Managing Your ALMO

Members Survey

Survey Questions

1. Board Structure2. Performance Management3. Annual Delivery Plan4. and 5.Services in the MA or SLAs6. Negotiating the management fee

Responses

• Depending on question between 17 and 19 councils responded (36 questioned)

• Some common ground but no real pattern or consistency

• Similarities but even more diversity across all questions

ALMO Board Structure

Key Findings•Most common composition is for equal numbers of tenant, independent and local authority nominees.•Boards range in size between 9 and 18 members •70% of Boards have between 12 and 15 members

Trends

• Some evidence that recent governance reviews have resulted in Boards becoming smaller e.g. Blackpool, Cheltenham

• In a number of cases the proportion of tenants on the Board has increased whilst councillor representation has decreased e.g Nottingham.

• There is an increasing emphasis on Board skills and professionalism as ALMOs become more diverse, commercially focussed with greater risk exposure e.g Nottingham has co-opted members onto the Board to enhance skills.

Performance ManagementStructures and reporting

• Some similarities with monthly and quarterly structures/meetings

• Asset Management and Finance meetings

• Differences in reporting of performance– NE Derbyshire; Nottingham

The Wolverhampton model

Wolverhampton City Council

Service Manager Housing Strategy and DevelopmentAppropriate employees

Wolverhampton Homes

Director of ResourcesHead of Policy and PerformanceAppropriate officers

Asset Management Group

Financial Issues GroupDelivery Plan Technical Meetings

Wolverhampton City Council

Chief Financial Officer (or Deputy) (Chair)Finance Manager (Housing)Service Manager Housing Strategy and Development

Wolverhampton Homes

Director of ResourcesHead of Financial Management

Wolverhampton City Council

Assistant Director - Regeneration (Chair)Head of HousingService Manager Housing Strategy and DevelopmentHead of Corporate Finance (or representative)Appropriate employees

Wolverhampton Homes

Chief ExecutiveDirector of Property ServicesDirector of FinanceHead of OperationsHead of Asset ManagementContract and Compliance ManagerDecent Homes Programme ManagerAppropriate officers

Wolverhampton City Council

Service Manager HousingStrategy and Development

Appropriate employeesWolverhampton

HomesHead of Policy and Performance

Principal Performance Officer

Performance and Operations Group

Reporting Performance

• Where does performance get reported to?– Cabinet; ALMO board; senior officers group?

• How often?– Routinely? By exception?

Annual Delivery PlanKey Findings from Survey

•Majority of ALMOs do have an Annual Delivery Plan (78%)•4 councils don’t currently have an Annual Delivery Plan although it may be a requirement of the Management Agreement(22%)•Most Plans are focussed around budget setting, operational issues and performance monitoring •Some councils are moving towards a more strategic approach with medium term plans of between 3 and 5 years.• Some authorities use the Plans set out the ALMO’s role in delivering specific council strategic priorities, not ‘business as usual’ issues

Management and Service Level Agreements• Differences between existing, under review or new

management agreements• SLAs cover standard stuff - ICTS; Payroll; HR; Legal;

Property; Treasury management; etc.• Other services– Homelessness; – Housing Benefits; – New build; – facilities management/repairs; – social care

Negotiating the Management Fees

Key findings•No patterns or trends•No correlation between stock numbers, rent roll and payment rate

•Fees as % of rent debit per council•Management fee, fee rate per property and number of properties per council

Fees as % of rent debit per council

Management fee, fee rate per propertyand number of properties per council

Managing Your ALMO

Other Issues?