Business Plan 2017 – 2022
#betterhomes #brighterfuture • www.taiceredigion.org.uk
Executive Summary #betterhomes #brighterfuture
•
www.taiceredigion.org.uk
Welcome to Tai Ceredigion’s latest corporate business plan, which sets out the Association’s main priorities over the next five years. At the heart of our business is still our original vision to be “A first class bilingual landlord and employer that puts tenants first, provides quality homes and benefits communities and the local economy” Steve Jones Chief Executive
Derek Lassetter Chairman
As we approach the start of our ninth financial year in operation, 2017/18, the Board of Management has once again undertaken an annual review of our main business priorities to deliver the above vision statement. It is our commitment to give priority to supporting our tenants during a very unsettling time with the Government’s welfare reform cuts. We are committed to Community Housing Cymru’s Code of Governance for housing associations and will continue to strive to be an employer of choice providing training and work placements in west Wales.
This new business plan sets out our main priorities for the next five years, and is supported by a more detailed annual operational plan and budget. The plan is reviewed by the Board of Management at an annual business planning event, which is attended by representatives of our Independent Tenant Monitoring Group. We hope that you enjoy reading our new plan and please feel free to contact us if you have any questions about it. Warm regards, Steve Jones Chief Executive Derek Lassetter Chairman
2
Overview – The Organisation: #betterhomes #brighterfuture
Past
•
www.taiceredigion.org.uk
All 171 promises made at stock transfer completed Tenant engagement Completion of Welsh Housing Quality Standard Developed new homes Set up a social enterprise – MEDRA Completed a successful governance review
Present
Value for Money reviews Excellent rent arrears results Partnership working Direct Labour staff rebranded as MEDRA Developing new homes Flagship tenant engagement
Future
Mixed developments, shared ownership Continuous improvement Digital Inclusion Collaborative working/shared services Increasing local jobs and apprentices Selling services externally
3
Strategic Priorities Employer of Choice
Excellent Landlord
Strategic Priorities Financially Viable
Quality Homes 4
Strategic Priorities for 2017/18 1) To be an excellent bilingual landlord which involves its tenants and customers at all levels with emphasis on tenancy sustainment and continuous improvement.
Actions
All external communication in accordance with Welsh Language Standards Improved tenant engagement Review of processes and performance New website
Outcomes
Tenant satisfaction and promotion of the Welsh language Improved efficiency and Value for Money Self-promotion Good communication, feedback and improved services
Resources
Budget – all external policies to be translated Partnership working Staff time IT – tenant portal, performance management software
5
Strategic Priorities for 2017/18 2) To maintain existing, and increase the number of, quality homes within sustainable communities.
Actions
Investment in existing stock New developments of mixed tenure Additional sustainable heating systems Reduction in the number of acceptable fails
Outcomes
Continued WHQS compliance Tenancy sustainment Help reach Welsh Government 20,000 homes target
Resources
Staff with development knowledge Capital funding Social housing grant Up to date, accurate stock data
6
Strategic Priorities for 2017/18 3) To be a financially sound and viable business, that conducts its affairs with honesty, integrity and strong governance.
Actions
Full 5 year budget and 30 year financial business plan Compliance with the Code of Governance Sustainable board with good diversity and skills Value for money across the organisation
Outcomes
Evidence of a going concern for stakeholders Regulatory compliance Equality and Diversity reflecting local community Continuous Improvement
Resources
Qualified, skilled staff Policies and procedures Self evaluation process Good board member recruitment process
7
Strategic Priorities for 2017/18 4) To be an employer of choice that provides local employment opportunities, training and work placements.
Actions
Employ more apprentices Development of existing staff Clear bilingual policies and procedures Increased health and wellbeing of staff New Welsh language initiatives
Outcomes
Local Employment opportunities Billingual workforce Healthy workforce with reduced sick leave Safe working environment Increase apprentice positions and work placements
Resources
Welsh lessons Staff and Board training Specific budgets Staff time/mentoring and coaching
8
Risk Management #betterhomes #brighterfuture
•
www.taiceredigion.org.uk
Tai Ceredigion recognises that many of its activities involve risk and accepts that while risk cannot be entirely eliminated, actions must be taken to ensure it is properly controlled and responsibilities are clearly established. As a complex housing organisation, Tai Ceredigion recognises that it faces risks from a wide variety of sources including:
Government policy/legislation Economic/financial environment Demographic change Market forces Major works programmes/developments Natural hazards Fraud and error Information Technology
All risks are categorised into financial, governance and service risks. These are overarched by two strategic risks: Failure to demonstrate continuous improvement and progress the core purpose of the Association Failure of the Association to be well governed and financially viable
9
Resources #betterhomes #brighterfuture
•
www.taiceredigion.org.uk
The five year budget is characterised by capital spend to maintain the Welsh Housing Quality Standard for existing stock, along with our most ambitious development programme to date of just over 100 properties. This capital expenditure will be funded by our existing £35m facility provided by Barclays bank alongside social housing grant provided by Welsh Government.
Budget assumptions
Rental income has increased in accordance with Welsh Government policy to be within the target rent. Voids and bad debts are assumed at 2% and 1.5% of rental income until 2019/20 when bad debts are increased to 3% as per the expectations of the results of Welfare Reform. Salary costs have been increased as recommended by the Association’s remuneration committee (1.2%).
Operational costs have been fully reviewed and costed for.
Interest rates on existing LIBOR facilities have been assumed at 1.5% for 2017/18 rising to 5% for year five.
Tai Ceredigion has assumed that there will be no property sales.
