YHN Limited Tuesday 1 November 2016 at 5.00 pm YHN House, Benton Park Road, Newcastle upon Tyne NE7 7LX Contact Officer:
– Tel: (0191) 2788624 Email: jill.davison@yhn.org.uk
AGENDA Page No Introduction items 1.
Reminder to switch off mobile phones
2.
Apologies for Absence
3.
Declarations of Interests
4.
Chairs Items
Items for approval 5.
Minutes of the previous meeting held on 11 October 2016
1-4
Items for discussion and decision 6.
Audit Committee Annual Report
5 - 26
7.
Finance and Performance Quarter 2
27 - 68
8.
YHN Business Plan and Budget process
69 - 72
9.
NCC 2017-18 Budget
73 - 78
10.
Items for Information (a)
Safeguarding Report
79 - 86
(b)
Delegated Decisions
87 - 88
(c)
Board Forward Plan
89 - 90
Your Homes Newcastle Limited. Registered in England and Wales Registration Number 5076256 Registered Office: Newcastle Civic Centre, Barras Bridge, Newcastle upon Tyne NE1 8PR. A company controlled by Newcastle City Council
To exclude the press and public during discussion of agenda items 11 - 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of what is considered confidential are contained within Section 16 of the Company's Standing Orders Protect - not for publication Items for approval 11.
Confidential minutes of the previous meeting held on 11 October 2016
91 - 92
12.
Customer Access and Digital by Choice
93 - 100
13.
Date and Time of Next Meeting 7 December 2016 5pm YHN House
2
Board 11 October 2016 (5.00pm to 5.55pm) Present: O Grant (Chair), P Dibbs, L Doherty, P Dutton, V Dunn (until 5.20) A Mirza, T Moore, J Reid, P Scope, E Snaith, M Talbot. In attendance: J Davison
Group Governance Manager & Company Secretary
T Drury
Managing Director
D Langhorne
Director of Property Services
L Forrest
Head of Finance (until 5.20)
C McMullen
Newcastle City Council (until 5.55)
495
WELCOME The Chair welcomed everyone to the meeting, and asked for the agreement to change the agenda order, and move the Chairs items to later in the meeting.
496
APOLOGIES Apologies were received from J Streather, J McCarty, D Huddart, D Slesenger, M Page, L Stephenson, J Purvis.
497
DECLARATIONS OF INTERESTS No declarations
498
MINUTES 2 AUGUST 2016 Agreed as a true record
499
ANNUAL ACCOUNTS AND FINANCIAL STATEMENTS L Forrest presented the report which set out the YHN Group accounts. These had been given a clean audit by our external auditors EY and the YHN Group Audit Committee had scrutinised and were recommending to Board for approval the accounts and financial statements, letter of representation and going concern. Key issues which were highlighted to the Board were; - FRS102 – this resulted in recognition of vehicle lease assets and liabilities on the balance sheet. - Tax – only a potential net liability of £2,000 - Palatine issues – provision has been made in the accounts and ongoing work is being overseen by the Abri Board and Group Audit Committee. - Pension – the clarification of the pension liability support from NCC has resulted in restatement of the accounts, last years reserves reduced to -£17m and this year to -£9.7m. This also has an impact on in year surpluses by -£2.3m in 15/16 and -£1.6m in 14/15.
Going concern – despite the negative reserves YHN will be able to meet its liabilities as they fall due, Group Audit Committee have scrutinised the detailed evidence in order to recommend to the Board. The report included for transparency a reconciliation to the draft outturn which was reported to Board in May 2016. The key difference being the pension deficit. -
Questions/comments A Board member commented that they were concerned with the preparation of tenders and whether we would be ruled out due to negative liabilities. L Forrest confirmed that additional information was prepared to be submitted with tenders to explain the company position. A Board member questioned their role in the group accounts and enquired whether the Audit Committee received the accounts of all the companies. L Forrest responded that the Group Audit Committee did scrutinise all company accounts and that the Board were now receiving quarterly financial performance quarterly which was prepared on a group basis. The Chair noted that the consultants completing the governance review had highlighted a raft of issues around the role and responsibilities of the Board in relation to subsidiary companies and it will therefore be part of the recommendations to look at improving this oversight. The Chair noted the consultants were due to present to the Board at this meeting but the draft report was only received on Friday and there are some revisions to be made. The Chair of Abri Trading Limited requested to see the letter of support from NCC at the next Abri Board to ensure the relevant assurances were made. RESOLVED that the board approved;
500
•
The Directors Report and Strategic Report;
•
The Financial Statements and notes to the Statements;
•
The Letter of Representation;
•
The Going Concern Letter
•
That the Directors’ Report, Strategic Report and Financial Statements, Letter of Representation and Going Concern Letter are duly signed by the Chair and Company Secretary;
CHAIRS ITEMS The Chair updated the Board on the recent interviews for the two new Director posts within YHN. The competition was very strong and it was a difficult decision but confirmed the posts have been offered to two external candidates who are both delighted and have accepted the positions. Matthew Foreman has been offered the Customer Services Director position. Matthew currently works for County Durham Housing Group (CDHG) and is heading up their transformation project. He previously worked for North Star Housing as Director of Housing and prior to that he was Head of Housing at North Tyneside Council where he was responsible for the whole range of housing Services. He has previous experience at working for the other 2
ALMOs in the region. Jon Ritchie has been offered the Finance and Commercial Director position. Jon currently works for ENGIE (the outsourced contract for North Tyneside Council). Prior to that he was Corporate Finance Manager at North Tyneside Council. He also has previous experience at working for Deloitte and PwC. It is likely both will have to work 3 months’ notice and therefore won’t be able to join us until the new year. They couldn’t join us tonight due to prior commitments, but will attend the Board in November. A Mirza, who was involved in the interviews commented on the professional approach to the selection process and noted thanks to Tina Drury. Colleagues have attended two events since the last Board. Jill Davison along with Doreen Huddart and Tony Moore attended the National Federation of ALMOs Board members event which was interestingly centred around Governance and a recent survey of all 37 ALMOs, so this gives us great insight into the changing world of ALMOs especially as we hear from our own review tonight. Tony Moore gave an update on his thoughts from the day, noting that only 13 ALMOs were represented on the day, and it would have been interesting hearing from more tenant board members. Jill Davison noted the highlights were hearing from the other ALMOs and what they are doing in practice like the structure of the Barnet Group and how they are doing more than just housing, as well as the tenant involvement at Derby Homes and Brent Housing. Doreen Huddart noted that she was impressed with the diversification of ALMOs and how they were doing more in the community like street cleaning and estate management and actively tendering for other contracts. Tina Drury and David Langhorne attended the National Federation of Housing conference in Birmingham, where we also had a stand for NFS to promote the furniture service. Tina Drury summarised the highlights from key speakers such as David Ord and Gavin Barwell MP. There were also interesting panel discussions with representatives from BT and Google about new technology. NFS had some really positive feedback and generated some new business leads. A Board member also wished to thank Paul Lumsden, Health and Safety manager for organising the attendance at Health and Safety training called Director in the Dock, which took participants through a trial regarding H&S negligence. 501
MATTERS ARISING FROM THE MINUTES David Langhorne gave a verbal update on the Investment programme which was presented at the August Board. A two pronged approach was approved by Board and David Langhorne confirmed to the Board that the first part of the programme had been approved by the NCC Cabinet. The investment team continue to work closely with NCC whilst the implications of the Housing and Planning Act are considered and Board will receive a future report on the Capital Programme and the 2nd tranche of investment allocation.
502
ITEMS FOR INFORMATION RESOLVED that the following information be received for information;
DELEGATED DECISIONS
A Board member raised a query around the energy efficiency work completed in the programme and whether ERDF funding had been considered. Other local authorities had been able to utilise this in relation to carbon reduction. David Langhorne responded that some of the schemes completed wouldn’t have been eligible but that a joint approach with NCC would be considered and thoughts reported back to the Board. A Board member questioned the apparent large overspend on some of the projects. David Langhorne responded that the terminology of overspend was perhaps incorrect and the increased spending was due to increased specifications or additional works being required rather than cost control issues. The Chair noted that more specific descriptions should appear in the reports. A Board member questioned the level of officer delegated decision. David Langhorne confirmed that these projects were part of the Capital investment programme of the HRA of which Board agreed and NCC Cabinet approved the high level envelopes. The spend was then delegated to Tina Drury in turn delegated to David Langhorne, all delegated decisions were also signed off by Tony Kirkham at NCC as owner of the HRA.
BOARD FORWARD PLAN
The chair commented that due to the award ceremony of the Freedom of the City she was being awarded being scheduled for the 13 December, there was a timing issue with the Board meeting. Options were discussed and Jill Davison to canvas all Board members on whether a change of date or change of time was the preferred option. 503
COMMITTEE MINUTES – Group Audit Committee 19 May
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.
……………………………………….. Mrs O Grant Chairman 1 November 2016
Board 1 November 2016 Group Audit Committee Annual report Report by Chair of Group Audit Committee
For Discussion 1.
Background information
1.1
This report provides a summary of the work of Group Audit Committee between November 2015 and August 2016. Section two of the paper outlines the regular items presented to Group Audit Committee during the year and summarises the decisions of the Committee. The most significant decisions taken by the Committee relating to the Group are set out in section three. Separate reports have been provided to the Boards of Abri Trading and Asfaleia Ltd.
1.2
The purpose of the Group Audit Committee is to make sure that the Group’s internal control systems and risk management systems are effective and meet regulatory requirements. The Committee’s role is to ensure that there are proper systems and allocations of responsibilities for the following areas of activity: •
Internal audit;
•
External audit;
•
Internal control system;
•
Risk Management systems;
1.3
The remit of the Committee is set out in the Group Governance handbook approved by Board in June 2014.
1.4
The independent Chair of the Committee is George Clark and Gordon Burns is the vice chair and the representative for Asfaleia Ltd. The remaining positions on the Committee are made up of members of YHN’s Board with one of these members also representing Abri Trading. The Head of Business Strategy is the Committee’s lead officer.
1.5
The Committee meets on a quarterly basis. Members of the Committee take an active part in meetings, providing constructive challenge to the officers that attend. The average level of attendance at the meetings over the course of the year has been 74%.
2
Work plan summary
2.1
This section of the report outlines the items of business considered by the Committee. We have provided Board with background information that explains the items of business discussed and decisions which affect the whole group.
2.2
2015-16 Internal Audit plan- quarterly progress update reports This is provided every quarter by the Head of Internal Audit. Each report covers: o Progress against the annual audit plan of the Group’s services and areas of activity; o Information about the implementation of Internal Audit Recommendations for each service, including an analysis and details about recommendations not yet implemented; and o Information about performance indicators set for Internal Audit, and performance against these indicators. Attached as appendix one is the outcome of the audits completed last year.
2.3
Approval of the 2016-17 Internal Audit Plan In May 2016 the Committee received a consultation paper from the Head of Internal Audit. The paper gave members an overview of the process for compiling the Internal Audit Plan 2016-17 and provided an early opportunity for members to feed into this process. In August 2016 the Committee approved, the Annual Audit Plan for 2016-17 and an indicative programme of audits planned for 2018-19. A copy of the plan for 2016-17 is included as appendix two.
2.4
2015-16 Strategic Risk Register quarterly updates Following the creation of the YHN Group, officers presented a proposal to create a Group Strategic Risk Register. It was revised to reflect the new group structure and exposure to risk following disaggregation. It also reflects that YHN is no longer responsible for managing the Housing Revenue Account (HRA). This new environment means that there is increased importance on the income from YHN’s traded services; and increased importance on delivering our services within a fixed management fee. Officers carried out consultation with the YHN Group, Asfaleia Board and Abri Trading Board to identify the key risks, controls and improvement actions that affected services overseen by the YHN Group. These risks were combined and lead to the creation of the Group Strategic Risk Register. YHN Board approved the new Strategic Risk Register in May 2016. At each Committee meeting officers present an update on the improvement actions outlined in the Strategic Risk Register. Where appropriate we ask officers to raise any issue of concern with the relevant subsidiary. The Group’s Strategic Risk Register is appendix three.
2.5
2015-16 Year End External Audit plan Group Audit Committee agreed to the scope for the external audit of the Group’s finances carried out by EY. The key areas of audit emphasis were: o NCC housing services review and disaggregation; o Impact on HRA and new management agreement; o Restructuring and redundancies; o Financial reporting, group consolidation and FRS 102 implementation; o Agreement of key account balances and transactions; o Abri Trading Ltd: o Recoverability of third party debtors; o Pension accounting; and o Financing.
