GHA Annual Report 2009_10

8/3/2019 GHA Annual Report 2009_10

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Our Story

Better homes, better lives

Glasgow Housing Associationwww.gha.org.uk

Glasgow Housing Associationwww.gha.org.uk

Annual Report and Accounts 2009/10


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ContentsOur story 03 Chairs Report04 Chie Eecutives Report

05 Operating Review

11 Better homes

17 Better lives

23 Better Glasgow

28 Financial Review

The last year has been the most importantin the history o Glasgow Housing Association.

A new GHA has emerged during this landmarkyear: a GHA that is closer to its tenants and

actored homeowners, closer to its communitiesand closer to key stakeholders, such as GlasgowCity Council and the Scottish Government.

Glasgow Housing Association Annual Report and Accounts 2009/1001 Glasgow Housing Association Annual Report and Accounts 2009/10


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Chie Executives ReportChairs Report

What a year! To describe 2009/10 as an importantand exciting year in t he history o Glasgow HousingAssociation is not to do it ull justice.

It was a year in which a new GHA emerged: a GHA thatset out on a journey to become even closer to its tenantsand actored homeowners - and to key stakeholders.Very importantly, it was the year in which our uturedirection was agreed with tenants and key stakeholders,including Glasgow City Council and the ScottishGovernment.

In highlighting the many changes that have taken place,I would like to pay tribute to the Board and Executive teammembers who let GHA. In particular, I would like to thankormer vice-chair Fred Shedden and ormer chie executiveTaroub Zahran or their outstanding commitment,dedication and contributions.

GHA is not and never has been about simply bricks andmortar. The real GHA is the 2000 housing ocers and closecleaners, clerical assistants and concierges, managers anddirectors, customer-service advisors and neighbourhoodocers - and all o their colleagues - who care passionatelyabout what they do, every day, to improve the lives opeople in Glasgow.

The real GHA is also the LHO committee members andtheir chairs, who give up hours and days o their owntime without nancial reward - to make sure GHA livesup to its promises to create better homes, better lives.It is also the GHA Board who also give unstinting, unpaidcommitment in setting our strategic direction.

The past year has proven that tenants are at the hearto everything we do. As our new service and governancestructures have been put in place, the infuence o tenantsand actored homeowners has become even strongerand more deeply embedded. There were great turnouts

at every chairs and committee members conerenceas we debated and decided on what kind o GHA wasneeded going orward.

Four new Area Committees, based on Glasgows StrategicPlanning boundaries, will be put in place through our newgovernance arrangements. We have also expanded andempowered rontline services and slimmed down headoce in overhauling our organisational structure.We also signed up to the new LHO/GHA Tenants Charter,a new ormal agreement between GHA and LHOs thatputs tenants at the very heart o decision-making.

What has emerged is a GHA that not only puts our tenantsand actored homeowners rst, but also one that is gearedto delivering excellent housing and community servicesin 2010 and beyond. This is in addition to completing all othe promises made to tenants at the time o stock transer.

Our rst priority will continue to be to provide warm, dry,sae and comortable homes to the people o Glasgow.But there is so much more we can do. For instance, the

new GHA can make a real dierence to peoples lives bycreating, with our partners, jobs and training opportunities.In the last year, we helped 702 people into employment -325 o them through our investment and revenue contracts- and another 347 through other projects, as well as30 through our new modern-apprenticeship scheme.

We also completed 259 new homes in the north oGlasgow and began work on another 414 on nine sites.Thousands more tenants beneted rom our massiveinvestment programme, one o the biggest o its kindin Europe with a total spend o 1.2 billion, as wecontinued to upgrade and modernise homes and improveneighbourhoods across the city.

Much has been achieved over the year. The new GHA thathas emerged is going orward with renewed condenceand the support o its sta and stakeholders. An evenmore exciting year lies ahead as our new organisationalstructure and new governance arrangements are beddeddown and our tenants and actored homeowners

experience the many benets they will bring.

Sandra Forsythe MBEChair

It has certainly been a landmark year. For the frsttime in our short history we have established, with theagreement and support o tenants, homeowners andstakeholders, a new purpose and direction that enablesus to move orward as a credible, substantial andlong-term landlord and regeneration partner.

This has given us the impetus and condence to builda new GHA: one ocused rmly on becoming closerto its tenants and actored homeowners and closerto its partners and stakeholders.

The transormation o the organisation is now wellunderway. We have set out with a clear set o principles,including completing the investment promises to tenantsand delivering excellent housing services to tenants andactored homeowners.

At the same time, our ocus was rmly set on delivering

value or money to our customers and a commitmentto work more eectively with our partners on the widerregeneration o Glasgow. Equally important is ourdetermination to ensure tenants and homeowners haveeven more o a say in everything we do.

Another huge development in 2009-10 was the decisionto carry out, in consultation with sta and customers,a major stang restructure. Not only is this putting 20%more housing ocers into communities, it also gives theseocers new power and responsibility to resolve, quicklyand eciently, issues raised by our 55,000 tenants and27,000 actored homeowners.

Another priority was to reduce layers o managementat GHA and to streamline head-oce unctions. This hasresulted in a whole range o services being devolved awayrom Granite House, the number o managers more thanhalving and decision-making speeding up.

Four new Area Teams North, South, East and West

have been created, broadly in line with the citys StrategicPlanning boundaries.

This will ensure GHA works more closely with such as the City Council and police, re and rhealth services, to provide better joined-up sGlasgows communities.

Tenants will continue to be at the heart o thGHA and will help us to set and supervise locthrough their Local Housing Organisation Comand new Area Committees. These Area Commcomprise tenants and other community repreincluding city councillors, and will have the polocal decisions and have control over agreed

GHAs Second Stage Transer (SST) programmpace throughout the year. The new timetable should tenants vote or them could see uphomes transer to community-based housingthrough 2010-11. Our commitment to this p

remains rm and will not change the act thacontinue to be, in UK terms, a substantial andperorming social landlord that is creating bbetter lives or the people o Glasgow.

The nancial year past also saw GHA achievebreaking results in key perormance areas. Fothe number o tenancies in arrears ell to its level ever, while more than 70 per cent o holet within our weeks. Results like these are thon which the new GHA can urther improve pand customer service in the year ahead.

Much was achieved in 2009-10 and, as alwayremains to be done. However, we can look owith condence and optimism as long as wto engage and involve our tenants and homeretain the passion o our sta to provide exceand secure the ongoing support o our stake

Martin ArmstrongChie Executive



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Operating Review

In good shape to go orward

The new GHA emerged rom an independent review o theorganisations purpose and direction, the terms o whichwere agreed with the Scottish Government, the ScottishHousing Regulator and Glasgow City Council, as strategichousing authority. Carried out by the respected FinancialInormation Company, it involved consultation with tenantrepresentatives and stakeholders and established a wayorward based on eight principles:

1. Fullling the commitments made to tenantsat stock transer

2. Making tenant empowerment central to bothgovernance and service delivery

3. Delivering a signicant and credible programmeo Second Stage Transers

4. Remaining a substantial and long-term landlordin Glasgow, so long as that is what tenants want

5. Striving or service ecellence or the beneto customers and Glasgows wider socialhousing market

6. Working with partners and stakeholdersin strategic planning and operations

7. Continuing our role, alongside partners,in the wider regeneration o Glasgow

8. Yielding the nancial benets o scale or tenantsand the wider community through our distinctivecontribution to social housing in Glasgow.

An organisational review was undertaken to ensure thenew GHAs structure was able to deliver these principles.The end result is:

a a slimmed-down and decentralised head ocea strengthened and epanded rontline housing services

a our new Area Committees and sta teams, basedon Glasgows Strategic Planning boundaries.

Closer to communities

One o the most important aspects o the neis our Area Committees (North, South, East aComprising LHO committee members and otcommunity representatives, including city cothey put communities even more at the heargovernance structure. This means more tenamore infuence in deciding local priorities ancontrol over the services provided in theirneighbourhoods.

Looking to the uture

The new GHA has been endorsed by key stakincluding the Scottish Government and GlasgCouncil, as a substantial, long-term social lan

and as a key partner in the regeneration o GOn both counts, the ollowing ve strategic awill help drive orward the business:

1. Empower tenants to enable us to deliver lo

2. Deliver service ecellence

3. Maimise our assets and services to regenGlasgow

4. Empower and motivate sta to make a podierence to peoples lives

5. Create value through innovation.

Size does matter

The ongoing Second Stage Transer program16,500 tenants in 29 communities across theopportunity over 2010-11 to vote on whetheto transer ownership o their homes to comhousing organisations. Ater this programmeGHA will continue to be one o the UKs largeo Scotlands best-perorming social-housing

While the new Area Committees will provide and local empowerment, GHAs size and scaleto be important in terms o strategic planninthe delivery o major city-wide initiatives, suc1.2 billion I nvestment Programme.

