area for work purposes in areas such as

Health or Social Care etc?

Question 7 - Should people with no local connection be

allowed greater access to housing to assist with our

population decline?

Question 8 – If you answered yes to question 7 what

criteria if any should be taken into account?

Medical Priority Points

3.5 Points are awarded to applicants that currently occupy unsatisfactory housing

conditions under the Medical Factors pointing category. The following definitions are

used to award Medical points:

Urgent

Applicant has a serious, long term condition and their

current accommodation poses a major danger to their

health and this can be removed or significantly

alleviated by re-housing. This priority will be considered

for applicants in the most urgent medical need including

those with severe mobility or extreme medical conditions.

It will also be awarded where the need for re-housing

results from residential, institutional or hospital care.

50 Points

High

This will be awarded to applicants whose ill health is

significantly affected by their current accommodation

and whose condition is likely to be improved by suitable

accommodation. The danger to health is less immediate,

but there is still a significant health related housing need.

There will need to be clear evidence that alternative

housing will significantly improve the health needs of the

applicant.

30 Points

6

Medium

Where a medical condition is affected by the

accommodation and where there would be a clear

improvement in the medical condition or quality of life of

the applicant by re-housing.

15 Points

Intermediate

Where there is a housing need to move home to give or

gain support or where minor improvement in quality of

life can be achieved by a change of accommodation.

10 Points

Question 9 – Do you think this approach and these

definitions are correct?

Current Points Categories 3.6 Current needs categories and the points weighting attached to them are set out below.

Applicants are assessed against these criteria and awarded points as appropriate. The

applicants with the highest number of points are given the greatest priority. We are

seeking views on whether these categories are the right ones, for example should points

be awarded for time on the waiting list?

3.7 If you think other factors should be included or that some are not appropriate then

please give us your views. Equally if you think the weightings for any category are too

low or too high then please let us know.

Points Tables

1. Homelessness

Potentially Homeless - Where an applicant is deemed by the Homeless Persons

Officer as potentially and unintentionally homeless and in priority need (as defined in

Part 1 of the Housing (Scotland) Act 2001) points will be awarded as follows:

Potentially homeless in priority need 20 Points

Non-priority homeless – Where an applicant is determined as non priority homeless

(as defined in part 7 of the Housing (Scotland) Act 2001) points will be awarded as

follows:

Non-priority homeless 10 Points

Actually and unintentionally Homeless and in priority need - Where an applicant is

determined by Comhairle nan Eilean Siar as being actually and unintentionally

homeless and in priority need (as defined in Part 7 of the Housing (Scotland) Act

2001) the applicant will be added to HHP’s Priority Homeless List.

7

2. Condition of Dwelling

Points will be awarded if the property is in poor condition as assessed by HHP.

Seriously Sub-Standard 25 Points

Severe Disrepair 20 Points

Lacking Standard Amenities 15 Points

Maximum Points Available 25 Points

3. Overcrowding

Points will be awarded for each additional bedroom required to meet HHP’s

eligibility criteria for adequate sized housing:

Shortage of bedrooms

Waiting List - Per single bedroom

- Per double bedroom

5 Points

10 Points

Transfer List - Per single bedroom

- Per double bedroom

10 Points

20 Points

4. Medical Factors

Points are awarded based on medical certificates provided by GP’s when current

housing conditions are detrimental to the applicant’s health.

Intermediate 10 Points

Medium 15 Points

High 30 Points

Urgent 50 Points


5. Ex Service Personnel

Points will be awarded to ex-service personnel who have left the Armed Forces

under honourable discharge or medical discharge and who have completed at

least three year’s service.

Ex – service applicant 20 Points

8

6. Social Factors

Social points are determined after receiving a report from the Social Work

Department or other relevant agencies. Points are awarded on receipt of report

Intermediate 10 Points

Medium 15 Points

High 20 Points

Urgent 25 Points

Priority under the Social Factors category will also be awarded to applicants who

are leaving institutional or therapeutic care as follows:

a) Young people who have been

looked after by Social Work

Department

b) Patients who are ready to leave

hospital and are ‘bed blocking’

50 Points

50 Points

a) People leaving residential or

nursing care

b) People leaving prison or probation

hostels

c) People leaving supported

accommodation

10 Points

10 Points

10 Points

7. Adapted Housing

Transfer Applicant

Where applicant is seeking to

vacate an adapted house, and

tenant no longer requires use of

adaptation

30 Points

Seeking move to a suitable,

adapted property, to avoid

necessary adaptations to

existing home

20 Points

8. Under Occupation

If an applicant is under occupying a house and wishes to move to a smaller house:

Under Occupation of Bedrooms:

Waiting List -Per bedroom 5 Points

Transfer List -Per bedroom 10 Points

9

For pointing purposes a 3-apartment dwelling is regarded as a suitable dwelling for a

single person or a couple


9. Lack of Secure Tenancy

Points will be awarded to applicants who are living in insecure accommodation.

The definition of insecure accommodation includes people who: a) do not have a tenancy agreement

b) share facilities with another household

c) live in tied accommodation

d) occupy caravans

e) have short assured tenancies

f) suffer financial hardship due to paying high rents

g) are determined as having insecure occupancy rights by the Allocations Officer

(only one of the above categories will be applied)


10. Travel to Work Difficulties

Points are awarded where there are factors that affect the applicant’s ability to

sustain employment. Points will be given to those who need to be near their place of

employment where distance, transport arrangements or financial difficulties prevent

ease of access, subject to verification by the employer.

Travel to Work Difficulties 5 Points


11. Time on List

For each complete year 5 Points


Feedback

HHP will be pleased to receive any comments you may wish to make on the proposed

changes to the Allocation Policy, as outlined above. The Revised Policy is available for

inspection on HHP’s website at: www.hebrideanhousing.co.uk


10

Please complete the attached feedback form and return to:

Hebridean Housing Partnership

Creed Court


Stornoway

HS1 2QP


Kirstin Campbell 7-November-18

ITEM NO 12

HEALTH AND SAFETY POLICY STATEMENTS



Purpose of Report

1.1 To enable the Committee to review the Health and Safety Policy Statement and the

Landlord Facilities Health and Safety Policy Statement.

Summary

2.1 The Health and Safety Policy Statement and the Landlord Facilities Health and Safety

Policy Statement were reviewed in October 2018.

Competence

3.1 The legal, financial or other constraints to the recommendation in this report are

included in paragraphs 5 and 6.

Recommendations

4.1 It is recommended that the Health and Safety Policy Statement at Appendix 1 and the

Landlord Facilities Health and Safety Policy Statement at Appendix 2 are approved.

APPENDIX 1 Health and Safety Policy Statement

APPENDIX 2 Landlord Facilities Health and Safety Policy Statement


Writer of Report Kirstin Campbell Tel: 0300 123 0773

Kirstin Campbell 7-November-18

Competence

Financial

5.1 There are no additional financial implications arising from consideration of this report.

Legal

6.1 There are no legal implications arising directly from consideration of this report.

Regulatory Guidance


Standard Sections




4.3

******* ******* SECTION NO. 1.2

HEBRIDEAN HOUSING PARTNERSHIP PAGE 1 OF 2

REV. 0

HSCM (VERSION 3) DATE: JAN 2017

Subject Policy Statement

HEALTH & SAFETY AT WORK ETC. ACT 1974

SAFETY POLICY STATEMENT

The Board of Hebridean Housing Partnership is responsible for the conduct of the business of

the Partnership.

The Health & Safety at Work etc. Act 1974 imposes statutory duties on employers and

employees. To enable these statutory duties to be carried out, it is the policy of the

Partnership so far as is reasonably practicable, to ensure that responsibilities for health and

safety are assigned, accepted and fulfilled at all levels of the Partnership; that all practicable

steps are taken to manage the health, safety and welfare of all employees; to conduct the

business in such a way that the Health & Safety of visitors, to any premises under our control,

is not put at risk.

1. It is the intention of the Partnership, so far as is reasonably practicable, to ensure

that:-

a) The working environment of all employees is safe and without risks to health

and that adequate provisions are made with regard to the facilities and

arrangements for their welfare at work.

b) The provision and maintenance of machines, equipment and systems of work

which are safe and without risks to health to employees, contractors and any

other person who may be affected with regard to any premises or operations

under our control.

c) Arrangements for use, handling, storage and transport of articles and

substances for use at work are safe and without risks to health.

d) Adequate information is available with respect to machines and substances

used at work detailing the conditions and precautions necessary to ensure that

when properly used they will be safe and without risk to health.

e) Employees are provided with such instruction, training and supervision as is

necessary to secure their Health & Safety.

f) The Health & Safety Policy will be reviewed at least annually.

Communication of any such changes will be made to all employees.

APPENDIX 1

******* ******* SECTION NO. 1.2

HEBRIDEAN HOUSING PARTNERSHIP PAGE 2 OF 2

REV. 0

HSCM (VERSION 3) DATE: JAN 2017

Subject Policy Statement

2. It shall be the duty of all employees at work to ensure: -

a) That reasonable steps are taken to safeguard the Health & Safety of

themselves and of other persons who may be affected by their acts or

omissions at work.

b) Co-operation with the Board so far as is necessary to ensure compliance with

any duty or requirement imposed on the employer, or any other person, under

any relevant statutory duties.

LANDLORD FACILITIES SAFETY CONTROL MANUAL

SECTION 4.0 REVISION 0 DATE Oct 2018 PAGES 2

ASPECT LANDLORD FACILITIES HS&W POLICY STATEMENT

1. Purpose

1.1 To define the HS&W policy of the Partnership in relation to its responsibilities as a Landlord and to demonstrate the commitment of the Management and personnel to implement this policy.

1.2 To set out the policy upon which the full LFHS&W Management System is based.

2. Associated Documentation and Records

2.1 This Policy Statement sets out the commitment of the Management and personnel to achieving high standards of HS&W in relation to the Partnership’s activities as a Landlord. Reference should be made to the full LFHS&W Control Manual and its associated documentation and records for the comprehensive arrangements in place to implement the commitments of this Statement.

3. Landlord Facilities HS&W Policy Statement

3.1 The Chief Executive holds overall executive control and is, therefore, responsible for the conduct of the Partnership from a Landlord’s Facilities Health, Safety & Welfare perspective.

3.2 The Partnership shall ensure that accountability and responsibility for the implementation and operation of facilities related Health & Safety and Welfare arrangements is discharged by formally appointed personnel of appropriate seniority and competence and that adequate resources are allocated to these roles.

3.3 A range of topic specific legislation imposes statutory duties on Landlords in relation to the protection of the Health, Safety and Welfare of tenants and others who may be affected by the Partnership’s undertaking as a Landlord. To enable these statutory duties to be carried out, it is the policy of the Partnership, so far as is reasonably practicable, to ensure that responsibilities for Health, Safety and Welfare are assigned, accepted and fulfilled at all levels of the Partnership; that all practicable steps are taken to manage the Health, Safety and Welfare tenants and others; and to conduct the business in such a way that the health and safety of tenants, service users, visitors, contractors and the public is not put at risk.

3.4 It is the Policy of the Partnership, so far as is reasonably practicable, to prevent injuries, incidents and ill-health that may be associated with its property portfolio and to ensure that:-

a) The living environment of all tenants is safe and without risks to healthor safety and that adequate provisions are made with regard to thesafety of premises and facilities.

b) Plant, machinery and equipment are safe and without risks to thehealth or safety of tenants, service users, contractors and any other

APPENDIX 2

LANDLORD FACILITIES SAFETY CONTROL MANUAL

SECTION 4.0 REVISION 0 DATE Oct 2018 PAGES 2

ASPECT LANDLORD FACILITIES HS&W POLICY STATEMENT

person who may be affected with regard to any premises or operations under the Partnership’s control.

c) All Statutory inspection regimes are maintained so far as reasonablypracticable to comply with legislation, codes of practice and best practice.

d) Adequate information is made available to tenants and others inrelation to facilities and premises related hazards and risks.

e) Employees are provided with such instruction, information, trainingand supervision as is necessary to ensure the Landlord’s HS&Wresponsibilities may be adequately discharged.

f) This Policy Statement, and all supporting Policies, Procedures andArrangements shall be reviewed and updated as and when it isnecessary or appropriate and at least annually. Communication of anysuch changes shall be made to all employees.

3.5 To enable the Partnership to meet its statutory duties and commitments set out above, a comprehensive LFHS&W Management System shall be operated, which shall include written Policies, Procedures and Arrangements for all relevant areas of HS&W Management relevant to the role of a Landlord. These shall be set out in a Control Manual, which shall be adopted by the Board and the Chief Executive. All relevant employees shall be provided with adequate information, instruction and training in the contents of the Manual and in risk management issues relevant to their work.

3.6 This Policy Statement shall be presented on the Partnership’s web site to ensure that all interested parties can view this commitment to Landlord’s HS&W and on all staff notice boards. Parties requiring further, more detailed information on the system shall be provided with all such reasonable information by the Partnership’s Facilities Safety Advisor (FSA).

3.7 It shall be the duty of all employees with defined responsibilities under this system to:

a) Co-operate with the Partnership so far as is necessary to ensurecompliance with any duty or requirement imposed on the Partnership,or any other person, under any relevant statutory duties.

b) Comply with any safe working procedures, practices or ‘rules’ set outby the Partnership and with the information, instruction and trainingprovided.

3.8 All accidents, incidents, ill health and near misses associated with a potential breach of Landlord’s duties shall be reported to the Chief Executive and shall be appropriately investigated and reported to external Authorities/Bodies where appropriate.


Angela Smith 28-Feb-18

ITEM NO 13

SAFEGUARDING POLICY REVIEW



Purpose of Report

1.1 The purpose of this report is to update the Board regarding compliance of HHP’s

Safeguarding Policies with OSCR guidance.

Summary

2.1 OSCR expects Charity Trustees to review safeguarding policies on an annual basis, to

ensure they are consistent with the Interim Guidance, issued in May 2018.

2.2 The guidance covers the welfare of children and vulnerable adults to protect them

from harm including physical, emotional, sexual and financial harm and neglect.

