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Our vision is
“to deliver excellent Housing Services”
Business Plan 2016 to 2021
Newark and Sherwood Homes
Limited
Created By: Rebecca Rance
Approval Date: January 2016 Approved By: Board
Review Date: January 2017
Future Approvals: Board Access Level: Internal
2
Contents Page
Section 1 Introduction 3
Section 2 Known Identified Priorities 3 Section 3 Business Context and Analysis 5
Section 4 Financial Business Plan and Forecast 7 Section 5 Business Resilience 9
Section 6 Focus for Action for Next Five Years 9
Appendices
Appendix A List of Supporting Evidence 11
Appendix B Strategic Framework 12 Appendix C Business Plan 2015/16 -2020/21, Formulation
Matrix
13
Appendix D Business Environment Analysis December 2015 22
Appendix E STAR Outturn Analysis 2014 and HouseMark Outturn Summary dashboard
33
Appendix F Delivery Against Action Plan 2014/15 as at November 2014
36
Appendix G Accreditation Schedule 49 Appendix H System, Replace, Review and Upgrade Schedule 51
Appendix I Financial Business Plan 53 Appendix J Financial Business Plan inputs 55
Appendix K Company Capital Asset Register 56 Appendix L Strategic Risks Register – Revised 10 December
2014
57
Appendix M Corporate Key Performance Indicators and Key Tasks
61
3
Business Plan 2016 to 2021
Section 1 Introduction
This Plan sets an overall direction for the Company over the next five
years. This plan presents the first annual update of the 2015-2020 Business Plan and will continue to be reviewed and updated annually with
a full revision in 2018/19, to roll forward for a further 5 years from 2019/20, unless circumstances require full revision earlier.
The Plan is a high level summary strategic document and provides actions
which will be supported by and aligned to, the Company budget and Capital Programmes for each year of its application.
The Plan itself is short and succinct; key relevant information summaries
are attached at appendices as highlighted in the Plan and Appendix A
provides the comprehensive list of evidence which has informed the Plan.
To maintain manageability of the Plan and to support the appendices being used as reference documents; the appendices have been collated in
a separate document: the Business Plan 2015 -2020 Appendices.
A full Plan inclusive of appendices is available upon request.
The Business Plan for 2016 to 2021 (the Plan), in addition to this introduction, is comprised of the following sections:
Known Identified Priorities
Business Context and Analysis Financial Business Plan and Forecast
Business Resilience
Five Year Focus
Section 2 Known Identified Priorities
This section advises the identified priorities that inform this Plan and its outcomes. The Company has a 30 year Management Agreement with the
Council, who is its sole shareholder. Consequently the priorities of the Council related to the delivery of the Management Agreement are key
priorities for the Company during the life of this Plan.
Council priorities are captured within its Strategic Housing Vision, which is:
"To maintain the Council’s housing stock to a decent standard, ensuring
that it is fit for purpose to meet the needs of current and future tenants,
delivering excellent housing services that offer good value for money,
4
inclusive involvement and achieve tenant satisfaction, set against
sustaining a viable Housing Revenue Account Business Plan that can deliver the wider associated strategic priorities and objectives of the
Council"
The Council’s Strategic Housing Vision has 5 outcomes these are:
Outcome 1: Standards Delivery of the core business to manage and maintain the Council’s
housing stock to the required standards, within the Management Fee set, ensuring the stock remains fit for purpose.
Outcome 2: Involvement
Tenant involvement and satisfaction drive the operations of the Company and maintain the delivery of excellent housing services.
Outcome 3: Income Income collection is maximised and efficiencies are generated to
ensure the sustained viability of the Housing Revenue Account
Business Plan.
Outcome 4: Housing Need
Support the Council to meet the housing needs of the district’s residents set against the area’s demographic and socio-economic
profile through housing growth and regeneration.
Outcome 5: Growth Expansion into other business areas through innovation and
entrepreneurialism to attract inward investment to enhance services to tenants, the properties and neighbourhoods they live in, deliver the
Council’s strategic priorities and sustain a viable Housing Revenue Account Business Plan.
In addition to the Councils Strategic Housing Vision, the Council, through
the Council Leader, set for 2016, three additional challenges and priorities
for the Company:
Challenges for 2016/17 i. To be more open and transparent
ii. To deliver efficiency
iii. To be more flexible in service delivery
Additional Priorities for 2016/17
i. To increase stock
ii. To respond to changes in national policy
iii. Income Generation
These additional challenges and priorities are reflected in the tasks set
within this plan for 2016/17 and can been see at Appendix M
5
The Company has a Vision and Mission and values.
a) Vision: ‘Delivering Excellent Housing Services’
b) We will deliver through our Mission by:
Managing and maintaining homes to agreed standards and
offering services to support vulnerable people in the community
and their own homes
Engaging with our customers, tenants, residents, the public,
and staff to get the best possible service for every pound spent
Building homes for local people and providing opportunities for
people to access the housing they need
Encouraging tenant involvement in the management of their
homes
c) Company Core Values:
Customers First
Valuing Everyone Delivering Excellence
Continuous Improvement and Value for Money Sharing Information
The vision, mission and values are supported by a comprehensive
Strategic Policy Framework attached at Appendix B and robust
governance structure. Actions to sustain delivery of the Company Vision, Mission, Objectives,
Core Values and the Strategic Policy Framework and Governance Standards are therefore key priorities during the life of this plan.
Analysis of actions in hand and those required to deliver these key
identified priorities has been undertaken to inform the formulation of the Plan. A copy of the analysis is attached at Appendix C.
Section 3 Business Context and Analysis
This section analyses the business to inform the overall direction of the
Plan to deliver the identified priorities. This includes a summary analysis of:
The external business environment Performance
Internal capacity (people, system, process,)
6
Financial forecast
Business resilience Focus for action for the next five years.
Business Environment
The Company’s business environment has been analysed using a SWOT
and PESTLE analysis; these are attached at Appendix D. Each analysis details existing actions and future options in response to the known
factors identified in the analysis. Each analysis also identifies the areas of business focus actions and options that fall within, to differentiate the
emergent focus of the Plan over the next five years.
Performance
A summary of the STAR tenant satisfaction results and HouseMark
performance and cost results are attached at Appendix E.
Delivery against the requirements of the Delivery Plan as at December 2015 is attached at Appendix F. The Company had its formal
performance review meeting on 23rd July 2015 with the Council; no areas of concern have been raised with the Company.
The Delivery Plan and Action plan for 2016/17 have been agreed and the
Key Performance Indicators and tasks from these have all been included within the tasks and performance indicators in this Plan.
Internal Capacity
This section provides analysis of the Company, people, processes and
systems and how these support delivery of the identified priorities of the
Plan.
People – the Company’s lean resource levels necessitate a strong focus on the delivery of required outcomes from every input. The Company
supports and develops its staff resource to create a high capacity, high performance, resilience and flexibility to support the requirement for
continual change and improvement. Utilisation of, and investment in, externally accredited standards such as Investors in People and internal
mechanisms, such as the Company’s Change Management Programme, provide clarification of expectations and provide the tools for management
and staff to deliver outputs for outcomes. Consequently progressing agile working and investment in related technologies and systems maintaining
low level of absence, reducing unplanned turnover and achieving swift effective recruitment remain priorities.
7
The Board has recognised, through its annual review and self-assessment
against the Langlands Standard for Good Governance in the Public Sector, the need for change to reflect the changing environment in which the
Company operates and is focused on building its capacity through the recruitment and development of relevant skills, knowledge and experience
whilst introducing revised structures and mechanisms which support effective governance. Known turnover patterns related to term of the
Board and expansion of business interests identify the requirement to prioritise succession planning and training for the Board.
Processes - to ensure the consistent delivery of effective and efficient
services to customers, the Company has utilised accredited structures such as Investors in People, Customer Service Excellence, ISO9001,
RoSPA Gold and most recently Investors in Excellence in combination with a Strategic Policy Framework. The Company has continued this process
of continual improvement through a review of its Quality Management
System, to reflect the changing needs of both the customer and the business since the introduction of the new Management Agreement, with
a high emphasis on continued delivery within resourcing levels. Streamlining processes and maximising the use of technology to support
self-service, remove duplication and deliver maximum efficiency continue to be a priority to release and realign costs. The schedule of
accreditation and related review is attached at Appendix G.
Systems – Newark and Sherwood Homes has invested in technology to yield efficiencies and this will continue to support customers, in shifting to
other more cost effective service delivery channels, in line with the Company’s operating environment; for example the online nature of
Universal Credit. The Company recognises that many customers will need support to achieve this shift effectively and will therefore change its
approach to an agile, flexible way of working which will aid this transition
and also improve the future efficiency of service delivery. Continual maintenance, review, updating and expansion of systems to support
working patterns, work flow and avoid duplication while maximising automation will continue to further support the realisation of the
Company’s required efficiency and appetite for growth. The schedule of system review, replacement and upgrade is attached at Appendix H.
Section 4 Financial Business Plan and Forecast
This section provides an analysis of the Company Financial Business Plan,
accounts and its assets.
