YHN Limited Tuesday 2 August 2016 at 5.00 pm YHN House, Benton Park Road, Newcastle upon Tyne NE7 7LX Contact Officer: Jill Davison
– 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 Interest
Items for discussion and decision 4.
Chairs items
5.
Finance and Performance report - Quarter One
1 - 34
6.
2017/18 Investment Programme
35 - 42
7.
Service and Strategy Delivery Committee annual report
43 - 48
Items for approval 8.
Minutes 21 June 2016
9.
Items for information
49 - 54
(a)
Universal Credit update
55 - 64
(b)
Repairs and Maintenance Review
65 - 68
(c)
Delegated Decisions
69 - 72
(d)
Board Forward Plan
73 - 74
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
(e)
Committee minutes:
75 - 78
Service and Strategy Delivery Committee 17 May To exclude the press and public during discussion of agenda item 9-10 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 Protect - not for publication Items for approval 10.
Confidential minutes 21 June 2016
79 - 80
11.
Remuneration Committee report
81 - 83
Date of next meeting 20 September 2016 5pm YHN House
Board 2 August 2016 Quarter one (April-June) financial and non-financial performance Report by Director of Tenancy Services and Head of Finance For discussion 1.
Background information
1.1
This reports details our financial and non-financial performance at the end of quarter one (1 April to 30 June 2016). Section two of the report is a reminder to Board of the targets for 2016-17 and how they were approved. Section three brings to Board’s attention some key financial information to be noted. Section four is a brief update on the performance against the Leazes Homes and Byker Community Trust contracts. The remaining detail of our current performance is included in appendices: Appendix one - a financial summary pack which contains the financial performance for the YHN Group. Appendix two – 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 are the recovery actions we are taking for our targets that are not on track.
2.
The Targets
2.1
Our targets for this year were set out in detail in the Delivery Plan (approved by Board in March 2016). A set of 43 key business targets have been developed as part of the Delivery Plan. They are designed to give assurance to key stakeholders (NCC, YHN Board and tenants) 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);
2.2
Operational targets reported to NCC officers (covering services set out in the Management Agreement), and 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. The table below sets out our performance broken down to show a summary by target status for the targets reported in the performance pack (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)
16
7
0
4
Operational targets (reported to NCC)
13
0
0
3
For each target we have created a tile (a graphic) which shows:
Performance this year; Performance last year; The target we are aiming for, and A short summary outlining the key pieces of information for the particular target.
The table in appendix three lists the recovery actions for the targets which have a status of amber at the end of quarter one. We are members of the housing benchmarking group HouseMark. They publish benchmarking data for the sector on a quarterly basis, but this is not available until the end of August. 3
Key financial information Financial performance during quarter one is largely positive, but there are some issues to make Board aware of.
3.1
Telecare Update (“Ostara”) Background The 2016-17 Telecare budget was based upon estimated customer retention rates following the removal of supporting people funding, and a review of the service offer and pricing structure. As an interim measure it was agreed that YHN would fund previous supporting people clients until the end of quarter one to provide the service with an opportunity to contact all clients with a view to improving customer retention numbers.
Additional funds were also made available to resource the customer retention activities adequately, funding additional staffing and funds for engagement activities. The current budget assumes customer retention ratios of 95% of clients who previously paid for the service from April 2016, and an assumed conversion rate of 85% of previously funded clients from June 2016. Current Financial Position Whilst the current financial position presents a positive picture, this predominately relates to vacancies which are being held pending the outcome the of all the customer retention activities. There are also underspends relating to the temporary resources provided to the service. However income targets to the end of June have not been met due to the volume of customers who have left the service since the start of the financial year. Pending Pressures During June, a review of customer retention rates was carried out together with an assessment of the financial impact. The following was identified:
Over 700 of the 2015-16 client base had left the service as a result of reasons other than the removal of funding/price change; The service attracted over 250 new customers throughout this period through standard referral processes and marketing activities; Conversion rates were at 90% for previously non-funded customers and 85% for previously funded customers; and There were around 600 customers who were still to be contacted, or had not yet informed us of their decision.
Recent information regarding customer retention has been gathered and revised forecasts are being prepared, however it is still too early to monitor the overall in year financial impact. The analysis carried out in June indicated that the current budget would be exceeded by £100k, assuming those customers still to be contacted followed a similar take up ratio to those who have responded to date. This would however be offset by any vacancies that continue to be carried throughout the year. In addition to the above cost pressures there are some unknown factors at this stage, namely:
Stock write off from equipment returned before expected from customers that have left the service; Bad debt rate for customers paying for the service for the first time; and Potentially lower levels of direct referrals from Social Services, which in the past have covered the natural turnover in customer numbers.
3.2
Repair and Maintenance Spend Expenditure is currently £75k over the budget to date to period 2. The large proportion of the overspend relates to a high responsive repair expenditure. There were a large number of repairs booked off in April in particular. It is not expected that these high levels will continue, and some correcting actions are contained in Appendix three.
4
Leazes Homes and Byker Community Trust contracts
4.1
We have also 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 to their Boards during August and September respectively on our performance during quarter one.
4.2
The table below shows a summary by status of each target reported to Byker Community Trust and Leazes Homes. Where a target is reported as amber we have provided a short summary of the recovery actions we will undertake to improve performance.
Byker Community Trust Leazes Homes
Green 9 2
Amber 4 4
Red 0
Blue 1
Byker Community Trust recovery actions: Target Former tenants rent and service charge arrears not to exceed £396,949, by 30/09/2016
Q1 Recovery actions performance £395,362 Although the former tenants rent and service charge arrears has not currently missed the target it is likely by 30 September 2016 that this target will not be achieved. The rise in former tenant arrears is due to tenants terminating their tenancy and leaving rent arrears. However the reasons for terminations are not within YHN’s control.
Average re-let time for standard voids not to exceed 24 days by 30/09/2016 The void rent and service charge loss amount not to exceed 1.04%
34 days
1.29%
There has been an increase in the number of terminations this quarter which has increased the workload for the YHN officers managing BCT’s accommodation. The improvements outlined in appendix one will also be available to YHN officers working in Byker, though there is limited time for the full effects of these changes to improve these two targets.
Leazes Homes recovery actions: Target Current rent and service charge arrears not to exceed £74,550 by 31/03/2017 Average arrears per property not to exceed £129 by 31/03/2017
Average number of days to complete a repair not to exceed 5 days during 2016-17 Average relet time for standard void properties not to exceed 25 days by 31/03/2017
Q1 Recovery actions performance £112,121 This target is reported as amber as current rent arrears £2,953 above the profile (which shows the expected fluctuations in rent arrears during the year). However the profile for rent arrears does not include the impact of arrears in newly opened accommodation as the profile was based on the arrears trend from last year. The recovery actions for this target are the same as those listed in appendix one. Performance for this target has been skewed by two voids which took a long time to relet. Both of these voids were allocated via the Supported Housing Allocation Panel. The complex care needs of tenants housed this way means properties take longer to relet.
5.
The Business Implications
5.1
Mission and Strategic Objectives: The purpose of this report is to allow board to ensure YHN is working appropriately towards all strategic objectives.
5.2
Value for money/efficiencies: This is covered in appendix two of the report.
5.3
Financial Implications: This is covered in more detail in appendix two of the report.
5.4
Other Resources (property, technological or human): Appendix two shows the breakdown of income and expenditure by contact and service area. Appendix three 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.
5.5
Impact on services/performance: This monitoring report allows Board and staff to drive improvements to performance. We have set out in appendix one the improvement actions for the performance targets with an amber status at the end of the quarter.
5.6
Outcomes for tenants/leaseholders: The purpose of this report is to allow board to ensure YHN is delivering against its strategic objectives which are focussed on outcomes for our landlords, their tenants and the neighbourhoods they live in.
5.7
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).
5.8
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 one.
5.9
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.
5.10 Equality and Diversity and Community Cohesion: No issues directly arising from the performance reported during quarter one. When we have completed the tenant survey (STAR) we will have analysed the tenant satisfaction information by different demographic characteristics and report any relevant findings to Board in future performance reports. 5.11 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. 6
Conclusion and recommendations
6.1
Board are asked to:  
Comment on performance, and Refer any areas of performance that require additional scrutiny to Service and Strategy Delivery Committee.
7.
Implementation
7.1
Board will receive the report for quarter two (2016-17) at the November Board meeting.
Background Papers - YHN Delivery Plan (March 2016) Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact Lisa Forrest, Head of Finance by telephone on 0191 278 8616 or email lisa.forrest@yhn.org.uk or Louise Horsefield, Head of Business Strategy by telephone on 0191 278 8720 or email louise.horsefield@yhn.org.uk
Group Finance Reporting Pack Quarter 1 April to June 2016
Contents
1 Executive Summary 2 Financial KPIs 5 Group I&E summaries - year to date - by category - by service - by contract 6 Group Balance sheet summary 7 Group forecasts by directorate and reserves forecast 8 Company summaries - year to date - YHN - Asfaleia - Abri Trading
Executive Summary Comments: The Group is £214,000 ahead of budget at Quarter 1. Additional income has been earned in YHN from new contracts, with minimal new expenditure required: +£100k approx. Contingency budgets have not been required to date. +£90k.
Overhead costs charged to subsidiaries to date is lower than expected. This has contributed to creating more profit in Abri Trading and Asfaleia than planned (£+130k additional profit to date). This may change during the remainder of the year as redundancy costs are considered. Group balance sheets are in a healthy position with bank balances and net current assets high.
Financal KPIs
F1 - Bank balances
£10.00
F2 - Profit by company inc tax liability
1,000
£8.59
£8.00
800
£6.00
773
£2.96
Actual Budget
600
Actual
Target
439
£4.00 400
£2.00
£0.00 -£2.00
F3 - Trading Surpluses
£0.98
200 1
2
3
4
5
6
7
8
9
10
11
12
0
£0.84
-£4.00 -200
-£6.00
-145
-164
-400
-£8.00
Bank
NCC current account
Total
YHN
ASFALEIA
ABRI
ABRI (Palatine)
1
2
3
4
5
6
7
8
9
10
11
Comments:
Comments:
Comments:
NCC continue to carry out most of the day to day banking on behalf of YHN Group.
Profits in Abri overall are £294k so far this year offset by losses of -£164k in Asfaleia.
Progress against target is ahead of plan to date.
The current account with NCC is now in postive territiory, due to prompt invoicing on our part. The bank balance remains at a high level. Overall the cash position for YHN is increasing steadily.
Higher surpluses have resulted from the fact that less overhead costs have been charged from YHN so far this year. This additional profit may result in a corporation tax charge in the year.
The main reason is lower than expected overhead allocations into the service.
12
The warehouse budgets overall are operating to plan.
Financial KPIs
F4 - Housing management cost per property
F5 - Cost per standard void 2,000
£390.00
F6 - Cost per major void
£7,000
1,800
£385.00
£382.60
1,600 1,400
£381.68
£380.00
1,200
£6,000 £5,000 £4,000
1,000
£375.00 £370.00
£371.62
800
£3,000
600
£2,000
400 200
£365.00
-
£1,000 £0
£360.00 1
2
3
4
5
6
7
8
9
10
11
12
Comments: Housing management cost per property is below the target at Q1 and is therefore green. There has been a steep increase in P3 as YHN took on some additional costs from NCC (a late change from the disaggregation process). These costs have been covered in full from by an increase to the management fee. Overall, the item above, the 1% pay award and increases to NI costs have been balanced by staff reductions implemented prior to year end to keep the cost per unit within target levels.