2.3 HHP has various policies which have aspects of Safeguarding in them and their

compliance with appropriate guidance is detailed at Appendix 1, with further details

on HHP’s approach to Safeguarding in the body of the report.

Competence

3.1 There are no financial constraints arising from the recommendation to this report

being implemented. Legal constraints are detailed at 6.1.

Recommendations

4.1 It is recommended that the Board note the review of policies at Appendix 1 in respect

of Safeguarding.

APPENDIX 1 Safeguarding – Policy Review

Background Papers OSCR Safeguarding Guidance, May 2018

Writer of Report Angela Smith


Competence

Financial

5.1 There is no financial constraint arising from the recommendation to this report being

implemented.

Legal

6.1 There is a legal requirement to comply with guidance issued from regulatory bodies.

Regulatory Guidance


Standard Sections





these priorities

2.4

Risk

8.1 The major risk of not complying with Safeguarding guidance from OSCR is that

vulnerable beneficiaries may not be safe, and the Partnership would compromise its

charitable status, in addition to incurring reputational damage.

8.2 Legislation and Regulatory Changes are itemised at number 7 on the Risk Register,

and Data Security and Integrity is at number 10.

Report Details

Safeguarding Policies

9.1 Charity Trustees are accountable for all that happens in their charity. In its

Safeguarding Guidance OSCR states that:

You must act in the interests of the charity:

◦ You must operate in a manner consistent with the charity’s purpose;

◦ You must act with care and diligence; and

◦ You must manage any conflict of interest between the charity and any

person or organisation who appoints charity trustees.

9.2 OSCR’s guidance also states that Charities have a wider responsibility to protect their

staff, volunteers and beneficiaries in general but the safeguarding guidance issued in

May 2018 focuses on the safeguarding of vulnerable beneficiaries. The following is an

extract from the Guidance:

“Safeguarding is the action that an organisation takes to promote the welfare of

children and vulnerable adults to protect them from harm including physical,

emotional, sexual and financial harm and neglect. This includes making sure that the

appropriate policies, practices and procedures are put in place. Safeguarding

includes child protection but goes further and extends to all vulnerable beneficiaries.”


9.3 Vulnerable beneficiaries may be protected in the following ways:

having in place policies and procedures that will help make sure that children

and vulnerable adults are protected from harm;

making sure those policies and procedures are implemented and understood

by everyone in the charity;

having clear lines of responsibility and accountability within the charity to deal

with any safeguarding issues;

making sure that staff and volunteers are trained to identify potential harm,

know what action to take and are clear about how, when and who to report

to.

9.4 HHP can demonstrate that it is operating appropriately and in an manner consistent

with its purpose and with safeguarding guidance in a number of ways:

Codes of Conduct, based on model documents approved by regulatory

bodies, are signed by all Staff and Board Members before they can take an

active part in HHP’s business functions;

Full Disclosures of Interest are made by all Staff and Board Members annually,

and further Declarations of Interest are recorded before each Board or

Committee Meeting commences;

Rule compliance is reviewed and approved at the last meeting before the

AGM;

Training requirements are reviewed during staff appraisals and worked into a

Training Schedule which is approved by Board;

There is a Policy Review Schedule in place to ensure all policies are subject to a

review within a timeframe consistent with the risk they carry;

A Risk Register is reviewed and presented at each meeting of the Audit & Risk

Committee;

HHP’s Business Plan and Financial Regulations are reviewed annually; and

Various statutory returns are made to Regulatory Bodies annually.

9.5 In terms of HHP’s policies, those which were identified as having elements which

addressed Safeguarding, of beneficiaries and staff, are detailed below:

Codes of Conduct;

Comments, Compliments & Complaints;

Entitlements, Payments & Benefits;

Disclosure of Interest;

Equal Opportunities;

Fire Safety;

Fraud;

Gas Management;

Health & Safety;

Lone Working;

Managing Violence and Aggression at Work;

Maternity Leave;

New & Expectant Mothers;

Openness & Confidentiality;

Particular Housing Needs;

Repair & Maintenance;

Risk Management;

Scottish Secure Tenancy;

Smoking at Work;

Special Leave;

Stress Management;


Tenant Participation;

Unacceptable Actions by Complainants;

Vulnerable Consumers;

Whistleblowing; and

Young Workers.

9.6 It was agreed that these policies would have an annual review in respect of

Safeguarding, and a report would go to the Board each November to confirm the

policies remain compliant with the latest guidance, or advise of any changes which

may be required. Appendix 1 details each policy and how it has been reviewed.

9.7 OSCR recommends that Charity Trustees should received training on Safeguarding, so

this will be included in the Board Training Schedule for the coming year.


SAFEGUARDING - POLICY REVIEW

POLICY REVIEW CONDUCTED

Codes of Conduct Model Policies adopted in 2018, which were

approved by the Scottish Housing Regulator and

drafted by SFHA. Consistent with all current

guidance.

Comments, Compliments & Complaints Due for review in 2020 but remains consistent

with SPSO guidance.

Disclosure of Interest Due for review in May 2019, but remain

consistent with Codes of Conduct which are

consistent with current guidance.

Entitlements, Payments & Benefits Due for review in May 2019, but remains

consistent with Codes of Conduct which are

consistent with current guidance.

Equal Opportunities Revised in June 2017 and consistent with

legislation. Equalities training due to take place

with staff and Board Members on 13 November

2018.

Fire Safety Annual review took place in May 2018 and is

appropriate with current guidance. .

Fraud Fraud Checklist reviewed and approved in

March 2018.

Gas Management Due for review in February 2019. At September

2018 409 properties had gas heating systems

and all had a gas safety certificate at that date.

Health & Safety Annual review conducted in February 2018.

Consistent with all current guidance and no

amendment made.

Lone Working Updated in September 2017 with next review

due in 2020. No major amendments required

and is consistent with Health & Safety at Work

legislation. Based on Croner Model Policy.

Managing Violence and Aggression at Work General review due to be carried out in

February 2019. This is based on a Croner model

policy which was compliant with all relevant

guidance at the point of adoption.

Maternity Leave Updated in November 2017 with next review due

in 2020. No major amendments required and it is

consistent with Health & Safety at Work


New & Expectant Mothers General review due to be carried out in

February 2019. This is based on a Croner model

policy which was compliant with all relevant

guidance at the point of adoption.

Openness & Confidentiality Reviewed for GDPR compliance in March 2018,

Full review postponed as awaiting Freedom of

Information decision, however, it is consistent

with the requirements of relevant legislation.

Particular Housing Needs Updated in September 2017 to include working

with the Integration Joint Board, whose key

deliverables include the strengthening of adult

protection protocols and service planning.

Further review due in 2020 unless any

amendment required before that date.

Consistent with current guidance.

APPENDIX 1


Repair & Maintenance In line with Special Needs Housing Policy, Right to

Repair, and OT referral processes. Updated in

November 2017 and consistent with relevant

guidance.

Risk Management Reviewed in July 2018 on an annual cycle and

consistent with the risk HHP faces.

Scottish Secure Tenancy Awaiting Model Scottish Secure Tenancy

Agreement following the introduction of the

Housing (Scotland) Act 2014. All tenants advised

of the changes to their rights under their tenancy

agreement by mailing in October 2018.

Smoking at Work Updated in November 2017 with next review due




Special Leave Revised in May 2017 to allow for paid time off for

union stewards. Consistent with

recommendations.

Stress Management Updated in November 2017 with next review due




Tenant Participation Tenant Participation Strategy in place and

updated annually.

Unacceptable Actions by Complainants Updated in September 2017 with next review

due in 2020. No major amendments required

and it is consistent with Health & Safety at Work


Vulnerable Consumers Introduced in March 2015, initially reviewed in

2016 and due for next full review in March 2019.

All aspects of vulnerability covered by policy

and various staff took part in training courses in

2018 to cover: Child Protection, Landlords

Facilities Health and Safety Awareness, Energy

Awareness, Gas Safety Awareness, Full Service

Universal Credit, Emergency First Aid, and

Equalities.

Whistleblowing Due to be updated in 2020, but consistent with

Whistleblowing guidance following the Public

Interest Disclosure Act 1998 (PIDA) and the

Enterprise and Regulatory Act 2013.

Young Workers Updated in November 2017 with next review due





Angela Smith 5-Nov-18

ITEM NO 14

CODE OF CONDUCT



Purpose of Report

1.1 The purpose of this report is to seek Board approval in respect of a revised Code of

Conduct for Staff following consultation with staff and the union, and a further revision

to the Code of Governance for Board Members.

Summary

2.1 The Conduct for Staff was approved to go out to consultation with staff and the union

on 29 August 2018.

2.2 Several responses were received during the consultation period and they have been

considered by Executive Team, with several suggested recommendations being

implemented. Staff were informed of the outcome of the consultation on 5 November

2018.

2.3 The revised Code of Conduct for Staff is at Appendix 1 for approval.

2.4 The Code of Conduct for Board Members was approved in August, but requires a

further update to bring it into line with the current Entitlements, Payments & Benefits

Policy (Highlands & Islands Variant) and Disclosure of Interest Policy. Board approval is

being sought to make the changes.

Competence

3.1 Legal and financial constraints to the recommendation in this report being

implemented are at 5.1 – 6.1.

Recommendations

4.1 It is recommended that the Board approves:

a) the revised Code of Conduct for Staff at Appendix 1; and

b) the Code of Governance for Board Members be further revised to bring it into

line with the current Entitlements, Payments & Benefits Policy (Highlands &

Islands Variant) and Disclosure of Interest Policy.

APPENDIX 1APPENDIX Code of Conduct for Staff V 4.0

Background Papers HHP Rules

Regulatory Standards of Governance and Financial Management

Writer of Report Angela C Smith Tel: 0300 123 0773


Competence

Financial

5.1 There is no financial constraint to the recommendations in this report being

implemented.

Legal

6.1 There is a legal requirement to have Codes of Conduct in place for Board Members

and Staff in accordance with Regulatory Standard 5.2, as follows:

The RSL upholds and promotes the standards of behaviour and conduct it

expects of governing body members and staff through an appropriate code of

conduct. It manages governing body members’ performance, ensures

compliance and has a robust system to deal with any breach of the code.

Regulatory Guidance


Standard Sections

5 The RSL conducts its affairs with honesty and integrity. 5.2

Risk

8.1 There is a risk of breaching the Regulatory Standards of Governance and Financial

Management if appropriate Codes are not in place and reviewed regularly. The

adoption of the attached Codes mitigates this risk.

8.2 Legislation and Regulatory Changes are at Item 7 on the Risk Register.

Report Details

Code of Conduct for Staff

9.1 The Code of Governance for Board Members and Code of Conduct for Staff were

due for review in 2018.

9.2 HHP’s Codes are based on Draft Model Codes prepared by the SFHA and agreed by

the Regulator.

9.3 The Code of Conduct for Staff was approved for consultation with staff and the union

in August 2018, and the consultation ran from 5-28 September 2018.

9.4 Eight responses were received during that period, including a response from Unison,

and they were reviewed by Executive Team with the outcome being fed back to staff

on 6 November 2018.

9.5 Whilst we were unable to make any major changes as the majority of the wording is

Regulator approved, we were able to make further amendments in respect of

aligning the Code with policies we currently have in use, such as the ICT Security

Policy, and realigning it with the current Entitlements, Payments & Benefits Policy

(Highlands and Islands Variant) which is what we have been using to date in respect

of carrying out works in our own homes. In addition, the wording in connection with

mobile phone use has been revised based on feedback from staff.


9.6 The updated Code of Conduct for Staff is at Appendix 1 for approval.

Code of Governance for Board Members

9.7 The Code of Governance for Board Members was approved in August, but requires a

further update to bring it back into line with the current Entitlements, Payments &

Benefits Policy (Highlands & Islands Variant), and Disclosure of Interest Policy. The

changes are in respect of sections 3 – Definition of Close Connection’ and section 4 –

Declaring Personal Interests, in Appendix 1 to the Code. Board approval is being

sought to make the changes.

Code of Conduct for Staff

Effective Date: November 2018 Review Date: November 2021 Approved by HHP Board: 20 November 2018

APPENDIX 1

1 | P a g e

TABLE OF CONTENTS

INTRODUCTION ...................................................................................... 2

HONESTY & INTEGRITY ............................................................................. 3

OPENESS AND ACCOUNTABILITY .............................................................. 5

SELFLESSNES, OBJECTIVITY AND LEADERSHIP ............................................. 7

BREACH OF THE CODE ............................................................................ 9

POLICY CHANGE HISTORY ...................................................................... 10

INTERPRETATIONS & ABBREVIATIONS ........................................................ 11

STATEMENT OF ACCEPTANCE .................................................................. 12

DECLARING AND MANAGING PERSONAL INTERESTS .................................. 13

2 | P a g e

CODE OF CONDUCT FOR STAFF

INTRODUCTION

1.1 HHP attaches the greatest importance to ensuring that high standards of

behaviour are demonstrated by all of our people and in all of our activities.

1.2 This Code of Conduct sets out the standards of conduct required of you as a

member of our staff.

1.3 As a Registered Social Landlord (RSL), we are required by the Scottish Housing

Regulator (SHR) to adopt and comply with an appropriate Code of Conduct.

This Code is based on the Model Code of Conduct produced by the Scottish

Federation of Housing Associations and EVH – Supporting Social Employers.

The SHR has confirmed that this Code fully complies with its Regulatory

Standards and their input during the production of this code is

acknowledged.

1.4 You must make yourself familiar with the terms of this Code and act in

accordance with its requirements at all times. You are required to sign the

Code (in the 'Statement of Acceptance' at the end) to confirm that you have

read and understood the terms of the Code and you have a personal

responsibility to uphold the requirements of this Code. Once signed, your

‘Statement of Acceptance’ form must be returned to the P.A. where it will be

held on your personnel file.

1.5 You must also ensure you are familiar with, and comply with all of our policies.

1.6 If there are any aspects of this Code, or of any of the related policies, on

which you are unclear, you must seek guidance from your line manager. Your

line manager will also be able to give guidance where you are unsure how

the Code or related policies apply in a particular situation.