2.6
Annual Report, Financial Statements 2015-16 and Audit Report In August 2016, Committee received the Annual Report and Financial Statements from YHN officers and the external auditor’s report from EY. The report included results and reports in line with YHN’s new company structure. The covering report included information about: o Stages in the accounts approval process; o Issues that the Committee needed to be aware of, including legal requirements; o Significant changes from previous statements; and o The Audit Results Report The issues of the pension fund deficit appearing on YHN’s balance sheet and the banking concerns with Palatine were unresolved when Committee considered the financial statements. Therefore Committee agreed to defer to the Chair and Vice Chair the approval of the financial statements for recommendation to YHN Board. This meeting took place on 26 September 2016 and the accounts were approved by YHN Board on 11 October.
2.7
Internal Audit Annual Report and Opinion of the Head of Internal Audit This report feeds into the annual assurance statement (see section 2.8) and is a requirement placed on the internal audit service by the Public Sector Internal Audit Standards. The report covered: o A summary of all audit work for 2015-16, providing an overall assessment for each service or area of activity audited during the year; o A comparison of audit work with the audit plan, and a summary of the performance of Internal Audit; o A review of the effectiveness of Internal Audit including an assessment against the Public Sector Internal Audit Standard; and o CIPFA benchmarking information. The Committee agreed to the recommendations for this paper which outlined there were no issues which required raising in the annual assurance
statement and overall internal audit can provide substantial assurance that YHN’s current controls and processes are working effectively. 2.8
Annual Assurance Statement and Report The Annual Assurance Statement for YHN for 2015-16 was presented to the May meeting. A covering report explained that the statement provides assurance to both the YHN Board and NCC that we have robust systems of internal control and effective governance arrangements. The report identified that the statement covers: o The effectiveness of systems of internal control; and o Any significant governance/control issues. The report explained that there were no areas of weakness in terms of systems in place, and that no significant control issues had been identified from the work of Internal Audit during 2015-16. The Annual Assurance Statement was agreed by the Committee.
2.9
Housing Fraud and Employee Disciplinary cases In November the Committee requested information on the cases of tenancy fraud investigated, YHN’s tenancy fraud policy and information on employee disciplinary cases. The Committee was concerned that there was an increase in these two areas of work and wanted reassurance that YHN’s policies and procedures were being appropriately applied. This information was provided to committee in February 2016 briefing note and outlined the following: •
Number of tenancy fraud cases investigated and the outcome of these investigations.
•
A breakdown of disciplinary cases by service and demographic information for the staff involved. It also provided a table of specific cases, area of the organisation the employee works in, the level of sanction given, and information regarding the breach of YHN policy.
The Committee were satisfied with the information it received. 2.10
Gifts and hospitality register The Chair of the Group Audit Committee conducts the annual review of the gifts and hospitality register. This is also linked to a review of YHN spend to see if there is any link between the hospitality offered to the value of business awarded to companies. There were no major issues arising out of this year’s review.
3.
Significant decisions taken by Group Audit Committee
3.1
Annual Report, Financial Statements 2015-16 and Audit Report Pension Fund Deficit During the presentation of the external audit findings and annual report Group Audit Committee raised concerns about the ability to trade following the inclusion of the pension deficit on the YHN balance sheet. The Committee received some reassurance from knowing that the Abri Trading Ltd accounts will not directly show the pension liability.
In previous years YHN understood that Newcastle City Council (NCC) would assume any current or future funding surpluses or deficits and accordingly, whilst disclosure of the pension scheme deficit was made in the YHN accounts, the scheme deficit was restricted to nil and the pension cost recorded in the income statement based on contributions payable. Group Audit Committee reviewed this situation before recommending the accounts to Board. There is no option, given the new Newcastle City Council (NCC) letter of support, other than to reflect the pension liability in YHN’s accounts. Committee considered the appropriateness of the going concern and reviewed detailed information including forecast cash flows, the letter of support and the management agreement with NCC and concluded that the group (including Abri Trading Ltd) could meet its liabilities over the next 12 months. Palatine bank We raised with Abri Trading Ltd Board members the issues identified in Palatine accounting. Group Audit Committee will monitor the ongoing investigation to ensure appropriate controls are in place for the future. Group Audit Committee have already sought early assurances around the actions being undertaken to ensure these errors do not happen again. These actions include: • •
• •
3.2
Temporary staff brought in to complete reconciliation work and improve the debtor realisation; The financial system has been upgraded to a new version that allows for easier interrogation of figures and better transparency to spot errors; The members of staff who carried out this function are no longer responsible for it; and Senior members of the finance team are now actively monitoring the control checks.
2016-17 Strategic Risk Register The issues outlined in section 3.1 were raised with Committee in August and were added to the Strategic Risk Register as emerging issues. The changes have been reflected in the Group Strategic Risk Register and the Abri Trading entity register. There are two new improvement actions which are: Risk: GR1- Income does not meet expectations and plans New improvement actions: GR1.14 As a priority, complete the re-matching of invoices and cash receipts for historic Palatine financial transactions. This is a major piece of work which is taking considerable time and effort. GR 1.15 Once GR 1.14 is complete, tighten current processes for invoicing at Palatine
during 2016-17 GR 2- Group costs fail to meet requirements and expectations New improvement actions: GR 2.10 During quarter two begin work to identify additional savings to make during 2016-17 Officers will report progress against the additional improvement actions at the next Group Audit Committee meeting in November 2016. 3.3
The Committee received updates at each meeting on the progress for the reprocurement of the IT system used by Ostara. This followed an outstanding action from the internal audit reports. At the August meeting the Committee requested officers have further discussions with the Asfaleia Board during the procurement process to ensure that the new system will meet the organisations requirements.
4.
Recommendations
4.1
Board is recommended to: •
Note and comment on the work of Group Audit Committee over the period covered by this report.
•
Discuss any issues that it feels Group Audit Committee need to be aware of.
Background Papers Group Audit Committee papers November 2015 to August 2016 Group Audit Committee terms of reference Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, please contact Louise Horsefield by telephone on 0191 278 8720 or email louise.horsefield@yhn.org.uk
Appendix one- 2015-16 Internal Audits reported to Group Audit Committee November 2015 Assignment Safeguarding and Domestic Violence – Follow Up Cash Handling (Advice and Support / Young Peoples Services YHN Fraud Training – see Note 1
Assessment All recommendations fully implemented.
Company
Moderate Assurance
YHN / Asfaleia
N/A – consultancy.
YHN
YHN / Asfaleia
February 2016 Assignment IT disaster recovery
Assessment Moderate Assurance
Company YHN
Health and Safety – Asbestos containing materials
Substantial Assurance
YHN
Assessment Fully implemented Moderate Assurance Full Assurance
Company YHN/Asfaleia YHN YHN
Substantial Assurance Substantial Assurance Substantial Assurance
YHN All YHN
Fully implemented
All
May 2016 Assignment Cash Handling – follow up Garden Care Housing Rent – implementation of universal credit Complaints Financial Model Key performance indicators Potential Risk indicators – follow up August 2016 Assignment Voids Management – Sheltered and Specialist Housing Community Care Alarm Service ICT Audits Financial Systems Testing
Assessment
Company
Moderate Assurance
YHN
Moderate Assurance Note 1 Note 2
YHN / Asfaleia All All
Note 1 There were 3 IT audits completed where testing reviewed arrangements operating for the YHN Group. These were as follows: Disaster Recovery - Moderate Assurance – reported to March 2016 Committee. Access Controls - Limited Assurance Web Application Security - Moderate Assurance Note 2 This covers an extension of planned key financial systems audit work scheduled for the Council to also cover YHN Group arrangements. This included the following systems: Payroll – Substantial Assurance – no specific issues relating to YHN. Financial Accounting (bank reconciliation / VAT) – Moderate assurance – no specific issues relating to YHN Group. Debtors – in draft but no specific issues relating to YHN Group. Creditors – in draft but no specific issues relating to YHN Group.
Appendix two - 2016/17 Internal Audit Annual Plan
Audit title
Cashflow
Right to Buy
Housing Rents
Planned audit coverage
Review adequacy and effectiveness of arrangements in place for: • Collection of income from third parties (including invoicing and payment of the management fee for Leazes Homes). • Cashflow and treasury management. • Bank reconciliation. • VAT returns. Review the adequacy and effectiveness of arrangements in place for assessing, approving and managing Right to Buy applications. Review and assess the adequecy to detect and prevent fraudlent applicatons Review the adequacy and effectiveness of arrangements for maintaining complete, accurate and up to date information for rent accounts (inc service charges) and escalating outstanding arrears. This will cover the following: • Creation of new tenancies, amendments to existing tenancies and ending tenancies and ensuring rent and service charges are correctly applied. • Escalation of accounts in arrears. • System access to create and amend accounts. • Efficiency of processes.
Priority
Medium
High
High
No of days
15
10
15
Timescale Report to for Audit Cttee completion
Source / Driver
• Financial risk July / November • Business cirtical August 2016 2016 system
August / September 2016
September / October 2016
• Fraud risk November • Audit of RTB is a 2016 KPI for 16/17
• Fraud risk • Reputational risk November • Key element of 2016 management agreement
Risk Register reference GR1 - Group income does not meet expectations and plans GR2 - Group costs fail to meet requirements and expectations GR4 Substantial damage to YHN Group’s reputation GR1 - Group income does not meet expectations and plans GR4 Substantial damage to YHN Group’s reputation
Appendix two - 2016/17 Internal Audit Annual Plan
Delegated Decisions
Review the adequacy and effectiveness of the delegated decision process and quality of information supporting decisions made.
Digital Services
Review the adequacy and effectiveness of project management and service delivery implementation relating to online services.
Health and Safety - Fire Safety
Review the adequacy and effectiveness of arrangements in place to ensure that YHN comply with regulatory reform order which sets out obligations to fire safety.
10
August / September 2016
Medium
10
January / February 2017
Medium
10
June / July 2016
Medium
GR6 Ineffective governance of • New process for YHN Group 16/17 November • NCC priority during GR4 2016 Substantial damage to consultation YHN Group’s reputation GR5 Significant disruption to service • Management provision May 2017 request affecting YHN, Abri Trading Ltd or Asfaleia Ltd GR3 - Failure to comply with statutory Health and • Management Safety (H&S) request (staff November changes in this area) regulations 2016 • Reputational risk
GR4 Substantial damage to YHN Group’s reputation
Appendix two - 2016/17 Internal Audit Annual Plan
Review the adequacy and effectiveness of arrangements for completion of non-standard void works (predominantly capital voids) including the approach, expenditure, timescales, overall technical process and Non standard interface between Housing Options and Property Maintenance. void works
Medium
15
November / December 2016
Additionally, assess the feasibility of only completing extensive void works by exception, aiming to complete works post occupancy to reduce overall rent loss and provide tenant choice of fixtures and fittings.
Repairs and Maintenance contract
Review the adequacy and effectiveness of arrangements for managing responsive repairs and ensuring repairs are completed promptly and to standard.
Medium
15
June / July 2016
TBC February 2017
• Committee / management request • Void turnaround and rent loss are key risk areas. • Top 20 target
• Significant November expenditure. 2016 • Reputational risk. • Top 20 target
GR1 - Group income does not meet expectations and plans
GR2 - Group costs fail to meet requirements and expectations GR4 Substantial damage to YHN Group’s reputation
Appendix two - 2016/17 Internal Audit Annual Plan
Newcastle Furniture Service
Review adequacy and effectiveness of: • Stock records and valuation (including segregation between HRA / Abri trading stock) • Workforce scheduling. • Managing furniture packages held by customers, i.e. new packs, changes to existing packs and terminations (HRA and external customers). • Collection of income (HRA and external customers). • Customer satisfaction.
Review the adequacy and effectiveness of governance arrangements for the oversight of the HRA Capital Programme. To include: • Consistent application of the process for Assets and agreeing the programme Regeneration • Links to net present value and financial assessments. • Assess effectiveness of collaborative planning and reporting of schemes when in progress. Specific areas to be discussed and agreed with Voids management to reflect operating environment Management - at that time. Anticipated this will pick up on non R&M outcomes of voids Time Limited Committee (TLC) report to Board in June 2016.
Medium
Medium
Medium
15
15
12
February / March 2017
October / November 2016
January / February 2017
• Financial risk TBC - May • Reputational risk 2017 • Strategic target
GR1 - Group income does not meet expectations and plans GR2 - Group costs fail to meet requirements and expectations GR4 Substantial damage to YHN Group’s reputation
• Financial risk • Reputational risk
GR1 - Group income does not meet expectations and plans GR4 Substantial damage to YHN Group’s reputation
• Committee / management request TBC - May • Void turnaround 2017 and rent loss are key risk areas. • Strategic target
GR4 Substantial damage to YHN Group’s reputation
TBC February 2017
Appendix two - 2016/17 Internal Audit Annual Plan
Review the operation of the Enquiry Centre and planned and responsive teams to ensure all Concierge and revised procedures are fully embedded, Security workforce scheduling is operating effectively Services and performance management has been fully developed.