Comments:
Comments:
The average cost of a standard void is currently under target by £354 per void.
The average cost of a standard void is currently slightly above target by £20 per void only so we are recording as green at this early stage of the year. There are some high value voids contained in these numbers which will be investigated to see if any lessons can be learned.
Spend managed on behalf of NCC
F7 - R+M contract spend
F8 - HRA Investment programme
£1.80
F9 - Lifecycle programme
16,000
60,000
54,654
£1.60
5,000
19,872
20,000
14,000 50,000
£1.40 £1.20
12,000
£1.00
10,000
18,000 4,000
40,000
£0.80
8,000
30,000
16,000 14,000
3,000
£0.60
12,000 10,000
6,000
£0.40 £0.20
20,000
2,000
10,000
1,000
£0.00 Responsive Repair
Voids Actual to Date
Gas Servicing
M&E Cyclical
District Heating
8,000 6,000
4,000 2,000
4,000 2,000
0
0
Budget to date.
0
0
Comments:
Comments:
Comments:
Periods 1 and 2 of the R&M contract have been charged by BCE. The variance on these claims is £180k over budget.
The current budget allocation for the 2016-17 HRA Investment Programme is £54.7m. This means we are "over-programming" on the £52.9m Cabinet approval by £1.8m. The programme is being closely managed by the Assets and Regeneration team with the ability to reduce future spend if necessary. The Lifecycle block is the main reason for the current higher commitment figure. Roofing/ bathroom variations are greater than originally specified.
The 2016-17 Cabinet approval for the Lifecycle block is currently £16.6m. The current projection is for a £19.9m Lifecycle programme. Roofing is £2.0m over programmed while bathroom replacements forecast a £1.5m overspend. This is due to on-site variations on both schemes. As in previous years, the full budget allocation was not expected to be spent due to tenant refusals and careful scheme management.
An underspend on voids to date onlly partly compensates for a high number of responsive repairs completed in the first two months of the year. However, this is based on two periods of data and the situation will be carefully monitored as the year progresses.
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 Staff Turnover 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
18,043 2,723 9,053 5,944 2,452 1,098 54 1,069 16 40,452
4,511 820 2,348 1,486 613 165 0 267 4 10,215
4,549 867 2,388 1,438 586 147 0 481 2 10,458
39 47 40 (48) (27) (18) 0 213 (2) 244
(26,543) 1,000 (1,415) (924) (3,043) (1,604) (2,136) (3,717) (82) (361) (38,826)
(6,472) 250 (339) (227) (661) (401) (528) (929) (21) (90) (9,418)
(6,371) 0 (311) (242) (675) (398) (537) (894) (18) 0 (9,446)
100 (250) 28 (15) (14) 3 (9) 35 3 90 (29)
(292) (292)
(73) (73)
(73) (73)
(0) (0)
0
0
0
0
1,334
724
939
215
Manager comments: Income has been bolstered by additional work carried out for NCC and other partners - for example managing refugee schemes and staffing new extra care schemes. Staff costs have increased to deliver these new areas of work, but overall a contribution to overheads is being made.
The overall picture is steady with only minor variances to budget. The depreciation figures is largely an estimate as work is done to improve reporting from the NFS furniture database.
Given this uncertainty, it is too early to provide an estimate of corporation tax liability, so this has been omitted from the figures.
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
Manager comments:
3,054 885 (4,557) (277) (273) (28) 5,474 4,278
859 226 (1,123) (61) (195) (13) 1,374 1,068
1,004 239 (1,120) (49) 225 (32) 1,332 1,601
145 14 3 12 420 (19) (42) 533
Business services (NFS and Palatine) is ahead of plan by +£145k. Overall the service is slightly behind its income targets (1%) but this is offset by operational underpends. Overhead costs charged to the service are lower than expected at this stage.
1,405 (120) 47 (979) 352
348 (29) 30 (247) 101
351 (29) 29 (252) 99
3 (0) (1) (5) (2)
Care and Support is ahead of plan as income from refugee and extra care schemes are being managed within budgets +£306k. Overheads charged into this service are lower than budget (£110k)
(690) (1,107) (1,042) (2,395) 42 2,414 (338) (179) (3,296)
(154) (270) (260) (517) 15 849 (63) (44) (445)
(133) (269) (237) (496) 10 460 (51) (42) (761)
21 1 23 21 (5) (389) 11 1 (316)
Central Provisions In line with expectations, +£90k of unspent contingency budgets is balanced against -£250k of a central staff turnover budget. Total: -£160k. Lower overhead charges than planned have created a variance of -£240k.
1,334
724
939
215
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
Group I&E Summary - by Contract Year to date
£000s
£000s
£000s
£000s
Annual Budget
YTD Budget
YTD Actuals
YTD Variance
FC comments
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
1,177 562 135 37 (37) 791 334 3,428 601 10 (29) (333) (41) 6,635
294 140 33 13 (2) 193 78 935 150 2 (7) (13) (9) 1,807
270 149 34 14 3 182 96 1,010 192 200 1 (64) (35) 2,051
(24) 9 0 1 5 (11) 18 75 42 197 8 (51) (25) 243
2,580 49 315 18 0 (708) 2,255
645 21 87 5 0 (177) 581
628 (110) 95 7 2 (115) 507
(17) (131) 9 1 2 62 (74)
164 354 243 40 222 (313) (94) 59 674
41 88 61 15 56 (233) (24) 30 34
49 115 69 37 50 (143) (47) 30 160
9 26 8 22 (6) 90 (23) 0 127
(7,939) (292)
(1,626) (73)
(1,706) (73)
(81) (0)
1,334
724
939
215
Abri External Rentals Palatine Byker - 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 Finance Costs Group total to reserves
YHN Income and Tenancy variance is caused by additional staff working on Welfare Reform implementation. Other YHN contracts includes refugee schemes and other work carried out on behalf of NCC. 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 (although this may be revised). Asfaleia The Telecare service area is underspent currently as some vacancies are being held pending the success of the repricing and rebranding exercise. +£90k. The success of the customer retention work in Telecare will have a bearing on the future profitability of this service. Some additional costs are being incurred over 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 Invoices not yet paid Bank and petty cash
Income in advance VAT Creditors Accrued Expenditure NCC current account Accounts Payable
Loans
Net Assets Reserves
Total reserves
Opening Reserves Surplus/(loss) for the year
£000s Current 12,517 103 (7,439)
£000s Opening 12,012 84 (6,545)
£000s Change
5,181
5,551
(370)
573 1,955 (32) 539 1,593 5,786
638 909 (32) 552 5,514 7,770
(65) 1,046 (0) (13) (3,921) (1,984)
10,414
15,352
(4,938)
(2,752) (1,377) (2,055) 2,814 (117)
(16) (1,610) (1,814) (6,157) (138)
(2,736) 233 (242) 8,970 21
(3,487)
(9,734)
6,247
(6,500)
(6,500)
0
5,607
4,668
939
505 20 (894)
4,668 939
4,668 0
0 939
5,607
4,668
939
Comments (FC) Fixed Assets Assets and Depreciation numbers are largely estimates due to data limitations in the NFS stock system. Bank The bank balances have reduced by £1.99m since the start of the year, mainly due to the payment of a £2.1m VAT bill Debtors and Creditors Large sales invoices to NCC at March are now settled, bringing the 'Invoices not yet paid' and 'NCC current account' amounts to more normal levels.
Reserves Surplus for the year so far of £0.94m is added to the opening reserves of £4.67m to give total reserves of £5.61m
YHN Company Income and Expenditure Annual Buget
Operating Income Operating Expenditure Finance Costs
YTD Actuals
Variance
41,938
10,696
10,740
44
(40,495)
(9,853)
(9,902)
(49)
(131)
(33)
(29)
3
0
0
0
0
1,312
810
809
(2)
Corporation Tax YHN Total
YTD Budget
Balance Sheet Current
Fixed Assets Bank and Cash Other Current assets Current Liabilities Loans
6,146 3,567 9,027 (7,883) (6,500)
Net assets
4,358
Opening reserves YTD actuals Reserves
3,549 809 4,358
Comments (FC): Overall YHN is generating more income from new contracts, and is only incurring a marginal level of new spend to achieve this. The balance sheet is in a healthy position. Current liabilities and assets have each increased by ÂŁ2.2m each for this monthly only, as some large invoices were raised a few days too early to NCC. Bank balances remain in a comfortable position.
Abri Trading Ltd Income and Expenditure Annual Buget
Operating Income Operating Expenditure Finance Costs
YTD Budget
YTD Actuals
Variance
9,184
2,305
2,231
(74)
(8,370)
(2,084)
(1,895)
189
(152)
(38)
(42)
(4)
0
0
0
0
662
183
294
111
Corporation Tax YHN Total
Balance Sheet
Comments (FC): Current
Fixed Assets Bank and Cash Other Current assets Current Liabilities Loans
2,787 1,672 2,509 (2,389) (3,707)
Net assets
872
Opening reserves YTD actuals Reserves
578 294 872
Sales are down against the plan in Palatine, but better than budget for other NFS sales.
So far this year, the level of overheads to be charged into Abri Trading has been less than expected. Overall, budgets are ahead of target by ÂŁ111k and there is a healthy balance sheet with current net assets of ÂŁ1.79m
Asfaleia Ltd Income and Expenditure Annual Buget
Operating Income Operating Expenditure
YTD Actuals
Variance
6,170
1,433
1,439
6
(6,801)
(1,700)
(1,601)
99
(9)
(2)
(2)
(0)
0
0
0
0
(640)
(269)
(164)
105
Finance Costs Corporation Tax YHN Total
YTD Budget
Balance Sheet
Comments (FC): Current
Fixed Assets Bank and Cash Other Current assets Current Liabilities Loans Net assets Opening reserves YTD actuals Reserves
147 547 1,799 (1,924) (193) 377 541 (164) 377
Income and expenditure is proceeding largely to plan for the operational budgets, although there is remains degree of uncertainty over the Telecare budgets. Income targets have been profiled to be lower through the first 3 months as the new service is introduced to customers. Higher staffing costs (overtime) may also result from the intensive work the team have carried out to try to retain customers. The underspend shown is due to the fact that overhead costs charged from YHN to Asfaleia have been lower than planned. There may be higher charges in the year if staff redundancy costs are incurred. Current assets and liabilities are high, as the quarterly intra-group charges are now due.
Appendix two YHN Business Strategy- sickness
Tenant Employability
Recovery actions for these targets are listed in appendix three
Reduce sickness levels to 7.5 days per staff member by 31 March 2017 (Target 40)
51 people in our employability programme move onto education, employment or training by 31/03/2017 (Target 26)
YHN Board
To date ten customers have progressed into employment. Six customers did not progress.
There has been a small decrease in the rolling 12 month figure (from 8.38 in April to 8.33 in June).
Five resigned, one was dismissed, of the five who resigned four were in subject to disciplinary process.