The past year has been transormational or GHA.In many ways it was a milestone 12 monthsin which a new GHA emerged: one thatis closer to its customers and communities

and its stakeholders and partners. This saw:a best-ever results across key areas

o business perormance

a renewed momentum and progresson Second Stage Transer (SST)

a continued service improvementsor tenants and actored homeowners

a a host o national awards or theorganisation and its sta

a an agreed package o principles whichensure GHA has a long-term uture.

It was also a year in which rents wererozen or all tenants at their 2009/10 pricesuntil March, 2011.



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Tenant George Fraser who lives iDundasvale and is Chair o QueeCross (Dundasvale) LHO Committhinks the changes at GHA will breal benets to tenants.

George said: GHA is reaching out to tenants. They are listeninand hearing what were saying. It is much more responsive and t

have even more o a role to p lay now. That is so important, beca

tenants are at the core o everything GHA does.

His Story

Sta are morevisible and aremore accessible.



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Values that matter

Sta across the city have helped us to develop a newset o values passionate, inspirational and ambitious -that capture what the new GHA is about.

In being passionate about what they do, sta workevery day to deliver high-quality services to tenantsand homeowners that improve their homes, l ives andcommunities. They also want to create and be part oan organisation that is inspiring, eective and constantlyimproving. GHA sta are also ambitious or the utureo Glasgow, and are determined to play a ull and activepart in the regeneration o the city.

Better perormance

The perormance o Registered Social Landlords (RSLs)

in Scotland is measured annually on criteria such astenancy sustainment, rent arrears, letting homes withinour weeks and the average number o days it takesto rent a home. GHA continued to improve perormancein 2009-10 across most areas, despite the ongoingrecession and in the midst o an organisational review.

Tenancy sustainment was up 1.34 per cent to 87.88,while best-ever results were achieved in both rent arrears -3.56 per cent o gross debit against a target o 3.79 percent and the number o tenants in arrears, which ellrom 17,927 to 16,747. This reduced the percentage otenants in arrears to 28.57 per cent, well within the30 per cent target.

The 70.15 percentage o homes let within our weeks wasmarginally over the 70 per cent target, while the averagenumber o days to l et a property was 25.69 days againsta target o 25 days, and was the best perormanceachieved in GHAs history.

Eternal recognition

The highly-prestigious Customer Service Ecellence award,the UK national standard or public-sector organisations -which is overseen by the Cabinet Oce - was receivedin June, 2009. GHA was recognised or showing bestpractice in several areas, including the involvement oall sta in actively promoting a customer-ocused culture,the new complaints procedure and the 24-hour conciergeservice at multi-storey fats.

In September 2009 GHAs Housing Support Service, whichruns 34 sheltered-housing complees, received a glowingreport rom The Care Commission. Inspectors ound thisservice to be either ecellent or very good in every areaassessed. The care watchdog reported GHA showed thekind o quality that every care service should aspire to.In November, GHA was awarded the maimum ve-star

health-and-saety rating by the British Saety Council (BSC),or the second year running. In the BSCs audito operations, GHA scored 97.7 per cent.

In the 2009 Sustainable Housing Awards, organised byInside Housing magazine and ocusing on the best greensocial-housing projects in the UK, GHA and its partner,Glasgow City Council, won the Transormation Award ora makeover project at Townhead. Improvements includeda new games court, landscaped public areas and strikinglarge-scale art works designed by local school pupils.

In the CIHs Housing Heroes awards, GHA Board memberKate Willis, o Castlemilk Tenants Housing AssociationLHO, was named Board Member o th e Year, while GHAsBusiness Improvement Leaders team was recognised inthe Customer Service Team o the Year category.The Evening Times Community Champions Awardsrecognised the commitment and dedication o LinkwoodConcierge Service in Drumchapel, which won the PublicService Award.

Tenant satisaction

Awards are great to receive, but our customers viewsare what matter most. We know there is always more workto do, but we are pleased the 2009 tenants survey showeda strong perception that GHA is an ecient landlord,providing good value or money. The survey showed:

a 80 per cent o tenants were satised with GHAas their landlord, compared with 72 per cent in 2006

a almost three quarters o tenants were satised withthe way GHA deals with day-to-day repairs andmaintenance, up rom 64 per cent in 2006

a overall, 80 per cent o tenants were satisedwith their home

a 79 per cent o tenants agreed GHA was an ecientlandlord - an increase o 16 percentage points rom

the previous survey.

Feedback rom more than 1000 personal interviews withactored homeowners also revealed a substantial increasein the number o people satised with services. Seventyper cent o customers believed GHAs actoring subsidiaryGHA(M) since renamed YourPlace Property Management -was good at keeping them inormed, an increase o23 percentage points on 2007, while 55 per cent agreedGHA(M) was an ecient property manager, up rom35 per cent. Overall satisaction with the actoring servicewas up 9 percentage points to 55 per cent.

CIH partnership

A strategic partnership, the rst o its kind in Scotland,was signed with the Chartered Institute o Housing,providing sta with a range o training and development

opportunities and the opportunity to gain a recognisedqualication in housing. A record 250 GHA sta completedthe Level 2 Certicate in Housing in the rst year othe partnership.

Solid progress or GHA subsidiary

Improved services and eternal recognition wthe hallmarks o another year o progress or(Management) Ltd, the subsidiary that providactoring services to 27,000 homeowners.

Homeowners, who share common areas withtenants, continued to benet rom the citys Investment Programme. Additional assistancor their share o the cost o new roos and ovwas made available, with the launch o an erepayment scheme in December, 2009.On a case-by-case basis, homeowners can noor more time to pay their share o the invest

Itemised billing was introduced at the beginno the nancial year, which resulted in the nuo customers calling with a query over the co

a repair alling by more than a third. Paymenwere also improved by enabling customers tobills by direct debit, a acility that will be etethe year ahead. Investors in People (IiP) accrwas regained in March 2010, with assessors GHA(M)s 40 sta or their commitment to decustomer satisaction. Other milestones in thyear included:

a the epansion o GHA(M)s customer base or the rst time, new customers outwith tto Buy sector

a and working with the Scottish Governmena voluntary accreditation scheme or propmanagers in a bid to raise standards throuthe actoring sector.



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Three-year investment plan

The net three years will see the nal phase o thisambitious investment programme being completed.In 2009-10, a urther 2342 heating systems were replacedand 3899 properties, both low rise and multi-storey fats,were overclad. This means that since 2003, GHAhas installed:

a 40,618 central-heating systems

a 11,057 new windows

a 36,434 new kitchens

a 36,264 new bathrooms

a 47,741 new Secured by Design doors

a overclad 28,006 homes

a re-rooed 25,684 houses

a and re-wired another 33,994 homes.

Also, an important clause in all investment andrevenue contracts means contractors deliver trainingand employment opportunities or hundreds o peoplein Glasgow. Between April 2009 and March 2010, 325new jobs were created, including 144 apprenticeships.A total 1473 people have now been recruited, including425 apprentices, and 322 training places have beencreated or people who were previously unemployed.

Building a bright uture

GHAs new-build programme is providing attractive,energy-ecient homes, with the aim o creating andmaintaining sae and vibrant neighbourhoods, witha mi o house types that give people in Glasgow

maimum choice.The rst phase, eaturing 239 high-quality homesin Barmulloch, Mansel Street and Avonspark Streetin the north o the city was completed ahead o schedulein June, 2009. A urther 20 have been built in ScotsburnRoad ater 2009. Most o the new tenants were re-housedrom properties earmarked or demolition in the northo Glasgow, many rom multistorey fats.

Their new homes are a mi o terraced housedetached, cottage fats, town houses and thrtenement fats.

The new homes have achieved Secured by Deaccreditation, a police initiative that helps cuimproving home security. Studies show SBD dwindows reduce housebreaking by 26 per cehomes are also environmentally-riendly, witgrading under the Ecohomes assessment sch

Work started on the second phase o the newprogramme in October, last year. A total o 4homes at nine sites across the city are being in partnership with Scottish house builder CruThe huge investment will see:

a 26 homes built at Airgold Drive and Ledmoin Drumchapel

a 13 at Shaton Road in Knightswood

a 22 at Halley Place in Yorker

a 16 at Kempsthorn Crescent and 70 atBrockburn Road in Pollok

a 80 at Holmauldhead Drive in Linthouse

a 93 at Riverord Road in Pollokshaws

a 47 at Summertown Road in Govan

a and 47 at Duke Street/High Street.

