Tai Ceredigion Business Plan 2018-2022

TAI CEREDIGION

BUSINESS PLAN 2018-2023

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Executive Summary

Steve Jones

Group Chief Executive Tai Ceredigion

Karen Oliver

Chair Tai Ceredigion

In Tai Ceredigion’s tenth financial year of operation we continue to ensure that our business planning is underpinned by sound understanding of the continually changing political, economic and social environment.

As a Board we continue to work with the independent Tenant Monitoring Group and value their input and scrutiny in ensuring that what matters to our customers informs our business planning and improvements to services performance.

Our vision is to be a first class bilingual landlord and employer that puts tenants first, provides quality homes and benefits communities and the local economy. This commitment means that we recognise different housing needs, the benefits of building strong resilient communities and that working in partnership and collaboratively will help improve and expand outcomes. As an organisation our planning and delivery is built on a foundation of strong governance, financial stability, improved efficiency and value for money.

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In April 2018, local homelessness charity, The Care Society, joined Tai Ceredigion as a subsidiary company in a new group structure; building upon the foundations of the formal strategic alliance which has been in place between the two organisations since 2011.

Tai Ceredigion has also recently agreed to build upon the existing housing and maintenance partnership with Mid-Wales Housing Association by embarking on a collaborative working project. This will investigate options for increased regional collaborative working including shared services, group structure and merger options. This major project will closely link in to regional housing collaboration on homelessness between Ceredigion and Powys Councils and other north and mid-Wales Councils and RSLs. We are continuing to invest in our existing homes and to acquire development sites within Ceredigion and nearby counties. Where possible we use our own in house trades team, MEDRA, who are now also building new homes; and we continue to use local contractors.

This is an additional way of putting investment back into our local communities.

We are always looking at ways to improve how we work and our ongoing commitment to staff development and a healthy workforce helps us do this.

We continue to look to the future and will take opportunities that present themselves where they make sound business sense.

Steve Jones - Group Chief Executive, Tai Ceredigion Karen Oliver - Chair, Tai Ceredigion

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Executive Summary Working with Tai Ceredigion, an organisation with shared cultural, social and community values, is an opportunity to expand our existing community support and homelessness services. Together with Tai Ceredigion we aim to work collaboratively and build on strong strategic links with organisations from across the public private and third sector and at a local, regional and national level.

Guy Evans

Executive Director The Care Society

Rob Gray

Guy Evans - Executive Director, The Care Society Rob Gray - Chair, The Care Society

Chair The Care Society

The Care Society is an established and well-known local charity with offices and staffing delivering support and homelessness services throughout Ceredigion and rural mid-Wales. We have worked hard to develop and enhance flexible services that help achieve our charitable objectives and deliver public benefit. As a regional charity driven and dedicated to promoting social inclusion, our services help vulnerable people of all ages and from all backgrounds.

We always endeavour to be a progressive organisation with the requisite skill set, enterprise and desire to take the organisation forward and develop services to meet the changing needs of vulnerable people in the community.

Joining Tai Ceredigion as a subsidiary company in a new group structure will provide a sound base from which to improve the Care Society’s governance and operational infrastructure. It will also enable us to implement efficiencies and better ensure financial sustainability.

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Overview - The Organisations Tai Ceredigion

is a not for profit housing association which was created to receive the housing stock of Ceredigion County Council.

The transfer of stock took place on 30th November 2009. As with all Registered Social Landlords (RSLs) in Wales, it is registered with and regulated by the Welsh Government. The Association was formed for the benefit of communities in areas in which the Association owns or manages housing stock. Tai Ceredigion is also registered under the Co-operative and Communities Benefit Societies Act 2014 with charitable rules.

The registered office is Unit 4, Pont Steffan Business Park, Lampeter. However it also operates from satellite offices in Aberystwyth and Cardigan.

From April 2018, Tai Ceredigion will become the parent of a group structure with a local homelessness and support charity, The Care Society, as the subsidiary. This will enable us to continue and further the partnership work the two organisations have been involved in since 2011.

The Care Society

is an established provider of housing, homelessness and support services in mid Wales.

