Cornwall Housing Limited Agenda No: 10 Finance and ... · Structural Internal 21 8 38.10% ... Complaints Avoided 8 Assets 7 ... requirements of the H&S Gap Analysis are fully addressed

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Cornwall Housing Limited

Recommendations:

• Note the contents of this report and provide any comments on the content of the plans.

1. Executive Summary:

As part of the new monitoring arrangements this is the first round of service plan up-dates provided by Directors and Head of Resources. Appended to this report are the separate reports from the following Directorates:

• Housing Options • Landlords • Finance • Resources • Assets

2. Background and Cornwall Housing Objectives:

The Committee will remember that when the company first went live, it was a requirement of the Management Agreement to produce an annual Delivery Plan for the client. Cornwall Housing subsequently proposed to the Client and to the Board that the Delivery Plan be replaced by a more high level Strategic Plan to provide the 5 year direction of travel for the company. To provide details on an annual basis of key issues, challenges, performance, risk, resources and priorities, each directorate in Cornwall Housing produces a Service Plan, which is a live document which provides direction and clarity to staff about the activities of the Directorate over the coming year. It then is used to inform personal objectives in the Roles and Goals appraisal, giving each and every member of staff clarity of how they contribute to the overarching company priorities. Service plans are operational documents, created by the Directors.

Agenda No: 10

Report to: Finance and Performance Committee

Date: 17 November 2014

Title: Service Plans Update

Author: Emma Blatchford

Contact: Emma Blatchford Role: Head of Resources

[email protected]

mailto:[email protected]

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Progress on delivery of service plan objectives will be reported to the Board on a quarterly basis, enabling the Board to have a clear overview of day to day activity within each Directorate and how well the Directorate are delivering their plans. 3. Financial Implications and Budget:

None arising from this report. 4. Other Resourcing Implications:

None .

5. Legal Implications:

The Client officer has reviewed the Strategic Plan and accepted it as a suitable replacement for the Delivery Plan, with Service Plans also to be provided on an annual basis to give more operational detail. This is therefore an amendment to our Management Agreement which both parties have agreed. 6. Equality Impact Assessment:

Not applicable 7. Significant Risks:

7.1 There are no significant risks associated with this report

8. Consultation carried out including staff, SMT, Directors, specialist advice and the community: DLT, Board, and Cornwall Council’s Client officer.

Supporting Information

Appendices: Service Plans for:

• Housing Options • Landlord Services • Resources • Finance • Assets

Background Papers: None. Approval and Clearance of Report

Report cleared by: Jane Barlow Date: 17 November 2014

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ASSETS– SERVICE PLAN REVIEW OCTOBER 2014

Table of contents

Page

1. Financial position for the current period 1

2. Progress on our key objectives, Balanced Scorecard, 2

Complaints and projects for this year

3. Risks associated with the service area 8

4. What is the progress on measurements of quality for the 8

Directorate?

1

1. Financial Position for the current period

ASSETS Appendix C-2

Six Months ending 30 September 2014 Indicative End of Year CorecastActual Budget Variance Corecast Budget Movement£'000 £'000 £'000 £'000 £'000 £'000

IncomeCapital Cee - Property Improvments 5,584 6,216 632 Adverse 13,691 12,432 (1,259) Cavourable

Capital Grants - - - - - - Cavourable

Capital Cee - Development 487 2,315 1,828 Adverse 3,729 4,630 901 Adverse

Customer and Client Receipts 17 76 59 Adverse 51 151 100 Adverse

Other Grants and Reimbursements 41 114 73 Adverse 285 228 (57) Cavourable

Total Income 6,129 8,721 2,592 Adverse 17,756 17,441 (315) Cavourable

ExpenditureExternally Contracted Property Repairs

Reactive 2,280 1,190 1,090 Adverse 3,030 2,380 650 Adverse

Planned 507 739 (232) Cavourable 1,828 1,858 (30) Cavourable

Capital 4,679 4,702 (23) Cavourable 9,990 9,031 959 Adverse

- Development Cee 487 2,315 (1,828) Cavourable 3,729 4,630 (901) Cavourable

Employee Costs 3,248 3,149 99 Adverse 6,311 6,375 (64) Cavourable

Materials 1,271 1,123 148 Adverse 2,275 2,245 30 Adverse

Internal Recharges - - - - Premises Costs 382 338 44 Adverse 748 663 85 Adverse

Transport Costs 405 103 302 Adverse 646 312 334 Adverse

Supplies & Services 46 53 (7) Cavourable 93 106 (13) Cavourable

Depreciation and Impairment Losses 33 32 1 Adverse 66 63 3 Adverse

Recharges 9 224 (215) Cavourable 37 449 (412) Cavourable

13,347 13,968 (621) Cavourable 28,753 28,112 641 Adverse

bet Expenditure 7,218 5,247 1,971 Adverse 10,997 10,671 326 Adverse

Internally Completed RepairsReactive (650) (1,382) 732 Adverse (2,764) (2,764) - Planned (153) - (153) Cavourable - - - Capital (952) (1,514) 562 Adverse (3,327) (3,027) (300) Cavourable

(1,755) (2,896) 1,141 Adverse (6,091) (5,791) (300) Cavourable

bet Spend inc Internal Recharges 7,202 5,247 - - 10,997 10,671 - Adverse

Total Capital Property RepairsInternally Completed 955 1,515 (560) Cavourable 3,327 3,027 300 AdverseExternally Contracted 4,681 3,729 952 Adverse 9,990 9,031 959 Adverse

5,636 5,244 392 Adverse 13,317 12,058 1,259 Adverse

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2. Progress on this year’s objectives, balanced scorecard, Complaints and Projects

From the service plans pull out the key objectives and projects for the year and provide an update on progress etc in the table below

Objective/Project Expected benefits

Progress to date

Expected completion date

Asset Management Strategy

Production of a consolidated investment strategy and plan for the housing portfolio

Draft document to be submitted to DLT in December 2014

Following consultation process final document to be agreed by April 2015

Development of new Gypsy and Traveller Sites

New transit pitch provision

Project has been terminated and the HCA funding switched to a refurbishment programme for 64 pitches

Establish a new homes partnership to maximise efficiencies generated through procurement

More cost effective procurement of housing development projects

Draft Development Plan to Property Development Committee in November 2014

Needs to align with CC Housing Mandate proposals

Implementation of Asset Management System

Single IT system to manage data and model financial investment programmes

Procurement issues have significantly delayed this project – re-evaluation of software options in October has resulted in revised procurement decision