The new properties have between one and oand include terraced homes, cottage fats, fasemi-detached homes. Eighteen have wheelcTenants o these new homes, which have SBDand an Ecohomes rating o very good, comin our clearance programme.

Better homes

In ullling its promises to tenants at stocktranser, GHA undertook to complete oneo the largest modernisation programmeso its kind ever seen in Europe.

That programme has delivered, over sevenyears to date, over 950 million worth oimprovements and reurbishments to housingin Glasgow ... with another 250 million wortho investment planned over the net three

years. O course, good housing is about muchmore than bricks and mortar, but the scaleand eciency o the investment programmecontinues to ensure Glasgows tenants and

actored homeowners benet rom havingwarmer, drier and more environmentally-riendly and energy-ecient homes.



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Elizabeth Bashir, rom Cardonaldis one o tens o thousands otenants who has had her homeupgraded in GHAs 1.2billioninvestment programme.

Elizabeth said: I got my new kitchen, bathroom and rewiring I really elt the benet o the overcladding during the winter too,

uel bills are lower.

I get such a sense o pride when I see the fats rom outside. T

stunning, especially when they are lit up at night. It used to be th

could always tell the bought homes rom the council homes beca

they looked a lot better, but now its the opposite.

Her Story

When I travel on the bus

I hear people rom Renrew

and Paisley saying how nice

the houses in Glasgow are,

and I have a wee smirk tomysel.



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Demolitions

The demolition o multi-storey fats continued throughthe year, including:

a two blocks in Shawbridge, as part o the areasredevelopment plans

a two nearby blocks at Riverord Road and RiverbankStreet, with a new-build programme or the areaalready underway

a and si 19-storey blocks in Sighthill to make wayor new homes which will be built in phases.

Around 95 per cent o the rubble generated by ourdemolitions can be used or recycling.

Wingets

Tenants and homeowners in Carntyne have seen thestart o work to save and upgrade 900 homes previouslydeclared structurally deective. The Winget properties,built in the late 1920s using a reinorced concrete design,were rst designated structurally deective more than20 years ago.

GHA commissioned a pilot study in April 2007 whichdetermined the properties could be saved by carryingout structural repairs. Work on the homes beganin January 2010 and will continue over the net veand a hal years, at a cost o 38 million. Every GHAWinget home will also be upgraded, with new kitchens,bathrooms and central heating.

The Glasgow House

Construction began o our prototype energy-ecienthomes. Aimed at driving down heating and hot watercosts, the Glasgow House is a collaboration betweenGHA, architects PRP and City Building.

The prototypes, which are also environmentally riendlyas well as tackling uel poverty, are being built at CityBuildings Skills Academy in Laurieston by l ocal workersand apprentices. One is built using hollow clay bricksand the other is timber-ramed, with eatures suchas high insulation levels, simple orms o constructionto minimise heat loss and energy use, windows androoms that capture the suns energy and solar thermalpanels on the roo.



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Better lives

GHA strives each year to review and improvethe range o services it provides to tenants andactored homeowners and, at all times, to provideecellent value or money. As well as having

modern, bright and attractive homes, our aimis increasingly to ensure our customers alsolive in cleaner, greener and saer neighbourhoodsand communities. Several initiatives andimprovements were introduced during the

year to progress this priority.

Communities count

The Neighbourhood Renewal Team worked in 2009/10with a range o partners across more than 150 citywideand local projects to support tenants and homeownersto make communities saer and more attractive.

A total o 347 people were helped into employmentthrough projects like Community Janitors, a joint initiativebetween GHA and Glasgows Local Regeneration Agency(LRA) network. The programme provides paid placementsor si months. Trainees, who were previously unemployed,carry out environmental tasks in GHA neighbourhoods,such as cutting grass and trimming hedges.

Since the start o the programme in 2006, 801 trainingplaces have been created, with 653 being lled by GHAtenants. On completion o their training, 434 traineesmoved into employment.

Our Neighbourhood Renewal Team also:

a supported environmental improvements, such as localclean-up campaigns and 22 garden competitions

a built, in partnership with Glasgow City Council, ninenew play areas, bringing the total to 52 since 2005

a launched a uel-advice service in October, last year

a helped almost 2500 tenants over 60 with small jobsaround the home through the Handyperson Service

a provided 81 dierent eercise and arts classes at 23sheltered-housing complees or 1850 older peoplethrough the Silver Deal Active Programme, supportedby Glasgow Lie

a introduced the Birthday Bags project, which hasdelivered over 2800 birthday bags - ull o useul items,including a pedometer, torch key ring and anti-slip

bathmat to tenants on their 60th birthday

a distributed Welcome Bags containing practical itemssuch as washing-up liquid, toilet rolls, coee and tea,a cook book, energy-ecient light bulbs and an oralhealth pack to ormer homeless people when theybegin a tenancy.

Lighting up the sky

GHA lit up the Glasgow skyline with severallighting projects that have become local land

The Castlemilk Lighting Project, launched withCollective Architecture, Northern Light and GlaCouncil, uses coloured LED lights in the stairwDougrie Place high rises, which also orecast wconditions.

The lighting system at Springburn eatures a sforal pattern o lights climbing the aade o Welleld multi-storey fats, while work on highin Cranhill and Blairdardie was also complemeby new lighting systems.

All these projects, part unded by GHA and GlaCity Council, have become landmarks in their

Backcourt maintenance

In April 2010, responsibility or the maintenao backcourts was transerred to GHA rom GlaCouncil. Backcourt squads cut grass, weed, triand sweep and clear l eaves and rubbish. Impto the service include the etension o gardenthrough winter, more thorough clean-ups atecutting, the introduction o new mowers and inspection regime. Tenants now sign o visitsthey are satised.

Close cleaning

Si squads o close cleaners, covering the wesmoved into a new oce and maintenance bain October, last year. The premises also househeavy-duty Green Machine street sweeper.

Close cleaners now contact the GHA CustomeCentre to report minor repairs and leave a sticrelevant area to tell residents we are on the cTenants and homeowners also have a weeklyto ensure they are satised with work carried



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Kate Willis, helped bring an innolighting project to the Dougrie Plhigh-rise blocks in Castlemilk.

Kate said: We want neighbourhoods that are attractive, well-

and good places to live and the Castlemilk Lighting Project helps

achieve that.

We can see the temperature orecast, the predicted wind direc

the net days weather outlook during the hours o darkness. No

this has ever been done beore, and its created a real eel-good

Their Story

The high rises look

antastic and are visibleright across the city.

They have become a real

landmark or Castlemilk.



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Disabled adaptations

Tenants who need small alterations in their home, suchas the tting o a handrail or a lever tap, can now simplycall their local oce or the Customer Service Centre tohave the work done. Previously, requests or adaptationsneeded an assessment rom an occupational therapist.Occupational therapists continue to carry out assessmentsor bigger adaptations, such as ramps.

Homechoice

A new choice-based letting system was piloted in thewest o the city in place o the old points-based systemo allocating homes. Homechoice allows tenantsto register their interest in available properties, whichare advertised on the GHA website and in the EveningTimes newspaper. An independent review carried outlast year by Heriot-Watt University concluded applicantsound the system air, understandable and preerableto the points-based approach and that it helpedto prevent properties lying empty or long periods.

One-stop shop

Plans were unveiled or a new one-stop shop at 173Trongate oering all housing services under one roo.The ground-foor premises are customer-riendly,with easy access or elderly and disabled. Speciallytrained sta are on hand to collect payments andoer advice to tenants and homeowners.

Rent First campaign

Launched in the run-up to Christmas when parent sometimes becomes a lesser priority, theeatured newspaper, radio, billboard and phoadverts combined with sta being available ttenants on how to manage their rent, includinew repayment arrangements and benets. Rell by almost 800,000 compared with the salast year, with GHAs approach being praised Scotland and the Scottish Government.

Rent reeze

Rents and service charges or urnished lets, lgarages and very-sheltered housing were rozMarch, 2011. Ater a major consultation with and stakeholders, and ater assessing eedbaor a major rent restructure were postponed udetermined how the issue o larger increasespercentage o tenants should be handled.



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Helping people into work

In the past year GHA helped over 700 people to get a job,including:

a 325 people who were recruited as a result o a clausein investment and revenues contracts that stipulatescontractors must oer training and employmentopportunities

a 347 unemployed people, who got a job through projectslike the Environmental Employability Programme,popularly known as the Community Janitors

a 30 school leavers who joined GHAs dedicated housingapprenticeship programme as part o the City CouncilsCommonwealth Apprenticeship Initiative.

