Board Tuesday 15 March 2016 at 5.00pm Meeting to be held at YHN House, Newcastle upon Tyne. Contact: Jill Davison (telephone: 0191 278 8624 email: jill.davison@yhn.org.uk)
AGENDA
Introduction items
Timing
1
Reminder to switch off mobile phones
5.00
2
Apologies for absence
3
Declarations of Interest
4
Chairs Items
Page No.
5.05
Item for decision 5
HCA de-registration
5.15
Supplemental Report
5.25
1
Item for approval 6
Minutes of 2 February 2016
Items for information 7i
NCC update on tenant and leaseholder engagement
8
7ii
Delegated Decisions
15
7iii
Board Forward Plan
18
7iv
Committee minutes: - Group Audit Committee 19 November 2015
19
To exclude the press and public during discussion of agenda item 8-12 because of the likely disclosure of confidential information. The definitions of what is considered confidential are contained within Section 16 of the Company’s Standing Orders.
Protect not for publication Items for approval 8
Confidential minutes 2 February 2016
5.30
24
9
2016/17 Delivery Plan and Budget
5.35
27
10
5 Year Plan & Stress testing
6.05
77
Items for decision 11
Resettlement of households from Afghanistan and Syria
6.25
89
12
Repairs and Maintenance Operational Resources
6.40
97
Date of next meeting 10 May 2016 5pm YHN House
Board 2 February 2016 (5.00pm to 7.50pm) Present: O Grant (Chair), P Dibbs, L Doherty, V Dunn, P Dutton, D Huddart, J McCarty, T Moore, M Page, J Reid, P Scope, D Slesenger, J Streather, L Stephenson, M Talbot, L Wilson. In attendance: J Davison
Company Secretary
N Scott
Director of Tenancy Services (until 6.55)
S Breslin
Assistant Chief Executive & Director of Corporate Services (until 6.55)
D Langhorne
Director of Property Services (until 6.55)
L Forrest
Head of Finance (until 6.55)
B Elder
Strategic HR Manager
D Creighton
Executive Assistant to the Chief Executive (until 6.55)
J Urwin
Head of Housing Options (until 6.55)
M Burn
Head of Support and Care (until 6.55)
L Horsefield
Head of Business Strategy (until 6.55)
L Ainscough
Policy and Business Support Officer (until 6.55)
G Ellingham
Head of ICT (until 6.55)
J Nelson
Newcastle City Council (until 6.55)
A Senior
Newcastle City Council (until 6.55)
C McMullen
Newcastle City Council (until 6.55)
R Tshibuyi
Asfaleia Board member (until 6.55)
440
WELCOME The Chair welcomed everyone to the meeting. The Chair requested that all members turned their mobile phones off. The problems of interference with the microphone system had been investigated and a solution was being sourced but it helped if all mobiles were switched off and not just on silent.
441
APOLOGIES Apologies were received from Ammar Mirza, Julie Purvis and Elaine Snaith.
442
DECLARATIONS OF INTERESTS No interests were declared
Page 1 of 23
6
443
CHAIR’S ITEMS The Chair notified Board members of some really positive feedback received from the local police in connection with the support given to Syrian families who have arrived in the city. All the partners, agencies and YHN staff worked exceptionally together to provide support and a really positive welcome to families who have arrived from what is a horrible situation in their home country. A Board member echoed the thanks to all the staff involved, explaining the councillor of the ward where the families are homed received an email of thanks from the local police for all staff involved, especially the amount of clothing donated. A Board member enquired if families were housed in one area or spread across the city. It was confirmed that 20 families were in two areas of the city. The Chair also updated the board that she and other board members had completed Safeguarding training which was really interesting and very important for all Board members to attend.
