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Berneslai Homes Board 4.00 p.m.
7 November 2019 Board Room, Gateway Plaza
4.00 to 4.30 p.m. - Presentation by Amanda Garrard on Findings to Date
A G E N D A
PUBLIC ITEMS 1. Apologies 4.30 2. Declarations of Interest 3. Minutes of meeting held 12thSeptember 2019 4 Matters Arising
Reports for Decision
5. Employee Health and Safety Peformance (AB) 4.40 Appendix 1 – Berneslai Homes’ Health and Safety Performance Statistics 2018/19 6. Berneslai Homes Financial Performance Position (FW) 4.50 Appendix A – BH Management Financial Position as at 30/9/19 Appendix B – Construction Services Financial Position as at 30/9/19 Appendix C – Housing Growth Position Statement as at 30/9/19
7. Audit Committee Annual Report (GE) 5.00 Appendix A – The Audit Committee Annual Report 2018/19 Appendix B – Audit Committee Terms of Reference
A fresh approach to people, homes and communities
CONFIDENTIAL ITEMS Reports for Decision 8. Update on the 2020/21 Budget (AR) 5.10 Appendix A – Budget Submission 2020/2021
9. The Purchase, Conversion and Refurbishment of 5.20 Berneslai Close by Berneslai Homes Ltd (SD) Appendix A – Financial Implications
Reports to Note/For Discussion 10. PRIP – Verbal Update (SD) 5.40 11. Outcome of the Remuneration Committee 5.50 Report of the Board Member Review and Recruitment Process (AG) Committee Minutes (to note) 12. Draft HR Committee Minutes 5/9/2019 6.00 13. Draft Audit Committee Minutes 3/10/2018 Date of Next Meeting – 12th December 2019
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Minutes of Berneslai Homes Board 12th September, 2019
In Attendance:-
Paul Hayes - Board Member Chair Gary Ellis - Board Member Liana Khachatryan - Board Member Caroline Makinson - Board Member Laura Rawnsley - Board Member Adriana Rrustemi - Board Member Asa Steele - Board Member Sarah Tattersall - Board Member Amanda Garrard - Chief Executive Sarah Barnes - Customer Services and Engagement Manager Stephen Davis - Director of Assets, Regen & Construction Alison Rusdale - Director or Corporate Services Faye Williams - Finance Manager Lee Winterbottom - Construction Services Manager David Shepherd - BMBC Service Director Regeneration and Culture The Board welcomed Amanda Garrard to her first Board meeting.
Item 1 - Apologies Apologies were received from Dave Fullen, Director of Customer and Estate Service and Simon Rogers, Board Member.
Action
Item 2 – Declaration of Interest The meeting noted that DS is a Governor and Board Member of Barnsley College.
Item 3 – Minutes of previous meeting held 15th July 2019 The minutes were agreed as a true and accurate record.
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Item 4 – Matters Arising The matters arising actions were noted. Item 12 – Strengthening the Tenants Voice – Discussion took place on the process for reviewing the effectiveness and impact of the new arrangements. Board were advised that TPAS have been approached and will be undertaking an official review at the appropriate time. It was also agreed that once the recruitment process has taken place a further update will be provided in December on the workplan set by the Tenants Panel. Board were also informed that officers will be liaising with individual Housing Management Teams with regard to local engagement.
Action SB
Item 5 – Annual Report to Tenants 2018/19 SB presented the report and summarised the key points. She advised that additional positive feedback has now been received and an updated version will be circulated. Board felt the report was positive and were pleased it also includes wider information in addition to the landlord function, making reference to the community and how BH looks after its tenants. Board also highlighted the contribution Berneslai Homes makes to the Barnsley Pound in helping the local economy. DS provided positive comment on the infographics and was pleased to see that it demonstrates Berneslai Homes ensures quality homes and services are delivered, going beyond the basic service. Clear connection with the Council can also be seen, showing the alignment with the priorities in the Corporate Plan, and in the future with the Barnsley Plan which is being jointly developed by BMBC/BH. AG advised that a presentation will take place at a future Customer Panel, picking up the main points and responding to any concerns and how they will be resolved, working together with tenants/partners etc. Board extended their thanks to all involved. Resolved: Board accepted the report, noted its contents and provided feedback.
SB
Item 6 – Berneslai Homes Report and Accounts to the 31st March 2019 FW presented the report which seeks approval of the report and accounts for the period ended 31st March 2019 and informs Board members of the outcome of the external audit of the Company’s financial statements. The key points were highlighted.
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Attention was brought to the income statement which shows that the company generated a surplus of just under £500K. This is less than the previous year, mainly due to the release of an approved sum earmarked for reserves to support housing growth. The retained surplus, excluding pension liabilities is £13.4m. The overall pension deficit is £34M, an increase of £10M since last year, largely due to adverse movements on assumptions. In addition the accounts have been adjusted to reflect the decision of the Court of Appeal in the McCloud case, (details are outlined in paragraph 3.9 of the report). This is a general provision and consistent with all organisations. Further work is taking place on next year’s liability. GE as Chair of Audit Committee provided assurance to Board that at the Audit Committee meeting held in August detailed discussion had taken place, particularly around the pension issue. BDO are pleased with the accounts and are expected to give an unqualified opinion. No weaknesses were identified. Assurance was also provided from BMBC who provided a letter to BDO acknowledging the pension deficit and guaranteeing the availability of the funds to ensure Berneslai Homes remains as a going concern and Board members confirmed their satisfaction with this. Board referred to the Directors’ Indemnity Provision and requested information on what is covered under Directors’ Insurance. AR to circulate the policy to Board members. Board noted the tender process for the appointment of external auditors for the year ending 31 March 2020. Although the BDO team working on BH accounts changes year on year, Board felt consideration needs to be given to potentially using a new external auditor. Resolved: i) Berneslai Homes Ltd. Report and Accounts for the period ended 31
March 2019 were approved ii) The accounts were signed by the Chair plus 1 other Board Member
on behalf of the Board iii) The report of the External Auditor was noted iv) The letter of representation was approved v) The Chair signed the letter of representation on behalf of the Board
Action AR AR
Item 7 – Berneslai Homes Financial Performance as at 31/7/2019 FW presented the report to Board which provides an update on the financial performance of Berneslai Homes. They keys points were highlighted. The position with regard to Housing Management and Construction Services is similar to that reported to the July Board There is nothing significant to report to Board on the variations outlined at Section 4.3 of the report.
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The Housing Growth position is also similar to July and the Council are providing a forecast on a quarterly basis on the draw-down on reserves. Reference was made to the Private Landlord Scheme, in particular with regard to the continued overspend. SD advised a detailed report had been presented to Audit Committee which outlined the targets to be worked towards over the next 2 years. Clarification was provided on a number of issues in relation to stores and the graduate budget. Board also questioned how the savings from the Tenants First Service were to be expended. DF to circulate response. Resolved: Board were assured on the company’s financial position and approved the report.
Action DF
Item 8 - Quarterly Performance LR advised the meeting that Customer Services had considered the report in detail at their last meeting. She was pleased to report on the excellent performance and that targets were on track. The main discussions at Committee were on the telephony service, which is a major issue, rent collection levels in relation to the challenges of Universal Credit and the waiting list, all of which will be monitored. Board noted the additional work required in order to ensure the rent is obtained and sustaining this is something Customer Services will be considering. The HRA working balance earmarked £3M for ‘blips’ in collection rates and the same provision has also been made by the Council. Demand on the waiting list as a result of homeless legislation was raised which has impacted on less properties being available for those in Band 4. Board were advised that a meeting had been arranged with the Council to review. It was also noted that new regulatory standards may be developed by the government and this may affect the KPI’s. If this is the case discussion will be required on how/what is reported to Committees, those that impact on the business and what is collected for the Council. Berneslai Homes SMT to discuss and report back to Board in the new year. Resolved: Board considered and accepted the performance information and were given the opportunity to express any views where they would wish to see further improvements being made.
AG
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CONFIDENTIAL ITEMS Action
Item 9 - Delivery against the Capital and Revenue Repair Programme Q1 2019/20
Resolved:
Board noted the update.
Item 10 – HRA Business Planning
Resolved:
Board noted the update.
Item 11 – Draft Audit Committee Minutes 1/8/2019
Resolved:
The minutes were noted.