Implementation planned for June 2015

Improvement project for Gypsy and Traveller Sites

Investment secured from the HCA to refurbish the 64 G&T pitches

Contract agreed with Cormac November 2014 for start on site November 2014 – Practical completion March 2015

March 2015

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Key Objectives for 2013/15

Achieve Cornish Housing Standard compliance of 60% of all properties by 31/03/15

Single property standard for all properties

Target revised to 82% for 2014/15 due to current progress

2017

Achieve Housing Capital Programme expenditure of £12m for 2014/15

Achieve efficiency targets in line with Star Chamber submissions by 31/03/14

Deliver Development Programme target for 2014/15 – 45 properties (start on site) @ £4.6m

Complete the delivery of the HCA G&T site programme – 30 pitches £1.24m

Achieve efficiency targets in line with Star Chamber submissions

Develop more detailed proposals for stock disposal as part of the Asset Management Plan

Maximise service efficiencies via the introduction of mobile working technology for trade teams

Procure and implement a single IT Asset Management Software system

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Procure/commission G&T refurbishment programme funded via Capital Gateway £750k

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CORNWALL HOUSING CAPITAL PROGRAMME 2014/15

Component

Total jobs planned

Jobs completed

% Completed

Windows 987 510 51.67% Kitchens 579 381 65.80% Bathrooms 579 237 40.93% Heating 783 365 46.62% Doors 278 77 27.70% Rewires 27 17 62.96% Roofing 284 46 16.20% Heath and Safety 35 31 88.57% Structural Internal 21 8 38.10% Structural External 243 124 51.03% Capital Work from Response 13 7 53.85% External Cladding 7 2 28.57% Environmental Works 30 20 66.67% Energy Conservation 273 88 32.23% Voids 128 95 74.22% Total 4267 2008 47.06%

CARRY OVER PROGRAMME FROM 2013/14

Component

Total jobs planned

Jobs completed

% Completed

Kitchens 93 21 22.58% Bathrooms 102 28 27.45% Heating 258 246 95.35% Structural Internal 2 1 50.00% Structural External 4 1 25.00% Total 459 297 64.71%

Stock Surveys

Total Stock 10590

Surveyed Edited Combined

3782 (35.7%) 1529 (14.4%) 5311 (50.2%)

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CHS Failures by

Category

Section Item Status/Failures

PART 1 Good State of Repair

Equivalent to DH2 120

PART 2 Safe & Secure

UPVC Windows & Doors 1283

Up-to-date Service (Gas,Oil,SF)

100%

10yr Electric Cert (Desirable) Ongoing

PART 3 Adequately Heated & Insulated


Full Heating 1069

Loft Insulation 50

Insulated HWC 8

PART 4 Up to Date Facilities


Kitchens over 20 746

Bathrooms over 30 931

PART 5 Fire Prevention

A smoke Alarm Fitted 100%

Fire Risk Assessment (CA) 100%

PART 6 Estate & Environmental Work

Horticultural Standard 100%

PART 7 Specific Requirements

HHSRS 100%

No. of Failures by

Property

No. of Failures No. Of Properties Total Failures

5 Failures 7 35

4 Failures 42 168

3 Failures 141 423

2 Failures 528 1056

1 Failure 2182 2182

Totals 2900 3864

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CHS Compliance

Pass Fail Total

73% (7690) 27% (2900) 100% (10590)

Complaints/Compliments - At end of Quarter 2

Number of stage 1 received and resolved

48

Total stage 1 received 69

Stage 1 Complaint Outcomes Upheld 11 Partly Upheld 11 Not Upheld 22 No Finding 4

Average Turnaound Step 1 15.25

Number of Stage 1 Received by Directorate

Assets 39 56.52% Housing Needs/Options 12 17.39% Landlord Services 16 23.19% Finance 0 0.00% Resources 2 2.90%

Complaint Categories Assets Directorate

Failure to provide a service 7 Dissatisfaction with our policies 0 Unreasonable delays in the provision of service

11

Failure to provide adequate standards of service

16

Failure to fulfil statutory responsibilities 2 An employee's attitude or behaviour 2

Complaints Avoided 8 Assets 7 Housing Needs/Options 1 Landlord Services 0 Finance 0

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Resources 0

Compliments 40 Assets 17 Housing Needs/Options 11 Landlord Services 9 Finance 1 Resources 2

3. What are the risks associated with the directorate The major risks for the Directorate relate to the operational works activity. The revised Asbestos Policy will ensure compliance with all legislative H&S requirements and ensure safe working practices for respective staff. Additional staffing resources have been aligned to ensure that the requirements of the H&S Gap Analysis are fully addressed. Gas Servicing continues to require intensive management to ensure that all appliances are serviced within the set timescales. Work is underway to address the Statutory Testing process which is, at present, focussed around the void property stock. 4. What is the progress on measurements of quality for the directorate? Audit Recommendations Satisfaction surveys Benchmarking KPI monitoring for all procured contracts

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Appendix A Key risks for service area put into the following table

Cause Trigger Effects1 Jul-13 Political The Company

is tasked with providing Gypsy and Traveller sites in specified locations across the county. The Company has secured £1.2m

Public opposition creates difficulty in identifying sites and obtaining planning permissions.

• Failure to achieve target of 30 pitches• Failure to provide suitable authorised sites for Gypsies and Travellers • Loss of

3 3 9 • Close working relationship with the Planning Service (action completed)• Project Plan in place (action completed)• Lessons learned from Tregantle application being applied to future sites (action completed)• Consultation protocol in place and being followed. (action completed)

A. Pengelly 2 3 6 This risk has changed to reflect the change in direction on the focus of repairing and upgrading established gypsy and traveller sites. This risk is therefore removed. Please see new risk.