444
BUSINESS STRATEGY Submitted: Report by the Director of Corporate Services (previously circulated, copy attached to Official Minutes). S Breslin introduced the report which presented the Business Strategy 2016 – 2020 for approval. The strategy has been prepared within the context of political and economic uncertainty, just last year we didn’t know about the 1% rent reduction, and whilst these are concerns for the Housing Revenue Account (HRA) it was noted they still have an effect on YHN through the management fee. The strategy has been written with a clear purpose to help make decisions in the future. More details will be included in the delivery plan which will be presented to Board in March and monitored quarterly. The strategy sets out how we will achieve our cross cutting objectives and we have been specific about the performance measures. Where benchmark data is available we have set the target as top quartile, and where there is no benchmark, a year on year improvement has been set. Each section includes details on the assumptions, challenges, performance, outcomes and measures. Louise Horsefield and Lisa Ainscough have edited the document and there has been wider participation and input. Questions/Comments A Board member thanked the officers for all the hard work, and commented that the document was discussed at the Abri Board in relation to the nature of the employees at Palatine Beds. Whilst we must concentrate on trading profitably we must not lose sight of the social obligations. A suggested amendment to page 8 was to include the words ‘and appropriately’. S Breslin responded this was a good point and that page 24 also stated that we would maintain the current levels of supported employment. Page 2 of 23
A board member commented it was good we were aiming for top quartile, and questioned a few points for clarification: - page 13 the target for rent being paid in advance by Direct Debit was stated as the majority, is this 51% or do we need to include a specific target. - page 18 there is a measure relating to the gap between tenants and the rest of the UK, should this be compared to the rest of Newcastle? This was answered by G Ellingham when talking to a later report. - page 19 ‘online transactions more than trebled’. Is this YHN or a variety of organisations? It was confirmed as YHN transactions. - page 23 it was questioned who the engagement related to, where levels were to be increased. This was confirmed as staff and needed to be inserted. - page 29 in relation to partnerships, it was suggested the measure was partner feedback and not all internal. - page 18 a Board member questioned the digital inclusion levels of other social housing providers and whether this comparator should be included. - page 15 regarding health and wellbeing the last sentence seemed to be definite and it was questioned how we get the balance between not just interventions at crisis point but prevention as well. The Chair commented that vulnerable people have needs at different points in their lives and this will be looked at in detail when considering the delivery plan. S Breslin responded that all points raised would be re-looked at for further clarification and amended. The digital inclusion comments would be addressed in the next item. RESOLVED, the Board approved the Business Strategy subject to the amends noted. 445
DIGITAL BY CHOICE Submitted: Report by the Director of Tenancy Services (previously circulated, copy attached to Official Minutes). The Chair thanked all council members for attending the Board, as there is a celebration event for 800 years of the Lord Mayor happening tonight, and this is why Tony Durcan from the City Council could not attend for this item. Geof Ellingham and Jenny Nelson joined the board table discussion. Neil Scott presented the report which gave an update on activity during recent months. The roll out of Wi-fi in public spaces and residential buildings is continuing with launch parties to help people get online. The change to cashiering services has gone smoothly and there has been no impact to rent collection rates. Work is currently being undertaken looking at the best use of community hubs, ensuring there are appropriate resources needed for face to face services. It has always been the intention with the move online that where appropriate face to face service will always be offered. The report outlines the collaborative work with NCC and the commitment to move at the same pace to ensure we share the benefits of economies of scale. Neil Scott also confirmed that Cabinet agreed this week to allocate ÂŁ500,000 in Page 3 of 23
6
the HRA capital programme for tenant broadband for 2016/17. Geof Ellingham highlighted section 3.1 of the report where YHN are doing things the same as the city in relation to services, and differently due to capability and skills of tenants. It was also highlighted that the technologies used to provide broadband was not mature, so we are working with NCC and the universities on pilots, looking at a range of models to test the best solution before procuring a system. Geof Ellingham commented on the discussion around comparing tenants with the rest of the UK and noted that the difference between the UK and Newcastle was only about 2% points, and whilst social housing tenants are generally 510% behind the rest of the UK they are all trying to improve so will reduce the gap. It was also noted that data on other social housing providers was not available. Geof advised that the best comparator would be with the UK. Jenny Nelson commented on the report, expressing the city council’s thanks to YHN, Geof and his team on the support given to the project. Questions/Comments A Board member commented that not all tenants are excluded from digital and have their own broadband and access online so we need to be careful not to generalise. A Board member commented that the report was an excellent update and it was fantastic news that the withdrawal of the cashiering services had little impact and this was credit to the staff who have gone over and above to move customers onto Direct Debit. It was also a great investment in staff time training the digital champions. A Board member commented that the Wi-fi in communal areas highlights problems for residents who wish to use online services like banking or Skype in private. The Board member also enquired if we use “user researchers” to act on user feedback to make services more user friendly. Geof Ellingham responded to the comments, explaining that research tells us to build online services for those who are already engaged, and they are setting out different archetypes of people to find out what will work best for each group. The user research is coming from our tenant digital champions and we also use analytics which is data about where people go on our website, if they get stuck at any point or don’t go any further with applications for example we can use this information to try to improve the service and website layout. A Board member asked if there is a live chat facility on the website. Geof Ellingham responded that not at present but we are currently rebuilding the website which will launch in March 2016 and this will focus more on the customer journey, and integrate social media, SMS and look at using live chat. The Chair commented that she had discussions with Geof Ellingham and Jill Davison regarding the Board meetings going digital, reducing the paper printed, using tablets and sending papers electronically. She felt it would change the dynamics of the meetings and wanted to look at more research before making a decision. The Chair thanked Geof Ellingham.