A new scheme, Connecting People to Opportunities,

was also launched to help people nd work. This involvestenants receiving advice, inormation, training andwork placements ater being reerred by GHA housingocers through Glasgow Works and the citys ve LocalRegeneration Agencies.

Healthy diversions

No ewer than 26 youth diversionary projects, covering92 per cent o GHA houses and engaging more than2500 young people, were supported by GHA. Activitiesrange rom music, drama and IT to volunteering, sportand art.

The projects divert youngsters away rom anti-socialbehaviour, increasing condence and helping themto prepare or the world o work. Some o the programmeshave been so successul Strathclyde Police have reporteda reduction in anti-social behaviour and minor crime

in many communities. Several, including OperationReclaim in the north o Glasgow, the West End YouthDiversionary Project and the Dumbarton Road CorridorPeer Education Programme, won Evening TimesCommunity Champion awards.

Tackling anti-social behaviour

The award-winning Neighbour Relations Teamresolved 514 cases o anti-social behaviour inaround GHA properties. GHA is the only socialin the UK with a specialist drugs ocer. Aterwith Strathclyde Police, 28 drug dealers were GHA properties between April 2009 and Marchand another 30 convicted dealers gave up theunder threat o legal action. The gure is morthe number o dealers evicted in 2008.

Cutting the citys carbon ootprint

As the largest social housing provider in the cis committed to combating climate change. Care required to minimise waste and recycle anand sustainable materials wherever possible.

as transorming the city skyline, the GHA demprogramme plays its part. Tens o thousands oo rubble created by our demolitions are recycrushed, graded and used in the oundationsand buildings.

The 1.2 billion investment programme, involvinstallation o ecient heating systems and dwindows, and the overcladding o low-rise anfats with eternal wall insulation, provides tehomeowners with more comortable homes aheating bills. This has also had a big impact oGHAs carbon ootprint, generating reductiontonnes o carbon emissions and 78,000 giga jo energy used.

From September 2009, tenants began being vhomes by two uel advisors, helping them to mand most energy-ecient use o their heating

A Better Glasgow

GHA is a substantial, long-term social landlord but one that is driving orward, with its partners,the wider regeneration o Glasgow.

The shared vision and ambition is to create

a more vibrant Glasgow that oers moreemployment opportunities or its skilled workorcesand neighbourhoods and communities that arecleaner, greener and saer.

GHA is working more closely than ever withGlasgow City Council, the Scottish Government,Strathclyde Police, Strathclyde Fire and Rescue,NHS Greater Glasgow and Clyde and otheragencies to tackle the citys deep-rooted problems.



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Anthony Taggart 17, let EastbanAcademy in Shettleston and secan apprenticeship at GHA as parGlasgow City Councils CommonwApprenticeship Initiative.

Anthony said: Im currently on placement in the IT departmewhich I really enjoy. It has been a lie changing eperience beca

I didnt think I could get a job in IT ater I let school at 4th year.

I think that the knowledge I have gained has been great and I

learned a lot o things. I have settled in and made lots o new ri

The job is really demanding but I think it suits me as I work bette

under pressure.

His Story

It has been a liechanging eperiencebecause I didnt thinkI could get a job in ITater I let school at4th year.



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Partnership working

A specialist registrar in public health medicine romNHS Greater Glasgow and Clyde was seconded to GHAin September, 2009, or si months. Focusing on tenancysustainment and the prevention o homelessness, theregistrar has helped to improve allocations procedures andto meet the needs o tenants with alcohol and addictionissues by improving reerral procedures to other services.

The secondment o a Strathclyde Police inspectorto the NRT boosted eorts to tackle anti-social behaviour.GHA also unded 25 bikes and 53 sets o equipmentor police ocers across Glasgow.

Regenerating communities

The drive to transorm Glasgows most disadvantagedareas was stepped up. A j oint strategic group,also involving the Scottish Government and Glasgow CityCouncil, was set up to progress eight TransormationalRegeneration Areas (TRAs) and build hundreds oaordable new homes to rent and buy. The TRAs are:East Govan / Ibro, Gallowgate, Laurieston, Maryhill,North Toryglen, Red Road, Sighthill and Shawbridge.

Glasgow Housing Association Annual Report and Accounts 2009/10

Financial Review

In dicult economic conditions GHA continueto meet nancial targets set by the businessplan and budget. GHA restructured the grantand unding arrangements to meet uturerequirements. There has also been a restructurand cost reduction programme that will yieldmore eective services at the rontline while aldelivering signicant cost savings in the uture

27 Glasgow Housing Association Annual Report and Accounts 2009/10


16/36

29 Glasgow Housing Association Annual Report and Accounts 2009/10

Income

GHAs group turnover or 2009/10 (ecluding loss on sale o

ed assets and interest received) was 251.2m (249.6m,

2008/09). The main source o income was rental income o

192.6m (197.7m, 2008/09). The remainder o income came

primarily rom homeowners payments or improvements made

to their homes, 24.4m (22.6m, 2008/09) and rental income

rom commercial properties.

In addition, GHA received Scottish Government grants totalling

67.3m (70.3m, 2008/09). Sales under Right-to-Buy legislation

totalled 6.7m (14.5m, 2008/09) less 2.5m (5.5m, 2008/09)

payable to Glasgow City Council and 4.2m (9.0m, 2008/09)

retained by GHA.

Ependiture

Total Revenue Ependiture was 216.9m (211.7m, 2008/09)comprising the ollowing main items:

a Letting activity management and maintenanceadministration costs were 96.6m (90.9m, 2008/09)

a Included in management and maintenance administrationcosts are employee costs (ecluding capitalised employee

costs) totalling 63.5m (57.6m, 2008/09)

a Repairs to GHA properties totalled 32.8m (37.7m,2008/09) and planned maintenance to improve housing

totalled 22.1m (26.2m, 2008/09).

At the end o the year, GHA had rent arrears o 12.0m (12.0m,

2008/09) and bad debt provisions o 7.3m (6.5m, 2008/09)

mainly rom tenant arrears balances.

Balance Sheet

Our investment during the year in tenants homes totalled

146.9m (156.6m, 2008/09). The value o housing stock

is 452.8m (331.7m, 2008/09).

GHA participates in the Strathclyde Pension Fund. The decit

o 56.0m (3.5m decit, 2008/09) will be addressed through

changes in employers contributions. At the year end, GHA group

had a net asset position o 165.1m (171.0m, 2008/09).

Cash Flows

GHAs group cash fows are shown on page 43. Net cash infow

rom operating activities was 44.9m (50.8m, 2008/09). The

increase in net cash o 7.6m (21.7m increase, 2008/09) was

ater grants o 55.2m (59.8m, 2008/09) and loan receipts o

84.9m (83.0m, 2008/09). The principal cash outfows were

operating costs and investment in assets, particularly housing

stock o 162.1m (175.9m, 2008/09).

Liquidity

GHAs short-term liquidity has improved in the year to show

net current liabilities o 12.2m (37.3m, 2008/09). Creditors

alling due ater more than one year, has increased to 254.0m

rom 154.5m in 2008/09, the main movement being additional

bank loans.

Capital Structure and Treasury Policy

GHAs activities are unded on the basis o a Business Plan which is

updated annually. The main elements o GHAs long-term unding

are a 30-year loan acility with a syndicate o banks and capital

grants and loan provided by the Scottish Government.

The syndicated loan acility, originally arranged in 2003, was

restructured in May 2010. It allows GHA to borrow up to 700m

and has been etended or a new period o 30 years. Previously

the borrowing acility was 725m repayable in 2032/33. In broad

terms, our current Business Plan assumes that we will increase

our borrowings each year until we reach a maimum o 692m

in 2018/19, refecting the signicant i nvestment programme in

the rst ten years o the Plan. The debt is progressively paid o

in subsequent years and is projected to be ully paid o by 2040.

The Business Plan assumes total capital grants and loan rom

the Scottish Government o 469m rom the date o transer.

These grants and loans are repayable in 2040. However, i

GHA is successul in achieving certain targets in respect o

its perormance and second stage transers then the grantrepayments are signicantly reduced. The Business Plan also

includes Scottish Government unding or specic elements o

our investment programme in respect o demolition and new

build works.