Our volunteers and staff work within projects which include: • The only night shelter provision in central Wales • Emergency accommodation with supported unit for care leavers / vulnerable young people • A Social Lettings Agency and Bond Scheme for the private rented sector • Ceredigion’s largest support team working with single people, families, disabled and homeless clients • A county wide Befriending and Learning Disabilities support service • A charity shop and mobility scheme All our services underline our mission and objectives to: • Support people in realising their full potential

2,272

rented homes

690 garages

150

123

staff including MEDRA (direct labour force)

leaseholders

• Build stronger communities by promoting social inclusion for the public benefit and by preventing people from becoming socially excluded by reason of homelessness • Provide housing and accommodation options While our services are based on need, we are conscious that they should all be financially sustainable. Working with Tai Ceredigion is an opportunity to improve our infrastructure, services and financial sustainability, and further our charitable aims.

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sheltered schemes

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Strategic Priority

1

“To be an excellent bilingual landlord which involves its tenants and customers at all levels with emphasis on tenancy sustainment and continuous improvement.�

Resources

Actions

Staff Volunteers Training Welsh lessons

Become trusted partner with DWP Prepare for the Renting Homes Act Grow Cynnal, our tenancy sustainment team

Preparation for Universal Credit

Develop care related services and support

Review voids and bad debts Increased service user involvement Collaboration with other third sector organisations

Increase bilingual services

Outcomes Improved communication Tenancy sustainment and satisfaction

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2

Strategic Priority

“To maintain existing, and increase the number of, quality homes within sustainable communities.�

Resources

Actions

Use of land banks Social housing grant Experienced staff

Implement rent to own/ shared ownership Improve estate management Maintain WHQS Investigate innovative housing

Grow the social lettings agency

Promote the new community benefit fund

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Outcomes Review existing leases

Reduction in homelessness Communities where people want to live Help reach Welsh Government 20,000 homes target

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Strategic Priority

3

“To be a financially sound and viable business, that conducts its affairs with honesty, integrity and strong governance.�

Resources

Actions

Qualified, experienced staff Self evaluation process

Compliance with new GDPR

Policies and procedures New code of governance compliance

Full 5 year budget and 30 year financial business plan Improved procurement Well governed group structure

Internal financial controls checklist compliance

Fit for purpose boards

Outcomes Regulatory compliance Evidence of a going concern for stakeholders Value for money

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Strategic Priority

4

“To be an employer of choice that provides local employment opportunities, training and work placements.�

Resources

Actions

Mentors/staff time Group training Specific budgets

Employ more apprentices Work with Ceredigion Training Grow both organisations Increase health and wellbeing of staff New Welsh language initiatives Provide work experience opportunities/volunteering

Outcomes Local employment opportunities Safe, enjoyable working environment Bilingual workforce

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Risk Management

Catastrophic

5 25

50

75 100 125

Major

4 16

32

48

64

80

Significant

3

9

18

27

36

45

Minor

2

4

8

12

16

20

Negligible

1

1 1

2 2

3 3

4 4

5 5

Likely

Very Likely

Risk score calculation:

A risk appetite is agreed, through the documenting of a “Target Risk” score for each individual top risk by the Board of Management and is reviewed via our top risks register at each meeting. Where a top risk is reviewed and found not to be within our risk appetite, action will be taken to put in place further controls, or to seek further assurance that the identified controls are operating effectively.

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Risk Matrix

Possible

Government Policy/Legislation Economic/Financial Environment Demographic Change Market Forces Major Works Programmes/Developments Natural Hazards Fraud and Error Information Technology

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Mitigated Risk

Unlikely

• • • • • • • •

Risk Appetite

Remote

As a complex organisation, the group recognises that it faces risks from a wide variety of sources including:

Unmitigated Risk

Impact

The group has a risk management strategy ensuring we achieve our strategic priorities whilst reviewing the challenges and risks which may be encountered. Using a risk map the group identifies the changes in internal and external factors that may affect the likelihood of a significant risk impacting the organisation. The risk mapping process is fully embedded within business planning and operational arrangements and is complemented by a risk register, split into categories of financial, governance and service risks.

Impact2 x Likelihood

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Likelihood

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Resources Tai Ceredigion’s five year budget is characterised by capital spend on maintaining the Welsh Housing Quality Standard on existing stock, along with our most ambitious development programme to date of just over 100 properties. This capital expenditure will be funded by our existing £35m facility provided by Barclays bank, alongside social housing grant provided by the Welsh Government.