Page 4 of 23
RESOLVED, the Board noted the report and agreed to receive periodic updates on progress of the action plan.
446
BOARD LEARNING AND DEVELOPMENT PLAN Submitted: Report by the Company Secretary (previously circulated, copy attached to Official Minutes). Jill Davison presented the report which outlined the background to the governance self-assessment and production of the Governance Improvement Plan. It was highlighted that during the last nine months since the Board away day we had completed the disaggregation of YHN finances from the HRA, restructured the company to create a group structure, formally incorporated Abri Trading Limited and Asfaleia Limited as a Community Benefit Society and appointed directors to these subsidiaries. The updated action plan was presented as an appendix to the report which noted the completed actions and those still outstanding. Jill Davison noted the actions still outstanding were; a full review of the Financial Regulations in relation to the group structure and MD responsibilities, review of the appraisal process linked to the learning & development plan, review of Board agenda and report content, and finally succession planning for both Board members and senior management. Following the agreement by Board in September 2015 of the key areas of Learning & Development required, Jill Davison had worked with organisational development and created the Board Learning & development plan for 2016 attached as an appendix. Jill Davison highlighted the following. Proposing a full day session in April with an external provider to cover the most important areas of Board members’ role. The Chair would like to find a date when the majority of members can attend to maximise the investment. This will be 2016 away day. Finding suitable dates is always hard and there is a need to appreciate Board members’ commitments. Within the plan we have tried to schedule some training into Board meetings and also hope we can utilise the online training available as this can be done from home without having to attend. As mentioned when looking at appraisal/board members review process this will be linked to the L&D plan and training which has been completed in the year by each Board member and will be reported to the Chair. Training covers all areas of roles, Board members have some statutory duties which will be covered in the one day session, other training is optional depending on Board member needs, and others relate to specific areas such as JCC, Abri, Audit etc. RESOLVED, the Board approved the Learning and Development Plan 2016.
Page 5 of 23
6
447
MINUTES OF 8 DECEMBER 2015 RESOLVED that the Board; Considered the minutes of the meeting held on 8 DECEMBER 2015 and approved them as a correct record.
448
ITEMS FOR INFORMATION
449
UNIVERSAL CREDIT Neil Scott commented on the report and highlighted that YHN had been chosen by DWP to be a trusted partner. YHN will be 1 of 20 partners, (who were chosen out of 200 applications) so this is a great success. The status meant that applications for alternative payments, where housing benefit is paid direct to the landlord, would be accepted immediately. It was also highlighted that the city centre job centre would be moving applicants onto Universal Credit, so where we have seen a slow start it will now increase. A Board member questioned if the rent collection rate of 79.3% rate was good or not. Neil Scott responded this was not good, but there has been a steady rate increase. The demographics and gender breakdown of tenants affected was requested to see more detail in future reports. A Board member asked what personal budgeting support was given to tenants. Neil Scott explained Donna Gallagher and her team offered individual support with alternative payments and money advice. A Board member asked how disability living allowance was factored into Universal Credit. Neil Scott offered to come back to Board members outside of the meeting with the information.
450
RESOLVED – That the following items be received for information: 8ii) Stonewall 8iii) Delegated Decisions 8iiv) Board Forward Plan 8v) Committee Minutes: Service and Strategy Delivery Committee 1 December 2015
451
EXCLUSION OF PRESS AND PUBLIC RESOLVED – That in accordance with the organisation’s Access to Information provisions, the press and public were excluded from the meeting during the consideration of all further agenda items.
Page 6 of 23
……………………………………….. Mrs O Grant Chairman 15 March 2016
6
Page 7 of 23
Board 15 March 2016 Newcastle City Council (NCC) approach to tenant and leaseholder engagement Report by Director of Corporate Services and Assistant Chief Executive For information 1.