So far there has been 2.21 days sickness (compared to 2.31 days sickness in the same period last year). In order for this target to be met we are reliant on having no more than 0.58 days sickness per month. Last year, we only achieved a sickness score of 0.58 or below for three months. Rolling 12 mth: 8.33
YHN board NCC Cabinet
Target: 85.0% Target: 7.5 days
EOY: 8.34
63%
EOY: 80.7%
YTD: 2.21
Oversight of Repairs and Maintenance Repairs take 6 days to complete during 31/03/2017 (Target 3)
Oversight of Repairs and Maintenance Perf. board Local offer
Performance above the target and higher than last year. Improvements in monthly performance since April 2016
Spend no more than ÂŁ20.57m on repairs and maintenance during 31/03/2017 (Target 1) See Group Finance Reporting Pack Tile F7 (appendix two)
YTD: 6.34 June: 5.81
EOY: 6.17
6.00
Key Current performance
Target
performance last year
projected performance
YHN board NCC Cabinet
Housing Management Plus- Lettings
Housing Management Plus-Lettings
Recovery actions for these targets are listed in appendix three
The average re-let time for all void properties not to exceed 53.3 days by 31/03/2017 (Target 9)
YHN board NCC Cabinet Local offer
Achieving the target. All offices except Walker (67 days) below the target.
The average re-let time for non-W alker multi storey void properties not to exceed 28 days by 31/03/2017 (Target 10)
YHN board NCC Cabinet
Currently 0.5 days above the target.
53.3 32.0
41.4
28.5
28.0
40.9
Housing Management Plus- Lettings
The turnover of properties not to exceed 2,210 (8.5%) by 31/03/2017 (Target 11)
Housing Management Plus- Lettings YHN board NCC Cabinet
The void rent loss amount not to exceed 1.26% (ÂŁ1.40m) by 31/03/2017 (Target 12)
YHN board NCC Cabinet Local offer
Current rent loss equates to ÂŁ439, 928. Performance is 0.26% higher than void rent loss target. Void rent loss reduced by 0.1% over the peiod, while void rent loss for Walker high rise increased to 18.63% (+0.13% from Period 2).
29 terminations more than the target. 65 fewer terminations than the same period last year.
Excluding low demand stock in Walker high rise void rent loss is 0.98%.
2210
1.52%
1.26%
357 581
Oversight of the Capital Programme No properties (0%) fail to meet the Decent Homes Standard by 31/03/2017 (Target 5)
Oversight of the Capital Programme YHN board NCC Cabinet
Currently all properties can be counted as Decent. This would increase to 4.6% if were not able to deliver any required works on the relevant properties by the end of March 2017. Since P1 ongoing survey feedback has clarified boiler and kitchen stock condition information. As a result, the number of potentially non decent properties has reduced from 6.34% in P1 to 4.6% in P3.
Increase the SAP rating (which measures the energy efficiency of homes) for council properties to 68.58 by 31/03/2017 (Target 6)
YHN board NCC Cabinet
Improvements in the SAP score have come from the solar panels and fuel switch programme which were completed last year.
Q1: 68.69
68.58 EOY: 68.26
4.6% 0.0%
Housing Management Plus- Income and Estates
Collect 99.22% (ÂŁ110.69m) of rent by 31/03/2017 (Target 14)
Housing Management Plus- Income and Estates
YHN board NCC Cabinet Local offer
0.11% above target.West End has the lowest collection rate. Increased collection, compared to last month, by 1.41% (the highest increase of all offices).
Evict no more than 78 tenants for rent arrears by 31/03/2017 (Target 16)
YHN board NCC Cabinet
Thirteen evictions during the period. This is below the projected number (20 tenants) that could be evicted, if the year end target is achieved.
78
99.22% 98.29%
7
13
Housing Management Plus- Leasehold
Housing Management Plus- Young Peoples Service
Manage all Right to Buy applications within prescribed timescales during 2016-17 (Target 22)
Perf. Board
100% of applications have been managed to the prescribed timescales. There have been 143 admittance and 86 offers sent out since April (total = 229) This is higher compared to the same period last year, when 78 admittance and 55 offers were sent out (total = 133). 100%
Successfully sustain 98% of all tenancies that Young Peoples Services support during 31/03/2017 (Target 23)
YHN board Perf. Board
Achieving target. One tenancy out of 88 tenancies was not sustained during quarter one.
EOY: 100%
98.9% 98.0%
Housing Management Plus- Advice and Support
Successfully sustain 98% of all tenancies referred into the Advice and Support during 31/03/2017 (Target 24)
Housing Management Plus- Anti-social Behaviour
YHN board Perf. Board
Achieving target. Two tenancies out of 1,014 tenancies referred to Advice and Support were not sustained during quarter.
Resolve 96% of anti-social behaviour cases investigated during 31/03/2017 (Target 17)
Achieving target- 737 ASB cases investigated so far this year- nine have been unresolved (two in April, two in May and five in June).
98.8
99.80%
98.7 96.0
99.27% 98.00%
YHN board NCC Cabinet
92.8
Tenant Engagement 68% of customers who believe that YHN listens to their views and acts on them by 31/03/2017 (Target 25)
YHN Business Strategy- overall customer satisfaction Perf. board Local offer
No data to report as survey has not been conducted- Expecting to gather STAR data in Sept-Nov 2016 No benchmarking information.
87.5% customers who are satisfied with the service provided by YHN by 31/03/2017 (Target 34)
YHN board Local offer
No data to report as survey has not been conducted- survey will be carried out between Sept and Nov 2016 No benchmarking information.
87.5%
68% 66.70%
85.20%
YHN Business Strategy- satisfaction with local neighbourhood
80% of customers who are satisfied with the condition of their neighbourhood by 31/03/2017 (Target 33)
YHN board Local offer
No data to report as survey has not been conducted- survey will be carried out between Sept and Nov 2016 No benchmarking information.
YHN Business Strategy- Digital Inclusion
Increase the number of transactions completed online to 93,450 by 31 March 2017 (Target 37)
YHN board
There were 5462 more online transaction than the same period last year. This is due to the number of payments made online which increased by 2700 and online account access increased by 1300. 93,450
80%
61,790
79.00%
20,112
YHN Business Strategy- Staff Engagement
58% of staff are feel engaged with YHN as an employer by 31 March 2017 (Target 41)
Tiles for these targets are in appendix two YHN Business Strategy- Cost per property See “Group Finance Reporting Pack” tile F4 YHN Board
No data to report as survey has not been conducted- Survey will take place in Autumn 2016
58%
YHN Business Strategy- Net Surplus from NFS and Palatine See “Group Finance Reporting Pack” tile F3 YHN Business Strategy- Average cost of a void repair for standard voids See “Group Finance Reporting Pack” tile F5 YHN Business Strategy- Average cost of a void repair for major voids See “Group Finance Reporting Pack” tile F6
Appendix three Recovery actions for targets with a status of amber at the end of quarter one Target
Recovery actions
Date we expect to see improvement in performance
Target 3: Repairs take 6 days to complete by 31/03/2017
A working group from YHN and Building and Commercial Enterprise (BCE) have identified two areas of underperformance to tackle. These are:  unallocated repairs - where a repair has been requested but an operative has not been assigned (a small number of repairs have had a disproportionate impact on duration of repairs). These are checked on a daily basis by BCE managers.  multi trade repairs - improve how different trades work with each other to successfully complete a repair. We are using the contract coordinators to allocate the different trades needed for multi trade jobs.
Performance has already begun to improve since the start of the year. We anticipate performance will continue to improve from August onwards.
There is a six point action plan established to address these points. It is expected that these actions will be completed by 31 July 2016. Target 10: The average relet time for non-Walker multi storey void properties not to exceed 28 days by 31/03/2017 (target 10)
A pilot of the new approach to managing transfers (where a tenant moves from one council owned property to another) begins in August. Reducing the number of tenants who wish to move, where there is no housing need, will help reduce turnover, the void re-let time and rent lost from voids, decrease the amount of money spent on void property repairs and support tenants to remain in their home.
We expect to see improvements from September
Target 11: The turnover of properties not to exceed 2,210 (8.5%) by 31/03/2017 Target 12: The void rent loss amount not to exceed 1.26% (£1.40m) by 31/03/2017
Target 26: 51 people in our employability programme move into education, employment or training by 31/03/2017 (target 26)
The review of the void end to end process concluded in 2015-16. When this work is implemented we expect to see an improvement in the re-let period for most properties, which in turn will reduce the void rent loss in 201617. Planned improvements include: • The introduction of new software (called 'Task Manager') to reduce waste in our processes • A shorter sign up process so people can take up a home sooner • A flexible property standard to reduce any unnecessary void spend • The introduction of a new customer website and improved marketing of homes to increase demand This year there will be 45 Your Homes, Your Jobs recruits, and 15 apprentices. Previously, the split was 30:30 but this was changed as there had been more success with the Your Homes Your Jobs programme.
A large group of apprentices and Your Homes Your Jobs Trainees are due to finish in September and indications are that all will progress.
For the next intake of apprentices, we will run an assessment centre to give us an early indication of the management support the apprentices need.
The next apprentice intake will incorporate the revised recruitment process so it is therefore anticipated that this will have a positive impact on the retention and progression of apprentices for the remainder of 16/17.
Target 40: Reduce sickness levels to 7.5 days per staff member by 31 March 2017
Levels of sickness are not decreasing at the rate that is required in order to achieve our year-end target. We know there is a particular concern with the levels of absence for mental health, depression or anxiety. To address this the Strategic HR Manager is: Examining job design and local working arrangements, management arrangements and leadership of teams; Liaising with the operational HR team to scrutinise the consistency of absence management casework in YHN, and reported employee relations casework; Scrutinising the spend on Occupational Health services, and Relate, to identify where in YHN there may be patterns of concern; Working with the YHN Health and Wellbeing group to develop an online learning module to support staff, this will be piloted in September; Examining the evidence (or not, as the case may be) of the use of one to one meetings and performance management data, to establish if there are patterns of concern or inconsistencies which need to be addressed.
It is anticipated that the effects of this work will be seen from October this year.
Target 1: Spend no more than £20.57m on repairs and maintenance during 31/03/2017
Data is only available for April and May so it is difficult to make an accurate judgement of performance against this target. A large proportion of the year to date overspend is from the responsive repair budget.
We anticipate performance will start to improve from July onwards
There will be ongoing monitoring of R&M spend from the Property Maintenance and Finance team throughout the year. This will ensure that we are able to quickly tackle and ongoing overspends. From May 2016 YHN started employing Contract Coordinators (who used to work for Building and
Telecare update
Commercial Enterprise). It is expected that these staff will help manage the spend on the R&M contract and improve customer service. To mitigate the pending cost pressures for the current year the following actions are being taken:
The service is continuing its phase 2 cost reduction exercise as part of their service review; A stock take is planned for August to carry out an assessment of stock that may need to be written off as a result of customers leaving the service; Discussions are ongoing between the service, YHN Income section and corporate billing to manage bad debt; Continued monitoring of client retention rates; Ongoing discussions with key partners regarding customer referrals to maximise opportunities for new clients; and Further marketing activities to be started in August
Work is underway now to respond to these pressures and Asfaleia Board is receiving a more detailed report about the service in September
Board 2 August 2016 2017/18 Housing Investment Programme Report by Director of Property Services For decision
1.