Performance reporting
Audit to provide assurance that values reported against performance targets (to YHN Board or NCC Cabinet) are accurate and processes for validation of figures is robust.
Medium
Low
15
7
November / December 2016
TBC February 2017
• Previous audit outcome • New arrangements to test fully • Reputational risk
TBC - May • Reputational risk 2017 • Strategic target
GR4 Substantial damage to YHN Group’s reputation GR6 Ineffective governance of YHN Group
• Financial risk March / April TBC - May • Reputational risk 2017 2017 • Efficiency
GR4 Substantial damage to YHN Group’s reputation GR5 Significant disruption to service provision affecting YHN, Abri Trading Ltd or Asfaleia Ltd
January / February 2017
Sample testing of YHN transactions whilst undertaking NCC key financial systems reviews.
Finance / IT
Sample testing of YHN arrangements / systems whilst undertaking NCC IT audits. 2016/17 paln includes: • Patch Management • Cyber Security • SQL (Structured Query Language) Databases
Medium
3
n/a
8
• Business Systems Applications • Data Centre Review (Advice and Support) Audit Committee / SLA Total
This includes audit planning, servicing audit committee, recommendations follow up, SLA meetings etc
175
GR4 Substantial damage to YHN Group’s reputation
n/a
n/a
n/a
n/a
Appendix three- 2016-17 YHN Strategic Risk Register update Risk No GR1
Risk description and date raised
Risk Owner
Risk Type
Group income does not meet expectations and plans
Managing Director
Financial
How well do we manage this? Partially effective
Current controls Management agreement and fee principles between: YHN and NCC and YHN and Leazes Homes
Cause Management Fee from NCC is reduced further than expected Unexpected reduction in the Management Fee paid to YHN from Leazes Homes
Monthly financial and non- financial performance reported to YHN management team Performance information reported to YHN Board, NCC, Leazes Homes, Abri Trading Ltd and Asfaleia Ltd
Loss of external traded contracts YHN Business Strategy 2016-2020 Housing and Planning Bill (or other Government legislation) places additional pressure on HRA that affects YHN management fee Numbers of telecare customers reduce significantly Little or no promotion of the telecare service by social care Amount of Housing Benefit received for tenancies after April 2016 capped at Local Housing Allowance levels NCC decide that performance of the pension fund will now be shown in YHN accounts Flaw in Abri Trading (Palatine) system that deals with cash receipts
YHN Delivery Plan 2016-17 Contingent reserves held – (with a minimum of £2.6m) Financial stress testing of YHN Group
Likelihood score Impact score 3 3
Risk score 9
Consequence Inadequate time to adapt to the reduced income Major changes to service delivery required Damage to reputation Greater efficiency savings required than planned for Fixed costs related to telecare service cannot be recovered Unable to provide telecare service at competitive price Abri Trading unable to pass gift aid to Asfaleia Reduction in furniture service and/or Palatine Loss of customers to other providers Abri Trading unable to win tenders for new business Increase in bad debt provision for Abri Trading
Date raised: November 2015
GR2
Group costs fail to meet requirements and expectations Cause Failure to deliver cost savings planned for in YHN Group Budget Expectations of clients (NCC and Leazes Homes) to deliver the same or increased services within a reducing management fee Change in demand of customers following reduction of services provided by NCC or other charities Increase in running costs, inflation and overheads Changes in political or external environment affecting both businesses and customers Additional cost pressure from FRS102 not factored into current plans to manage the reduction in Management Fee from NCC Consequence Additional revenue spending required to meet contractual obligations Damage to reputation Damage to relationships with partners and contractors Inability to plan for changes required in service delivery Reduction in support to customers Abri Trading Ltd unable to pass gift aid to Asfaleia Ltd Significant loss of contracts Significant loss of customers Unable to match level of reserves without additional cost savings Date raised: November 2015
Managing Director
Financial Reputation
Partially effective
Management agreement and fee between: YHN and NCC and YHN and Leazes Homes Management fee agreement in principle of no further decrease during 2016-2020 Sub-contract fee between YHN and Asfaleia Ltd Service agreement with Abri Trading Ltd and Asfaleia Ltd YHN Business Strategy 2016-2020 YHN Delivery plan 2016-17 Business and financial planning for impact of 15% reduction in budgets Performance information reported to YHN Board, NCC, Leazes, Abri Trading Ltd and Asfaleia Ltd Contingent reserves held – (with a minimum of £2.6m) YHN Service Improvement Programme 2016-17 Financial stress testing of YHN Group
3
3
9
GR3
Failure to comply with statutory Health and Safety (H&S) regulations Cause Inadequate H&S training Staff negligence Risk assessment and policies and procedures not followed correctly Consequence Fines for corporate manslaughter
Director of Property Services
Legal compliance
Partially effective
Health and safety policy Mandatory health and safety staff training
People Insurance policies (public liability, director’s and employee liability Additional health and Safety training for staff (as required) Health and safety training to board members including corporate manslaughter Health and safety six monthly updates to board
Fines for breach of H&S legislation Staff deaths / injuries Customer deaths / injuries
Potential Risk Indicators (PRI) system for staff / contractor safety Contractor Management Policy
Court cases Legal costs
Comply with construction design and management (CDM) regulations 2015
HSE improvement and prohibition notices served Loss of reputation
British Standards Institute (BSI) OHSAS (occupational health and safety management system)
Date raised: November 2015 Finance and procurement processes Gas servicing programme
2
3
6
GR4
Substantial damage to YHN Group’s reputation Cause Loss of confidence in senior management Failure to comply with regulatory requirements - such as Her Majesty’s Revenue and Customs, Charities Commission, Homes and Community Agency (for services provided to Leazes Homes) Failure to comply with legislation and policies and procedures (equality and diversity, safeguarding) Unsuccessful transfer of services provided by YHN to Byker Community Trust (BCT) Fraud / malpractice
Managing Director
People
Partially effective
External audit of accounts Health and safety training to Board Members including corporate manslaughter Internal Audit Service Level Agreement Group Audit Committee Fraud Prevention Policy Information Governance Policy Service Level Agreement in place for out of hours communications between YHN and NCC HR employee policies and procedures and code of conduct
Corporate manslaughter
Mandatory safeguarding training for staff
Negative media coverage
YHN Safeguarding and Domestic Abuse Forum
Change of focus of Palatine from sustainable supported employer to pure profit making division of the business, including
Reduction in support offered to Palatine supported workforce Reduction in number of work choice placements offered by Palatine Consequence Law / court proceedings Fines for corporate manslaughter High staff turnover
Project group established to ensure compliance with Financial Conduct Authority regulations
2
3
6
Targets not being met Customers and staff lose confidence in services / business Loss of contracts Loss of supported business status Loss of supported business funding Work choice employees not supported into alternative employment Date raised November 2015 GR5
Significant disruption to service Managing provision affecting YHN, Abri Trading Ltd Director or Asfaleia Ltd Cause Unable to access core IT systems
Resources
Partially effective
Business Continuity Policy and plans Annual business continuity impact assessments Business continuity training to relevant staff and service areas available
Damage to premises YHN Group Emergency plan Staff industrial action / illness NCC major incident plan Fire/explosion Suppliers unable to meet contractual obligations Consequence Loss of service Loss of life Loss of contracts Customers do not receive goods or services on time Damage to reputation Date raised: November 2015
Out of hours arrangements for all critical systems through NCC ICT Services
3
2
6
GR6
Ineffective governance of YHN Group Cause
Managing Director
Governance
Partially effective
Increased resource in YHN governance team
2
2
4
3
3
9
SLA with NCC for governance support
Ineffective communication between YHN Board and subsidiary boards
Electronic newsletter sent to stakeholders pre and post board meetings
Ineffective scrutiny by YHN committees Failure to fill Board member vacancies in a timely manner
YHN Governance handbook Board Member, Committee, Chair and Vice Chair job descriptions
Ineffective Board member training programme Consequence YHN, Abri Trading Ltd or Asfaleia Ltd Boards unaware of decisions which affect the services they oversee Inability of Boards to provide adequate oversight or challenge to officers Date raised: November 2015 GR7
Inability of YHN staff to fulfil the business needs of the Group Cause Significant changes to YHN structure Significant changes to service delivery requirements YHN, Abri Trading Ltd or Asfaleia Ltd do not have the staff to meet their needs Staff require significant training and development Increase in staff turnover Inadequate training and development of YHN staff Increased staff turnover
Managing Director
People
Partially effective
Service level agreement in place with YHN and NCC for HR, OD, employee services and occupational health Service agreements in place with YHN and Abri Trading Ltd Service agreements in place with YHN and Asfaleia Ltd On-line recruitment tool to advertise to a wider audience Training and development programme Delivery Plan 2016-17 (incorporating operational service plans) Regular staff appraisals and 1:1 Team brief to keep staff up to date and involved
Reduced capacity to deliver services YHN Service Improvement Programme 2016-17
Consequence Failure to meet contractual obligations Reduced motivation and productivity of staff Loss of organisational knowledge and skills Staff health and wellbeing is reduced Increase in referrals to occupational health Staff sickness / absence increases Disruption to services and meeting service targets Service user needs not met Increase in support required for staff Date raised: November 2015
YHN staff benefits and rewards package including health and wellbeing
Board 1 November 2016 Quarter two (July-September) financial and non-financial performance Report by Managing Director and Head of Finance
For Discussion
1.
Background information
1.1
This report details our financial and non-financial performance at the end of quarter two (1 July to 30 September 2016). The report covers the following:
Progress against business targets; Key financial information; Performance against the Leazes Homes and Byker Community Trust contracts.
The remaining detail of our current performance is included in the appendices:
Appendix one is a financial summary pack which contains the financial performance for the YHN Group; Appendix two is a summary of all non-financial performance against the business targets in our Delivery Plan, grouped by the sections in the Management Agreement with Newcastle City Council; Appendix three details the recovery actions we are taking for our targets that are not on track; Appendix four details benchmarking information from HouseMark, and Appendix five provides information about formal complaints made to YHN.
2.
The targets
2.1
41 key business targets were developed as part of the Delivery Plan. These were designed to give assurance to key stakeholders (NCC, YHN Board and customers) that business critical areas are on track. The targets are a combination of:
Strategic targets reported to NCC Cabinet (covering services set out in the Management Agreement); Operational targets reported to NCC officers (covering services set out in the Management Agreement), and
2.2
Targets reported to Board from YHN’s Business Strategy.
We use a traffic light system to rate the status of each target. This means each target has a status of green, amber, red or blue. Where we have no data to report for a particular indicator we use a blue status. This table is a summary of current status for the targets reported in the appendix three. We have also summarised the performance of the operational targets which we report to NCC officers.
2.3
Green
Amber
Red
Blue
Targets in this report (appendix three)
13
4
2
4
Operational targets (reported to NCC)
14
1
0
3
For each target we have created a tile (a graphic) which shows:
Performance this year; Performance last year, and The target we are aiming for.
The table in appendix three lists the recovery actions for the targets which have a status of amber at the end of quarter two. We are members of the housing benchmarking group HouseMark. They publish benchmarking data for the sector on a quarterly basis and they have released information relating to quarter one. This information is included in appendix four. 2.4
We have provided Board with some information about formal complaints made by customers to YHN. This information relates to complaints we received over the past three years. These charts are set out in appendix five.
3.
Leazes Homes and Byker Community Trust contracts
3.1
We have agreed annual performance targets with Leazes Homes, and targets up to the end of September with Byker Community Trust. The chief officers of both companies have access to regular information about YHN’s performance, and we are reporting quarter two performance to Leazes Homes Board in December and Byker Community Trust Board in November.
3.2
The table below shows a summary by status of each target reported to Byker Community Trust and Leazes Homes. Green
Amber
Red
Blue
Leazes Homes Targets
3
3
0
0
Byker Trust Targets
9
0
4
0
3.3
Byker Community Trust: Target Former tenants rent and service charge arrears not to exceed £396,949, by 30/09/2016
Collect 95.2% of rent and service charges due from current and former tenants (excluding arrears brought forward and void rent loss) by 30/09/2016
RAG status and actual performance
Commentary about Q2 performance
£427,225
The target was not achieved. The rise in former tenant arrears was due to tenants terminating their tenancy and leaving rent arrears. However the reasons for terminations were not within YHN’s control.
93.9%
The amount of rent collected was lower than the forecast amount. This included a greater number of Universal Credit cases than anticipated which reduces the amount of rent we can collect.