25 Oct-14 Legal Asbestos An incident occurs that puts a member of staff and/or p blic at isk of

• Can result in prosecution of significant civil claims for e pos e

• Asbestos Policy finalised and procedures in place

A. Pengelly 4 3 12

32 Oct-14 Technological Gas servicing If gas appliances, such as ovens, cookers and boilers, are not properly installed and maintained,

• Prosecution• It is illegal for an unregistered person to carry out work on any domestic gas appliance

• Update polices, advice and guidance on maintaining and servicing gas appliances• Ensuring that gas pipework appliances and flues are regularly maintained• Check to ensure that all rooms with gas appliances have adequate ventilation• Robust managemnt and review of contractor requires implementation

A. Pengelly 2 3 6

34 Oct-14 Technological Working with electricity and associated processess

Lack of work planning, risk assessments, procedures and training. Lack of fault or incident reporting

• Fatality• Electricl burns• Fire or Explosion

• To ensure that those working on electrical equipment, machinery or installations are competent to do•make sure staff are trained to appropriate level, experience and re-assessment• To remove all old policie and procedures replacing with relevant consistent documentation

A. Pengelly 3 2 6

NoDate of origin

Category

Latest ActionsCurrent position: 27.10.14

Impact Score Mitigations OwnerLike-

lihoodImpact Score

Previous position at end of Q1

Like-lihood

Scenario

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LANDLORD SERVICES – SERVICE PLAN REVIEW OCTOBER 2014

Table of Contents


2. Progress on our key objectives, Balanced Scorecard, Complaints and projects for this year 3-7

3. Risks associated with the service area 7-8

4. What is the progress on measurements of quality for the Directorate? 9

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1. Financial Position for the Current Period The overall budget for Landlord Services up until the end of September this year is showing a favourable variance of £43k with a projected favourable variance at the end of the financial year of £12k. Within that overall picture there are a number of issues that need to be brought to the attention of the Finance and Performance Committee. The Landlord Services Directorate is basically split into two distinct areas; housing management and the Independent Living Service. There are two main areas of overspend on the housing management side which impact negatively on the bottom line. Utility costs continue to increase year on year which is predominantly the cost of the Landlord’s electric in communal areas of flatted schemes – predominantly for lighting. We are predicting that we will overspend this budget by the end of the financial year by over £100k. The budget set for this area has not increased for several years now whereas energy costs have increased massively in the same period. The revenue spend in this area could be brought down but it would involve a relatively high level of capital investment in energy efficient lighting and possibly pv panels, or similar, on schemes. The other area of overspend on the housing management side is travel where we are predicting a £15.5k overspend at the end of the year. Whilst efforts will be made to try to reduce travel as much as possible, again, this is an area where the budget may have to be increased. Within the Independent Living Service we are showing huge savings on salaries and supplies and services. This is due to the cessation of our largest contract with Cornwall Council and although this also means a large loss of income, at present we anticipate that there will be a surplus by year end. The small amount of retained staff within the ILS will be working on the small Gypsy and Traveller/Homeless support contracts, the Individual Budget (Learning Disability) contract, delivering the chargeable service and retaining a presence in our Cat 2 sheltered housing schemes. We are carrying out a fundamental review of these schemes over the next 5 – 6 months.

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2. Progress on this year’s objectives, balanced scorecard, Complaints and Projects Objective / Project Expected Benefits Progress to Date Expected Completion Date Older Person Accommodation Review – Phase 2 (Mid)

Best use of housing stock and bring consistency with recent OPA review in East

Delayed due to resources not being available

March 2015

Complete ILS Restructure and Review

To comply with contract price and specification

Complete but contract then terminated shortly after!

Implications of WR – Phase 2

Mitigate Impact of WR Ongoing – Berryfields pilot project about to start

Nov. 2015 for the pilot project. Overall project ongoing

Communal Service/Service Charge/Project

Consistent communal services and service charging. Possible increased income through service charges

Started but then suspended and now delayed due to lack of resource

November 2015

Review Lifeline and Telecare Service Provision – implement chargeable service for Lifelines

Additional income to support the service

Chargeable service implemented from last December. Expansion plans held to tie-in with Handyperson Service

December 2014 for pilot handyperson service to start

Review Management and Use of Polruan Hostel and Hendra Hostel

Best use of stock Complete Decision to de-commission Hendra – now with Housing Options

Investigate and review the use of fixed-term and flexible tenancies

Best use of stock Complete but rejected by tenant forums and Board

Cat 2 sheltered housing Best use of stock Underway March 2015

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review

Tenancy Fraud pilot Tackle tenancy fraud Started August 2014. Key amnesty to start within next two months

Pilot to run until July2016

Explore opportunities to generate income

Increased income generation Limited so far to Lifeline (ILS) More opportunities to be explored over the next year.

Performance Indicators

Description Responsible Officer

Target Performance Qtr 2

Status Notes

% of customers satisfied with our services

90 97.61 This is a weighted av. For all our customer satisfaction PIs

ASB Case Handling A Fitzpatrick

90 93.9 Better than target

One customer dissatisfied with actions of an HMO

New tenancies satisfaction

M Gallagher/M Clemens

90 98.98 Much better than target

ASB: % of interventions out of total actions (intervention + legal action) to tackle ASB.

A Fitzpatrick

97 100 Better than target

As this PI is capturing all interventions and legal enforcement it is effectively capturing all cases where any action has taken place and therefore should always result in 100% as we should have no cases where we have failed to act in any way.

Tenants evicted for any reason (num and %)

S Blackie 30 (0.3%)

9 (0.086%)

Much better than average

6 evictions for rent arrears, 2 evictions for housing management, 1 eviction for neighbourhood enforcement

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Ave re-let time per dwelling

L Stevens 18.5 24.26 Much worse than target

At the end of this period we have let a total of 355 properties with an average void time of 24.26 days. There were 157 voids classified as major - 44.23%. During September, we let 76 properties with an average void time of 30.49 days and there were only 25 major voids - 32.89%, when in previous months the average was 47.31%. The increase in the void time this month is due to the reduction in the number of properties requiring major works and hence the property being ready to let prior to an applicant having been verified, offered and accepted a tenancy. We have addressed this problem and are currently now advertising properties at the earliest opportunity and seeking for surveys to be carried out during the notice period. We organised 7 direct lets to tenants moving off the management and welfare direct let lists. 7 properties were let on the 4th or more verification completed by the Landlord Services team. We are continuing to monitor the process and take necessary action to reduce the void times and to offer sustainable tenancies. During this month we let 1 Poldhu Road, Liskeard, this property had been requested to be held by Legal Services as part of a Legal case for possession of another

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property and therefore had been a long term void.

Ave. end to end re-let time

L Stevens 55 54.55 Better than target

At the same point in time last yr the average was 62.26 days.