0% 20% 40% 60% 80% 100%

Social Housing

Demolition Grant

Factoring

Surpluson SaleoFiedAssets

InterestReceived

Other

A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A 78% 201.2m

A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A 81% 197.4m

A A A A A 5% 13.5m

A A A A A A A 7% 16.3m

A A A A a a a a a a A 11% 27.7m

A A A A A A a a a a a a A 13% 30.6m

A A A 3% 7.3m

A A A 3% 7.4m

A 1% 1.8m0% 0.1m

A A 2% 6.2m-4% (8.8m)AAAA

Income2008/092009/10

At the time o the stock transer GHA managed its interest rate

risk by entering into hedging arrangements, which have the

eect o ing the interest rate on a proportion o the projected

debt levels each year. The interest rate on the remainder o the

debt will vary in accordance with market interest rates. As GHA

evolves, its projected debt levels change, thereore in March 2010

GHA approved a new hedging strategy or implementation in

2010/11, which achieves closer alignment o the ed rate

prole to the latest projected debt prole. We regularly review

our arrangements with respect to the hedge on our loans.

The Board receives updates each quarter which detail the

debt, cash and interest received and paid. Changes to banking

arrangements and bank signatories are approved by the Board.

The GHA Group Treasury Management Policy sets down the

ramework or investing and managing o cash, raising loans,

interest rate management and the use o nancial derivatives

o the Group. A key objective o the Policy is to ensure that the

Groups loan portolio represents the optimum balance o risk

in interest rate, loan maturity and ed rate eposure. In turn,

it ensures that Group ocers have the authority to take the

necessary action as and when required in response to changes

in the nancial markets. The overriding objective o this Policy

is to be risk averse, whilst at the same time maimising return

on unds invested within laid down agreed parameters.

Longer-Term Business Planning

Each year GHA produces a 30-year Business Plan which details

and costs long-term plans. This document, which is eamined

by the Board and by eternal advisors, demonstrates our longer-

term viability and regeneration plans. A copy is on the GHA

website and available on request rom GHAs oces.

The GHA 30-year Business Plan or 2010/11 highlights the

ollowing ve big aims or the organisation:

1. Empowering tenants to enable us to deliver local priorities

2. Delivering service ecellence

3. Maimising assets and services to regenerate Glasgow

4. Empowering and motivating sta to make a positive

dierence to peoples lives

5. Creating value through innovation.

The Business Plan is made operational through GH

Plan with outcomes cascaded throughout the orga

Key Outputs

The key outputs or 2009/10 were:

a Capital ependiture on our tenant investment ptotalled 146.9m (156.6m, 2008/09)

a A urther 16.5m (21.4m, 2008/09) o works wout on behal o owners

a A total o 2,408 units (2,676 units, 2008/09) werdemolished during the year

a Phase 1 o the new build programme is conrmein the year under review, has delivered the nal

o the 239 units. A urther 20 units were comple

through Phase 1a in the year

a A total o 153,369 (194,256 2008/09) repairs weThe investment programme and an increased o

/ planned maintenance have also had a direct im

responsive repairs and the volumes in this area

a Lettable void rates are below our 1.61% target ao total stock, a signicant improvement on 1.68

rom 2008/09

a Sitting tenant arrears at the year end were 3.6%2008/09) better than our operational target o 3

a Our Neighbour Relations Team assisted a total opeople (2,796 people, 2008/09) who were subjec

anti-social behaviour and responded to all reerr

within agreed target times.

Non Adjusting Post Balance Sheet Event

In June 2010 a urther 5 second stage transers to

with the detailed Business Plan. These disposals re

0% 10% 20% 3 0% 40% 50% 60%

Management& MaintenanceAdministration Costs

Reactive Maintenance Costs

PlannedMaintenance Costs

BadDebts

Service Costs

Depreciation

A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A 54% 90.9m

A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A 57% 96.7

A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A 22% 37.7m

A A A A A A A A A A A A A A A A A A A A A A A A A A A A A 19% 32.8m

A A A 3% 4.7m

A A A A 4% 7.4m

A A A A A A A A A A A A A A A A A A A A A 15% 26.2m

A A A A A A A A A A A A A A A A A A 13% 22.1m

A A A A 4% 7m

A A A A 4% 6.6m

A A 2% 3m

A A 2% 2.8m

Glasgow Housing Association Annual Report and Accounts 2009/10


17/36

GHA Board, Committee structure and related matters GHA Board, Committee structure and related matters continued

GHAs Rules currently allow or the appointment

o up to 15 Board members as ollows:

a Up to si tenant Board members

a Up to si independent Board members

a Up to two council Board members

a The option to appoint the Chie Eecutiveas a co-optee to the Board

At 31 March 2010 there were 13 members o the GHA Board:

si tenant members, ve independents and two council

Board members.

Each member o the Board holds one ully paid 1 share

that is cancelled on cessation o membership. During 2009/10

ve shares were issued and ve memberships cancelled.

The members o the Board during the year are listed below:

Name First Joined Board Re-elected/re-appointed Let Board

Alastair Dempster 3 May 2002 9 September 2009

Fred Shedden 3 May 2002 17 October 2008 16 August 2009

Margaret Ward 30 September 2003 29 September 2006 28 May 2009 (deceased)

Sandra Forsythe 17 December 2004 17 September 2008

Wilma Masterton 6 September 2006 9 September 2009

Keith Kintrea 6 September 2006 9 September 2009

Councillor Pat Chalmers 27 November 2007 3 September 2009

John Grant 17 September 2008

Councillor Kenny McLean 9 October 2008 3 September 2009

Ian Wall 27 October 2008 9 September 2009

Gordon Sloan 23 March 2009 9 September 2009

Councillor Ruth Black 25 March 2009 3 September 2009

Kate Willis 9 September 2009

Robert McCormick 27 April 2009 9 September 2009

Alastair MacNish 17 August 2009

Elizabeth Walord 17 August 2009

Councillor James Dornan 3 September 2009

Councillor Philip Braat 3 September 2009

GHA Board

The Board is responsible or the overall strategic direction and

objectives o GHA. Key responsibilities are:

a Approval o the Business Plan, budget, and any variationsand amendments to them, together with other matters

which all within the strategic role o the Board

a Establishing strategic plans and policies to achievethese objectives

a Approval o any amendments to the SST programmeand approval o Second Stage Transers

a Approval o the creation or dissolution o a subsidiary

a Dening and ensuring compliance with our valuesand objectives as a registered social landlord

a Approving each years nancial statements

a Establishing an appropriate ramework o delegationand systems o internal control

a Taking key decisions on matters that will, or might,create signicant risk including approving any signicant

contractual arrangements

In order that it can deliver its role eectively GHAs Board

operates a committee structure with delegated responsibility

to the ollowing 6 committees:

Appointments and Appraisals Committee

Responsible or:

a The process or recruitment and selection o Board members

a Ensuring Board Members have necessary skills andeperience to ull their roles

a The appointment and remuneration o the Chie Eecutive

a Considering and approving where appropriate, relevantoers o employment and promotion as required by the

provisions o Schedule 7 o the Housing (Scotland) Act 2001.

Audit Committee

Responsible or monitoring the nancial integrity o the nancial

systems o the association. Specically, this committee:

a Reviews GHAs system o internal control and riskmanagement system including that within the LHOs

a Provides an overview o the internal and eternalaudit unctions

a Scrutinises the nancial statements

a Monitors the implementation o internal auditrecommendations and eternal audit reports

and management letters

a Reviews the internal audit plan and scope o work

a Reviews the eectiveness o the overall risk strategy.

Regeneration Committee

Responsible or directing GHA in relation to:

a Strategic oversight o the transormationalregeneration projects

a Other strategies or creating and sustaining succneighbourhoods

a The new build programme

a The uture o properties with an uncertain uture

Operations Committee

Responsible or:

a Approving the capital programme investment st

a Monitoring compliance with Remodelled ManagAgreements

a Monitoring compliance with and perormance ooverall housing and property services, investme

demolition programme

a Approving and monitoring implementation o thdevelopment strategy including approval and am

or transers o engagements between LHOs

a Approving and monitoring implementation o poincluding service delivery, investment, housing m

and Local Shared Services

a Receiving reports rom the Regeneration Commio properties to be demolished in the transorm

regeneration areas, or inclusion in the associat

demolition programme.

Business Transormation Committee

Responsible or:

a Overseeing and monitoring issues relating to theOwnership process and consideration o busines

units as well as the devolution o activities throu

Shared Services arrangements

a Monitoring implementation o the SST process inthe pilot programme and COI process

a Approving and monitoring implementation o thpolicies relating to Community Ownership, Seco

Transers and business service units.

Finance Committee

Responsible or:

a Overseeing the long term strategic planningo the Associations nances

a Monitor and review the Associations current anprojected perormance against Budget

a Ensuring that the Association has an eective ror nancial management

a Overseeing treasury management, procuremenand nancial risk

a Approval o the Scheme o Financial Delegation



18/36

Governance Review Summary

Refecting the various reports, GHA undertook an ehaustive

review o its governance arrangements through November

June 2010. The aim was enhanced scrutiny o decisions, a clear

strategic ocus o the Board and a new committee structure

to refect our new strategic direction and building in our new

empowered Area Committees.