Item 12 – Draft Customer Services Committee Minutes 8/8/2019
Resolved:
The minutes were noted.
MATTERS ARISING ACTIONS LIST Board Meeting 12th September 2019
Public Agenda
Item Action By Whom Comments
Item 4 – Matters Arising from 15/7
Item 12 – Strengthening the Tenants Voice
Update on the Tenants Panel workplan to be provided to the Board in December
SB Noted
Item 5 – Annual Report to Tenants 2018/19
Updated version to be circulated SB Actioned (sent within Key Message)
Item 6 – BH Report and Accounts to the 31st March, 2019
Copy of Directors’ Insurance to be circulated to Board
Consideration to be given to potentially appointing new External Auditor
AR
AR
Actioned
Report submitted to Audit Committee on 3/10/19
Item 7 – BH Financial Performance as at 31/7/2019
Details of the use of the Tenants First Savings to be provided.
DF The majority of the sum is earmarked for Training and Development activities. In addition the team are developing a number of special projects for delivery this year
Item 8 – Quarterly Performance
If new regulatory standards are developed by the government, discussion required on KPI’s i.e. how/what is reported to Committee; those that impact on the business and those collected for the Council – BH SMT to discuss and report back toBoard in the new year.
AG To be picked up as part of the CEO presentation 7/11
To be reported at the Boardd Away Day on the 27th Feb.
Item No. 4
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Report Title
Employee Health And Safety Performance 2018 To 2019
Date 7th November 2019
Report To BOARD Confidential No
Report From
Risk and Governance Manager Contact Claire Denson 01226 774263
Ian Bell 01226 773711
1. Purpose of report 1.1 To inform members of the Board of the performance 2018/19
with regards to Employee Health and Safety in Berneslai Homes.
2. Recommendation/s
That the Board:
2.1 Note the performance of the health and safety systems and procedures that are operational within the company.
2.2 Approve the areas of further development and monitoring identified at Section 10.
3. Introduction
3.1 Effective health and safety management enables the Company to meet its legal, moral and economic obligations.
3.2 In order for Berneslai Homes to monitor and measure employee health and safety performance and prioritise areas of health and safety risk, an annual health and safety review is performed.
3.3 Quarterly Health and Safety updates to the HR Committee examine the detail of health and safety performance, whilst the annual performance report presents a complete overview of the year; comparing annual data to identify and question trends to ensure a robust monitoring regime.
Agenda Item No.
5 A fresh approach to people, homes and communities
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3.4 In considering the annual health and safety performance, the following areas have been covered:
• Inspections and Audits• Policy and Guidance• Health and Safety Groups• Information, Instruction and Training• Health and Wellbeing• Health and Safety Performance
4. Health and Safety Inspections and Audits
BMBC Audit
4.1 The BMBC Health, Safety and Emergency Resilience Service provides the statutory ‘Competent Person’ service that imparts comprehensive advice and assistance to Berneslai Homes through a Service Level Agreement on all aspects of health and safety and emergency resilience.
4.2 As part of their ‘competent person’ service, BMBC undertakes two yearly audits of the management of health and safety, which requires managers to self-assess their compliance with health and safety issues. Audits are alternated annually between Construction Services and the rest of the company. The two-year review of Construction Services in November 2018 and the rest of the company in March 2019 by BMBC of the company’s health and safety management systems achieved an average score of 99.5% compliance. The managers of four key business areas took part in the audit, with individual scores of 100%, 100%, 100% and 98%. The BMBC H&S assessor said: “All areas of Berneslai Homes show a good awareness of their responsibilities at all levels with comprehensive procedures, training and risk assessments in place”. The 98% relates to Construction Services. Whilst all risk assessments are up-to-date and distributed accordingly, with a clear online audit trail, the recommendation was that all risk assessments are signed by lead officers.
4.3 Berneslai Homes works to the BMBC Resilience arrangements although we have our own Resilience and Continuity Plans. A full review of our Resilience and Continuity Plan was completed during 2017/18 to ensure they reflected the BMBC format. During 2018/19 we have carried out an annual review to ensure information was up to date. Following the review, a refresher training session was delivered to all officers named on the plan in March 2019. The training also incorporated an exercise to test our continuity plans to ensure lead officers understood the process should an emergency arise and identify any learning points. Arrangements are in place to ensure the plan is tested periodically.
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Construction Site Inspections 4.4 Health and safety inspections are carried out on a regular basis by the
Construction Services Health and Safety Manager, Trade Union representatives and site operations managers. The BMBC Health and Safety Service also attend on an ad-hoc basis. Overall standards are excellent with only minor recommendations being made. In addition to this, site operations managers carry out daily observations and complete weekly inspection sheets where required.
4.5 Managers review contractor risk assessments and safe systems of work prior
to commencement of the contract; these are retained in the health and safety file on site where applicable.
5. Health and Safety Policy and Guidance 5.1 Berneslai Homes’ Corporate Health and Safety Policy 2018-20 has been
reviewed in line with this report to ensure it is fit for purpose and compliant with current Health and Safety legislation. No notable changes were made. The Policy sets a clear direction for the organisation to follow, details responsibilities and provides a framework for continuous improvement.
5.2 The required annual review of the Health and Safety Management Procedures
has been undertaken to ensure they are in line with current procedure. The procedures are also updated as required, which ensures that the annual review is a quality checking exercise rather than a procedure review. The procedures outline the key management requirements for elements of health and safety, e.g. working at heights. Each procedure outlines the risks associated with a particular element, gives a brief overview of the legal requirements, and details how it is managed operationally. These can be accessed by staff via the intranet or their manager.
5.3 Specific lone working policies and procedures are in place and constantly
monitored and updated to minimise the associated risks. Company wide procedures include a dedicated Emergency Response telephone line for staff that feel in danger and require a police response. An exercise was undertaken at the request of HR Committee during 2018/19 to provide an overview of relevant personal safety procedures undertaken by frontline services. This provided assurance that lone working process were sufficient around the company.
5.4 The annual review of the Occupation Group Risk Assessments has been
undertaken, which assesses the risks and identifies controls for each job role within the Company. Assessments are also updated as required.
5.5 The annual review of the Task-Based Risk Assessments and Safe Systems
has been undertaken. These assess all health and safety related tasks undertaken by Craft.
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Health and Safety Groups
6.1 Berneslai Homes operates two Health and Safety Groups; one for Construction Services and one for the rest of the company called the Housing Management Group. The Groups comprise of staff representation from a cross section of the company, specialist officers, Trade Union representatives and a member of SMT. The Construction Services group meets on a bi-monthly basis and the Housing Management group on a quarterly basis to monitor progress and discuss any new issues. The Construction Services Health and Safety Manager and the Risk and Governance Manager attend both meetings.
6.2 The objectives of both Groups are to:
a) Promote health and safety within the company, including communicationand training.
b) Monitor health and safety performance, including the quarterly accidentreports.
c) Be proactive in the research and implementation of new and safe workingsystems for all employees with associated development of new or revisedpolicies.
d) Keep under review policy implications arising out of new legislation,national developments and good practice.
e) Monitor and review operational issues within the Company.
6.3 Health and safety is a standard agenda item on the bi-monthly Trade Union Liaison meetings.
7. Health and Safety Information, Instruction and Training
7.1 Health and safety is a standard item within the Team Brief and Toolbox Talks, and featured in Key Messages as required. This is to continually ensure that health and safety issues are refreshed and embedded across the company.
7.2 Health and Safety is a compulsory induction module for all new staff, which also includes the issuing of a dedicated induction manual. The full induction process also involves the initial Personal Development Review (PDR), including any further health and safety essential training. Health and safety training is a dedicated section within the PDR, which identifies training requirements by occupation group as well as by individual need.
7.3 Berneslai Homes’ intranet site contains a section dedicated to health and safety, which includes corporate policies and procedures, along with risk assessments, useful advice and guidance.
7.4 All managers attend the IOSH accredited Managing Safely or equivalent Site Management Safety Training Scheme course and are required to attend refreshers.
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8. Health and Wellbeing
8.1 The company has a proactive approach to the health and wellbeing of its employees and this is detailed within the Health and Wellbeing Strategy. This Strategy has been informed by asking employees about their health and wellbeing need, with the results of the 2018 health and wellbeing survey feeding into the current strategy. The aim of the strategy is to work with staff to integrate health and wellbeing into day-to-day activities and to create a positive and healthy working environment. Through the strategy we provide a framework where we take a proactive and engaging approach to enhancing the health and wellbeing of our staff.