Rent collected as a % of rent owed (HRA)

L Howarth 98.86 99.25 Better than target

Rent Collection is on target, this can be attributed to the hard work of the Rent Management Officers and the support available to tenants from the Welfare Project Advisors.

Current tenant arrears as % of rent debit (HRA)

L Howarth 2.3 2.09 Better than target

Rent Arrears are continuing to reduce; this can be attributed to the hard work of the Rent Management Officers and the support available to tenants from the Welfare Project Advisors.

Complaints Landlord Services has received 16 complaints in the first half of this year. 15 have been completed and 1 is still ongoing.

The shortest turnaround time was 1 day and the longest being 28 days with an average turnaround of 10.6 days against a target of 10 days.

Failure to provide a service 3

Dissatisfaction with our policies 1

Failure to provide adequate standards of service 8

An employee’s attitude or behaviour 4

Upheld 1

7

Partially upheld 3

Not upheld 11

3. What are the risks associated with the directorate Cause Trigger Effects Mitigations Likeliho

od Impact Score Latest Actions

Loss of independent living services

Increase in void rates for Cat 2 schemes as support is no longer available

Increase in refusals to Cat 2 schemes, loss of rental income, loss of reputation due to poor service provision

A review of Cat 2 schemes

4 4 16 Resources need to be assigned to delivering the mandate and developing a range of options for the company and objectives agreed by directors. Report to directors to be developed by the end of the financial year.

Proposed implementation of Govts. UC scheme – timetabled for 2016

Direct payments to tenants of their housing benefit

Inc in rent arrears, inc in resources required to chase debt, poor company performance, Loss of reputation, increase in evictions, loss of company income

Universal Credit pilot project

3 3 9 Pilot project about to start

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Our main source of ILS funding has already been cut and 14 staff have been made redundant and 14 posts have been terminated. We are attempting to mitigate the impact by pursuing other contracts, reviewing our Cat. 2 schemes and attempting to expand the chargeable service. Our pilot project that will inform us of the resources required to mitigate the impact of Universal Credit is about to commence on Berryfields Estate in Bodmin.

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4. What is the progress on measurements of quality for the directorate? The Landlord Services directorate continues to perform well in most areas, especially income management and neighbourhood enforcement. We have slipped in our performance indicator on void performance (minor works voids) with a turnaround of 24.26 against a target of 18.5. However, the void end to end times has improved from last year and is within the target of 55 at 54.55. It is this indicator that affects the void rent loss, therefore we have a smaller void rent loss than this time last year. The Independent Living Service has seen the loss of its most significant contract from Adult Care (Education, Health and Social Care) of Cornwall Council. The contract was for £716k for the year and was terminated with three month notice after six months of the year. This has meant a loss of £358k and has led to us making 14 staff redundant and 14 staff had their contracts terminated. We are keeping some staff within the service for support for our hostel at Polruan and for the G&T community as well as to run the Individual Budget (Learning Disability) contract. We also have our chargeable clients and are keeping some staff to run this service and to look after our Cat 2 sheltered housing schemes during the Cat 2 review that we are currently carrying out.

Table of contents

Page

1. Financial position for the current period

2. Progress on our key objectives, Balanced Scorecard,


3. Risks associated with the service area

4. What is the progress on measurements of quality for the

directorate?

xxx Service Plan Update

Cornwall Housing Ltd, Version v0.0, DD Month Year Author/s:


The following table shows the Quarter 2 position for the CHL budgets.

HOUSING OPTIONS Appendix C-6

Up To 30 September 2014 Indicative End of Year CorecastActual Budget Variance Corecast Budget Movement

---------- £'000 £'000 £'000 £'000 £'000 £'000

IncomeGeneral Fund Management Fee 1,326 1,322 (4) Cavourable 2,644 2,644 - Recharges 24 45 21 Adverse 102 89 (13) Cavourable

Government Grants 8 8 - 17 17 - Customer and Client Receipts - - - - - - Other Grants and Reimbursements 15 65 50 Adverse 130 130 -

Total Income 1,373 1,440 67 Adverse 2,893 2,880 (13) Cavourable

ExpenditureEmployee Costs 1,173 1,226 (53) Cavourable 2,374 2,451 (77) Cavourable

Premises Costs 8 17 (9) Cavourable 27 35 (8) Cavourable

Transport Costs 17 27 (10) Cavourable 40 54 (14) Cavourable

Supplies & Services 30 142 (112) Cavourable 222 285 (63) Cavourable

Third Party Payments 7 2 5 Adverse 5 5 - Recharges 5 25 (20) Cavourable 50 50 -

1,240 1,439 (199) Cavourable 2,718 2,880 (162) Cavourable

bet Surplus (133) (1) (132) Cavourable (175) - (175) Cavourable

The general fund budgets are split across both Cornwall Council and Cornwall Housing Ltd, and are perhaps some of the most vulnerable in the company, being subject to both the Council’s savings targets as well as the company targets.

The table below summarises the Quarter 2 position for the Cornwall Council budgets:


DepartmentCost Centre Description Current Budget

Profiled Budget

Actuals & Commitments

(ERP) VarianceFull Year Forecast

Forecast Variance

Housing Options (CH) 105001 Housing Mgt £3,143,868 £1,571,935 £1,446,937 -£124,998 £3,307,368 £163,500

105202 Homechoice Partnership £0 -£31,861 -£47,101 -£15,240 £0 £0105003 CHL Independent Living Service £0 £0 £0 £0 £0 £0

£3,143,868 £1,540,074 £1,399,836 -£140,238 £3,307,368 £163,500105402 Hendra Hostel -£124,716 -£62,358 -£40,425 £21,933 -£83,216 £41,500105413 BB Accomodation £134,741 £67,371 £67,371 £0 £134,741 £0105424 Leasehold Dwelling Countywide -£355,455 -£177,726 £11,739 £189,465 -£94,455 £261,000

105304 Homeless Prevention Projects £17,725 £8,862 £26,896 £18,034 £47,725 £30,000-£327,705 -£163,851 £65,738 £229,589 £4,795 £332,500

d ce & Prevention (JB) 105201 CBL & Housing Register £0 £0 £0 £0 £0 £0

105301 Homeless Prevention West £20,557 £10,280 £32,383 £22,103 £20,557 £0105302 Homeless Prevention Central £13,113 £6,557 £23,803 £17,246 £13,113 £0105303 Homeless Prevention East £10,737 £5,370 £21,571 £16,201 £10,737 £0

£44,407 £22,207 £77,757 £55,550 £44,407 £0Housing Services (MV) 105101 Housing Strategy £10,300 £0 £0 £0 £10,300 £0

£10,300 £0 £0 £0 £10,300 £0

Total (excluding Gypsy & Travellers) £2,870,870 £1,398,430 £1,543,331 £144,901 £3,366,870 £496,000

Temporary

Accomodation (JB)

CHL budgets tend to be primarily staffing related and relatively stable, whereas the retained budgets are more operational and volatile.