Who the Code applies to

1.7 This Code of Conduct applies to everyone who works for us whether

employed directly or otherwise.

1.8 A copy of this Code will be given to every person that it applies to.

How the Code is structured

1.9 The Code is based on the Nolan Principles on Standards in Public Life which

are recognised as defining good conduct for those who work for the public

using public money.

1.10 We have defined three groups of principles as the basis for the Code:

a) Honesty and Integrity - section 2;

b) Openness and Accountability – section 3; and

c) Selflessness, Objectivity, Leadership - section 4.

1.11 Each of the three sections begins with a statement of principle. This is followed

by a number of provisions which set out the requirements of the Code in more

detail.

3 | P a g e

The Code is not exhaustive and it should be remembered that all staff

members are responsible for ensuring that their conduct at all times meets the

high standards that the RSL sector is recognised for upholding. As well as

observing the detail of the Code, you should apply its intention and spirit to all

situations in employment.

You are required to sign the Statement of Acceptance at the conclusion of

this code at Appendix 1 which also outlines the implications for any breach of

the code.

THE CODE OF CONDUCT

HONESTY & INTEGRITY

2 You must act at all times with honesty and integrity. You must not use, or seek

to use, your position to gain financial or other benefit for yourself, your family

or friends.

Gifts & Hospitality

2.1 You must act, and be seen to act, wholly in the interests of the Partnership,

our residents and other service users. You should not benefit improperly from

your position.

2.2 You must not accept any offers of gifts or hospitality from individuals or

organisations which might reasonably create – or be capable of creating –

an impression of impropriety, influence or place you under an obligation to

these individuals or organisations. You must comply with our policy on the

matter. The following points from our Entitlements, Payments & Benefits Policy

are highlighted below for your reference:

Small gifts (e.g. a box of chocolates, pens, folders, paperweights) and

prizes from our contractors and suppliers can be accepted if:

• the value does not exceed £50

• you do not receive more than one such gift from the same

source in a 12 month period

• you record receipt of the gift in the register

You should not normally accept other gifts and should decline any gifts

with a value of more than £50 unless to do so would cause offence or

otherwise damage our reputation. In these cases you must:

• Advise the donor that the gift will be donated to charity or will

form part of our annual charity fund raising activities

• Record the gift and the action taken in the register within five

days

You should not regularly accept gifts from the same source and never

more than once from the same source within a 12 month period.

You should also record any offers that you decline and the reasons for

this, in the register within five days.

4 | P a g e

Prevention of Bribery

2.3 We must comply with anti-bribery legislation. We have adopted, and comply

with, anti-bribery and corruption policies. Our Anti-Corruption Policy

Statement outlines our requirements in this respect.

2.4 We forbid all forms of bribery - meaning a financial or other advantage or

inducement intended to persuade someone to perform improperly any

function or activity. You must not offer, seek or accept bribes and must

comply with our policy on bribery. Offering, seeking or accepting bribes will

result in disciplinary action and may also result in criminal prosecution.

2.5 You must report to our Compliance Officer any instances of suspected bribery

within the Partnership or any external organisation with which we have

dealings.

Personal Benefit

2.6 You, or someone closely connected to you, cannot as a result of your role

with us receive preferential treatment relating to any services provided by the

Partnership or its contractors/suppliers, and you should be able to

demonstrate this.

2.7 Where, in your personal/home life, you need a service from a contractor or

supplier, if it causes no disadvantage or inconvenience to you to avoid using

someone off our approved list, then we would ask that such use is avoided. If,

however, you need to use one of our contractors or suppliers, it is important

that the guidance at Section 4 of our Entitlements. Payments and Benefits

Policy is followed exactly. An up-to-date list of our contractors and suppliers

forms part of our EPB Policy and is available on the Intranet.

2.8 You must not use, or seek to use, your position to promote your personal

interests or those of any person with whom you are closely connected or the

interests of any business or other organisation with which you have a

connection.

Section 3 of Appendix 2 defines what is meant by 'closely connected’.

Resources, Facilities and Premises

2.9 You must use our resources, facilities and premises only for the purposes

intended and in a responsible and lawful manner. This includes office

premises, telephone, computer and other IT facilities, equipment, stationery,

transport and staff.

Reasonable personal use of office telephones and computers and company

mobile telephones is permitted but must be kept to a minimum.

2.10 Mobile phones and direct dial phone numbers are provided to staff for HHP

business use. Personal use is recharged to staff in the event of extra costs.

Please refer to ICT Security Policy for full guidance on use of HHP phones and

equipment, always bearing in mind that personal devices should never be

used to access work emails.

2.14 You must comply with all of our relevant policies, including (but not

exclusively) Communications, ICT, Health & Safety, and Equal Opportunities.

5 | P a g e

2.15 You must not undertake work for another organisation - or for any personal

business - on HHP’s premises nor use our resources or facilities for such a

purpose, unless you have specific permission from your Director.

Funds and Expenses

2.16 Our funds must be safeguarded from abuse, theft or waste. You must at all

times apply and observe all of our Financial Regulations and internal controls.

2.17 You must comply with our relevant policies when procuring goods/services or

claiming expenses.

Tenants/Service Users and Money

2.18 As a general rule, in relation to tenants and service users you must not:

• Give or loan them money;

• Receive a gift or loan of money from them; or

• Invite or influence them to make a will or trust under which you are

named as executor, trustee or beneficiary.

2.19 In circumstances where you have a declared family connection to a

tenant/service user, common sense will be applied and the Partnership would

not seek to impose restrictions on the private exchange of money between

you and that individual. The same will apply when you declare friends.

2.20 When a staff member is a tenant, it is recognised that they will be

remunerated in accordance with their contract of employment, and any

policy and procedure in place in respect of expenses incurred in the normal

operation of their duties.

General Responsibilities

2.21 You must not act in a way that unjustifiably favours or discriminates against

particular individuals, groups or interests.

You should be aware that under the Equality Act 2010, the following nine

characteristics are specifically protected: age, disability, gender

reassignment, marriage and civil partnership, pregnancy and maternity, race,

religion or belief, sex and sexual orientation.

2.22 In presenting information you must set out the facts and relevant issues

truthfully.

2.23 You must avoid any situation that could give rise to suspicion or suggest

improper conduct. You should avoid conduct that is likely to bring the

Partnership into disrepute or undermine its managerial integrities. This includes

conduct taking place outside the immediate normal working environment,

but connected to the Partnership, for example, Christmas parties or other

social events.

OPENESS AND ACCOUNTABILITY

3 You must declare all relevant personal interests. You must handle information

in accordance with our policies and procedures. You must report to the

appropriate senior person within HHP any reasonable and honest suspicions

you may have about possible wrongdoing.

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Declaring Interests

3.1 We must ensure that no conflict arises, or could reasonably be perceived to

arise, between your duties and your personal interests, financial or otherwise.

You must declare, and manage openly and appropriately, any actual or

potential interests or conflicts. Further information on the declaration of

interests is detailed at para 4.1 of Appendix 2.

3.2 Where you have a personal, business or financial interest in any matter that is

relevant to our activities or is being considered (or is likely to be considered),

or you know that someone to whom you are closely connected has such an

interest, you must declare it promptly and record it in our Disclosure of Interest

Register.

3.3 In cases where a letting may be granted to you or a close relative of yours, in

accordance with the Allocations Policy and the Control of Payment and

Benefits for Board Members and Staff Policy, the appropriate Senior Manager

should prepare a report outlining the circumstances of the individual and that

report should be submitted to the Partnership’s Board of Management for

approval. Any subsequent allocation should be recorded in the appropriate

register.

3.4 You must keep your entry in the Disclosure of Interest Register complete,

accurate and up to date. The register is retained within the Corporate Filing

System and is a public document so it may be accessed at any point for

checking.

Handling Information

3.5 You must observe and uphold the legal requirements and our policies in

respect of the storage and handling of information, including personal and

financial information. Our Communications Policy, Openness and

Confidentiality Policy, Communication Tools Procedure, Data Protection

Procedure, ICT Security Policy, ICT Strategy and Financial Regulations give

further guidance.

3.6 You must respond to requests for information positively and must not prevent

people or bodies from being provided with information that they are entitled

to receive.

3.7 You must not use confidential information acquired through your work as one

of our employees for your private interests or any other purpose for which it is

not intended.

Respecting Confidentiality

3.8 You must respect confidentiality and ensure that you do not disclose

information to anyone who is not entitled to receive it, both whilst you are a

member of staff and after you have left our employment.

3.9 The permission of the Senior Officer is required before confidential

correspondence or documents are removed from the work premises.

3.10 Partnership mobile phones and tablets must always be password protected.

3.11 Unless specifically authorised to do so, you must not make comments or

statements in public or to the media, or pass any documents or other

information to the press or media about us or our activities. If you are

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approached by the press or other media you must quickly pass the enquiry to

the Senior Officer of the Partnership.

3.12 You must not publish any material or deliver any lecture or address any issues

relating specifically to us or our activities without prior approval from the

senior officer.

Using Social Media

3.13 We respect your right to a private life, and that includes joining any social

media sites that you wish. However, as information posted on such sites is

classed as public and not private, you must not disclose any private or

confidential information relating to us, our customers, partners, suppliers,

board members, or employees on any social networking sites, bulletin boards,

blogs or similar. (See also 4.13 under “Upholding our reputation”). This applies

whether you are posting under your own name or a pseudonym. Social

media should not be accessed during working hours.

3.14 It is prohibited to post on social media sites any comments on people and

events connected to the Partnership, or make any remarks which could

potentially bring the Partnership into disrepute. Furthermore, the use of

photographs taken in Partnership premises or at Partnership events, which

depict officers, Board members, tenants or other connected persons, is

expressly forbidden without the permission of the individuals concerned.

Using Personal Mobile Phones

3.15 The personal use of mobile phones should be limited during work hours to

minimise the impact to the employee’s work and that of their colleagues.

Where possible, employees should take any personal calls in the breakroom

to minimise disruption to colleagues.

Reporting Concerns

3.16 If you become aware of any actual or potential fraud, corruption or

wrongdoing, or breaches of this Code, you must report this to your line

manager or to the Chief Executive. You may do so on a confidential basis.

Our Whistleblowing Policy gives further information.

3.17 You must not victimise any person who has used - or intends to use, or is

suspected of having used - our confidential reporting or whistleblowing

procedures to report any actual or alleged fraud, corruption or wrongdoing

by others.

SELFLESSNES, OBJECTIVITY AND LEADERSHIP

4 You must act in the best interests of HHP at all times within the framework set

by the Partnership, working to promote our aims and objectives, upholding

our values and setting a good example by your own conduct.

Fulfilling Your Role

4.1 You must comply with your terms of appointment and our policies and

procedures relating to your role.

4.2 You must fulfil your duties responsibly, exercising reasonable skill and care and

acting at all times in our best interests and that of our tenants and other

service users. As an organisation, we always aim to put the needs of our

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tenants and service users first, and we expect all of our staff to do the same in

their day to day work, within the framework of our policies and procedures.

4.3 You must work to promote our aims and objectives and in accordance with

the relevant legal and regulatory requirements (including those, as

applicable, of the Scottish Housing Regulator, the Office of the Scottish

Charity Regulator, the Financial Conduct Authority and the Care

Inspectorate). If you are in doubt as to the legal and regulatory requirements

that are relevant to your role, you must seek guidance from your line

manager.

4.4 You must work at all times in accordance with our policies and procedures

and not allow your own personal or political opinions to affect the way in

which you carry out your duties. This does not impinge on your right to be an

active citizen or, for example, to be an active trade unionist.

4.5 You must take direction from your line manager, other senior managers, your

Director, and the Board, and exercise responsibly any authority that comes

with your role as a staff member.

4.6 You must not seek to use informal channels to influence the Board regarding

decisions to be made about the conduct of our business.

4.7 Approval is required from your Director before taking on any outside work or

any position (paid or unpaid) that will in any way impact on your role with us.

Any such work or position must not interfere with your existing job or conflict

with our interests. Appendix 2 gives more details on declaring interests.

4.8 You must participate in any necessary training, and play an active part in our

performance appraisal process. You will contribute to the identification of any

personal training needs you may have in order to keep your professional skills

and knowledge up to date.

Working with Tenants and Other Service Users

4.9 You must maintain high standards of professionalism, fairness and courtesy in

all your dealings with tenants and other service users.

4.10 You must always give your name or job title to any tenant, service user or

member of the public with whom you have contact.

4.11 You must not allow any personal relationship with a tenant or other service

user to conflict with the conduct of your role and responsibilities.

4.12 You must use the appropriate channels for handling tenancy and service

provision issues. You must not act outside our established procedures in any

matter concerning any tenant or other service user.

Upholding Our Reputation

4.13 You must not act in a way that could reasonably be regarded as bringing us

into disrepute. This would include publicly making any derogatory comments

about the Partnership, its staff, Board members, service users, partners and

anyone that we are doing business with. If you have a grievance or concern

relating to a member of staff or of the Board or have any concern about

potential wrongdoing you should discuss it with your line manager or Director.

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4.14 You must always be a positive ambassador for us and our work, especially

when attending events as a member of our staff or in dealing with outside

bodies.

Showing Respect for Others

4.15 You must treat others with respect at all times. This includes considering the

views of others and being tolerant of differences.

4.16 You must adhere to both the letter and the spirit of our equality and diversity

policy. See also 2.21 above about the need to avoid discrimination of any

kind.

4.17 You must always conduct yourself in a courteous and professional manner.

You must not, by your actions or behaviour, cause distress, alarm or offence.

4.18 You must not harass, bully or attempt to intimidate any person.

4.19 You must take care when displaying materials in the office, and ensure that

these would not reasonably cause offence to your colleagues. If in doubt,

consult your line manager before displaying any materials.

4.20 You must ensure that the language you use would not reasonably cause

offence to your colleagues, tenants or other members of the public you

come into contact with in your capacity as an HHP employee.

4.21 When attending meetings, you must be courteous to all attendees and

respect the position of the meeting chair or convenor. You must also ensure

that mobile phones are switched off/on silent other than in very exceptional

circumstances where it is necessary to take an urgent call.