Budget Assumptions yy Rental income has increased in accordance with Welsh Government policy to be within the target rent. yy Voids are assumed at 2%, bad debt between 1.5% and 3% of rental income over the five years as per the expectations of the results of Welfare Reform and especially Universal Credit. yy Operational costs have been fully reviewed and costed for. yy Interest rates on existing LIBOR facilities have been assumed at 1.5% for 2018/19 rising to 5% for year five. yy Tai Ceredigion has assumed that there will be no property sales. yy The five year budget is incorporated into the Association’s 30 year financial business plan and stress-tested for changes in assumptions or risk effects and impacts.

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Statement of Comprehensive Income 2018/19

2019/20

2020/21

2021/22

2022/23

Budget

Forecast

Forecast

Forecast

Forecast

£000

£000

£000

£000

£000

11,873

12,153

12,479

12,769

13,166

Operational costs

(3,849)

(3,943)

(4,060)

(4,181)

(4,305)

Repairs & Maintenance

(3,178)

(3,277)

(3,379)

(3,485)

(3,594)

Other spend

(2,948)

(2,969)

(3,233)

(3,499)

(3,711)

1,898

1,964

1,807

1,604

1,555

Interest receivable and other income

632

640

687

710

733

Interest payable and similar charges

(1,452)

(1,625)

(1,810)

(2,006)

(2,073)

1,078

979

684

308

216

Turnover Net rent & service charges

Operating Activities

Operating Surplus / (Deficit)

Surplus / (Deficit) for the Year

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Statement of Financial Position 2018/19

2019/20

2020/21

2021/22

2022/23

Budget

Forecast

Forecast

Forecast

Forecast

£000

£000

£000

£000

£000

56,003

60,701

64,245

66,081

65,923

802

803

812

831

856

Debtors

17,195

13,332

9,440

5,421

2,223

Creditors: Due within one year

(4,443)

(4,444)

(4,444)

(3,230)

(2,429)

Net current assets

12,752

8,888

4,996

2,191

(206)

(59,248)

(59,104)

(58,080)

(56,822)

(54,076)

10,309

11,288

11,973

12,281

12,497

10,309

11,288

11,973

12,281

12,497

Fixed Assets Housing properties less depreciation Other fixed assets

Current Assets

Creditors: Due after one year Total

Reserves

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Cashflow Forecast 2018/19

2019/20

2020/21

2021/22

2022/23

Budget

Forecast

Forecast

Forecast

Forecast

£000

£000

£000

£000

£000

Surplus

1,078

979

684

308

216

Add back depreciation

2,662

2,714

2,980

3,248

3,461

Add back amortisation

(238)

(239)

(278)

(294)

(310)

Total

4,768

3,454

3,386

3,262

3,367

Capital works programme

(5,257)

(4,911)

(4,972)

(5,132)

(4,343)

Development costs

(5,464)

(3,732)

(2,750)

(2,354)

(859)

Other capital costs

(162)

(130)

(134)

(138)

(142)

(10,883)

(8,773)

(7,856)

(7,624)

(5,344)

1,600

1,600

1,600

1,600

1,600

591

0

0

0

0

3,924

3,720

2,870

2,762

377

Opening balance loan account

(20,000)

(23,924)

(27,644)

(30,514)

(33,276)

Closing balance loan account

(23,924)

(27,644)

(30,514)

(33,276)

(33,653)

Operating Cashflow

Capital Expenditure

Total

Other income & expenditure WG dowry Other grants

Funding Requirement

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Statement of Comprehensive Income 2018/19

2019/20

2020/21

2021/22

2022/23

Budget

Forecast

Forecast

Forecast

Forecast

£000

£000

£000

£000

£000

Rent

339

348

355

361

367

Grant

641

641

641

640

639

Other

162

169

175

182

189

Staff costs

(587)

(589)

(591)

(593)

(594)

Premises costs

(393)

(397)

(402)

(407)

(412)

(35)

(34)

(23)

(21)

(21)

Project overheads/other costs

(112)

(112)

(113)

(113)

(112)

Operating Surplus/(Deficit)

15

26

42

49

56

(12)

(12)

(11)

(10)

(10)

3

14

31

39

46

Turnover

Operating Costs

Office costs

Interest payable and similar charges

Surplus/(Deficit) for the year

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Statement of Financial Position 2018/19