Background information
1.1
Attached to this covering report is a paper, written at NCC, which provides an outline of developments with regard to tenant and leaseholder engagement, for information. When there are more details about operations and processes a further report will be brought to Board. In particular this will need to deal with the interrelation between NCC and YHN engagement activity.
2.
Synopsis
2.1
There is a wish at NCC to engage with a wide and diverse range of tenants and leaseholders on issues that affect them and are important to them. These issues would primarily, but not exclusively relate to housing. There is also a desire that engagement activity covers strategy, scrutiny and governance.
2.2
Plans also include the creation of a Tenant and Leaseholder Panel (also referred to as a Housing Involvement Panel) to consider feedback from a range of sources, including YHN. In addition, the panel will have a role in monitoring and improving standards, and defining areas for scrutiny.
2.3
To this end, a procurement exercise for a service to support engagement has been undertaken, and the Council’s own Communities Team was the successful bidder.
2.4
The terms of reference for the panel are yet to be agreed, and the precise nature of the way that the service will operate still needs to be developed. This will enable an understanding of the relationship between YHN’s activity and NCC’s. Officers from both organisations are working together to help progress this.
3.
The Business Implications
3.1
Purpose and Strategic Objectives: Effective engagement can help us achieve our purpose and all of our objectives.
Page 8 of 23
7i
3.2
Value for money/efficiencies: as the service develops, work needs to be done to ensure that processes at NCC and YHN are complementary and avoid duplication. The procurement process conducted by NCC included an assessment of value for money.
3.3
Financial Implications: this service is funded by NCC from the HRA.
3.4
Resources (financial, property, technological or human): YHN commitments will become clearer as the service is developed. This will be the subject of a future board report.
3.5
Impact on services/performance: a commitment to service improvement is fundamental to NCC’s plans.
3.6
Outcomes for tenants/leaseholders: there will be an improved, wider offer to more tenants and leaseholders for engagement.
3.7
Risk (reputation, relationship): There is a reputational risk attached to the development of a new engagement model. This will be mitigated by a communication plan which deals with the reasons for changes and the opportunities for influence. High level plans for managing the transition are set out in the NCC paper. NCC intends that the transition and the communication are aligned to our own communications and engagement activity.
3.8
Environmental: None
3.9
Legal: the procurement was conducted within a legal framework.
3.10
Equality and Diversity and Community Cohesion: it is anticipated that this model of engagement will reach a more diverse group of tenants than previously.
3.11
Stakeholder Involvement/consultation: NCC has developed a consultation plan as part of this work.
4.
Conclusion and recommendations Board is recommended to receive this report for information.
5.
Implementation The specific service proposal and the terms of reference for the panel will be produced by the Fairer Housing Unit at NCC.
Page 9 of 23
Background Papers Background papers which detail the review undertaken and the documents which informed the service specification, that were shared with stakeholders are available from the Fairer Housing Unit at NCC.
Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact Sheila Breslin by telephone on 0191 278 8707 or email sheila.breslin@yhn.org.uk
7i
Page 10 of 23
Independent Tenant Voice – New Service Model Introduction 1.
Newcastle City Council and Your Homes Newcastle have had a long tradition of tenants’ involvement. However the strategic element of that model has remained virtually unchanged for ten years, whilst the operational model, responding first to the Audit Commission and then later via service improvements implemented by YHN, has changed significantly. The tenant profile in Newcastle has changed over the last ten years and expectations of service are different across the city and amongst different communities and individuals. We have an ageing demographic; a more diverse range of tenants and we are expanding our housing provision for households who have care and or/support needs. The housing sector is developing bespoke options for tenants in terms of access, service response, and cost. The local and national context is changing – we will be providing more services through digital technology and nationally the regulatory framework has changed over the last few years (and may change again as the role of the Homes and Communities Agency is reviewed).
Review of Strategic Tenant and Leaseholder Engagement 2.
At the end of 2014 NCC, under the direction of the relevant Cabinet Portfolio and Deputy Portfolio holder the Council undertook a review of the tenant and leaseholder engagement services offered by different agencies and then worked with YHN colleagues to identify duplication, gaps in service and where the different services could be aligned with the current and emerging YHN plans for tenant engagement.
3.
The Initial review comprised:
Desktop review of services and agency provision;
Consideration of how the services were commissioned, funded and monitored;
Obtaining legal and procurement advice;
4.