8.2 This is achieved through wellbeing initiatives, employee support mechanisms and joint working with staff and their representatives and local partners to identify and address areas for improvement. We work with employees to ensure those issues which may impact negatively on staff health are identified and addressed. We ensure that managers have the key skills, knowledge and ability to support employees to improve their health and wellbeing. We also increase the awareness of our employees as to what is important in ensuring their own health and wellbeing. There are a number of effective policies and procedures in place to support employee health and wellbeing and we regularly review these to ensure that they support the strategy.
8.3 A health and wellbeing culture is embedded across the company that is facilitated by a number of policies and initiatives, which include:
• Flexible working policies, i.e.part-time working,homeworking, compressedhours, flexi-time scheme, etc.
• Managing Attendance• Stress Management• Financial Wellbeing• Disability Leave• Special Leave• Maternity, Paternity and
Adoption Leave, ParentalLeave, Shared ParentalLeave, Flexible Retirement
• Access to OccupationalHealth
• Face-to-face counsellingsessions
• On-site musculoskeletalphysiotherapy service
• Healthcare cash plans• Cycle to work scheme• Flu vaccination programme• Pilates• Walking groups
• Discounted Gym Membership• Foot Care• IVF Support Leave• Childcare Vouchers• Health and Wellbeing
Calendar of Events• Comprehensive health
surveillance programme
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8.4 The annual Health and Wellbeing checks continue in popularity since they were introduced in 2016 and were consequently doubled from 2017.
8.5 Throughout 2018/19 a number of health campaigns have also taken place including:
• Dry January• De-chox• No Smoking Day• Cancer Awareness• Financial advice• Mental Health Awareness• Back Care Awareness Week• Stress Awareness Month• Know Your Numbers (Blood Pressure)
8.6 The Occupational Health Service provided by the NHS is managed through a contract specification and performance monitored via quarterly contract review meetings.
8.7 Occupational Health and safety performance is reported to the Human Resources Committee on a quarterly basis.
9. Health and Safety Performance (Appendix 1)
9.1 Berneslai Homes record and monitor all accidents and incidents, which are part of a wider group of performance indicators, set out in Appendix 1.
9.2 The key points from the 2018/19 performance indicators are:
9.2.1 There was a decrease in: • Days lost due to accidents from 164 (at a cost of £10,510) to 118 (at a cost
of £7,713). Which is a £3k reduction in direct costs. • Reports of violence and aggression fell from 43 (0 days lost) to 28 (0 days
lost). • Over seven-day accidents from 5 to 4.• Major accidents remain at 0.• The total number of days absent due to Musculoskeletal Ill Health from
1,856 to 1,681.
9.2.2 An increase in: • Overall accidents from 31 to 33.• Lost time accidents from 9 to 11.• Over three-day accidents from 2 to 4.• First aid accidents from 2 to 8.• Medical treatment accidents from 13 to 14.• The days lost due to Mental/Emotional Wellbeing Ill Health from 945 to
1,346. • The number of employees absent due to Mental/Emotional Wellbeing Ill
Health from 35 to 38. • The number of employees absent due to Musculoskeletal Ill Health from 68
to 69.
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9.3 Accidents
9.3.1 It is pleasing to see that the accidents rate remains low, with a minor increase to 33. Of those 33 incidents, there are no concerning patterns to highlight with regards to the causes of accidents. Individual causes of accidents and related absences are monitored quarterly by the HR Committee.
9.3.2 Of the 33 accidents, 11 were lost time accidents, with the top five absences consisting of 27days, 21 days, 18 days, 17 days, and 13 days. The 27-day absence is attributed to an operative jarring his back when pushing a wheelbarrow around a tight corner. Following an investigation, the load weight in the wheelbarrow should have been reduced due to specific circumstances. Working at Height and Manual Handling procedures were reiterated to the operative, who has received all the required training.
9.3.3 82% of the 33 accidents and all lost time accidents are attributed to Construction Services, which is considered a high risk area by the HSE due to the construction industry being exposed to greater risks.
9.3.4 The Health and Safety Executive continue to report that the UK construction industry remains the second highest workplace injury rate of all industries, with the Agriculture, Forestry and Fishing industry being highest.
9.4 Violence and Aggression
9.4.1 Whilst it is pleasing to note the decrease in reported incidents, our approach to safeguarding our employees’ safety is always paramount and our continual message to staff to report any incidents of violence and aggression are reflected in the figures reported. We work with our customers to reinforce the message that violence or aggression in any form will not be tolerated and take appropriate action to address this.
9.4.2 We ensure that appropriate support is available to staff when dealing with reports of Violence and Aggression as part of our Health and Wellbeing approach. As a preventative measure, training is given to frontline staff to minimise the number of and reduce the impact of these types of incidents occurring, such as conflict resolution, complaint handling, and customer services training.
9.5 Assessing Risk
9.5.1 Our accident recording form asks managers “had a risk assessment been carried out for the activity undertaken prior to the accident?” and “has a risk assessment been reviewed/developed for the activity undertaken after the accident?” The responses provided by managers show that a risk assessment had been undertaken and reviewed for the work activity in 100% of incidents. This is a continuation from the previous years due to ongoing monitoring and communication in this area.
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9.6 Ill Health Monitoring
9.6.1 As with accidents and incidents, the collation of ill health statistics can assist in improving health and wellbeing within an organisation. The areas that fall under emotional/wellbeing can be triggered by both work and personal/home circumstances and our procedures look to manage both aspects to help people develop coping strategies. Of the 44 absences (totalling 1,346 days) from work, the top four absences totalled 569 days and the bottom 25 absences totalled only 150 days. The majority of absences were due to personal reasons affecting individuals outside of work. There were also six employees who were being dealt with under the disciplinary/ grievance/ performance policies, which related to their absence, accounting for 177 days absence.
9.6.2 As a Mindful Employer, we support employees with mental illnesses. As part of our commitment to this we have undertaken a number of mental health training and awareness sessions. Our aim is to reduce the stigma of mental ill health, enable managers to spot the signs early and take immediate action and employees feel confident in reporting mental ill health.
9.6.3 Of the 77 musculoskeletal absences from work (totalling 1,681 days), the top four absences totalled 646 days and the bottom 25 absences totalled only 48 days. 289 days accounted for the long term illness of two individuals who were dismissed on ill health grounds. Ongoing efforts to support staff through musculoskeletal illness and injuries include:
• Provision of a physiotherapy service.• Effective regular welfare review meetings which provides a forum for
managers and employees to agree a return-to-work plan, i.e. reasonableadjustments such as modified duties and phased return.
• Safe working practices training.
9.6.4 Nationally, the numbers of people affected by ill health greatly outweigh those adversely affected by accidents, which reiterates the need to fully support employees throughout their ill health and invest in mechanisms to expedite their return to work for both the benefit of the employer and employee.
9.6.5 Berneslai Homes’ pro-active and continued monitoring of employee welfare identifies issues early to the benefit of the employee and the company, e.g. return to work interviews; greater utilisation of the Occupational Health Service. Section 7 of Appendix 1 highlights the continued and prevalent use of the Occupational Health Service. Non-attendance of appointments continues to stay low due to close monitoring and effective action.
9.6.6 With regards to the reduction in Occupational Health referrals, a review was undertaken of our health surveillance involving the Construction Services Health and Safety Manager and our Occupational Health provider. It was found that the level of health surveillance was not required and less reviews are now undertaken on a cyclical programme to capture all operatives over a period of two to three years rather than annually; depending on the type of health surveillance and how at risk individual operatives are.
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10. Actions for 2019/20
10.1 As discussed throughout the report, an annual programme of review is required to ensure that all policies and procedures are in line with regulation, best practice and that further developments can be identified. The following action plan lists the schedule of review.
10.2 Action Target Occupation Group Risk Assessments – Annual Review Jan-20 Health and Safety Management procedures – Annual Review Jul-20 Task Based Risk Assessments and associated safe systems of work – Annual Review
Jul-20
Management of Health and Safety Questionnaires to Managers
Sep-19
Risk Assessment Survey Jan-20 Full two-year review of Health and Safety Policy Sep-20 Full review of our Resilience and Continuity Plan Mar-20
10.3 In addition to the above annual reviews, work will continue throughout 2019/20 in relation to health campaigns, training, inspections and audits.