Background information
1.1
In December 2012 YHN Board approved the provisional investment programme which detailed the proposed expenditure across a number of budget blocks over a four year period. It was agreed an annual report would be presented to Board to provide an update on the programme and agree a rolling four year programme. The last update report was presented to Board in June 2015. Our Investment Programme continues to be made up of previously agreed budget blocks which enable us to deliver the priorities within the Asset Management Strategy (AMS). The AMS was approved by Board in November 2014 and Cabinet in January 2015.
1.2
Service and Strategy Delivery Committee received a report in July which provided an update on the outturn for the 2015/16 programme, the challenges we faced during 2015/16 as a result of the government’s announcement to reduce social rents by 1% and the impact this has had on the programme. The report also detailed progress on the 2016/17 programme.
1.3
It was anticipated this Board report would seek approval for the 2017/18 programme and provide information on the rolling four year programme; however, there are some further challenges which may impact on the programme as a result of Housing and Planning Act 2016. This has resulted in the need for a two stage approval process for the 2017/18 programme and the need to carry out further work to prepare the rolling four year programme.
2.
Future challenges
2.1
Housing and Planning Act 2016 There is likely to be further pressure on the Housing Revenue Account (HRA) as a result of the Housing and Planning Act. Some key initiatives which could impact on the Investment Programme are the financial levy to the government linked to the councils higher value homes for rent, pay to stay and the alignment of housing benefit to Local Housing Allowance levels. We await further details on how these will be implemented. Once details are known it is likely to result in another review of the programme in order to make the necessary savings.
2.2
One For One (1-4-1) receipts Within the new build programme there is a requirement to spend 1-4-1 receipts. The qualifying spend required is based on receipts we’ve already received (detailed in the table below). This spend in the next three years is required to prevent the HRA having to pay the unused 1-4-1 receipts over to Department for Communities and Local Government (DCLG). Required spend - £ 16-17 17-18 18-19
1,989,226 1,040,622
Joint working with YHN and NCC officers continues to monitor this to try and avoid having to pay back these receipts. 3.
2017/18 and the rolling four year programme
3.1
The Board report in December 2012 outlined the key principles to be applied when allocating budgets within the Investment Programme. The budget blocks and the principles have been used when delivering the programme to date and continue to be used to plan the future programme.
3.2
It is anticipated that the 2017/18 programme will not be approved by Cabinet until much later this financial year. This is to enable both YHN and NCC staff to gain a full understanding of the Housing and Planning Act and the financial implications of this. This, however, creates a risk in terms of programme delivery and achieving targets. It is therefore proposed to adopt a two stage approval process where YHN’s Board and NCC’s Cabinet provide approval initially for the essential work (lifecycle replacements, void improvements, health and safety work and landlord obligations) and also any expenditure which relates to work already started in 2016/17 but which is programmed and committed into next financial year. This two stage approval approach will not remove all risks associated with the delivery but it will be reduced.
The table below details the essential expenditure:
Budget block heading
2017/18 £000
Comments
Lifecycle
17,500
Lifecycle other
3,970
Environmentals
1,342
Regeneration
5,432
Voids, internal and external elemental improvements, reroofing. Health and Safety and landlord obligations. Blakelaw 165 estate – (will start in 2016/17 but the project will continue into 2017/18) North Kenton new build – on site (overall funding approved but this project continues into 2017/18). Ferguson Lane bungalows – will start in 2016/17 and continue into 2017/18 Sheltered housing remodelling – this will enable the next priority block to be progressed – requires a long lead in time for rehousing hence the need for an early approval.
Total – essential expenditure.
28,244
Overall 2017/18 budget.
37,386
3.3
The remainder of the 2017/18 programme would then require approval later this financial year once the financial implications of the Housing and Planning Act are understood. At this stage we should also understand the implications on the programme moving forward and how this will impact on the following four years. The remaining £9.1m includes: Spend to save which delivers priorities identified by our Property Maintenance team where a planned approach offers better value for money than one off repairs. Energy efficiency and fuel poverty priorities. Environmental improvements and estate remodelling – this covers improvements such as new fencing, driveways and remodelling of estates to reduce anti-social behaviour. Participatory budget – The work delivered through this budget is based on what our tenants and leaseholders tell us is important to them. Communal upgrades to blocks. This budget improves the communal areas of both multi storey blocks and mid and low- rise properties. New build – this covers new build and also re-provision of poorly performing stock. It is likely this will need budget approved during the second stage of approval, however delays in approval could result in the HRA repaying the 1-4-1receipts. Sheltered housing remodelling – we have included one block in the essential work but ideally our programme would like to deliver two blocks per year.
4.
The Business Implications
4.1
Mission and Strategic Objectives: This report links with our strategic objectives of:
4.2
Keep the housing stock decent, and neighbourhoods clean and safe. Collect the rent and let properties efficiently. Promote health and wellbeing and support vulnerable people to enjoy independence.
Value for money/efficiencies; The continued drive for efficiency will help to maximise the amount that is available for the priorities outlined. Our approach is contained in the YHN Value for Money Strategy.
4.3
Resources (financial, property, technological or human): Financial – Adopting the two stage approval process for 2017/18 enables us to maintain delivery and minimises any risk to the self-financing/debt repayment model for the HRA. Decisions on the remainder of the 2017/18 programme and the rolling four year programme will be taken once the financial implications of the Housing and Planning Act are known. This will ensure the overall expenditure is within the borrowing cap. Continuing to plan for a four year programme ensures we are aligning our budgets to underpin the agreed AMS principles and to continue priority programmes such as spend to save, energy efficiency/fuel poverty, sheltered remodelling and general needs re-provision.
4.4
Impact on services/performance: Approving essential expenditure for 2017/18 will minimise the risk to YHN of failing to meet programme delivery targets.
4.5
Outcomes for tenants/leaseholders: The essential investment in 2017/18 will ensure we maintain decency, deliver health and safety and landlord obligations and will ensure those projects already started can continue. This will enable us to deliver these projects for tenants and leaseholders in a planned and prioritised way.
4.6
Risk (reputation, relationship): The approval of essential expenditure will minimise the risk to delivery during 2017/18. There will remain a risk if the remainder of the programme is not approved until later this year. There is also the risk of repayment of 1-4-1 receipts in relation to new build. This is due to lead in time for procurements, planning approvals and also resident consultation. Officers will continue to prepare for the remainder of the programme so it can be delivered as early as possible if there is approval by Cabinet.
4.7
Environmental: Energy efficiency is specifically referenced in terms of standard housing investment and new build. Wider environmental impacts are inherent in all of the proposals.
4.8
Legal: There are no legal issues arising directly from this report. Procurement and construction related to the programme will be delivered within the legal parameters.
4.9
Equality and Diversity and Community Cohesion: Equality is integrated into our procurement processes to ensure compliance with statutory obligations and to promote diversity throughout our contractual working. All tenants receive a home visit in advance of any major work being carried
out to ensure the investment meets with their individual needs. 4.10
Stakeholder Involvement/consultation: Regular progress reports on the Investment Programme will continue to be presented to the Service and Strategy Delivery Committee. Discussions are ongoing with Council staff on the implications of the Housing and Planning Act and the impact this could have on the Investment Programme. Staff have worked collaboratively to respond to previous challenges such as the 1% rent reduction and will continue to work together on these future challenges. Consultation will be carried out with tenants and leaseholders on the essential works but will not be progressed on the non-essential works until approvals are in place.
5.
Conclusion and recommendations
5.1
2015/16 was a challenging year due to the review of the programme to achieve the savings required as a result of the 1% rent reduction. Officers from YHN and NCC have worked collaboratively throughout this review to ensure key priorities linked with AMS principles are able to be delivered moving forward. We are currently awaiting the detail of initiatives from the Housing and Planning Act 2016 which is likely to bring a new set of challenges for the programme. The 2017/18 programme and the rolling four year programme is currently being prepared for approval by YHN’s Board and NCC’s Cabinet. As described in this report this will require a two stage approval process which will help minimise risks to delivery.
5.2
Board are recommended to :
Approve the essential investment for 2017/18 and recommend this to the City Councils October Cabinet. Agree to receive a further report later this year to approve the remainder of the 2017/18 programme and the rolling four year programme for recommendation to the City Council’s Cabinet.
6.
Implementation
6.1
Continue to deliver the 2016/17 programme and provide regular updates to YHN’s Service and Strategy Delivery Committee.
Continue to prepare for the 2017/18 programme.
Seek approval for the 2017/18 Investment Programme essential expenditure from the Councils Cabinet in October 2016.
Provide Board with an update on the remainder of the 2017/18 Investment programme and the rolling four year programme once further detail is known on the Housing and Planning Act.
Provide Board with an annual update on the rolling four year programme.
Background Papers Investment plan under self-financing Board December 2012 Housing Investment Programme 2014/15 outturn position and four year plan – Board Paper - June 2015 and Cabinet Paper January 2016 Housing Investment Programme 2015/16 outturn position – Service and Strategy Delivery Committee – July 2016 Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact Jen Vinton, Head of Assets and Regeneration by telephone on 0191 278 8789 or email jen.vinton@yhn.org.uk
YHN Board 2 August 2016 Service and Strategy Delivery Committee Annual report Report by Chair of Service and Strategy Delivery Committee For Information 1.
Background information
1.1
This report provides a summary of the work of Service and Strategy Delivery Committee from December 2015 to July 2016.
1.2
The purpose of the Service and Strategy Delivery Committee is to gain assurance that services are being delivered effectively and service objectives are being met by  
Agreeing the scope of service reviews, ensuring that they are conducted according to the scope and project plan, agreeing the subsequent service improvement plans and monitoring their delivery and associated risk When strategies have been approved by Board, monitoring and scrutinising the delivery of their action plans
The committee will also receive and scrutinise detailed information on specific performance issues in response to board and stakeholders’ queries and concerns. Where there is cause for concern that service objectives may not be met, strategic KPI targets may be missed, key risks are identified or financial viability is threatened the committee will also scrutinise the recovery approach at a strategic level.
2.
Work plan summary
2.1
Strategy monitoring Asset Management Strategy – The January 2016 report provided the committee with information on the progress made towards the seven key priorities of 2015/16 that form the Asset Management Strategy action plan:
Ensure investments are sustainable Maintain decency and landlord obligations Meet future demand and demographics Work in partnership and encourage employment Invest to improve environmental sustainability performance Build friendly and safe neighbourhoods Invest to reduce repair costs and make good decisions on voids
Income Management Strategy – the strategy was approved at Board in May 2015 to mitigate against the impact of welfare reform for client income streams and customers. In March and July 2016 the committee received reports that updated the committee on current performance in relation to income collection and progress against the four key themes within the strategy:
Promoting positive payment culture Preparing for Universal Credit Maximising rental income and minimising arrears Maximising financial inclusion
Outside of the meetings members received finance profile information which clarified the debt position. In July 2016 the committee received a closure report which provided some contextual performance information on rent collection and an update of progress against the key themes and their component activities. The new Income Management strategy will be brought to the committee for approval at a future meeting. Value for Money Strategy – the May 2016 for information report informed the committee on the progress against the Value for Money Strategy, which was previously approved by Board in May 2015, covering the four main themes that form the action plan; understanding services and assets, reducing costs and being transparent. The action plan set out a series of steps to help YHN understand underlying costs and performance to identify potential areas of improvement, including a project group, regular stock-wide NPV calculations based on property related cash flows to identify poorly-performing sections of stock, the continuing use of an efficiency log to monitor savings in the recurring YHN budget, and the use of benchmarking data to help set future priorities.
