Business & Finance Plan
Transcript of Business & Finance Plan
Business & Finance Plan
MISSION
VALUES
OBJECTIVES
STRATEGIES & PLANS
OPERATIONAL TARGETS / BUDGETS
OPERATIONAL PLANS - TEAMS
INDIVIDUAL STAFF PLANS AND TARGETS
Business Planning Framework for...
Operational Strategic
Board & Tenants
Tenants & Staff
THE PIONEER
WAY
Group Business
Plan
Modernising Governance & CBS Rules Core
Business Priorities
Demand / Marketing
Re-Financing
VFM
De-regulation
Stock Condition
(SCS)
Rent reduction / Policy post
2020
LHA / WR / UC
(Income)
Staff Resources
Growth (MSCP &
Empty Homes)
Business Plan Factors
Our Mission
“Working Together Towards a Better
Place to Live”
Business Plan Values Ashton Pioneer Homes’ staff and Board Members are committed to working together to achieve the organisation’s strategic aims. We have identified the following values, which underpin everything we do: Respecting and valuing people Being open, fair, ethical and accountable Leading by example and inspiring others Being innovative and inventive Having passion and commitment in all that we do Delivering quality and value in our services Being responsive to customers, neighbourhoods and
communities Being operationally excellent and continually
improving
Corporate Objectives To improve the quality of life for residents
by understanding their needs, promoting diversity, ensuring high customer satisfaction and maximising involvement opportunities
To be a high quality, agile and efficient organisation that out performs the Business Plan
To continuously improve by managing, developing, communicating and by sustaining our assets to maximise our potential
Excellence & Improvements
“Seeking to deliver quality, efficiency, sustainability and VFM across all our activities and services”
(Deliverable 2016-18)
The 4 C’s for APH
QUALITY
COMMITMENT
COMMUNICATION
CO-OPERATION
CONSISTENCY
Context for APH
1. Politics 2. Economy 3. (De-) Regulation 4. Environment & Energy 5. Market
Politics Government perspective better / Less
ideological positioning / GM Devo Government policy implications e.g.
welfare reform / LHA impacts – UC timescale for roll-out - massive income and demand / resource implications What people think of us - improved? New homes provision v Post 2020 rents Local, GM and national messages?
Economy Inflation on the move / Low growth in the economy Low grant levels for new-build alongside Empty
Homes and Commercial to residential options (allocations secured)
Rent reductions continue / Living Wage / NI / interest rates / Council tax rises / Regulatory costs / re-financing / market rates critical
Government focus on austerity, cost cutting, yet still want new supply, employment and health outcomes
Measures (some) required for APH: - “ Rent first” and debt management remain a priority - Growth (empty homes and Off the Shelf) - DPF - Exempt Charitable status / services
De-Regulation (6/4/17) ONS – new decision on public / private
designation Drive for home ownership – demand, decisions /
allocations HCA changes to return HAs to private sector Review of HCA / Removal of consents to merger,
transfer of engagements & disposal of interests (including financing) (Boards- clause 92)
Move to CBS, 2015 charitable rules will still require consents but new regime 6/4
Voluntary RTB – long grass?
Environment & Energy Fuel prices are still an issue for tenants Consumption of energy is rising not falling CO2 emissions nationally are not meeting targets Renewable energy opportunities limited Action taken to improve the energy efficiency of
our homes (good SAP ratings) boilers, windows, EPCs etc.,
Pilots for energy efficiency products are costly and do not save HA money
No longer valued – e.g. removal of design code standards; added value or wasted money?
Market Demand for APH homes and services exists - yet Gov’t policy is deterrent to customers Policy framework remains anti-social renting with
client groups targeted through policies e.g. welfare reform / UC / LHA, all impact demand Demise of grant and rent control undermines new
provision RTB / RTA / VRTB will reduce availability of homes Rent reduction will reduce new provision, range of
support and services from sector Discount funding – less alienation of Local Gov’t Costs of new provision are high relative to rents
BP focussed around consistent themes
1) Tenant Involvement & Empowerment 2) Home Standard 3) Tenancy Standard 4) Neighbourhood & Community
Standard 5) Value for Money 6) Governance & Financial Viability
1) Tenant Involvement & Empowerment
Deliver on the CSS Action Plan following the CSS in 2016 Update Resident Involvement Strategy (by Dec 2017) Develop and grow the new constituted Tenants Panel Work with the Tenants Panel to deliver actions from the
Tenant Insight Survey Continue to resource the Tenants Base to focus on digital
exclusion and financial exclusion Continue to work with tenant groups and wider volunteer
group to address social exclusion Work in partnership with Action-Together to support
volunteer groups. Explore funding opportunities with local community groups
2) Home Establish performance systems to ensure effective use of the in-
house repairs & decoration service (by Sept 2017) Maximise expenditure on planned & cyclical (incl. capital) to
reduce responsive demand (ongoing) Review the CSS on Repairs service and provide / deliver an
improvement plan (by Dec 2017) Extend and monitor the use of the appointments system for the
repairs service (by Sept 2017) Manage and deliver phase 2 - tower block render project (by
Mar 2018) Deliver Concierge & CCTV upgrade programme (by Dec 2017) Develop stock condition data systems (SASSHA) and update
the quality of intelligence on condition (by Dec 2017) Define a priority led planned programme aligned with
available funds (by Jun 2017)
3) Tenancy Standards Develop an intelligence led housing management service to
target recourses via SASSHA and in partnership (i.e. Experian) Review tenancy strategies & tenancy agreements whilst working
closely with CHA(NW) partners developing a common policy framework
Rent First focus on collection rates for rent and service charges including overall debt management through the Debtor group
Develop a marketing strategy which improves potential customer awareness and the lettability of APH homes using cost / benefit models
Develop our rent and service charge communication with tenants to improve (by Oct 2017)
Develop WRO resource to deliver targeted rent and money advice service to tenants as well as enhanced cascaded training for staff (by Jun 2017)
4) Neighbourhood & Community Continue to sustain a prompt 24/7 response service on
ASB in accord with our ASB policy Continue to deliver advice surgeries / signposting / out-
reach base on housing, training, employment, health etc.