11. Consultations
11.1 Consultations have taken place with the BMBC Health, Safety and Emergency Planning Unit, Senior Management Team and the Health and Safety Groups.
12. Equality and Diversity
12.1 Having effective Health and Safety Policies, procedures and programmes within Berneslai Homes ensures that stakeholders’ health and safety is paramount in undertaking service delivery and that equality and diversity issues are taken into account in protecting individuals’ health and safety. Those procedures and programmes include:
• Personalised Evacuation Plans (PEEPs) for employees with disabilities.• Reasonable Adjustments for people with disabilities to ensure their welfare
and wellbeing at work.• Welfare of pregnant employees, including regular risk assessments and
reasonable adjustments.• Ongoing commitment to mental health awareness, including a programme
of events and guidance, ongoing mental health awareness training and fullcommitment to being a Mindful Employer.
• Awareness sessions to support employees with ill health, such as Managingcancer in the workplace, which is also priority under Equality Act.
13. Data Privacy
13.1 There are no data privacy issues arising directly from this report.
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14. Risks
14.1 It is evidently clear from the report that managing risk is integral to a company that has effective health and safety management processes in place.
14.2 There are significant risks if the organisation does not have effective measures in place for managing Health and Safety. This report helps to mitigate those risks by analysing health and safety performance to ensure all risks are considered, resulting in:
• Satisfying our moral duty to keep employees safe.• Fewer accidents.• Reduced costs.• Lower employee absence and turnover rates.• Reduced threat of legal action.• Exemplar reputation for corporate responsibility among staff, customers,
partners, suppliers and the general public.• Increased productivity because employees are healthier, happier and better
motivated.
15. Financial Implications/Value for Money
15.1 There are no direct financial implications associated with this report other than those outlined in Appendix 1 in terms of lost days at work due to employees’ accidents.
16. Employee Implications
16.1 Effective Health and Safety Policies ensure that health and safety is always considered when employees are fulfilling our business objectives and appropriate control measures are in place to safeguard them.
17. BMBC Strategic Alignment
17.1 Health and Safety ensures that Berneslai Homes is a successful well managed company, ensuring our health and safety arrangements are robust, which contributes to BMBC’s One-Council focus on commercial and business acumen to ensure a well-run organisation.
18. Proposal
18.1 Note the performance of the health and safety systems and procedures that are operational within the company.
18.2 Approve the areas of further development and monitoring identified at Section 10.
19. Glossary
19.1 IOSH - Institution of Occupational Safety and Health.
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20. List of Appendices
20.1 Appendix 1 – Berneslai Homes Health and Safety Performance Statistics 2018/19.
21. Background Papers
21.1 Health and Safety Policy 2018 - 2020.
Financial Implications/Consultations
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Appendix 1
Berneslai Homes Employee Health and Safety Performance
2018/19
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1.1 Accidents Statistics
Year
Rep
orte
d ac
cide
nts
Lost
tim
e ac
cide
nts
Ove
r 3 d
ay a
ccid
ents
Ove
r 7 d
ay a
ccid
ents
(n
ew R
IDD
OR
Rep
orta
ble)
Maj
or in
jury
acc
iden
ts
Firs
t aid
acc
iden
ts
Med
ical
trea
tmen
t A
ccid
ents
(whe
re
empl
oyee
atte
nded
ho
spita
l or G
P)
Day
s lo
st d
ue to
ac
cide
nts
2015/16 31 13 7 2 0 8 10 105.5 Construction Services 25 12 7 1 0 5 9 93.5
Non-Construction Services 6 1 0 1 0 3 1 12 2016/17 46 15 6 6 0 4 9 695
Construction Services 36 14 5 6 0 3 9 688 Non-Construction Services 10 1 1 0 0 1 0 7
2017/18 31 9 2 5 0 2 13 164 Construction Services 28 9 2 5 0 2 13 164
Non-Construction Services 3 0 0 0 0 0 0 0 2018/19 33 11 4 4 0 8 14 118
Construction Services 27 11 4 4 0 7 12 118 Non-Construction Services 6 0 0 0 0 1 2 0
1.2 Incident Rates
Year Incident rate per
1,000 employee
s
Over-three day accidents
incident rate per 1,000
employees
RIDDOR reportable over-
seven day accidents
incident rate per 1,000 employees
Major injury incident rate
per 1,000 employees
RIDDOR accident rate
per 1,000 employees
2015/16 60.8 13.7 3.9 0 3.9 2016/17 92.2 12 12 0 12 2017/18 65.8 4.2 10.6 0 10.6 2018/19 69.0 8.4 8.4 0 8.4
The incident rate is calculated by using the following formula:
33 (Total Number of Accidents) x 1000 = (Unit Number of Employees)
69 478 (Number of Persons Employed)
1. PERFORMANCE
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1.3 Causes of Accidents
Main Cause of Accident Number of Accidents 2016/17 2017/18 2018/19
Injured while handling, lifting or carrying 16 5 9 Slips, trips and falls 13 8 8 Hit something fixed or stationary 2 4 1 Contact moving machinery or material being machined 4 2 2 Hit by moving, flying or falling object 3 4 6 Injured by an animal 5 3 5 Sharps 1 1 Fell from a height Burn Road traffic Accident 1 4 1 Hazardous Substance (hot water) 1 Other Contact with electricity 1 Total 46 31 33
1.4 Type of Injury
Type of injury Number of accidents 2016/17 2017/18 2018/19
Sprain/strain 17 14 14 Cut/graze/bruising 18 10 13 Bite 4 3 5 Distress Foreign body 2 1 1 Dislocation Break/fracture Needlestick 1 Chipped tooth Multiple 1 Sting 1 Burn 1 1 No injury 1 Temp hearing reduction 1 Total 46 31 33
2.1 Violent incidents are defined as: • Any intentional acts that cause apprehension, fear, psychological or physical injury to an
employee arising out of or in connection with their authorised duties• The deliberate damage to the property or belongings of an employee that is attributable to the
carrying out of duties on behalf of Berneslai Homes.
2. VIOLENCE AND AGGRESSION
-4-
2.2 Incidents of Violence and Aggression
Year Reported incidents
of violence and
aggression
Over 3 day accidents
Days lost due to incidents of violence and aggression
Incident rate per 1,000
employees
Over-three day
accidents incident rate per
1,000 employees
2015/16 39 0 1 76.5 0 2016/17 40 0 0 80.2 0 2017/18 43 0 0 91 0 2018/19 28 0 0 58.6 0
2.3 Types of Incidents of Violence and Aggression
Type of Incident Number of Incidents 2016/17 2017/18 2018/19
Verbal abuse 14 14 6 Physical violence 1 1 0 Aggression 24 6 0 Sexual Harassment 1 0 Malicious Intent 0 Aggression and verbal abuse 18 17 Harassment 1 Aggression, Harassment, Verbal abuse 2 4 Verbal abuse and Harassment 1 Total 40 43 28
2.4 Types of Injuries Sustained in Incidents of Violence and Aggression
Type of injury Number of Accidents 2016/17 2017/18 2018/19
No injury 40 39 26 Distress 3 2 Broken glasses / distress 1 Total 40 43 28
3.1 Responses provided to the question “had a risk assessment been carried out for the activity undertaken prior to the accident?” and the question “has a risk assessment been reviewed/developed for the activity undertaken after the accident?”