Corporate Procurement Strategy – an action plan progress report was presented to the committee for information in July 2016, covering 21 identified actions with additional details given in an appendix, 18 of which were noted as completed. Further information was provided on two actions that were given a ‘red’ status (pilot an e-auction to improve efficiency, and novate purchase contracts to alight with any changes in the HRA and YHN service provision). The action plan would be refreshed and return to the committee in November 2016. People Strategy – The strategy covering 2014 – 2016 was previously presented to a committee in July 2014. In March 2016 The Strategic HR Manager gave a progress update of the strategy for 2017 and beyond, which has three main priorities designed to increase productivity and staff engagement levels: To provide great leadership throughout YHN To enable all employees to achieve optimum performance To support a healthy, engaging and inclusive workplace The committee discussed developments in health and wellbeing and embracing diversity, , training for managers, the cost of absence to the business and the activity arranged to help support the improving trend. It was agreed that a revised People Strategy would be presented for approval at a future meeting. Equality and Diversity (E&D) Strategy – In May 2016 a closure report provided an update on the actions delivered during 2015-16, with a summary of the key achievements across five equality objectives: A modern and diverse workforce and an organisational culture that values and cultivates diversity Know who our customers are and provide responsive, flexible services Remain in touch with our staff and customers by listening to and learning from them Embed equality and diversity across YHN, promote understanding and the added value this brings to the organisation Better use of our influence and profile to make a positive difference Key achievements during the year included the Stonewall Workplace Equality Index ranking (36th), the excellence rating by the Strategic Housing and Equality Framework (SHEF) assessment.
2.2
Reviews Health and Housing Service Review – These reports were submitted for information in December 2015 and July 2016, which provided information on the review that followed the merging of three service areas in June 2014; health and welfare assessments, adaptations and relocation support. These changes were made to meet changing needs of customers, to ensure that processes were effective providing value for money and to develop cooperative working.
The main areas identified were: Mapping of the customer journey and internal processes Associated policies, procedures and reporting linked to YHNs and NCCs key objectives Roles, responsibilities and structures Development of IT systems to improve automation, reduce paper based processes and develop a mobile solution for staff The closure report in July informed the committee of the achievements gained via the review. As part of next steps the team aim to introduce a new structure and Health & Wellbeing Policy by September 2016, evaluate and rollout mobile working, and introduce a new customer service module of Northgate to manage referrals information. 2.3
Updates reports Housing Investment Programme update – Reports were provided in December 2015 and July 2016, covering progress against each aspect of the programme. The report in July gave an update on the final outturn on the 2015/16 programme, including key challenges and achievements, and informed the committee of the current progress of the 2016/17 Investment Programme. It highlighted challenges posed by the confirmed 1% rent reduction to the HRA investment programme, of which a £28M reduction was approved by Cabinet in January 2016. It was noted that further pressures are likely when additional information on the Housing and Planning Act 2016 is made available, that there may be a requirement to carry out a further review of the programme in order to make necessary savings. The committee also received information regarding customer satisfaction. Environmental Sustainability Update - The committee received the update in January 2016, which informed members of the progress made against priorities identified in their first Environmental Sustainability Policy Statement. The report outlined their approach to future development of environmental sustainability, which included aiming for a gold level award from SHIFT (Sustainable Homes Index for Tomorrow) and a review of priorities to ensure they fit with wider business service and delivery model changes which would both create efficiencies and meet the legal responsibilities of YHN. Participatory Budget update – submitted in January, the report provided an update on the ‘You’ve got the Power’ Participatory Budget project, outlining the process for identifying and agreeing projects. The report detailed the progress and achievements since launching in 2013 (the most recent round totalled 350 suggestions and over 4,000 votes were cast), accounting for customer satisfaction, feedback from tenant panels and residents, and publicity. Information was provided on the review of the project and key actions identified from the review to improve on the process, presented as an action plan, to which the committee added their own suggestions. The plan was composed of five improvement areas:
Increasing the range of ideas from tenants and community groups in the city Representativeness and diversity of groups providing suggestions How a suggestion is submitted and timescales The voting process Communication and promotion of the scheme
Customer Involvement update – In July 2016 the committee were given an update on a trial approach to customer involvement to engage with a wider audience, address future challenges and ensure involvement has a real impact on YHN business. The aim is to focus on a smaller number of key issues and spend more time engaging with more tenants so that the quality of insight gained is better. The report outlined two main items; customer involvement activity planned through the business strategy and delivery plan as 2016-17 priority areas:
Reducing voids/let properties efficiently; Universal Credit/income management; Digital inclusion
And summarised areas of activity delivered to date such as local offers, Housing and Planning Act, Repairs service consultation, Universal Credit. Performance Update for the Repairs and Maintenance 2015/16 - At the May 2016 meeting the committee received an update report for comment which provided performance information on the R&M service and proposed KPI changes for 2016/17. By the end of quarter four, the service had achieved 12 out of 15 agreed targets. Clarification was provided on how the indicators on repairs and maintenance fit with corporate KPI’s and what the reporting mechanism from committee to board was. Reference was made to the average end to end repairs targets, explaining the rationale for change and implications for tenants. Reassurance was also provided that YHN officers were working closely with Building and Commercial Enterprise to identify and avoid potential issues. 2015 Survey of Tenants and Residents (STAR) update – The Head of Business Strategy presented a report for discussion in March 2016, containing information on the survey carried out for 2015 and an overview of the follow up work that will be undertaken with the Property Maintenance team following a decline in customer satisfaction with the repairs service. Headline results gave further detail into the methodology and conclusions drawn from demographic information. Clarification was provided to possible issues that may have resulted in the decline in satisfaction with the repairs service. It was explained that more influence over staff behavioural and cultural attitudes would potentially improve matters along with in depth discussions at the review stage of the service level agreement. A future STAR will be carried out during 2016-17.
2.4
Action plan monitoring E&D 2016-17 action plan – The May 2016 report introduced the action plan for 2016/17 against the objectives set out in the E&D Strategy, which gave further detail on six priority areas. Progress will be monitored quarterly by Wider Management Team and reported to the committee during 2016-17 along with any key achievements, of which the next occasion will be November. The committee agreed to approve the E&D Strategy action plan for 2016-17. Annual Lettings Review action plan – the committee were given an action plan overview and update on progress in May 2016. Five areas of focus developed as a result of the Annual Lettings Review, of which the report gave background information and reported the status in traffic light format:
Updating the councils Allocations and Lettings Policy (green) Understanding issues of low demand and what solutions can be put in place (amber) Revising NCC’s Tenancy Agreement (green) Carrying out the next ALR of all lettings and allocations activity for 2015/16 (green) Improved digital access for customers (green)
Additional considerations for comment were noted; the impact of ongoing welfare reform and Universal Credit roll out on pre and post tenancy support, 1% reduction in social rents over the next four years and the impact it will have on demand for accommodation and investment opportunities, and the government’s ‘Pay to Stay’ proposal. 3.
Conclusion and recommendations
3.1
Board is recommended to: Note the work of Service and Strategy Delivery Committee over the period covered by this report.
Background Papers Service and Strategy Delivery Committee papers December 2015 to July 2016 Service and Strategy Delivery Committee terms of reference Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, please contact David Langhorne by telephone on 0191 278 7701 or email david.langhorne@yhn.org.uk
Board 21 June 2016 (5.00pm to 6.20pm) Present: O Grant (Chair), P Dibbs, L Doherty, P Dutton, J McCarty, T Moore, J Reid, D Slesenger, E Snaith, J Streather, M Talbot, V Dunn, M Page and J Purvis. In attendance: J Davison
Company Secretary
T Drury
Managing Director
N Scott
Director of Tenancy Services
L Forrest
Head of Finance
L Horsefield
Head of Business Strategy
J Urwin
Head of Housing Options
M Burn
Head of Support and Care
I Gallagher
Head of Property Maintenance
B Elder
Strategic HR Manager
J Wylie
Head of Business Services (until 6.20pm)
J Mitford
Head of Development and Procurement (until 5.15pm)
A Peel-Lowes
Service Quality Officer
L Ainscough
Policy and Business Support Officer
C McMullen
Newcastle City Council
474
WELCOME The Chair welcomed everyone to the meeting and special welcome to Tina Drury at her first meeting as Managing Director.
475
APOLOGIES Apologies were received from A Mirza, P Scope, L Stephenson, D Huddart
476
DECLARATIONS OF INTERESTS There were no declarations of interest.
477
CHAIRS ITEMS The Chair updated board members that since the last meeting when it was agreed to hold an externally facilitated governance review, Jill Davison has been preparing a scoping document, which had been discussed with herself, Tina and the senior management team, as well as NCC chief executive. This had been circulated to all board members and it was important to feed in your views. We will be sending the brief and scope out to consultants to gain quotes
and it was the preferred option to have a selection panel to interview potential consultants. The Chair asked J McCarty to sit on the panel to ensure the view of NCC would be reflected in the review, as important as our sole member. The Chair also asked for volunteers from any other board members, if they would like to be involved to get in touch with the Chair. In relation to the timeline of the governance review, the Chair raised the issue that the AGM held in September is usually where new members are appointed and committee membership is agreed. In light of the governance review it was proposed to move the AGM to November, this would also give board the opportunity to use the September meeting to discuss the review findings and recommendations. The Chair had discussed this proposal with NCC chief executive and was happy with the proposal. AGREED – 2016 AGM to be moved to 1 November 2016. 478
GROUP GOVERNANCE HANDBOOK Submitted: Report by the Company Secretary (previously circulated, copy attached to Official Minutes). Jill Davison presented the report which proposed revisions to the Group Governance Handbook for Board approval. The headline changes were;
Reference to the HCA has been removed following de-registration
Reference to 10 year management agreement included
Reference to the deleted post of Assistant Chief Executive and Director of Corporate Services has been removed,
All references to Chief Executive have been amended to Managing Director
Annual approval of the Strategic risk register has been included in matters reserved for the Board,
Subsidiaries service agreements and quarterly Chairs meetings have been added,
Group Audit Committee terms of reference amended,
Service and Strategy Delivery Committee terms of reference amended,
Remuneration Committee terms of reference amended,
Functions and responsibilities of the Managing Director has been amended to reflect the new Managing Director job description,
List of policies and strategies updated
The changes were a housekeeping exercise to ensure the handbook remained up to date, as it was expected that the governance review would bring further changes in due course. V Dunn had proposed some amendments to ensure the sections regarding board approvals of urgent decisions were clearer. RESOLVED that the Board agreed to; - approve the revised Group Governance Handbook
479
SLAVERY & HUMAN TRAFFICKING STATEMENT Submitted: Report by the Managing Director (previously circulated, copy attached to Official Minutes). T Drury presented the report which outlined the requirements of the Modern Slavery Act 2015 which gained Royal Assent in March 2015. The act consolidates various offences relating to human trafficking and slavery. One of the provisions requires all commercial organisations carrying out business in the UK with a turnover of £36million or more to disclose in an annual statement what steps they have taken during the financial year to ensure their business and supply chains are slavery free. The statement must be signed and published on our website within 6 months of our financial year end. The report presented YHN’s first statement and sets out what we will do over the next 12 months to mitigate the risks. Questions/comments A Board member asked how the policy will be monitored to ensure it is effective and how it will be reported against. T Drury responded that the statement and policy relates mainly to the procurement process and there is already procedures in place and a suppliers code of conduct, this will be written into the tender process and suppliers expected to comply. A Board member questioned 2.4 of the report which read “whilst there is no requirement” and queried if we did need to do this. T Drury confirmed the report was relating to there is no requirement to guarantee that slavery does not exist, not that there is no requirement to have a statement. The statement gives out intentions over the next 12 months to mitigate the risk of slavery and we will report back each year. RESOLVED that the Board agreed to; -
480
approve the Slavery and Human Trafficking Statement for publication on the YHN website by 30 September 2016
IMPLICATIONS OF THE HOUSING AND PLANNING ACT Submitted: Report by the Managing Director (previously circulated, copy attached to Official Minutes). T Drury presented the report which gave an overview of the Housing and Planning Act. The act gained Royal Assent on 12 May 2016, but we are still waiting for a lot of the details to be confirmed, to ensure we take the appropriate measures. What we do know is that this will be resource intensive with far reaching consequences. T Drury assured the board that YHN are working closely with partners to work through the response required. The report gives a very detailed summary of the direct impact. L Horsefield gave a short presentation on the most salient parts of the act and what the impact will look like for YHN.
