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2013/14

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Tenants’ conference2014

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We have undertaken a complete review of our brand which has resulted in a new brand identity.

We are pleased to be able to introduce it in this annual report.

welcome to the new lookhanover

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Helen Murdoch,Chief Executive

Michael Martin,Chairperson

Introduction from Chief Executive and Chairperson

‘Simple solutions for life: helping older people to feel safe and secure at home and to live fulfilling and independent lives.’

Over the last few months we have developed a new Vision Statement which encapsulates our primary objectives:

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Our vision is supported by six commitments and our aim is to ensure that our brand conveys this vision.

Hanover is currently in a strong position. In order to remain so we must continue to provide good quality housing and support services, undertake new initiatives and adapt to change in the environment around us. Change is inevitable and the better we prepare for it, the better we will be placed as a highly regarded provider of accommodation and services and an employer of choice. What we must do is try to anticipate changes in the external environment, how they will affect our business and how best we can structure our business to manage change.

In the light of this, we have undertaken a strategic review of our organisational structure and have consulted fully with staff on this. Reviews are essential business practice. It can often go unnoticed but a significant hidden cost to an organisation is the failure to ensure that it regularly reviews how its business is structured and delivered.

In the short term our priority must be to focus on our core business, our customers, to make sure that

we continue to provide a strong andstable foundation on which to build and grow.

Outstanding customer service is paramount and both for today and tomorrow we must ensure that it is underpinned by first class support services.

The alignment of staff, property and technology is important as we move into a world with greater numbers of older people who are more proficient in the use of technology and who will be significantly influenced by how organisations interact and engage with them through its use.

We must also concentrate on delivering the targets set for us by the Scottish Housing Regulator, which are designed to ensure that we meet our residents’ priorities, setting higher targets than ever before and driving through continuous improvement.

It promises to be a busy year, but at the end of it we will emerge as a stronger, more focused organisation able to meet the challenges to come.

Helen Murdoch,Chief Executive

Michael Martin,Chairperson

Our Six Commitments

We will provide well designed, well maintained, affordable, warm, modern housing.

We will find simple and practical solutions that make a real difference to the lives of our customers.

We will build positive and lasting relationships with our customers and stakeholders.

We aim to exceed our customers’ expectations and to provide high quality, personalised services that enhance their quality of life.

We will be creative and will continually look for new ways of working which add value and develop our people.

We will be passionate about housing and support, which are at the heart of an active, healthy and connected community.

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Property

Over the year we have worked in partnership with the local authorities and the Scottish Government to add 32 new amenity houses for older people to our stock at Corpach, Giffnock and Troon and one general needs property at Corpach.

We continue to implement our asset management strategy to ensure that our housing stock remains fit for purpose. Hanover Court in Forres is currently being demolished and will be redeveloped into 32 extra-care and dementia units. Hanover Court in Elgin will close later this year and proposals to redevelop the site with 18 amenity and 3 wheelchair bungalows have been well received.

We have a significant presence in Moray where we are the main provider of housing for older people. In order to ensure that we continue to meet the outcomes sought by Moray Council and Moray Health and Social Care Partnership, we undertook some detailed research. This concluded that there is a strong demand for sheltered and very sheltered housing in Moray, and that this demand is expected to increase over the next 20 years. This supports our current and proposed building plans for the area.

Coffee morning at Chandlers Court, Elgin

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A major redesign of our sheltered housing development at Rosewell Gardens in Aberdeen is underway with work being undertaken on the roof, render, heating systems, boiler plant, pipeworks and landscaping.

Following the successful installation of a biomass boiler at Corpach, a further three are being installed at Newtonmore, Kingussie and Tarves. These wood-fuelled boilers will provide heating and hot water with anticipated savings of up to 40% on fuel bills.

Steady progress is being made towards achieving compliance with the Scottish Housing Quality Standards (SHQS) by March 2015, with the 382 properties currently failing the standard included within the 2014/15 planned maintenance programme.

We are also undertaking a full review of our voids management process, with the emphasis on establishing a practical way to manage the re-let process.