At this point in the financial year, the position on the CHL budgets is favourable with underspends being reported across all areas and sufficient budget being aside for future year’s pay commitments.

However, on the Cornwall Council side, there is significant pressure and overspends projected of around £500k, with approximately 50% of this being attributable to a shortfall in bad debt provision, which has only just been brought to light. At the time of writing, we are still fully exploring some of the assumptions being made around the overspend as well as developing recovery plans in conjunction with Cornwall Council to reduce this forecast variance and reflect any variance as accurately as possible. Should there be any action required to transfer any of the CHL surplus budgets across to Cornwall Council, further information and reports will be brought to the Committee.

As a combined budget of approximately £2.7m, the Directorate is seeking to make a 15% saving (£405k) on the combined budges for 2015/16. Plans and proposals have been made to meet this budget reduction and are still subject to confirmation.


The table below sets out the key objectives and projects for the year from the Housing Options Service Plan.


Objective/Project Expected benefits

Progress to date

Expected completion date

We will implement the changes from the Allocations Policy review with minimal service and budgetary impact by 31/3/15

Members have reviewed policy and incorporated some changes permitted via Localism Act

Policy has received cabinet approval and we are now into an implementation phase which is split into 2 phases, due to new system required for phase 2.

Phase 1 changes on target

Phase 2 changes 30/9/2014

We will deliver Service Improvement via the Housing Options Gold Standard (Bronze by 31/3/15) and embed quality control measures across the Service areas

Working towards a clear vision within a clear operational and strategic framework will ensure that we can deliver effective and cost efficient prevention services

On track.

Peer review completed with successful score

Continuous improvement plan in place

Gold standard submission made but awaiting outcome

31/3/15

We will achieve the Temporary Accommodation reduction plan target of 335 including a B&B target of no more than 60 households

Reduced costs associated with service provision, better outcomes for service users/customers

Exceeding overall target with 296 households in TA at end of Q2

On target to achieve no more than 60 households at year end

31/3/15

We will develop a Lettings Agency for Stepping Stones to Homes

Relieve pressure on Temporary Accommodation

Relieve budget pressure via income generation

Behind schedule overall

Project Plan in place

Anticipated launch Jan 2015

31/3/15


but assumed income for current year will not be achieved.

Private market rented properties being let and managed for Cornwall Council (CTE)

We will carry out Homelessness Strategy Review by 31/3/15 in conjunction with strategic partners, including a consultation event to develop strategic themes

Clear strategic framework in place for delivery of homelessness prevention / response services across Cornwall via multi-agency/partnership approach

Suitable corporate commitment (gold standard challenge 1)

Review stage almost complete to inform future strategic themes and resources required.

31/3/15

We will effectively consult with staff on changes and implement the communication cascade

Engaged, informed and motivated staff team

On track – 1:1s, team meetings, directorate newsletters and annual away day in place

31/3/15

We will deliver channel shifts towards on-line access for our initial point of contact services, with clear branding for the service, quality measures and specialist staffing

Better VFM in service deliver

Enabling service users/customers to access info 24/7

Sound quality measures in place to assess effectiveness

Complete review of web pages complete for peer review with positive feedback, including videos for key client groups

Some shift toward on-line access for Homechoice but more can be

31/3/15, but some delivery may extend into 2015/16


done to improve efficiency

The directorate performance Balanced Scorecard Indicators are as follows :

Description Target Frequency April May June July Aug Sept Status Notes

%age customers satisfied with our service 90 Monthly 100 94.12 91.3 93.55 95.45 96.72

Much better than

target

Average length of stay in B&B (days) <42 Quarterly 31.7 32.82

Much better than

target

The Move On Team have removed focus to B&B due to the amount of voids within the PSL stock. This has seen a targeted approach to B&B move on.

Successful preventions as a % of all approaches where the threat of homelessness is identified.

20 Quarterly 16.6 22Better than

target

No notes provided

% refusal rate of lettings: CHL stock. 40 Quarterly 40.45 38.37

Better than

target

We have reviewed the definition and the formula for measuring the refusal rates. Looking at all the properties let between 01/04/2014 and 30/09/2014 and the number of refusals against these lets, Cornwall Housing have improved on applicant and landlord refusals over the last 6 month

% refusal rate of lettings: CBL partnership stock

45 Quarterly 69.06 37.02

Much better than

target

We have reviewed the definition and formula for measuring this indicator. Looking across all the RPs and the properties let between 01/04/2014 and 30/09/2014 and the number of refusals against these lets, there has been a significant improvement in individual provider lettings as well as applicant and landlord refusals over the last 6 month cumulative period. Some of the smaller providers have no refusals. Where it is felt that

Current rent arrears as a percentage of rent debit (hostels)

2 Quarter;y 1.85 1.33

Current rent arrears as a percentage of rent debit (PSLs)

2 Quarterly 2.91 3.03

The directorate also collects a range of local indicators (weekly and monthly) to collect data and inform management around some of our key service areas including Homechoice applications, case numbers and management, detailed use of temporary accommodation and Bed & Breakfast to enable close management and targeting of resources.

Complaints & compliments

The directorate dealt with 12 complaints during the quarter, which represents 17.4% of the complaints for the whole company. Of these 12, 5 were either upheld or partly upheld. In quarter 1, the directorate dealt with ?? complaints.


During quarter 2, the options directorate received 11 compliments, which represents 28% of all compliments received for the company.

The directorate is committed to service improvement and always seeks to learn from compliments and complaints received. As part of improving our customer journey we have recently introduced some interim management arrangements across the front line to put all services under one manager. This manager has also put in place arrangements to better manage complaints into the service and is very proactive in problem solving and responding to customers, which I believe has and will impact on our customer satisfaction. In a service area where we constantly have to manage customer expectations, it is a delicate balance to provide great customer service whilst not always being to give the customer what they want or expect.