Questionnaire to tenants/leaseholders via Homes and People/questionnaire to Councilors; Workshops session with tenants and leaseholders; Workshop sessions with stakeholders from the third sector and YHN/Council teams who were responsible for engagement and community development.
The review identified that:
There was no consistent platform for engagement between Newcastle City Council and tenants and leaseholders at a strategic level; Social Media presented an opportunity to engage with tenants who did not want, or whose lifestyle was not suited to, historic traditional methods of engagement such as organized meetings; Engagement should be attractive to individuals as well as organised groups;
Page 11 of 23
Tenants/leaseholders wanted consistent input to big ticket issue for example responding to government policy; changes to tenancy security and tenants’ rights; rent setting.
Commissioning a New Model of Strategic Engagement 5.
During spring of 2015 a number of commissioning documents were provided to the market for comment and feedback. These documents informed several potential areas of service. The services were grouped as follows:
Tenant engagement – engaging and motivating tenants and leaseholders to become involved in the strategic processes and governance arrangements of the Councils housing management and investment functions;
Policy advice - preparing information to be used by tenants in order to inform them and increase their understanding of relevant housing issues, including technical information about regulation, finances, landlord duties and what is happening in the sector nationally and locally;
Scrutiny/challenge – a service which enables tenants to challenge, scrutinize and under service audits of their landlord function. This is an element of the regulatory framework.
6.
The way in which tenant and leaseholder engagement services are provided to social landlords, including Councils, is regulated by the Homes and Communities Agency. The regulator requires that Board member and Councillors are responsible for effective management and compliance with all regulatory requirements. It does not specify how or by whom tenant and leaseholder engagement services should be provided. The Council determined that they considered scrutiny should be provided by an agency independent of the Council and directed that this service be tendered to the market. It was agreed that the strategic engagement of tenants and leaseholders and policy support, would also be put out to the market but that the Councils Communities team would bid for the work, and that this would be communicated to all potential bidders. This second service was termed the Independent Tenant Voice. The intention was to procure a service which supported tenants and leaseholders to have direct dialogue with the Council (and other partners) on major issues of interest and concern to tenants and leaseholders.
7.
Procurement documentation was produced for both services and was put out to tender in early September, tenders returned in October and initial evaluation took place in November 2015.
8.
No compliant bids were received for the scrutiny service. We will retender this service later this year, giving an opportunity for a new Tenant and Leaseholder Panel to be involved in appointing a scrutiny advisor.
9.
Two tenders were received for the Independent Tenant Voice Service. The procurement process was subject to a call in from Overview and Scrutiny so the final outcome of the tender exercise was not known until early February. From March 2016 the service known as the Independent Tenant Voice will be provided by the Councils Communities Team for a period of four years with a potential to extend for a further year.
Page 12 of 23
7i
New Model for Engagement 10. There will be two levels of engagement going forwards – local (delivered by YHN) and a more strategic approach (commissioned by the Fairer Housing Unit) and delivered by the Communities Team. This strategic approach will sit alongside the Council and YHN’s existing governance, management and quality frameworks. YHN tenant involvement team will continue to deliver the day to day service improvement programme and other agreed areas of work as set out in the revised management agreement and yearly delivery plan. The Fairer Housing Unit, as a provider of the statutory housing function on behalf of the Council will lead the support to and development of the Tenant and Leaseholder Panel. 11. The prospective role of the Panel will be wide ranging. As a minimum it will: •
Review Council housing monitoring and performance data from NCC and YHN housing monitoring;
•
Receive formal feedback on service delivery and improvement recommendations from tenants and leaseholders through existing engagement structures;
•
Agree a programme of independent scrutiny on service delivery, have input to the appointment of a scrutiny advisor. Scrutiny will be carried out by a separate scrutiny panel which will link directly into the Tenant and Leaseholder Panel;
• Provide feedback on national regional and local housing policy which will be fed into Council and YHN decisions; inputting to wider Council debates; • Recommend and measure the effectiveness of new service delivery mechanisms for involvement (for example via social media) delivery of tenant involvement across the range of different providers. 12. The Panel will have direct dialogue with the Councils political decision makers, we are working through options with portfolio holders. We believe that either the panel or groups of tenants undertaking work on behalf of the panel could add value to the work programmes and service reviews overseen by YHN Board and committees. We would welcome views of the Board on this matter. 13. The Panels full terms of reference, membership and governance structure will be implemented within the first three months of the series. Where existing forums for engagement are operating this will be maintained in the short term but their membership role and effectiveness will be reviewed. Tenants and leaseholders will help define its role, membership and identifying training and information needs. 14. We are aware that the change from the existing arrangements which have been in place for more than ten years will require management of the transition period and a communications plan. The transitional arrangements will include:
Engaging directly with all existing resident and tenant groups within the first few weeks following the procurement exercise – this will ensure that these groups have up to date information about the process we have gone through and allow them to discuss their support needs and any concerns they may have;
Setting out our plans to both engaged groups and the wider tenant body about how they can be involved in consideration of new government proposals, new tenancy strategy, capital programed and recruitment of the tenant/Leaseholder panel and
Page 13 of 23
scrutiny panel. This will involve hearing their views about links into and dialogue with YHN Board/Committees and Councillors; 
Holding a series of tenant events (actual and virtual) to bring together views of new, engage and other tenants. This will be a series of listening events to develop a benchmark document to measure future engagement and to consider recommendations for tenant dialogue about key decisions made by YHN and the Council.