Num
ber o
f acc
iden
ts
whe
re a
risk
ass
essm
ent
was
indi
cate
d as
bei
ng
com
plet
ed fo
r the
ac
tivity
prio
r to
the
acci
dent
% o
f acc
iden
ts w
here
a
risk
asse
ssm
ent w
as
indi
cate
d as
bei
ng
com
plet
ed fo
r the
ac
tivity
prio
r to
the
acci
dent
Num
ber o
f acc
iden
ts
whe
re, f
ollo
win
g th
e ac
cide
nt, a
risk
as
sess
men
t was
co
mpl
eted
/ rev
iew
ed fo
r th
e ac
tivity
bei
ng
unde
rtak
en p
rior t
o th
e ac
cide
nt
% o
f acc
iden
ts w
here
, fo
llow
ing
the
acci
dent
, a
risk
asse
ssm
ent w
as
com
plet
ed/ r
evie
wed
for
the
activ
ity b
eing
un
dert
aken
prio
r to
the
acci
dent
Num
ber o
f acc
iden
ts
2016/17 46 100% 46 100% 46
3. RISK ASSESSMENTS
-5-
Num
ber o
f acc
iden
ts
whe
re a
risk
ass
essm
ent
was
indi
cate
d as
bei
ng
com
plet
ed fo
r the
ac
tivity
prio
r to
the
acci
dent
% o
f acc
iden
ts w
here
a
risk
asse
ssm
ent w
as
indi
cate
d as
bei
ng
com
plet
ed fo
r the
ac
tivity
prio
r to
the
acci
dent
Num
ber o
f acc
iden
ts
whe
re, f
ollo
win
g th
e ac
cide
nt, a
risk
as
sess
men
t was
co
mpl
eted
/ rev
iew
ed fo
r th
e ac
tivity
bei
ng
unde
rtak
en p
rior t
o th
e ac
cide
nt
% o
f acc
iden
ts w
here
, fo
llow
ing
the
acci
dent
, a
risk
asse
ssm
ent w
as
com
plet
ed/ r
evie
wed
for
the
activ
ity b
eing
un
dert
aken
prio
r to
the
acci
dent
Num
ber o
f acc
iden
ts
2017/18 31 100% 31 100% 31 2018/19 33 100% 33 100% 33
This information is based on Berneslai Homes’ median salary costs - £23,857.96/365 days = £65.36 x 118 lost days = £7,713.
Course Number of People Trained
Conflict Management 68 Lone Working / Personal Safety 15 Fire Safety eLearning 229 Fire Warden Refresher Training 25 Anti-Terrorism eLearning 139 Needlestick Awareness 15 IOSH Managing Safely inc refresher 26 IOSH Working Safely 33 Needlestick Collection 5 First Aid at Work 3 Asbestos Awareness toolbox talk 202 Asbestos Cat B (removal) 42 Asbestos Cat B toolbox talk 21 HAVS Noise toolbox talk 216 Cable Detection 65 Electrical Safety 215 Safe Isolation of Electrics 25 Electrical Safety advanced 13 Portable Appliance Testing application 12 Manual Handling 222 Timber Preservation 18
Year Total number of accidents
reported
Number of days lost due to reported accidents
Average cost of each lost working day
Direct cost of days lost
(based on days lost and the cost of the working days lost)
2016/17 46 695 £63.45 £44,095 2017/18 31 164 £64.08 £10,510 2018/19 33 118 £65.36 £7,713
4. COST OF ACCIDENTS TO EMPLOYEES
5. HEALTH AND SAFETY TRAINING PROVIDED TO EMPLOYEES DURING 2018/19
-6-
Course Number of People Trained
Paslode 7 Tetra Working at Height 8 Total 1624
6.1 Mental/Emotional Wellbeing Ill Health absence relates to illnesses such as anxiety, stress, depression, and other psychiatric illnesses. Employees may have been absent due to a mental/emotional wellbeing related issue on more than one occasion, hence the difference between the total reported absences attributed to mental/emotional wellbeing related ill health and number of employees reporting those absences.
6.2 Musculoskeletal Ill Health absence relates to sickness for: • Arthritis• Backache/pain• Frozen shoulder• Injury shoulder/
forearm• Injury foot/ankle• Injury hip/thigh• Injury knee/lower
leg
• Injury shoulder/arm
• Injury wrist/hand• Neck ache/pain• Osteoarthritis• Other back
problems• Other
musculoskeletal
• Pulled muscle• Sciatica• Shoulder ache/
pain• Strain• Broken arm, foot,
toe, ankle.
Employees may have been absent due to a musculoskeletal related issue on more than one occasion, hence the difference between the total reported absences attributed to musculoskeletal related ill health and number of employees reporting absences attributed to musculoskeletal related ill health.
Tota
l abs
ence
day
s at
trib
uted
to
men
tal/e
mot
iona
l wel
lbei
ng
ill h
ealth
Num
ber o
f abs
ence
s at
trib
uted
to m
enta
l/em
otio
nal
wel
lbei
ng il
l hea
lth
Num
ber o
f em
ploy
ees
repo
rtin
g ab
senc
es a
ttrib
uted
to
men
tal/e
mot
iona
l wel
lbei
ng
ill h
ealth
Abs
ence
rate
attr
ibut
ed to
m
enta
l/em
otio
nal w
ellb
eing
ill
heal
th p
er 1
,000
em
ploy
ees
Perc
enta
ge o
f em
ploy
ees
repo
rtin
g si
ckne
ss a
bsen
ce
attr
ibut
ed to
men
tal/e
mot
iona
l w
ellb
eing
ill h
ealth
Num
ber o
f day
s of
abs
ence
pe
r em
ploy
ee a
ttrib
uted
to
men
tal/e
mot
iona
l wel
lbei
ng il
l he
alth
2016/17 1,196 51 44 102 8.8% 2.4 2017/18 945 37 35 78.5 7.4% 2 2018/19 1,346 44 38 92 7.9% 2.8
6. MAJOR CAUSES OF ABSENCE FROM WORK
-7-
Tota
l abs
ence
day
s at
trib
uted
to
mus
culo
skel
etal
ill h
ealth
Num
ber o
f ab
senc
es
attr
ibut
ed to
m
uscu
losk
elet
al il
l hea
lth
Num
ber o
f em
ploy
ees
repo
rtin
g ab
senc
es
attr
ibut
ed to
m
uscu
losk
elet
al il
l hea
lth
Abs
ence
rate
attr
ibut
ed to
m
uscu
losk
elet
al il
l hea
lth
per 1
,000
em
ploy
ees
Perc
enta
ge o
f em
ploy
ees
repo
rtin
g ab
senc
es
attr
ibut
ed to
m
uscu
losk
elet
al il
l hea
lth
Num
ber o
f day
s of
ab
senc
e pe
r em
ploy
ee
attr
ibut
ed to
m
uscu
losk
elet
al il
l hea
lth
2016/17 1,581 82 74 164 14.8% 3.2 2017/18 1,856 79 68 167 14.3% 3.9 2018/19 1,681 77 69 161 14.4% 3.5
7.1 Referrals to Occupational Health Services
Referrals Total Number of contacts 2016/17 511 2017/18 502 2018/19 240
7.2 Type of Referral
2016/17 2017/18 2018/19
Management Referrals 74 91 65 Statutory Health Surveillance (1) 272 226 2 Counselling Referrals 62 63 59 Physio Referrals 74 71 63 Pre-employment Health Screening 29 51 51 Total 511 502 240
(1) Statutory health surveillance refers to health surveillance undertaken in line with legal requirements such as hand-arm vibration screening, audiometry and lung-function testing.
7.3 Occupational Health Services Provided
Service 2016/17 2017/18 2018/19
Management Referral (including sickness absence and reviews)
74 91 65
Hand/arm vibration syndrome health surveillance 151 155 1 Health and Wellbeing days – numbers seen 62 110 95 Form 6 medical (assessment for application for early retirement on grounds of continuing ill health)
1 6 1
Audiometry testing Undertaken in June 17
32 0
Case Conference 3 9 8
7. OCCUPATIONAL HEALTH
-8-
Service 2016/17 2017/18 2018/19
Workplace Assessment 18 7 8 Asbestos Medical Examination 0 0 0 Workstation Assessment 2 0 9 Spirometry/Lung Function Testing 121
questionnaires 39 1
Vaccination Programme (Flu) 109 98 106 Total 485 523 294
7.4 Occupational Health Contacts by Practitioner
Seen by Numbers of contacts 2016/17
Numbers of Contacts 2017/18
Numbers of Contacts 2018/19
Physician/Specialist Practitioner in Occupational Health
18 13 20
Nurse 56 48 81 Did not attendees – Physician/Specialist Practitioner in Occupational Health
2 0 1
Did not attendees – Nurse 2 5 2 Could not attendees – Physician/Specialist Practitioner in Occupational Health
1 0 0
Could not attendees – Nurse 0 0 3 Total 79 66 107
Report Title
BERNESLAI HOMES FINANCIAL PERFORMANCE – Financial Position as at 30th September 2019
Date 7 November 2019
Report To Board Confidential No Report From
Director of Corporate Services
Contact Faye Williams Head of Finance Tel 772757
1. Purpose of report 1.1 To provide an update on the financial performance of Berneslai Homes Ltd.
2. Recommendation/s 2.1 That the Board seek assurance on the company’s financial position and approve the report.
3. Introduction/Background
3.1 This report provides a summary of the financial position as at the 30th
September 2019 for Berneslai Homes Ltd.