Questions/comments A board member commented that a more thorough consultation should have been conducted by government before this legislation was passed, it gives no consideration to the provision of services and the with regard to salary levels with different contracts these vary a lot during the year, there will be a lot of confusion and a lot of resources required to enable correct data to be captured. A board member commented that the policy had been designed to solve housing problems in the south east and had no concept of circumstances in the north east. It was difficult to know how we would be able to implement the measures in the timescales given. The City Council had aspirations to build more council homes to provide better quality new homes but not sure how this will now be affected. A board member commented that the council had recently looked at five sites to build more properties for older persons, but according to the legislation, older people would move in and then only have five years – do they then have to reapply? There were a lot of comments regarding what will happen at the end of tenancies. L Horsefield responded that it may be that older persons are exempt, but the exemptions are still to be confirmed and this is the detail we are waiting for from government. A board member questioned how market rents will be set, as recently saw a private property in Shieldfield for rent at £700 per month, which is not the level we would be able to set for our properties. The board member also suggested that equality impact assessments need to be completed to understand the impact on mixed communities. T Drury summarised the discussion noting that the legislation was contradictory, whilst the government wanted people to aspire to own their own home this now put disincentives in place for people to work or earn more. It was difficult to say whether HMRC were in a position to meet the demand in relation to information which will be requested, and it will also be interesting to see what exemptions will be confirmed. T Drury assured the Board that where there is an opportunity to influence the consultation YHN will work with NCC and partners to get our views heard as one size doesn’t fit all and it was important for the region to have our issues addressed. The Chair noted that Board will be kept informed as more detail arises and briefing will be held with MP’s and regional members of the House of Lords to ensure they understand the how the legislation effects the city. RESOLVED that the Board agreed to; note the report and receive further updates. 481
VOIDS TIME LIMITED COMMITTEE REPORT Submitted: Report by the Director of Tenancy Services (previously circulated, copy attached to Official Minutes). P Dutton, Chair of the Voids time limited committee introduced the report, and began by thanking all the board members, officers and NCC colleagues who were involved in the committee.
From the committee meetings, some key points stood out; KPI’s sometimes had adverse incentives, marketing was an area which was identified as needing improving, a more attentive management service and more accountability and responsibility for tenants. When looking at the data against benchmarks a lot were lower quartile and it was generally agreed that we cannot remain at this level. Overall, the end to end process has advanced but we need a better understanding and need to simplify processes to work well so the system works as best as possible and save costs. N Scott added that the committee had been a useful exercise which had brought different strands of work together. There are still low demand issues to work through in the Walker and Walkergate multi storey blocks and we are currently working with NCC on a solution. The report also set out a series of recommendations which will be monitored by the service and strategy delivery committee. A Board member added that the City Council were embarking on a pilot regarding new tenancy conditions and we will ensure lessons are learnt from the pilot and bring back to the YHN Board before making changes. T Drury summarised the discussion by saying this is an area which has a lot of pressure to be smarter, leaner and more efficient. We must ensure that as an organisation we are easy to do business with and attract a wider audience with our marketing. This is the start of the process and voids will be continually under review and monitored by service and strategy delivery committee. RESOLVED that the Board agreed to; approve the recommendations listed in section 5 of the report. 482
MINUTES RESOLVED that the Board considered the minutes of the meeting held on the 10 May 2016 and approved them as a correct record.
483
ITEMS FOR INFORMATION RESOLVED that the following information be received for information;
HEALTH & SAFETY SIX MONTH REPORT It was noted the graph labels on page 89 were unreadable A board member commented in light of the recent events the safety of staff was really important and the number of incidents reporting aggressive and threatening behaviour was worrying. I Gallagher commented that all staff have been trained and informed not to tolerate adverse behaviour.
DELEGATED DECISIONS
BOARD FORWARD PLAN
484
COMMITTEE MINUTES
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 2 August 2016
Board 2 August 2016 Universal Credit Update Report by Director of Tenancy Services For Information 1.
Background
1.1
This report is to provide Board with an update on Universal Credit (UC) and a summary of key activity since the report in May. It sets out the progress the implementation project has made, national implementation of UC and the learning from the initial roll out for single people on UC and the introduction of the full service in Newcastle from May 2016.
2.
National Implementation of UC
2.1
National Caseload of UC The total number of claims made for UC has risen to over half a million as all Jobcentre Plus offices are now accepting claims from single claimants. As at 12 May 2016 262,728 claimants were in receipt of UC. Since UC began there have been more starts from males than females. Overall, in May 2016 66% of starts made to UC was from males, compared to 34% female. The number of claimants by gender differ from region to region.
In May there have been more starts to UC from the 25-49 age group,
compared to other age groups. The gap between the 16-24 and 25-49 age groups widened slightly this month in comparison to April.
The Department for Work and Pensions (DWP) state that 40% of people on UC are in employment. 2.2
Implementation of UC in Newcastle DWP statistics which have previously provided numbers of people on UC by local jobcentre is now provided by local authority area. The total number of people on UC in Newcastle at 12 May 2016 was 2,017 and of those 884 was in employment (44%).
2.3
Introduction of Full Service UC full service is the enhanced digital platform which provides more online features, giving claimants greater control over their claim, with one online account for payments, reporting changes of circumstance and receiving job alerts and work coach feedback. The full service aims to increase the efficiency of the existing UC service and improve value for money. UC full service was first operated in trial areas in South London from November 2014 and national roll-out started in May 2016, throughout this time it has been open to all new claims by all claimant types. This is in contrast to the live UC service which is specific to single claimants and a limited number of other claimant types. Board will recall that Newcastle City Job Centre went live with the full service on 25 May 2016. It has recently been announced that Newcastle East Jobcentre will move to full service in February 2017 and Newcastle West Jobcentre will progress to full service in March 2017. The roll out for the full service will continue across Great Britain with a completion date of September 2018. Once that process is complete, the DWP will begin migrating all remaining existing benefit claimants to the full UC digital service with a view to completion in 2022. However, until that happens, the two systems will run side by side.
3.
YHN Implementation Response
3.1
Universal Credit Implementation Project YHN staff continue to take appropriate action to mitigate, learn and understand the introduction of UC and wider welfare reforms. The introduction of the full service at Newcastle City jobcentre has resulted in an increase of the UC caseload and we have taken appropriate action to upskill staff whose income recovery patches are most affected. We have completed a review of the UC action plan to ensure it is fit for purpose. There are additional work plans that complement the UC Project Plan which are monitored via the UC Project group namely;
3.2
Benefit Cap Project Communications and customer involvement Introduction of LHA and Staff training and Development.
Impact on the introduction of UC to Council tenants YHN are aware of 506 tenants currently claiming UC, of those 356 are ‘live service’ claimants and 150 are ‘full service’ claimants. Board will be aware that Income Recovery staff in each housing hub were acting as UC specialists within their areas and were responsible for managing UC cases. In order to prepare for the introduction of full service, staff based within the Kenton Hub have been upskilled and now managing their own UC casework. YHN officers have been successful in quickly adapting working practices as learning and DWP guidance develops. There have been challenges following the introduction of the full service, for example;
Requests from the DWP to verify housing costs were not received 53 requests to verify housing costs came in one day (in some instances, one week before payments were due to be made to customers) and needed speedy staff intervention. Housing costs for customers on their first payment, in some instances were not received by our tenants. DWP report the local service centre is unable to cope and has sought assistance from elsewhere in the country resulting in duplication of requests None Trusted Partner application process for Alternative Payment Arrangements resulting in further processes for staff to follow Two systems of UC running in Newcastle causing confusion for staff and tenants
3.3
Performance Management of UC As the number of UC cases increases we are seeing the impact of the initial 5 week delay in tenants receiving their housing costs and the number of UC cases in arrears has increased by 186 in the current financial year as the number of claimants rises. All UC cases are currently being reviewed with particular emphasis on those with arrears over £1000. Income Recovery Managers are currently reviewing UC cases in their areas to ensure that Alternative Payment Arrangements (APAs) are in place for all arrears cases which qualify under DWP guidance and where APAs are not appropriate, intensive efforts are being made to ensure tenants receive budgeting support and are signed up to direct debit to cover their rent liability. In cases where tenants fail to engage, we are instigating the normal recovery procedures including issuing Notice of seeking possession followed by legal action. Income Recovery staff have recently attended a half day workshop which concentrated on carrying out effective tenancy sustainment and arrears recovery work in a shorter period than has previously been seen, so if enforcement action needs to be taken, it is initiated when arrears are at a lower level and tenants have a more realistic chance of repaying and sustaining their tenancy.
3.4
Alternative Payment Arrangements and Trusted Partner Status Board will recall that following the successful application of the Trusted Partner Pilot YHN staff have been able to make applications for those tenants identified as ‘unlikely to pay’. The aim of the pilot is to understand and assess the process whereby social landlords identify vulnerable tenants who may struggle to cope with paying rent direct to them and make appropriate recommendations for a direct payment of housing costs known as an Alternative Payment Arrangement (APA). 165 requests have been made for direct payment of housing costs to YHN. However, since the introduction of the ‘full service’ of UC in Newcastle, the addresses and tenants that are attached to the City jobcentre fall out of the pilot. The Partnership managers within the DWP who are responsible the learning and implementation of Trusted Partner are currently working with Hounslow Council to test the pilot until the full service, they have suggested that they would like to expand this to other full service sites but at present this means YHN staff have two different processes to follow when making applications. The Trusted Partner pilot is due to end in September and we are unsure at this time if it will continue and if it does, in what form. Further updates to Board will be provided when we have been given further information from the DWP.