Average re-let time for standard voids not to exceed 24 days by 30/09/2016
29 days
The void rent and service charge loss amount not to exceed 1.04%
1.4%
An increase in the number of terminations increased the workload for the YHN officers managing BCT’s accommodation and higher void rent loss.
3.4
Leazes Homes recovery actions: Target
RAG status and Actual performance
Current rent and service charge arrears not to exceed £74,550 by 31/03/2017
£198,103
Average arrears per property not to exceed £129 by 31/03/2017
£344
Average relet time for standard void properties not to exceed 25 days by 31/03/2017
33.07 days
Commentary about Q2 performance The rise in rent arrears follows delays in receiving Housing Benefit on newly allocated properties and a number of Housing Benefit payments not received in September. We anticipate arrears falling once these are received. Performance against the average arrears per property indicator is directly linked to the amount of rent arrears. The relet time has increased following three allocations made at specialist schemes. These specialist schemes use an alternative allocation process which leads to an increased re-let time.
4
The Business Implications
4.1
Mission and Strategic Objectives: The purpose of this report is to allow Board to ensure YHN is working appropriately towards its strategic objectives.
4.2
Value for money/efficiencies: This is covered in more detail in appendix one of the report.
4.3
Financial Implications: This is covered in more detail in appendix one of the report.
4.4
Other resources (property, technological or human): Appendix one shows the breakdown of income and expenditure by contract and service area. Appendix two provides details on our performance against key areas in the contracts with our landlords. We also have targets to measure the increase the amount of transactions with us completed online, staff engagement levels and sickness absence.
4.5
Impact on services/performance: This monitoring report allows Board and staff to drive improvements to performance. We have set out in appendix
three the improvement actions for the performance targets with a red or amber status at the end of quarter two. 4.6
Outcomes for tenants/leaseholders: The purpose of this report is to allow Board to ensure YHN is working appropriately towards its strategic objectives which are focussed on outcomes for our landlords, their customers and their neighbourhoods.
4.7
Risk (reputation, relationship): The information in this report is central to managing our relationship with NCC and our other landlords by demonstrating we are providing high quality services as set out in our Management Agreements. The financial information in this report allows us to manage the financial risks outlined in the Strategic Risk Register (overseen by Group Audit Committee).
4.8
Environmental: One of our key targets is to improve the SAP rating of the properties we manage. This has a status of green at the end of quarter two.
4.9
Legal: the information in this report is central to managing our relationship with NCC and our other landlords by demonstrating we are providing high quality services as set out in our Management Agreements.
4.10
Equality and Diversity and Community Cohesion: No issues directly arising from the performance reported during quarter two. When we have completed the staff survey and the tenant satisfaction survey (STAR) we will analyse the satisfaction information by different demographic characteristics and report any relevant findings to Board in future performance reports.
4.11
Stakeholder Involvement/consultation: Our key stakeholders were involved in setting most of the performance targets being monitored in this report. Performance against our key targets for each of our landlords is reported to them as agreed in our Management Agreements.
5.
Conclusion and recommendations
5.1
Board are asked to:  
comment on performance, and refer any areas of performance that require additional scrutiny to Service and Strategy Committee.
6.
Implementation
6.1
Board will receive the report for quarter three (2016-17) at the February Board meeting. Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact Lisa Forrest by telephone on 0191 278 8616 or email lisa.forrest@yhn.org.uk or Louise Horsefield by telephone on 0191 278 8720 or email louise.horsefield@yhn.org.uk.
Group Finance Reporting Pack Period 6 (Quarter 2) April to September 2016
Contents
1 Executive Summary 2 Financial KPIs 5 Ostara Income update 6 Group I&E summaries - year to date - by category - by service - by contract 9 Group Balance sheet summary 10 Company summaries - year to date - YHN - Asfaleia - Abri Trading
Executive Summary Income and Expenditure Q2 group performance is £372k ahead of plan: • Contributions from new areas of work (especially support and care +£350k) are a positive boost. • ICT spend is not as high as planned (+£165k), as some projects costs have been capitalised, and some have slipped, and some less than planned. • Conversely, redundancy costs have been higher than planned at this stage (-£350k). • There is a contingency budget to handle pressures as they arise (+£180k). • All gains would be wiped out in the annual accounts by the charge for current pension costs.
Group profit vs budget (£'000s) £2,000 £1,800 £1,600 £1,400 £1,200 £1,000 £800 £600 £400 £200 £0
£1,773
£1,694
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Actual (and forecast)
Group Budget
Balance Sheet
HRA management
The group balance sheet now shows the YHN pension deficit, and the long term commitments under contract for the YHN fleet. Current assets and liabilities are in a healthy position.
The capital programme has dropped by £3.1m since Q1 to £51.5m, and is now below the NCC-approved budget of £52.8m.
Financal KPIs
F1 - Bank balances (£'m)
F2 - Profit by company (£'m)
F3 - Trading Surpluses (£'m)
1,600
£10.00
1,152
£8.00
1,100
£5.98
£6.00
£2.96
1,134
£1.95 600
£4.00 £2.00
100 £0.00 1
2
3
4
5
6
7
8
9
10
11
12
-£2.00
-400
-298 Budget Actual
-£4.00
-900 -£6.00
YHN Bank
NCC current account
Total
Comments: Cash values are showing £5.98m at the end of P6, £1.8m current account with NCC, £4.18m actual cash in bank. Cash flows are largely following the profile we expected during our financial modelling. Monthly increases generated from operations, with quarterly drops when VAT accounts are settled.
ASFALEIA
ABRI
-253
ABRI (Palatine)
Apr May Jun
Jul
Aug Sep Oct Nov Dec Jan Feb Mar Actual
Target
Comments:
Comments:
We have seen a shift of profit from YHN to the subsidiary companies compared to budget.
Trading surpluses are on track to meet the £2.96m target, we are £172,500 ahead of target.
The allocation of costs to across the group has been revised since budgets were set. Total taxable profit in subsidiaries is estimated to be £583,000 suggesting a tax liability of c. £117,000. However unprofitable contract areas in the parent will reduce this liability.
The operational (warehouse) budgets are £57,000 ahead of budget at this point, with some estimates in the Palatine figures.
Financial KPIs
F4 - Housing management cost per property
F5 - Cost per standard void
F6 - Cost per major void
£395.00
£389.60 £390.00
£382.60
£385.00 £380.00 £375.00
£370.00 £365.00 £360.00 1
2
3
4
Target
5
6
7
8
9
10
11
12
Cost per Unit
Comments: Housing management costs in YHN are higher than target. YHN has taken on additional costs on behalf of the HRA, and this is being funded through higher management fees. (e.g estate warden services and legal costs). However, the new costs are pushing this measure above target.
Comments: Cost per standard void is below target at £1,759 per void. This is based on completed voids up to P5.
Comments: The average cost of a major void is slightly above target. This is based on completed voids up to P5.
P5 has gone slightly over target at £6,140. We are seeing more plastering jobs in voids which pushes up void times and costs. Overall, the average cost is £170 greater than the target.
Spend managed on behalf of NCC
F7 - R+M contract spend (£'m)
F8 - HRA Investment programme (£'m)
F9 - Lifecycle programme (£'m)
5.00 4.50
Budget Actual
4.00 3.50
Month
Q2
Month
51,542
22,406
Q2
Q1
Q1
Comments:
Comments:
Comments:
At Q2 the repairs budget is overspent by +£230k due to a spike in resposive repair numbers in P1.
The current budget allocation for the 2016-17 HRA Investment Programme is £52.8m. The projected spend has dropped to £51.5m (Q2) from £54.7 (Q1).
In September, NCC Cabinet agreed that the proportion of the capital programme for lifecycle works should be increased from £19.6 to £20.9m. More essential roof, window and door schemes have been identified.
3.00 2.50 2.00
1.50 1.00
0.50 0.00 Responsive
Voids
Gas ServicingM&E Cyclical
The responsive repairs variance is +£270k. The voids underspend of £-70k offsets this amount somewhat, but not as much as in previous periods. The gas servicing budget is -£45k underspent to date and cyclical are overspent by +£70k. Gas servicing is reducing as much of the work has been achieved in the first months of the year.
This is mainly due to £2.0m of the Ferguson's Lane newbuild scheme in Benwell being rephased in to 2017-18 (-£2.0m). The £4m set aside for works identified by tenants, is not expected to be spent in full, as some schemes have been assessed as unfeasible, and others are less expensive than first thought. (-£0.7m).
We are currently over-programming on lifecycles by £1.5m, to provide a buffer against external factors and tenant refusals of works.
Ostara income update Current year impact on finances
Current Year The graph shows the projected Ostara income at September against the plan which was set based on customer numbers in January.
Ostara income (£'000s) £1,063
£1,200 £1,000 £800
The situation has improved from Q1, as the projected income is tracking closer to the target line. We expect to miss budget by -£175,000. In July, we reported the potential loss as -£229,000. Customer numbers remained steady at 2,900 during Q2 after the initial fall when charges began. Bad debts are at £38k so far this year.
£888 £600
£400 £200 £0 1
2
3
Target
4
5
6
Actual
7
8
9
10
11
Extrapolate
12
Group I&E Summary - by Category Year to date Operating Income HRA Management Fee Other Landlord Fees Service Charge Fee (Inc.) Furniture Rentals (External) Furniture Sales Telecare Income Leaseholder charges Other Income Grants and Donations Operating Expenditure Staff Premises Transport Supplies and Services Furniture cost of sales SLAs and recharges Depreciation Grants and Donations Central Contingency Finance Costs Interest Costs
Corporation Tax
Group total to reserves
£000s
£000s
£000s
£000s
Annual Budget
YTD Budget
YTD Actuals
YTD Variance
18,282 2,723 9,053 5,944 2,488 1,098 54 1,034 16 40,692
9,081 1,640 4,702 2,972 1,244 476 8 517 8 20,648
9,171 1,654 4,705 2,852 1,271 382 0 984 3 21,023
90 14 4 (120) 27 (94) (8) 467 (5) 375
(25,768) (1,416) (934) (3,056) (1,604) (2,110) (3,717) (82) (361) (39,049)
(12,578) (688) (469) (1,427) (802) (1,055) (1,859) (41) (181) (19,101)
(13,010) (575) (448) (1,357) (827) (1,101) (1,791) (33) 0 (19,142)
(432) 113 21 70 (25) (46) 67 8 181 (41)
(292) (292)
(146) (146)
(146) (146)
(1) (1)
0
0
0
0
1,351
1,401
1,735
334
Manager summary: Other Income has been bolstered by additional work carried out for NCC and other partners - for example managing refugee schemes and new extra care schemes. Telecare and rentals to external clients are down from budget. Staff costs have increased to deliver the new areas of work, but overall a contribution to overheads is being made. Some redundancies have been approved.
The depreciation figure is largely an estimate as work is done to improve reporting from the NFS furniture database. No estimate for corporation tax has been included but not expected to be significant.
