Business & Finance Plan

MISSION

VALUES

OBJECTIVES

STRATEGIES & PLANS

OPERATIONAL TARGETS / BUDGETS

OPERATIONAL PLANS - TEAMS

INDIVIDUAL STAFF PLANS AND TARGETS

Business Planning Framework for...

Operational Strategic

Board & Tenants

Tenants & Staff

THE PIONEER

WAY

Group Business

Plan

Modernising Governance & CBS Rules Core

Business Priorities

Demand / Marketing

Re-Financing

VFM

De-regulation

Stock Condition

(SCS)

Rent reduction / Policy post

2020

LHA / WR / UC

(Income)

Staff Resources

Growth (MSCP &

Empty Homes)

Business Plan Factors

Our Mission

“Working Together Towards a Better

Place to Live”

Business Plan Values Ashton Pioneer Homes’ staff and Board Members are committed to working together to achieve the organisation’s strategic aims. We have identified the following values, which underpin everything we do: Respecting and valuing people Being open, fair, ethical and accountable Leading by example and inspiring others Being innovative and inventive Having passion and commitment in all that we do Delivering quality and value in our services Being responsive to customers, neighbourhoods and

communities Being operationally excellent and continually

improving

Corporate Objectives To improve the quality of life for residents

by understanding their needs, promoting diversity, ensuring high customer satisfaction and maximising involvement opportunities

To be a high quality, agile and efficient organisation that out performs the Business Plan

To continuously improve by managing, developing, communicating and by sustaining our assets to maximise our potential

Excellence & Improvements

“Seeking to deliver quality, efficiency, sustainability and VFM across all our activities and services”

(Deliverable 2016-18)

The 4 C’s for APH

QUALITY

COMMITMENT

COMMUNICATION

CO-OPERATION

CONSISTENCY

Context for APH

1. Politics 2. Economy 3. (De-) Regulation 4. Environment & Energy 5. Market

Politics Government perspective better / Less

ideological positioning / GM Devo Government policy implications e.g.

welfare reform / LHA impacts – UC timescale for roll-out - massive income and demand / resource implications What people think of us - improved? New homes provision v Post 2020 rents Local, GM and national messages?

Economy Inflation on the move / Low growth in the economy Low grant levels for new-build alongside Empty

Homes and Commercial to residential options (allocations secured)

Rent reductions continue / Living Wage / NI / interest rates / Council tax rises / Regulatory costs / re-financing / market rates critical

Government focus on austerity, cost cutting, yet still want new supply, employment and health outcomes

Measures (some) required for APH: - “ Rent first” and debt management remain a priority - Growth (empty homes and Off the Shelf) - DPF - Exempt Charitable status / services

De-Regulation (6/4/17) ONS – new decision on public / private

designation Drive for home ownership – demand, decisions /

allocations HCA changes to return HAs to private sector Review of HCA / Removal of consents to merger,

transfer of engagements & disposal of interests (including financing) (Boards- clause 92)

Move to CBS, 2015 charitable rules will still require consents but new regime 6/4

Voluntary RTB – long grass?

Environment & Energy Fuel prices are still an issue for tenants Consumption of energy is rising not falling CO2 emissions nationally are not meeting targets Renewable energy opportunities limited Action taken to improve the energy efficiency of

our homes (good SAP ratings) boilers, windows, EPCs etc.,

Pilots for energy efficiency products are costly and do not save HA money

No longer valued – e.g. removal of design code standards; added value or wasted money?

Market Demand for APH homes and services exists - yet Gov’t policy is deterrent to customers Policy framework remains anti-social renting with

client groups targeted through policies e.g. welfare reform / UC / LHA, all impact demand Demise of grant and rent control undermines new

provision RTB / RTA / VRTB will reduce availability of homes Rent reduction will reduce new provision, range of

support and services from sector Discount funding – less alienation of Local Gov’t Costs of new provision are high relative to rents

BP focussed around consistent themes

1) Tenant Involvement & Empowerment 2) Home Standard 3) Tenancy Standard 4) Neighbourhood & Community

Standard 5) Value for Money 6) Governance & Financial Viability

1) Tenant Involvement & Empowerment

Deliver on the CSS Action Plan following the CSS in 2016 Update Resident Involvement Strategy (by Dec 2017) Develop and grow the new constituted Tenants Panel Work with the Tenants Panel to deliver actions from the

Tenant Insight Survey Continue to resource the Tenants Base to focus on digital

exclusion and financial exclusion Continue to work with tenant groups and wider volunteer

group to address social exclusion Work in partnership with Action-Together to support

volunteer groups. Explore funding opportunities with local community groups

2) Home Establish performance systems to ensure effective use of the in-

house repairs & decoration service (by Sept 2017) Maximise expenditure on planned & cyclical (incl. capital) to

reduce responsive demand (ongoing) Review the CSS on Repairs service and provide / deliver an

improvement plan (by Dec 2017) Extend and monitor the use of the appointments system for the

repairs service (by Sept 2017) Manage and deliver phase 2 - tower block render project (by

Mar 2018) Deliver Concierge & CCTV upgrade programme (by Dec 2017) Develop stock condition data systems (SASSHA) and update

the quality of intelligence on condition (by Dec 2017) Define a priority led planned programme aligned with

available funds (by Jun 2017)

3) Tenancy Standards Develop an intelligence led housing management service to

target recourses via SASSHA and in partnership (i.e. Experian) Review tenancy strategies & tenancy agreements whilst working

closely with CHA(NW) partners developing a common policy framework

Rent First focus on collection rates for rent and service charges including overall debt management through the Debtor group

Develop a marketing strategy which improves potential customer awareness and the lettability of APH homes using cost / benefit models

Develop our rent and service charge communication with tenants to improve (by Oct 2017)

Develop WRO resource to deliver targeted rent and money advice service to tenants as well as enhanced cascaded training for staff (by Jun 2017)

4) Neighbourhood & Community Continue to sustain a prompt 24/7 response service on

ASB in accord with our ASB policy Continue to deliver advice surgeries / signposting / out-

reach base on housing, training, employment, health etc.