Continue to develop / expansion of neighbourhood services role contribution (arrears / debt chasing / ASB matters)
Maximise the use of enhanced Concierge / CCTV facilities to improve communication & support NSA role
Develop wider use of all staff in asset data collection (SCS) and make every contact count
5) Value for Money Continue sole / collaborative VFM procurement for services
(ongoing) Develop Return on Assets Model to assist investment decisions (Mar
2018) Work with Acuity to develop Sector Scorecard to inform VFM (by
Mar 2018) Make best use of Experian software to rent first support & advice
and enable the more effective targeting of resources Upgrade IT hardware and software to improve functionality ,
expanding mobile working incl. remote inspection and SCS input Enhance service charge information for tenants, promoting VFM
efficiencies as identified in the CSS (Oct 2017) Review treasury management framework (Sept 2017) Enhanced VFM statement (July 2017) Focus on maximising income collection through tenancy support
and action on default through Debtors’ group (ongoing)
6) Governance & Financial Viability Deliver transition to Community Benefit Society (by June 2017) Adoption of new CBS Model Rules (by June 2017) Deliver re-financing with Santander and GBSH and a long term
financial model for the Association (by July 2017) Define new operational Standing Orders for APH (by Aug 2017) Develop BRIXX software to stress test market and sector changes Ensure covenant compliance, managing I & E impacts, especially UC,
Direct Payments and stock investment (Ongoing) Define sets of performance data for both new covenants and
performance management / incl. monitoring of LHA / WRA impacts Staff satisfaction survey (by March 2018) Rationalisation of KPIs to reflect the new Acuity Sector Scorecard, key
performance issues, year end out-turns and review / amend in year (by Sept 2017)
Develop new Risk Map / assess Risk Appetite for APH (by Dec 2017)
Themes for 2017/18 Plan De-regulation: Governance & code compliance Significant threats; LHA, UC, 2020, Dir. payments Income collection, arrears control and debt
management are critical – Rent First principle Managing demands and delivering efficiencies
with limited staff resource (sweating assets) Consulting tenants on and delivery of the CSS
Action Plan Contingency planning and budgeting focus for
corporate plan / stress testing etc Growth opportunities (empty homes / services)
Themes for 2017/18 Plan Staff retention, Development & Wellbeing Employment initiatives / Apprenticeships IT – maximising benefits (payments / SCS) Gov’t policies / implications (incl. clause 92) Stock Condition, GDX, CCTV & Render projects Stronger focus on internal audit response Direct services extension (R&M) Collaboration opportunities CHA (NW) Sustaining the Business, tenants & staff Life as a charitable Association
Economy is: Obtaining resources (human, material, and so on) at
best value, taking both price and quality into account Minimising the costs of resources used within the
company, but having regard to quality. Efficiency is: Delivering the same level of service for less cost, time or
effort. The relationship between output (in terms of goods,
services or other) and the resources used to produce them.
Effectiveness is: Doing the right thing at the right time The extent to which objectives have been achieved.
Income 2017-2018 £6,730,960
Rents £3,709,120
Services £716,775
Phone Masts
£41,535
Management £46,855
Interest £5,685
Grant & Owners Empty Homes
£1,840,385
Grant Income
£271,910
Other Income
£98,695
Expenditure
2017-2018
£8,199,930
Loan Repayments
£0 Other
Cap8ital £3,758,985
Rent Loss
£118,410
Staffing
£861,350
Board Costs
£68,570
Office
£241,470
Housing
£134,625
Services
£601,595
Maintenance
£533,000
Finance
£145,285
Loan Interest
£575,000
PHSL & New
£286,355
Depreciation £875,285
17/18 18/19 19/20 (£) (£) (£)
COMPONENTS 100K 100K 600K RENDER 1.926M 100K 0M WINDOWS incl. 0K 0K BALCONIES incl. 0K 0K ROOFS incl. 0K 0K GDX 330K 12K 0K EMPTY HOMES 1.275M 225K 0K SALARIES 37K 37K 38K
Assumptions included in the Budget and Finance Plan are: - 1% rent reduction for the next 3 years No increases to Car Park or Furnished properties. capital works still subject to tender results Additional income for the new phone masts. Revenue upgrades for Sageline 200 and additional
software Major Empty Homes projects actually starting 1% plus £300 bonus included in salary costs per 16/17
Inclusion of additional recruitment costs for DOFA role.
Inclusion of £10k for possible disrepair claims in legal expenses.
Additional consultancy charges for a stock condition survey (£10k), Experian (£6k) and marketing consultant (£6k)
Known costs of re-financing are included where appropriate.
£65k included for IT upgrades to develop the system of back-ups onto the Cloud base, and replace some servers.
Pressures are still on us despite our good performance whereby the Company continues to have Operational Surpluses The new funding will occur in Quarter 1 and is priced
into the Finance Plan securing our financial base for the foreseeable future. No account of Corporation Tax is included but
delays on conversion to a CBS may incur costs not budgeted. Activities on the management of the Multi storey car
park are minimal pending agreement of a budget with TMBC.
The efficiencies arising from the recent exercise have set a stronger foundation for the future
The new Budget and forecast for 2017/2020 continues to be prudent yet robust enough to meet our requirements
The amounts in the Finance Plan facilitates the delivery of the Business Plan over the next 3 years
The completion of the re-financing and conversion to a CBS will secure the future of APH