Group I&E Summary - by Service Year to date Tenancy Business Services Housing Options Income & Tenancy Management Environmental Services Care and Support Byker Housing Management Tenancy Services General
£000s
£000s
£000s
£000s
Annual Budget
YTD Budget
YTD Actuals
YTD Variance
3,306 885 (4,557) (274) (999) (28) 5,464 3,796
1,970 452 (2,246) (122) (461) (25) 2,743 2,312
2,014 488 (2,259) (78) 89 (25) 2,699 2,927
44 36 (14) 44 549 1 (44) 616
1,407 (129) 46 (979) 345
695 (63) 51 (495) 188
717 (59) 80 (487) 250
23 3 29 7 63
Property Investment Property General Property Maintenance Technical
Corporate and Central Business Strategy Finance HR and OD ICT Employability Central Provisions Chief Executive Development and Procurement
Group total to reserves
(690) (1,111) (1,042) (2,396) (100) 3,067 (338) (180) (2,790)
(318) (549) (521) (1,112) (36) 1,678 (153) (88) (1,098)
(282) (549) (473) (948) 14 1,049 (148) (107) (1,443)
36 1 48 165 50 (629) 5 (19) (344)
1,351
1,401
1,735
334
Manager summary: Business services (NFS and Palatine) is ahead of plan by +£44k. Operational performance is ahead of plan (+£50k) although rental volumes are starting to drop. Care and Support is ahead of plan by £549k. New income is being earned within existing budgets (+£350k). Overheads charged into this service are lower than budget (+£40k). There are siginificant levels of vacancies (+£200k) but Telecare income is lower than plan (-£100k). ICT spend is lower than planned on (+£165k) project spend has come in lower than planned (+£90k). Central Provisions In line with expectations, +£160k of contingency budgets is balanced against -£500k of a central staff turnover budget. YHN is absorbing more overheads (-£570k). And redundancies are higher than YTD budget (-£365k)
Group I&E Summary - by Contract Year to date
£000s Annual Budget
£000s YTD Budget
£000s YTD Actuals
£000s YTD Variance
YHN HRA - Income and Tenancy management HRA - Lettings HRA - Leasehold HRA - Involvement HRA - Gardening HRA - Property Maintenance HRA - Capital Programme Management HRA - Furniture rentals HRA - Concierge YHN Other contracts Byker - Concierge Byker - General Management Leazes - General Management
FC comments 1,174 559 139 37 (49) 790 331 3,413 419 540 (29) (429) (95) 6,802
582 279 68 22 (11) 385 154 1,868 209 270 (14) (70) (46) 3,694
540 320 73 27 4 344 207 1,945 305 643 13 (110) (99) 4,214
(42) 41 5 6 15 (40) 53 77 96 373 28 (39) (53) 520
2,580 49 371 (38) 0 (709) 2,253
1,290 22 203 (19) 0 (354) 1,141
1,238 (82) 209 (17) 0 (233) 1,115
(52) (104) 7 2 0 121 (26)
225 538 243 40 0 (313) (94) (41) 597
143 269 122 25 0 (260) (47) (20) 231
159 293 141 63 0 (227) (78) (19) 333
17 25 19 38 0 33 (31) 1 101
Finance Costs
(9,011) 1,000 (291)
(4,019) 500 (146)
(3,780) 0 (146)
239 (500) 0
Group total to reserves
1,351
1,401
1,735
334
Abri External Rentals Palatine Byker - furniture rentals Leazes - furniture rentals Abri Other contracts Furniture Sales
Asfaleia HRA - Sheltered Housing HRA - Young People Service HRA - Advice and Support HRA - Employability Asfaleia other contracts Telecare income "Ostara" Leazes - Sheltered and extra care Byker - Sheltered
Overheads Expected staff churn
YHN "Other YHN contracts" includes refugee schemes and other miscellaneous work carried out on behalf of NCC and others. The furniture rentals to the HRA are currently showing as ahead of plan. Abri NFS furniture sales are ahead of target at this point in the year, but sales in Palatine have missed target based on current information.
External rentals are behind plan, as furniture pack numbers are declining. Asfaleia The Telecare service area is underspent currently as some vacancies are being held pending the success of the repricing and rebranding exercise and other budgets are not used. +£160k. This is outweighing the missed income target (-£80k). Some additional costs are being incurred above budget in the delivery of a Leazes extra care scheme.
Group balance sheet summary
Fixed Assets
Current Assets
Current Liabilities
Non current liabilities
Operational Assets Other equipment Depreciation
Inventory Accrued income Provision for bad debt Prepayments VAT debtors Invoices not yet paid Bank and petty cash
Income in advance VAT Creditors Accrued Expenditure NCC current account Accounts Payable
Loans Finance Leases
Net Assets before Pension liability Non current liabilities
Pension Liability
Total net Assets Reserves
Total reserves
Opening Reserves Surplus/(loss) for the year
£000s Current 12,779 634 (8,443)
£000s Opening 12,012 569 (6,690)
£000s Change
4,969
5,890
(920)
786 1,179 (178) 971 0 2,507 4,140
638 897 (140) 552 577 5,514 7,733
148 282 (38) 419 (577) (3,007) (3,594)
9,406
15,771
(6,367)
(14) (720) (2,218) 1,800 (107)
(16) (2,187) (1,782) (6,157) (138)
1 1,467 (436) 7,957 31
(1,259)
(10,279)
9,020
(6,500) (250)
(6,500) (250)
0 0
6,366
4,632
1,734
(14,360)
(14,360)
0
(7,994)
(9,728)
1,734
(9,728) 1,735
(9,728) 0
0 1,735
(7,993)
(9,728)
1,735
768 65 (1,752)
Comments (FC) Fixed Assets Assets and Depreciation numbers are largely estimates due to data limitations in the NFS stock system that are being resolved. Debtors and Cash remain steady. Finance leases and the Pension Deficit are now shown as liabilities in the balance sheet after late inclusion in the annual accounts. Cash balances are lower than expected, but a £2.6m invoice was settled on the day after the end of Q2. Reserves Surplus for the year so far of £1.73m is added to the opening (negative) reserves of -£9.73m to give total reserves of -£8.0m.
YHN Company Income and Expenditure Annual Buget
Operating Income Operating Expenditure Finance Costs
YTD Actuals
Variance
42,110
21,220
21,276
57
(40,642)
(19,911)
(20,066)
(154)
(131)
(65)
(59)
7
0
0
0
0
1,337
1,243
1,152
(91)
Corporation Tax YHN Total
YTD Budget
Balance Sheet Current
Comments (FC):
Fixed Assets Bank and Cash Other Current assets
6,357 1,932 5,740
Income YHN is not charging as much as planned for overheads and direct costs within the group (-ÂŁ500k), but is earning additional income from other projects (+ÂŁ560k).
Current Liabilities Long Term Liabilities
(2,583) (21,110)
Expenditure Severance costs have been incurred earlier in the year than initially profiled, leading to an adverse variance. There remains a large strategic reserve for future transformation costs.
Net assets Opening reserves YTD actuals Reserves
(9,663) (10,815) 1,152 (9,663)
Bank balances and net current assets remain in a comfortable position.
Abri Trading Ltd Income and Expenditure Annual Buget
Operating Income Operating Expenditure Finance Costs
Variance
4,609
4,501
(108)
(8,303)
(4,040)
(3,537)
503
(152)
(76)
(83)
(7)
0
0
0
0
730
493
881
388
YHN Total
Comments (FC):
Balance Sheet Current
Current Liabilities Loans
YTD Actuals
9,184
Corporation Tax
Fixed Assets Bank and Cash Other Current assets
YTD Budget
2,341 1,589 2,300 (1,097) (3,707)
Net assets
1,427
Opening reserves YTD actuals Reserves
546 881 1,427
Income General sales are ahead of plan for Abri Trading, but external rentals and Palatine sales are falling behind budget.
Expenditure So far this year, the level of overheads to be charged into Abri Trading has been less than expected. Direct costs for the furniture operations are working to plan, but again these are being shared into the subsidiary at a lower rate than planned. Overall, budgets are ahead of target by ÂŁ388k and there is a healthy balance sheet with net current assets of ÂŁ2.8m
Asfaleia Ltd Income and Expenditure Annual Buget
Operating Income Operating Expenditure
2,964
(10)
(6,801)
(3,305)
(3,258)
47
(9)
(4)
(4)
(0)
0
0
0
0
(716)
(335)
(298)
37
Balance Sheet
Comments (FC): Current
Current Liabilities Loans Net assets Opening reserves YTD actuals Reserves
Variance
2,974
Corporation Tax
Fixed Assets Bank and Cash Other Current assets
YTD Actuals
6,094
Finance Costs
YHN Total
YTD Budget
171 620 342 (658) (193) 281 541 (298) 243
Income Telecare income is behind plan by ÂŁ99k, but this is being largely offset so far by additional income from sheltered schemes. Expenditure The underspend on expenditure shown is due to the fact that overhead costs charged from YHN to Asfaleia have been lower than planned. There have also been some vacancies that have been held within the Telecare service pending the success of the customer conversion project. Asfaleia is operating within the budgets set. Current liabilities remain positive despite the planned losses to date.
Appendix 2
8 -----8 8
Rent collection and arrears (1/1)
Key
Target Profiled target Actual performance Previous year
Collect 99.22% (£110.69m) of rent by 31/03/2017 100.0%
Collected 97.86% of rent due.
98.0%
96.0%
94.0%
92.0% P1
P2 P3 P4
P5 P6
P7 P8 P9 P10 P11 P12
Rent arrears from current tenants not to exceed £2.87m by 31/03/2017 £4,000,000 £3,500,000
Arrears were £3.48m but fell the following week once payments were correctly allocated in the IT system.
£3,000,000 £2,500,000 £2,000,000 £1,500,000 P1
P2 P3 P4
P5 P6
P7 P8 P9 P10 P11 P12
Evict no more than 78 tenants for rent arrears by 31/03/2017 90 80 70 60 50 40 30 20 10 0 P1
P2 P3 P4
P5 P6
P7 P8 P9
P10 P11 P12
We have evicted 22 tenants this year.
Appendix 2
8 -----8 8
Lettings and void costs (1/3)
Key
Target Profiled target Actual performance Previous year
The average re-let time for all void properties not to exceed 53.3 days by 31/03/2017 80.0
Relet time currently at 45.3 days.
70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 P1
P2 P3 P4
P5 P6
P7 P8 P9
P10 P11 P12
The average re-let time for non-Walker multi storey void properties not to exceed 28 days by 31/03/2017 60.0 Relet time currently 27.7
days.
50.0 40.0 30.0 20.0 10.0 0.0 P1
P2 P3 P4
P5 P6
P7 P8 P9
P10 P11 P12
The turnover of properties not to exceed 2,210 (8.5%) by 31/03/2017 3,000 2,500
1,178 tenancies have terminated this year. See appendix 3 for futher details about this target.
2,000 1,500 1,000 500 0 P1
P2 P3 P4
P5 P6
P7 P8 P9
P10 P11 P12
Appendix 2
8 -----8 8
Lettings and void costs (2/3)
Key
Target Profiled target Actual performance Previous year
The void rent loss amount not to exceed 1.26% (£1.40m) by 31/03/2017 1.8%
Void rent loss is currently 1.53%.
1.6%
See appendix 3 for further details about this target.
1.4% 1.2% 1.0% 0.8% 0.6% P1
P2 P3 P4
P5 P6
P7 P8 P9
P10 P11 P12
The average cost of a void repair for standard voids not to exceed £1,903 by 31/03/2017
See finance pack (appendix 1)
The average cost of a void repair for major voids not to exceed £5,822 by 31/03/2017
See finance pack (appendix 1)
Appendix 2
8 -----8 8
Lettings and void costs (3/3)
Key
Target Profiled target Actual performance Previous year
61% of properties accepted on first offer during 2016-2017 64%
Currently 59.3% of propeties are accepted on first offer.
62% 60%
See appendix 3 for further information about this target.
58% 56% 54% 52% 50% 48% 46% P1
P2 P3 P4
P5 P6
P7 P8 P9
P10 P11 P12
Appendix 2
Oversight of Capital Programme and Repairs & Maintenance (1/2)
8 -----8 8
Key
Target Profiled target Actual performance Previous year
Spend no more than ÂŁ20.07m on repairs and maintenance during 31/03/2017
See finance pack (appendix 1)
100% of properties to have a gas safety certificate by 31/03/2017 100.0%
Performance remains at 100%.
100.0% 99.9% 99.9% 99.8% 99.8% 99.7% P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12 No properties (0%) fail to meet the Decent Homes Standard by 31/03/2017
All properties meet the government's Decency Standard. This would rise to 1.2% if we do not complete the programme of lifecycle improvement during the year.
1.9%
1.4%
0.9%
Additional information about the capital programme is available in appendix 1.
0.4%
-0.1%
P1
P2
P3
P4
P5
P6
P7
P8
P9 P10 P11 P12
Appendix 2
Oversight of Capital Programme and Repairs & Maintenance (2/2)
8 -----8 8
Key
Target Profiled target Actual performance Previous year
Increase the SAP rating for council properties to 68.58 by 31/03/2017 69.00
The current average SAP rating is 68.69 for all council properties.
68.50 68.00 67.50 67.00 66.50 66.00 65.50 Q1
Q2
Q3
Q4
Appendix 2
ASB, customer satisfaction and support services (1/2)
Resolve 96% of anti-social behaviour cases investigated by 31/03/2017 100 98
8 -----8 8
Key
Target Profiled target Actual performance Previous year
Currently 99.1% of closed ASB cases are sucessfully resolved.
96 94 92 90 88 P1
P2
P3
P4
P5
P6
P7
P8
P9 P10 P11 P12
Successfully sustain 98% of all tenancies that Young Peoples Services support by 31/03/2017 100.0% 99.21% of young
people that YPS work with sustain their tenancy.
99.5% 99.0% 98.5% 98.0% 97.5% 97.0% P1
P2
P3
P4
P5
P6
P7
P8
P9 P10 P11 P12
Successfully sustain 98% of all tenancies referred into the Advice and Support by 31/03/2017 100.0% 99.77% of customers
using the Advice and Support service sustain their tenancy.
99.5% 99.0% 98.5% 98.0% 97.5% 97.0% P1
P2
P3
P4
P5
P6
P7
P8
P9 P10 P11 P12
Appendix 2
ASB, customer satisfaction and support services (2/2)
8 -----8 8
Key
Target Profiled target Actual performance Previous year
51 people in our employability programme move onto education, employment or training by 31/03/2017 100%
74% of customers in our employability programme have a sucessful outcome from the programme.