3. What are the risks associated with the directorate Risks for the directorate are attached in Appendix A In addition to the risks set out below, it is apparent that there is an emergency risk around general fund budgets, both in terms of the management across two entities (Council and CHL) and the risk to budgets during the Council’s rigorous budget reduction programme. This will be identified/captured and added to the risk register for quarter 3. 4. What is the progress on measurements of quality for the directorate? The directorate is highly committed to an improvement framework and one of our key priorities is working toward the National Gold Standard for Housing Options. As part of this, the directorate participated in a ‘peer review’ this June – a precursor for progressing to an application under the Gold Standard Framework. The directorate achieved a very good score of 72% with the national benchmark minimum being 60%. We have just submitted our first application for a bronze grading (as Authorities must work towards gold progressively) and await the outcome of this. Very few authorities nationally have been through the process so Cornwall is certainly leading the way and fully committed to service improvement. We regard this as a long-term improvement programme and the Gold Standard Framework sets out standards of excellence for a fully effective and cost efficient options service.

Appendix A Key risks for service area are set out below

Prevention Activity not being recharged as per policy.

Service demand leading to high volumes of prevention cases, leading to increased expenditure - ie spend exceeds profiled budget.

Income does not match expenditure, leading to budget overspends.

3 2 6 •Monthly budget monitoring (action ongoing) • Provide all relevant officers/managers with relevant codes for recharges (action completed) • Ensure all officer/managers are fully trained on relevant policies (action completed) • Sign off of spend and recharge procedures (action ongoing) • Detailed void monitoring (action ongoing)

A. Brooks

PSLs / Hostels vacancy rate exceeds budgeted tolerances.

Homelessness decisions not being made in a timely way, no 'match' of suitable. homeless household to vacancy, oversupply.

financial rent loss in excess of budgeted levels, failure to meet targets within management agreement

3 2 6 • Weekly void monitoring (action ongoing) • Handback schedule developed (action needed) • Use of PSL/hostel as emergency accommodation (action ongoing) • Review Temporary Accommodation Plan (action completed)

J. Couch


Households are placed in B&B when their case is not an emergency.

3 2 6 • Weekly review by managers of all cases in B&B (action ongoing) • Focus on move-on to incorporate Stepping Stones to Homes (action ongoing) • Active procurement of alternative forms of temporary accommodation (action ongoing)

J. Couch

1

RESOURCES– SERVICE PLAN REVIEW OCTOBER 2014

Table of contents

Page


2. Progress on our key objectives, Balanced Scorecard,

Complaints and projects for this year 4-10

3. Risks associated with the service area 10-11

4. What is the progress on measurements of quality for the

Directorate? 11

2


For the period ending the 30th September 2014 the net expenditure position is as follows for resources:

Current budget predictions estimate a favourable year end position of £21k. This includes a positive variance for transport costs, this is now a saving as a result of the move away from paying essential user car allowances to staff when they transfer to Cornwall Housing contracts of employment. The main adverse variance at this stage is in the staff costs where efficiency savings identified for two large change projects (the review of administration and telephony across the company) have resulted in the budget being adjusted to reflect the savings. These projects are in the process of being linked into a larger project which will require some additional resources to manage. We will endeavour to identify other efficiencies throughout the year to offset this potential shortfall. Discussion are also being had regarding the IS Service Charge which is partially top sliced and partially charged direct. BT Cornwall are keen to charge us direct for this service in line with our consumption of their services. If this does happen a mechanism is being looked at to ensure that it is cost neutral to us.

3


Service plan objectives and Projects:

Resources provide support services to the company as a whole and many of the services provided are in the form of projects.

Progress on Projects Resources are managing 19 projects at this time, some of which are corporate projects and some are service projects that may be companywide. Directorate Status Total projects Resources Project Completed - 2

Behind Schedule - 6 Project Terminated - 1 Project Brief -5 On Target - 5

19

Below is a progress update on the projects that are Behind Schedule at this stage and other objectives from the plan.

The full list of projects is appended to a previous report.

Objective /Project (P =Project Started)

Expected Benefits

Progress to Date Expected Completion Date

Review car parking and essential user allowances across the company (P)

More efficient working – reduce unnecessary travel

Work started on this with the trial of Video Conferencing, accessibility to Pool Cars and the Terms and Condition of Cornwall Housing not including essential car allowance. Completed what can be done so far but need to link now with other projects

Expected slippage on end date to September 2015 – linked with Accomodation Review

Make better use of IT across the company

• Implement the new Housing Management System and Asset Management

Efficiencies in working practices. Streamlining processes and automating events where possible. Coupled with equipping workforce to work more remotely and

Housing Management System (HMS) slipping slightly so we have moved more dedicated resource into the project. Further resources will be required in the final 6 months of

June 2015.

4


Expected Benefits


System (P)

• Investigate document management systems with a view of implementing in the following year

• Further roll out mobile working across the company

• Link with the Modern Working project

thereby reduce unnecessary travel time

implementation being implemented

Asset Management System is close to going to procurement. Specification has been updated and requirements identified.

Document management system is being investigated and we are awaiting the a Council decision on its own system route which may affect our options.

Mobile working will be looked at after the go live of the Housing Management System in June 2015

Modern working will link into the Office Accomodation project

Aiming to link with the above

Waiting on options appraisal

Project Planning how to take this forward but not enough resources to deal with this until the HMS installed

September 2015

Review of Business Admin across the company (P)

Efficiency and avoiding duplication

Roles with Administration duties included have been scoped

Project slipped due to resources issues within the team to complete this. Expected end date now September 2015

Review of call handling – Phase 2 (P)

Better customer service

Reviewing current arrangements. New project officer advertised to take this project forward

December 2015

Windows 7 Implementation (P)

Provision of supported

Project rolled out by the Council but has

March 2015

5


Expected Benefits


operating system significant disruption to the company. Roll out commenced for the company in August. Expected to continue for several months

Review Service Level Agreements (P)

Ensure we are receiving Value for Money and the service we are requiring

This has now stalled due to the Council not being able to cost the SLAs. Limited service specific information on what can be delivered is available

Unknown

Re-evaluate new Intranet and implement improvements/ future Developments (P)

Increase opportunities for customers to self-serve.