Financial Business Plan - The Company Financial Business Plan is provided at Appendix I and details of the inputs are included at
Appendix J. At the end of 2020/21 the Company is projected to have
operating balances of £390k to utilise and over the five year projection
8
period has allocated £1,666k to growth and development which achieves
the 2% minimum contribution as per the Business Plan assumptions. In addition the Company will hold reserves of £1,380k.
The Financial Plan is currently set for a five year period and this will be
extended to a thirty year period by March 2016. The Financial Business Plan is based on the 2016/17 revenue and capital budgets which are set
to deliver the Business Plan.
The Company is progressing a three year E-project which commenced during 2014/15. This project is supported by significant investment in
systems and processes which will enable the Company to maximise the use of electronic working and integrate working practices. In addition the
Company will invest in its core information systems as needed to support the effective delivery of the day to day business.
The Financial Business Plan shows that the income from the Fee received from the Council in years throughout the period will remain the same.
The Company is committed to delivering a planned efficiency programme;
from analysis of current cost the areas targeted for efficiency related to key areas of focus are:
Materials for responsive repairs
Printing Communications.
These are supported by further generic efficiency activity in the
application of flexible and agile working arrangements and development of operational systems and processes as detailed above in section 3.
The Company Capital Asset Register is included at Appendix K.
The Company owns seven properties; during 2015/16 the Company has aligned £800k to growth and development, of which £375k is to fund
developments of four flats at the site on Second Avenue, Edwinstowe. The remaining £425k is to be set aside to contribute towards the Bowbridge
Road Scheme to be delivered in conjunction with NSDC.
To support the Company growth ambition, focus is placed on financial liquidity and long term financial viability of the Company. Additionally
investment in appropriate staff expertise, research & development and appropriate external expertise is aligned to support the priorities, broad
areas of focus and actions in this Plan. The Company Financial Business Plan uses revenue contributions to fund the development of the
Company’s Capital Programme. Financial structures seeking to maximise
the return on company assets, by releasing additional resources for
9
Company investment to strengthen the financial position of the Company
Financial Business Plan, are a priority to progress early in the life of this plan.
Section 5 Business Resilience
This section considers the resilience of the Company to deliver the Plan
and considers corporate risks and assurance.
Risk
The Company Corporate Risk Register is attached at Appendix L; this provides the status and level of the risk. These risks do have an impact
on the Company’s ability to deliver and the focus and actions in the Plan give regard to these. This Plan is ambitious and the Company will
continually monitor the risks and maintain strong performance
management to continual maximise delivery.
Assurance
The Company has a comprehensive suite of insurance policies in place to meet legislative requirements and to protect the Company against
unexpected financial loss relating to insurable perils. The Company proactively manages insurance claims to ensure timely responses to
support effective mitigation. Claims are analysed to progress any identified learning.
Since inception the Company has achieved a positive annual internal audit
statement regarding its internal controls, systems and processes. The External Auditors, on completion of the most recent financial accounts
audit, provided a full assurance opinion and identified no particular areas
for focus.
Section 6 Focus for Action for Next Five Years
This section, having regard to the early sections and related appendices in
this Plan, identifies the themes of strategic focus for the Company from 2016 to 2021 as:
1. Core service performance maintained.
2. Successful delivery of the Management Agreement with the Council.
3. Resource and skill maximisation and resilience - Board and staff. 4. Increased income maximisation and business growth.
5. Increased brand awareness.
6. Maximisation of output and desired outcome for input.
10
7. Maximisation of effective use of technology to deliver efficiency.
To deliver the priorities with regard to the areas of strategic focus
identified above, Key Tasks and their related outcomes and Key Performance Indicators and their targets have been identified; these are
attached at Appendix M. These will be reviewed and changed as part of the annual review of the Plan.
11
Appendices
Appendix A
A. List of Supporting Evidence
Annual Accounts 2014/15
Annual Action Plan 2016/2017
Constitution
Customer Service Excellence Assessment
Delivery Plan 2016/2017
External Audit Report 2015
HouseMark 2014/2015report
Internal Audit Statement and Reports
Investors in People Gold Assessment
Management Agreement
Quality Management System Assessments ISO9001
RoSPA Gold report
Investors In Excellence
Self-assessment against the Langland’s
Standard for Good Governance in the Public
Sector
STAR Satisfaction Survey
Tenants Annual Report 2015
Tenants Panel Scrutiny reports
12
Appendix B
Strategic Framework
Vision
Mission
Core Values
Corporate Branding
Company Constitution
Management Agreement
Business Plan
Delivery Plan
Annual Action Plan
Performance Management Framework
Improvement Planning Process
Efficiency Strategy
Budget Setting Process
Overarching Service Level Agreement
Procurement Strategy
Financial Regulations
Code of Procedures in relation to Contracts
Meetings Procedure
Training Plan
Information Systems Strategy
Delegation Scheme
Risk Management Strategy
Governance Guide
Equality and Diversity Strategy
Health and Safety Policy
Asset Management Strategy
HR Policies
Growth Strategy
13
Appendix C
Business Plan 2016/17 -2021/22 - Formulation Matrix Identified Challenges and Priorities – new cllr blaney comments…
Known
Priorities
Actions in place to
progress priority
Action required to
progress priority
Within
Company gift and
tangible additional
options identified
Area of
focus for BP
Specific
task(s) for inclusion in
BP required
Council:
Strategic Housing Vision: "To maintain the Council’s housing stock to a decent standard, ensuring that it is fit for purpose to meet the needs of current and future tenants, delivering excellent housing services that offer good value for money, inclusive
involvement and achieve tenant satisfaction, set against sustaining a viable Housing Revenue Account Business Plan that can deliver the wider associated strategic priorities and objectives of the Council"
Outcome1: Standards Delivery of the
core business to manage and
maintain the Council’s housing stock to the
required standards, within
the Management Fee set, ensuring the stock remains
fit for purpose.
Delivery Plan. Management Agreement. Annual changes process.
Asset Management Strategy.
Asset Management Programme. Procurement Processes.
Efficiency Strategy. E-Project.
Negotiation for Fee to cover core service costs.
No
14
Outcome 2:
Involvement Tenant involvement and
satisfaction drive the operations of
the Company and maintain the delivery of
excellent housing services.
Tenant Participation
Mechanisms. Tenants On Board. Tenant Panel.
STAR survey completed regularly.
Final stage of complaints determined by tenants.
Succession Planning.
Promote the importance of being involved
communications.
Yes Core service
delivery. Successful delivery of MA.
yes
Outcome 3: Income
Income collection is maximised and efficiencies are
generated to ensure the
sustained viability of the Housing Revenue Account
Business Plan.
KPI’s set. Performance Management
Framework. Performance Management culture.
Welfare Reform Action Plan. Welfare Reform internal
audit report. Progression / promotion of electronic payment.
Strong and supportive enforcement processes for
rent recovery, leases.
Increase electronic payment. Research introduction of
service charges. Company charges to cover costs: laundry, meals
electricity etc. Paperless.
Self-service. HRA Monitoring.
Yes for Company
tenancies. No for Council.
Yes, subject to Delivery
Plan Agreement. Yes
No
Core service delivery.
Maximisation of technology Successful MA
delivery. Growth.
Outcome 4:
Housing Need Support the Council to meet
the housing needs of the district’s
residents set against the area’s demographic and
Growth Strategy.
Acquisition of property. Acquisition of land. Project management of
new Build. HCA bid submission.
Site assessment for development to meet need. In-house development
None.
Formulate proposals of how the Company can deliver growth and take forward to
the Council. Use of borrowing as leverage
for further borrowing by the Company. Use of revenue for borrowing
Growth.
Brand awareness. Resource
maximisation.
15
socio-economic
profile through housing growth and regeneration.
expertise.
Efficiency Strategy. Management Fee formula.
in the Company.
Outcome 5: Growth
Expansion into other business
areas through innovation and entrepreneurialism
to attract inward investment to
enhance services to tenants, the properties and
neighbourhoods they live in, deliver
the Council’s strategic priorities and sustain a
viable Housing Revenue Account
Business Plan
Growth Strategy. Energy inward investment.
Feed-in tariff in excess of £500K p/a.
Broad experience base. Wide skilled base in house. High investment in staff.
IiP Gold. Focus on outputs delivering
outcomes.
Progression of appraisal to assess viability of potential
additional business streams. Progression of building skills
to support outcome focused activity.
Yes Increase income.
Brand awareness.
Growth. Enhanced capacity/
resource. Outcome
focused.
Y
Challenges
2016/17 Actions in place to
progress priority
Action required to
progress priority
Within
Company gift and
tangible additional
options identified
Area of
focus for BP
Specific
task(s) for inclusion in
BP required
To be more open Delivery Plan Review of rules on Yes Successful MA Y
16
and transparent
Website review publications to ensure
transparency
delivery
To deliver efficiency
Company Business Plan Improvement Planning Process
Company E-project Channel Shift
Maximise electronic service access and delivery. Support move from Kelham
Hall to new council offices. Agile working including
scheduling and desk booking system.