90% 80% 70% 60%
See appendix 3 for further details about this target.
50% 40% 30% 20% 10% 0% P1
P2
P3
P4
P5
P6
P7
P8
P9 P10 P11 P12
80% of customers who are satisfied with the condition of their neighbourhood by 31/03/2017 80.2% We have appointed
a research company to complete our tenant satisfaction survey. The results of the survey will be available for the quarter three performance report.
80.0% 79.8% 79.6% 79.4% 79.2% 79.0% 78.8% 78.6% 78.4% Q1
Q2
Q3
Q4
87.5% customers who are satisfied with the service provided by YHN by 31/03/2017 88.0% We have
appointed a research company to complete our tenant satisfaction survey. The results of the survey will be available for the quarter three performance report
87.5% 87.0% 86.5% 86.0% 85.5% 85.0% 84.5% 84.0% Q1
Q2
Q3
Q4
Appendix 2
8 -----8 8
Management costs and staff targets (1/2)
Key
Target Profiled target Actual performance Previous year
Increase the number of transactions completed online to 93,450 by 31 March 2017
There have been 40,472 online transactions this year.
100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 -
See appendix three for further details about this target.
P1
P3
P5
P7
P9
P11
Generate a net surplus of ÂŁ2.96m from NFS and Palatine by 31/03/2017
See finance pack (appendix 1)
The total cost per property managed not to exceed ÂŁ382.60 by 31/03/2017
See finance pack (appendix 1)
Appendix 2
8 -----8 8 8
Management costs and staff targets (2/2)
Reduce sickness levels to 7.5 days per staff member by 31 March 2017 10 9 8 7 6 5 4 3 2 1 0 P1 P3 P5 P7 P9 P11 58% of staff are feel engaged with YHN as an employer by 31 March 2017 70% 60% 50% 40% 30% 20% 10% 0% Q1
Q2
Q3
Q4
Key
Target Profiled target Actual performance Actual Rolling Previous year
Sickness rates are currently 5 days per member of staff. See appendix three for further details about this target.
We will appoint a research provider by Christmas and results of the survey will be available by March 2017.
Appendix three: Recovery actions for targets with a status of red or amber at the end of quarter two Amber targets Target
Recovery actions
Target 1: Spend no more than £20.07m on repairs and maintenance by 31/03/2017
The R&M budget was £230K overspent at the end of period two.
Date we expect to see improvement in performance By March 2017
A high level of responsive expenditure was claimed in period one of 2016-17, but there has been a steady reduction in forecasted expenditure since. It is anticipated this will continue throughout the year. Repairs expenditure is predominantly demand led. YHN will continue to rigorously monitor expenditure, and control costs without having any detrimental impact on customer service. Over the coming months we will mitigate high levels of expenditure by:
Target 11: the turnover of properties not to exceed 2,210 (8.5%) by 31/03/2017
Identifying the most frequent repair types, using the information to inform investment needs, thus reducing responsive repairs and getting greater efficiency from the spend; Continuing to work with our repairs partner to ensure value for money on repairs expenditure. We anticipated reducing turnover across the city by changing the process for dealing with existing tenants who wished to move to a new property (known as a transfer). It took longer than anticipated to obtain approval from NCC to make this change and we are only permitted to use the revised
By March 2017
approach on applications for rehousing that we received following the start of the pilot, rather than on all existing applications.
Target 13: 61% of properties accepted on first offer during 201617
We began using the new process for managing transfers in August and will continue using it until the end of March. If it is successful we will adopt it permanently in April. This is a target for 2016-17 and it measures the number of offers By March 2017 for accommodation we make where a customer accepts the offer straight away. This indicator is usually reported to city council officers, but we are reporting it to Board as performance against this target is amber at end of quarter two. Performance against this measure has declined during September. The main reasons offers of housing are refused are: Customers do not respond to the invite to attend a viewing of a property; Customers do not wish to live in the neighbourhood of the new property. We plan to improve performance against this target by tightening up our processes with our housing options staff. We will: Offer customers more information about the local area, and Be more proactive when we contact a customer asking them to attend a viewing.
Target 26: 85% of people in our employability programme move into education, employment or training by 31/03/2017
We reported performance against this target as amber at the end of quarter one owing to the number of people in the programme who left the programme without a successful outcome.
By March 2017
During this quarter three people have left without a successful outcome which reduces the likelihood we will achieve this target by March 2017. In September we recruited a new intake to our apprenticeship programme. We replaced our previous recruitment approach (a short interview) with a four day assessment centre. This was a change we made following a review of the apprentices who did not successfully complete their apprenticeship at the end of quarter one.
Target 36: The average cost of void repairs for major voids not to exceed £5,822 by 31/03/2017
This revised approach means we better understand the needs of our new apprentices and can put in place appropriate support when they start with YHN. It also enables the apprentice to understand the expectations of undertaking an apprenticeship with YHN. We expect this will reduce the likelihood that these apprentices will complete their apprenticeship with an unsuccessful outcome. For each void we measure the cost of: By March 2017
Void reinstatement works; Decorating allowance provided by YHN to customers, and Council tax loss.
A major void is a defined by the benchmarking group HouseMark and generally refers to those properties requiring the largest amount of work to bring the property to a suitable
standard before we can allocate it. Recently we have seen an increase in the amount of plastering work required. This is an expensive trade and pushes up the average cost of repairing major voids.
Target 37: Increase the number of online transactions to 93,450 by 31/03/2017
The Property Maintenance service monitor the cost and quantity of all void works to ensure that the amount of reinstatement work is appropriate. This will continue for the rest of the year. This was a new target for this year which features in our Business Strategy. When setting the target we anticipated:  
Maintaining the current level of online transactions, and Launching new online services during the year.
Over 90% of our online transactions come from customers paying their rent online and viewing their rent account online. The number of customers using these two services have remained broadly static this year. We attribute this to the increase in customers paying their rent by direct debit. As this is our preferred method of customers paying their rent, the income recovery service will encourage the use of direct debits during conversations with customers and we will continue to encourage this payment method for all new tenants when starting a tenancy. We also anticipated launching a new online system for customers to report repairs early in this year. This is behind schedule due to a number of IT delays. It is currently being tested prior to launching to customers. We anticipate this will take place before the end of the financial year.
Red targets Target 12: The void rent loss amount not to exceed 1.26% (£1.40m) by 31/03/2017
We assumed that we would reduce our void rent loss by:
Meeting our target on reducing the number of terminations we receive; Meeting the target for void re-let time, and Allocating a number of long term voids in the Walker multi-storey blocks following the clearance of St Anthony’s House.
The section above outlines our challenges with reducing terminations and the re-let performance is performing in line with expectations. We have also allocated fewer Walker multi-storey properties than planned as customers leaving St Anthony’s House chose to move into other accommodation in different parts of the city. The voids rent loss only reduces slowly over the year so we do not expect to achieve this target. The Board will be receiving a report from the work on the Voids Time Limited Committee which will include changes to our processes that will help improve our performance in the future. For the remainder of this year we anticipate performance will be maintained at its current rate.
We do expect to improve performance during the year
Target 40: Reduce sickness levels to 7.5 days per staff member by 31/03/2017
The level of sickness absence has risen more than anticipated during the quarter which means we will be unable to achieve the year end target. There was a rise of 1.4 days absence in the Tenancy Services Directorate while sickness fell in the other two directorates. Although we do not believe we can meet the target by year end we will: 

Continue with the audit of how managers deal with sickness cases. In Tenancy Services the Heads of Service are closely monitoring the absence case work of their line managers, and taking action where appropriate. In November we will launch a new training module on health and wellbeing for all staff.
We do expect to improve performance during the year
Appendix four Benchmarking from HouseMark
Key
The group we have used in HouseMark measures our performance against other ALMOs and Housing Associations with stock above 10,000 homes (exlcuding London and the South East).
YHN Performance Upper Quartile Median Lower Quartile
Rent Collection, Evictions and ASB Target 14 - Collect 99.22% of rent by 31/03/2017
101.60% 100.80% 100.00% 99.20% 98.40% 97.60% 96.80% 96.00% 15-16 Q1
15-16 Q2
15-16 Q3
15-16 Q4
16-17 Q1
Target 16 - Evict no more than 78 tenants for rent arrears by 31/03/2017
0.70% 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% 2013-14
2014-15
2015-16
Target 17 - Resolve 96% of anti-social behaviour cases investigated by 31/03/2017 100.00%
90.00%
80.00%
70.00% 15-16 Q1
15-16 Q2
15-16 Q3
15-16 Q4
16-17 Q1
Appendix four Benchmarking from HouseMark
Key
YHN Performance Upper Quartile Median Lower Quartile
Void re-let time, void rent loss and turnover
Target 9 - The average re-let time for all void properties not to exceed 53.3 days by 31/03/3017 60 50 40 30 20 10 0 15-16 Q1
15-16 Q2
15-16 Q3
15-16 Q4
16-17 Q1
Target 11 - The turnover of properties not to exceed 8.5% by 31/03/2017 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 2013-14
2014- 15
2015-16
Target 12 - The void rent loss amount not to exceed 1.26% by 31/03/2017 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% 15-16 Q1
15-16 Q2
15-16 Q3
15-16 Q4
16-17 Q1
Appendix four Benchmarking from HouseMark
Key
YHN Performance Upper Quartile Median Lower Quartile
Offers accepted, gas safety and SAP rating
Target 13 - 61% of properties accepted on first offer during 2016-17
78.00% 70.00% 62.00% 54.00% 46.00% 38.00% 30.00% 2015-16 Q1
2015-16 Q2
2015-16 Q3
2015-16 Q4
2016-17 Q1
Target 2 - 100% of properties to have a gas safety certificate by 31/03/2017 100.05% 100.00% 99.95% 99.90% 99.85% 99.80% 15-16 Q1
15-16 Q2
15-16 Q3
15-16 Q4
16-17 Q1
Target 6 - Increase the SAP rating for council properties to 68.58 by 31/03/2017 75 72 69 66 63 2013 - 14
2014 - 15
2015 - 16
Appendix four
Benchmarking - HouseMark
Key
YHN Performance Upper Quartile Median Lower Quartile
Sickness and Decent Homes Standard
Target 40 - Reduce sickness levels to 7.5 days per staff member by 31/03/2017 12 10 8 6 4 2 0 15-16 Q1
15-16 Q2
15-16 Q3
15-16 Q4
16-17 Q1
No properties fail to meet the Decent Homes Standard 31/03/2017
Appendix five
Complaints received by month, April to March each year 80 70 60 50 40 30 20 10 0
2014-15
230 complaints have been received in the period from April to September 2016-17. This is 97 fewer than the same period last year.
2015-16 2016-17
Complaints received by directorate, April to September each year 350 300
Corporate Services
250
Tenancy Services
200 150
The four teams receiving the most complaints are: Tenancy and Estate Management with 55 complaints, Assets and Regeneration with 43, and Support and Care and BCE both with 33.
Property Services
100
BCE
50 0 2014-15
2015-16
2016-17
Complaints received by category, April to September each year 400 350 300
Other
250
Staff
200
Service
150
Policy
100
Delay
50 0 2014-15
2015-16
2016-17
Compared to last year there has been a rise in the proportion of complaints about the poor quality of service across all teams in YHN.
Appendix five
Complaint outcomes by year, April to September each year 350 300 250 200
Withdrawn
150
Not Justified
100
Justified
50
There has been a trend towards a higher proportion of complaints being found to be not justified over the last three years. BCE have the highest proportion of justified complaints at 54%. The category with the highest proportion of justified complaints is delay in providing a service at 54%.
0 2014-15
2015-16
2016-17
Number of complaints responded to on time, April to September each year
Currently we respond to 94% of complaints on time, this is the same as for last year, and an improvement on 2014-15.
350 300 250 200
On time
150
Not on time
100 50 0 2014-15
2015-16
2016-17
Learning Reports received by month, April to September each year 350 300 250 200
Received
150
Not Received
100 50 0 2014-15
2015-16
2016-17
Learning logs enable improvements to be implemented following a complaint. The current return rate is 56% which is a slight improvement on the same period last year.
Board 1 November 2016 Business and Financial Planning 2017-18 process Report by Head of Finance For Decision
1.
Background information
1.1 We annually undertake a process to develop the delivery plan and budget. This process seeks to align the development of financial and non-financial plans for the coming year. These are developed taking into account key risks, opportunities, contractual requirements set out by our landlords and the resources required. For 2017-18, this will also need to take account of aims and objectives for the organisational transformation programme. This report sets out the proposed timetable for the business and financial planning process for 2017-18. 2.