Should be completed by year end. Not all service areas fully updated the Intranet yet

March 2015

The Resources team have a significant number of projects to complete along with the everyday element of their work. There is one general project officer in the team and a temporary project manager brought in to manager the Accomodation Project. Other projects are picked up by teams whilst managing the every day work. This then makes the project vulnerable to slippage if the officers are caught up in every day issues. As a result not all of the project are able to be progresses in a timely manner.

6

Performance Indicators Resources are responsible for 13 indicators shown on the balanced scorecard. Of the six where the performance is much worse than target further information is provided below. Out of the indicators shown

Customers: Excellent customer service is at the heart of the company

Q1 Q2

PI Description Responsible person

Target Frequency

June Sept Status Notes

2

% of tenant compact delivered (completed).

E West 100 Monthly 0 20

Much worse than

target

Most of our compact action plan outcomes are projects that are ongoing throughout the year or take many months. The projects are underway but will be completed later in the year.


Target Frequency June Sept Status

Notes

Learning and growth: CHL invests in the skills and knowledge of our staff

Q1 Q2

1 % of Roles and Goals completed.

T Harris 100 Monthly

0

Much worse than target

(April - September) The R&Gs process this year was delayed resulting in some managers yet to complete their staff appraisals. Results are being logged but an accurate figure is not yet known.

2

% of approved training completed.


0


(April - September) Not all R&G returns have been received - this work has not yet been completed.


Target Frequency

June Sept Status Notes

Financial: CHL delivers value for money and is cost effective in our services

Q1 Q2

6

Amount of new business income generated.

J Marks £50,000 Monthly

0

Much worse than

target

Funding of £9359 has been brought into the company to deliver the commercial awareness and additional training New business income will be generated via the projects Stepping Stones to Homes and Under One Roof which final business cases will be presented to Finance and Performance in January 2015.

7


Target Frequency June Sept Status

Notes

Learning and growth: CHL invests in the skills and knowledge of our staff

Q1 Q2

3

% of mandatory training completed.


0


(April - September) The L&D Officer has only just returned from Secondment and will be developing reporting mechanisms to ensure accurate reporting of attendance in future. Currently seeking options for mandatory training to be booked via ERP. Some mandatory training areas are under review.

4

Average number of working days lost to sickness per employee.

C Martin 8 Monthly 3.32 6.97

Much worse than

target

(April - September) Sickness absence is significantly over target at the end of quarter 2 and performance is worse than at the same point of 2013/14. The absence management policy has recently been agreed and is the process of being rolled out across the company. Long term sickness is being closely monitored and short term sickness is being reviewed with managers and review meetings will be held where appropriate. However, 37% of sickness for this quarter is registered as being stress related. The Stress Survey also highlighted this and an action plan has been developed and is being implemented over the coming months. Long term sickness (= 20 working days) accounts for 64% of all sickness absence. Not including long-term sickness, the average number of working days lost per employee is 2.51. This highlights the significance of long term sickness for Cornwall Housing and points to where efforts should be focussed to reduce absence. The top five reasons for sickness absence are: Stress, Depression & Mental Health Stomach, Liver, Kidney & Digestion Chest & Respiratory Shoulder Injury/Dislocation (Related) Ear, Eyes, Nose & Throat (Cold/Flu)

8

The items that are down as much worse than target the key indicators include:

• Average working days lost to sickness. Our target for the year is 8 days and we currently are at approximately 7 days, this will get progressively worse throughout the year as the number of sick days recorded increases (the base position of staff numbers stays fairly constant). Projected outturn figures are looking like 14 days. Sickness management is crucial to bringing this down but there are other factors that are contributing to this result. The work we have ben undertaking within the Health, Safety and Wellbeing working groups on Stress and musculoskeletal disorders will hopefully help us mitigate some of these longer term issues. This is data that is companywide

• Amount of new business income generated. We are below the £50k target at this stage. There are a number of projects monitored by the new business and corporate project board which will hopefully produce some income during this financial year. The sign off process to go live involves 3 different meetings and so fitting with the meeting cycles significantly slows down any start dates.

• % of tenants compact completed – this is ongoing and linked to the work plan. It is anticipated that all actions will be completed by the end of the financial year.

• The Roles and Goals data for the company is being chased and logged, current details on numbers completed are not known but will be in place for quarter 3.

3. What are the risks associated with the directorate There are 12 risks registered for resources but many of these are Corporate risks. There were four existing risks that were on the Register at the previous quarter and there has been some movement between quarters:

• Transporting data risk has gone from an amber score of 9 down to a green score of 4. This is as a result of the mitigating actions being completed. However, we are continuing to publicise this particular issue as there is always a need to be vigilant. Looking to set up a wider risk around information security.

• The business continuity plans are nearly signed off and are back with the

service areas for their final sign off by their directors. The score is reduced but it remains green

• No costed SLAs with council services – this has gone down in risk slightly between quarters as we have been assured that there will be no increase in costs from the council from the services provided. The reduction of risk is because of this surety of cost. However, the performance against the SLA is still difficult to measure as the full plans have not been scoped and agreed.

• Windows 7 implementation – this is still a high risk project due to it delivery by an external company. Testing on software for compatibility has been patchy and demands on our teams for immediate checking and testing has been significant during the last three months. Downtime for staff while they get their computers can be up to a day and missed appointments with the implementation team may be charged in future.

9

In the last quarter there have been eight more risks added. These have been as a result of a number of reasons.

• Poor service from BT Cornwall on answering Out of Hours calls • A service failure for the Lone Worker system when there were changes made to

the process and telephone numbers and Cornwall Housing was not made aware. • Two Health, Safety and wellbeing surveys recently undertaken highlighted

issues with work related stress (linking with sickness absence) and musculoskeletal disorders

• Other health and safety work highlighted violence and aggression not being reported, gaps in health and safety policies, identification of training requirements and renewals

• Problems getting timely reports from ERP All of these risks are currently amber and we are working on further mitigations. 4. What is the progress on measurements of quality for the directorate? Performance information is in varying stages of completion. Call handling: Call handling statistics are in place that track the numbers of calls received by certain teams. The percentage of calls received and answered is tracked. We are further developing performance measures within the teams using quality monitoring techniques. Communications channels monitoring: We are in the process of gathering statistics on contacts to the company. Ie how many pieces of post we receive (and send) and what that post is. Call numbers, both internal and external. This will be used to help evaluate the current cost of services and the savings we can generate by providing information online for people to self-serve (where appropriate). Other areas: The use of Survey monkey is to be investigated to gain quality information on some of the services we provide other areas of the Company. This could be particularly useful for our internal IT team.

