Download pdf - Business Plan 2016 to 2021 Newark and Sherwood Homes Limited · System, to reflect the changing needs of both the customer and the business since the introduction of the new Management

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.

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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

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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

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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.

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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.

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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

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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

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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

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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.

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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


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.


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



Comprehensive performance

mechanisms.

As above. None required at this

time.

Continued

management support and focus


options for action.

Comprehensive risk management mechanism.

Risk Management Strategy. Proactive risk planning and

management Regular review of company



23


consideration


activity

risk appetite

Strong internal and external

audit reports

Audit reports.

Audit programme.


time.


options for action.

Structured external Challenge

External accreditations maintained.



Innovative

FIT. National contribution



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


Focus on core business.

Performance Management

Framework. Compliance and delivery of

Delivery Plan. High satisfaction.

Low level of complaints.


time.


options for action.

Strong Strategic Planning. Improvement planning Process.

Internal Audit report.



24


consideration


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


consideration


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


consideration


activity

Company Property Ownership. Land and property

acquisition. Growth Strategy.

Efficiency Strategy.

Performance culture.


time.


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.


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


consideration


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


consideration


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


applicable

Option for further

consideration


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.


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


applicable

Option for further

consideration


activity

environment

increasing calls on services, customer

expectations and

demands.

Staff Development programme.

Increased interest

rates.

None. Review Treasury

Management Practices.


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


applicable

Option for further

consideration


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.


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


applicable

Option for further

consideration


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.


Changes to Employment

legislation – parental leave.

Revision of Maternity and Paternity Policy.


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


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


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


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


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






Undertake research and

development to progress


41


date and position

statement

prioritised areas for

business growth





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


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


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


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


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


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


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


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


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


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%


Inflation for non-pay (repairs & maintenance Economic 2.50% 1.00% 1.00% 1.00% 1.00% 1.00%


Inflation rate for operating income Economic 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%


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


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


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


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


Indicator Frequency


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


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


COR_PI.22 % of tenants satisfied with supported housing services 89% Annual


COR_PI.23 % of general needs tenants satisfied with landlord / overall service

83% Annual


COR_PI.24 % of supported housing tenants satisfied with landlord / overall service

89% Annual


COR_PI.25 % of general needs tenants satisfied with the neighbourhood

81% Annual


COR_PI.26 % of supported housing tenants satisfied with the neighbourhood

91% Annual


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


Indicator Frequency


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


Indicator Frequency


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


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


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


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