15. Following these events and feedback the Communities Team will be instructed to produce a business plan for the first two years of the service and a detailed work plan for the first year. This will then be shared with individual tenants and tenant groups.
7i
Page 14 of 23
Page 15 of 23 162
33
£13,250.00 Funded from the Participatory Budget within the HRA Investment Programme
WD009 Window Replacement
Participatory Budget No 26 Brookside Avenue Parking
HRA- David Langhorne
HRA- David Langhorne
5
Housing and Localised Services
BCE
4,600
Omfax Systems Limited
Contractor
ESPO Framework Ref P201 ESPO Framework Ref P201 (Procurement Ref P1205) 4,600
4
3
CCAS Capital
27,500
Units
CCAS Capital
2
£84,800.00 funded from HRA Capital Programme, YHN Improving Customer Service Block £25,000 additional to the base budget of £150,000 funded from the YHN Capital Programme
Cost/ Budget provision
YHN- Neil Scott
YHN- Neil Scott
1
Online repairs module and dynamic repairs call handling module
Scheme
£150,000.00 to be funded from the YHN Capital Programme for 16/17 Programme £838,784.50 additional cost to base budget of £761,215.56 funded from HRA Investment Programme, Lifecycle Block
HRA -David Langhorne
No.
Directorate/ Delegated Officer
7 January 2016 and 22 February 2016
Castle
Cross City
Cross City
Cross City
Cross City
Wards
Peters, Norman (YHN)
Johnson, Barry (YHN)
Clark, Robert (YHN)
Clark, Robert (YHN)
Gallagher, Ian (YHN)
Officer
Delegated Decisions – Schedule of non-confidential Delegated Decisions taken between
Board 15 March 2016
7ii
Page 16 of 23
St Anthonys House , Home Loss and disturbance payment
ENV0014 Diamond Row
Pooley Road Balcony Infills and Communal Works (3 no. additional bin storage areas)
Deepdale Green Windows & Doors
Demolition of former Nisa shop
RF0011 15/16 Pitched Roofing
Asbestos Sampling
HRA- David Langhorne
HRA- David Langhorne
HRA- David Langhorne
HRA- David Langhorne
HRA- David Langhorne
HRA- David Langhorne
HRA- David Langhorne
6
7
8
9
10
11
12
34
£198,114.00 funded from HRA Investment Programme, Lifecycle block
838
600
£75,000 in addition to £150,000 base on HRA Revenue code – Asbestos sampling
1
£68,343.50 to HRA Investment Programme £1,459,648.28 additional cost on base £5,990,351.72 from Lifecycle block, HRA Investment Programme
235
3
43
£258,000 Funded From HRA Revenue demolition code £1,802,000.00 from HRA Investment Programme, Environmentals and Communals block £41,656.02 additional to base budget £270,600.23 funded from HRA Investment Programme, Environmental and Communal block
SGS / MIS
John Flowers Ltd.
Owen Pugh & Co Ltd
BCE
Brims Construction Ltd
Highways and Localised Services
N/A
Cross City
Cross City
Walker
Kenton
Fenham
Walker
Walker
Lumsden, Paul (YHN)
Johnson, Barry (YHN)
Boyle, Geoff (YHN)
Johnson, Barry (YHN)
Harrison, Kevin (YHN)
Dixon, Den (YHN)
Waters, Lynn (YHN)
HRA- David Langhorne
£38,109.05 From HRA Participatory Budget within HRA Investment Programme 1
Housing and Localised Services Westgate
Harrison, Kevin (YHN)
All projects were approved as part of the Investment Delivery Programme contained within a report entitled ’30 Year HRA Financial Model and Other Financial Issues’ which was considered by the Board on 11 December 2012.
