Five Year Business Plan - forumhousing.co.uk€¦ · Five Year Business Plan 2016 – 2020 4 | Page...

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�Five Year Business Plan

Forum Housing Association 2016 - 2020

Five Year Business Plan�2016 – 2020

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Contents

Page

1) Executive Summary 3

2) Vision & Strategic Priorities 4

3) Key Priorities 5

4) The Next 5 Years 7

5) Major Influences 8

6) Partnerships 10

7) Service Delivery 11

8) Financial Assumptions 12

9) Risk Based Approach 14

10) Board Skills, Renewal and Review 15


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EXECUTIVE SUMMARY

For the past 47 years Forum Housing Association has provided supported housing services for young people. We pride ourselves on wanting to improve the lives of our residents by providing a good standard of accommodation, working alongside them every step of the way, providing options and opportunities for their futures. We do this through strong leadership and a highly skilled, caring, dedicated Board and workforce. We are a Christian organisation who are guided by our caring Christian ethos and principles which are integral to our business success and we would not be who we are without it. It underpins everything we do as an employer and as a provider of services to vulnerable people. We recognise that in order to be successful we must stay true to our mission, our values, ethos and the foundation we are built upon. Our aim is to help young and vulnerable people be the people they want to be. We will be socially responsible and mindful of the political agenda locally and nationally, helping to shape the future for our residents. We are committed to the 5 strategic priorities supported by our key drivers in order to move the plan forward. In order to achieve our priorities and become more efficient and responsive, we aim to improve service delivery by modernising our practices to meet the needs of vulnerable residents in the communities that we serve. The plan also identifies the different challenges that may impact on the development and delivery of services. It outlines the Association’s activities and initiatives that the Association plans to undertake and achieve over the next 5 years. It is supported by our priority budgeting and risk based approach to all of its activities and functions. As you will see from this plan, moving forward is a key ambition for Forum Housing Association. We are aiming to bring about real change for our residents working together with stakeholders and partners to ensure viability and sustainability. Progress on the delivery of the Business Plan will be regularly reported to the Board and relevant committees.

Debbie Thompson, Chief Executive

Patrick Smith, Director of Housing and Business

Development


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Vision And Strategic Priorities

Forum Housing Association is committed to delivering homelessness services with the best possible outcomes to a number of vulnerable groups across the boroughs in which it operates. The Association recognises that its caring Christian ethos is integral to its business success and this underpins everything that the Association does as an employer, provider and partner. In order to deliver our continual success the Association recognises that it needs to be in a position to meet future demands while remaining flexible enough to respond to the challenges that it is going to face over the next 5 years. STRATEGIC PRIORITIES

- Deliver efficiently against contracts - Develop organisational capacity - Develop business growth initiatives - Enhance our position & profile in a challenging environment - Manage risk

Our Vision and Priorities


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Key Priorities

In order to deliver on the strategic priorities over the next 5 years the Association has set out a number of key drivers which need to be delivered against in order to ensure success. FINANCE

- Our Finance Strategy will reflect the current economic challenges facing the Association by delivering value for money on current contracts and to work with partners and the staff team to reduce void levels and bad debt, and to maximise support and none support income streams. SAFEGUARDING

- To ensure we operate in a safe environment and to protect all residents, staff and stakeholders.

SERVICE DELIVERY

- To develop and deliver improved models of service delivery across all the boroughs and to all ranges of vulnerable homeless groups that we support. STANDARDS

- In order to meet the needs of our vulnerable client groups, the Association will deliver value for money works to a range of owned units of accommodation and will develop options for move-on and growth with the utilisation of a number of managed units of accommodation. Under the Housing Management umbrella the Association aim to deliver on a range of accommodation standards of all property utilised by the Association in the delivery of its service. BID TEAM

- The Association will develop its Bid Team in order to be able to competently compete for a range of commissioned and other bids that fit with the aims and ethos of the Association.


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PARTNERSHIPS

- To build on current and to develop a range of new partnerships in order to position the Association to be able to meet the needs and growth opportunities as an organisation. RISK

- To ensure that all risks are discussed openly and managed effectively, and that the Association is risk aware rather than risk averse.

MARKETING & PROMOTION

- The Association will develop its marketing and promotion activities in order to further position itself as a provider and voice for homelessness in all the areas in which it currently or aims to operate in.

Delivery for Success


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The Next 5 Years

The political and economic landscape nationally, regionally and locally is changing with shrinking resources that will impact on how the Association operates. The Association will respond to the increasingly challenging economic pressures which are being driven by political, financial and demographic factors by seeking innovative ways of delivering high value, low cost services in partnership with funders and stakeholders. Flexibility together with the ability to react quickly to changes and opportunities over the next 5 years are crucial if the Association is to meet the challenges ahead. External factors such as a reduction in support contract funding, the need to secure alternative funding and accommodate a wider range of client groups together with the uncertainty around the future of housing benefit levels are real and on-going pressures that need to be faced. This 5 year plan needs to allow the Association to meet these challenges while allowing for the flexibility to adapt to these and other potential changes as they become known.

Planning for the Future


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Major Influences

FINANCIAL INFLUENCES It is anticipated that there will continue to be a number of internal and external financial pressures on the Association’s income streams.