The Scottish Government has set new Energy Efficiency Standards for Social Housing (EESSH) which must be met by all social landlords by 2020. Energy efficiency certificates are already compiled by RSLs and by the end of 2014 we will have a certificate for every property. This will enable us to determine how many properties will not meet the EESSH. We will then develop a strategy to bring these properties up to standard where it is economically possible.

Holmehill Court, Dunblane

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People

Our commitment to providing excellent customer care remains our key priority and in support of this we are rolling out a programme of customer services training.

We undertook a customer satisfaction survey of all our residents in December 2013 as part of our data gathering for the Annual Return to the Regulator (ARC). The overall response rate was excellent at 51.5%, with 91.2% indicating high levels of satisfaction with the service we provide.

We have reviewed our operational staffing arrangements for dealing with repairs and this has resulted in six staffbeing transferred from our Property and Development Department to the Housing and Care Services Department. This will enable us to provide an improved service to our customers.

Our staff remain our most important asset. From the 1 April 2014 we have introduced the Living Wage, and are one of the first RSLs in Scotland to do this.

We are closely monitoring and managing our pension arrangements and are pleased to note that there has been a high level of uptake following the introduction of pension auto enrolment in November 2013.

We have once again secured an Investors’ in People award and a Bronze Award for Healthy Living. We have also achieved accreditation for Investors in Diversity and retained our Telecare Services Association accreditation.

Quote by Gill McCaw, Investors in People, Scotland:

‘Once again I enjoyed my visits to Hanover developments and meeting different people in Head Office. Feedback demonstrated that you continue to understand how engagement drives your business results, aligning business strategy, increasing communication and developing an inspiring vision for the future. You ensure that your people are equipped, informed and involved, and are encouraging accountability and autonomy while consistently demonstrating a leadership style of trust and respect.’

There have been a few changes in the Committee of Management and we would like to extend our thanks to outgoing committee members and in particular Dr Isobel Fowler, who retired from the Chair in March 2014. We would like to extend a warm welcome to our new committee members who between them bring a wealth of experience to Hanover.

Friary Court, Inverkeithing

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We have been actively engaged with the Scottish Government and ministers in the development of the Public Bodies (Joint Working) (Scotland) Bill, which underpins the integration of health and social care.

Following vigorous lobbying by Hanover, Bield and Trust, a late amendment was made to the Bill referencing the key role of housing in the integration process.

Our integrated housing support and care at home service at Chandlers Court in Elgin has successfully completed its first year of operation and feedback from residents has been very positive.

This follows on from the success of providing a similar service at Morris Court in Dalry, which is now in its third year of operation. The most recent inspection gave it the second highest rating level and a contract has been signed with the Council for a further year of operation.

We are keen to develop this new typeof integrated service and we are working in partnership with Scottish Borders Council to develop a similar integrated service at three of our sheltered developments. Early and very positive discussions are also taking place with Perth and Kinross Council.

Over the course of the year, we have developed a close working relationship with the Royal Air Forces Association (RAFA) which has resulted in us taking over the management of RAFA’s sheltered housing development in Moffat for an initial one-year period.

Services

Friary Court, Inverkeithing

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Chandlers Court was designed to provide very sheltered accommodation with 25 flats for frailer older people. It has a day care centre which allows residents and external users to receive day care services. Following discussions with Moray Council, Hanover is now providing a new integrated housing with care service here with Support Assistants based on site.

Housing support and care at home services

Chandlers Court, Elgin

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‘I know about Hanover due to my background. My health was deteriorating and I was caring for my husband. I received a good home care service from the council where I lived before, but I was on my own. Now I’m here I have the company of my neighbours and the girls that deliver the package are close by. I didn’t realise what a positive effect this would have, but I couldn’t do without it now. I just press the buzzer and they come so quickly. It’s terrifically reassuring knowing there is help at the touch of a button.’

Myra Mylne

Myra was a community nurse for 25years.

‘The service here is amazing. It helps me to relax knowing the Support Assistants are close by. One of the big groans I have is the medication changes. Manufacturers change the colour, type or name of medication and it gets very confusing. But I know my carers will ensure I get the right things no matter what. They also help me to get dressed – I could probably do it myself at a stretch but I’d be exhausted. I like that I know who the carers are. It’s good for them as well – they know us and have all the information they need. Living here combined with having our carers so close is such a positive thing – the best of both worlds.’