Yes Successful delivery of the MA
Enhanced capacity/
resource
N
To be more flexible in service delivery
Customer Promise Review Customer insight through feedback mechanisms
Yes Successful delivery of the MA
Enhanced customer
service and reputation
Y
Priorities 2016/17
To increase stock
Business Plan Growth Strategy Delivery and Action Plan
Bowbridge Road Bid
Support development of council housing growth strategy
Y
To respond to changes in national
policy
Improvement Planning Process – SWOT and
PESTLE Strategic Housing Liaison Panel/ SHL Meeting
Ongoing monitoring, lobbying and engagement in
consultation exercises.
None additional
Yes N
Income Generation
Business Plan
Growth Strategy Delivery and Action Plan
Progression of appraisal to
assess viability of potential additional business streams.
Yes Increase
income. Brand
Y
17
SHLP Progression of building skills
to support outcome focused activity.
awareness.
Growth. Enhanced capacity/
resource. Outcome
focused.
Company:
Objective 1: To deliver high and
improving performance in customer
satisfaction and all areas of service
provision
Delivery approach for staff. Performance culture.
Complaints system. ISO. CSE.
IIP Gold. ROSPA Gold.
Investors in Excellence Capita review. Open Access.
Total Mobile. Agile / flexible working –
E-project. Staff training programme.
Enhanced and differentiated services to be communicate
for all services: urgent, routine, planned. Agile flexible working
including scheduling. Progression of building skills
to support outcome focused activity
Yes Core service. Successful MA
delivery. Resource / capacity
maximisation. Growth.
Outcome focused. Maximising
technology.
Y
Objective 2: To provide efficient and effective
investment and service solutions
targeted to meet local need and deliver sustainable
Homes and Communities in the
future.
Asset Management Strategy. Procurement Strategy.
Asset Management Programme.
Growth Strategy. E -project. Promotion of paperless.
Digital access. Electronic payment.
Agile and flexible working including scheduling. Maximised digital service
provision. Minimise paper.
Maximise electronic service access and delivery.
MA delivery successful. Core service.
Resource maximisation.
Growth. Maximising technology.
Outcome focused.
Y
18
Objective 3:
To maintain and manage a sustainable and
viable financial business plan
Company Financial
Business Plan. Company Business Plan. Improvement planning
process.
None additional and not
already detailed.
Resource
maximisation. Growth.
Objective 4: To productively
deliver growth to meet the Company’s and
Council’s objectives.
Growth Strategy. Experience and skilled staff
base to deliver development and new service areas.
Option appraisal processes.
As above.
Board priorities for the Company to deliver its Vision: what the Company will have achieved
Be a developer in 5 years.
Growth Strategy. Maximise resource available
form company income in year. Robust budget process
aligned to Business Plan. Experienced and skilled
staff.
Secure regular and prolonged investment project
management from the Council.
No
Own what we build
in 2 years.
Procurement of sites,
specifically Edwinstowe.
Allocation of funding to deliver
second avenue site in the 2015/2016 budget
Yes Growth.
Income maximisation. Outcome
focused.
No
Be providing
services for others in 5 years.
NCHA.
St Leonards.
Tender for business.
Proactive and at risk networking.
Form relationships. Dedicate resource through
yes Growth.
Brand awareness.
Income maximisation.
19
additional BDO to undertake
research & development – deliver specific growth. Progression of appraisal to
assess viability of potential additional business streams.
Outcome
focused.
Evidenced as efficient in 2 years.
Low cost. Delivered efficiency in year
1. Inward investment. E-project: increase
productivity and reduce overheads.
None additional. Maximise technology use.
Maximise resource/ capacity.
Outcome focused.
Be building and a viable company.
Growth Strategy. Financial Business Plan.
Clean External Audit. Annual accounts.
Viable and building already – none.
Growth. Income
maximisation. Outcome focused.
Trusted by the Council – with
absolute confidence and
would be chosen to provide other relevant services.
30 year MA. Close working relationship.
SHLP. Governance review
2014/15.
Continue to develop working relationship to deliver the
Council’s housing vision and strategy.
Promote Board and build relationships.
Growth.
Managing impact of RTB for new
build.
Risk highlighted to Council. Strong RTB procedures
ensuring sale only where legitimate.
Council to consider action. No Growth. Income
maximisation. Outcome
Focused.
Trust and
confidence in skilled employees.
Core values.
Performance culture. Performance management.
Strengthen formal
mechanisms for staff to be excellent and demonstrate
Yes Resource /
capacity maximisation.
Y –
Seek accreditation
20
Open feedback.
Staff satisfaction. Job description and person specification.
Mentoring and development.
IIP Gold. RoSPA Gold.
this through Investors in
Excellence.
of Investors in
Excellence.
Skilled and knowledgeable Board.
Governance Framework. Annual review. Individual Board appraisal.
Succession Plan. Board Review. Training Plan.
Yes Outcome focused. Growth.
Resource / capacity
maximisation. Core service delivery.
Successful MA delivery.
Providing existing core services to
private properties e.g. repairs.
Performance Management Core Values.
Growth Strategy. RoSPA Gold. Experienced staff, proven
track record. Experience in company set
up. Experience in new business entry.
Research options for development and options
appraisal. Financial systems checks. Market research.
Yes – subject to the
availability of staff resource.
Brand awareness.
Increasing income. Outcome
focused.
Y
Providing care services –
development and management.
Core Values. Growth Strategy.
Experience in company set up.
Experience in new business
Research options for development and options
appraisal. General business area
research & development.
Yes – subject to the
availability of staff
resource.
Brand awareness.
Increasing income.
Outcome
21
Appendix D
Business Environment Analysis December 2015
SWOT Analysis
Action in place Option for further consideration
Focus area - area of activity
Strengths
Experienced Staff. Training provision. Retention scheme.
Recruitment and selection. Good terms and conditions.
None required at this time.
Revise retention
policy to check fit for purpose and
responsive
Not applicable as no options for action.
Strong and high service performance.
Bench Marking
None required at this time
Not applicable as no options for action.
entry. Specific market research. focused.
Strong debt control systems.
Internal audit of Welfare Reform.
Welfare Reform actions implemented. Progression to promotion of
monthly payment electronic payment.
Revisit of mandatory monthly electronic payment as part of
tenancy, amend company tenancy and change on reallocation of current and
issue for any new. Table for Council
consideration as appropriate moving forward.
Yes for Company
properties. Yes for
Council properties.
Income maximisation.
Maximisation of technology. Outcome
focused. Core service
delivery. Successful delivery of MA.
Revise Company
Tenancy Agreement.c
22
Action in place Option for further
consideration
Focus area - area of
activity
Performance Management
Framework
Realisation of
performance delivery in key areas to
satisfaction ratings in
STAR
Low overall costs. Financial costs.
E-procurement. Financial performance
monitoring.
None required at this
time.
Not applicable as no
options for action.
Performance Culture. Performance 1 to 1’s. Performance Management
Framework. Performance Management
system. Case management
implementation Mobile working /DRS roll out
None required at this time.
Not applicable as no options for action.
Comprehensive performance
mechanisms.
As above. None required at this
time.
Continued
management support and focus
Not applicable as no
options for action.
Comprehensive risk management mechanism.
Risk Management Strategy. Proactive risk planning and
management Regular review of company
None required at this time.
Not applicable as no options for action.
23
Action in place Option for further
consideration
Focus area - area of
activity
risk appetite
Strong internal and external
audit reports
Audit reports.
Audit programme.
None required at this
time.
Not applicable as no
options for action.
Structured external Challenge
External accreditations maintained.
None required at this time.
Not applicable as no options for action.
Innovative
FIT. National contribution
None required at this time.
Not applicable as no options for action.
Knowledge and skills to realise opportunities.
Staff experience and CV’s. None required at this time.
retention of difficult to replace and highly
invested in skill
Not applicable as no options for action.
Focus on core business.
Performance Management
Framework. Compliance and delivery of
Delivery Plan. High satisfaction.
Low level of complaints.
None required at this
time.
Not applicable as no
options for action.
Strong Strategic Planning. Improvement planning Process.
Internal Audit report.
None required at this time.
Not applicable as no options for action.
24
Action in place Option for further
consideration
Focus area - area of
activity
Weaknesses
Lean resources resulting in new
initiatives needing a longer lead in.
Opportunities lost
System and process review.
Risk identified and reported to Board.
Channel shift, digital
– reallocation of resource.
Resource aligned to
strengthen Key areas of expertise required
Resource and Skill
maximisation. Maximisation of
technology. Income maximisation.
Recruitment difficulty in
attracting required calibre staff.
Different recruitment
campaigns. Careers fairs.
Retention Policy.
Links with schools,
colleges, careers fairs, maximisation
of internships, apprenticeships.
Increase brand
awareness.
Reducing Stock Levels managed.
Risk identified proposals raised with Council.
Expand /protection provision for others – county, NCHA.
Company growth. Support for council
growth. Provision of services
for others.
Increased income. Increased brand
awareness.
Insufficient senior and corporate resource.
Risk identified and reported to Board.