The five year budget is incorporated into the Association’s 30 year financial business plan and stress tested for changes in assumptions or risk effects and impacts.
10
Resources #betterhomes #brighterfuture
•
www.taiceredigion.org.uk
Statement of Comprehensive Income 2017/18 Budget £’000
2018/19 Forecast £’000
2019/20 Forecast £’000
2020/21 Forecast £’000
2021/22 Forecast £’000
Turnover Net rent & Service charges
11,131
11,410
11,796
11,940
12,321
Operating activities Operational costs Repairs & Maintenance Other spend
3,653 2,945 2,766
3,695 3,019 2,882
3,768 3,096 3,146
3,843 3,175 3,264
3,919 3,256 3,358
Operating surplus/deficit
1,767
1,814
1,786
1,658
1,788
Interest receivable and other income
609
434
476
496
516
Interest payable and similar charges
1,460
1,723
1,884
1,987
2,132
Surplus for the year
916
525
378
167
172
11
Resources #betterhomes #brighterfuture
•
www.taiceredigion.org.uk
Statement of Financial Position 2017/18 Budget £’000
2018/19 Forecast £’000
2019/20 Forecast £’000
2020/21 Forecast £’000
2021/22 Forecast £’000
Fixed Assets Housing properties less depreciation Other fixed assets
54,153 671
63,068 641
65,062 617
66,921 599
68,714 587
Current Assets Debtors Creditors: Due within one year Net current assets
16,479 3,296 3,183
12,666 3,053 9,613
9,175 3,273 5,504
4,912 2,977 1,935
1,028 2,589 (1,561)
Creditors: Due after one year Total
58,500 9,507
63,290 10,032
61,170 10,411
58,877 10,578
56,990 10,750
Reserves
9,507
10,032
10,411
10,578
10,750
12
Resources #betterhomes #brighterfuture
•
www.taiceredigion.org.uk
Cashflow forecast 2017/18 Budget £’000
2018/19 Forecast £’000
2019/20 Forecast £’000
2020/21 Forecast £’000
2021/22 Forecast £’000
Operating Cashflow Surplus Add back depreciation Add back amortisation Total
916 2,472 218 3,170
525 2,593 240 2,878
378 2,888 279 2,987
167 3,014 294 2,887
172 3,118 311 2,979
Capital Expenditure Capital works programme Development costs Other capital costs Total
(4,555) (6,182) (113) (10,850)
(4,663) (6,720) (98) (11,481)
(4,762) 0 (101) (4,863)
(4,758) 0 (103) (4,861)
(4,800) 0 (105) (4,905)
Other income and expenditure WG dowry Other grants
1,600 500
1,600 500
1,600 500
1,600 398
1,600 0
Funding Requirement
(5,580)
(6,504)
225
24
(325)
Opening balance loan account
(21,200)
(26,780)
(33,284)
(33,059)
(33,035)
Closing balance loan account
(26,780)
(33,284)
(33,059)
(33,035)
(33,360) 13
Key Performance Indicators #betterhomes #brighterfuture
•
www.taiceredigion.org.uk
To complement our strategic priorities, Tai Ceredigion has a suite of Key Performance Indicators to monitor performance. Some of the main KPI’s and targets for 2017/18 are listed below: KPI
Target
Current Rent Arrears
1.3%
Void turnover
10%
Responsive repairs completed within target Average re-let days
97.5% 14 days
Average energy efficiency of stock (SAP)
69
Percentage of telephone calls answered
98%
Staff sickness Percentage of services available in Welsh
4% 100%
These KPI’s are monitored by the Board and Executive Team and are supported by operational performance indicators managed by our Operational Management Team.
14
The Board #betterhomes #brighterfuture
•
www.taiceredigion.org.uk
Derek Lassetter Chairman (Independent)
John Jenkins (Independent)
Peter Deakin (Tenant)
Karen Oliver (Co-optee)
Peter Saunders (Independent)
Cadwgan Thomas (Independent)
Catherine Shaw (Tenant)
Stephen Cripps (Co-optee)
Chris Mackenzie-Grieve (Co-optee)
15
The Board #betterhomes #brighterfuture
•
www.taiceredigion.org.uk
Council Nominees
Cllr. Dafydd Edwards
Cllr. Lynford Thomas
Cllr. Lorrae Jones-Southgate
Cllr. Catrin Miles
16
The Executive #betterhomes #brighterfuture
•
www.taiceredigion.org.uk
Executive Team
Steve Jones Chief Executive
Eleri Jenkins Director of Housing and Support
30+ year career in housing Appointed Tai Ceredigion’s first CEO in 2008 Guided TC through stock transfer from Ceredigion County Council Former Group Director of Community Services at Pennaf Housing Group Voluntary member of Teifi Valley Employment Growth Zone Advisory Board and Digartref Ynys Môn Fluent Welsh speaker
35 years of experience in all aspects of housing management Past experience in local authority and with Cymdeithas Tai Cantref In post since stock transfer in 2009 Respected housing professional in west Wales and Fellow of the CIH Leads on tenant involvement and participation Fluent Welsh Speaker
Over 20 years housing experience Degree in Building Technology and Management In post since stock transfer in 2009 Planned, managed and successfully oversaw completion of WHQS works Currently leading on TC’s development plans Fluent Welsh Speaker
ˆ Edwards Llyr Director of Property Services
10 years Public Sector Finance experience Chartered Accountant Transferred from Ceredigion County Council to Tai Ceredigion Appointed Director of Corporate Services in March 2016 Trustee of Age Cymru Ceredigion Active Welsh learner
Kate Curran Director of Corporate Services
17