3.5
Communication with Tenants In February we consulted 38 customers who had made a UC claim. The aim of this was to learn from their experience and to adapt our approach for the future. They told us we need to do more to make people aware of UC to enable, prepare and empower people to make a claim and manage on the new benefit. We have worked with community groups and schools to communicate what customers need to know and prepare for the roll out of UC. The information sessions included information on:
How to prepare for UC What digital support is available across the city How to set up a bank account Energy advice to help tenants reduce their outgoings
We worked with local communities and schools and pre booked sixteen sessions from June to September. We prioritised the schools and community groups in the areas of the current ‘full service’ roll out. We also targeted other groups that had the potential to support customers that may be affected specifically BME community groups. 93 customers attended the first eight sessions and we know that 71% of those who attended stated that they had increased their knowledge on UC. The key learning from the sessions is that tenants are only likely to engage with information about UC once they are affected by it. Going forward we plan to continue to engage with communities and local schools through their communication networks and are developing videos to communicate the key messages to support customers through UC and will post these through social media. The Customer Involvement team plan to monitor the tenants we have engaged with once they go onto UC to measure the impact of the roadshows. A final evaluation report will be produced at the end of September. 3.6
Introduction of reduced Benefit Cap In the last report to Board details were provided about changes to the benefit cap. The reduced levels of the cap are:
£385 per week for couples and lone parents £258 per week for single adults
We have been informed by the DWP that the reduced cap will take affect from 7 November 2016 and Newcastle City Council have received their first dataset of potential residents of Newcastle that may be affected, we have allocated one Advice and Support worker to support those people. Contact has been attempted with 276 tenants and the aim was to;
Raise awareness with tenants of the forthcoming reduction in the benefit cap
Give tenants as much time as possible to prepare for the change Check that the information YHN & NCC hold about the tenant is correct Check to see if the tenant may qualify for an exemption benefit Offer the tenant specialised employability support
The results were:
109 of 276 tenants responded to contact and are likely to be capped if their situation does not change 92 of 276 tenants have not responded to contact 75 of 276 tenants are now exempt from the benefit cap for a variety of reasons 57 tenants requested a referral for specialised employability support
4.
Universal Support Delivered Locally
4.1
Board will recall from earlier updates that ‘The Universal Support – delivered locally (USDL) trials ran between September 2014 and August 2015 in eleven areas. The trials had three key objectives:
To enable early intervention of how best to support those who need digital and personal budgeting support in order to make and manage a claim for UC To inform the future development of the framework for local support; and To provide learning on a number of UC-related services and activities, that could be used to provide evidence for future strategic and funding decisions.
The USDL trials demonstrated how Local Authorities, Jobcentre Plus and wider partnerships can work together to identify, engage, assess, refer and support claimants to address digital, personal budgeting and often wider support needs. The evaluation stated that a successful Universal Support Service needs to;
ensure that there are clear and common success measures; governance, partnerships and management to oversee these locally claimants can be identified, engaged and screened through different channels benefits of colocation and integration are further explored Systems and process are in place to enable effective delivery of local support.
The DWP will use the findings to inform strategy for USDL to support future design and delivery as UC evolves and expands. YHN Officers will be looking at the findings as part of the UC project plan and work with council officers to look at how we can best support tenants and residents.
5
Wider Welfare Reforms
5.1
Introduction of LHA restrictions to housing benefit in Social Housing As part of its welfare reform policy, the government announced in the Autumn Statement and Spending review 2015 that Housing Benefit paid to new tenants in the social housing sector should be subject to the same limits which apply to tenants in the private rented sector. This means the amount of rent that Housing Benefit will cover in the social rented sector will be limited to the relevant Local Housing Allowance for new tenancies signed on or after 1 April 2016 (for supported and sheltered housing this will be 1 April 2017) with the actual restrictions taking effect from 1 April 2018 onwards.
6
Partnership Working
6.1
Delivery Partnership Agreement (DPA) The DPA is the DWP’s mechanism for developing partnership working between agencies involved in providing services to the vulnerable; it is an agreement between the Council and the DWP. There are three elements to the DPA; 1) Support for the DWP to assess housing costs and the manual processing of the local council tax reduction scheme. 2) Support to make claims online (support being provided by the council’s digital by choice programme) 3) Personal Budgeting Support (PBS) In 2015 the City Council signed a one year, Delivery Partnership Agreement and this expired in March 2016. The DPA for April 2016 – December 2016 is currently being negotiated. Whilst the contract may not be signed YHN and NCC continue to act in the spirit of the DPA and YHN are residents to make claims for UC and tenants needing personal budgeting support.
6.2
Welfare Reform Partnership Officers In July 2015 the YHN UC specialists began a pilot to test out the benefits of co-locating in the city’s job centres and at the last board update it was confirmed that an evaluation had been completed and a proposal to have staff co-located at the three Newcastle Jobcentres on a permanent and fixed term basis. The report was submitted to NCC who agreed to fund two posts from HRA Welfare Reform Reserves for two years and one fixed term for one year from other NCC budgets to use the staff to support residents of Newcastle manage and maintain their UC claims and carry out personal budgeting support on behalf of YHN and NCC. Following the conclusions made within the formal DWP ‘USDL’ trials where colocation is recommended, this is a unique opportunity to work in partnership with NCC and DWP to work with residents of Newcastle who
may be affected by UC and Welfare Reform. The Welfare Reform Operational Officers have been appointed and are in post.
7
Business Implications
7.1
Purpose and objectives By taking an approach that maximises income collection whilst supporting tenants we will contribute to our service objectives of;  
7.2
Collect the rent and let properties efficiently Promote health and wellbeing and support vulnerable people to enjoy independence
Value for money and efficiencies: The implementation project includes actions that are intended to ensure we deliver efficient services that are value for money. As part of the revised project plan we are looking at how services work together in will look to calculate the impact UC has on current service delivery.
7.3
Financial Implications YHN Board previously agreed to establish a reserve specifically for welfare reform related activity. This reserve is now managed by the council and we have an agreed process for accessing this reserve when needed.
7.4
Impact on services / performance We are currently upskilling staff within YHN to enable them to provide advice and support to our tenants as a result of the introduction of UC. We are tracking what impact this is having on service delivery and reviewing cases where arrears have escalated significantly to ensure all appropriate action has been taken on accounts.
7.5
Outcome for tenants/leaseholders A large percentage of council tenants and leaseholders will be affected by UC. Currently over 65% of working age tenants are in receipt of Housing Benefit and will be responsible for managing a monthly payment and paying their rent directly to YHN.
7.6
Risk (reputation and relationship) YHN and the City Council have worked in partnership to minimise evictions and reduce homelessness. The introduction of UC presents a risk of increased rent arrears which could ultimately lead to eviction. This may affect our relationship with statutory and voluntary sector partners. The Welfare Reform Partnership Officers co-locating and the trusted status pilot
does present an opportunity to build positive relationships with the DWP and influence how landlords can assist tenants and protect rental income. 7.7
Environmental There are no direct environmental impacts following the introduction of UC.
7.8
Legal UC is a significant element of the Welfare Reform Act 2012 and its implementation is determined by further regulation and guidance. In terms of our implementation project there may be changes to tenancy agreements and further updates will be brought back to Board.
7.9
Equality and Diversity and Community Cohesion The introduction of UC may increase tenancy turnover and homelessness which could impact on community cohesion and sustainability of estates. -
7.10
Our analysis of customer groups who are already in rent arrears and who are single people (with or without children) and those tenants whose ethnic origin is Black British Africans are more likely to struggle with the introduction of UC. To minimise the impact we provided information sessions at local schools and community groups that support these groups of tenants (see section 3.5) Stakeholder Involvement/consultation: We have been working with the council and other partners as part of the welfare reform strategy board and Delivery Partnership meetings. We have recently worked to support NCC at Financial inclusion events and have committed to supporting the Jobcentre Plus staff in their understanding of housing related issues as Full service roll out progresses.
8
Conclusion and recommendations
8.1
Board is recommended to 
Note progress made on delivery of the UC Implementation Project.
9.
Implementation
9.1
Reports will be brought back to Board on a quarterly basis during 2016-17.
Background Papers Universal Credit reports to YHN Board throughout 2015 Universal Credit report to YHN Board February, May 2016 Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact Neil Scott, by telephone on 0191 278 8711 or email neil.scott@yhn.org.uk
Board 2 August 2016 Repairs and Maintenance Contract Review Report by Director of Property Services
For information 1.
Background information
1.1 In May 2016 Board were informed the current repairs and maintenance contract term was expiring and would be extended through to 2 October 2016 to ensure consistency of service to Byker Community Trust (BCT) tenants in advance of the repairs service transferring to Isos on 3 October. 1.2 Upon assessment of the review, scope and associated timescales the City Council plans to extend current contractual arrangements through to 31 March 2017 to ensure a robust review process is undertaken. 1.3 The extension of the existing working relationship also allows for the review to take in to consideration progress and outcomes of YHN’s transformational change programme. 2.
Review of Repairs and Maintenance
2.1 The City Council has commenced a review of the repairs and maintenance service led by the Head of the Fairer Housing Unit. A working group (detailed in May’s report to Board) has been established and is scheduled to meet fortnightly. 2.2 The working group is assessing current service provision and potential future working arrangements to ensure the service delivered by Building and Commercial Enterprise (BCE) meets the expectations of tenants and leaseholders:
Customer satisfaction – delivering a tenant focussed service
Operational performance and quality – ensuring the service delivers against tenant, YHN, NCC and other stakeholder expectations
Operational costs – ensuring the service delivers value for money.
The group is also considering opportunities for more efficient working between YHN and NCC. 2.3 The extensive tenant and leaseholder consultation exercise detailed in May’s report to Board has concluded, and identified development areas for the repairs service. Findings from the consultation exercise will be presented to the working group at the next meeting and will help to shape future service delivery. 3.
The Business Implications
3.1
Mission and Strategic Objectives: The repairs service impacts on the following service objectives:
3.2
Keep the housing stock decent and neighbourhoods
Collect rent and let properties efficiently
Promote health and wellbeing and support vulnerable people to enjoy independence
Value for money/efficiencies: The review of the repairs and maintenance service will incorporate an assessment of value for money.
3.3
Financial Implications: There are no direct YHN financial implications from this report. YHN’s Property Maintenance team continue to oversee and challenge expenditure on repairs and maintenance. During this period YHN will continue to ensure value for money is achieved within this contract as per the terms of the management agreement.
3.4
Resources (financial, property, technological or human): None from this report
3.5
Impact on services/performance: Extension of current contractual arrangements through to 31 March 2017 should negate any impacts on services or performance for NCC, Leazes Homes or BCT tenants and leaseholders. Future impacts on services or performance will be considered as part of the review of contractual arrangements.
3.6
Outcomes for tenants/leaseholders: Tenants and leaseholders will be the primary focus of the repairs and maintenance service review. An extensive customer consultation exercise has concluded and will inform the review outcomes.
3.7
Risk (reputation, relationship): The proposal to extend current arrangements beyond the end of the Byker Community Trust contract should eliminate any risks associated with the implementation of new working arrangements.
3.8
Environmental: None from this report
3.9
Legal: The City Council intends to extend current arrangements through to 31 March 2017. This will be achieved through the Council’s Delegated Decision process.
3.10 Equality and Diversity and Community Cohesion: None from this report, however equality and diversity and community cohesion will be integral parts of the review of the repairs service. 3.11 Stakeholder Involvement/consultation: Review of the repairs and maintenance service is being undertaken by a joint YHN/NCC project group. Wider stakeholder consultation (including Leazes Homes) will be carried out through the review process.
4.