Employee Policies

GHA recognises that delivering ecellent service is dependent

on all o our employees. Accordingly, GHA is committed to the

promotion o lielong learning. During the year, we provided

nancial support to und over 30 employees through higher

education. GHA introduced eternally accredited concierge

and manager development programmes. GHA, GHA

(Management) Ltd and 16 LHOs h ave Investors in People

accreditation. GHA has organised wellbeing days or sta,

promoting a work/lie balance, as well as a programme

o medical screening which has proved popular with sta.

GHA recognises two trade unions, Unison and GMB, and

engages in collective bargaining with these organisations.

GHA remains committed to the principle o equal opportunity

and to ensuring that no applicant or employee receives less

avourable treatment on the grounds o gender, race, age,

colour, nationality, religion, HIV status, disability or seuality.

GHA has a policy to support any member o sta who becomes

disabled whilst employed by GHA through modication o duties

or retraining and support.

Tenant ParticipationGHA sees tenant participation as a key strength o our

organisation. Tenants make up the largest single grouping

on our Board. Throughout the LHO network, there are

approimately 600 tenant LHO committee members who

make key decisions on delivery o services and investment

in their area. We also carry out regular tenant consultation

through surveys, questionnaires and publications. GHA consults

with LHOs, registered tenant organisations throughout the

city and other key stakeholders. Even greater engagement

o our tenants will be secured via our new governance

structure, due to come into orce at the AGM.

Health and Saety

The health and saety o tenants and sta is a key concern or

the Board which receives regular reports on accidents at work

and health and saety incidents. We have a health and saety

team to give advice on policy and to carry out inspections and

investigations when required. We also have access to specialist

advice i this is necessary. In addition to our Scottish Health

at Work (SHAW) accreditation we received a 5 star rating rom

the British Saety Council ollowing their audit o our procedures

and operations.

Sustainability

We have published a sustainability policy or GHA and are

implementing new initiatives on recycling, energy eciency

and reclamation o materials rom demolished properties.

All recent multi-storey fat demolitions have carried out

all recycling o rubble and waste on site.

Political and Charitable Donations

There were no political or charitable donations made

by GHA within the year.

Creditor Payment Policy

GHA agrees payment terms with its suppliers when it enters

into contracts. The average creditor payment period or the

year was within 30 days.

Disclosure o Inormation to Auditors

The Board members who held oce at the date o approval

o this Board report conrm that, so ar as they are each aware,

there is no relevant audit inormation o which the Associations

auditors are unaware; and each Board member has taken

all the steps that he/she ought to have taken as a Board member

to make himsel/hersel aware o any relevant audit inormation

and to establish that the Associations auditors are aware

o that inormation.

The Board o GHA is responsible or ensuring that an eective

system o internal nancial control is maintained within

the organisation. This system o internal control can provide

reasonable but not absolute assurance against material

misstatement or loss.

The mechanisms by which the Chie Eecutive obtains assurance

that the system o i nternal control is working eectively are the

same as those that the Board uses to assure itsel, although there

are separate and additional responsibilities o the Chie Eecutive

in respect o the organisational management and operational

systems and procedures.

Framework o Internal Control

The internal control ramework is supported by organisational

control measures including nancial and business planning,

risk management, perormance monitoring and reporting,

project management and communication systems and by ormal

governance measures including a structure o corporate policies

and authorities and responsibilities delegated rom the Board

to the Eecutive Management team.

The key methods by which the Board establishes the ramework

or providing eective internal nancial control are as ollows:

Management Structure

The organisation or which the Board has overall responsibility

is governed by a set o Standing Orders, which reserves specic

powers to the Board and delegates unctions and powers to its

Committees. The Board has delegated the responsibility to the

Chie Eecutive or maintaining sound systems o internal control

that supports the achievement o the organisations objectives.

Audit Committee

As at 31 March 2010 the Audit Committee consisted o ve Board

members. Meetings are held quarterly and are attended by the

Chie Eecutive, the Director o Finance and Business Services,

the Company Secretary, the Head o Internal Audit and Risk and

the Eternal Auditors. The Board has delegated powers to the

Audit Committee to approve the annual internal and eternal

audit plans, reports and ollow up reviews. In addition the Audit

Committee reviews the risk management arrangements including

the corporate risk register. The Audit Committee makes annual

reports to the Board covering these issues.

Finance Committee

The Finance Committee was created and convened or the rst

time at GHA in December 2009. As at 31 December 2009 the

Finance Committee consisted o ve Board Members. The specic

responsibilities o the Committee are to set out and oversee the

annual budget process; set budget and business plan parameters;

provide assurance to the Board that budget, business plan, and,cash fows are aligned, and, to review GHAs Business Plan and

provide assurance to the Board that the nancial inormation

therein is sound.

Internal Audit

The Head o Internal Audit and Risk reports to the Chie Eecutive,

with direct access to the Director o Finance and Business Services

and the Chair o the Audit Committee.

During the year the Audit Committee determined t

audit unction required to deliver a comprehensive

c.1000 days. The bulk o the resource or Internal A

under a co-sourced contract by Deloitte LLP. This is

by a Head o Internal Audit a GHA retained role. T

arrangement strengthens the management o the

The systems o internal control reviewed by interna

in 2009/10 included core nancial and non-nanci

Internal audit has carried out its programme o wo

as approved by the Audit Committee. The reports p

date noted a number o weaknesses in the system

control, all o which are being resolved. In additionhas been taken to improve the control ramework,

monitoring the closure o internal audit recommen

and ollow-up internal audit reviews.

Systems o Internal Control

The key elements o the system o internal control

a Regular meetings o the Board which has a schewhich are specically reserved or its approval a

the subject o regular standard reports as requir

a Arrangements under terms o reerence or an Ao the Board to meet regularly and receive repor

management and internal and eternal auditors

o internal control, and to provide reasonable as

control procedures are in place and are being o

a Arrangements under terms o reerence or a FinCommittee o the Board to meet regularly and r

rom Finance Management on the soundness o

management, and to provide reasonable assurapractices are in place and being ollowed

a An organisational structure to support businessand with clear lines o responsibility

a An Internal Audit unction with an annual internplan and producing an annual internal audit rep

a Adoption o a risk-based approach to in ternal coevaluating the likelihood and signicance o i de

corporate risks, vesting responsibility or risk man

and internal control with designated owners, an

an ongoing process o monitoring and reporting

against the companys key risks established thro

corporate risk management unction

a A Business Plan and Budget supporting strategicoperational plans, nancial targets, regularly rev

a comparison o actual with budget and with o

a quarterly basis, operating cash fow and varian

and key perormance indicators, all o which are

by the Board

a Measurement o nancial and other perormancthe Delivery Plan objectives and key perormanc

and targets

a Monitoring by the Eciencies Group o Value orobjectives stated in the Chie Eecutives Ecien

The Eciencies Group is chaired by the Director

& Business Services.

Internal nancial controlGHA Board, Committee structure and related matters continued


Gl H i A i i A lR dA 2009/1035 Gl H i A i i A l R d A 2009/10


19/36

Management o Business Risk

The Board is responsible or ensuring that business risk

is managed jointly, with the Eecutive Management team,

or identiying the major business risks aced by the organisation

and or determining the appropriate course o action to manage

those risks. The nancial implications o major business risks

are controlled by means o delegated authorities, which reserve

signicant matters to the Board or decision. Segregation

o duties, levels o project approval and physical controls

over access to assets and inormation are the responsibility

o the Eecutive Management team.

Corporate Risk

The Board has continued to develop its risk management

strategy and review the corporate risk register. A risk workshop

was held in June 2009 to prepare the corporate risk register

or the orthcoming year. This was used to inorm the Internal

Audit Plan or 2009/10. In February 2010 the Audit Committee

approved the Annual Audit Plan covering the period to

31 March 2011 (note, in the year the audit plan was made

synchronous with the nancial year). The Internal Audit plan

was supplemented with reviews o key nancial systems and

special eercises.

Throughout the year ended 31 March 2010 GHA has maintained

a system o internal control, which includes an on-going risk

management process or cascading the corporate risk register

into the operational business and identiying, evaluating and

managing the signicant risks aced by the organisation.

This process has been improved during the year.

Management Inormation Systems

Management Inormation Systems have been developed to

provide inormation on the key areas outlined in the Business

Plan and Delivery Plan. Business perormance is reported monthly

against key nancial and non-nancial targets. Management

accounts comparing actual results against budget are presented

to the Board monthly and to the Finance Committee quarterly.