- Voids - Bad debt - Support funding - Housing Benefit levels - Grant income - Rent Restructuring

It is imperative that these pressures are monitored, reviewed and managed effectively if the Association is going to develop. POLITICAL INFLUENCES Pressure on a local and national basis can be seen to significantly influence how the Association operates. On a local level, funding levels will continue to effect the Association with funding pots being reduced or diverted to other holders who may have a number of priorities to meet and manage. On a national level, the Government’s agenda to include supported housing residents within the Universal Credit system could see the abolition of Housing Benefit for working age people. This, together with the plan to extend the Local Housing Allowance (LHA) cap to the social rental sector, would have a major impact on the resources of the Association.

Ready for the Challenge


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The national agenda around rent restructuring with the imposed 1% reduction is Housing Association rents over a ¾ year period, again has a negative financial impact.


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Partnerships

The Association approach to partnership working is tied into our values and ethos as a Christian organisation with an open and transparent working arrangement in place. The Association will look to develop external relationships with current partners while building new relationships with like-minded, relevant and proactive stakeholders who can work with the Association to deliver a quality lead, cost effective service. Financial and political changes and challenges will affect all stakeholders, so it is imperative that the Association continues to work with and build new relationships with quality lead, viable and sustainable stakeholders in the boroughs in which it operates.

Working Together to Build a Future


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Service Delivery

As internal and external pressures impact on the Association over the next 5 years and as the Association plans to address these challenges in-house and externally it will be imperative that the service it offers meets a range of agendas and requirements. Funders will be looking for the Association to develop models of low cost, compliant and innovative service delivery. Partners will look to work with the Association in an open and transparent manner to ensure compliance and quality is implemented, embedded, reviewed and developed. Stakeholders will look to the Association to live by its values and ethos as a Christian organisation to deliver meaningful outcomes for its residents to enable them to create a brighter future for themselves.

Services that Create Brighter Futures


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Financial Assumptions

The following financial assumptions have been made as far as practicable over the next 5 years. Support contract funding accounts for approximately 50% of the

Association’s current income and is likely to reduce on the Wirral in 2017. The Business Plan has factored in a reduction as from August 2016 of

21.8% and a reduction in 2017 of 19.0%. Intensive Housing Management (IHM) as from January 2017 will bring in

additional income for the Wirral based accommodation.

For the purpose of the Business Plan it is assumed that the potential plan to extend the Local Housing Allowance (LHA) as from April 2019 to the social rental sector does not occur. The Business Plan allows for a 1% reduction on rents per annum for the next 4 years 2017 – 2020, with a bad debt level of 1.5% per annum.

Contracts currently in place in the Wirral and CWAC boroughs are both potentially up for review over the length of this Business Plan.

Wirral contract expected review date April 2017 but this could be extended. Current contract figure of £897k could potentially be reduced, lost or extended, depending on how the bid lots are drawn up and allocated. For the purpose of this plan and taking a conservative view, a potential loss of £170k has been estimated as from April 2017.

The current CWAC contract of £454k was won on a 3 year up to April 2018 basis with the potential for a plus 1 and another plus 1 year extension, both depending on political and financial factors.

Delivering Value for Money


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Again the current contract could be reduced, lost or extended with the potential joining up of other housing related contracts which are also due to end in April 2018.

For the purposes of the Business Plan it has been assumed that the

contract is brought to an end in April 2018 and that the Association retains a revised contract with the same net value being attributed to the Association and other aspects of the contract being carried out by partners. If additional contracts are secured, then the associated costs will also be inherited. However, only contracts which will improve the Association’s financial viability will be sought.

MISCELLANEOUS

Further to the above financial assumptions considered there are a number of other areas of activity that need to be considered. - Rent of leased buildings in Sefton. For the purpose of the Business

Plan it is assumed that this rent is covered as from 2017.

- Cost of leases for Head Office. For the purpose of this Business Plan it is assumed that an on-going annual saving of £65k is secured.

- Securing of leased property in CWAC for use by the Association and its subsidiary FENW, in line with contract termination dates. For the purpose of the Business Plan it is assumed that an annual income for the Association is secured of £160K per annum on these leased units.

Void levels - For the purposes of this Business Plan it is assumed, in

line with annual budget levels, that voids levels are measured at 5% per annum for the first 2 years of the plan. There after they are measured at 2.5%.

Bad debt levels - For the purpose of this Business Plan it is assumed

in line with annual budget levels, that bad debt levels are measured at 1.5% per annum.

Pay awards - For the purpose of this Business Plan it is assumed

that pay awards are capped at annual 1% increase to all staff on the living wage.


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Risk Based Approach

The Association has a risk based approach to all of its activities and functions. This approach is based on managing risks rather than being risk averse. The need to manage risk across all aspects of the Association is imperative to the on-going running, viability and sustainability of the Association. Areas across the board include:

Governance Finance Service Delivery Health & Safety Safeguarding Standards

Risk across the Organisation is maintained, reviewed and managed both on an operational level, at a range of function specific meetings and at a strategic level at SMT, Executive and Finance meetings, and also at the R&A Committee and Board.

Risk Aware not Risk Averse


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Board Skills, Renewal and Review

The Board will ensure that it is made up of a range of people with the required skills, qualifications and attributes, which balances the need for experienced Members with that for new thinking and independent challenge. Recruitment to Board vacancies must be open and transparent and based on the skill gap required in order for the Board to carry out its function. The core purpose of the Board is to determine vision and strategy, direct, control and scrutinise the Association’s affairs. The Board will hold Association officers to account for the operational management of the Association. The Chair of the Board will ensure that regular appraisals of its Members occur on an annual basis.

Governance Matters

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