Realigned resources to add strength to business planning
and overall support to enable task differentiation.
Increase resource. Withdraw from
growth. Succession planning.
Realign resource.
Skill and resource maximisation.
Brand appreciation not reflecting
reality
Revision of satisfaction
mechanisms
Further analysis of
satisfaction
Increase satisfaction
25
Action in place Option for further
consideration
Focus area - area of
activity
Opportunities
Growth. Growth Strategy.
Allocation of funding Skilled and experienced staff.
Increased resources
for research and development.
Increase appropriately skilled
resource.
Skill and resource
maximisation. Increased income.
Increased brand awareness.
HRA Borrowing approvals
increased.
Site management and
assessment for development.
Bid formulation.
Projects manage
development for the
Council.
Increased income.
Further develop closer
relationship between Council and Company.
SHLP
Review of Partnership and Monitoring arrangements by
Audit Lincs
Deliver Management
Agreement successfully.
Strengthen tenants’
opportunities to influence and become involved in decision
making.
Tenant participation
mechanisms review.
Succession planning
for the Board. Enhancement of
social media. Progression of
channel shift.
Core service delivery
performance maintained. Maximisation of IT.
Maximisation of performance of
the Company Business Plan to deliver growth.
5 year plan.
Progression to 30 year plan. Expansion of asset base.
Assessment of
mechanisms to maximise viability of
the BP prudently.
Development of Second Avenue
Edwinstowe.
Growth.
Income Maximisation.
26
Action in place Option for further
consideration
Focus area - area of
activity
Company Property Ownership. Land and property
acquisition. Growth Strategy.
Efficiency Strategy.
Performance culture.
None required at this
time.
Not applicable as no
options for action.
Period of change for Board
membership and Governance.
Governance annual review
2013/14. Standards.
Governance Framework.
Succession Plan
Training plan. Annual review
2014/15.
Skill / resource
maximisation.
Maximise productivity through implementation and utilisation
of technology and removal of paper.
E-project. IT Strategy.
Comprehensive technology suite.
Channel shift.
None additional. Skill / resource maximisation.
Income maximisation.
Threats
External financial pressures.
Priorities for efficiency and related plans identified.
Financial reporting and control.
Procurement strategy and practices.
Performance Management.
Focus on key cost reduction.
Channel shift. Agile working.
Increase income. Resource maximisation.
Skill maximisation.
Pressure on Company
Governance to maintain
successful service delivery and achieve growth.
Governance Guide.
Annual Board review.
Individual Board appraisal. Experienced and skilled
professional advisers.
Refresh succession
planning.
Refresh training plan.
Skill maximisation.
27
Action in place Option for further
consideration
Focus area - area of
activity
Timely and appropriate
information. Progression of electronic
governance.
Reduction in stock level through RTB sales and non-replacement.
Risk identified to Council. Growth Strategy.
Funding for growth.
None. None.
Unrealistic expectation from
Shareholder – e.g cost increases not being met.
Adjustments requested in
annual MA changes. Impacts and risks identified
to shareholder. Regular communication with
shareholder. Risk Management Strategy.
Enhance mechanism
to build relationship with shareholder.
Areas to deliver efficiency identified.
Progression of E-project.
Agile working.
Resource and Skill
maximisation. Income maximisation.
Sector issues and level playing
field.
Proactive national and local
lobbying.
None additional. None.
Core suppliers going bust.
Contractor and supplier
register maintained. Procurement rules.
Contractual arrangements.
Consider insurance
cover. Introduce business
health analysis for approved core
suppliers.
Core service delivery.
Management Agreement delivery.
Core suppliers increasing costs beyond inflation.
Management Fee adjustment mechanisms.
Procurement mechanisms.
Consider use of fixed price contractors.
Undertake desk top
Maximise resources.
28
Action in place Option for further
consideration
Focus area - area of
activity
Contractual arrangements. market comparison
to ensure Value for Money for core high
value contracts.
Reliance on technology and the
cost of maintenance of systems outstripping value.
Procure during times of
discount. Form relationships with other
users.
Increase
participation at user groups.
Formalise mechanism for
buying power with other users.
Undertake desk top market comparison
to ensure Value for
money for core high value contracts.
Maximise resources.
Maximise skill.
Core supplier withdrawing from market.
Contractual arrangement Management Fee.
Adjustment mechanism.
None additional.
PESTLE
Action in place where
applicable
Option for further
consideration
Focus area - Area of
activity
Political Key National and Local
Policy
Ongoing review and analysis of
emerging policy None Strategic Business
Planning
29
Action in place where
applicable
Option for further
consideration
Focus area - Area of
activity
Deliver Management
Agreement successfully
Economic
Financial restrictions
on the Council.
Formulation of process for annual
Management Agreement changes through the Company and with
the Council to ensure services reflect Council requirement and
resources available. E-project to improve process and
systems. Staff development and
performance maximisation. Maintenance of external
assessments.
Enhance mechanism of
recording increased volume, new business
areas to reflect cost and support operation of
Management Fee arrangements.
Income maximisation.
IT maximisation.
Building industry in recovery – inflating
costs.
MA variation mechanism and Fee adjustment in place.
Provide options to council as increased costs are
identified.
Deliver MA agreement successfully.
Core service delivery performance maintained.
Unemployment dropping inflating
wage costs.
Maximise capacity of existing staff resource.
Retain key staff – review retention
policy. Agile working.
Ensure effective recording and recovery from
Council.
Consider Terms and Conditions.
Flexible working – annualised hours.
Core service delivery maintained.
Challenging economic
Increase use of technology to release resource – E-project.
Digital service delivery. Channel shift.
Resource maximisation.
30
Action in place where
applicable
Option for further
consideration
Focus area - Area of
activity
environment
increasing calls on services, customer
expectations and
demands.
Staff Development programme.
Increased interest
rates.
None. Review Treasury
Management Practices.
Income maximisation.
Inflation. Management Fee Adjustment.
Procurement rules.
Contractual arrangement.
None. Income maximisation.
Welfare Reform. Plan for management
implemented.
None. Delivery of MA.
Social
Progression on Universal Credit and
Direct Pay.
Welfare Reform Plan. Internal audit Welfare Reform.
None. Maximisation of technology.
Core service delivery. Maximise resource and
skill.
Increases in crime and disorder.
Inter-agency liaison. Customer support.
Focus on tenancy sustainment. Maximise / review tenant
engagement / participation.
None. Delivery of core service.
Reduced support and
services for elderly and vulnerable client
groups from other
Prioritisation of resource through
service differentiation - urgent, routine and planned – getting
resource to key priorities.
Promotion of Services. Income maximisation.
Brand awareness.
31
Action in place where
applicable
Option for further
consideration
Focus area - Area of
activity
sources.
Technical
Advancements in technology and
related reducing costs.
Procurement mechanisms. Contractual mechanisms.
Agile working.
Undertake desk top market comparison to
ensure Value for Money for core high value
contracts.
Income maximisation.
Digital exclusion.
Progression of self service. E -project.
GOALS. Tenancy sustainment focus.
None. Delivery of core services.
Skill and resources maximisation.
Channel shift.
Self-Serve. Open access.
Website review.
None. Delivery of core services.
Skill and resources
maximisation.
Maintain decency of
housing stock.
Capital programme in place and
resources. Asset Management Strategy
approved.
None. None.
Legal
Housing and
Planning Bill
Strategic Planning Process
Ongoing review and analysis of key legislative changes as they
emerge
None Strategic Planning
Delivery of core services
Welfare and Work
Bill
Strategic Planning Process
HRABP Review Ongoing review and analysis of
None Strategic Planning
HRABP Review Delivery of core services
32
Action in place where
applicable
Option for further
consideration
Focus area - Area of
activity
key legislative changes as they
emerge
Cities and Local
Government Devolution Bill
Ongoing review and analysis of
key legislative changes as they emerge.
None None
Introduction of E-procurement.
Procurement rules. None. Income maximisation.
Introduction of Care
Act.
Interagency relationships. None. Delivery of core service.
Crime and Disorder
Act 2014.
Inter-agency crime and disorder
forums.
None. Delivery of core service.
Changes to Employment
legislation – parental leave.
Revision of Maternity and Paternity Policy.
None. Delivery of core service.
Environmental
Requirement to recycle and dispose
of materials in an environmentally
responsible and cost effective manner.
Contractual arrangements. Health & Safety regulations.
Review material disposal and resale mechanisms.
Maximisation of resource.
33
Appendix E
STAR Outturn Analysis 2015and HouseMark Outturn Summary Dashboard 2014/15
34
35
HouseMark
36
Appendix F
Delivery against Action Plan 2015/16 as at December 2015
Title Progress @ December 2015 Overall completion
date and position
statement
Progress and resource
delivery mechanisms to
support the Council’s
housing growth strategy
and regeneration activities
It has been agreed with Council colleagues that this work will
now be presented through the Strategic Housing Liaison Panel
with a number of additional meetings to support a greater
understanding of the approach to housing growth including:
consideration of the HRABP including inputs and stress
testing
the national policy context the Company Business Plan and
an understanding of development costs. The delivery mechanism options open to the Council and
Company for progression
Task Ongoing
Formulate proposals of
how the Company can
deliver growth and take
forward to council an offer
to secure regular and
prolonged investment
project management from
The Council has advised the Company that they are currently
positioned as preferred project management partner for the
delivery of housing development. This has been demonstrated
through working practise and most recently the through joint
work on the Bowbridge Road proposal and hopeful delivery in
2016.