13
Prospect House Communal Garden Works
7ii
Page 17 of 23
Board 15 March 2016 Board Forward Plan 1
Board Forward Plan
1.1
This Board Forward Plan lists the reports known at the present time that will be presented at the Board meeting on 10 May 2016 (or amended date subject to confirmation): Board Reports Strategic Risk Register
Non-confidential
Financial Regulations
Non-confidential
Finance and Performance Quarterly Report (Q4)
Confidential
Treasury and Cashflow update
Confidential
Repairs and Maintenance Contract
Confidential
Byker Community Trust contract update
Confidential
Universal Credit Quarterly Update
For Information
Board Learning & Development
7iii
Could Board Members please note a finance training session will be held at 4pm by Lisa Forrest, Head of Finance. Further details will be circulated prior to the session.
Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact Jill Davison, Company Secretary by telephone on 0191 278 8624 or email jill.davison@yhn.org.uk
Page 18 of 23
Group Audit Committee 19 November 2015 (5.00 pm - 6.05 pm) Present: G Clark J Reid D Slesenger L Stephenson T Moore
Chair
IN ATTENDANCE N Scott S Breslin D Langhorne J Davison J Clifford R Burns A Baker A Lister I Pattison J Miller 1
Senior Director Director of Corporate Services and Assistant Chief Executive Director of Property Services Company Secretary Financial Controller Lead Service Quality Officer Corporate Services Finance, NCC Internal Audit Democratic Services
APOLOGIES FOR ABSENCE Apologies for absence were received from M Talbot.
2
DECLARATIONS OF INTERESTS None.
3
ACTION LIST REVIEW N Scott provided an update on the Community Care Alarm Service procurement, advising that discussions were ongoing with Jontek in relation to upgrades to the system. The current systems, were working correctly in terms of the issues that had been identified in the audit.
4
OVERVIEW OF INTERNAL AND EXTERNAL AUDIT - PRESENTATION I Pattison gave a presentation (copy of presentation material attached to Official Minutes) which provided an overview of Internal and External Audit and responded to members queries. He advised that there was an open invite to members of Group
Page 19 of 23
7iv
Audit Committee to shadow an audit, any members interested in doing so could contact him. RESOLVED – that the presentation be noted 5
TERMS OF REFERENCE, MEMBERSHIP AND MEETING DATES Submitted: Report by Company Secretary (previously circulated and copy attached to Official Minutes) J Davison introduced the report which set out details of the terms of reference, membership and meeting dates of the Group Audit Committee. She advised that Asfaleia would confirm its representative on Group Audit Committee at its first meeting. She explained that subject to the committee’s agreement it was proposed that the committee would also monitor the Group’s policies on fraud, whistleblowing and bribery, and anti-fraud arrangements. It was noted that the Chair of Group Audit Committee had been appointed for a three year period, the Group Governance Handbook would be amended to reflect this. RESOLVED-that:i. That the Group Governance Handbook be amended as follows: To include ‘To monitor the Group’s policies on fraud, whistleblowing and bribery, and anti-fraud arrangements’ Section 7.2 to reflect that the Chair was appointed for a 3 year period. ii. The committee review these responsibilities annually. iii. The membership for 2016 be noted.
6
YHN GROUP AUDIT WORK PLAN 2016-17 Submitted: Work Plan 2016-17 (previously circulated and copy attached to Official Minutes) RESOLVED – that the Work Plan be noted.
7
APPOINTMENT OF VICE CHAIR Members felt it would be better to wait and appoint a Vice Chair once the full membership of the Committee was in place i.e. when the Asfaleia member had been appointed. RESOLVED – that the appointment of Vice Chair be deferred to the next meeting.