BREACH OF THE CODE

5.1 As a member of staff you have a responsibility to promote and uphold the

requirements of this Code. If you consider that you may have breached the

Code, or have witnessed or become aware of a potential breach by another

staff member, you should immediately bring the matter to the attention of

your line manager or Director.

5.2 Any material breach of the Code will be considered under our disciplinary

procedures and may result in a disciplinary action being taken, which may

include dismissal.

5.3 As a member of staff you have a duty to co-operate with and contribute to

any investigation relating to a potential breach of the Code or an associated

matter

5.4 You must sign the below statement of acceptance once you have read and

understood this Code and its requirements.

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POLICY CHANGE HISTORY

Version Change Applied Date By

2.5 Updated Policy 20/02/13 Angela Smith

3.0 SFHA Model Policy adopted and

adapted for HHP use. 24/06/15 Angela Smith

4.0

Latest SFHA Model Policy adopted

and revised for HHP use, but content

from current EPB Policy retained.

21/11/18 Angela Smith

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INTERPRETATIONS & ABBREVIATIONS

The following interpretation and abbreviations are used in this policy:

Word Interpretation

HHP or Partnership Hebridean Housing Partnership

Board Means the Board of the Hebridean Housing Partnership

Board Members All Members of the Board including co-opted Members

Close Connection

Someone 'closely connected' to you includes family

members and persons who might reasonably be

regarded as similar to family members even where there

is no relationship by birth or in law, for example, spouses

and partners, children (included adopted and step-

children), parents and parents-in-law, grandparents,

grandchildren and siblings

Chair

The Chairperson of the Hebridean Housing Partnership or

the Chair of a meeting.

Compliance Officer

The officer responsible for supporting the Board in the

implementation of our external and internal controls. This

role is aligned with the Corporate Governance

Manager’s post.

Contractor

A person or business with which the Partnership has a

business contract.

EVH Employers in Voluntary Housing

Senior Officer

The Chief Executive of the Hebridean Housing

Partnership.

SHR Scottish Housing Regulator

Supplier

A person or business that supplies the Partnership with

goods or services for a fee.

All references to the masculine gender in this policy shall read as equally applicable

to the feminine gender

HHP is a registered society under the Co-operative and Community Benefit Societies Act 2014, Registered Number: 2644R(S),Registered Office: Creed

Court, Gleann Seileach Business Park, Willowglen Road, STORNOWAY, Isle of Lewis HS1 2QP. It is a charity registered in Scotland, Charity

Number:SCO35767, registered as Registered Social Landlord with the Scottish Housing Regulator, Registration Number:359 and registered as a Property

Factor, Registration Number PF000183

Email: [email protected]

Web: www.hebrideanhousing.co.uk

Phone:0300 123 0773



12 | P a g e

STATEMENT OF ACCEPTANCE

I have read and understood the terms of this Code of Conduct and I agree to

uphold its requirements in all my activities as a staff member of Hebridean Housing

Partnership Ltd.

I confirm that I am aware that I must declare and manage any personal interests in

accordance with our policy. I agree to review all relevant Registers regularly to

ensure that all entries relating to me are accurate.

I understand that, if I am found to have breached any points mentioned in this Code

of Conduct or acted against its spirit, action will be taken in accordance with HHP’s

disciplinary procedures and could ultimately result in my dismissal.

Signed _____________________________________________________

Date _____________________________________________________

This Code of Conduct was adopted by the Board on 20 November 2018, following a

period of consultation with staff, and comments were incorporated where

appropriate. It will be further reviewed not later than November 2021.

The Board will receive the annual reports on the working of this Code.

Appendix 1

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DECLARING AND MANAGING PERSONAL INTERESTS

Introduction

1.1 Being a member of HHP staff is of course only one part of your life. Other

aspects of your life - such as family, friends and neighbours, voluntary work,

causes you support, possibly business or financial interests, possibly your own

housing arrangements - may have the potential to cross over into your role as

a staff member.

1.2 However, as we are an organisation that works for the community [and uses

public funds], it is essential that there is no conflict - and that there can be no

reasonable perception of conflict - between your duties as a member of staff

and your personal (or personal business or financial) interests.

1.3 Any potential conflict between your position as a member of our staff and

your other interests must be openly declared and effectively managed so as

to protect the good reputation of HHP and the RSL sector.

1.4 As stated in the Code (provision 3.1), where you have a personal business or

financial interest in any matter that is relevant to our activities or is being

considered (or is likely to be considered) or you know that someone to whom

you are closely connected has such an interest, you must declare it promptly

and record it in the Register of Interests.

1.5 This Appendix gives further guidance on how to declare and manage any

personal (including personal business or financial) interests.

Examples of Interests that must be Declared

2.1 The following are examples of the kind of interest that you must declare.

Please note that this list is not exhaustive, and there may be other interests

that you should also declare.

• Tenancy of a property (by you or someone to whom you are closely

connected) of which we are the landlord;

• Occupancy or ownership of a property (by you or someone to whom

you are closely connected) which is factored or receives property

related services from us;

• Receipt of care or support services from us;

• Membership of a community or other voluntary organisation that is

active in the area(s) we serve;

• Voluntary work with another RSL or with an organisation that does, or is

likely to do, business with us;

• Membership of the governing body of another RSL;

• Being an elected member of any local authority where we are active;

• If you purchase goods or services from us;

• If you purchase goods or services from one of our approved

contractors or Framework Agreement partners;

• Significant shareholding in a company that we do business with;

Appendix 2

22

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• Membership of a political, campaigning or other body whose interests

and/or activities may affect our work or activities;

• Ownership of land or property in our areas of operation excluding for

the purpose of your own residential use (i.e. there is no requirement for

you to declare any house in which you currently live); and

• Unresolved dispute relating to the provision of services in connection

with a tenancy or occupancy agreement or a contractual dispute

over the provision of goods or services with us.

2.2 If you are not sure whether a certain matter needs to be declared, you must

seek guidance from your line manager or from the Company Secretary If

doubt remains, the advice would always be to declare the matter.

2.3 You should note that in some circumstances, declaration of an interest may

not be sufficient, and that it may be necessary for the Partnership to take

additional measures to deal satisfactorily with the situation so as to protect

the probity and reputations of both yourself and the Partnership.

Definition of ‘Close Connection’

3.1 Someone 'closely connected' to you includes family members and persons

who might reasonably be regarded as similar to family members even where

there is no relationship by birth or in law.

3.2 As well as considering your own actions, you must be aware of the potential

risk created by the actions of people to whom you are closely connected.

Who you should consider, and our expectations of you to identify and

declare such actions are outlined in Table A below.

Table A

Group 1

Members of your household

Group 2

People closely associated with you

Group 3

Others you may need to consider

Anyone who normally lives as part of your household, whether they are related to you or not, including spouses/partners who work away from home and sons and daughters who are studying away from home.

• Parents, parents-in-law and theirpartners;

• Sons and daughters; stepsons andstep-daughters and their partners;

• Brothers and sisters and theirpartners;

• A partner’s parent, child, brother orsister;

• Grandparents, grandchildren andtheir partners;

• Someone who is dependent on youor whom you are dependent on; and

• Close friends.

Other relatives (e.g. uncles, aunts, nieces, nephews & their partners).

15 | P a g e

3.3 If you become aware of any action or involvement relating to anyone in the

table then you should consider as soon as possible whether it requires to be

declared or managed.

3.4 We recognise that you will not always be closely acquainted with or in regular

contact with all of the people listed and we do not expect you to go to

unreasonable lengths to identify actions or involvement that are covered by

this policy.

3.5 Please note, we do expect you to be familiar with the actions of members of

your household (Group 1) and of any other people listed in the table above

with whom you are closely connected and you must take steps to identify,

declare and manage these.

3.6 You are not expected to be aware of the actions of people in groups 2 and 3

with whom you do not have a close connection. We do not expect you to

research into the employment, business interests and other activities of all

persons with whom you are closely connected.

3.7 In relation to 3.2 – 3.5 above, when considering actions you should do so from

the point of view of a reasonable and objective observer and a common

sense approach should be adopted at all times.

What You Need To Consider

3.8 The following are the relevant actions /involvement by those to whom you are

closely connected that you should consider, declare and manage as per our

expectations outlined in Table A:

A significant interest in a company or supplier that we do business with.

A significant interest means ownership (whole or part) or a substantial

shareholding in a business that distributes profits, but does not include

where an individual has shares in large companies such as banks, utility

companies or national corporations, i.e. where owning shares would

not give the individual any significant influence over the activities of

that organisation;

Where the individual may benefit financially from a company with

which we do business;

Involvement in the management of any company or supplier with

which we do business;

Involvement in tendering for or the management of any contract for

the provision of goods or services to us;

Application for employment with us;

Application to join our Board or any of its subsidiaries;

Application to be a tenant or service user of the organisation; and

If they are an existing tenant or service user of the organisation.

Declaring Personal Interests

4.1 When you first join the Partnership, and thereafter at the end of each financial

year, all staff will be issued with a Disclosure of Interest Form. It ought to be

completed and returned to the Governance Team within two weeks of issue.

Once all the forms have been returned, the Governance Team will pass them

to the Company Secretary for review. The Company Secretary will check the

forms and pass them back to the Governance Team who will record any

16 | P a g e

items to be disclosed in the Disclosure of Interest Register and file the forms. If

there are any queries regarding your form, the Company Secretary will

address these with you. If you become aware of any new item to be

disclosed following completion of your form, you should ask a member of the

Governance Team for a new form, fill it in and then pass it to the Company

Secretary for review. It will then be added to the register as detailed above.

4.2 As stated in the Code (provision 3.4), you must keep your entry in the

Disclosure of Interest Register up to date, add any new interests as soon as

they arise, and amend existing interests as soon as any change takes effect.

4.3 A situation may arise where you are invited to be present at a meeting where

a matter in which you have a personal (or a personal business or financial)

interest is discussed. In such cases you must inform the meeting chair at the

start of the meeting, or as soon as you become aware that this is the case.

You would then be required to leave the meeting for the duration of the

particular item. If in any doubt, you should ask the meeting chair or another

senior person present for guidance. This applies to all meetings that you

attend as a member of our staff – both internal and external.

4.4 Any failure to make a complete, accurate and prompt declaration - whether

deliberately or through taking insufficient care - will be regarded as a breach

of this Code.


Dena Macleod 5 Nov 18

ITEM NO 15

BUSINESS PLANNING TIMETABLE



Purpose of Report

1.1 To provide a Timetable for the updating of the next five year Business Plan 2019-2024.

Summary

2.1 The current Business Plan requires to be updated to reflect the Board’s plans for the

next five years.

2.2 A timetable has been prepared to ensure the Business Plan is prepared and approved

by 31 March 2019. The timetable is at Appendix 1.

Competence

3.1 There are no legal, financial, or other constraints arising from the recommendations to

this report.

Recommendations

4.1 It is recommended that the Board note the timetable at Appendix 1.

APPENDIX 1 Business Planning Timetable


Writer of Report Dena Macleod Tel: 0300 123 0773

Dena Macleod 5- Nov-18

Appendix 1: Business Planning Timetable

Event Detail Date

1 Initial Business Planning

Day

To hear from our key partners and

improve our overall approach to

business planning and ensure that

plans are cohesive

31 October 2018

2 Board Business Planning

Session

There will be two aspects:

a) Review of the vision and

strategic objectives

b) setting the Risk Appetite

December or early

January 2019

3 Tenant Sessions To meet with Tenants throughout the

islands and hear what their

aspirations are for us over the next 5

years

19 November 2018

20 November 2018

27 November 2018

3 December 2018

4 December 2018

11 December 2018

4 Board Scenario Planning The financial model will be stress

tested for the output from Session 1 &

2

Late January/early

February 2019

5 Initial Draft prepared for

consultation

To be prepared and presented to

the February Board meeting

Mid February

6 Consultation Period Mid February to

March 2019

7 Approval of Business Plan Final Business Plan presented to

Board

March 2019 Board

meeting

8 Business Plan published April 2019


Jackie Macleod 4-Oct-18

ITEM NO 16

BUSINESS PLAN 2015/16 – 2019/20 MONITORING REPORT



Purpose of Report

1.1 To enable the Board to monitor progress on the Business Plan Action Plan.

Summary

2.1 The 5 year Business Plan 2015/16 – 2019/20 was updated and approved by the Board

on 21 March 2018.

2.2 The Business Plan Objectives Monitoring report is at Appendix 1 and shows progress

being made on the agreed actions.

Competence

3.1 There are no legal or financial constraints arising from the recommendations in this

report.

Recommendations

4.1 It is recommended that the Board note the progress in the Business Plan Objectives

Monitoring report at Appendix 1.

APPENDIX 1 Business Plan Action Plan


Writer of Report Dena Macleod Tel: 0300 123 0773

BUSINESS PLAN OBJECTIVES - MONITORING REPORT 2015/16 TO 2019/20

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OBJECTIVE 1 - Placing tenants at the centre of everything we do, and engaging with the wider

community

REF ACTION REQUIRED MILESTONES TIMEFRAME LEAD OFFICER PROGRESS

1.1 Provide opportunities for

tenants to engage in service

review and design

Annual report of

opportunities provided

Director of

Operations

Work ongoing with Western Isles

Housing Association

Communities Forum. Repairs

scrutiny group meeting on

regular basis. Meetings arranged

for 2019 Business Plan review.

1.2 Continue to support and work

with Western Isles Housing

Association Communities

Forum to ensure tenants

voices and views are heard

Review of Tenant

Participation Strategy

Director of

Operations

Completed June 2016. Update

to Board September 2018.

Hold tenant events in

Stornoway, Tarbert,

Barra, Balivanich and

North & South Uist

Annually Area Managers

& Service

Development

Manager

All events for 2016 & 2017 held

Stornoway event held June

2018. Attendance at Uist

Games.

Review staff resource

for tenant involvement

May 2017 Service

Development

Manager

Completed.

Tenant Participation

Action Plan-delivering

key objectives

September

2014

Service

Development

Manager

Completed. Reviewed annually.