Continue to develop / expansion of neighbourhood services role contribution (arrears / debt chasing / ASB matters)

Maximise the use of enhanced Concierge / CCTV facilities to improve communication & support NSA role

Develop wider use of all staff in asset data collection (SCS) and make every contact count

5) Value for Money Continue sole / collaborative VFM procurement for services

(ongoing) Develop Return on Assets Model to assist investment decisions (Mar

2018) Work with Acuity to develop Sector Scorecard to inform VFM (by

Mar 2018) Make best use of Experian software to rent first support & advice

and enable the more effective targeting of resources Upgrade IT hardware and software to improve functionality ,

expanding mobile working incl. remote inspection and SCS input Enhance service charge information for tenants, promoting VFM

efficiencies as identified in the CSS (Oct 2017) Review treasury management framework (Sept 2017) Enhanced VFM statement (July 2017) Focus on maximising income collection through tenancy support

and action on default through Debtors’ group (ongoing)

6) Governance & Financial Viability Deliver transition to Community Benefit Society (by June 2017) Adoption of new CBS Model Rules (by June 2017) Deliver re-financing with Santander and GBSH and a long term

financial model for the Association (by July 2017) Define new operational Standing Orders for APH (by Aug 2017) Develop BRIXX software to stress test market and sector changes Ensure covenant compliance, managing I & E impacts, especially UC,

Direct Payments and stock investment (Ongoing) Define sets of performance data for both new covenants and

performance management / incl. monitoring of LHA / WRA impacts Staff satisfaction survey (by March 2018) Rationalisation of KPIs to reflect the new Acuity Sector Scorecard, key

performance issues, year end out-turns and review / amend in year (by Sept 2017)

Develop new Risk Map / assess Risk Appetite for APH (by Dec 2017)

Themes for 2017/18 Plan De-regulation: Governance & code compliance Significant threats; LHA, UC, 2020, Dir. payments Income collection, arrears control and debt

management are critical – Rent First principle Managing demands and delivering efficiencies

with limited staff resource (sweating assets) Consulting tenants on and delivery of the CSS

Action Plan Contingency planning and budgeting focus for

corporate plan / stress testing etc Growth opportunities (empty homes / services)

Themes for 2017/18 Plan Staff retention, Development & Wellbeing Employment initiatives / Apprenticeships IT – maximising benefits (payments / SCS) Gov’t policies / implications (incl. clause 92) Stock Condition, GDX, CCTV & Render projects Stronger focus on internal audit response Direct services extension (R&M) Collaboration opportunities CHA (NW) Sustaining the Business, tenants & staff Life as a charitable Association

Economy is: Obtaining resources (human, material, and so on) at

best value, taking both price and quality into account Minimising the costs of resources used within the

company, but having regard to quality. Efficiency is: Delivering the same level of service for less cost, time or

effort. The relationship between output (in terms of goods,

services or other) and the resources used to produce them.

Effectiveness is: Doing the right thing at the right time The extent to which objectives have been achieved.

Income 2017-2018 £6,730,960

Rents £3,709,120

Services £716,775

Phone Masts

£41,535

Management £46,855

Interest £5,685

Grant & Owners Empty Homes

£1,840,385

Grant Income

£271,910

Other Income

£98,695

Expenditure

2017-2018

£8,199,930

Loan Repayments

£0 Other

Cap8ital £3,758,985

Rent Loss

£118,410

Staffing

£861,350

Board Costs

£68,570

Office

£241,470

Housing

£134,625

Services

£601,595

Maintenance

£533,000

Finance

£145,285

Loan Interest

£575,000

PHSL & New

£286,355

Depreciation £875,285

17/18 18/19 19/20 (£) (£) (£)

COMPONENTS 100K 100K 600K RENDER 1.926M 100K 0M WINDOWS incl. 0K 0K BALCONIES incl. 0K 0K ROOFS incl. 0K 0K GDX 330K 12K 0K EMPTY HOMES 1.275M 225K 0K SALARIES 37K 37K 38K

Assumptions included in the Budget and Finance Plan are: - 1% rent reduction for the next 3 years No increases to Car Park or Furnished properties. capital works still subject to tender results Additional income for the new phone masts. Revenue upgrades for Sageline 200 and additional

software Major Empty Homes projects actually starting 1% plus £300 bonus included in salary costs per 16/17

Inclusion of additional recruitment costs for DOFA role.

Inclusion of £10k for possible disrepair claims in legal expenses.

Additional consultancy charges for a stock condition survey (£10k), Experian (£6k) and marketing consultant (£6k)

Known costs of re-financing are included where appropriate.

£65k included for IT upgrades to develop the system of back-ups onto the Cloud base, and replace some servers.

Pressures are still on us despite our good performance whereby the Company continues to have Operational Surpluses The new funding will occur in Quarter 1 and is priced

into the Finance Plan securing our financial base for the foreseeable future. No account of Corporation Tax is included but

delays on conversion to a CBS may incur costs not budgeted. Activities on the management of the Multi storey car

park are minimal pending agreement of a budget with TMBC.

The efficiencies arising from the recent exercise have set a stronger foundation for the future

The new Budget and forecast for 2017/2020 continues to be prudent yet robust enough to meet our requirements

The amounts in the Finance Plan facilitates the delivery of the Business Plan over the next 3 years

The completion of the re-financing and conversion to a CBS will secure the future of APH