Issues and concerns
2.1 As a result of the new YHN Group structure, there are additional steps we need to undertake in the process this year, as set out in the inter-group agreement documents. These additional processes seek to allow the parent to set out expectations to the subsidiaries for their consideration in developing their financial and non-financial plans for the coming year, which will then be presented back to group board. 2.2 The process needs to be flexible enough to enable officers to adapt commitments previously made for efficiencies to fall in line with the aims and objectives of the organisational transformation programme. 2.3 NCC have not yet set out any specific budget requirements for YHN for 201718 (in addition to the 5% saving previously set out) pending further clarity of the potential impact to the Housing Revenue Account as a result of implementation of the Housing and Planning Act and other relevant legislative changes.
3.
The possibilities
3.1
The table below sets out proposed key milestones for approvals in the process. Meeting Date: 1 November 2016 17 November 2016 7 December 2016
Forum: YHN Board
Discussion or approvals required: Approval of the proposed process
Group Audit Committee YHN Board
January 2017 (dates tbc)
Asfaleia and Abri Boards
February 2017
YHN Board
February 2017
Group Audit Committee YHN Board
Report outlining the process (strategic risk register) Approval of the top level base budget, parameters of the business plan and the corresponding risk register. Agreement on what will be set out to subsidiaries Subsidiary boards meet during January to discuss their own deliverables/KPI’s within the delivery plan, budget and risks set out by group board. Group board consider feedback from subsidiary boards and any other emerging issues Final review of risk register for recommendation to Board. Approval of Budget, Delivery Plan and Risk register (Delivery plan recommended to NCC Cabinet)
March 2017
This timescale is tighter than usual due to the requirements of the new group structure and its governance requirements. Taking this into account, the proposed approach to developing the budget and delivery plan is as follows: Approach
Benefits
Limitations
Follow last year’s detailed approach but with a general fund for transformation activity as yet unidentified.
Where we expect transaction volumes and customer mix are expected to change significantly during next year, include additional analysis e.g. : NFS, Ostara, income collection
Services maintain the momentum built up last year in terms of 3 year efficiency plan already committed Services will be fully involved with the process Gives flexibility for transformation activity as the plans are firmed up
Services don’t yet know impact transformation will have on existing plans. Timescales are tight
4.
The Business Implications
4.1
Mission and Strategic Objectives: The business and financial planning process seeks to ensure that the 2017-18 budget and business plan will
enable us to meet the new objectives set out in the business strategy. 4.2
Value for money/efficiencies: The process aims to ensure that service can honour efficiency commitments made in the three year plan agreed last year. Officers will also be asked to review these plans to consider what additional efficiencies can be achieved.
4.3
Financial Implications: There are no financial implications arising directly from the process set out in this report.
4.4
Resources (financial, property, technological or human): The business and financial planning process seeks to ensure that the 2017-18 budget and business plan will enable us to meet the new objectives set out in the business strategy. Consideration of required resources is intrinsic to this process.
4.5
Impact on services/performance: Consideration of this is a key part of the business and financial planning process. Discussions are already under way with officers at Newcastle City Council to understand the expectations in relation to the services in the management agreement.
4.6
Outcomes for tenants/leaseholders: Consideration of this is a key part of the business and financial planning process.
4.7
Risk (reputation, relationship): Consideration of this is a key part of the business and financial planning process. The final report to Board in March 2017 will include a revised Strategic Risk Register for approval.
4.8
Environmental: There are no environmental implications arising directly from the process set out in this report.
4.9
Legal: Consideration of this is a key part of the business and financial planning process.
4.10 Equality and Diversity and Community Cohesion: Consideration of this is a key part of the business and financial planning process. 4.11 Stakeholder Involvement/consultation: During the Business and Financial Planning Process consultation will be carried out with YHN Board, YHN officers, Abri Trading Ltd and Asfaleia Ltd Boards, Newcastle City Council and tenants. 5.
Conclusion and recommendations
5.1 Board is asked to approve the proposed approach and key approvals set out in section 3
6.
Implementation
6.1 Following Board approval, the business and financial planning process will be
implemented as per the timetable set out in section three of this report.
Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact Lisa Forrest by telephone on 0191 278 8616 or email lisa.forrest@yhn.org.uk
Board 1 November 2016 Newcastle City Council Budget: Integrated Impact Assessments 2017-18 Report by Managing Director For Discussion
1.
Background information
1.1 This report is intended to provide Board with a brief summary of the possible impact of the proposed Newcastle City Council 2017/18 budget cuts on YHN services. Between 2010 and 2016, a combination of government grant cuts and unfunded cost pressures saw a cumulative £221m cut from Newcastle City Council’s (NCC) budget. During 2017-2020, NCC will need to realise a further £70m in cumulative savings, £33m in the first year. From 2020 onwards NCC will need to be essentially self-funding and will be almost entirely reliant on council tax and retained business rates to fund all council services as central government grant funding is withdrawn. It is within this financial context that the council published their draft budget proposals on 12 October 2016. The proposals set out how they hope to achieve these savings whilst still maintaining their statutory duty to provide services such as social care and environmental services. The impacts of the budget proposals for 2017-18 are outlined in summary documents called ‘Integrated Impact Assessments’ (IIA’s). An IIA is produced for each service area where budget cuts and/or reductions to service have been proposed. 2.
Summary of budget proposals that will directly impact upon delivery of YHN services.
2.1 NCC has determined that during 2017-18, efficiencies and reductions to services are needed across 14 different areas. An IIA has been produced for each of these areas. Of these, officers have identified seven where there is potential for some level of impact upon our future service delivery. YHN Heads of Service were asked to consider the proposals and provide an initial assessment of the impact for YHN. A summary of their responses is
provided in the table below: Proposals
Budget reduction
Initial assessment of impact for YHN
2017-2018 Life Chances: Commissioning for Crisis Response and Homelessness Prevention
£1.015m
Provide services for those who are homeless or at risk of becoming homeless. Provision delivered by third parties.
Reduction in commissioned homelessness services including those for 16-24 year olds could lead to an increased reliance on YPS services. Potential increased demand for general needs property from young people who are unable to sustain tenancies independently. Could also impact on over 24's. Some homeless accommodation providers may need to downsize and others may look to close hostel accommodation and adopt the Housing First Model. This could lead to YHN being approached for additional properties e.g. Changing Lives.
The Care and Protection of £624,000 Children and Young People Age 0-24 – Reduction Assessment and of 4% in Intervention workforce This service provides the council’s statutory social work function for the care and protection of children in need and children and young people at risk of significant harm The Care and Protection of £1.09m Children and Young People Age 0-24 - A Safe Place to Live Looked after children, provision of placements.
YHN currently receives £94k pa for Family Intervention work in two NCC Family Hubs. There is a risk that this funding is cut in order to realise savings. Fewer services supporting vulnerable families could lead to difficulties in sustaining tenancies. Currently YHN have the Care Leavers contract which is accommodating young people (age 16/17) into independent living from residential homes.
Could present either a potential opportunity for the extension of current two year pilot. Alternatively NCC may try and seek a cheaper provider than YHN. Continuing Care and £2.71m Support for Adults Complex or Multiple Needs Residential and nursing care, day-care, home care support, community based services, assessment functions under the Mental Health Act.
Care and Support for Adults - Early Intervention and Prevention Preventative services, Intermediate Care services and Reablement. Community based support for older people and Support for Carers.
Desire to increase use and self- reliance upon assistive technology could present opportunities for Ostara. NCC will review how overnight support is provided and how on-call services and assistive technology could be useful. If Ostara are not involved yet, they will need to be.
£0.67m
The focus is on digital routes for groups who are least likely to be digitally aware/astute. YHN staff may be asked to help tenants navigate the digital offerings, with implications for workload and skills/training. The Council's move towards mobile working in this area may help generate opportunities for more joined-up working, and better use of shared services. Some of this activity is happening already with the planned move of YHN ASW and YPS staff onto one of the existing ICT systems. This may help to enable joint efficiencies. Mobile working may have additional benefits in relation to data sharing, etc. if implemented with collaboration in mind
Public Safety and Regulation Community safety, parking, resilience planning, food safety, health and safety, trading standards, neighbourhoods and private sector housing, environmental protection and building control. Local services & waste management Street Cleansing, Refuse collection & Bulky Collection
£164,000 Reduction of 2.5% in workforce
£1.65m Reduction of 14% of workforce
Reductions in staffing in the neighbourhood and public protection team will impact the way housing related complaints are responded to and how the service is delivered.
Roll out of communal bins to areas where social housing is concentrated including Benwell and Scotswood, Elswick, Wingrove, and Westgate. Some concerns that this may lead to an increase in litter. Litter in neighbourhoods is often cited as one of the most common ASB issue that residents and tenants complain about in satisfaction surveys. A possible increase in litter could lead to increased dissatisfaction. Potential increase in graffiti due to withdrawal of graffiti services coupled with potential increase in litter could lead to an increase in disorder and increase in the fear of crime. This is based on the broken glass theory whereby the appearance of area has direct impact on behaviours. Potential additional costs due to the reform in service charges for YHN i.e. revision of costs associated with pest control SLA. We may need to revise what is paid for by YHN
In carrying out their initial assessment, Heads of Service were also asked to rank the overall impact of the proposed budgets upon their service delivery. At this stage we consider that the overall anticipated impact for all areas identified is minimal. However as the proposals are now subject to consultation there is scope for the impact upon our organisation to change. 3.
The Business Implications
3.1
Mission and Strategic Objectives: The budget proposals that have been outlined have a direct impact on our on-going ability to achieve our mission and strategic objectives. We will need to take into account any potential implications on our on-going service delivery during our annual review of our Business Strategy.
3.2
Value for money/efficiencies: Potential resource pressures outlined in section two may impact on commitments previously made by Heads of Service for efficiencies in the three year plan developed last year. These resource pressures will need to be considered as part of our business and financial planning process for 2017-18.
3.3
Financial Implications: There are no direct financial impacts for YHN set out in the IIAs for 2017-18 but there may be some financial implications as a result of additional resource pressures on YHN services. This will need to be considered as part of our business and financial planning process for 2017-18.
3.4
Resources (financial, property, technological or human): As indicated in the table provided in Section two, there is likely to be some impact upon our resources.
3.5
Impact on services/performance: The potential impact upon our services is detailed in the table provided in Section two of this report.
3.6
Outcomes for tenants/leaseholders: These budget proposals will have an impact on all residents in Newcastle. In completing their assessments Heads of Service were also asked to consider the potential impact upon tenants. Overall there is likely to be reduction in state provided support for some of those who would have received in the past. For example, vulnerable families, young people leaving care, older people with low level physical and/or mental health needs. There will be greater dependence on self-service and reliance on technology in order to reduce dependence upon NCC.
3.7
Risk (reputation, relationship): Any reduction in services that we currently provide or are associated with
does pose a potential threat to our reputation. This is particularly the case where tenants do not/cannot differentiate between the services we provide on behalf of NCC and those that are provided directly. 3.8
Environmental: No known environmental implications at this time.
3.9
Legal: No known legal implications at this time.
3.10 Equality and Diversity and Community Cohesion: The likely impact upon different groups has been detailed within each of the Integrated Impact Assessments. Where a potential disadvantage has been identified, the IIA’s set out the necessary steps to mitigate against this. 3.11 Stakeholder Involvement/consultation: In developing the IIA’s, NCC consulted with YHN and other key stakeholders. The NCC budget proposals and Integrated Impact Assessments are currently open to consultation until 31 December 2016. NCC is keen for members of the public, service users and partner organisations to comment on the proposals. 4.
Conclusion and recommendations At this stage Board are asked to acknowledge the potential impacts that have been identified.
5.
Implementation The council’s draft budget proposals are now open for consultation from 4 October 2016 until 31 December 2016. On 13 February 2017 Cabinet will agree the post-consultation budget and will recommend it to full Council. Council then meets on 1 March 2017 to debate and vote on the budget.
Background Papers Newcastle 2020: Investing in a fairer future-Main report Integrated Impact Assessments Detailed budget summary by directorate Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact Louise Horsefield by telephone on 0191 2788720 or email Louise.Horsefield@yhn.org.uk
Board 1 November 2016 Safeguarding Adults and Children annual update Report by Head of Support and Care For Information
1.
Purpose of the report
1.1
To provide the annual update to Board in relation to safeguarding alerts and safeguarding training across YHN.
2.
Background Information
2.1
We recognise that abuse can have major long term effects on all aspects of a child or adult’s health, development and well being, and in the worst cases, lead to death. We understand that everyone has a right to live their life safely and free from violence and abuse. As a housing provider we have a statutory duty to support this right.
2.2
Our approach to safeguarding is based upon the requirements outlined within statutory guidance;
Working Together to Safeguard Children 2015
No Secrets guidance on developing and implementing multi agency policies and procedures to protect vulnerable adults from abuse 2000
Care Act 2014
2.3
We also have a moral duty, the protection of children and vulnerable adults is given high precedence across the organisation. Staff and managers are dedicated to doing the right thing and making referrals when required.