Next review September 2018.

1.3 Engage wider community Contribute actively to

Community Planning

Partnership

Management and

Outcome Groups

Chief Executive

& Director of

Operations

Membership of CPP & Quality of

Life sub group. Membership of

IJB Strategic Group and locality

groups.

APPENDIX 1


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OHCPP Board Member Chief Executive Member of Partnership.

Priority Outcome

Group

Chief Executive Membership of the three priority

groups.

Sustainable Population Priority

Group.

Sustainable Economic Growth

Priority Group.

Improving Quality of Life Priority

Group.

by Executive Team.

Chief Executive Membership of Child Protection

Committee.

Director of

Operations

Membership of Health & Social

Care Planning Group and

Community Justice.

1.4 Build partnership and identify

further opportunities to

improve life outcomes for

tenants and residents

Opportunities

identified

Director of

Operations

Work ongoing on poverty

awareness through Poverty

Action Group and Welfare

Reform Officers Group.

Hebrides Energy launched with

Our Power to deliver lower fuel

prices.

Void service introduced with


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Hebrides Energy September 18.

Lobbying of SSE ongoing with

partners locally and Highlands &

Islands Group.

Clauses and initiatives to deliver

Community Benefit

incorporated into 2015 - 2019

Investment Framework.

1.5 Seek funding

opportunities to

support service

development

Ongoing Bid submitted to National Grid

Warm Homes Fund but

unsuccessful.

1.6 Develop customer centered

culture in individuals and

teams

Team building day

held

June 2018 Executive Team Team Day held 7 June 2017 –

feedback collated and Action

Plan prepared. Team Day for

2018 held on 20 June 2018 .

1.7 Review the current structure of

Board Membership in May in

light of ONS classification

Rules Review May 2017 Chief Executive Completed.

Rules Update Sept 2017 Chief Executive Completed in 8 November 2017.


4 | P a g e

OBJECTIVE 2-Keeping Rents Affordable


2.1 Identify cost of implementing

proposed rent structure

Decision taken on

whether

implementation is

affordable

March 2020 Director of

Finance &

Corporate

Services

On hold due to Universal Credit,

but rents structure options have

been presented to the Finance

Working Group in October 2017.

Rent Structure Review Plan

presented to November Board.

2.2 Consult on proposed rent

structure

To be determined by

above

March 2020 Director of

Operations

Implementation plan to be

developed by March 2020.

2.3 Carry out a study on

affordability of rents

Affordability Study

commissioned

20 June 2019 Director of

Operations

Completed and reported to

Board in August 2018.

Complete initial

assessment

April 2018 Director of

Operations

Household survey carried out via

Stock Condition Survey indicates

that rents are affordable to most

tenants.

Assess Impact September

2018

Director of

Finance &

Corporate

Services

Stock Condition Survey

information to inform rent

setting.

2.4 Identify overhead costs v

direct service delivery and

benchmark these

Define overhead v

direct identifying

benchmarking

partners

30 November

2018

Director of

Finance &

Corporate

Services

Initial work done – appropriate

benchmarking partners to be

selected. Value For Money

assessment completed in

September 18. Awaiting results

to inform benchmarking KPI’s.


5 | P a g e


2.5 Explore opportunities with

partners to achieve savings

Development of

Procurement Strategy

31 December

2016

Corporate

Resources

Officer

Completed and reported to

Board in November 2016.

2.6 Deliver new build programme

in a more costs effective way

reducing per unit cost

Analysis of costs of

current approach

31 May 2018 Executive Team Development Review is

underway by the Development

Manager.


6 | P a g e

OBJECTIVE 3-Investing income in a sustainable way


3.1 Better understand the needs

of our tenants by improving

the collection and the use of

customer profile data and

thereby target efforts to assist

maximizing benefit uptake

and manage introduction of

Universal Credit

Customer profiles for

tenants affected by

Bedroom Tax

February 2018 Service

Development

Manager

Completed.

Profiles for impact of

Universal Credit

February 2018 Service

Development

Manager

Process defined and in place. IT

implementation completed.

Full service in place and impact

being closely monitored.

3.2 Develop IT systems to enable

recording and management

of customer data

IT system in place February 2018 Service

Development

Manager

Completed.

3.3 Use Tenant Participation

Development Services from

TPAS to create

communication and

involvement mechanisms

Mechanisms in place Annual review

of strategy

September

2018

Director of

Operations

Contact made with groups and

Community Associations.

Informal tenants group set up.

TPAS social media page set up.

Scrutiny Group in place.

Approximately 20 groups and

community representatives in

place.

3.4 Carry out follow up Tenant

Satisfaction Survey Action

Plans

Action Plan to Board November

2015

Service

Development

Manager

Completed.

Deliver Plan November

2016

Service

Development

Completed .


7 | P a g e


Manager

3.5 Carry out Tenant Satisfaction

Survey

Survey complete August 2018 Service

Development

Manager

Survey completed.

Report to Board in August 2018.

Full report to be published

August 2018.

3.6 Work with partners to deliver

the affordable warmth

strategy for our tenants

Fuel poverty report November

2017

Investment

Manager

Actions largely completed.

Partnerships in place with SSE

and Citrus and local agencies.

3.7 Identify further works to

improve energy efficiency of

homes and seek to fund a

programme to deliver this

Develop and cost

proposals for next

stage of insulation

works

30 September

2018

Investment

Manager

Complete. Further measures

being evaluated to improve

under-floor insulation.

Swedish Timber properties in

Dunmore Crescent externally

insulated, other schemes being

evaluated.

Window double

glazing programme

complete

2016 Investment

Manager

Completed.

Insulation programme

within framework

2016-2019 Investment

Manager

Works currently being carried

out using Eco/Government

funding.

3.8 Action Plan for SHQS

abeyances and exemptions

Abeyances to be

dealt within time

frame of investment

plan

2016-2019 Investment

Manager

Abeyances being addressed as

opportunity arises.

Exemptions Investment

Manager

Heating programme continues

to address exemptions.


8 | P a g e


Programme excluding

abeyances

Investment

Manager

90-% of work awarded. Final

tenders issued.

3.9 Continue to strengthen

partnership working with

CNES, TIG, Greenspace,

community organisations etc

6

month/annual

review for

feedback

Chief Executive

& Director of

Operations

Members of Health & Social

Integration Planning group.

Meeting with TIG/CNES.

Members of Western Isles Fuel

Poverty Action Group & ESCO.

Working with Community Trusts.

3.10 Engage with CNES and other

Community Planning Partners

to identify housing

requirements for future

population demographic

projections

Contribute to

development of Local

Housing Strategy and

highlight HHP priorities

Contribute to LOIP

July 2017 Chief Executive

&

Director of

Operations

Participation in MOWG.

Member of Community

Planning Partnership Population

Workgroup.

LHS & SHIP completed.

3.11 Ongoing work to co-ordinate

all strategic plans in relation to

housing

Business Planning

Session January 2018

Executive Team Meeting held with Chair of

Housing & Communities

Committee.

Business Planning

Session October 2018

Meeting with all key partners.

3.12 Contribute to Health & Social

Integration Plan

Participate in Health &

Social Care

Integration Forum

March 2016 Chief Executive Membership of Health & Social

Care Planning Group. Political

feed in to new build

programme – special needs.

3.13 Develop and agree Asset Strategy in place May 2016 Investment Completed.


9 | P a g e


Management Strategy

Review Asset Management

Strategy

Annual review

undertaken

May 2018

Manager

Asset &

Contract

Manager

Update reported to Board –

May 2017 & May 2018.

Annual review May 2019.

3.14 Work with partners to address

fuel poverty

Reduce % of tenants in

fuel poverty from 63%

to under 60%

Re-survey in

2017/18

Investment

Manager

Membership of Hebrides Energy-

Partnership with Our Power

launched in March 2018.

Membership of local Fuel

Poverty Group.

Working with CAB and Citrus

Energy to promote advice and

assistance.

Monitoring project with CES

successfully completed.

Thermal imaging technology

introduced.

Monitoring process for individual

houses in place.

Stock condition household

survey indicates fuel poverty at

48% compared to 64% in 2013.

Engagement with key

stakeholders to inform

decision

Meetings held with OFGEM via

Investment Working Group and

CNES and TIG invited to

contribute.


10 | P a g e


Working to support CNES with

lobbying of SSE.

Working with Highlands & Islands

Group to pursue projects.

Joint response via Highlands

Group to fuel poverty

consultation February 2018.

3.15 Prepare Action Plan for the

Energy Efficiency Standard for

Social Housing (EESSH)

Plan agreed

Measured through

ARC on a yearly basis

Achieve

EESSH by 2020

Review in

2017

Investment

Manager

EPC’s issued after every heating

replacement, insulation works

and COT where none exist.

S.C.S will add additional EPC

information.

3.16 Commit 100% of Scottish

Government grant allocation

for development

Grant committed % 31 March

2020

Director of

Operations

Development Plan updated

and shows 13% currently

committed with plans to

commit 30% in 2018/19 and 57%

in 2019/20.


11 | P a g e

OBJECTIVE 4 – Delivering continuous improvement


4.1 Complete Self Assessment

Plan

Self Assessment inspection

Plan complete Inspection

November

2015

Corporate

Governance

Manager

Completed. Accreditation

received 1 December 2015.

4.2 Re-assess self assessment

methodology

Award achieved February 2018 Corporate

Governance

Manager

Committed to Excellence

Assessment – 2 Star

accreditation awarded on 23

January 2018, which is valid for 2

years.

4.3 Implement new performance

measures agreed by Finance

Working Group linking

performance with resources

New P.I Report – more

in line with ARC

requirements

January 2018 Corporate

Governance

Manager

KPI’s were revised prior to last

Business Planning session,

updated and incorporated into

Business Plan. Will continue to

seek feedback on KPI’s to

incorporate into Performance

Report, in line with QS

Improvement Plan.

4.4 Arrange to visit 2 of the top

performing RSL’s in peer group

to benchmark KPI.

Benchmarking report

revised targets

June 2018 Corporate

Governance

Manager

Various visits to peers including:

an exchange visit between the

Lewis Area Manager and staff

members from Orkney Housing

Association re Welfare Reform;

Lewis Area Manager also visited

Albyn Housing Association as

part of a Welfare Reform Group;

and Corporate Resources

Manager visited Lanarkshire


12 | P a g e


Housing Association re Finance

and Housing Management

interface. In addition, staff have

been in contact with other

Housing Associations via video

conferencing to share

information on best practice i.e.

IT Officer had a session on Board

Development software with

Albyn. SHN Peer Group

presentation due November

2018 – updated for tenant

survey results. Value for Money

benchmarking survey

completed September 2018.

KPI’s to be reviewed once

published.

4.5 Develop peer review against

top quartile RSL’s

Partners identified and

information obtained

December

2017

Corporate

Governance

Manager

Peers reviewed prior to Business

Plan being finalised to

determine where HHP want to

be.

4.6 Identify duplication and

inefficiencies in processes and

streamline these.

Detailed process maps

developed for key

areas including: Service

Development

Manager

Investment Investment

complete

January 2016

Investment process map

completed.

Fixed asset process under

review.

Factoring August 2017 Factoring process mapped and


13 | P a g e


being reviewed.

Repairs August 2017 Process mapped IT

development completed.

Initial phase of gateway for

contractor completed.

OBJECTIVE 5 –Continue to provide services of the highest quality whilst delivering value for money


5.1 Improve core service

performance on range of

indicators to achieve top

quartile performance

Arrears < 2.5% of gross

debit (to be reviewed

as Welfare Reform

develops)

Quarterly Area Manager Year end figure of 1.59% for

current tenants achieved.

Void loss < 0.8% Monthly &

End of Year

Area Manager Ahead of target when low

demand excluded. Low

demand is having significant

negative impact on

performance.

Average re-let time

(excluding difficult to

let less than 20 days)

Monthly &

End of Year

Area Manager Average re-let @ 18.5 days in

2017/18.

Performance continues to be

affected by low demand in

some areas.

Repairs on target > On Asset & Contracts Contractual Performance at


14 | P a g e


95% contractual

target

Reviewed

monthly &

annually

Manager 96% on target.

Reporting systems revised and

implemented to enable

reporting from Active H

system.

5.2 Report on all indicators that

are in top quartile

Report provided September Corporate

Governance

Manager

Prepared for Business Plan in

February 2017.

5.3 Improve customer access to

information and service

Further develop

website to provide

better information,

improve accessibility

to services – on-line

services available

December

2016

I.T Officer

Corporate

Resources Manager

Website has been rebuilt.

New added functionality

added for improved mobile

phone access.

Communication consultants

appointed for 6 months.

5.4 Empower individuals to

deliver for customers

Review delegated

authorities

Refresher event on

delegated authorities

for all staff

March 2019

Executive Team Meeting with Manager to

review and implement.

Review of Pay and Grading

will include updating

delegated authorities.

5.5 Improve performance

reporting and management

systems to provide a tool to

drive performance

75% of relevant ARC

reports from Active H

for ARC submission

2017

31 May 2017 Corporate

Governance

Manager & Service

Development

Governance Officer has

prepared a comparator

spreadsheet with all historic

HHP Charter data input so

trends can be more easily


15 | P a g e


Manager identified, and Performance

planning can be better

facilitated.

5.6 Achieve Committed to

Excellence accreditation

Implement Self

Assessment Action

Plan

Review progress

February

2018

Executive Team

Corporate

Governance Officer

Achieved in January 2018.

5.7 Repairs Service Review (Part

of wider review of services

which are provided

externally)

Instigate long term

project on review of

future service.

Team in place to

review bringing

repairs service in

house

2020 Director of

Operations

Board agreed in February

2018 to re-procure service

from 2020.

5.8 Improve services to factored

properties and transparency

of charges.

Written procedure in

place

Visit other Housing

Associations

experienced in

factoring

March 2017

December

2018

Service

Development

Manager & Area

Manager

Process review in progress.

5.9 Value for Money – develop

approach

Value for Money

Strategy prepared

30

September

2018

Director Finance &

Corporate Services

Ground work on measure

underway, with Value for

Money assessment submitted

in September 2018. Follow up

with SHN to be scheduled

once datasets are published.