Task Ongoing
37
Title Progress @ December 2015 Overall completion
date and position
statement
the Council
Progression of skill
development through
Change Management
Programme, leadership and
performance to deliver
maximised output and
outcome for input
Programme continuing. IiE assessment has identified next
stages for internal work. There will be some tasks for
progression in 2016/17 which are in the process of being
formulated.
Work in Progress and
will continue into
2016/17.
Raise Brand profile Editorial group formulated with specific remit with work
progressing during the year focused on the brand profile.
Company publications have been reviewed. PR and Comms
contract re-procured, Branding opportunities are actively
being taken for internal and external events. The Company is
on track to complete award submissions for 2016/ 17
Initial work now
completed, work will
continue into
2016/17.
Implement staff
suggestions to improve
communication, leadership
and performance
management
Plan for delivery and implementation agreed and issued to
CMT for progression within April. Shared with and through
CMM. Each action delivered or in progress for delivery and
being monitored through CMT.
Further staff survey
completed and output
shared with staff for
consideration of areas
for onward
38
Title Progress @ December 2015 Overall completion
date and position
statement
development.
Continuation of e project to
support agile working
The e-project has now delivered declutter, hybrid mail, Wifi
hotspots and Mobile Working to trade staff. The project
continues with: wider roll out of mobile working, Company
Filing System to be delivered in year, Website review to
completed January and Case Management. All plans are
aligned to support the Councils Moving Ahead Programme
including Channel shift and Digital access. The e-project will
contribute directly towards the company’s efficiency
requirement.
Work in Progress and
will continue into
2016/17
Embed agile working Wifi installation completed, procedures for Agile role out and
Wifi usage completed. Kit roll out in progress.
Phase one completed with new kit rolled out by end of January
2016.
Work to consider enhanced operational arrangements for
Farah Close office to support MAP are being progressed and
have been included in next year’s business plan with a related
financial provision as below
Task Ongoing
39
Title Progress @ December 2015 Overall completion
date and position
statement
Liaison with the Council to
provide a co-ordinated
approach and preparation
for the relocation to new
offices from Kelham Hall
The company continues to support the Council in preparation
for relocation from Kelham Hall including:
*Consideration of approach to inbound and outbound mail in
new office
*Liaison with the council on alternative payment options
available to tenants (linked to cashier function)
*Exploration of options at FCO to establish office capacity for
the Company
Task Ongoing – will
continue to
September 2017
Develop 4 new build units
Company owned at Second
Avenue to NSH owned land
Works progressing on site and commencement event was held
on the 18th November with the Chair to mark the
commencement of the first new build scheme.
Task Ongoing -
Completion is due
29th April 2016.
Develop options of how
additional parking could be
provided and funding which
is over and above a
property sustainability or
health and safety landlord
Options developed for consideration and we are currently
working on this with Council Officers to seek their input before
bring this forward to Board. Subject to this ongoing
discussion, it is anticipated this may come forward to Board in
March 2016.
Task ongoing
40
Title Progress @ December 2015 Overall completion
date and position
statement
responsibility
Implement Legionella
assessment surveys over a
five year programme with
related capital investment
programme
This year’s surveys completed and remedial works on
programme. Budgets in place for 2016/17 to roll out ongoing
survey programme as part of an agreed 5 year programme to
survey all properties.
Completion of this
year’s surveys and
remedial works due
by February 2016.
Formulate and promote
model to deliver long term
management for
developers
Task Plans have been formulated to progress the project.
Given current priorities around other development activities
which are time critical, we are currently reviewing resources to
ensure delivery of this task is completed within the Company’s
expected timescales.
Target 2018
Establish tender principles
and internal mechanisms
and process to enable
tender submission for
external work
Task Plans have been formulated to progress the project.
Given current priorities around other development activities
which are time critical, we are currently reviewing resources to
ensure delivery of this task is completed within the Company’s
expected timescales.
Undertake research and
development to progress
Task Plans have been formulated to progress the project.
41
Title Progress @ December 2015 Overall completion
date and position
statement
prioritised areas for
business growth
Given current priorities around other development activities
which are time critical, we are currently reviewing resources to
ensure delivery of this task is completed within the Company’s
expected timescales.
Implement the outcomes
from the review of tenant
influence and report these
to the Council
New tenant influence structures implemented. Events and
actions to recruit tenants to new structure in place to deliver
to target of 25% increase in number of tenants involved
Task Complete
Liaison with the Council to
provide a coordinated
approach and consider
options to support the
channel shift and access to
services across the district
Working with council colleagues to align with the moving
ahead project and plan the transition to digital services
Task Ongoing
Review age designation of
supported accommodation
and link to housing support
charge, in context of: the
Council’s Allocation Scheme
and tenancy agreement;
Project commenced Task Ongoing - on line
for delivery within
timescale
42
Title Progress @ December 2015 Overall completion
date and position
statement
meeting housing need and
demand; and associated
risks with any such review
e.g. impact upon RTB.
Support the Council to
progress and deliver new
models of housing support,
such as that associated
with Nottinghamshire
County Councils Extra Care
programme and younger
adults with learning
disabilities
Provision of services at Vale View and Scarborough Road,
Bilsthorpe in place which are generating income for the council
in excess of the desired outcome. Further work in progress in
relation to the provision of extra care accommodation at
Bowbridge Road.
Task Ongoing
Continuation of
management of the
withdrawal of
Nottinghamshire County
Council Supporting People
funding and subsequent
service remodelling in
Complete - revised charges and services implemented Task Complete
43
Title Progress @ December 2015 Overall completion
date and position
statement
liaison with the Council
Continuation of progression
of implementation of
electronic governance to be
completed by end of
2016/17
A number of current Directors of the Board are working
electronically and all new Directors are being set up with
electronic mechanisms. The remainder of the Board will be
supported to achieve electronic working within the task
timescale.
Task Ongoing
Review of Council policies
in delivery of ASB, improve
coordination across
Company, Council and with
other agencies to remove
duplication, link to the
Council’s community safety
commissioning project
including requirements of
Crime and Policing Act
2014
Council has now completed its review which has enabled the
company to progress its own policy review which will be
completed in line with the reviewed timescale set by the Board
of January 2016.
Task Ongoing
Undertake the Board
annual review including
consideration of the
Annual Review completed Task Complete
44
Title Progress @ December 2015 Overall completion
date and position
statement
Board’s composition and
the role of the Chairman
and make
recommendations to the
Council on possible
changes
Create a range of
mechanisms with the aim
to develop and maintain
positive relationships
between the Board and the
shareholder
Complete - A range of approaches in place;
1. Regular contact between the Chair of the Board and leader
of the Council.
2. SHLM.
3. Invited Leader of the council to attend Boards strategic
planning events.
4. Audit of Company/Council relationship also ongoing 5.
Leading members now on Board and fully inducted with
training programme in place.
Task Complete
Revise Board Succession
Plan
Completed as part of Board Annual Review - Approved by
Board in March 2014
Task Complete
45
Title Progress @ December 2015 Overall completion
date and position
statement
Revise Board Training Plan On Board agenda for consideration at May meeting Task Complete
Progression of access to
services digitally to support
and align service access to
the implementation of
Welfare Reform
This task has been incorporated in to a wider channel shift
task - with project lead assigned to Steve Feast. Overall
project is aligned to council digital delivery and company e
project.
Task Ongoing
Enhancing communication
to raise awareness of how
tenants influence the
Company and the services
it provides
New tenant influence mechanisms are being implemented
which support the opportunity to refresh the communication
messages as part of the implementation process. The
Company has also introduced a review of its communication
media and has a new approach being progressed for Home
from Homes and other regular publications. The website is in
the process of being updated as part of the E-project and part
of the update is focusing on maximising the messages
delivered through the website communication.
Set up work will be
completed by March
2016.
i. New tenant influence
mechanism ii. Updated
Customer publications
iii. PR and Comm
supplier re-procured.
iv. Updated website
Options for de-pooling of
services charges included
This task as been put on hold for this year in liaison with
Council colleagues due to the requirement to evaluate the
Task not to be
progressed during
46
Title Progress @ December 2015 Overall completion
date and position
statement
in the rental charge are
developed to consider
enhanced tenant service
choice and HRABP viability
Housing Revenue Account and progress other associated
financial work strands with reference to the Elphicke House
Report, proposals on rent reduction and Welfare Reforms.
2015/16.