Conclusion and recommendations
4.1 Board are recommended to: 5.
Note the revised proposal to extend the current repairs and maintenance service delivery model to 31 March 2017
Implementation
5.1 Upon completion of the review of the repairs and maintenance service Board will receive an update report in early 2017. Background Papers May 2016 – Repairs and Maintenance Contract Review March 2016 – Repairs and Maintenance operational Resources January 2010 and December 2011 – Repairs and Maintenance Contract Review December 2005 – Repairs and Maintenance preferred bidder Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact Ian Gallagher by telephone on 0191 2787728 or email ian.gallagher@yhn.org.uk
Board 2 August 2016 Delegated Decisions – Schedule of non-confidential Delegated Decisions taken between 10 June 2016 and 17 July 2016 Directorate/
No. Delegated Officer
Scheme
Cost/ Budget provision
Units
Contractor
Wards
David Langhorne Property Services
SBD Doors replacement
£287,599.20 funded by Health and Safety -Capital
360
BCE
Cross City
2
David Langhorne Property Services
Se Ducts and Drying cabinets Health and Safety repairs
£511,352.65 funded by Health and Safety -Capital
882
BCE
East Gosforth
3
David Langhorne Property Services
Dinnington Newbuild
£330,735.04 from Investment Programme -New Build
4
Keepmoat
Castle
204
Keepmoat
Cross City
1,011
Springs Roofing Ltd.
Cross City
1
4
David Langhorne Property Services
INT0014 Kitchen Replacements
Cost increase of £120,644.96 on original £732,655.04 funded from Lifecycle
5
David Langhorne Property Services
2016/17 Roofing Programme
£4,385,948.22 funded from Lifecycle
6
David Langhorne Property Services
7
David Langhorne Property Services
BISF 1
Cost increase of £385,133.00 on original £6,492,616.00 funded from Regeneration - General needs re-provision Cost increase of £154,780.57 on original £765,482.53 funded from Energy Efficiency/Fuel Poverty measures
9
David Langhorne Property Services
RF0011 15/16 Pitched Roofing
10
David Langhorne Property Services
11
David Langhorne Property Services
12
David Langhorne Property Services
13
14
David Langhorne Property Services
David Langhorne Property Services
North Kenton Regeneration (New Build)
71
Keepmoat
Fawdon
83
Straightline Construction
Byker & Walkergate
Cost increase of £275,000 on original £7,450,000 funded from Lifecycle
1107
John Flowers Ltd.
Cross City
Leazes court communal area
£37,833.20 funded from Environmental Work and Communal Areas
84
HLS
Westgate
Whalton Court, Fawdon. Participatory Budget No.21
£22,554.30 funded from the Participatory budget
25
HLS
Fawdon
£45,897.48 funded from the Participatory budget
36
HLS
Byker
Cost increase of £452,000 on Original £3,476,830.99 funded from Lifecycle
669
Hodgson Sayer Ltd
Cross City
Cost increase of £115,000 on Original £551,092.01 funded from Lifecycle
116
Straightline Construction
Kenton
Margaret Collins House ( PB 17) RF0014 Pitched Roof & RF0015 Flat Roof Replacement Programmes NEP
Wyndley House window replacement
15
David Langhorne Property Services
The Minories
£49,860.83 funded from Lifecycle
16
David Langhorne Property Services
Ecology surveys for RF0017 Roofing Programme
Cost increase of £100,000 on original £28,327.13 funded from Lifecycle
24
Straightline Construction
South Jesmond
1000
Haycock and Jay Associates
Cross City
Board 2 August 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 three Board meetings in 2016 (or amended date subject to confirmation)
20 September 2016 Governance Review discussion
Consultant session
Annual Report & Financial Statements
For approval
Byker Community Trust Contract Extension
For approval
Churchwalk Regeneration and Cruddas Park Shopping Centre update
For approval
Transformational change presentation
Tina Drury
1 November 2016 AGM Minutes of AGM 2015
For approval
Appointment of External Auditors
For approval
Retirement and Appointment of Board members
For approval
Annual Accounts and Financial Statements
For approval
Board Meeting Income Management Strategy
For approval
Abri Trading Limited Annual Report
For discussion
Group Audit Committee Annual Report
For discussion
Finance and Performance Quarter 2 Report
For discussion
Housing and Planning Act Update
For discussion
Universal Credit Update
For information
Safeguarding annual Report
For information
13 December 2016 Asfaleia Limited Annual Report
For discussion
Voids Time Limited Committee Recommendations Update
For discussion
Health & Wellbeing Strategy
For discussion
Health & Safety 6 monthly report
For discussion
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
Service and Strategy Delivery Committee 17 May 2016 (5.15 pm - 6.35 pm) Present: P Dutton L Doherty E Snaith M Page
(In the Chair)
In Attendance: D Langhorne L Horsefield I Gallagher J Urwin A Allison L Forrest J Giles A Peel C McMullen C Patterson 33
- Director of Property Services, YHN - Head of Business Strategy, YHN - Head of Property Maintenance, YHN - Head of Housing Options, YHN - Head of Income and Tenancy Management, YHN - Head of Finance, YHN - Contract Development Officer, YHN - Service Quality Officer, YHN - Housing, Policy and Commissioning Team Manager, NCC - Democratic Services, NCC
WELCOME AND INTRODUCTIONS The Chair welcomed everyone to the meeting.
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APOLOGIES FOR ABSENCE Apologies for absence were received from V Dunn, J Purvis and J Streather
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DECLARATIONS OF INTERESTS None
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MINUTES OF THE PREVIOUS MEETINGS (a)
Minutes of meeting held on 19 January 2016
RESOLVED – That the Minutes of the previous meeting held on 19 January, 2016 were agreed as a correct record and signed by the Chair. (b)
Notes of Inquorate Meeting held on 22 March 2016
RESOLVED – That the notes of inquorate Meeting held on 22 March, 2016 were agreed as a correct record subject to the following amendments and were signed by the Chair. Amendments: Minute 25 – Apologies for absence – J Streather be removed and replaced with V Dunn and L Docherty be corrected to L Doherty Minute 29 Income Management Strategy – Update – the final paragraph be amended to include reference to the officer’s reassurances given to concerns raised by the Chair about the rent collections rates of tenants claiming Universal Credit and the continued work to improve matters through the trusted partner pilot. 37
ACTION LIST AND WORK PLAN REVIEW D Langhorne introduced the action list and work plan to November 2016, confirming that all actions had been completed. He pointed out that no feedback had been received from the Director of Communities, NCC about the survey results; however, issues would be picked up during discussions on the service level agreement for the R&M contract. He also pointed out that the work plan was a fluid document therefore was subject to change. RESOLVED – That the action list and work plan be received and the comments noted.
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CHAIRS ANNOUNCEMENT The Chair sought the committee’s approval to move Item 11 – Value for Money Update, as the next item of business.
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VALUE FOR MONEY UPDATE Submitted: Report by Financial Controller (previously circulated and a copy attached to official minutes), which updated the committee on the progress against the Value for Money Strategy approved by the Board in May 2015. RESOLVED – That the report be received and noted.
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EQUALITY AND DIVERSITY STRATEGY UPDATE 2015-16 Submitted: Report of Head of Business Strategy (previously circulated and a copy attached to official minutes), which provided an update on the actions delivered during 2015-16, with a summary of the key achievements. L Horsefield introduced the report, confirming that it was for discussion. Responding to a question, she indicated that there had been no significant impact on the business, as a result of those actions, which were delivered behind schedule. RESOLVED - That the report be received and comments noted.
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EQUALITY AND DIVERSITY 2016-17 ACTION PLAN Submitted: Report by Head of Business (previously circulated and a copy attached to official minutes), which introduced the action plan for 2016/17 against the objectives set out in the Equality and Diversity Strategy. L Horsefield introduced the report and explained in more detail the priority areas to be focused on during 2016-17. The report was welcomed by the committee. A comment was made about how much the plan had improved and provided more sharpness around the objectives and measures. During discussions the following points were made:
Clarification was provided around the current profile of the workforce, recruitment drive, and training, in addition to details about the conversations being held through Positive Action and which all may help increase diversity within the organisation. Progress was reported on the exploration of other characteristics, such as mental health and well-being that may support the achievement of accreditations. The rationale behind the setting of the 30% measure of customers opening the Welfare Reform e-newsletter was discussed, together with the complexity of setting a measure for increasing the number of transactions online. An offer was made to circulate more information on how 30% was reached as a measure. ACTION. A comment was made about ensuring data was collected for planning purposes only. It was confirmed that data was collected to gain a better understanding of the organisation and improve service delivery. Data collection was also a requirement of some of the accreditations and frameworks used.
RESOLVED – That the committee agreed to approve the Equality and Diversity Strategy action plan for 2016-17. 42
PERFORMANCE UPDATE FOR THE REPAIRS AND MAINTENANCE SERVICE 2015/16 Submitted: Report by Head of Property Maintenance (previously circulated and a copy attached to official minutes), which provided information on the performance of the Your Homes Newcastle Repairs and Maintenance service for 2015/16 and changes to the performance targets for 2016/17. J Giles introduced the report, summarising the key aspects. During discussions the following points were made:
Clarification was provided on how the performance indicators on repairs and maintenance fitted with the corporate KPI’s and what the reporting mechanism through from committee to Board was. Reference was made to the average end to end repairs target, with the rationale for change and implications for the tenant being explained. It was confirmed that incentives were in place for the contractors. Reassurance was provided that YHN officers were working closely with Building and Commercial Enterprise and the previous issues, should not be repeated.
RESOLVED – That the report be received and noted. 43
ANNUAL LETTINGS REVIEW ACTION PLAN Submitted: Report by Head of Housing Options (previously circulated and a copy attached to official minutes), which provided committee with an overview and update on progress relating to the Annual Lettings Review Action Plan, delegated to this committee. J Urwin introduced the report, highlighting the key areas and current status of work. A question was raised around the commissioned research to understand the causes of low demand. The committee was advised that the University had declined the offer to undertake research due to the current climate and the scope of the brief being too far reaching. This would be revisited after an analysis had been carried out around the responses to the Housing Bill and the Welfare Reform changes and if research was still required the brief would be re-examined and given more focus. A member commented on how astonished she was that the University had declined the offer, pointing out how useful it was to have the external approach. The committee was informed that specific recommendations implemented had already had a direct impact in tackling the low demand and further progress would be made once NCC had approved the action. The committee noted that in October the Northern Housing Consortium were to publish regional information on the differences in housing markets, which maybe a useful document to have sight of. RESOLVED – That the report be received and the comments noted.
44
REVISED OPENING HOURS - HOUSING MANAGEMENT. Submitted: Report by Head of Income and Tenancy Management (previously circulated and a copy attached to official minutes), which updated the committee on the impact of the proposed changes to opening hours at a number of buildings across the city, which delivered a service on behalf of YHN. A Allison introduced the report, explaining the current operating model and revised opening hours, together with highlighting the implications for YHN and the customers. She reassured the committee that YHN officers would continue to work with NCC and staff to resolve the operational issues. Branded communication material which would specifically clarify the situation for customers was being produced and would be circulated soon. The committee was also informed that the wider Management Team were currently pulling together projects, for appraising by the new Managing Director, which included a review of front line service delivery, a review of job roles and outlets; however, timescales had not yet been confirmed. RESOLVED – That the report be received and the comments noted
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DATE AND TIME OF NEXT MEETING Tuesday 5 July 2016 at 5.00pm