16 | P a g e


5.10 Develop

measures/definitions of

effectiveness and efficiency

Publish service

standards and targets

as part of Charter

reporting

30

September

2017

Service

Development

Manager & Finance

& Business Services

Manager

Tenant Report published

October 2018.

Leaflets published for several

service areas.

5.11 Publicise quality standards

for customers

To be incorporated

into above & leaflets

for each service

provided as they are

developed

By 31 August

each year

Service

Development

Manager &

Corporate

Governance

Manager

Tenant Report published

October 2017.

5.12 Develop tenants report.

Feedback from stakeholders

required

Review approach to

ARC report annually

September

2018

Corporate

Governance

Manager

Feedback for current year

incorporated. This will be an

annual process.

5.13 Determine business case for

providing student and/or

furnished accommodation

using hard to let houses

Review

need/demand and

property type and

location 31 March

2018

Director of

Operations

Position with UHI

developments being clarified

prior to progressing further.

Current proposal successful at

planning appeal stage.

Business modelling for

student

accommodation in

Stornoway

Director of Finance

& Corporate

Services

Position with UHI

developments being clarified

prior to progressing further.

5.14 Identify costs/unit in

investment and repair

programmes and identify

implications of reducing

Monitor contracts and

at budget setting to

increase scope of

investment

Nov 2018 Asset & Contract

Manager

Ongoing analysis of costs.

Review to be carried out as

part of the Investment and

Repair & Maintenance


17 | P a g e


these programme procurements.

5.15 Subsidiary activity – review

options that subsidiary can

undertake

Subsidiary active 31 March

2019

Director of Finance

& Corporate

Services

Resources Team restructured

to provide support for the

development of the

Subsidiary.

5.16 Undertake review of impact

of LIFT properties in the

Stornoway area

Survey successful

applicants.

Carry out market

analysis to ascertain

demand

March 2016

March 2020

Director of

Operations

Development Workgroup

review following completion

of Local Housing Strategy.

5.17 Undertake review of

demand/need for 3+

bedroom houses in some

rural areas e.g South Lochs,

Bragar, Uig, North Uist, South

Uist & Barra

Annual Allocation

Report to Board

June –

Annually

Director of

Operations

June 2016.

Update to Business Planning

Day – January 2016 and

Board report March 2016.

Report to Board – June 2017.

Update in June 2018.

5.18 Provide temporary

accommodation to CNES as

required

Annual Review

Annually Director of

Operations

Reviewed June 2018.

Review of allocation to

homeless applicants as

required by CNES

Annual Review

5.19 Review SLA with Homeless

Service with CNES

Annual Review 4th quarter of

financial year

Area Manager Reviewed in March annually.

5.20 Review arrangements with Arrangements to be Director of Discussion ongoing regarding


18 | P a g e


Foyer in relation to leased

properties

concluded

Operating model to

be agreed

Operations operating model.

Liaison arrangements in place.

Meeting held with Foyer on 12

June 2018.

5.21 Work to prevent

homelessness amongst HHP

tenants through tenancy

breakdown

Joint working

arrangements in

place with partners

e.g CPN Team, CAB

and Social Work

Ongoing

Area Managers

Liaison arrangements in place

with CPN Team and CAB.

Quarterly meetings to

continue.

In place – ongoing.

Tenancy sustainability

after 1 year > 90%

Ongoing Sustainability rate at 81% for

new tenancies.

5.22 Provide advice and

assistance to housing

applicants on options and

ensure effective signposting

Eviction rate < 0.15% Ongoing ARC lead

monitoring

Housing Officers continue to

work with tenants to aim to

achieve targets. The current

rate is 0.146%.

Explore formal

accreditation on

advice and

assistance

To start in July

2017 with

continuous

refreshers

Service

Development

Manager/Corporate

Resources Admin

Officer

Scottish National Standards for

Information and Advice

Providers.

Type 1 Accreditation and

advice UK Membership being

researched.

Applications processes under

review.

Develop housing

options information for

applicants to support

Service

Development

Manager/Area

Universal Credit training for

frontline staff completed

October 2018.


19 | P a g e


advice provision Manager Signposting to CAB, HB,

Advocacy, Catch 23, CPS’s –

ongoing at sign up stage and

before.


20 | P a g e

OBJECTIVE 6 – Being a good employer that attracts and retains high quality staff


6.1 Appraisals and training

needs request to be

completed.

All SDA’s completed on

time

By 31 August

each year

Chief Executive Review of process underway.

100 % completed for 2018.

6.2 Training Plan to be

prepared.

Training Plan to be delivered

Effectiveness of training to

be assessed

Training Plan prepared

Training Plan delivered

Training Plan reviewed

Following SDA

completion

November each

year

Admin Officer

(Corporate

Resources)

Provided to Board in August

2018.

6.3 Staff survey Survey undertaken September 2015 Executive Team Action Plan being

implemented. Review of results November 2015

6.4 Annual pay review Recommendation for

2018/19

June 2018 Chief Executive Offer has been made.

6.5 Review grading structure Recommendation on

grading

structure/implementation

2017/18

2018/19

(implementation)

Chief Executive External consultants to

support work appointed.

A revised organisational

structure completed.

6.6 Review opportunities to

participate in Modern

Apprentice Scheme,

provision of trainee posts

and secondments

Review undertaken 31 March 2018 Chief Executive Modern Apprentice

appointed and due to

complete in September 2018.


21 | P a g e


6.7 Review of induction process New induction process

implemented

September 2017 Director of

Finance &

Corporate

Services

New member of staff

inducted in May. Induction

process revised with detailed

1st week plan in diary ensuring

they had the correct training

and completed Risk Modules.

This has been replicated with

the other new starts and will

be formally added to the

induction process.

6.8 Review of appraisal system New or revised system September 2018 Chief Executive Initial review underway.


22 | P a g e

OBJECTIVE 7 – Working with partners to contribute to the economic wellbeing of communities

throughout the Outer Hebrides that resources will allow.


7.1 Support local suppliers and

contractors.

Source majority of

supplies locally

Ongoing Investment

Manager/Corporate

Resources Officer

Support of local economy

now included as formal

aspiration/requirement of

HHP’s Procurement Strategy.

7.2 Apprenticeships –

commitment from

contractors to recruit and

retain apprentices.

All major contracts to

include recruitment &

retain apprentices

Ongoing Asset & Contracts

Manager/Investment

Manager

In place and ongoing.

7.3 Support CNES/CPP Strategy

of making Stornoway a

University town.

Working in partnership

for student/lecturer

accommodation

Ongoing Chief Executive

7.4 Participate in Economic

Outcome Group.

Ongoing Chief Executive Meetings attended.

7.5 Examine opportunities for

pilot projects for innovative

developments that link with

community projects

Opportunities

explored

2017-2020 Executive Team

7.6 Develop an Anti Poverty

Strategy

Strategy prepared 31

December

2020

Executive Team Initial preparation underway.



ITEM NO 17

BOARD PLAN 2019



Purpose of Report

1.1 This Report outlines a plan in respect of items to be considered by Board during the

2019 Board session.

Summary

2.1 The plan at Appendix 1 has been compiled in respect of standing and other items,

which the Board can expect to consider during the 2019 Board session.

2.2 This plan is a guide and may be added to throughout the year if there is a

requirement for other items to be considered.

Competence

3.1 There are no legal, financial, or other constraints arising from the recommendation to

this report being implemented.

Recommendations

4.1 It is recommended that the Board note the Board Plan 2019 at Appendix 1.

APPENDIX 1 Board Plan 2019


Writer of Report Angela Smith Tel: 0300 123 0773


Competence

Financial

5.1 There is no financial constraint arising from the recommendation to this report being

implemented.

Legal

6.1 There is no legal constraint arising from the recommendation to this report being

implemented.

Regulatory Guidance


Standard Sections

4 The Governing Body bases its decisions on good



4.1, 4.2

Risk

8.1 Governance of the Partnership is critical to its long term viability. Ensuring that the

Board has all the information, reports and supporting papers it requires to take well

informed decisions, and a plan of when it can expect to see different types of reports,

helps to mitigate the risk of the Board being unprepared.

BOARD PLAN 2019

Approval

Noting

Annual / one off

Standing Colour fill as above

Policies are highlighted with *

Item Report 13 Feb

19

20 Mar

19

22 May

19

19 Jun

19

28 Aug

19

28 Aug

19

20 Nov

19

1 Budgets 2019/20

2 Annual Financial Strategy

3 Business Plan

4 Debt Management Report

5 Development Programme 2019-

2024

6 Investment Programme 2019/20

7* Health & Safety Policy

8* Allocations Policy

9* Development Policies (4 in total)

10* Gas Safety Management Policy

11* Procurement Policy

12* Procurement Strategy

13* Estate Management Policy

14 Annual Pay Review

Recommendation

15* Communication Policy

16* Members Expenses Policy

17* Staff Expenses Policy

18* Rent Arrears Policy

19* Recovery of Sundry Debts Policy

20* Vulnerable Consumers Policy

21 Fraud Checklist

22 Funders Valuation 2018/19

23 ARC 2018/19

24* Appointment of Consultants

Policy

25* Entitlements, Payments &

Benefits Policy (H&I Variant)

26* Managing Violence &

Aggression at Work Policy

27* Membership Policy

28* Fire Safety Policy

29 SHR Returns

30 Annual Report & Financial

Statements for 31 March 2019

31 Budgetary Performance for year

ended 31 March 2019

32 Housing Allocations report

2018/19

33* Openness & Confidentiality

Policy (tentative)

34* Risk Management Policy &

Strategy (incorporating Risk

Strategy Annual Update)

APPENDIX 1

Approval

Noting

Annual / one off

Standing Colour fill as above

Policies are highlighted with *

Item Report 13 Feb

19

20 Mar

19

22 May

19

19 Jun

19

28 Aug

19

28 Aug

19

20 Nov

19

35 Training Plan 2019/20

36 Self Assessment (Decision on

next level of C2E)

37 Election of Office Bearers

38 Election to Standing Committees

and Working Groups

39 Draft 2020 meeting schedule

40 Board Skills & Development

41 Budget Strategy 2020/21

42 Anti-Social Behaviour & Estate

Management

43 Board Development Plan

Progress Report

44 Notifiable Events

45 Management Reports 31 Dec

18

31 Jan

19

30 May

19

30 Jun

19

30 Sep

19

46 Quarterly Treasury Report 31 Dec

18

31 Mar

19

30 Jun

19

30 Sep

19

47 Business Plan Monitoring Report

48 Development Supporting Papers

49 Development Programme 2012-

18 Monitoring Report

50 Investment Programme 2018/19

Monitoring Report

51 Welfare Reform updates

52 Tenant Participation Strategy

2016-20 Update

53 Fuel Poverty Update

54 Procurement Strategy 2019/20

55 Review of Corporate Registers

56 Board Members Expenses

2018/19

57 Asset Management Strategy

58 DTL Properties Update

59 Repairs Service-six month review

60 Complaints-six month report

61 Annual Review of Financial

Regulations

62 Annual Review of Standing

Orders

63 Governance Report

64 Annual Insurance

65 Safeguarding Policy Review

66 2020 Board Plan

No of reports to be considered

Approval

Noting

23 19 18 18 17 3 19

12 11 7 7 3 3 5

11 8 11 11 14 0 14



ITEM NO 18

QUARTERLY TREASURY REPORT TO 30 SEPTEMBER 2018


Report by Director of Finance & Corporate Services

Purpose of Report

1.1 To inform the Board of the Treasury Management activities of the second quarter of

2018/19.

Summary

2.1 The quarterly Analysis of Investment and Borrowing report required by the Treasury

Management Policy is at Appendix 1.

Competence

3.1 Financial and legal constraints arising from the recommendation to this report being

implemented are detailed at 5.1 – 6.1.

Recommendations

4.1 It is recommended that the Board note:

a) the quarterly report on the Analysis of Investment and Borrowing as shown at

Appendix 1;

b) the outstanding loans at 30 September 2018 of £4.91 million; and

c) the cash balance at 30 September 2018 of £9.980 million.

APPENDIX 1 Analysis of Investment and Borrowings

APPENDIX 2 Quarterly Income and Expenditure Profile


Writer of Report Donald Macleod Tel: 0300 123 0773


Competence

Financial

5.1 This report deals entirely with the cash resources utilised over the second quarter of

2018/19.

Legal

6.1 Rule 19.1 to 20.1 details the Partnership’s borrowing powers.

6.2 The effecting of borrowing and lending money is in accordance with the Partnership’s

borrowing and lending policies and CIPFA’s “Treasury Management in Housing

Partnerships: A Code of Practice” and has been delegated to the Director of Finance

& Corporate Services.

6.3 The Treasury Management Policy requires that as a minimum a quarterly report is

provided to the Board in the form “Analysis of Investment and Borrowing”.

6.4 The Treasury Management Policy requires that if the cash balances exceed £4 million

the funds should be spread over no fewer than four interest bearing accounts. The

cash balances are in a special interest account with Royal Bank of Scotland (RBOS).

The remainder is held in the current accounts with the RBOS.

Regulatory Guidance


Standard 3

The RSL manages its resources to ensure its financial well-being and

economic effectiveness.

The relevant points within the Standard are 3.1.

Risk

8.1 There are a number of risks highlighted in the Risk Register in relation to Treasury

Management. The risk scored as “high” is the impact of increases in the interest rate

and inflation rate and this has been addressed in Appendix 1.

Report Details

9.1 There were no borrowings during the second quarter, which is in line with the Annual

Financing Strategy for 2018/19.

9.2 The second quarter of the year saw £3.617 million expenditure of which £1.642 million

related to new build.

9.3 The income for the second quarter was £3.860 million and comprised Rental Income

(58%) and other (2%) and Government Grants including new build (41%).

9.4 Appendix 2 summarises the income and expenditure profiles for the second quarter.

9.5 The cash balances at 30 September 2018 increased quarter on quarter by £0.358M to

£9.980M. This was driven by the timing of investment and development spend.