Progression of support for
and promotion of use of
mechanism for electronic
payment of rent and other
charges as preferred
payment method
This task has been incorporated in to a wider channel shift
task - with project lead assigned to SF. Overall project is
aligned to council digital delivery and company e project. task
will run to align with the wider Council Moving Ahead
Programme
Task Ongoing
Progression of a preference
to provide services
digitally/electronically
This task has been incorporated in to a wider channel shift
task - with project lead assigned to SF. Overall project is
aligned to council digital delivery and company e project. task
will run to align with the wider Council Moving Ahead
Programme
Task Ongoing
Revise the Company
tenancy agreement
Revised Company Tenancy agreement agreed at July Board. Task Complete
To actively explore and
identify further services to
This project is being focused to deliver the efficiencies from
the Moving Ahead Project and work is being progressed with
Task Ongoing
47
Title Progress @ December 2015 Overall completion
date and position
statement
review that have potential
for shared services with the
Council and other bodies to
deliver greater synergy,
resilience and efficiency
and reduce areas of
duplication
Council colleagues to develop shared access services and joint
approaches to channel shift.
Procurement sharing
opportunities, with the
Council, other public bodies
and Councils and other
housing organisations are
maximised
Task being delivered through the company alignment with the
wider Council Moving Ahead Programme
Task Ongoing
Undertake research to
establish how the company
financial business plan can
best yield maximum
growth
Initial research undertaken to explore financial options for the
Company. The Company Financial Business Plan is planned to
be updated for 2016/17 to cover a 30 year period and to
utilise the Capita financial modelling tool. This tool will
support stress testing and financial modelling of growth plans
to support onward growth and funding decisions.
Initial work
completed, further
analysis is required in
the context of the
extended Financial
Business Plan which
will progress into
48
Title Progress @ December 2015 Overall completion
date and position
statement
2016/17.
The Company Financial
Business Plan be extended
into a longer term financial
plan (30 years)
Finance and Audit Committee have a dedicated session to
consider the inputs and assumptions of the extended business
plan on the 28th January 2016.
The proposed
extended business
plan will be presented
to the Board at the
March 2016 meeting.
Procurement practices are
delivered accordance with
the requirements of the
new EU Procurement
Directive 2014
A review of the legislation has been undertaken and the
changes required have either been implemented or are
planned to deliver within the required timelines.
Work is completed or is planned to be completed within the
required timescales. The electronic tender process may be
delayed until 2016/17 to enable the Company to participate in
joint procurement through EEM.
Task ongoing
Seek accreditation of
Investors in Excellence
Accreditation achieved. Gap analysis report presented on 3rd
September showed the Company was meeting the
requirements of the standard.
Task Complete
49
Appendix G
Accreditation Schedule
Accreditation Achieved Status Last
Review
Next
Review
Key Outcome
Customer Service
Excellence
November
2012
Achieved January
2015
February
2016
To drive continuous improvement in
respect of those areas identified as a key
priority for customers, specifically;
delivery, timeliness, information,
professionalism and
attitude. Achievement of the standard
also puts emphasis on development of
customer insight, understanding
customer experience and a robust
measurement of satisfaction.
Investors in People
July 2007 Achieved
Gold
January
2015
July 2016 The standard is a management
framework to achieve high performance
through people. The standard gives
guidance on where to focus and provides
thorough analysis of whether practices
are working and where further
developments can enhance the
organisation.
50
Accreditation Achieved Status Last
Review
Next
Review
Key Outcome
ISO 9001 November
2007
Achieved June 2015 January
2016
The standard is designed to reduce
mistakes and duplication, increase
efficiency and productivity. Overall the
outcome is to improve process and
customer service.
RoSPA
October 2010 Achieved
Gold
October
2015
October
2016
The standard measures health and safety
performance and ensures good health
and safety management systems are in
place.
Investors In
Excellence
July 2015 Achieved July 2015 July 2017 The standard supports the achievement
of business improvement and delivery of
high performance focused on what
matters most to the organisation and its
stakeholders.
51
Appendix H
System, Replace, Review and Upgrade Schedule
System Provider Replacement Replacement
Costs
Next
Upgrade
Upgrade
Frequency
Upgrade
Costs
Next
Review
Review
Frequency
Review
Costs
Integrated
Housing Management System
Capita None
anticipated
None June 2017 Bi-annual No costs
anticipated for future upgrades
February
2017 Bi-annual None
Asset Management
System
Keystone None anticipated
None December 2016
Bi–annual £18000 February 2017
Annual None
Work Scheduling
Xmbrace DRS
None anticipated
None None planned
No specific schedule –
through discussion with vendor
and user group
No costs anticipated
for future upgrades
September 2017
Bi-annual None
Mobile Working
Capita Total Mobile
None anticipated
None As Capita Bi- annual No costs anticipated for future
upgrades
Implementation through 2016
Bi-annual None
Website In House using open
source software
Spring 2016 – replacement
with NSDC hosted system
Costs included in E-project
Not applicable
– system redundant
Not applicable –
system redundant
Website NSDC Hosted
None anticipated
None None planned due to
replacement in Spring
Will be determined following
system review
None anticipated
February 2017
Annual None
52
System Provider Replacement Replacement
Costs
Next
Upgrade
Upgrade
Frequency
Upgrade
Costs
Next
Review
Review
Frequency
Review
Costs
2016
Performance Management Software
Covalent None anticipated
None None planned
No specific schedule – through
discussion with vendor and user
group
None anticipated
November 2017
Annual None
Debtor and
Creditor Management
E-
financials
Analysis of
business requirement to be undertaken.
None at
present, determinant on analysis.
None
planned
Ad-hoc None
anticipated
None
planned Ad-hoc None
anticipated
HR Management System
Personnel Manager
Work progressing to move to
alternative HR management system
Not determined at present
None planned
Currently ongoing
53
Appendix I - A
Financial Business Plan
Newark and Sherwood Homes Company Financial Business Plan Operating Account and Reserves 2016-21
Income Expenditure
Year YearManagement
Fee Income
FIT
Income
Capital
Fee
Income
Other
Income
Total
Income
Central
Costs
Housing
Management
Repairs and
Maintenance
Research
and
Development
Continuous
Improvement
Total
expenses
Net Operating
(Expenditure)Capital
Surplus
(Deficit)
for the
Year
Surplus
(Deficit)
b/fwd
Surplus
(Deficit)
c/fwd
£000s £000s £000s £000s £000s £000s £000s £000s £000s £000s £000s £000s £000s £000s £000s £000s
1 2016/17 7,608 557 474 485 9,124 (2,282) (2,169) (3,862) (71) (71) (8,455) 669 647 22 0 22
2 2017/18 7,608 563 474 582 9,226 (2,332) (2,191) (3,938) (71) (71) (8,603) 624 563 61 22 83
3 2018/19 7,608 568 474 500 9,150 (2,382) (2,213) (4,028) (71) (71) (8,765) 385 152 233 83 316
4 2019/20 7,608 574 474 510 9,166 (2,432) (2,235) (4,120) (71) (71) (8,929) 237 152 85 316 401
5 2020/21 7,608 580 474 520 9,182 (2,481) (2,257) (4,161) (71) (71) (9,041) 141 152 (11) 401 390
54
Appendix I – B
Newark and Sherwood Homes Reserves
2016/17 2017/18 2018/19 2019/20 2020/21
£000s £000s £000s £000s £000s
Minimum Reserve 451 452 452 453 453
Core Services Reserve 100 100 100 100 100
Bad Debts Reserve 50 50 50 50 50
IT and Development Reserve 29 172 315 458 601
Staffing and Pay Reserve 100 100 100 100 100
Major Repairs Reserve 22 29 36 43 50
Growth Reserve * 690 - - - -
Revenue Reserve 26 26 26 26 26
Total 1468 929 1079 1230 1380
* This figure includes £000s
Contribution to NSDC Bowbridge Road Scheme 200 Agreed in principle
200
Funding for NSH Schemes Belle Vue 490 Agreed in principle
55
Appendix J
Financial Business Plan inputs
Assumptions for Modelling
Basis 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21
Inflation rate for pay Economic 2.20% 1.00% 1.00% 1.00% 1.00% 1.00%
Cumulative inflation Forecasts 100.00% 102.20% 103.22% 104.25% 105.30% 106.35% 107.41%
Inflation rate for non-pay Economic 2.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Cumulative inflation Forecasts 100.00% 102.00% 103.02% 104.05% 105.09% 106.14% 107.20%
Inflation for non-pay (repairs & maintenance Economic 2.50% 1.00% 1.00% 1.00% 1.00% 1.00%
Cumulative inflation Forecasts 100.00% 102.50% 103.53% 104.56% 105.61% 106.66% 107.73%
Inflation rate for operating income Economic 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Cumulative inflation Forecasts 100.00% 101.00% 102.01% 103.03% 104.06% 105.10% 106.15%
Interest rate on cash held E. Forecasts 0.75% 1.00% 1.00% 1.00% 1.00% 1.00%
Efficiency savings for fee Management -3.00% -3.00%
Cumulative for fee Agreement 100.00% 97.00% 94.09% 94.09% 94.09% 94.09% 94.09%
Growth
Min 2% of
Turnover £665k £800k ** £647k *** £563k *** £152k £152k £152k
Research and Development
5% income
(less Mfee) £77k £75k £71k £71k £71k £71k £71k
Continuous Improvement
5% income
(less Mfee) £77k £75k £71k £71k £71k £71k £71k
Investment Project Management Income
5% based
on known
growth £130k £122k £0 92k £0 £0 £0
** Includes £375k provision relating to Second Avenue, Edwinstowe and £425k provision relating to Bowbridge Road development - reflecting
Board resolution of upto £425k
*** Funding allocated to the development of the Belle Vue, Blidworth Site reflecting Board resolution
56
Appendix K
Company Capital Asset Register 2016-21
Cost
2016/17 2017/18 2018/19 2019/20 2020/21
£000s £000s £000s £000s £000s
Properties
1,141 1,141 1,141 1,141 1,141 Land
347 347 347 347 347
Total
1,488 1,488 1,488 1,488 1,488
Grant
2016/17 2017/18 2018/19 2019/20 2020/21
£000s £000s £000s £000s £000s
Properties
50 50 50 50 50 Land
0 0 0 0 0
Total
50 50 50 50 50
Depreciation
2016/17 2017/18 2018/19 2019/20 2020/21
£000s £000s £000s £000s £000s
Properties
21 30 39 48 57 Land
0 0 0 0 0
Total
21 30 39 48 57
Net Book Value
2016/17 2017/18 2018/19 2019/20 2020/21
£000s £000s £000s £000s £000s
Properties
1,070 1,061 1,052 1,043 1,034 Land
347 347 347 347 347
Total
1,417 1,408 1,399 1,390 1,381
NB: All software systems previously purchased and capitalised have now been fully depreciated.