4. Current Position
Berneslai Homes Management
4.1 At its meeting on 13 December 2018 Berneslai Homes Board agreed anoriginal budget for the Company of £11.852M. The table below shows howthis budget is funded and changes that have been approved since the originalbudget position.
Funded From Expenditure
£000’s Management Fee £000’s
Reserves £000’s
Original Budget 11,852 11,779 73
Carried Forward Savings from 2018/19
491 0 491
Approved Budget 12,343 11,779 564
Agenda Item No.
6 A fresh approach to people, homes and communities
4.2 The projected outturn as at 30 September 2019 shows a deficit of £0.081M, an underspend of £0.483M against the approved budget as detailed at Appendix A.
4.3 The major variations identified are outlined below:
£M Service Variation 0.029M Various Staff savings – vacant
posts/training/travel 0.022M Human Resources Graduate Scheme (requires carry
forward to 2020/21) 0.014M Asset Management Apprentice Surveyor (requires carry
forward to 2020/21) 0.022M Various Utility costs 0.300M Performance & Information Anticipated underspend across IT
budgets including the Housing Management mobile working project ( requires carry forward to 2020/21)
0.096M Various Supplies & Services including £23k Legal Fees, £13k cash collection, £12k Postage, £11k MFDs
4.4 The reported underspend across the IT budgets will be required to be carried forward. The Council are currently in the process of implementing Office 365, we have not yet had confirmation of the timing and costs to BH for the implementation. The migration to Office 365 will also require the upgrade of all the laptops across the Company. There is potential that this cost could be incurred in this financial year, however it is more likely to be next year.
4.5 The net saving after adjusting for funding which requires carry forward into 2020/21 is £0.147M.
Housing Growth
4.6 Under the agreed process for the release of the Housing Growth funding approved payments to the Council are made at 6 monthly intervals (March & September) in arrears based on actual costs. A statement is provided outlining operational performance and achievement of key milestones.
4.7 The Council has advised of a drawdown of £0.276M as at 30th September 2019, Bringing the total claimed to date to £0.977M.
4.8 The Council have forecast a further £1.762M drawn down on the reserve during 2019/20.
4.9 Appendix B provides a summary as at 30th September 2019 of the reserves earmarked for Housing Growth.
5. Options
5.1 The report is for information only hence there are no options included for consideration.
6. Consultations
6.1 Discussions have taken place with budget holders and Senior ManagementTeam has been consulted.
7. Equality and Diversity
7.1 None arising directly from this report.
8. Data Privacy
There are no data privacy implications arising directly from this report.
9. Risks
9.1 Effective financial management arrangements are a key element of the riskmanagement framework.
10. Financial Implications/Value for Money
10.1 There are no financial implications arising directly from this report.
11. Employee Implications
11.1 There are no employee implications arising directly from this report.
12. BMBC Strategic Alignment
12.1 Effective financial management contributes to being a well managed company that helps Berneslai Homes deliver sustainable strong and resilient communities in line with BMBC’s corporate priorities.
13. Proposal
13.1 That the financial position is noted.
14. Glossary
14.1 HRA – Housing Revenue Account BH – Berneslai Homes Ltd
15. List of Appendices
15.1 Appendix A – Berneslai Homes Management Financial Position as at 30 September 2019 Appendix B - Housing Growth Position Statement as at 30th September 2019
16. Background Papers
16.1 Berneslai Homes Ltd 2019/20 Management Accounts as at 30 September 2019
APPENDIX ABerneslai Homes Ltd Financial Position as at 30th September 2019
Original Approved Profile Actual Variance Comments on Column 6 Probable Variance Comments on Column 8Budget Budget Outturn
(Col 5 -Col 4) (Col 7 -Col 3)Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Column 7 Column 8
£000s £000s £000s £000s £000s £000s £000sIncomeManagement Fee -11,779 -11,779 -5,890 -5,890 0 -11,779 0
ExpenditureCaravan Site 63 63 8 7 -1 64 1
Heating Services Unit 891 891 435 398 -37 883 -8
Community Buildings Team (includes Communal Provisions/Community Buildings/Centres/ Sheltered Hsg)
878 878 401 376 -25 Vacant post 859 -19 Vacant posts
Customer Services & Engagement Team
508 508 254 239 -15 491 -17 Predicted savings in supplies & services (postage and printing)
Tenants First 599 599 299 281 -18 576 -23 Predicted savings in supplies & services (special projects, telephones, computer costs)
Chief Executive 175 175 88 127 39 214 39 Recruitment cost & additional Supplies/Services
Board 54 54 27 21 -6 49 -5
Central Housing Management Services
849 884 136 111 -25 861 -23 Anticipated savings on Legal Fees
Performance & Information Management Team
904 1,184 533 401 -132 Budgets not yet committed 861 -323 Anticipated saving of £300k on IT and Mobile Working project budgets which may be needed if Office 365 is implemented by BMBC
Lettings Team 779 779 390 384 -6 766 -13
Housing Management West 841 857 444 445 1 869 12
Rents Team 921 889 445 404 -41 849 -40 Staff vacancy & predicted savings in supplies & services - cash collection £17k
Housing Management East 928 958 486 491 5 965 7
APPENDIX AOriginal Approved Profile Actual Variance Comments on Column 6 Probable Variance Comments on Column 8Budget Budget Outturn
(Col 5 -Col 4) (Col 7 -Col 3)Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Column 7 Column 8
£000s £000s £000s £000s £000s £000s £000sInvestment & Regeneration 588 588 346 318 -28 Vacant Posts 575 -13 Vacant posts early in year
Asset Management 971 1,022 504 539 35 1,091 69 Overspend on Supplies & Services, & on Salaries - Fire Safety Post £34k pa; £13K salary budget Apprentice Surveyor to be c/fwd to 2020/21
Community Refurbishment Scheme 258 258 130 116 -14 239 -19 Predicted saving on supplies & services (Building Materials)
Finance 313 313 165 166 1 319 6
Human Resources & Corporate Admin Team
729 800 388 365 -23 689 -111 Savings on salaries due to vacant posts & £22k Graduate Trainee budget to be c/fwd into 2020/21
Gateway Plaza 609 649 374 357 -17 Supplies & Services budgets not yet spent 652 3
Private Management Scheme - Private Landlords
35 35 17 27 10 50 15
Chevin Seasons -23 -23 -11 -12 -1 -23 0
Empty Homes 0 0 0 1 1 1 1
Interest on Cashflow -18 -18 -9 -21 -12 -40 -22
Total 11,852 12,343 5,850 5,541 -309 11,860 -483Surplus (-) /Deficit 73 564 -40 -349 -309 81 -483
Housing Growth Position Statement as at 30th September 2019 Appendix b
Scheme Approved Earmarking
£M
Drawn Down to Date
£M
QTR 3 Forecast
19/20 £M
QTR 4 Forecast
19/20 £M
2020/21
£M
2021/22
£M
TOTAL Reserves Drawdown
Comments
Strategic site acquisition with future option of mixed tenure development, including BH affordable units
1.550 0 0 1.550 0 0 1.550
Mixed tenure developments, including BH affordable units
1.120 0 0 0 1.120 0 1.120
Private Sector Affordable Warmth Programme
0.250 0.006 0 0.079 0.083 0.082 0.250
Strategic site acquisition for employment purposes
0.461 0.461 0 0 0 0 0.461
Homelessness 0.200 0 0 0 0 0 0 To be re prioritised via 2020/21budget
process Empty Homes programme 1.500 0.510 0.050 0.083 0.428 0.429 1.500
Property acquisition and conversion (direct delivery)
0.998 0 0 0 0.998 0 0.998
Uncommitted 2.841 0 0 0 3.041 0 3.041 To be re prioritised via 2020/21budget
process TOTAL 8.920 0.977 0.050 1.712 5.670 0.511 8.920
- 1 -
Report Title
Audit Committee Annual Report Date 7th November 2019
Report To BOARD Confidential No
Report From
Director of Corporate Services Contact Claire Denson Tel 774263
1. Purpose of report 1.1 To provide an annual overview of the activities undertaken by
Audit Committee and, through self-assessment, identify opportunities for further development.