9.6 We currently hold RTB receipts of £1.387M which is due to be repaid to the Scottish

Government over the next 3 years and £148K of HAG was repaid to Scottish

Government with respect to the final ex 5RSL sales.

9.7 It is expected that all covenants will be complied with for 2018/19.

30SEP18 ANALYSIS OF INVESTMENTS AND BORROWINGS

1

INVESTMENTS

The cash held at the Royal Bank is split between 5 operational accounts totalling £3.684m and 5

special deposit accounts totalling £3.366m.

BORROWINGS

Compliance with Cash Flow Forecasts The Annual Financing Strategy for 2018/19 forecast there may be a requirement to borrow during

the year. This was not needed due to current cash balances exceeding initial budgets as a result of

continued slippage on investment and development.

Mar-18 Jun-18 Sep-18 Average

DEPOSIT ACCOUNTS £000's £000's £000's £000's

Royal Bank 3,363 3,366 3,366 3,365

CWS 0 0 0 0

BOS 690 705 716 703

Santander 2,109 2,111 2,214 2,145

Total Deposit 6,163 6,182 6,295 6,213

CURRENT ACCOUNTS

General Account 959 1,015 958 978

Standing Order 782 757 774 771

Direct Debit 1,163 876 845 961

Office/Cash 1,176 764 1,078 1,006

Property Factoring 26 28 29 28

Total current 4,106 3,440 3,684 3,744

Total 10,270 9,622 9,980 9,957

Balances shown are taken from the Bank Statements and not the ledger.

Core Funding Facility £m

Estimated debt outstanding (per Business Plan) Yr 7 5.10

Actual amount outstanding 4.91

Difference 0.20

APPENDIX 1


2

Interest Rates The Interest Rate that applies to the Partnership is LIBOR plus an agreed margin. LIBOR (London

Inter Bank Offer Rate) is the interest rate banks borrow funds from each other in the London

Interbank Market.

The Base Rate rose 0.25% from 0.50% to 0.75% in the 2nd quarter. 3 month LIBOR increased to

0.803% as at 30 September 2018.

Borrowings Mar-18 Jun-18 Sep-18 Average

£000's £000's £000's £000's

Facilities arranged 15,000 15,000 15,000 15,000

Loans outstanding 4,946 4,946 4,909 4,933

Variable/Fixed analysis-amounts

Variable amount 1,446 1,446 1,409 1,433

Fixed amount 3,500 3,500 3,500 3,500

Other Hedging - - - -

4,946 4,946 4,909 4,933

Variable/Fixed analysis-Percentages

Variable 29.23% 29.23% 28.70% 29.06%

Fixed 70.77% 70.77% 71.30% 70.94%

Other Hedging Products

100% 100% 100% 100%

Lenders amounts

Core Facility (RBS) 4,946 4,946 4,909 4,933

Other Borrowings - - - -

4,946 4,946 4,909 4,933

Average cost of borrowing

Amount £000's Interest Type Annual Cost

3,500.00 5.53% Fixed 193,500

1,408.67 2.08% Variable 29,351

4,908.67 222,851

Average cost of funds 4.54%

Anticipated level of borrowing over next 5 years

AFS

Year 2018/19 Est Forecast Variance

£m £m £m

2018/19 4.909 5.089 (0.180)

2019/20 9.909 10.089 (0.180)

2020/21 14.804 14.984 (0.180)

2021/22 14.804 14.984 (0.180)

2022/23 14.804 14.984 (0.180)


3

-

2,000,000.00

4,000,000.00

6,000,000.00

8,000,000.00

10,000,000.00

12,000,000.00

02

Jan

uar

y 2

01

7

01

Feb

ruar

y 2

01

7

03

Mar

ch 2

01

7

02

Ap

ril 2

01

7

02

May

20

17

01

Ju

ne

20

17

01

Ju

ly 2

01

7

31

Ju

ly 2

01

7

30

Au

gust

20

17

29

Sep

tem

ber

20

17

29

Oct

ob

er

20

17

28

No

vem

ber

20

17

28

Dec

em

be

r 2

01

7

27

Jan

uar

y 2

01

8

26

Feb

ruar

y 2

01

8

28

Mar

ch 2

01

8

27

Ap

ril 2

01

8

27

May

20

18

26

Ju

ne

20

18

26

Ju

ly 2

01

8

25

Au

gust

20

18

24

Sep

tem

ber

20

18

Cash Balances

Total Funds

Current

Deposit

Non RBS

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

Interest Rates

3 month LIBOR Per Business Plan Base Rate

30SEP18 ANALYSIS OF INCOME AND EXPENDITURE PROFILES

1

EXPENDITURE

Overall the expenditure for the second quarter of 2018/19 is in line with the revised forecast.

Financial covenants have now been received and forecast to be met for the full year.

INCOME

Total Income for the second quarter of 2018/19 is in line with the revised forecast.

.

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4

2018/19 FORECAST 2018/19 ACTUAL

Expenditure

New Build Expenditure net of New build

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4

2018/19 FORECAST 2018/19 ACTUAL

Total Income HAG Income net of HAG

APPENDIX 2


ITEM NO 19

GAS AUDIT



Purpose of Report

1.1 To inform Board on the outcome of the Gas Audit carried out during July 2018.

Summary

2.1 The Board agreed in November 2017 to carry out a further gas audit in 2018 to

provide assurance on the quality of work being carried out on HHP properties.

2.2 The 2018 audit concluded that the overall management of gas safety by HHP has

improved again since the 2017 audit.

2.3 Gas works carried out by FES FM Ltd and Alex Murray Construction Ltd have

deteriorated since the last audit.

2.4 Following this audit an improvement plan has been put in place to address issues

contained in the report. The contractors have been warned as to the potential

consequences of a continuing failure to improve performance or to meet

acceptable standards.

Competence

3.1 The legal, financial or other constraints to the recommendations in this report are

contained in paragraphs 5, 6 and 7.

Recommendations

4.1 It is recommended that the Board note the report.

APPENDIX 1: Gas Audit Executive Summary

APPENDIX 2: Gasmap 2012 – 2018

APPENDIX 3: Gas Service Summary


Writer of Report: Peter O’Donnell Tel: 0300 123 0773

Competence

Financial

5.1 The cost of the gas audit was £5,070. Training has been estimated to cost £5k for the 2

visits in 2019.

Legal

6.1 HHP has a duty under the Gas Safety (Installation and Use) Regulations 1998. In

particular there are requirements under Regulation 35 – Duties of Employers and Self-

employed Persons & Regulation 36 - Duties of a Landlord.

Regulatory Guidance


Standard Sections



service users.

1.1 & 1.3

4 The governing body bases its decisions on good quality

information and advice and identifies and mitigates risks

to the organisation’s purpose.

4.1

Risk

8.1 The satisfactory management of gas installations is a significant area of risk for HHP

and it is therefore critical that robust systems and processes are in place.

Report Details

Gas Audit 2018

9.1 Corgi Technical Services were engaged to carry out an audit of gas management

arrangements and contractors quality of work. They have also carried out the

previous gas audits in 2011, 2014, 2016 and 2017.

9.2 The objective of the audit is to assess the internal systems used to control and manage

the gas work undertaken in HHP properties and to assess the quality of the servicing,

repair and installation work carried out by our contractors. The systems were reviewed

against Gas Safety Legislation, Health and Safety Legislation and industry best

practice to ensure they are sufficiently robust to manage the risks to which HHP is

exposed.

9.3 A copy of the Executive Summary is attached at Appendix 1. A full copy of the report

is available to Board Members if required.

9.4 The audit has highlighted areas for improvement which has been addressed through

discussions with HHP, FES FM and Alex Murray Construction. The contractors have

been warned as to the potential consequences of failure to meet acceptable

standards and to achieve improvement in quality.

HHP Management of Gas Safety

10.1 Corgi Technical Services measure the overall average performance level for Gas

Safety Management by means of a Gas Map. This Map measures performance

against 9 areas of gas safety. The scoring matrix then grades the overall level of

performance from 0 (no strategy) to 4 (comprehensive strategy). The 2018 Gas Map

for HHP is attached in Appendix 2.

10.2 HHP has once again achieved an improvement in our gas management

performance over the last 12 months.

10.3 Gas awareness training for HHP frontline staff took place on 16 August 2018.

10.4 There were no recommendations following this audit for improvement in the HHP

management of gas safety. Further improvements would require HHP staff gaining

formal gas qualifications.

Quality of Work (FES FM LTD)

11.1 The audit assessed the quality of the gas work carried out by FES FM Ltd (FES) on HHP

gas services. A summary of the findings is attached in Appendix 3.

11.2 9 audits were carried out on work through FES. The audit found several issues with the

quality of work and documentation and the overall score was 57% which is less than

the 68% score in 2017. Documentation issues have not improved and the quality of

work has dropped from 86% to 63%.

11.3 Two properties were identified as ‘At Risk’. Both issues may not have been present at

time of service.

Quality of Work (ALEX MURRAY CONSTRUCTION LTD)

12.1 The audit assessed the quality of the gas work carried out by Alex Murray Construction

Ltd (AMC) who installed gas boilers as part of the investment programme. A summary

of the findings is attached in Appendix 3.

12.2 8 audits were carried out on work completed by AMC who now have their own Gas

Safe engineers. The audit found several issues with the quality of work and

documentation and the overall score was 19% which is substantially less than the 50%

score in 2017 although the number of audits has increased.

12.3 One property was identified as ‘At Risk’ due to restricted isolation of the external gas

service valve i.e. it would not fully close. This valve is an existing valve but the

contractor should have identified the issue during the service being carried out. This

valve had not previously been identified by any other HHP gas service contractor.

Conclusions

13.1 Gas audits act as a method of scrutiny and Corgi are rigorous in their approach. Both

FES and AMC have allowed standards to slip and this will be addressed. Toolbox talks

will be undertaken with engineers to address documentation issues. Both companies

are registered with and audited by Gas Safe.

13.2 Documentation errors are still prevalent with no visible pattern. One FES engineer

improved significantly whilst another slipped backwards. AMC were similar in that the

engineer who was audited last year showed no improvement.

13.3 HHP is exploring options to assist in improving gas servicing standards within the local

industry with Corgi Technical Services and particularly with our framework and

maintenance contractors.

13.4 To address issues with documentation HHP is holding discussions with gas contractors

on using software systems that will eliminate errors with documentation and improve

quality of work. Proposals emanating from these discussions will be brought to

Executive team.

Appendix 1

Corgi Technical Services Executive Summary

Overall conclusion on effectiveness of internal controls

The audit review has highlighted improvements in most areas since the previous audit. There

are still a number of weaknesses in the systems that control the facilitation of gas work within

Hebridean Housing Partnership (HHP) properties. Although some are of a minor nature, some

issues could lead to the association not being able to demonstrate that they are in full

compliance with Landlords duties as required in the Gas Safety (Installation and Use)

Regulations 1998.

The audit identified areas where improvements could be made, which included the

following:

There is no evidence of regular contractor QC results to ensure gas safety is

maintained and managed within HPP properties. An annual report is provided to HHP,

the current report was not available at the time of the audit. The QC process would

benefit from a more “regular” or ongoing reporting system rather than an annual

report. The process details 10% of inspection required although this is not able to be

demonstrated.

Staff training for verification of completed LGSRs to ensure documents are fully

completed and compliant with gas safety regulations.

Not all anomalies in completion of the LGSRs were being picked up by the

contractors supervisory/QC system. Staff training for verification of completed LGSRs

to ensure documents are fully completed and compliant with gas safety regulations.

The operations for void properties would benefit from a risk assessment review to

confirm they are meeting the requirements of Health and Safety Legislation and the

requirements of the GSIUR. This is to ensure maintaining gas safety in properties at all

times.

Site Audits

Quality of Work

In respect of the quality of work, delivered on behalf of HHP by its Contractors they have not

met national benchmark in respect of work activities (93%), achieving 44%. This shows a

decline from previous audit results produced for HHP and we will explain the possible reasons

for this below.

During this period of auditing three Landlords installations were found to be ‘Immediately

Dangerous’ or to be ‘At Risk’ by the CORGI Technical Services Auditor.

5 Westview Terrace: Builders opening not sealed in the correct manner ‘At Risk’

6 Columbia Place: Emergency Control Valve not operable ‘At Risk’

9 Gibson Gardens: Component not seated into casing to allow separation between

the room and combustion air for a room sealed appliance ‘At Risk’

One tenant’s own appliance was found to be ‘At Risk’. This was not recorded as an engineer

failing due to the tenant informing the auditor that the fault was intermittent; therefore the

fault may not have been able to be observed during the engineer previous visit.

All other ID’s and AR’s have been dealt with by HHP’s Contractor in the correct manner as

required in the GISUP.

Documentation

In respect of records you will note from the results that operatives are not completing

documentation correctly and are achieving compliance significantly below the National

average (78%), achieving 31%. This shows a decline from previous audit results produced for

HHP, the possible reasons for this below.

The documentation for New Installations are assessed against commissioning records

(Benchmark) in addition to any LGSR provided. The main areas identified as requiring

attention are:

Defects not identified and Remedial action

Prior to 6th April 2018 it was recognised in the GSIUR that all defects including safety and non-

safety related defects were to be recorded on an LGSR along with the remedial action

taken.

This meant that any defects identified during this audit and not noted on the LGSR, results in

the LGSR not being completed correctly. After the 6th April 2018, GSIUR only requires safety

related defects to be recorded on LGSRs. These are ‘At Risk’ or ‘Immediately Dangerous’

defects that exist.

The change introduced above may affect the individual scores of some audits due to some

audits in this auditing period being undertaken on work done before this change was

introduced and some being undertaken on work done after the change was introduced.

During the next audit period it is advisable to only assess work completed after the 6th of

April 2018. CORGI Technical Services have found that overall scores of documentation

compliance have improved due to a decrease in documents failing as a result of not

recording NCS defects.

We do advocate that Gas Operatives continue to record all defects safety related or not on

LGSRs to enable clients to make decisions on managing their housing stock. The LGSR is after

all the only document many clients receive at regular intervals containing information

relating to the condition of gas installations they are responsible for.