The above analysis does not take into account any revaluation of the NSH properties
57
Appendix L
Strategic Risks Register – Revised December 2015
Risk
Ref
Risk Link Lead Action Probability Impact Monthly Status Target
Completion
Date
2
Absence of Key
Management leading
to Negative Delivery
Impact
Link to
plan
RR Treat Low Medium Links to Risk 7.
Additional resource
aligned increases ability
to manage the immediate
impact of such an
occurrence to allow
alternative actions to be
considered.
Not applicable
3 Pressure on
Company
Governance
requirements to
maintain the success
of the Company
during the delivery
of a period of growth
for the Company
Link to
plan
SF Treat Medium Major 2014/2015 governance
review completed.
Succession plan revised,
Co-option protocol
invoked. Training Plan
approved.
Consideration of Boards
governance standard to
ensure for for purpose
Training plan to be
scheduled and co-optees
sought
June 2015
58
Risk
Ref
Risk Link Lead Action Probability Impact Monthly Status Target
Completion
Date
5 Focus and
concentration is
removed from core
service delivery and
performance levels
are unacceptable
impacted.
Link to
plan
SWN Treat Medium Major Linked to risk 7.
Resource aligned to
support delivery of
Council growth plans.
Projects are being
reviewed to ensure
appropriate resources are
aligned to deliver
required outcomes.
Monitoring of impact to
be monitored and
assessed
October 2015
7 Lack of resource in
appropriate
expertise – resulting
in Performance not
achieving target and
negative
reputational impact
Link to
plan
RR Tolerate Medium Major Added December 2014 See action
plan, resource
realigned to
increase
expertise.
Some
appointed and
in post,
additional in
place from
August 15
59
Risk
Ref
Risk Link Lead Action Probability Impact Monthly Status Target
Completion
Date
8 Pressures in rebase for
2017/18 of Management
Fee of the passport in
Government policy of
rent reduction without a
commensurate reduction
in specification, related
to standard in the
Management Agreement,
leading to impact on
satisfaction and
performance.
Link to
Plan
RR High Major
9 Impact of the
Government policy in
relation to, for example,
Pay to Stay, is not costed
and funded to the
Company which results in
satisfaction and
performance in core
service reducing from
2017/18.
Link to
Plan
SF Medium Low
60
Risk
Ref
Risk Link Lead Action Probability Impact Monthly Status Target
Completion
Date
10 Satisfaction is reduced
and related service
demands and costs
increased, due to the
implementation of
Government policy, in
relation to, for example
fixed tenancy, Pay to
Stay.
Link to
Plan
SF Very
Probable
Negligibl
e
11 Main IT Capita Supplier
goes bust or withdraws
from market leading to
non-delivery of planned
efficiency, service
delivery impact.
Link to
Plan
SF Low Major
Action plans are formulated for treatable risks. Represents Low Risk (within acceptable risk appetite) Represents Medium Risk (managed by Appropriate Manager)
Represents High Risk (monitored by the Board)
61
Appendix M Corporate Key Performance Indicators and Key Tasks ¹ Target set to deliver HRABP inputs ² Low demand is defined as not allocated after being advertised twice
NSH ref
Performance Indicator 2014/15 Outturn
Indicator Frequency
Outturn YTD (Dec 2015)
2015/16 Target
(for reference)
2016/17 Target
Source
Income
COR_PI.01 % of rent collected ¹ 98.75% Quarterly 97.97% 96.25% 96.25 HRABP input¹
COR_PI.02 Amount of arrears as a % of debit ¹ 1.46% Quarterly 1.99% 6.5 6.5 HRABP input¹
COR_PI.03 % of rent loss through voids ¹ 0.6% Quarterly 0.66% 2.0% 2 HRABP input¹
COR_PI.04 % of former tenant arrears ¹ 0.98% Quarterly 1.46% 0.5% 0.5 HRABP input¹
COR_PI.05 % of leaseholder arrears ¹ 0.01 Quarterly 0.01% 0.025% 0.03 HRABP input¹
COR_PI.06 % of arrears written off ¹ 0.28% Quarterly 0.13% 0.65% 0.65 HRABP input¹
COR_PI.07 % of tenants in supported housing support charge arrears 17.82% Quarterly 23.04% 6.5% 6.5 Delivery Plan
Right to Buy
COR_PI.08 Number of RTB sales ¹ 21 Quarterly 15 25 25 HRA BP Input
COR_PI.09 Average RTB Value £92,815.89 Quarterly ££111,053.57 N/A N/A HRA BP Input
COR_PI.10 Average RTB Discount £46,451.36 Quarterly £53,546.33 N/A N/A HRA BP Input
Asset Management
COR_PI.11 % of properties meeting the Decent Homes standard 100% Quarterly 100% 100% 100 N/A
COR_PI.12 % split between responsive repairs (revenue) and Asset Investment Programme (capital)
26.3% Monthly 19.34% 30% 30% Delivery PLan
Welfare Reform
COR_MI.13 % of general needs tenants under occupying 15% Quarterly 12.61% N/A
N/A Delivery Plan
62
NSH ref
Performance Indicator 2014/15 Outturn
Indicator Frequency
Outturn YTD (Dec 2015)
2015/16 Target
(for reference)
2016/17 Target
Source
COR_PI.14 % of general needs tenants under occupying and in arrears
11.02% Quarterly 7.46% 9 9% Delivery Plan
COR_PI.15 % of tenancies paying by Direct Debit 39.97% Quarterly 44.56% 70 70% Delivery Plan
COR_MI.16 Number of general needs tenants in receipt of housing benefit (universal credit)
1609 Quarterly 1601 N/A N/A Delivery Plan
COR_MI.17 Number of supported housing tenants in receipt of housing benefit (universal credit)
1531 Quarterly 1559 N/A N/A Delivery Plan
Customer – latest outturn
COR_PI.18 % of general needs tenants satisfied with the quality of their home
84% Annual
Statement n/a 84.5 85 Delivery Plan
COR_PI.19 % of supported housing tenants satisfied with the quality of their home
91% Annual
Statement n/a 92.7 93 Delivery Plan
COR_PI.20 % of general needs tenants satisfied with the responsive repairs service
74% Annual
Statement n/a 76 76 Delivery Plan
COR_PI.21 % of supported housing tenants satisfied with the responsive repairs service
87% Annual
Statement n/a 91 91 Delivery Plan
COR_PI.22 % of tenants satisfied with supported housing services 89% Annual
Statement n/a 90 90 Delivery Plan
COR_PI.23 % of general needs tenants satisfied with landlord / overall service
83% Annual
Statement n/a 85 85 Delivery Plan
COR_PI.24 % of supported housing tenants satisfied with landlord / overall service
89% Annual
Statement n/a 90 90 Delivery Plan
COR_PI.25 % of general needs tenants satisfied with the neighbourhood
81% Annual
Statement n/a 80.3 84 Delivery Plan
COR_PI.26 % of supported housing tenants satisfied with the neighbourhood
91% Annual
Statement n/a 90.8 93 Delivery Plan
COR_PI.27 % of properties in low demand ² 4% Quarterly 4.91% 4 4 Delivery Plan
COR_PI.28 Complaints received referred to Tenant Panel / Housing 1 Quarterly 2 4 4 Delivery Plan
63
NSH ref
Performance Indicator 2014/15 Outturn
Indicator Frequency
Outturn YTD (Dec 2015)
2015/16 Target
(for reference)
2016/17 Target
Source
Ombudsman
Sustainability
COR_PI.29 Inward investment achieved £722,350.00 Quarterly £0 £400,000 £400,000 Delivery Plan
COR_PI.30 Efficiency delivery achieved (in accordance with Management Agreement)
5% Quarterly 0% 3% 3% Delivery Plan
COR_MI.31 Revenue spend for management and maintenance costs against budget
£8,765,715.00 Quarterly £5,247,100 N/A N/A Delivery Plan
COR_MI.32 Level of reserves £1,024,747.50 Quarterly £3,703,000 N/A N/A Delivery Plan
COR_MI.33 Finance available for growth (e.g. use of RTB receipts, reserves (year-end position), debt cap)
£21.6m Quarterly £21.6m N/A N/A Delivery Plan
COR_MI.34 Change in NSH Stock Size 7 Quarterly 7 N/A N/A Delivery Plan
COR_MI.35 Change in NSDC Stock Size 5440 Quarterly 5,423 N/A N/A Delivery Plan
Other
COR_PI.36 Average number of days absence due to sickness per employee (full time equivalent)
7.32 Monthly 5.73 N/A 7 Internal
COR_PI.37 % of employee turnover 8.8% Monthly 12.86% 12% 10% Internal
COR_PI.38 % of tenants satisfied that their views are being taken into account (General Needs)
64% Annual
Statement 64% 74 74% STAR
COR_PI.39 % of tenants who feel they are being kept informed about things which affect them (General Needs)
73% Annual
Statement 73% 85 85% 1370STAR
COR_PI.40 Average time (days) to re-let Council properties 17.26 Monthly 15.9 18 18 Internal
COR_PI.45 % of all reactive repairs completed within target time 99.57% Monthly 99.13% 99% 99.5% Internal
COR_PI.47 % of complainants satisfied with outcome of complaint 89.5% Monthly 97% 97% 97% Internal