2. Recommendation/s
It is recommended that:
i) Board approve the report for submission to Board.ii) Board agree the Terms of reference are still fit forpurpose.
3. Introduction/Background
3.1 The Audit Committee Annual Report has been identified by Members asbest practice in evaluating current activities and identifying developmentrequirements.
3.2 Included within the Report process are a number of self assessments aimedat evaluating the Committee’s effectiveness and compliance withrequirements and skills and training needs.
4. Current Position
4.1 The Annual Report is prepared each autumn for approval by the Board.
4.2 The terms of reference are included as standard within this report (AppendixB). Members are asked to review them and confirm they are still fit forpurpose.
5. Consultations
5.1 Audit Committee Members and Internal Audit.
Agenda Item No.
7 A fresh approach to people, homes and communities
- 2 -
6. Local Area Implications
6.1 There are no local area implications arising from this report.
7. Compatibility with European Convention on Human Rights
7.1 There are no issues arising from this report.
8. Reduction of Crime and Disorder
8.1 There are no issues arising directly from this report.
9. Data Privacy
9.1 There are no data privacy issues arising directly from this report.
10. Risks
10.1 This report seeks to reduce risks to the company by evaluating performance.
11. Financial Implications
11.1 There are no financial implications arising directly from this report.
12. Employee Implications
12.1 There are no employee implications.
13. Proposal
13.1 It is proposed that: i. Board approve the Report.ii. Board agree the Terms of Reference are still fit for purpose.
14. List of Appendices
14.1 Appendix A – The Audit Committee Annual Report 2018/19 14.2 Appendix B – Audit Committee Terms of Reference
AUDIT COMMITTEE
ANNUAL REPORT 2018/19
Chair – Mr. Gary Ellis
APPENDIX A
2
FOREWORD BY THE CHAIR OF THE AUDIT COMMITTEE
I am pleased to present the Annual Report of the Audit Committee, which outlines the Committee’s work and achievements over the year ending 31st March 2019.
I hope that this Annual Report helps to demonstrate the vital role that is carried out by the Audit Committee and the contribution it makes to the company’s overall governance.
The report will be submitted for consideration by Board as a measure of evaluating the work undertaken by the Committee and making other members aware of what the Committee does.
I would like to express my thanks to those officers and members who have supported the work of this Committee by presenting, discussing, challenging and debating solutions to the ongoing risk, control and governance environment of Berneslai Homes. There has been constructive questioning by members throughout. There have been no major areas of concern for the Committee to note or report back on which is reassuring for the company.
The results of our formalised self-assessment, via comments from Audit Committee members, are summarised within this report. Whilst confirming a high level of compliance with ‘good practice’, it also highlights areas where we can improve the Committee’s effectiveness, particularly as we now have a new member.
These are challenging times for Berneslai Homes but there are also opportunities to continue to move the organisation forward. I am confident that the Committee is very well placed to play a key role during 2019/20 and beyond.
Mr Gary Ellis Chair of the Audit Committee October 2019
3
INTRODUCTION
This report covers the Audit Committee’s activities during the financial year 2018/19. It shows that the Company is committed to working as an exemplar organisation in operating the highest standards of governance.
This report shows how the Audit Committee has successfully fulfilled its terms of reference and has scrutinised the Company’s governance and control environments.
SOME KEY INFORMATION
Role and Responsibilities
The Committee performs the core Audit Committee functions recommended as good practice by the Chartered Institute of Public Finance and Accountancy (CIPFA). The core functions are incorporated in the Committee’s terms of reference, which are attached as Appendix B.
The Committee has continued to provide an overview role on the whole area of governance and achieves this by: • providing a forum for monitoring governance arrangements,• receiving and discussing monitoring reports from internal and external
sources,• making recommendations for action to address any deficiencies,• raising awareness of the need for sound internal control arrangements,
and• providing additional assurance to its stakeholders through the results of its
work.
As part of this report, the terms of reference are attached at Appendix B to ensure they are regularly reviewed.
Audit Committee Membership
The Audit Committee has four Members. During 2018/19 the membership was:
Member Dates of appointment to Audit Committee
Gary Ellis – Chair March 2014 – Current Liana Khachatryan May 2017 – current Laura Rawnsley May 2017 – current Caroline Makinson August 2018 - Current
There is strong officer support to the Audit Committee through the regular attendance of the Director of Corporate Services.
4
Meetings and attendance
The Audit Committee had five scheduled meetings during between 1st April 2018 and 31st March 2019.
Audit Committee Member Possible Meetings
Meetings Attended
Gary Ellis – Chair 5 5 Liana Khachatryan 5 3 Laura Rawnsley 5 3 Caroline Makinson 4 3
Total Possible Attendances 19 Total Actual Attendances 14 Percentage Attendance 74%
CORE ACTIVITY 2018/19
The Committee’s work and outcomes in each of its areas of responsibility are summarised in the following subsections.
Internal Audit
The Committee has a role to ensure that the Internal Audit function is properly resourced, and to review the activities of the Internal Audit function, including its annual work programme.
During 2018/19:
• Internal Audit delivered all major aspects of its annual plan, achieved keyperformance targets and adhered to professional standards.
• Management’s compliance in responding to Internal Audit reports andimplementing recommendations was good.
• The plan of work to be undertaken during 2018/19 was agreed by the Chairof Audit Committee, SMT and Internal Audit.
• Internal Audit provide an annual report on their review of core systems, theyear’s activity and assurance of Berneslai Homes’ control systems testedduring the year. For the 2018/19 report, the Head of Internal Audit gave acontrols assurance opinion which reflected that systems concerninginternal control were adequate.
External Audit
• The Committee works closely with External Audit and they are included inthe full circulation list for formal meetings of the Committee.
• In August 2019, the Audit Committee received and discussed the AnnualAudit Letter with BDO and was satisfied that the key issues identified werebeing addressed.
Internal Control incorporating Risk Management, Financial Probity and Stewardship
5
The Audit Committee: • Received, considered and recommended to Board the Annual Governance
Statement and the action plan to address further development activities. • Received the annual risk management report, which concluded that
satisfactory progress was being made on the development of risk management practice within the Company.
Accounts
The Audit Committee:
• Received and considered the final annual accounts and recommendedthem to Board, meeting the statutory timescales.
In addition
The following summarises our business during the year, highlighting the types and numbers of reports considered by the Committee:
Area / Report Subject 2016/17 2017/18 2018/19 Internal Audit provision reports 10 8 7 External Audit related reports 2 2 2 Risk Management related reports 2 2 2 Service Performance Audit reports by Internal Audit
7 1 6
Accounts and Financial Management reports 7 6 4 Controls Assurance / Corporate Governance reports
4 3 3
Other reports (excluding Workplan reports) 8 9 8 Total 40 31 32
Developments during 2018/19
Throughout the year, developments included: • Annual workshop provided by BMBC Internal Audit and Financial
Services regarding Berneslai Homes Investments. • Ongoing scrutiny of the implementation of the General Data Protection
Regulations (GDPR). • In equipping Members to fulfil our responsibilities, Internal Audit
delivered a workshop regarding the Effective Audit Committee, to include an overview of Internal Audit, risk management, governance and fraud.
OUTCOMES
Our main focus is on adding value through our activity. By concentrating on outcomes we can identify the benefits of our work. Our key overarching achievements this year are:
• Helping to raise the profile of corporate governance generally across theCompany.
6
• Supporting the Internal Audit and Risk Management functions to raise their profile and improve the response to audit reports and the implementation of recommendations
• Enquiring and challenging the Company’s procedures and performance to satisfy itself that arrangements are in place and effective to enable the Committee to meet its responsibilities in providing assurance to the Board.
PLANS FOR 2019/20 To ensure that we continue to develop, we will:
• Provide refresher Fraud Awareness training to all board members and SMT provided by Internal Audit.
• Further workshop by Internal Audit to include an overview of Internal Audit, risk management and governance.
• Seek briefings from the Director of Corporate Services on technical issues as required.
• Play a critical role in the preparation of the Annual Governance Statement for 2019/20 and in so doing ensure all governance arrangements are reviewed.