8
STRATEGIC RISK REGISTER 2015-16 - QUARTER TWO UPDATE Submitted: Report by Head of Business Strategy (previously circulated and copy attached to Official Minutes)
Page 20 of 23
R Burns introduced the report which provided the quarter two update on the Strategic Risk Register 2015-6. The following issues/queries/comments were raised during debate: It was noted that whilst the position in relation to Supporting People funding would not be finalised until the budget discussions were completed in March 2016, positive discussions were taking place with the Council, with a view to mitigating the impact of funding reductions and trying to secure funding. A member had queried where the risks relating to the Housing and Planning Bill would be reflected in the Strategic Risk Register. S Breslin commented that the Bill would have significant implications for social housing, however, the detail had not yet been published, so there was a lack of clarity at this stage regarding the implications. She advised that the majority of the pressures that arose would fall on the Housing Revenue Account. Officers indicated that the next Strategic Risk Register that would include a risk relating to the impact of welfare reform. It was agreed that in future, in order to provide context, the Strategic Risk Register should reflect some of the risks relating to the HRA. It was noted that the 1% decrease in rents would be based on a reference rent as at July 2015. The loss in income from the rent decrease had been calculated at £40m over the next five years. It was noted that agreement had been reached with NCC for a 5% reduction in the management fee each year, over the next three years. Details were not yet available about the levy that was to be introduced for tenants earning more than £30k, but it was anticipated that its introduction would create a huge administrative burden for YHN. In response to a member’s query in relation to SR2.3 N Scott indicated that whilst the target of 3% growth in CCAS Telecare customers had not been on track in quarter two, he was comfortable with the broader risk remaining green, indicating that this performance was slightly better than quarter one performance. He advised that there had been a higher than anticipated turnover of customers with a higher number of terminations than expected. RESOLVED – that: i. ii.
9
The quarterly update on risk improvement actions be noted. The approach to revising the Strategic Risk Register, detailed in section three of the report and the inclusion of some detail of the risks relating to the HRA, to provide context, be agreed.
INTERNAL AUDIT PROGRESS UPDATE Submitted: Report by Head of Internal Audit (previously circulated and copy attached to Official Minutes) I Pattison introduced the report which provided details of internal audit activity undertaken since August 2015. He referred to the current status of the plan and the impact of disaggregation. The following issues/queries/comments were raised during debate: Page 21 of 23
7iv
It was noted that the Investment Delivery audit had been deferred. Currently there were uncertainties, as the finances had not yet been agreed and the capital programme would be changing and it was felt that it would be more appropriate to undertake the audit under normal circumstances. I Pattison advised that if an audit was deferred, there was a reserve list of audits, from which an audit could be brought forward. Following discussion on whether any disciplinary cases related to controls not being used and the fact that it would be prudent to look at processes to ensure that YHN was ensuring that it was doing all that it could to minimise risk, officers undertook to give thought to how best to present to committee information on frauds and disciplinary cases which related to controls not being used, with a view to a report being submitted to the next meeting. It was agreed that in the interim information be circulated to members in advance of the next meeting on the potential tenancy fraud cases referred to in the report. In response to a member’s query, it was pointed out that the increase in the reporting of tenancy fraud may be due to some extent to an increase in awareness in relation to this type of fraud resulting from the introduction of new legislation 18 months earlier which made it an offence to sublet and also tenancy fraud training undertaken by YHN staff. In response to a member’s query in relation to the YHN Cash Handling (Advice and Support/ Young People’s Service) I Pattison advised that this related to the nature of the controls in place for petty cash, there were no indications of fraud having taken place.
RESOLVED- that:i. Progress against the Internal Audit plan and performance indicators be noted. ii. Progress on the implementation of audit recommendations be noted. iii. The updates on ongoing fraud investigations be noted. iv. Internal Audit look at what from the reserve list of audits could take the place of the deferred Investment Delivery audit. v. Information be circulated to members in advance of the next meeting on the potential fraud cases referred to in the report. vi. A report be submitted to the next meeting with information on frauds and also disciplinary cases which related to controls not being used. 10
MINUTES OF THE AUDIT COMMITTEE HELD ON 20 AUGUST 2015 The minutes of the final meeting of the Audit Committee held on 20 August 2015 were noted.
11
DATE AND TIME OF NEXT MEETING The next meeting would be held on Thursday 18 February 2015 5pm – 7pm.
12
EXCLUSION OF PRESS AND PUBLIC
Page 22 of 23
RESOLVED – that the press and public be excluded during consideration of the confidential minutes of the Audit Committee held on 20 August 2015 because of a likely disclosure of confidential information. 13
CONFIDENTIAL MINUTES OF AUDIT COMMITTEE HELD ON 20 AUGUST 2015 The confidential minutes of the final meeting of the Audit Committee held on 20 August were noted.
7iv Page 23 of 23