Finance Service

Service Plan Update as at Quarter 2 2014/15

Table of contents

Page


2. Progress on our key objectives, Balanced Scorecard, 3


3. Risks associated with the service area 4

4. What is the progress on measurements of quality for the 5

directorate?

2


The overall budget for the Finance Directorate for 2014/15 can be summarised as follows

Total Finance £000’s

Corporate Finance £000’s

Finance Service £000’s

Total Income (16,729) (16,688) (41)

Total Expenditure 1,617 903 714

Net (15,112) (15,785) 673

Forecast at August 2014

(15,354) (16,039) 684

Variance (242) (254) 11

As demonstrated, there are 2 elements to the budget.

The Corporate Finance budget contains some corporate budgets such as insurance and corporation tax, and the revenue management fees. The variance of £254k has arisen mainly on the Welfare Reform one off improvement budget which has been reviewed to determine the likely level of spend within the year. The remaining balance of £240k will now be transferred to earmarked reserves for drawdown in future years.

The Finance Service budget relates to the costs associated with the provision of the finance service. Current indications show a projected overspend of £11k on this budget.

This has mainly arisen due to

• A reduction in the anticipated level of interest which will be generated on the company’s SIBA (Special interest bearing account) funds resulting in reduced income of £20k

• An overspend on transport costs (£4k) which has arisen due to costs being incurred within the directorate but the budget being held within Resources

• Offset by savings on salary costs £13k

However, once the transport budget has been transferred to the Directorate, this projected overspend should reduce to £7k.

It is also worth noting that there should be a reduction on corporation tax implications due to the reduced interest which will reduce costs by a further £4k, albeit within the corporate finance budget.

3


Overall performance is progressing well within the Finance Service. The structure is now fully recruited (from September) and progress is being made in many key areas, and it is anticipated that further improvements will be made over the second half of the year as the team continues on their current learning curve.

The key difficulties that the Finance Team face are in relation to the current IT systems and the level of manual workarounds that are still required, both on ERP and the legacy Housing Management Systems. The current culture within the company is also hampering progress in some areas with resistance to the new ways of working still being experienced.

Continuously increasing workloads also place demand on resources.

Key Objectives for 2014/15

Expected Benefits Progress to date Anticipated Completion

Production of robust Statutory Accounts resulting in an unqualified audit report

Unqualified audit report

Complete 7 Sept 2014

Embed a Value for Money culture across CHL

Full delivery of efficiency savings targets, vfm at heart of the company so continuous savings are achievable

Significant progress made but still experiencing difficulties in some areas

Ongoing

Embed a fully devolved budget management and monitoring framework across CHL

Effective financial management and decision making, outturn in line with target

Significant progress made but still experiencing difficulties in some areas

Ongoing

Embed Finance Structure and develop a fit for purpose ‘value adding’ finance service

Finance able to effectively support business, subject to limitations of current IT systems

Ongoing with significant progress being made but delays in recruitment and constantly increasing workload will potentially result in slippage on target date for completion

31.03.2015

Carry out specific VFM Service Reviews

Continuous improvements in service delivery

Continuously increasing workload demands have resulted in reduced progress in this area. DLO review absorbing significant resources due to the level of manual workarounds required – no interface with ERP from Open Contractor

31.03.2015

4

Refresh the medium term financial strategy and financial plan for CHL to reflect newly emerging Group Structure proposals

Financial strategy aligned to new requirements, clear targets set for the company in terms of financial position

Current MTFS approved and in place but delays on refresh for group structure -Due to commence January 15

Dependent on Group Structure progress

Develop the financial system, in conjunction with Cornwall Council, to ensure the system is fit for purpose

Efficient and robust processes delivering effective management information

Ongoing – progress is being made on ERP but the system is still significantly below standard. Alternative systems currently being considered as part of Group Structure

Dependent on Group Structure progress

Develop a fit for purpose Growth Strategy and decision making framework

Only feasible options progressed with risks fully considered and mitigated

Ongoing 31.03.2015

In terms of the Balanced Scorecard, the majority of indicators relate to the financial performance of the company rather than the performance of the Finance Team eg

• amount spent against profiled budget – current projected overspend against budget £149k,

• percentage of efficiency savings made against target – on target,

• current tenant arrears – HRA better than target

• former tenant arrears – HRA on target

• number of audit recommendations outstanding – 69 actions much worse than target of 0, although the target of 0 was not a realistic target and needs to be reviewed

There have been no complaints received to date for the Finance Service and 1 compliment.

3. What are the risks associated with the directorate The key financial risks can be summarised as

• Government / Council spending cuts resulting in reduced resources

• Ineffective financial management across company resulting in overspends against resources available

Although action plans have been put in place around efficiency savings, income generation, and financial management, there has been varying success levels across the company. Current indications demonstrate that

5

both of these risks are materialising which are creating significant financial pressures for the company. It is anticipated that DLT will focus on this area over the next quarter to ensure that action plans can be put in place to mitigate these risks and minimise the impact. 4. What is the progress on measurements of quality for the directorate? The focus for the Finance Team over the remainder of the current financial year is on improvements and the key areas can be summarised as follows

• Developing relationships with the council to streamline processes and remove duplication, and ensure the services provided to CHL are aligned to our needs

• Redesign of the budget monitoring processes to ensure they are aligned to budget holder needs and requirements

• Working with the assets directorate to develop workarounds to address the weaknesses of the current HMS systems and lack of interfaces with ERP

• Contribute to the development of the DLO Trading Accounts and subsequent identification of action plan to address emerging issues

• Review processes cross the company for payment of invoices to streamline processes, remove duplication and provide a framework to ensure invoices are paid on time

• Production of a budget holder handbook and a training package to ensure all budget holders are fully aware of their responsibilities and are empowered to deliver their devolved budget management role

• Continue to work with other directorates to improve income collection rates

• Develop robust processes to assess financial viability of new business proposals

It is hoped that this work and the subsequent improved processes will contribute to changing the current culture within CHL, and subsequently release finance team resources to start working more closely with managers across the company with a focus on adding value.

Documents

Cornwall Housing Limited Agenda No: 10 Finance and ... · Structural Internal 21 8 38.10% ... Complaints Avoided 8 Assets 7 ... requirements of the H&S Gap Analysis are fully addressed