• Continue to assist and support officers to promote the work of the Committee and the roles of audit and risk management.
• Support the continued production of high quality and compliant statutory accounts and general good practice in financial management.
• Help to further increase awareness within the Company of its governance arrangements.
• Review the monitoring of the quality of audit services being provided (both internal and external).
We are pleased with the progress we have made. We look forward to building on this further, next year. Berneslai Homes Audit Committee October 2019
Appendix B
A fresh approach to people, homes and communities
Berneslai Homes Limited is a company controlled by Barnsley Metropolitan Borough Council. A company limited by guarantee, registered in England and Wales, number 4548803.
Registered Office: Gateway Plaza, 10th Floor, Off Sackville Street, Barnsley, S70 2RD. www.berneslaihomes.co.uk
AUDIT COMMITTEE TERMS OF REFERENCE
(Revised September 2018)
1. GENERAL
1.1. The strategic management, direction and overall control of Berneslai HomesLimited ("the Company") is the responsibility of the Board.
1.2. Article 19 confirms that in managing the Company the Board can exercise all of the powers of the Company.
1.3. Under Article 22 the Board has the power to delegate some of its decision-making functions to committees. The Board is to exercise this power and is going to establish an Audit Committee which will have in the future the powers and functions described in Sections 2 and 3 of this document.
2. PROCEEDINGS OF AUDIT COMMITTEE
The following provisions apply to the Audit Committee, unless otherwise stated.
2.1. Number Of Members
2.1.1 The number of Members shall be a minimum of three members of the Board and each group should be represented.
2.2. Membership
2.2.1. Audit Committee Members are to be appointed by the Board from amongst its own Members. The mode and manner of the appointment shall be as the Board may from time to time agree subject to compliance with Section 2.1.
2.2.2. Audit Committee Member is to hold office until the term of office for which he/she has been appointed expires, he/she resigns or is removed by the Board.
2.2.3. At least one Member should have recent and relevant financial experience.
2.2.4. The Chair of the Board will not be a member of the Committee but may be invited to attend.
2.3 Quorum
The quorum for the transaction of the business of the Committee at the time when the meeting proceeds to business shall be 2.
2.4 Chair
2.4.1 The Chair of the Audit Committee must be..a Qualified CCAB or CIMA Accountant .
2.4.2 If the Chair is not present within five minutes from the time the meeting is due to commence or are unwilling to act another member of the Committee may be nominated to chair that meeting.
2.5 Reports
Reports made to the Audit Committee meeting must normally be in writing and be circulated at least five working days before the date on which the Committee meeting is to be held. However, the Chair of the Audit Committee may in his/her absolute discretion allow a report which has not been circulated as required to be tabled at a meeting of the Audit Committee if he/she considers it appropriate for the issues raised by the report to be discussed at that meeting.
2.6 Voting
2.6.1 Resolutions of the Audit Committee are to be decided by a majority of votes and each Audit Committee Member present in person shall be entitled to one vote. A written resolution signed by all of the members of the Audit Committee (provided that they would constitute a quorum of the Audit Committee ) is as valid as if it had been passed at a meeting of the Audit Committee and may consist of several documents in similar form each signed by one or more of the Audit Committee.
2.6.2 If there is an equality of votes, the Chair is not entitled to a second or casting vote. Resolutions which fail to secure a majority in favour are to be lost.
2.7 Reporting Procedures
2.7.2 Minutes of each Audit Committee meeting (which record the salient points of the discussions which take place and all decisions which are taken) must be kept and must be produced promptly after the relevant meeting both to that Audit Committee and to the Board.
2.7.3 Minutes of each committee meeting must where possible be circulated to all Board Members in advance of the next Board Meeting. Consideration of these minutes must form an agenda item at that Board Meeting.
2.7.4 The Committee will submit any reports it considers necessary to the Board.
2.8 Delegation
The Audit Committee may not delegate any or all of its responsibilities to another committee or to any individual committee member or members.
2.9 Missing Meetings
An Audit Committee Member who:
2.9.1 misses three consecutive meetings of the Audit Committee; or
2.9.2 is absent from at least 25% of the meetings of the Audit Committee in any period of 12 months;
without the permission of the Audit Committee Members, will if the Board so resolve, be removed as an Audit Committee Member.
2.10 General
Subject to the provisions of the Memorandum and Articles of Association, directions of the Board and the preceding provisions of this Section and to any specific provisions set out in Sections 3, 4 and 5 of this document, the Audit Committee may regulate its proceedings as it thinks fit.
3. AUDIT COMMITTEE
3.1. Terms of Reference
• To consider the appointment of the external auditor, audit fee, resignationor dismissal.
• To discuss with the external auditors, before the audit commences, thenature and scope of the audit and raise any particular matters on whichthey would like advice.
• To discuss problems and reservations arising from the interim and finalaudits, and any matters the auditor may wish to discuss (in the absenceof management where necessary).
• To consider and advise on the appointment of the internal audit service• To review the internal audit programme, consider major findings of
internal audit investigations and management responses, and ensure co-ordination between the internal and external auditors.
• To keep under review the effectiveness of internal control systems and, inparticular, review the external auditors’ annual report, and managementresponses.
• To review the strategy for the management of risk and the processes for
identifying and addressing significant risks. • To oversee the Company’s policy on fraud and irregularity including being
notified of any action under that policy. • To satisfy itself that satisfactory arrangements are in place to promote
economy, efficiency and effectiveness through service reviews. • To receive any relevant reports from audit.• To monitor the performance and effectiveness of external and internal
audit• To receive the draft annual accounts and consider elements of the annual
financial statements including the audit opinion and management letter.• To report as appropriate to the Board and at least once at the time of the
annual accounts.• To comment on and review the Investment Strategy and make
recommendations to Board on that Strategy• .
3.2 Authority
3.2.1 The Committee is authorised by the Board to investigate any activity within its terms of reference. It is authorised to seek any information it requires from any employee, and all employees are directed to co-operate with any request made by the Committee.
3.2.2 The Committee is authorised to obtain outside legal or other independent advice and to secure the attendance of non-members with relevant experience if it considers this necessary, normally in consultation with the Chief Executive and Chair of the Board. However it may incur direct expenditure of £5,000, without the prior approval of the Board.
3.3 Proceedings
3.3.1 The Audit Committee must comply with the provisions of Section 2 of this document in relation to its proceedings.
3.3.2 The Audit Committee will meet as and when required but at least 3 times a year at a time and place to be determined amongst themselves.
3.3.3 Meetings of the Audit Committee may only be called by the Chair.
3.3.4 At least five working days’ notice of all meetings of the Audit Committee will be given to each Audit Committee Member and to the Chair of the Board unless any two members of the Audit Committee certify in writing that, because of special circumstances which are set out in the certificate, the meeting ought to be called as a matter of extreme urgency.
4. CONFLICTS OF INTEREST
4.1. Any Audit Committee Member having an interest (which shall includeinterests of Family members) in any arrangement between the Company and another person or body shall disclose that interest to the meeting before the matter is discussed by the Audit Committee. Unless the interest is of the type specified in Sections 4.2 and 4.3 the Audit Committee Member concerned shall not remain present during the discussion of that item unless requested to do so by the remaining members of the Audit Committee. Unless permitted by Sections 4.2.1 and 4.2.2 the Audit Committee Member concerned may not vote on the matter in question, but no decision of the Audit Committee shall be invalidated by the subsequent discovery of an interest which should have been declared.
4.2. Provided the interest has been properly disclosed pursuant to Section 4.1 an Audit Committee Member may remain present during the discussion and may vote on the matter under discussion where the interest arises because:
4.2.1. the Audit Committee Member is a Tenant Representative so long as the matter in question affects all or a substantial group of the Tenants; or
4.2.2. the Audit Committee Member is a director or other officer of a company or body which is a parent, subsidiary or associate of the Company; or
4.2.3. the Audit Committee Member is an official or elected member of any statutory body.
4.3. An Audit Committee Member shall not be treated as having an interest of which the Audit Committee Member has no knowledge and of which it is unreasonable to expect him to have knowledge.
5. CHANGES TO THIS DOCUMENT
5.1 No change may be made to the terms of this document other than by the Board.
5.2 The Audit Committee shall review its organisational structure at its last meeting in each calendar year, recommending any proposed changes to the board for consideration.