COR_PI.48 Number of complainants satisfied with outcome of complaint
43 Monthly 63 N/A N/A Internal
COR_PI.49 Number of complainants dissatisfied with outcome of complaint (cumulative)
5 Monthly 2 N/A N/A Internal
COR_PI.51 % of investment programme committed 94% Monthly 96% 100% 100% Internal
64
NSH ref
Performance Indicator 2014/15 Outturn
Indicator Frequency
Outturn YTD (Dec 2015)
2015/16 Target
(for reference)
2016/17 Target
Source
COR_PI.52 % of investment programme spent 93% Monthly 51% 95% 95% Internal
COR_PI.53 Number of properties without a valid Gas Servicing certificate
18 Monthly 13 0 0 Internal
COR_PI.54 NO of RIDDOR incidents per employee per annum 0 Quarterly 3 0 0 Internal
COR_PI.55 Reportable accident incidence rate lower than Local Government average per year 100,000 employees (based upon RoSPA industry standard)
0 Quarterly 1041 1370 1370 Internal
COR_PI.56 Number of external audit observations outstanding longer than 6 months
0 Quarterly 0 0 0 Internal
COR_PI.57 Number of internal audit recommendations breaching target delivery date
1 Monthly 3 0 0 Internal
COR_PI.61 Management accounts/completed on time 100% Monthly 100% 0 Internal
65
Corporate Key Tasks 2016/17
Corporate Key Task Delivery Period
Task Target Date
Expected Outcome
Continuation of progression of implementation of electronic governance to
be completed by end of 16/17. 01/11/2014 30/11/16
Reduction in paper and postage costs related to governance by
75% from 2017/2018 governance year
Continuation of the company e project to support agile working. Already
commenced 01/06/17
Contribution to 3% efficiency
target as required by the Company’s management
agreement
Liaison with the Council to provide a co-
ordinated approach and preparation for the
relocation to new offices from Kelham Hall. Including:
actively explore and identify further services to review that have potential
for shared services with the Council and other bodies to deliver greater
synergy, resilience and efficiency and reduce areas of duplication.
Procurement sharing opportunities, with the Council, other public bodies
and Councils and other housing organisations are maximised.
Already commenced 01/10/17
Reduced accommodation costs by
2017/18.
Increased staff productivity by 2017/18
Reduced complaints or service failure for non-response in
2017/18.
Liaison with the Council to provide a
coordinated approach and consider options to support the channel shift and access to
services across the district. Including the
Already
commenced 31/03/17
Contribution to 3% efficiency
target as required by the Company’s management
agreement
66
Corporate Key Task Delivery
Period
Task Target
Date
Expected Outcome
progression of a preference for Company
service delivery and access to be digital, electronic and self-service.
Review the existing rules on publications to
ensure transparency including, where a document is deemed confidential, there is
a clear justification noted. Differentiate whether document is accessible to share
holder. 01/04/2016 01/06/16
Board papers, new policies and
existing on review will include an accessibility assessment to
maximise transparency.
Formulate and consult on a monthly or 4
weekly tenancy agreement to align with contemporary income payment frequencies
and mechanisms (E.g. 4 weekly and electronically), to assist tenants to access
electronic payment methods and related personal cost savings e.g utility payments.
01/04/2016 31/03/17
Revised Tenancy Agreement supporting an increase in tenants
paying by Direct Debit monthly/ 4 weekly
Reduction in arrears. Reduced transaction costs relating
to cash transactions compared with the base line for 2014/15.
Develop and enhance a flexible and responsive customer access standard in
partnership with the Council and other
service providers to create a clear and aligned service offer appropriate to the
vulnerability of the individual. 01/04/2016 31/03/17
Reduction in tenant complaints.
Increase in customer satisfaction.
Assess the impact of Heat Metering
Regulations 2014. Appraise and align capital/ revenue resources as required. 01/04/2016 31/03/17
Assurance that the Company provision remains legally compliant
Agree the implementation of the revised
Council Allocations Scheme and work in 01/04/2016 31/03/17
Revised Allocations Scheme
meeting the following objectives:
67
Corporate Key Task Delivery
Period
Task Target
Date
Expected Outcome
partnership with the council in the
formulation of generic access to housing suitable to the individual’s need.
1. To meet statutory duties to local
households in housing need
2. To support applicants to meet their housing aspirations, across
housing tenures 3. To manage demand and
encourage applicants to self-manage their housing choices
and make informed decisions
4. To ensure the Councils equal opportunities obligations are met.
5. To make best use of the supply of affordable housing stock in the
District, contributing towards a vibrant housing market.
Work in partnership with the Council to support delivery of the council’s housing
growth strategy, set against maintaining a viable HRA BP: review of the HRABP;
support to deliver outcomes emerging from
the council’s programme of Neighbourhood studies; and appraisal of the development
mechanisms that enable the delivery of different housing products. 01/04/2015 31/03/17
Commissioning of development
programme for the company. Related to clearly defined role
requirement from the council or the company
Work in partnership with the Council and Nottinghamshire County Council to deliver
the extra care new build scheme at Bowbridge Road, Newark, and support the 01/052015 31/03/17
Provision and occupation of 60 Extra care units.
68
Corporate Key Task Delivery
Period
Task Target
Date
Expected Outcome
relate implementation arrangements, such
as allocations, rent & service charge setting, housing management provision
and formulation of the co-operation
agreement with the County Council.
Undertake detailed analysis of satisfaction
results from the STAR survey to identify any potential opportunities to improve
outturns commensurate to evidenced investment. 01/04/2016 31/07/16
The maximum benefit is derived from customer feedback through
detailed analysis to inform future work plans where appropriate.
Assess the impact off the new tenant influence mechanisms and formulate report
on the findings. 31/10/2016 31/12/16
Evidence that the outcomes from
the review of the Company’s mechanisms to engage tenants
have been delivered
Support the Council in maintaining the
viability of the HRABP including where this is supported by: housing growth through
new and innovative delivery mechanisms and housing products; supporting the cost
analysis and impact assessment of the
Housing & Planning Bill and Welfare Reform & Work Bill; and the potential of
de-pooling service charges. 01/04/2016 31/03/18 100 additional properties by 2018
To promote awareness with staff of the Newark & Sherwood Community (Military)
Covenant 01/04/2016 31/03/17
Increased awareness amongst staff
of the Community Covenant and opportunities to promote the
covenant in day to day service delivery.
69
Corporate Key Task Delivery
Period
Task Target
Date
Expected Outcome
Develop People Strategy 01/04/2016 31/03/17
Sufficient and appropriate human
resources to deliver its strategic objectives.
Review Employee Rewards and Benefits
01/04/2016 31/03/17
Attract high calibre applicants,
Improved morale and satisfaction levels, Improved retention,
Employer /Employee NI savings.
Revise Staff Development Interviews and
develop into an Employee Appraisal 01/04/2016 31/03/17
Vehicle to provide feedback and
measure performance against
targets Link tasks to Business Plan –
ownership and understanding of Company objectives,
Assist in succession / HR planning.
Review and Develop Performance Management System for Managers
01/04/2016 31/03/17
Develop Talent Management / Succession
Planning Strategy
01/04/2016 31/03/17
Vehicle to provide feedback and
measure performance against targets,
Link tasks to Business Plan – ownership and understanding of
Company objectives