The organisation continues to broaden and develop the depth

and detail o data required to assist management at all levels.

Investment Appraisal

Capital ependiture is specied in the Business Plan and regulated

by a budgetary process and Scheme o Financial Delegation.

For ependiture beyond specied levels or out with budget

and plans, approval is required by Committee or the Board

as appropriate.

Quality and Integrity o Personnel

The integrity and competence o personnel is ensured and

maintained through ormal recruitment processes and subsequent

training and development initiatives. High quality personnel are

an essential part o the control environment and the conduct

and ethical standards epected are embodied within the

organisations stated aims and objectives.

On behal o the Board

Sandra Forsythe, Chair

27 August 2010

The Board is responsible or preparing the Boards Report

and the nancial statements in accordance with applicable

law and regulations.

Industrial and Provident Society law requires the Board

to prepare nancial statements or each nancial year.

Under those regulations the Board have elected to prepare

the nancial statements in accordance with UK Accounting

Standards.

The group and parent nancial statements are required

by law to give a true and air view o the state o aairs

o the group and the parent association and o the groupsand the parent associations surplus or decit or that period.

In preparing these nancial statements, the Board is required to:

a Select suitable accounting policies and then applythem consistently

a Make judgments and estimates that are reasonableand prudent

a State whether applicable UK Accounting Standards andthe Statement o Recommended Practice have been

ollowed, subject to any material departures disclosed

and eplained in the nancial statements

a Prepare the nancial statements on the going concernbasis unless it is inappropriate to presume that the group

and parent association will continue in business.

The Board is responsible or keeping proper accoun

that disclose with reasonable accuracy at any time

position o the group and the parent association a

them to ensure that its nancial statements comp

the Industrial & Provident Societies Acts 1965 to 2

Industrial and Provident Societies (Group Accounts

1969, the Housing (Scotland) Act 2001 and the Reg

Landlords Accounting Requirements (Scotland) Ord

The Board has general responsibility or taking suc

as are reasonably open to it to saeguard the asset

o the association and to prevent and detect raud

other irregularities.The Board is responsible or the maintenance and

o the corporate and nancial inormation include

associations website. Legislation in the UK govern

the preparation and dissemination o nancial stat

may dier rom legislation in other jurisdictions.

Statement o Boards responsibilities in respect o the Boards reportand the nancial statements

Internal nancial control continued


GlasgowHousingAssociation AnnualReportandAccounts2009/1037 GlasgowHousingAssociation Annual Report and Accounts 2009/10


20/36

The Boards nancial statements

We have audited the nancial statements o The Glasgow

Housing Association Limited or the year ended 31 March

2010 which comprise the Group and Association Income and

Ependiture Account, the Group and Association Balance Sheets,

the Group Cash Flow Statement, the Group and Association

Statement o Total Recognised Surpluses and Decits, and the

related notes. These nancial statements have been prepared

under the accounting policies set out therein.

Respective Responsibilities o The Board and Auditors

The Boards responsibilities or preparing the nancial

statements in accordance with applicable law and UnitedKingdom Accounting Standards (United Kingdom Generally

Accepted Accounting Practice) are set out in the Statement

o Boards Responsibilities.

Our responsibility is to audit the nancial statements

in accordance with applicable law and regulatory requirements

and International Standards on Auditing (UK and Ireland).

Those standards require us to comply with the Auditing Practices

Boards Ethical Standards or Auditors. This report, including

the opinion, has been prepared or and only or the group

and Associations members as a body in accordance with

Section 9 (1) o the Friendly and Industrial and Provident

Societies Act 1968 and or no other purpose. We do not,

in giving this opinion, accept or assume responsibility or

any other purpose or to any other person to whom this report

is shown or into whose hands it may come save where epressly

agreed by our prior consent in writing.

We report to you our opinion as to whether the nancial

statements give a true and air view and are properly prepared

in accordance with the Industrial and Provident Societies Acts1965 to 2002, the Industrial and Provident Societies (Group

Accounts) Regulations 1969, the Housing (Scotland) Act 2001

and the Registered Social Landlords Accounting Requirements

(Scotland) Order 2007.

In addition we report to you i, in our opinion, a satisactory

system o control over transactions has not been maintained,

i the group and Association have not kept proper accounting

records, i we have not received all the inormation and

eplanations we require or our audit, or i inormation specied

by law regarding directors remuneration and other transactions

is not disclosed.

We read the Board Report and other inormation within the

nancial statements. We are not required to consider whether

the Boards statement on internal control airly represents the

groups and Associations system o internal control, or to orm

an opinion on the eectiveness o the groups and Associations

system o internal control. We consider the implications or our

report i we become aware o any apparent misstatements

or material inconsistencies with the nancial statements.

Basis o Opinion

We conducted our audit in accordance with International

Standards on Auditing (UK and Ireland) issued by the Auditing

Practices Board. An audit includes eamination, on a test basis,

o evidence relevant to the amounts and disclosures in the

nancial statements. It also includes an assessment o the

signicant estimates and judgements made by the Board

in the preparation o the nancial statements, and o whether

the accounting policies are appropriate to the groups and

Associations circumstances, consistently applied and

adequately disclosed.

We planned and perormed our audit so as to obtain all the

inormation and eplanations which we considered necessary

in order to provide us with sucient evidence to give reasonable

assurance that the nancial statements are ree rom material

misstatement, whether caused by raud or other irregularity

or error. In orming our opinion we also evaluated the overall

adequacy o the presentation o inormation in the nancial

statements.

Opinion

In our opinion the nancial statements:

a Give a true and air view o the state o the groupsand Associations aairs as at 31 March 2010 and

o its surplus and cash fows or the year then ended

a Have been properly prepared in accordance with UnitedKingdom Generally Accepted Accounting Practice

a Have been properly prepared in accordance with theIndustrial and Provident Societies Acts 1965 to 2002,

the Industrial and Provident Societies (Group Accounts)

Regulations 1969, the Housing (Scotland) Act 2001 and

the Registered Social Landlords Accounting Requirements

(Scotland) Order 2007.

PricewaterhouseCoopers LLP

Chartered Accountants and Registered Auditors

Glasgow

13 September 2010

Independent auditors report to the members oThe Glasgow Housing Association Limited


GlasgowHousingAssociation AnnualReportandAccounts2009/1039 GlasgowHousingAssociation Annual Report and Accounts 2009/10


21/36

Notes

2010 '000

Beoreexceptional

items2009

'000

Exceptionalitems2009

'000

Total2009

000

Turnover 3 251,232 249,620 - 249,620

Operating costs 3 (216,886) (219,759) 8,035 (211,724)

Operating surplus / (decit) 3 34,346 29,861 8,035 37,896

(Loss)/surplus on sale o xed assets housing properties 9 (8,803) 6,157 - 6,157

Interest receivable and similar income 10 84 1,800 - 1,800

Interest payable and similar charges 11 (8,596) (3,585) - (3,585)

Surplus / (decit) on ordinary activities beore taxation 17,031 34,233 8,035 42,268

Taxation on surplus / (decit) or the year 12 (21) 129 - 129

Surplus / (decit) or the year 22 17,010 34,362 8,035 42,397

Notes

2010 '000

2009 000

Surplus or the year 22 17,010 42,397

Unrealised gain on revaluation o xed assets 22 29,558 19,407

Actuarial loss on pension assets and liabilities 24 (52,448) (16,015)

Total recognised surpluses and decits or the year (5,880) 45,789

2010 '000

2009 000

Reported surplus or the year 17,010 42,397

The notes on pages 44 to 64 orm part o these nancial statements.