2019/20

2020/21

2021/22

2022/23

Budget

Forecast

Forecast

Forecast

Forecast

£000

£000

£000

£000

£000

366

352

338

324

310

46

38

30

23

19

Debtors

159

194

245

303

340

Creditors: Due within one year

(60)

(50)

(50)

(50)

(50)

99

144

195

253

290

(295)

(283)

(272)

(261)

(250)

216

251

291

339

369

216

251

291

339

369

Fixed Assets Housing properties less depreciation Other fixed assets

Current Assets

Net current assets Creditors: Due after one year Total

Reserves

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Cashflow Forecast 2018/19

2019/20

2020/21

2021/22

2022/23

Budget

Forecast

Forecast

Forecast

Forecast

£000

£000

£000

£000

£000

1,143

1,157

1,170

1,182

1,195

(1,127)

(1,132)

(1,128)

(1,133)

(1,139)

16

25

42

49

56

23

23

21

21

18

(12)

(12)

(11)

(10)

(10)

11

11

10

11

8

(13)

0

0

0

0

(13)

0

0

0

0

50

86

138

198

262

Opening cash 31/03/18 - £36,000 Operating Income Operating Expenditure

Operating surplus/(deficit) Add back depreciation Interest payments

Total Investing Activities Capital expenditure

Total Closing balance on bank account

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Key Performance Indicators To complement our strategic priorities, the group has a suite of Key Performance Indicators to monitor performance. Some of the main KPIs and targets for 2018/19 are listed below: Tai Ceredigion

The Care Society

Target

Target

Current Tenant Rent Arrears

1.2%

5%

Percentage of Stock Turnover (per year)

10%

10%

Call Centres - Calls Answered

98%

N/A

97.5%

N/A

69

N/A

Sickness Absence

3.9%

4%

Services Available Through the Medium of Welsh

100%

100%

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14

KPI

Repairs - Jobs Completed Within Target - Emergency (24 Hrs) Average Energy Efficiency of Social Housing Stock (SAP Rating)

Average No of Days to Relet General Needs Property

These KPIs are monitored by both Boards and Executive Teams and are supported by operational performance indicators managed by our Operational Management Team. taiceredigion.cymru

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Tai Ceredigion Parent Board

Karen Oliver

John Jenkins

Chair

Stephen Cripps

Vice Chair Co-optee

Peter Saunders

Independent

Peter Deakin Tenant

Cadwgan Thomas

Independent

Catherine Shaw Tenant

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Independent

John Rees Co-optee

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Cllr Catrin Miles Council Nominee

Cllr Dafydd Edwards Council Nominee

Cllr Lynford Thomas Council Nominee

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The Care Society Subsidiary Board

Catherine Shaw

Peter Saunders

Stephen Cripps

John Rees

Anthony Hearn

Robert Gray

Charles Symons

Tony Kitchen

Vice Chair

Chair

Sealing of the Documents

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The Executive • Graduated at Sheffield Hallam University with a BA (Hons) degree in Housing Studies • 35 year career in housing • Appointed Tai Ceredigion’s first CEO in 2009 • Guided TC through stock transfer from Ceredigion County Council • Former Group Director of Community Services at Pennaf Housing Group • Voluntary member of Digartref (homelessness) Steve Jones Charity on Ynys Mon since 2009 Group Chief Executive • Fluent Welsh speaker Tai Ceredigion

Eleri Jenkins

Director of Housing and Support

• 35 years of experience in all aspects of housing management • Past experience in local authority and with Cymdeithas Tai Cantref • In post since stock transfer in 2009 • Respected housing professional in west Wales and Fellow of the CIH • Leads on tenant involvement and participation • Fluent Welsh Speaker

• Over 20 years housing experience • Degree in Building Technology and Management • In post since stock transfer in 2009 • Planned, managed and successfully oversaw completion of WHQS works

Llŷr Edwards

Director of Property Services

• Currently leading on TC’s development plans • Fluent Welsh Speaker

• 10 years Public Sector Finance experience • Chartered Accountant • Transferred from Ceredigion County Council to Tai Ceredigion • Appointed Director of Corporate Services in March 2016

Kate Curran

Director of Corporate Services

• Trustee of Age Cymru Ceredigion • Active Welsh learner

• 18+ years experience in Housing and Support • MSc Management (Social Enterprise Innovation and Creativity) • Trustee of Tir Coed

Guy Evans

• Fluent Welsh Speaker

Executive Director The Care Society taiceredigion.cymru

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