2.4
Safeguarding activity across the city is coordinated by Newcastle Safeguarding Adults Board and Newcastle Safeguarding Children Board. We are represented on both the Safeguarding Adults Board and Safeguarding Children’s Board, (and their sub committees), at a senior level and our policies and procedures are aligned with the policy and procedure of both boards.
2.5
Due to the nature of our work we carry out we are in a key position to recognise a child or adult in need or suffering abuse. Our front line staff visit tenants in their homes, regularly visit estates and are involved in implementing the Sustaining Tenancies Guidance. Additionally many of our services provide housing related support and advice specifically to customers at a greater risk of vulnerability, such as older people, young people and disabled people. This provides us with an insight into people’s lives that is not accessible to other agencies and it is essential that we use this to safeguard and promote the welfare of children and vulnerable adults in our day to day work.
2.6
Our safeguarding policies and procedures are based on the four R’s approach;
Recognise
Respond
Refer
Record
2.7
As part of our approach to safeguarding we request that criminal record checks are carried out for all key posts prior to employment. We do this through the Disclosure and Barring Service.
2.8
As part of our communication and consultation approach we have developed a Safeguarding and Domestic Abuse Forum which meets quarterly and is attended by managers from all the front line services within YHN. The Forum is chaired by YHN’s safeguarding lead officer and considers good practice, changes to policy and procedures and monitors the safeguarding referrals and safeguarding training performance.
2.9
We have also developed a safeguarding and domestic abuse intranet site for staff to use which holds all the necessary documents, policies and procedures, it is regularly updated with topical news in relation to safeguarding and domestic abuse.
2.10
Board members have a responsibility to ensure that the organisation has the appropriate policies and procedures in place in relation to safeguarding and that staff are suitably trained and equipped to undertake the multi agency work necessary to safeguard vulnerable adults and children. All YHN staff undertake mandatory safeguarding training appropriate for their role. Board members also have a responsibility to undertake the necessary safeguarding training that is appropriate for their role.
2.11
On an annual basis the Newcastle Safeguarding Adults Board arrange a special meeting where each partner organisation of the Board present their self assessment of their approach to safeguarding. The event allows organisations to share learning, promote strengths and address areas for improvement. At the November 2015 self assessment meeting YHN reported on three areas of good practice and three areas for development as follows;
Good practice;
YHN has an internal Safeguarding and Domestic Abuse Forum chaired by the YHN safeguarding lead officer
YHN has policy and practices in place that are supported by the Newcastle Safeguarding Adults Team
Mandatory safeguarding training for all staff
Areas for development; Mental Capacity Act training for referring managers to improve confidence and knowledge in this important area. (By March 2016 YHN had delivered MCA training for over 90 YHN managers) Improve safeguarding information available on the YHN website for the general public. (The safeguarding information available on the YHN website for the general public was improved during the year) Risk Threshold Tool – improve staff understanding and use of the tool. (This is work in progress and will be continued during 2017) We are currently preparing our submission for the November 2016 self assessment meeting. 2.12
Annual reports are presented to YHN Board for information.
3.
Monitoring Safeguarding Referrals
3.1
The Safeguarding and Domestic Abuse Forum has been operating a secure electronic safeguarding referral system since April 2015.The system facilitates the Referring Manager to; make a safeguarding alert via the appropriate safeguarding form record referrals on a summary log sheet for monitoring retain all information relating to the referral in a secure place record acceptances of referrals from Safeguarding Adults and Safeguarding Children The information provided by the system allows a comparison between teams, offices and areas in relation to safeguarding referrals and activity across the business.
3.2
Board should note that;
the recording system went live for new cases from April 2015
staff retrospectively entered cases onto the system from July 2014, the time that manual records started
all safeguarding alerts that are referred are recorded as a YHN referral, however YHN staff are involved in many more cases from the multi agency perspective, providing information and working with tenants and customers who are subject to safeguarding and/or social care involvement
3.3
Safeguarding Adults referrals from April 2015 to March 2016. A total of 218 referrals were made across YHN, the majority from the East End housing hub, Walker hub, Care Services, Advice and Support services and the Housing and Anti Social Behaviour Team, (Hasbet). The Care Services team is responsible for older people’s services and the management of the Learning Disability developments in Walker and Shieldfield and we would therefore expect a higher number of such referrals. There are 15 business areas that have made the 218 safeguarding referrals from the 22 areas of the business represented on the Safeguarding and Domestic Abuse Forum. Some of these areas would not be expected to make many referrals but others would be expected to be similar in number to other front line services.
3.4
Safeguarding Adults referrals from April 2016 to September 2016. A total of 112 referrals were made across YHN, the majority from the housing hubs, Care Services, Hasbet and the Advice and Support service. There are 12 business areas that have made the 112 safeguarding referrals from the 22 areas of the business.
3.5
Safeguarding Childrens referrals from April 2015 to March 2016. A total of 101 referrals were made across YHN, 40 being made from the Outer West and Walker housing hubs. There are 13 business areas that have made the 101 safeguarding referrals from the 22 areas of business.
3.6
Safeguarding Childrens referrals from April 2016 to September 2016. A total of 38 referrals were made across YHN, the majority the housing hubs and Hasbet. There are 11 business areas that have made the 38 safeguarding referrals from the 22 areas of business.
3.7
The safeguarding statistics are updated monthly and are analysed on every agenda of the Safeguarding and Domestic Abuse Forum.
4.
Monitoring Safeguarding Training
4.1
Following a safeguarding training audit by NCC in 2014/15 we have changed the process in relation to managing the safeguarding training of staff and measuring its impact and effectiveness. A subsequent audit in September 2015 by NCC confirmed that the necessary changes have been made and have been effective.
4.2
An electronic learning management system is now in place to monitor all safeguarding training. This is a much more effective way to monitor that the appropriate staff have completed the mandatory requirements every three years.
4.3
There are three levels of safeguarding adults training;
Level One – in house half day training for all staff that may have to make a safeguarding alert to their line manager/supervisor
Level Two – multi agency one day training for all staff who may have to make a safeguarding referral or who through the nature of their work require a deeper level of understanding
Level Three – aimed at senior managers involved in risk assessments, protection planning and/or safeguarding to a strategic level
An e learning training package for all staff to undertake is in development. 4.4
Safeguarding Adults training undertaken during 2016/17. There are 311 staff eligible to take the Level One course during this year of which 247 have completed the course to date or are booked to attend during this year. There are 126 staff eligible to take the Level Two course during this year of which 60 have completed the course to date or are booked to attend the course during this year. There are 25 staff eligible to take the Level Three course during this year of which 10 have completed the course to date or are booked to attend the course during this year.
4.5
4.6
There are four levels of safeguarding children training;
Level One – e learning for all staff
Level Two – in house half day training for all staff that may have to make a safeguarding alert to their line manager/supervisor
Level Three – multi agency one day training for all staff who may have to make a safeguarding referral or who through the nature of their work require a deeper level of understanding
Level Four: Strategic/Operational – aimed at middle/senior managers involved in risk assessments, protection planning and/or safeguarding to a strategic level
Safeguarding Childrens training undertaken during 2016/17. There are 248 staff eligible to take the Level One course during this year of which 39 have completed the course to date or have registered on the e learning module but not yet completed. There are 209 staff who have yet to enroll on the e learing module before 31st March 2017. There are 144 staff eligible to take the Level Two course during this year of which 94 have completed the course to date or are booked to attend the course during the year. There are 57 staff eligible to take the Level Three course of which 57 have completed the course to date or are booked to attend the course during the year. There are 105 staff eligible to take the Strategic/Operational course of
which 90 have completed the course to date or are booked to attend the course during the year. 4.7
Safeguarding training is mandatory for all staff and must be renewed on a three yearly cycle by doing a repeat or refresher training, and it is up to each manager and each member of staff to make sure they have had the appropriate training. NCC’s Organisational Development Team maintains the training records and publicises the training events and contacts staff and their managers in relation to the events. The training analysis will be shared with senior management teams.
4.8
Safeguarding training has been provided for Board members although the level of training required will vary depending on role, for example Council nominated Board members receive safeguarding training in their role as elected members. Training for Board members was carried out during 2015 and early 2016 following the recruitment of Board members for Asfaleia.
4.9
An exercise is underway to reassess the level of training that each YHN role requires for both Safeguarding Adults and Safeguarding Children.
5.
The Business Implications
5.1
Purpose, Vision and Service Objectives: The Safeguarding policies, procedures and activities we have in place contribute towards the purpose, vision and the proposed specific service objective of supporting vulnerable tenants to enjoy independence.
5.2
Value for money/efficiencies: Safeguarding policy and procedure are built into existing job roles so no additional resources are required to make referrals, collect and report on data, change policy and procedures, etc. We access free resources in relation to safeguarding training.
5.3
Resources (financial, property, technological or human): We have trained key staff to act as trainers for safeguarding adults and safeguarding children training within YHN. NCC provides the safeguarding training information in relation to individual staff training undertaken. All done within the Service Level Agreement between YHN and NCC.
5.4
Impact on services/performance: Monitoring of the safeguarding performance in relation to referrals made and training undertaken will inform what changes we need to make in policy and procedure.
5.5
Outcomes for tenants/leaseholders: safeguarding policy and procedure will help us to protect children and vulnerable adults from abuse.
5.6
Risk (reputation, relationship): demonstrating that we have delivered on our safeguarding responsibilities is essential in preventing our reputation being damaged through criticism of systematic failings or legal proceedings in the event of a serious case or domestic homicide review.
5.7
Environmental: There are no direct impact environmental impacts.
5.8
Legal:we have a statutory duty to cooperate to safeguard adults and children.
5.9
Equality and Diversity: recognising children in need and vulnerable adults within our customer base is essential. The current Northgate system has the facility to identify individual households/individuals as vulnerable, front line staff regularly identify households/ individuals and flag on the system.
5.10
Stakeholder Involvement/consultation: Safeguarding Children: if we make a referral on behalf of a vulnerable child or if a Common Assessment Framework is completed then the consent of the child and their parent/guardian will always be sought. If the child is suffering significant harm or is at risk of suffering significant harm then consent is not always sought. Safeguarding Adults: if we make a referral on behalf of a vulnerable adult we will always seek consent unless they are unable to give consent, their consent is invalid or their consent is over ridden by our duty to protect them.
6.
Conclusion and recommendations
6.1 We have been monitoring safeguarding referrals more effectively since the introduction of the electronic system in April 2015 and as this has become more established in our day to day activity we have been able to identify areas of the service within YHN that are not recognising, responding, referring and recording safeguarding issues. We have been able to identify areas that were not making referrals and investigate why. This has led to the proposal to introduce a Cause for Concern into our procedures on a trial basis which will record incidents that may not have resulted in a safeguarding referral but where staff have identified an issue which needs to be responded to in relation to potential risk or harm to a child or vulnerable adult. 6.2 The introduction of the Council’s Learning Management System for YHN and the recording of safeguarding training will greatly improve our monitoring of whether staff have attended their appropriate level of mandatory safeguarding training. 6.3 Board are recommended to; 
Receive this report and make any relevant comments
Background Papers: Contact Officer If you have any questions about this report that you would like clarifying before the meeting, you can contact Martyn Burn (Head of Support and Care) by telephone on 0191 278 8599 or email martyn.burn@yhn.org.uk.
Board 1 November 2016 Delegated Decisions – Schedule of non-confidential Delegated Decisions taken between 22 September 2016 and 19 October 2016
No.
1
Directorate/ Delegated Officer
Scheme
David Langhorne Property Services
Wyndley House window replacement
Cost/ Budget provision
Second Overspend of £115,000 on originally approved £521,899.90. New Total £766,092.01 funded from Lifecycle.
Units
116
Contractor
Straightline Construction
Wards
Kenton
Board 1 November 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 next Board meeting in 2016 (or amended date subject to confirmation).
7 December 2016 Abri Trading Limited Annual Update - Abri Chair
For discussion
Asfaleia Limited Annual Update – Asfaleia Chair
For discussion
Health & Safety 6 monthly report
For discussion
Private session Governance Review – Campbell Tickell
For discussion
2
Board 2017 dates
2.1
The following dates are proposed for 2017 calendar year. Please note that we have planned for six business meetings and two strategic away days.
2.3
Tuesday 7 February 5-7pm Tuesday 21 March 5-7pm Tuesday 9 May 5-7pm Tuesday 20 June Away day 10-5pm Tuesday 8 August 5-7pm Tuesday 19 September 4-7pm AGM Tuesday 7 November 5-7pm Tuesday 19 December Away day 10-5pm
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