Group Income and Ependiture Accountor the year ended 31 March 2010

Group Statement o Total Recognised Surpluses and Decitsor the year ended 31 March 2010

Note o Historical Cost Income and Ependitureor the year ended 31 March 2010

Notes

2010 '000

Beoreexceptional

items2009

'000

Exceptionaitems2009

'000

Turnover 3 244,527 243,473

Operating costs 3 (210,283) (213,140) 8,035

Operating surplus / (decit) 3 34,244 30,333 8,035

(Loss)/surplus on sale o xed assets housing properties 9 (8,803) 6,157

Interest receivable and similar income 10 80 1,748

Interest payable and similar charges11

(8,567) (3,585)

Surplus / (decit) on ordinary activities beore taxation 16,954 34,653 8,035

Taxation on surplus / (decit) or the year 12 - -

Surplus / (decit) or the year 23 16,954 34,653 8,035

Notes

2010 '000

Surplus or the year 23 16,954

Unrealised gain on revaluation o xed assets 23 29,558

Actuarial loss on pension assets and liabilities 24 (52,448

Total recognised surpluses and decits or the year (5,936

2010 '000

Reported surplus or the year 16,954


Association Income and Ependiture Accountor the year ended 31 March 2010

Association Statement o Total Recognised Surpluses and Decitsor the year ended 31 March 2010

Note o Historical Cost Income and Ependitureor the year ended 31 March 2010




22/36

Notes

2010 '000

2009 '000

Tangible xed assets

Housing properties 15 452,769 331,721

Other tangible xed assets 16 29,810 29,824

482,579 361,545

Debtors due ater more than one year 17 514,852 669,797

Current assets

Debtors due within one year 17 45,688 37,868

Cash at bank and in hand 28,330 20,190

74,018 58,058

Creditors: amounts alling due within one year 18 (86,202) (95,351)

Net current liabilities (12,184) (37,293)

Total assets less current liabilities 985,247 994,049

Creditors: amounts alling due ater more than one year 19 (254,000) (154,500)

731,247 839,549

Provisions or liabilities and charges 20 (509,080) (663,926)

Government grant 15 (1,080) (1,104)

Net assets excluding pension liability 221,087 174,519

Pension liability 24 (55,959) (3,511)

Net assets including pension liability 165,128 171,008

Capital and reserves

Share capital 21 - -

Revenue reserve excluding pension reserve 22 161,478 144,468

Pension reserve 22 (55,959) (3,511)

Revenue reserve including pension reserve 22 105,519 140,957

Revaluation reserve 22 59,609 30,051

Consolidated unds 165,128 171,008

These nancial statements were approved by the Board on 27 August 2010 and were signed on its behal by:

Sandra Forsythe, Chair Wilma Masterton, Board Member Gordon Moir, Secretary


Group Balance Sheetat 31 March 2010

Notes

2010 '000

Tangible xed assets

Housing properties 15 452,769

Other tangible xed assets 16 29,810

482,579

Debtors due ater more than one year 17 514,852

Current assets

Debtors due within one year 17 44,369

Cash at bank and in hand 27,323

71,692

Creditors: amounts alling due within one year 18 (84,422)

Net current liabilities (12,730)

Total assets less current liabilities 984,701

Creditors: amounts alling due ater more than one year 19 (254,000)

730,701

Provisions or liabilities and charges 20 (509,080)

Government grant 15 (1,080)

Net assets excluding pension liability 220,541

Pension liability 24 (55,959)

Net assets including pension liability 164,582

Capital and reserves

Share capital 21 -

Revenue reserve excluding pension reserve 23 160,932

Pension reserve 23 (55,959)

Revenue reserve including pension reserve 23 104,973

Revaluation reserve 23 59,609

Associations unds 164,582

These nancial statements were approved by the Board on 27 August 2010 and were signed on its behal by:

Sandra Forsythe, Chair Wilma Masterton, Board Member Gordon Moir, Secretary


Association Balance Sheetat 31 March 2010

g gg g



23/36

Group Cash Flow Statementor the year ended 31 March 2010

Notes

2010 '000

2009 '000

Net cash infow rom operating activities 27 44,859 50,809

Returns on investment and servicing o nance

Right to buy and Second stage transer proceeds 9 9,350 18,339

Payment to Glasgow City Council or their share o right to buy proceeds and payments

to Second Stage transer Organisations9 (13,055) (5,202)

Interest received 10 84 746

Interest paid 11 (7,999) (3,585)

(11,620) 10,298

Capital expenditure and nancial investment

Improvement o properties 15 (162,146) (175,922)

Purchase o other xed assets 16 (3,579) (6,374)

Grants received 25 55,216 59,765

(110,509) (122,531)

Management o liquid resources

Cash withdrawn rom money market deposits 27 - 102

Financing

Loan drawn down 72,350 70,500

Scottish Government Loan received 19 12,500 12,500

84,850 83,000

Increase / (reduction) in net cash 27 7,580 21,678


Notes to the Financial Statementsor the year ended 31 March 2010

1. Legal Status

The Glasgow Housing Association Limited (GHA or the

Association) is registered under the Industrial and Provident

Societies Act 1965 and is a housing association registered with

the Scottish Government under the Housing (Scotland) Act 2001.

The Association and its subsidiaries are reerred to as the Group.

2. Accounting Policies

The ollowing accounting policies have been applied consistently

in dealing with items which are considered material in relation

to the nancial statements.

Basis o Accounting

The nancial statements o the Group and the Association are

prepared in accordance with applicable accounting standards

and in accordance with the accounting requirements included

with the Registered Social Landlords Accounting Requirements

(Scotland) Order 2007, and under the historical cost accounting

rules, modied to include the revaluation o properties held or

letting and commercial properties. The nancial statements

have also been prepared in accordance with the Statement

o Recommended Practice, Accounting by Registered Social

Landlords Update 2008, issued by the National Housing

Federation.

Whilst the Group and Association Balance Sheets show net

current liabilities, the Group has in place a loan acility as

eplained in note 19 which allows the Group and Association

to borrow sucient unds to meet its current liabilities as they

all due. Accordingly the nancial statements have been

prepared on a going concern basis.

On 7 March 2003 the Association acquired, as part o a largescale voluntary transer, the housing stock and a number o

other related assets o Glasgow City Council. The acquisition was

structured such that the Association paid a notional consideration

o 25 million or the assets (this consideration was not based

on a valuation o the assets being acquired) and received grant

unding rom the Scottish Eecutive o 368 million, payable in

instalments over the net 10 years. The net eect o the transer

was thereore the acquisition o the assets, at their current value,

and a remaining 343 million o grant income.

The ecess o the purchase price over the air value o the net

assets acquired was 7 million. Under the recommendations o

the SORP or business combinations and the requirements o FRS

10 Goodwill and intangible assets, this amount would have been

classied as a ed asset on the balance sheet and amortised

over its estimated useul economic lie. The Board, however,

did not believe that this treatment presented a true and air

view o the nature o the large scale voluntary transer as a whole,

since they believed that the amount paid to the Council should be

considered in substance as an adjustment to the grant receivable

o 368 million. Consequently, the assets were included in thenancial statements at their air value and the grant receivable

rom the Scottish Eecutive was reduced to 361 million.

Basis o Consolidation

The Group nancial statements consolidate those o the

Association and its subsidiary undertakings drawn up to

31 March 2010.

Prots or losses on intra-group transactions are eli

in accordance with FRS 2 - Accounting or subsidia

Turnover

Turnover, which is stated net o value added ta, re

income receivable rom lettings and service charge

ees receivable, revenue grants and other income.

o the group income and ependiture account, turn

includes actoring income.

Grant Income

Grant income received is matched with the ependit relates. Where grant is paid as a contribution tow

ependiture, it is included in turnover. Where grant

rom government and other bodies as a contributi

the capital cost o housing schemes, it is deducted

o housing properties on the ace o the balance sh

reporting standards require tangible ed assets to

at purchase price, or valuation, less any provision

or diminution in value. However, this requirement c

the generally accepted accounting principles or Re

Landlords (RSLs) set out in the Statement o Recom

Practice: Accounting by Registered Social Landlord

The purpose o these capital grants is to subsidise

o social housing, and the income rom properties

o net cost. Accordingly the Board considers it nece

the accounting treatment set out in the SORP to giv

air view.

Bad and Doubtul Debts

Provision is made against rent arrears o current an

tenants as well as other miscellaneous debts to ththey are considered potentially irrecoverable.

Supported Housing

Ependiture on housing accommodation and supp

is allocated on the basis o the number o units or

accommodation, ecept or stang and running co

the level o ependiture is directly attributable.

Deposits and Liquid Resources

Cash, or the purpose o the cash fow statement, c

cash in hand and deposits repayable on demand, l

repayable on demand. Liquid resources are current

investments that are disposable without curtailing

the business and are readily convertible into know

o cash at or close to their carrying values.

Pensions Accounting Policy

GHA participates in the Strathclyde Pension Fund (

The Fund is administered by Glasgow City Council i

with the Local Government Pension Scheme (ScotlaRegulations 1998 as amended. All eisting and new

have the option o joining the Fund. The Fund is a d

one, providing benets based on nal pensionable

contracted out o the State Second Pension. Assets

o the Fund are h eld separately rom those o the A



24/36

Notes to the Financial Statementsor the year ended 31 March 2010 (continued)

The Association accounts or its participation in the Fund

in accordance with FRS 17 Retirement benets. The amendment

to FRS 17 Retirement benets has been adopted in these

GHA Annual Report 2009_10

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