If HHP confirm that they have instructed their Contractors to continue to document NCS

defects on LGSRs and it is identified that the defects have not been noted, CORGI’s Auditors

will bring it to the attention of HHP via audit notes, but it will not constitute a failed document

or work activity for completion of LGSRs alone.

Other areas identified as requiring attention are:

Regulation 26(9) checks. (functional testing)

Several of the documents were found to have incomplete or incorrect information recorded

to demonstrate completion of 26(9) checks. These are primarily:

Flue gas analysis readings not being recorded or ratios recorded where the

appliance manufacturers do not specify a ratio and only specify acceptable CO2%

readings as a way of confirming satisfactory performance.

Operating pressures recorded for appliances where it is not possible to record an

operating pressure and the appropriate test would be to measure and record the

gas rate (heat input) of these appliances.

Where it is not possible to determine through documentation that the engineer completed

these checks correctly the document and work activity fail. With training, monitoring and

guidance aimed at these particular subjects it may be possible for HHP to see a significant

improvement in their average compliance scores.

Customer Satisfaction

As an additional service, CORGI Technical Services are undertaking customer satisfaction

surveys; the full results are detailed in section 14 of the main audit report.

In respect of the above it stands out that HHP’s tenants report having excellent customer

experiences and those encountered are satisfied with HHP. HHP and its Contractors should

be congratulated on the level of customer satisfaction being reported.

Recommendations

The recommendations in this report are graded in accordance with the following definitions:

Fundamental recommendations represent fundamental control weaknesses, which

expose the Association to a high degree of unnecessary risk.

Significant recommendations represent significant control weaknesses which expose

the Association to a moderate degree of unnecessary risk.

Housekeeping recommendations show areas where we have highlighted

opportunities to implement a good or better practice, to improve efficiency or further

reduce exposure to risk.

Management Audit

Observations Risk Suggested action Priority

/Responsibility

Contractor

Supervision/QC

levels

Contravention of the

Gas

Safety (Installation &

Use) Regulations 1998

Provide specific

guidance and

set requirements to meet

service level

agreements/targets

Significant

HHP/ FES

Works Audit

Observations Risk Suggested action Priority

/Responsibility

Gas installation

identified as “At Risk”


Gas Safety Installation

& Use) Regulations

1998

Contractor engineer

training and increased

levels of monitoring &

supervision

Fundamental

Contractor

(FES/

AMC) to

provide

evidence

Installation/applianc

e

significant issues not

highlighted for

remedial

works


Gas Safety Installation

& Use) Regulations

1998

Contractor engineer

training

and increased levels of

monitoring

Significant

Contractor

(FES/

AMC) to

provide

evidence

Unable to verify

complete appliance

service checks

Non-compliance

Manufacturer’s

instructions

Contractor training

specific to

manufactures service

requirements

Housekeeping

FES

Outstanding issues

on

new installations

Non-compliance

Manufacturer’s

instructions & relevant

standards

Quality control Housekeeping

AMC

APPENDIX 2

GasMap Review July 2018

Progress Level

Contractor Selection

Specification Document

Void Properties

Mutual Exchanges

Work Records

Gas Escapes

& RIDDOR

Access Policy

PersonnelQuality Control

4 11 11 12 12 11 12 12 10

3 9

2

1

0

Level 0 There is no overall strategy for this area of operation. There is no framework for personnel within the organisation to work to and no definitive guidance to assist individuals in implementing any actions. No defensible evidence is being produced and therefore the organisation will be at risk should an incident occur.

Level 1 There is an awareness of the need for processes to be in place in order to deliver safe gas work, however not enough is being done to ensure that a uniform strategy is being adopted across the organisation. It is unlikely that the organisation would be able to demonstrate that all reasonable steps are being taken to fulfil regulatory requirements

.

Level 2 The importance of gas safety as an issue has been recognised and addressed in certain elements of the operation. Weaknesses are still apparent in certain areas of the processes and procedures that are being utilised. Assessments are required to identify key areas of improvement that will address the shortcomings.

Level 3 Gas safety is taken seriously as an issue by the organisation and the organisation is attempting to deliver a strategy that reflects this. Most important areas are being addressed but there is still scope for improvement to ensure the processes and procedures are as robust as they can possibly be. Specialist, technical knowledge may be lacking in key areas of operations within the gas management team.

Level 4 A comprehensive strategy is in place to deliver a good service to the tenants whilst ensuring the organisation is striving to fulfil its duties. Processes and procedures are laid out for personnel to follow so that individual decision making is minimal in key areas, ensuring a corporate approach is being adopted in all possible instances

.

Scores are out of 12 in each category.

GasMap Review July 2017

Progress Level



Void Properties

Mutual Exchanges

Work Records

Gas Escapes

& RIDDOR

Access Policy


4 11 11 11 12 12 10

3 8 9 8

2

1

0

GasMap Review November 2011

Progress Level



Void Properties

Mutual Exchanges

Work Records

Gas Escapes

& RIDDOR

Access Policy


4 11

3 7 8 7 9 9

2 6 4 4

1

0

Scores are out of 12 in each category.

Appendix 3

CORGI TECHNICAL SERVICES GAS SERVICE SUMMARY FOR HHP PROPERTIES

Post inspection checks

A total of 18 post inspection checks were undertaken during July 2017 to provide HHP with an

accurate assessment of the quality of gas work undertaken by operatives. The assessment of

work was carried out by selective sampling of recently completed work, e.g. gas safety

checks, installations, repairs etc. and verifying these jobs have been undertaken correctly.

Part of the check is also to ensure correct completion of the required documentation.

Quality of work (FES)

Servicing Properties

During this period 9 site inspections were undertaken. The quality of work assessed by the

operatives scored a performance level of 63% compared with the National Benchmark

average of 93%.

Immediately Dangerous and At Risk (ID & AR)

During this period 2 installations were found to be 'immediately dangerous 'or 'at risk' by the

Auditor. However, it is possible that neither of these were present at the time of the last

service. All other ID's and AR's have been dealt with by the contractor in the correct manner

and the industry unsafe situations procedure followed.

Documentation / Landlords Gas Safety Records (LGSR's);

Records and documentation scored 50%, compared with the National Benchmark average

of 78%. During this audit 4 Landlords Gas Safety Records (LGSR) were considered to be

unsatisfactory by the auditor.

Quality of work (AMC)

Servicing Properties

During this period 8 site inspections were undertaken. The quality of work assessed by the

operatives scored a performance level of 25% compared with the National Benchmark

average of 93%.

Immediately Dangerous and At Risk (ID & AR)

During this period 1 installation was found to be 'immediately dangerous 'or 'at risk' by the

Auditor. All other ID's and AR's have been dealt with by the contractor in the correct manner

and the industry unsafe situations procedure followed.

Documentation / Landlords Gas Safety Records (LGSR's);

Records and documentation scored 13%, compared with the National Benchmark average

of 78%. During this audit 7 Landlords Gas Safety Record (LGSR) was considered to be

unsatisfactory by the auditor.

The following Performance Benchmark Chart maps performance returns and highlights both

gas work and documentation performances for HHP contractors for both the current and

previous audit results.

Overall Performance Work correct Records correct Audits completed

Contract Period

2011 57.9% 0% 19

2014 77.8% 41.2% 18

2016 53% 47% 17

2017 78% 56% 18

2018 44% 31% 17

National Benchmark 93% 78%

Contractor Performance Work correct Records correct Audits completed

Contract Period

2016

FES 60% 53% 15

Alex Murray Construction Ltd 0% 0% 2

2017

FES 86% 50% 14


2018

FES 63% 50% 9




ITEM NO 20

WELFARE REFORM

Board Report 20 November 2018


Purpose of Report

1.1 This report is to update the Board on the preparatory work carried out for Welfare

Reform.

Summary

2.1 Full Service Universal Credit commenced in the Outer Hebrides on 26 September 2018.

An update is detailed in the report.

2.2 HHP are now a UC-Trusted Partner and have access to the DWP Landlord Portal. This

will have significant benefits in assisting tenants with UC.

2.3 DWP have made funding available to local authorities to help deliver Universal

Support.

2.4 The Government have announced that they will be funding CAB to help deliver a

comprehensive, enhanced support service for UC claimants.

Competence

3.1 The financial, legal or other constraints are detailed at paragraph 5.1 and 6.1.

Recommendations

4.1 It is recommended that the Board notes the report.

APPENDIX 1: None


Writer of Report: Donalda MacKinnon Tel: 0300 123 0773


Competence

Financial

5.1 The Welfare Reform changes present financial challenges for HHP as rental income

becomes more difficult to collect and the costs of collection increase. The

unpredictability of payments under Universal Credit in particular will also impact on

cashflow.

Legal

6.1 There are no legal implications arising out of consideration of this report.

Regulatory Guidance


Standard Sections



service users.

1.1, 1.6





these priorities

2.2



3.3




4.3

Risk

8.1 Rent arrears levels are likely to increase as tenants’ income reduces. It is hoped that

arrears due to Bedroom Tax will not increase because of ongoing assistance available

through the Comhairle via Discretionary Housing Payments (DHP). Tenants in receipt

of DHP due to bedroom tax have had this extended until 31 March 2019.

8.2 Universal Credit remains a very significant risk on the Risk Register. Bedroom Tax risk

has been reduced but will be reviewed if the situation with DHP changes.


Report Details

Current Position

9.1 Universal Credit Full Service commenced in the Outer Hebrides on 26 September 2018.

An update on some of the key elements is summarized below.

9.2 Universal Credit full service is delivered via an online self-service and some people will

need help with this. UC Full service requires the claimant to maintain their online

journal where all “to-do” items will be sited. If they fail to maintain their journal they

could be sanctioned or payments could be delayed.

9.3 UC will replace Housing Benefit, ESA, JSA, Child Tax Credit, Working Tax Credit and

Income Support, these are known as legacy benefits. If someone is claiming benefits

for the first time then they will be advised to apply for UC. If a current benefit

claimant has a change in circumstances they will be advised to claim UC. The

natural migration for those in receipt of legacy benefits is due to commence in 2019.

Numbers of HHP tenants claiming UC will increase gradually and it is expected to

peak at approximately 700 by March 2022.

9.4 Following the implementation of Full Service UC 18 rent verification notifications have

been received through the landlord portal.

Advice and Assistance

10.1 There are a number of concerns around digital self-service. All claimants will need a

phone number, bank account and access to the internet to claim for UC full service.

Not all claimants will have these in place.

10.2 Universal Support (US) is advice, assistance and support provided by agreed partners

such as Local Authorities, Citizens Advice, Credit Unions, registered Social landlords

and relevant registered charities.

10.3 DWP has made funding available to local authorities to help deliver US. Help with

applying for Universal Credit will be provided by CNES Customer Service staff in the

Stornoway Library and Tarbert, Balivanich and Castlebay Council Offices. This is

known as Assisted Digital Support. This assistance is by appointment only.

10.4 On 1 October 2018 the Government announced that they will be funding the CAB to

deliver a comprehensive, enhanced support service helping people to make a UC

claim. The support scheme will help claimants through every step of the first five

weeks of making a Universal Credit claim. It will offer people the comprehensive and

practical support they need to get their first payment on time and be ready to

manage it when it arrives. This is as well as providing budgeting support for claimants

who are moving from weekly benefits to a monthly UC payment.

10.5 A member of staff from the Stornoway JCP office will be visiting Barra once a week to

deal with claimants there. It was confirmed that those in Barra and Uist that are

unable to attend a local office will be defined by DWP as “remote postcode”

claimant. This allows them to post their ID to the Stornoway JCP and their claimant

commitment can be done over the phone or via Skype. The claimant commitment

has to be agreed before any money will be released. Full confirmation of this process

is due to be issued by DWP shortly.


10.6 When a claimant moves from legacy benefits to UC Housing element and they are in

receipt of Housing Benefit, a 2 week “run on” of their HB will be an automatic process

and is to be paid direct to the tenant and not the Landlord. The “run on” is not for

their rent but is intended to help them with the transition from a weekly/fortnightly

benefit to a monthly payment. The housing element of their UC will start from the

date of claim.

Process and Systems

11.1 HHPs IT system has been developed to incorporate UC requirements. This includes

case management and arrears escalation functionality. We have contacted a

number of tenants, who are in receipt of Universal Credit at present, to use them as

test cases for the revised workflow processes.

Training

12.1 Further training for staff and Board members is being arranged through Bill Irvine. A

provisional date of 13 March 2019 has been agreed.

12.2 A Tenant Advisor from Lochalsh and Skye Housing Association visited HHP on 23

August 2018 and gave a presentation on their experiences so far following Full Service

implementation of UC in Skye in 2017. Staff found this session informative and useful.

12.3 Housing Services staff have been carrying out weekly training for the last month. This is

set to continue until further notice.

Communication

13.1 A full page article on Full Service roll out was published in the summer edition of the

Homeward newsletter. A further article will be published in the winter edition.

13.2 Targeted communication is ongoing with current cases transitioning to Full Service.

We will also work closely with new claimants over the coming weeks.

Caseload

14.1 Following Full Service implementation all Live service claims will be closed and a new

claim for Full Service will need to be completed. The change is scheduled to take

place on 17 October 2018. Following the changeover, if an APA is in place, a new

application to UC for direct payments will be required. At present there are 24 Live

cases of UC of which 17 have an APA in place. These accounts will be closely

monitored and APAs applied for as soon as the new claim is available on the Portal.

14.2 We will also monitor the impact on officer caseload and the effect of UC on arrears

levels.

DWP Liaison

15.1 HHP have been enrolled on to the Universal Credit-Trusted Partner Scheme and the

UC Landlord Portal. To date there have been no claims for Full Service UC.

Partnership Working

16.1 Regular meetings continue to be held with CNES, JCP and CAB to discuss the advice

provision available for service users. CNES have employed two Financial Inclusion

Officers, one for Uist and Barra and one for Lewis and Harris. The role of the FIO is to

carry out checks for claimants to ensure that they are getting all the benefits they are

entitled to.

making our house your home board agenda 20 november 2018€¦ · 20-11-2018 · determined by...

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