Christina Sedgwick

Christina moved to Chandlers Court after her husband died. Her health has deteriorated and she now receives a care package. Her flat has a number of features to assist independent living.

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‘Before the new service, our carers would be off out into the countryside to look after different people. They’d do lots of driving. Now they are all in the building

– there is a dedicated staff team which is great. I know them all which is very reassuring. My family are really happy they are close at hand. I just press the buzzer and they come. It couldn’t get any better than it is now. This should be done all across Scotland’.

Jean has lived in Chandlers Court for 10 years and prior to that attended the day care centre. She is now in a wheelchair and receives help with washing, dressing and medication.

Jean Henderson

2019

‘The new arrangements are much easier. You are under the same roof as your clients. The care team share information more effectively and you are not in and out of the car in all weather. I used to work from 8.30am to 1.30pm and would see six or seven clients. I now see the same amount in a much shorter space of time. If you visit someone and they forget to mention something, they can buzz us and we will be straight there. Before it would have been the next day before someone would see them again. It reduces worry. When we were out and about more we’d meet around once a month to discuss specific issues, now we can implement improvements or changes quickly and effectively. It reduces workloads and increases service quality.’

Claire has worked at Chandlers Court since the service started and previously delivered the Council-run service when she worked directly for the Council.

Claire Mckenzie, Housing Support Assistant

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As part of our continuous monitoring of our operating environment and to help us to continually improve our performance systems and practices, we benchmark our performance against a range of other housing services across Scotland and specifically against similar organisations who provide services for older people, other groups with specialist needs and those who operate across a wide geographic area.

Above average customer satisfaction levels, low rental costs, the best arrears management in the group and a below average housing-to-staff ratio indicates that overall we operate an efficient business delivering high quality services at an affordable rate.

The analysis has also identified learning points which we are seeking to address. We will identify members of the group who are performing well in these areas and actively engage with them to identify best practice.

Performance

Listening to information on performance

During 2013/14 we performed very well providing a service which delivers good value for money and high customer satisfaction

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Financial Statement

We have reported an operating surplus of almost £3m at the end of the financial year 2013/14, compared to the surplus of £2.8m last year. This was £200k less than the budgeted surplus of £3.2m and represented 10% of turnover. The surplus for the year, after interest charges on loans, was £2m.

Total repairs and maintenance expenditure, including capitalised maintenance, in the year was £8.1m compared with £7.6m last year. This demonstrates our continuing commitment to investing in existing stock and includes a sum of £383k onadaptations to 168 properties.

The Committee of Management considered the financial results for the year ending 31 March 2014 to be good and demonstrated the financial strength of the organisation.

Our total income for the year was £29.1m. We continue to meet the challenges of housing support finance reductions in public sector spending, combined with higher than average long term maintenance expenditure.

At the same time affordability is important to our residents and we were very pleased to be able to increase rents by only 2.5% for 2014/15; one of the lowest increases in the sector. This position will continue to be monitored closely to ensure that we are able to deal with changes as they occur.

On the basis of the assumptions used in the projections of income and expenditure, longer term plans over the next 30 years offer a satisfactory picture of viability.

Ideas about how to improve our services

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Income and Expenditure AccountFor the year ending 31 March 2014

Turnover Less: Operating CostsOperating Surplus

(Deficit)/Surplus on disposal of assets Interest receivable and other income Interest payable and similar charges

Surplus on ordinary activities before taxationTax on surplus ordinary activitiesSurplus on ordinary activities after taxation

28,364(25,532)

2,832

25154

(968)

2,043(6)

2,037

29,091(26,138)

2,953

2192

(934)

2,132(1)

2,131

2014£’000

2013£’000

182,459

(140,782)

41,677

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6,143

47,871

4,755

52,626

(18,725)

33,901

(1,257)

32,644

–

18,280

15,621

(1,257)

32,644

Fixed Assets

Tangible fixed assets:

Housing properties: Cost less depreciation

Grants

Fixed Asset Investment

Other tangible fixed assets

Current Assets

Debtors

Cash at bank and in hand

Current Liabilities

Creditors: Amounts falling due within one year

Net Current Assets

Total Assets Less Current Liabilities

Creditors: Amounts falling due after more than one year

Net Assets Before Pension Liability

Pension Liability

Capital Reserves

Shares Capital

Designated Reserves - Major Repairs

Revenue Reserve

Pension Reserve

1,457

8,247

9,704

(4,949)

185,090

(140,522)

44,568

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6,361

50,980

3,283

54,263

(18,166)

36,097

(1,413)

34,684

–

18,281

17,816

(1,413)

34,684

1,475

6,711

8,186

(4,903)

£’0002014£’000£’000

2013£’000

Balance Sheet as at 31 March 2014

We spent over £10 million on our properties in 2013/14 and this was how it was spent.

£2.346m

£1.032m

£1.406m

£0.530m

£4.753m

Responsive

Cyclical

Planned

Capitalised Replacement

Adaptions

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Dr Isobel Fowler BSc DAcad FRSAMD FRSA (Chairperson) (retired 31 March 2014)

Michael Martin (Chairperson) (elected 1 April 2014)

Gary Devlin ACA CPFA (co-opted 26 September 2013) Wilma Dickson CBE PhD

Derek Fothergill (elected 26 September 2013)

David Griffin FRICS (elected 26 September 2013)

Dr Anne Hendry (elected 26 September 2013)

Ann MacDonald MCIH (elected 26 September 2013) Anne McCamley BA LLB NP

Robin McGregor LLB (Hons) DipLP NP CA (resigned 28 November 2013)

Hugh Mitchell FCMA CGMA FCCA (resigned 4 July 2013)

Geoffrey Palmer Kt OBE DSc

Dr Alison Petch

Alan Savage

Barbara Walton BSc CA (retired 26 September 2013)

Brian Watt MD FRCPath FRCPE (retired 31 March 2014)

Roger Williams

Catherine Wyllie BA CA (elected 26 September 2013)

Committee of ManagementCommittee of Management

Team meeting

Helen Murdoch MBA FCIH MRICS ACIPDChief Executive

Andrew Aitken FCIPDDirector of Human Resources

Graham Bennie Acting Director of Property and Development

Gregor Booth BA (Hons)Director of Housing & Care Services

Colin Gibson FCMA CGMA CIHM (retired 31 March 2014)Director of Finance & Risk Management Services

Bruce Laing BSc MRICS (resigned 25 July 2013)Director of Property & Development

Karen McIntosh FCCA Acting Director of Finance & Risk Management Services

Christopher Milburn BA (Hons) MBCSDirector of Business & Communications

David Reid LLB ACISCompany Secretary

Officers

Helen Murdoch with committee member Geoffrey Palmer

Head Office95 McDonald RoadEdinburghEH7 4NS

Tel: 0131 557 0598Fax: 0131 557 1280Email: admin@hsha.org.ukwww.hsha.org.uk

McDonald RoomsHead Office, Edinburgh

Tel: 0131 557 7479Fax: 0131 557 1280Email: conference@hsha.org.ukwww.hsha.org.uk/conference

Telecare CentreHead Office, Edinburgh

Tel: 0131 557 7488Fax: 0131 557 7489Email: telecareinfo@hsha.org.ukwww.hsha.org.uk/telecare

Care at HomeHead Office, Edinburgh

Tel: 0845 600 3659Fax: 0131 557 1280Email: careathome@hsha.org.ukwww.hsha.org.uk/careathome

North Area Office12 Institution RoadElginIV30 1QX

Tel: 01343 548585Fax: 01343 549519Email: northinfo@hsha.org.uk

East Area OfficeHead Office, Edinburgh

Tel: 0131 557 7404Fax: 0131 557 7475Email: eastinfo@hsha.org.uk

West Area OfficePavilion 5 (Ground Floor)Watermark Business Park345 Govan RoadGlasgowG51 2SE

Tel: 0141 553 6300Fax: 0141 553 6329Email: westinfo@hsha.org.uk

For further information, contact us at: