YHN Board 28 November 2017

YHN Limited Tuesday 28 November 2017 at 5.00 pm YHN House, Benton Park Road, Newcastle upon Tyne NE7 7LX Contact Officer: Jill Davison

– Tel: 0191 278 8624

Email: jill.davison@yhn.org.uk

AGENDA Page No 1.

Welcome and Apologies for Absence

2.

Declarations of Interests

3.

Chair's Items

4.

Minutes of 19 September 2017 / Notes of Shadow Board 8 September 2017

1 - 14

5.

Assurance from Finance and Performance Committee 7 November 2017

15 - 22

6.

Assurances from Subsidiaries

23 - 34

  7.

Asfaleia 27 July 2017 Asfaleia 9 November 2017

Repairs and Maintenance Review

35 - 40

Assets and Development Director For Information 8.

Officer Delegated Decisions

41 - 46

9.

Board Forward Plan

47 - 50

Your Homes Newcastle Limited. Registered in England and Wales Registration Number 5076256 Registered Office: Newcastle Civic Centre, Barras Bridge, Newcastle upon Tyne NE1 8PR. A company controlled by Newcastle City Council

To exclude the press and public during discussion of remaining agenda items because of the likely disclosure of confidential information. The definitions of what is considered confidential are contained within Section 16 of the Company’s Standing Orders.

Protect - not for publication 10.

Confidential Minutes of 19 September 2017

51 - 52

11.

Managing Director's Report

53 - 60

Managing Director 12.

Articles of Association Review - Report from Wardhadaway

61 - 76

Company Secretary 13.

NCC Rent and Service Charges

77 - 82

Finance and Commercial Director For Information 14.

Safeguarding update from Group Audit and Risk Committee

83 - 96

15.

Chair Delegated Decisions

97 - 98

Date of Next Meeting: Tuesday 19 December 2017 at Mansion House

2

Board 19 September 2017 (5pm to 6.55pm) Present: J McCarty (Chair), V Dunn, K Lowry (until 6.45pm), M Page, E Snaith (from 5.15pm), H Simpson, M Talbot In attendance: A Baker

Governance Support Officer

J Davison

Company Secretary and Group Governance Manager

T Drury

Managing Director

M Foreman

Customer Services Director

D Langhorne

Assets and Development Director

J Ritchie

Finance and Commercial Director

A Senior

Head of Fairer Housing, NCC

S Bramwell

Asfaleia Board nominee

R Taylor

Asfaleia Board nominee

D Hall

Asfaleia Board nominee

581

Welcome and Apologies for Absence

Apologies were received from J Boaden, R Clark, L Doherty, D Huddart and P Scope. At the request of J Davison, members agreed that J McCarty would chair the meeting in the absence of J Boaden.

582

Declarations of Interests

Those councillors present declared an interest in all matters pertaining to Newcastle City Council.

583

Chair’s Items

Members were asked and agreed to a list of contact information for the Executive Team and Board being shared.

584

Minutes of 8th August 2017

The minutes were agreed to be a correct record and were signed accordingly. T Drury added that – in relation to minute 575 on tenancy agreement changes – the proposed changes had been approved at Cabinet yesterday.

585

Matters Arising and Action Log

The action log was received and agreed, members were informed that Company Secretary details were updated at Companies House and that the Slavery and Human Trafficking Statement had been uploaded to the YHN public website.

586

Appointment of Chair and Vice Chair

The report sought formal approval for the appointment of the Chair and Vice Chair, having received written approval from NCC. It was noted that outside of normal business Jo Boaden will appear as Jo Totton on Companies House and related documents.

RESOLVED, the Board agreed: • •

To appoint Jo Boaden as Chair of YHN for a term of three years To appoint Joyce McCarty as Vice Chair for a term of one year

587

Appointment of Asfaleia Limited and Abri Trading Limited Directors

J Davison presented the report, seeking approval from members to appoint directors to the subsidiary companies. It was added that whilst Abri Trading Ltd. will no longer hold separate meetings, its business will feature at the YHN Board from 28 November.

RESOLVED, the Board agreed: •

• • •

To accept the retirement of the following Abri Trading Limited directors: o Tony Moore o Phil Dibbs o Ammar Mirza The appointment of the following as Abri Trading Limited director: o Malcolm Page The re-appointment of the following Abri Trading Limited directors: o Joyce McCarty o Paul Scope To accept the retirement of the following Asfaleia Limited directors: o Nitin Shukla o Alison Washbourne o Gordon Burns o Rachel Tshibuyi

•

588

The appointment of the following Asfaleia Limited directors: o Stephen Bramwell o Dennis Hall o Rachel Taylor o Helen Simpson o Doreen Huddart Committee Terms of Reference and Membership

J Davison introduced the report, which contained amendments to committee terms of references following a discussion at the 8 September meeting. It was noted that whilst the fifth appendix outlines the membership for Asfaleia Board and committees, these appointments can be discussed with the Chair during annual appraisals.

RESOLVED, the Board agreed: •

•

The terms of reference for o Group Audit and Risk Committee o Finance and Performance Committee o Remuneration and Nominations Committee o Customer Service Committee The membership of committees for 2017/18

589

Schedule of Meeting Dates

J Davison introduced the report, which outlined the YHN Board, Asfaleia Board and committee dates scheduled for the remainder of 2017 and up to the AGM in September 2018. These had previously been presented to the Board on 8 September.

Members were informed that there may be a conflict with the January Asfaleia Board, date and it was proposed that it is discussed further at the October meeting of Asfaleia Board.

It was highlighted that the two strategic away days in December and June intend to include both YHN and Asfaleia Board members. J Davison added that plans for induction and tours of the city are underway and are likely to take place late October or early November.

RESOLVED, the Board agreed: •

The meeting dates for 2017/18

590

Independent Remuneration Panel Report

J Davison introduced the report, seeking approval on the recommendations put forward by the Independent Remuneration Committee, which had previously been discussed and debated at the Board on 8 September.

E Snaith joined the meeting at 5.15pm.

RESOLVED, the Board agreed: • • • • • •

591

To increase the level of allowance for the Chair of YHN to £12,000; To increase the level of ‘basic’ allowance for Independent Board members to £3,000, including Asfaleia members; To maintain the level of allowance for Chairs of YHN committees at £1,000, including Asfaleia chair; To implement the new allowances from the Annual General Meeting in September 2017; If requested, to consider a further strategic review of YHN allowances within the first two years of operation of the new Board; Keep under review the remuneration of Customer Service Committee members Presentation by Executive Team

Members received a presentation from the Executive Team covering strategic and operational issues linked to the three components of the YHN statement of purpose - ‘delivering great services, enabling people to thrive in great communities, supporting a great city’.

592

Exclusion of Press and Public

RESOLVED – that in accordance with the organisation’s Access to Information provisions, the press and public were excluded from the meeting during the consideration of all further agenda items.

………………………………………..

J Boaden Chair 28 November 2017

Notes of Shadow Board 8 September 2017 (9.30am to 11.50am) Present: Jo Boaden (Chair nominee), R Clark, L Doherty, V Dunn, D Huddart, J McCarty, M Page, P Scope, H Simpson, E Snaith In attendance: A Baker

Governance Support Officer

J Davison

Company Secretary and Group Governance Manager

T Drury

Managing Director

M Foreman

Customer Services Director

D Langhorne

Assets and Development Director

J Ritchie

Finance and Commercial Director

SB/1 Welcome and Apologies for Absence Apologies were received from K Lowry and M Talbot.

SB/2 Declarations of Interests Those councillors present declared an interest in all matters pertaining to Newcastle City Council.

SB/3 Vice Chair appointment Jill Davison introduced the report which proposed the appointment of J McCarty as Vice Chair of the Board. The one year appointment would be formally approved at the Board meeting on the 19 September.

D Huddart questioned the change of thinking not having an independent member as the Vice Chair. T Drury agreed that there had been a shift in thinking and YHN now had a different relationship with the council, working more in partnership. The proposal to appoint a council member as the Vice Chair was viewed to be positive.

E Snaith commented that when ALMO’s were first set up they were viewed as completely separate from the host authority but now we are operating in a very different landscape.

M Page commented that having a senior councillor as the Vice Chair was a very sensible idea and fully supported the proposal.

RESOLVED, the Shadow Board agreed: To endorse the proposal for formal agreement at the 19 September YHN Board.

SB/4 Committee Terms of Reference Jill Davison introduced the report which set out the proposed terms of reference for the four new committees. A discussion was held on each committee in turn.

Remuneration and Nominations M Page questioned whether the Chair of Audit and Risk should sit on the committee, as in other organisations it was never common practice to have the Audit Chair on the committee.

R Clark noted he was proposed to be the Chair of Audit and Risk and did not find a conflict with his membership.

J Davison commented that this committee would only deal with the remuneration of the Managing Director and would be primarily concerned with nominations and succession planning of Board members, and a membership of the Chair, Vice Chair and committee Chairs would be the preference.

V Dunn commented that the Chair of Audit and Risk being involved in nominations was a sensible idea as they will have the knowledge of the whole organisation to ensure we have the right people on the board and future membership has the right balance of skills.

L Doherty questioned why the Chair of the Customer Services Committee was not included in the membership as this devalues the role. T Drury noted that the members of the Customer Service Committee would be tenants and not members of the Board so could not have the responsibility to deal with nominations for Board members. The role is not being devalued but is a different role to the other committees.

R Clark questioned why the Managing Director was not the lead officer for the committee as they have responsibility for the whole organisation, and risks to the organisation were not just financial risks. T Drury responded in agreement that she was ultimately accountable for the whole organisation and felt she was held accountable at Board meetings, and did in fact attend all the Audit Committee meetings.

E Snaith questioned where issues such as the People Strategy and equality and diversity would sit within the committee structure. J Davison noted that the Finance and Performance Committee would monitor the performance of the delivery plan which included sickness targets. T Drury noted that an annual report regarding HR would be brought to the Board as well.

M Talbot submitted questions prior to the meeting due to her absence. Her question related to where redundancies would be agreed. J Davison noted that staff redundancies should be dealt with by Executive Team unless they are over ÂŁ100k and becomes a Board decision, the current governance handbook does reflect this, the previous Chair had in the past called a Remuneration Committee meeting to make the decision when it could just have been a Chairs delegated

decision as the decision was needed in advance of a Board meeting date. The view was it didn’t need to sit with the Remuneration and Nominations Committee the current delegations work when completed correctly.

E Snaith raised the point that we should perhaps think about redundancies of key staff being a Board decision as well not just a ÂŁ100K trigger point. This will be reviewed.

P Scope commented that in the working group recommendations it was clear that the Customer Service Committee was different to the other committees of the Board, and as such the Chair of Customer Service Committee should not be involved in the same responsibilities as the other committee chairs. J Davison noted she had written this report naming the four committees as committee of the Board and had not appreciated the point about the Customer Service Committee being a different governance mechanism and would reflect this in future reports.

Audit and Risk Committee It was agreed that J Ritchie would remain the lead officer for this committee and T Drury would attend all meetings.

V Dunn questioned what the committee remit protocol was. J Davison explained this was detailed in the governance handbook and allowed committees to ask other committees to explore an issue if they felt it was not covered within their own terms of reference.

R Clark asked whether matters involving legal action would be reported to the committee. T Drury confirmed this is reported direct to the Board.

M Talbot submitted questions prior to the meeting due to her absence. Her question related to there being no mention of focus on value for money. J Ritchie explained that the Board approved the VFM strategy. As part of the scrutiny of the budget and delivery plan development and delivery, VFM will be an integral element so the view is that this is covered implicitly by the terms of reference.

M Talbot also questioned whether the committee can suggest areas of concern that should be examined by both internal and external audit. J Ritchie commented that para 2.12 covers internal audit as the committee agrees the work programme so can contribute to it, and 2.14 gives the Committee the ability to raise concerns about the effectiveness of the external auditors. In terms of matters raised by external audit, given this is mostly to do with the financial statements and concerns over internal controls, risk etc. and paragraphs 2.1-2.5 and 2.8-2.9 covered this.

Finance and Performance Committee J Ritchie suggested that this committee should have value for money added more explicitly to the terms of reference.

E Snaith questioned where treasury management and reserves were agreed. J Davison commented that these would be matters reserved for the Board and would not be delegated to a committee. It was also noted that now the governance

review was complete and as the new structure was being embedded the governance handbook would be refreshed.

Customer Service Committee M Talbot submitted questions prior to the meeting due to her absence. Her question related to the process for appointing the nine tenant members.

M Foreman updated the Board that the Customer Involvement team have completed wide ranging recruitment advertising with Homes and People, social media and at tenant events. The process will include a short expression of interest and an informal conversation with those interested and Lisa Doherty the Board member representative on that committee has agreed to be involved.

E Snaith asked how we were considering communities of identity, interest and geography. M Foreman replied that targeted recruitment would be completed to try to get a good mix of demographics. Geography hadn’t been considered so he would feed this back to the team.

M Talbot also commented that it was not clear how the agenda and work programme would be agreed/delivered. J Davison responded that as with the other committees the lead officer will work with the Chair of the committee and in this instance the whole committee will work together to decide key areas and priorities that they wish to look at. L Doherty suggested that they have some input into a quick win area that they can see the outcomes of their input quickly.

M Talbot also commented that complaints are part of a performance management framework and likely to be reviewed by the Finance and Performance Committee, asking how we will avoid duplication. J Davison responded that the role of this committee is to look in more depth at the complaint trends and how we learn and use feedback in improvement plans, so shouldn’t create duplication with Finance and Performance Committee which will look at the complaint numbers and % purely as an indicator against a target %.

The remuneration of the tenants involved in the Customer Service Committee was discussed at this point ahead of the Independent Remuneration Panel Report item.

J Boaden commented that as discussed this committee is not part of the formal Board structure. The remuneration of Board members is there to recognise the responsibilities they have as non-executive directors of the company, and the tenants on this committee will not have this responsibility. The committee has been established to encourage tenants to get involved feed their views into the decision making process, but by remunerating those involved it may skew the input they have. T Drury added that people may be motivated to get involved for the wrong reasons, and that lots of people get involved with lots of things across the City and don’t get paid. Being valued and appreciated is not just about remuneration and we could perhaps look at some other incentives. The Newcastle Independent Tenant Voice members are not remunerated and it was felt that we should remain consistent.

It was agreed to not remunerate the Customer Service Committee members but keep under review.

E Snaith questioned if there was a Board member representation on the Joint Consultative Committee with Unions. T Drury noted this was under review whether Board members needed to attend an operational committee. J McCarty noted that the council have a two tier structure with councillors attending a strategic meeting and officers attend the operational one.

RESOLVED, the Shadow Board agreed: To endorse the proposed terms of reference once amended for formal agreement at the 19 September YHN Board.

SB/5 Schedule of meeting dates The Chair noted that the meeting dates have been scheduled for the forthcoming year and all members were asked to note these in calendars.

RESOLVED, the Shadow Board agreed: To endorse the proposed dates for formal agreement at the 19 September YHN Board.

SB/6 Independent Remuneration Panel Report Jill Davison introduced the report which included the findings of the Independent Remuneration Panel Report, as well as information from Campbell Tickell reading payment to Asfaleia Board members. The issue with regard to remuneration of the Customer Service Committee had been dealt with earlier in the agenda.

D Huddart questioned how YHN level of payment compared to other ALMOs. This information was considered by the panel and YHN was average.

P Scope questioned whether other Charity board trustees were paid, it was noted that there was a mix across the sector, and without payment there was a struggle to recruit the right level of skills and experience.

RESOLVED, the Shadow Board agreed: To endorse the proposals for formal agreement at the 19 September YHN Board.

SB/7 Introductions to YHN J Boaden began by explaining the purpose of the session was to discuss how to operate as a Board, with four new members, she wanted a discussion around working together in challenging times. Following the Grenfell fire, obviously safety issues are important but this highlighted more than ever the strength of the tenants voice. Financially, the economic climate is difficult and with Brexit there is uncertainty around skills and the economy.

The process of recruitment to the YHN Board ensured we have a skilled and knowledgeable Board and she was very enthused about the people sat round the table. We need to ensure the running of the Board is professional and we are all sat at the table ready for the discussions having read the papers. The Board

needs to be a fun place as well so members enjoy being here and come because they want to, make a worthwhile contribution and make a difference to the organisation. She asked Board members to think about what makes a Board work well and how they wanted to approach appraisals.

T Drury then spoke about the Executive Team; after she joined YHN in June 2016, the executive directors M Foreman and J Ritchie joined in January 2017, so a fairly new team. D Langhorne has been with the organisation the longest but agreed it feels like a new organisation, there has already been significant change.

The current Board set up is quite different to when she first arrived with large board room, microphones and lots of officers in attendance. The new board will hopefully have a change of atmosphere and have more discussion and debate, with less lengthy reports, more presentations with an executive summary and just the Executive Team in attendance. There must be a significant divide of strategic and operational issues, the Board work on the business and the Executive Team work in the business. There may sometimes be crossovers and there must be an open and honest relationship with no surprises for the Board.

We’d like to use the skills and experience of the board members more, which hasn’t been utilised as much as it should’ve been in the past, and the use of more task and finish groups to look at specific areas and then report back to the Board.

There’s lots going on in the business and the transformation programme is quite significant that will continue for at least two years. We’ve spent lots of time engaging with staff, looking at new ways of working and being more customer focussed. We’ve worked hard on building our relationships with NCC and these are much improved. There are a number of reviews under way with NCC and the outcomes of these will come to Board, these are repairs and maintenance and the contact/enquiry centres. We have recently been looking at services delivered in hubs and an example of delivering services differently, a pilot in the west end reduced the average wait for customers from 30 minutes to 12 seconds. We should be sharing these stories and we don’t get invited to speak at events but we need to do more of this to ensure we raise our profile.

T Drury discussed the three main objectives were to; - Improve the customer experience - Engage and enable staff - Be relevant, engaging and easy to do business with There had recently been lots of work completed on reviewing and changing the values and these will soon be launched to staff, these are - Be Ready - Be Amazing - Be Revolutionary - Be Energetic We now want to work with the Board to set the vision for 2020 and beyond.

Board member comments: D Huddart made four observations, we should be working in partnership more especially with the Ostara service and the hospitals/ambulance service, the R&M review is overdue, we should do more lobbying on social housing issues and the Board members need to see the grot spots of our properties not just the new properties.

J McCarty noted that as a Board we need to know the context of housing issues such as right to buy and rent freeze but our role is strategic and we shouldn’t get involved in operational matters. As a board we should speak with something useful to contribute and not repeat other comments. The change is apparent in the organisation, and whilst this has always been happening it has picked up pace recently. The Board should be digital first and look at digital solutions. Training is key on Board member role and responsibilities. The appraisal should be an opportunity to reflect on personal contribution and 360 degrees appraisals are useful to know what others think.

P Scope commented that there has been huge progress and that we need more debate, sometimes evident members haven’t read papers as questions are asked when the information is in the paper, and this stops debate about the key issue.

He agreed there should be digital and prefer short reports and presentations. We need to be more agile and less constrained by process or terms of reference, agreeing that 360 degree appraisals were good.

E Snaith commented that we need to agree a set of rules around ethics and confidentiality and not repeating what is said in meetings.

H Simpson commented that she is keen on appraisals and ensuring these are interactive but not onerous, both individual and collaborative. She also suggested a progress review on the governance review outcomes, did it work as planned?

R Clark suggest a set of 5 or 6 ground rules, spoken not really written down but to agree as a group; confidentiality and trust, respect each other and listen, not speak on every item, be strategic and not into the detail (this can be done outside of meetings).

M Page agreed the board should be strategic and not dragged into the detail.

R Clark shared why he had joined the board was as he thought YHN was a powerful organisation and could make positive contributions and change in the area.

L Doherty commented that whilst being a strategic board we mustn’t lose sight of the fact that our decisions affect peoples’ lives and we must always keep in mind the tenants who live in our properties.

The Chair summarised the discussion and thanked the board for their contributions.

Board member discussion at shadow board 8 December 2017

Key areas: You said Need to see “grot spots” as well as new developments

We did (Action) Included less desirable schemes in need of development on the bus tour 27 October

Should work more in partnership especially with the Ostara service

Currently working with Clinical Commissioning Groups, Council social workers, ambulance service

Should do more lobbying on social housing

NCC is the lobbying body, YHN contribute to areas where we can and engage in debate and discussion at range of events and conferences

Board should be digital first and look at digital solutions

To be incorporated into ICT programme plan for 2018

Training on board member roles and responsibilities is key

L&D plan options will be presented to Board 23 January

Appraisals opportunity to reflect on personal contribution, 360 degree appraisals useful

Appraisal options will be presented to Board 23 January

Set of ground rules should be developed; Ethics, confidentiality, trust, respect, listening, strategic not detail

Will be reviewed when Board Code of Conduct is refreshed

Be strategic but not lose sight of decisions affecting peoples’ lives always keep the tenants in mind

Should form part of the vision session at away day so inbuilt into all strategic decisions

Delivering great services, enabling people to live in great communities, supporting a great city

Your Homes Newcastle Board 28 November 2017 TITLE

Finance and Performance – Quarter two update

AUTHOR

Jon Ritchie, Finance and Commercial Director

COMPANY

Your Homes Newcastle, Abri Trading Ltd and Asfaleia Ltd

ACTION REQUIRED

For Discussion

SUMMARY

This report summarises the Group’s financial and non-financial performance at the end of quarter two. This information, together with a detailed presentation, was presented to Finance and Performance Committee on 7 November 2017.

DELIVERY PLAN OBJECTIVE

1. Keep the housing stock decent and neighbourhoods clean and safe.

2. Collect the rent and let properties efficiently 3. Promote health and well-being and support vulnerable people to enjoy independence.

STRATEGIC RISK REGISTER

NUMBER & TITLE

GR1: Ostara customer numbers are below expectations

LIKELIHOOD

3 (possible)

IMPACT

2 (moderate)

NUMBER & TITLE

GR2: Additional costs on YHN balance sheet from pension liabilities

LIKELIHOOD

4 (almost certain)

IMPACT

3 (significant)

NUMBER & TITLE

GR3: Brexit leads to greater financial uncertainty in the economy and increase in exchange rate, inflation and interest rate

LIKELIHOOD

3 (possible)

IMPACT

2 (moderate)

NUMBER & TITLE

GR4: Government welfare changes (Universal Credit roll out, LHA cap) makes furniture packs less affordable for our customers and clients

LIKELIHOOD

4 (almost certain)

IMPACT

3 (significant)

NUMBER & TITLE

GR9: External pressures arising from Government initiatives (including welfare reform, further role out of universal credit) result in worsening performance for rent collection and void loss.

LIKELIHOOD

3 (possible)

IMPACT

3 (significant)

NUMBER & TITLE

GR10: Internal failings within YHN result in performance targets or delivery of major programmes failing to meet the required level.

LIKELIHOOD

3 (possible)

IMPACT

2 (moderate)

FINANCIAL / VALUE FOR MONEY IMPLICATIONS

This report summarises our financial and non-financial performance for quarter two.

CUSTOMER IMPACT / VIEWS

Relevant customer impacts are detailed in the body of the report.

EQUALITY & DIVERSITY CONSIDERATIONS

There are no specific equality and diversity matters arising from this report

Your Homes Newcastle Finance and Performance – Quarter two update 1.

Purpose of the report

1.1

This report summarises the Group’s financial and non-financial performance at the end of quarter two.

1.2

Under the new governance arrangements, the detailed scrutiny for the group financial and non-financial performance takes place at Finance and Performance Committee, which met to consider the quarter two performance on 7 November 2017. This report is intended to provide Board with a high level summary of performance, together with the key findings from the Committee scrutiny.

1.3

Whilst the full suite of information provided to Committee is included within the background papers as a set of appendices, these are provided for information only. It is not intended that Board will discuss the information in detail.

2.

Background information

2.1

This paper sets out a summary of the financial and non-financial performance of the group at the end of quarter two. Annually, YHN Board approves the group’s budget and delivery plan, setting out the strategic targets for the housing management service provided to the council. Group strategic targets are set by NCC in consultation with YHN. In addition, Asfaleia Board agreed a set of measures that support YHN in achieving the strategic targets approved with NCC. Furthermore, Abri Board agreed a suite of measures relevant to its core activities.

3.

Finance update

3.1

At the end of quarter two, YHN Group recorded a surplus of £1,064k against a budgeted surplus of £596k, ahead of plan by £468k.

3.2

Financial performance to quarter two presents a mixed picture. There are shortfalls in our commercial and Ostara trading areas of £374k (including £245k of income lost when the Byker contract ended). This is outweighed by £757k of new income and underspent budgets across the Group.

3.3

Whilst the position to the end of quarter two is significantly ahead of the profiled budget, we expect the surplus by the year-end to fall broadly into line with the budgeted surplus of £1,243k. This is due to further pressure on Commercial income streams and the delay of some staff savings included in the budget (profiled for quarters three and four), which are being superseded

by the revised approach to Directorate restructures. The current year-end forecast is an adverse variance of £79k.

3.4

Additional detail is contained in the finance pack, included in the background papers as appendix one.

4.

Performance update – YHN

4.1

Performance has improved during quarter two. Four targets are now on track and reported as green. These are: • • • •

4.2

Spend against the Cabinet approved capital programme Percentage of repairs completed on time Collection of current rent Tenancy turnover

Three targets are reported as red, which are: • • •

Void rent loss (all stock) Void rent loss (excluding Walker multi storey blocks) Repairs and maintenance satisfaction

Spend against the repairs and maintenance budget is reported as amber.

4.3

A graphical summary of performance against these targets is included in the background papers as appendix two.

4.4

Finance and Performance Committee felt it was important that the Committee, and in turn the Board, are given assurance that action is being taken to address areas where performance is falling below the target level.

There was a detailed discussion at Committee of each target rated as amber and red. The presentation, included in the background papers as appendix five, identifies these actions, with some examples noted below in relation to the red indicators: Voids • • • •

Performance clinics are in place for monthly challenge sessions with managers Broader marketing and advertising of properties is underway Fast track referrals are in place with Shelter An end to end process mapping review of the voids process is starting this month

Repairs satisfaction • • 4.5

Customer checklist was introduced by Building and Commercial Enterprise (BCE) in October Performance concerns are raised at joint YHN-BCE Partnering Group meetings

In addition, Board should note that two target values have been changed since quarter one. The spend against the capital programme target has been changed to reflect the increase approved by NCC Cabinet. We have also

corrected a classification error within the repairs and maintenance budget, as the asbestos budget was incorrectly included within the overall repairs and maintenance budget. We have worked with NCC to remove the budget and have agreed with them a revised target value for the repairs and maintenance target.

5.

Performance update – Asfaleia

5.1

Asfaleia Board agreed 13 performance measures for the current financial year. Of these, five were targets with the remainder being operational performance measures. We have created a graphical summary of the five targets which is included in the background papers as appendix three.

5.2

Overall performance is balanced. Four targets reported as green and one as red. However, two of the green targets have seen a deterioration in performance. The green targets are: • • • •

Average rent arrears reduction Tenancy turnover in sheltered housing Tenancy sustainment from customers supported by Asfaleia services Customers successfully progressing to education, training or employment.

The void rent loss for sheltered housing properties is reported as red, with actions in place in line with the group voids target noted above.

5.3

We have updated the tenancy turnover target for the sheltered service having undertaken some additional analysis of the underlying data. We identified some tenancies incorrectly counted as tenancy turnover. These tenancies linked to the remodelling programme undertaken this year and last.

6.

Performance update – Abri

6.1

Abri Board agreed a set of performance measures, which were a mix of operational information with some overarching business health measures.

We have developed a graphical summary of the business health measures, which is included in the background papers as appendix four.

6.2

The measures of overall profitability of the Furniture Service and Palatine were set as targets, which are reported as red at the end of September.

Information and the actions arising are noted in the finance pack and the Committee presentation, and Board will be updated on the group Growth Strategy at the away day in December. However, in summary, the furniture service, especially in relation to external customers, has experienced a challenging period arising from the impact of Welfare Reform. Whilst the recent announcement that Local Housing Allowance changes will not be brought in to the social housing sector is positive, we are currently speaking to existing and potential customers to understand what this will mean for our rental business.

6.3

The two other measures, reported for information are: • •

Stock holding days, Number of furniture packs

6.4

Abri Board had also previously included a measure of time taken to deliver furniture to customers. As part of the scrutiny of this measure, we have identified that this measure is not as robust as first thought. Work is on-going to rectify this and an updated measure will be included in the quarter three report.

7.

Transformation

7.1

When setting the 2017/18 budget, Board agreed a transformation budget of £2.8m, with the expectation that this would span the next two financial years.

At the time of setting the budget, the precise allocation was not known as it was dependent on activities during 2017/18, notably the development of the Directorate structures. However, Board also agreed a set of criteria against which any use of the transformation fund would be assessed before approval

by Executive.

7.2

There has been minimal use of the fund to date, being limited to the redundancy costs associated with the payments team and strategic HR team. It is expected that the use of this fund will become clearer over coming months as the Directorate restructures are implemented and an update will be brought to the next Committee.

8.

Finance and Performance Committee Feedback

8.1

This summary report has incorporated the Committee’s request to include some examples of the work underway to address areas where performance is behind plan. It also requested that the following summary points be included in this report to give Board assurance over the level of scrutiny: • • • •

The Committee welcomed the open and transparent presentation of the information, allowing a full and frank discussion focusing on the areas where performance was below target Overall financial and non-financial performance is broadly on track, although there remain some pressure points The key areas of discussion were around voids and the impact of welfare reform on furniture rentals In a separate report, an overview of the 2016/17 HouseMark benchmarking data was presented. Committee thought that information was a useful tool and was reassured that the Executive Team and Assistant Directors are using this information, and the Committee recommended that the benchmarking data was used as part of a wider suite of information and metrics to inform YHN Strategic and Operational planning. It was also recommended that this presentation was made available to Board, which is included in the background papers as appendix six

•

In relation to the HouseMark data, the Committee recommended a deep dive analysis on one or two of the key results to ascertain reasons for resident dissatisfaction and critically what residents believed would result in a significant improvement in their satisfaction.

9.

Conclusion and recommendations

9.1

Board is recommended to note the contents of the report and the level of scrutiny undertaken at Finance and Performance Committee.

10.

Implementation

10.1 Finance and Performance Committee will receive the quarter three performance update in February 2018.

Background Papers The following background papers have been made available to Board members electronically • • • • • •

Appendix 1: Finance report Appendix 2: Group performance summary Appendix 3: Asfaleia performance Appendix 4: Abri performance Appendix 5: F&P performance presentation Appendix 6: HouseMark presentation

Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact Jon Ritchie by telephone on 0191 277 4317 or email jon.ritchie@yhn.org.uk

Asfaleia Limited 27 July 2017 (5.00 pm - 6.30 pm) Present: N Shukla L Stephenson D Huddart G Burns

(In the Chair)

IN ATTENDANCE M Foreman L Philliskirk L Forrest J Clifford R Burns R Clark S Halliwell K McMaster S Clarke S Reed C Mulley J Miller 35

Customer Services Director Assistant Director of Support Services Assistant Director of Finance, Risk Management and Resources Financial Controller Business Strategy Manager Care Services Manager Advice and Support Manager Young Peoples Service Manager Employability Manager Interim Company Secretary EY Democratic Services

APOLOGIES FOR ABSENCE Apologies for absence were received from A Washbourne and R Tshibuyi.

36

DECLARATIONS OF INTERESTS None.

37

MINUTES OF THE LAST MEETING DATED 20 APRIL 2017 The minutes of the meeting held on 20 April 2017 were approved as a correct record and signed by the Chair.

38

ACTION LIST REVIEW RESOLVED- that the action list be noted and updated accordingly.

39

2017 WORK PLAN Submitted: Asfaleia Ltd Work Plan 2017 (previously circulated and copy attached to Official Minutes) RESOLVED – the Work Plan be noted.

40

WOLFSON FOUNDATION APPLICATION It was noted that this item had been withdrawn from the agenda as the Wolfson Foundation had felt that the bid did not meet their criteria at this point in time.

Officers would continue to work to seek alternative ways of funding this scheme and would provide an update as and when future funding opportunities arise.

41

OSTARA SERVICE REVIEW Submitted: Report by Assistant Director Support Services (previously circulated and copy attached to Official Minutes) L Philliskirk introduced the report which outlined the three priority areas identified from the Ostara services review and presented an action plan designed to implement the recommendations which would provide a framework against which progress could be measured. Reports would be submitted to Asfaleia Board on a regular basis to ensure that the actions and time lines were being achieved.

M Foreman had presented the outcome of the review to the Chief Executive and Directors at Newcastle City Council (NCC). The presentation had been well received and NCC had been supportive of the review and the approach taken by YHN. NCC would work with YHN to identify and improve trusted referral routes via advocates to raise awareness and help grow the service, they had also offered links to new technology options.

The following issues/comments/queries were raised during debate: •

• •

• • •

In response to a members query in relation to the billing system, officers advised that work would be undertaken to move to the Northgate system for billing as this was in line with weekly rent payments and was more customer focused.

It was suggested that officers make links with community health staff including district nurses to raise awareness of the service.

Officers had had a very positive meeting with senior officers from the Clinical Commissioning Group (CCG) who had been interested in in the Ostara Service in terms of complementing the work of the CCG as a preventative service.

It was expected to take 18 months to stabilise the service and up to a further 18 months – 3 years to develop partnerships, trial the IT and to increase business and contracts as a result.

The deadline for introduction of a new financial system was June 2018.

Once the new financial system was in place it would be possible to consider encouraging people to pay by direct debit, this was not an option under the current system.

•

• •

A member indicated that she had received feedback that some customers would prefer a ‘pick and mix’ approach to which services they chose to receive rather than the current system. Officers undertook to consider this recommendation in the action plan.

Members asked that the Board receive regular updates on the levels of referrals and work with current and new partners to increase the number of referrals.

In response to a member’s query as to how outcomes would be measured to ensure that the provision of the service made a difference to customers, officers referred to the action ‘to develop a ‘time bound’ plan with targets and performance measures that demonstrate progress and provide assurance and direction’.

RESOLVED – that:i.

The content and approach taken to develop the Ostara Review Action Plan be approved. ii.

Officers take on board the comments made during debate.

42

SPECIAL RESOLUTION TO AMEND THE RULES OF ASFALEIA Submitted: Report by Interim Company Secretary (previously circulated and copy attached to Official Minutes) S Reed introduced the report which advised the Board of the process for amending the Rules and of the four key proposed changes to them.

A member suggested a further change in addition to the four changes proposed in the report she suggested that Part A2.1 of the rules of Asfaleia be amended to read:‘the provision of relief and support of those disadvantaged by reason of poverty, homelessness, youth, age, family circumstances, unemployment, ill-health or any mental or physical disability’ The Board supported this suggested amendment, subject to checking with the advisors that the comment would not cause any concern.

RESOLVED- that:i.

The Board RESOLVES that, having received the necessary permission from the Board of Your Homes Newcastle Limited on 20 June 2017 and in compliance with Rules G11.1, G11.2 and G11.3, the Rules of Asfaleia Limited shall be amended in accordance with the mark-up attached; and the Financial Conduct Authority, as the regulator of Community Benefit Societies, shall be notified of these amendments; and upon receipt of FCA approval of those amendments, the amendments shall then come into effect; and HMRC shall subsequently be advised. ii.

Part A2.1 of the Rules of Asfaleia be amended as detailed above, subject to confirmation from legal services this proposed change is acceptable.

43

ANNUAL REPORT AND FINANCIAL STATEMENTS Submitted: Report by Finance and Commercial Director (previously circulated and copy attached to Official Minutes) L Forrest introduced the report which presented the Annual Accounts for the financial year 2016-17 for YHN Company and Group, advising that these were the first annual accounts for Asfaleia Ltd. She outlined the various stages in the production of the accounts and the annual accounts approval process, as detailed in the report. She described the going concern assessment and the letter of representation and drew to member’s attention the changes to the closing reserves position since the draft outturn had been reported to Board in April 2017.

L Forrest advised that the Annual Accounts would be filed with Companies House and FCA but did not need to be filed with HMRC (as had been stated in the report) Group Audit Committee had recommended the accounts to Asfaleia Board for approval.

RESOLVED – that Board approve the following documents to be signed by Board representatives: • The Directors’ report; • The Strategic report; • The financial statements and notes; • The letter of representation; and • The going concern assessment.

44

ASFALEIA SERVICES FINANCE AND PERFORMANCE UPDATE Submitted: Report by Assistant Director Supported Services (previously circulated and copy attached to Official Minutes) L Philliskirk introduced the report which set out Asfaleia’s financial and non-financial performance at the end of quarter one, this was a new format of reporting and members were asked to feedback any comments on the new format which could then be built into future reports.

She commented that overall performance was good with two areas where there was need for improvement and the mitigating actions that had been put in place. Void rent loss in sheltered housing was artificially high due to long term voids at one of the sheltered housing schemes, this scheme was to be remodelled. Collection of rent from sheltered housing tenants and young people’s service managed accommodation was lower than the previous year, this figure was due to the opening on Tree Top village and delays in receipt of housing benefit for tenants moving to these new properties.

L Forrest commented that although the bad debt figure appeared high at the moment, this was partly as a result of invoicing for Ostara Services for a full year, approximately £30k of the debt would be covered by benefits, in addition most of the £22k of old debt had now either had been or would be collected.

RESOLVED – that:i. ii.

45

The Q1 financial and non-financial performance information be noted.

The suggested performance targets set out in section 1.3 of the report be approved.

ASFALEIA SERVICES BUSINESS UPDATE - ADVICE AND SUPPORT CARE SERVICES, YOUNG PEOPLE'S SERVICES AND EMPLOYABILITY Submitted: report by Assistant Director of Supported Services (previously circulated and copy attached to Official Minutes) L Philliskirk introduced the report which updated the Board on key issues, events and challenges facing the Asfaleia services, including care services, advice and support, Young People’s service, employability and safeguarding. She commented that the work undertaken in response to the impacts of the introduction of Universal Credit provided an example of the organisation’s approach to equality and diversity, by identifying if any customers were disproportionately affected and taking mitigating action and also identifying any vulnerable groups who may be affected and looking at what could be done to support these people.

Members welcomed the positive comments in the Ofsted Single Inspection Report about YHN’s Young People’s Services and also that the Your Homes Your Jobs programme had won the ‘Excellence in Employability and Diversity’ award at the recent CIPD North East Awards ceremony.

Officers advised members on broader discussions via the Homelessness Prevention Trailblazer to use Newcastle’s experience of the benefit changes so far, for awareness raising about the impact of welfare reforms and also on work to try and engage with the families affected by the benefit cap who were not currently engaging with workers. In addition officers had raised concerns about problems people with visual impairments were experiencing navigating the Universal Credit system.

In response to a member’s query about the reduction in Ostara customers at the end of June 2017, officers commented that this may be due partly to the circulation of the annual invoices. The move in future to weekly or monthly rather than annual billing should avoid this reduction in customers in future years.

RESOLVED – that the report be received.

46

SOCIAL HOUSING EQUALITY FRAMEWORK: DATA ANALYSIS TO IDENTIFY IF CUSTOMERS ARE DISPROPORTIONATELY AFFECTED BY YHN POLICIES AND PROCEDURES Submitted: Report by Assistant Director Supported Services (previously circulated and copy attached to Official Minutes) L Philliskirk introduced the report which provided an update after a request to revisit the approach from 2015 for the Social Housing Equality Framework and to apply those methodologies to scrutinise current data that YHN had on its customers. The aim was to assess whether any tenants were disproportionately affected by any

YHN policies and procedures and if they were, to look at what actions it would be possible to put in place in mitigation. She gave an assurance that throughout the organisation staff identified and addressed areas of vulnerability.

The Chair referred to the need to be aware of the very different and diverse communities and how demographic information could be used to ensure engagement with these communities to develop an understanding of their housing needs; to see if there were any specific communities that were not aware of Asfaleia’s services and to see if there was an under representation of certain groups in terms of accessing services, the reasons for this and if anything needed to be done in mitigation. The Chair agreed to meet with M Foreman outside of the meeting to discuss in more detail.

RESOLVED – that:i. ii.

47

The report be received.

The Chair and M Foreman meet, outside of the meeting, to discuss in more detail how this could be progressed.

GOVERNANCE REVIEW UPDATE Submitted: Report by Interim Company Secretary (previously circulated and copy attached to Official Minutes) S Reed introduced the report which advised on the timing of Asfaleia Board members having to submit their intention to resign and also provided a brief update on the progress of the restructuring arising from the governance review.

RESOLVED – that members note that they would in due course receive a “notice of intent to resign” letter, to be signed and returned to the Company Secretary and Group Governance Manager.

48

ANY OTHER BUSINESS None.

49

DATE AND TIME OF NEXT MEETING Thursday 26 0ctober 2017 5 – 7 pm

50

EXCLUSION OF PRESS AND PUBLIC RESOLVED – that in accordance with the organisation’s Access to Information provisions, the press and public were excluded from the meeting during the consideration of the confidential minutes of the previous meeting.

51

CONFIDENTIAL MINUTES OF THE LAST MEETING DATED 20 APRIL 2017 The confidential minutes of the meeting held on the 20 April 2017 were approved as a correct record and signed by the Chair.

Asfaleia Limited 9 November 2017 (10am – 12.25pm) Present: S Bramwell (Chair – from minute 53) D Hall D Huddart H Simpson R Taylor (from 10.10am) In attendance:

52

A Baker

Governance Support Officer

R Clark

Care Services Manager (up to minute 59)

S Clarke

Employability Manager (up to minute 57)

J Davison

Company Secretary and Group Governance Manager

T Drury

Managing Director

M Foreman

Customer Services Director

S Halliwell

Advice and Support Manager (up to minute 57)

J Ritchie

Finance and Commercial Director

W Wallace

Operational Manager, Young Peoples Service (up to minute 57)

Welcome and Introductions/Appointment of the Chair and Vice Chair J Davison welcomed both new and returning members of Asfaleia Ltd. to the meeting, as appointed by the YHN Board on 19 September. Round table introductions were given.

In accordance with the Rules (E1), an independent Chair must be elected by members. Following a recruitment and selection process, Stephen Bramwell was recommended for this role. Members were formally asked to agree the endorsement.

J Davison added that the Board may also appoint a Vice Chair, proposing that the nomination process is conducted by email. If more than one nomination is received (from either independent and non-independent members), a ballot will be held via email and confirmed at the next Asfaleia Ltd. meeting.

RESOLVED – That: i.

S Bramwell is appointed as Chair of Asfaleia Ltd. ii.

J Davison to seek Vice Chair nominations S. Bramwell took the Chair 53

Apologies for Absence No apologies received, the meeting was noted to be quorate.

54

Declarations of Interests None.

55

Minutes of 27th July 2017 The minutes were agreed to be a correct record and were signed accordingly by D Huddart.

56

Action List Review The action log was received and agreed; members were informed that the amended Rules have now been filed with the FCA. M Foreman added that the outgoing Chair was satisfied following discussions on social equality framework.

57

Asfaleia Services Members received a presentation from the team managers of Advice & Support, Care Services, Employability and Young Peoples Service, outlining their service function, achievements and challenges.

The following queries/comments were raised following the presentation: 

 

D Hall asked if more could be said about opportunities and ambitions concerning work with Clinical Commissioning Groups. M Foreman replied that discussions are taking place between YHN and other partners about what a public service offer could look like beyond silo services. There are opportunities with Ostara acting as a buffer for patients as they are discharged. A meeting has been scheduled to explore how YHN can assist, though collaboration between health services, CCG, and Local Authorities.

Unfortunately these all have their own priorities and funding streams and may prove difficult to link together. M Foreman added that discussions have started with the ambulance service regarding funding for a low cost service that prevents a vehicle being dispatched.

D Huddart noted that it is pleasing to see developments within Asfaleia Ltd. services, adding that current media is reporting on outdated equipment and shortage of call handlers across the fire, police and other services.

H Simpson asked who has been identified as competitors to Asfaleia Ltd. and how much is understood about the market. M Foreman replied that direct services don’t appear to have any competitors, other than where

 

58

services are being delivered on behalf of other organisations, and there is a good level of insight into the range delivered and their costs following some benchmarking exercises. Some large national competitors could provide a similar provision cheaper in terms of the telephone and monitoring services, but not the response element. S Halliwell commented that there is a growing realisation that private services, though competitive in price, are lacking in quality. T Drury noted that these services are seen as core parts of YHN and as such are in a position of strength in the marketplace.

R Taylor gave thanks for the level of openness and honesty of challenges facing Asfaleia Ltd. such as the vacant Assistant Director of Supported Services.

The Chair commented that it will take time for members to fully understand the services, given that there are four scheduled meetings it will be important to take the time to become familiar with the variety of areas Asfaleia Ltd. covers and help wherever they can to overcome challenges.

Governance Arrangements J Davison gave an overview of governance arrangements to members, covering recent changes to the YHN group structure, day to day arrangements, and the role that members of Asfaleia Ltd. have in ensuring fulfilment of the Objects. T Drury asked that the governance review recommendations could be checked to see if they do suggest that the Chair attends a YHN Board meeting to give an overview of activity, similar to the arrangements made during N Shukla’s tenure.

Members felt that the presentation was helpful in understanding the relationship of Asfaleia Ltd. within the YHN Group, and that independence does not mean remoteness and isolation.

RESOLVED – that consideration be given to inviting the Chair of Asfaleia Ltd. to attend the YHN Board periodically.

59

Ostara Service Review - Overview Members received a presentation covering the recently conducted Ostara service review, featuring financial viability, market comparisons, current position and recommendations.

The following comments were raised following the presentation:   

The Chair emphasised the importance of stabilisation over the next three years, adding that the action plan should become a regular agenda item in order to dedicate sufficient time to discuss the complexity of the subject.

D Huddart speculated that, if Ostara are recording eight falls per day, there could be a larger fraction across the city that go unreported.

H Simpson commented that during the balancing of an increase of customer base with potential staff reductions the quality of service should not be forgotten. Regular reports should be run to monitor satisfaction levels.



H Simpson noted that it would be useful to compare current and emerging technology

RESOLVED – That: i.

Officers take on board the comments made during the debate ii.

That the Ostara action plan becomes a standing agenda item 60

Finance and Performance Monitoring Process J Ritchie introduced the report, which set out the processes involved in creating and monitoring the management accounts, performance targets and the 2018-19 business and financial planning for Asfaleia Ltd. As part of the budget setting timeline, the YHN Board will review the draft group budgets in December and make proposals which will be taken to the January Asfaleia Ltd. meeting for response.

J Ritchie also reported that the governance review had highlighted an issue that sufficient time was not being allocated to cover finance and performance information at the YHN Board for the group, and recommended that a Finance and Performance Committee was created. The first meeting of the committee was held earlier in the week, with positive feedback on the level of detail discussed. As part of the reporting process, Asfaleia Ltd. would be presented with a follow up report at each scheduled meeting covering the main areas of discussion and any remedial actions identified at the committee.

A discussion was held regarding the scheduled process of reporting finance and performance information across the group structure. The Chair expressed concern that Asfaleia Ltd. Board would not have sight of finance and performance information until later in the meeting schedule long after the YHN Board have met, that perhaps meetings could be held before the Parent and increase the frequency of meetings per year to five. T Drury noted that following the review recommendations, R Taylor attends the Finance and Performance Committee as an Asfaleia Ltd. representative and is to raise any concerns with the quarterly performance information in that forum, adding that any significant issues would be communicated to members immediately as opposed to presenting to the Asfaleia Ltd. Board as scheduled.

H Simpson emphasised that email and telephone communication should be utilised between meetings where concerns require input from members. J Davison commented that the reporting arrangements are designed to bring balance to the levels of information distributed across the group structure, to avoid duplicate conversations, however, should members wish, the finance and performance report for YHN Board could be made available at the same time to Asfaleia Ltd. In summarising, T Drury asked members to proceed with current provisions, noting that there is an intention to revisit governance arrangements in 12 months once the process has been embedded and potential issues identified. It was also confirmed that briefing meetings take place between lead officers and Chairs of all committees, Asfaleia Ltd. and YHN Board.

RESOLVED – That: i.

Officers take on board the comments made during the debate ii.

That the Finance and Performance report for YHN Board is shared with Asfaleia Ltd. members 61

2018 Work Plan/Items for January Meeting M Foreman presented the work plan which proposed regular reports and key approval items across the financial year, adding that given the new constitution, further discussions with the Chair would help align priorities to shape the plan accordingly.

RESOLVED – That: i.

The current work plan be approved pending further discussions with the Chair on content and additional items ii.

That member contact details be recirculated to facilitate discussions with the Chair regarding future agenda items

62

Any Other Business The Chair suggested that members might benefit from a bus trip similar to the tour on 27th October, to look at Asfaleia Ltd. services in more detail and explore issues ‘on the ground’, to take the opportunity to look at some of the outcomes of the services members are responsible for.

RESOLVED – that the Governance Team would make arrangements to schedule a tour before the end of December.

63

Date and time of next meeting The next Asfaleia Ltd. meeting is currently scheduled for 25th January. It was proposed that this is delayed to early February, which would still align to the business and financial planning process for the YHN Group.

RESOLVED – that J Davison would email members with potential meeting dates.

……………………………

Mr S Bramwell Chair

Delivering great services, enabling people to live in great communities, supporting a great city

Your Homes Newcastle Board 28 November 2017 TITLE

Repairs and Maintenance Service Review

AUTHOR

David Langhorne, Assets and Development Director

COMPANY

Your Homes Newcastle

ACTION REQUIRED

For Discussion

SUMMARY

This report gives board an update on the joint YHN/NCC R&M Review and the proposed outcome as presented to NCC Cabinet on 20/11/17.

DELIVERY PLAN OBJECTIVE

1. Keep the housing stock decent, and neighbourhoods clean and safe.

STRATEGIC RISK REGISTER

NUMBER & TITLE

GR5: Failure to follow Health and Safety policies procedures and legislation

LIKELIHOOD

2 (Unlikely)

IMPACT

4 (Significant)

NUMBER & TITLE

GR14: Failure to deliver the key service reviews and projects on time, on budget with the right outcome

LIKELIHOOD

3 (Moderate)

IMPACT

3 (Medium Significant)

STRATEGIC RISK REGISTER

FINANCIAL / VALUE FOR MONEY IMPLICATIONS

Financial and value for money implications will be fully considered as part of the new Transition Board that will be led by YHN’s Managing Director. This will cover YHN and HRA financial implications.

CUSTOMER IMPACT / VIEWS

Customer views were sought and considered as part of the R&M review proposal. These views were taken in to account when forming the final recommended option.

The key objective of the proposed changes is to “improve the customer experience�.

EQUALITY & DIVERSITY CONSIDERATIONS

There are no specific equality and diversity matters arising from this report.

Your Homes Newcastle Repairs and Maintenance Service Review 1.

Purpose of report

1.1 NCC Cabinet agreed a report at its March 2017 meeting setting out the terms of a review of the housing repairs and maintenance service currently delivered

by Building and & Commercial Enterprise (“BCE”) and YHN. This report summarises the outcome of this review and sets out the recommended way forward.

2.

Background information

2.1 The proposal set out in this report builds on the joint working between staff in BCE and YHN over recent years, and has been put forward to further improve outcomes for tenants. In March 2017 NCC Cabinet received a report which set out the scope of the review, governance and outcome of consultation with tenants and staff. The engagement collated feedback from customers via online surveys and face to face sessions (over 400 tenants and leaseholders provided their views on a range of themes). Similar exercises were carried out with staff across all areas of the service – 139 staff participated. Both operational staff teams have received regular feedback as the review has progressed. A board was set up following completion of engagement. This board was made up of staff from BCE, YHN and the Fairer Housing Unit.

They have analysed the feedback from the engagement sessions, undertaken lean systems reviews of process and researched evolving and good practice in the sector. A set of priorities has been agreed which will form the basis of the transformation work programme.

2.2 The drivers for change at the heart of the review are: • • • • • • • •

Improving the customer experience; Reflecting and understanding the pressures on general fund and HRA budgets; A renewed focus on outcomes as set out in the Management Agreement (reflecting the sector) in terms of the whole customer experience; Development of a sustainable shared culture across R and M delivery with common aims, values and focus between YHN and NCC; Continue to move away from a client contractor model to a modern R and M service; Development of a service that could be attractive to other organisations; A continued focus on value for money for the whole service across BCE and YHN (cost, quality, satisfaction); A focus on what makes a high performing R and M service: culture;

direct accountability of staff at all levels; good two way communication with tenants; rapid and effective problem solving; and delivery of high levels of productivity and customer satisfaction.

3.

Review findings and proposal

3.1 The current repairs and maintenance service delivers good value for money for tenants as evidenced through external benchmarking. However the current arrangements are such that it is still operating as a historic client/contractor service – with each organisation having different objectives.

The focus for both organisations needs to be the customer and to make sure that the repairs and maintenance service is seen and understood by them as an integral part of the wider housing management service rather than a separate entity.

The current service runs on separate IT systems, and the business processes that have developed over time include multiple handovers between different groups of staff. The service needs to change to reflect changing customer expectations, the digital agenda and to ensure that it contributes to the long term success of the asset. Feedback from customers is that the staff teams are service orientated but the systems and processes are complex and difficult to navigate. The repairs and maintenance service is the area of housing management that is usually the critical indicator in how customers view their landlord. We need to ensure, therefore, that our service is well placed to help us retain and attract future tenants.

There is a significant opportunity to improve customer outcomes and value for money through streamlining the leadership of the various groups of staff involved in delivering the service under a ‘single point of leadership’ that is part of YHN’s senior management structure.

3.2 The features of the ‘single point of leadership’ model are: •

BCE workforce remains employed by the Council and the Chief Operational Officer retains responsibility for BCE staff ’pay, terms and conditions, health, safety and welfare and industrial relations. YHN staff remain employed by YHN. All staff will be managed as one team.

•

Due to the operational difficulties associated with separating out the repairs and maintenance service from the construction / stores service, all elements will come under the ‘single point of leadership’, including architectural services. However, the energy and transport service that currently sit within BCE will not come under the ‘single point of leadership’ due to the lack of synergy with the rest of YHN’s operations.

•

‘Single point of leadership’, will be part of the YHN senior management team and will lead the transformation of the repairs and maintenance service ensuring that staff from both BCE and YHN work together in the most efficient effective manner to deliver the financial / customer outcomes

agreed as part of the annual budget / service planning process.

4.

•

‘Single point of leadership’ will be tasked with identifying / implementing all service changes required to deliver the transformation of service.

•

‘Single point of leadership’ will be accountable to the Council’s Chief Executive through YHN’s Managing Director.

•

The role of YHN’s board will remain unchanged. Board will continue to oversee the delivery of YHN’s business strategy including the delivery of the Councils requirements set out in the Management Agreement. The key performance targets and service standards will be amended to include the changes set out in this report. The Fairer Housing Unit will continue to work with YHN to set, review and monitor outcomes across the service as with all other HRA related activity.

•

The extent to which other senior managers within BCE move to physically sit within YHN management structure will be determined as part of implementation phase. The degree of co-location will also be determined as part of the implementation phase.

•

The YHN Management Agreement will be varied to reflect the ‘single point of leadership’ model. All references to the management of BCE as a repairs and maintenance contractor will be removed with corresponding resource implications.

•

Single point of leadership will be tasked with delivering a specific level of financial and service performance for the repairs and maintenance, construction and stores service. Performance will be monitored as part of current YHN Management Agreement review process which includes quarterly meetings with NCC’s Director of Place, Director of Resources and Head of Fairer Housing Unit).

•

Support arrangements for BCE will be reviewed to assess alignment with YHN’s current support arrangements.

•

Where BCE delivers capital construction projects for other clients including Council directorates and schools this would continue as at present.

Next steps

4.1 • • 5.

NCC Cabinet received this proposal on 20/11/17 YHN’s Managing Director will form the Transition Board in Nov/Dec 2017

Risk / Opportunities

5.1 A full risk register will be developed as part of the Transition Board led by YHN’s Managing Director.

The changes create opportunities for transformational service improvements beyond what was previously achievable in the “client” and “contractor” relationship between YHN and BCE.

6.

Conclusion and recommendations

6.1

Board are recommended to: a) Receive the report and information presented b) Comment on the content

Background Papers 20th November 2017, Review of Repairs & Maintenance Service, NCC Cabinet Paper Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact David Langhorne, Assets and Development Director by telephone on 0191 278 7701 or email david.langhorne@yhn.org.uk

Board 28th November 2017 Delegated Decisions – Schedule of non-confidential Delegated Decisions taken between 27th July 2017 and 15th November 2017

No.

Directorate/ Delegated Officer

Scheme

Cost/ Budget provision

Units

Contractor

Wards

1

David Langhorne - Assets & Development

Q-Bot Partnership

Funding of £62,540 from Standard Housing Investment - Energy Efficiency/Fuel Poverty

N/A

Q-Bot

Cross City

2

David Langhorne - Assets & Development

Q Bot vehicles

Funding of £31,585.56 from Standard Housing Investment Energy Efficiency/Fuel Poverty

N/A

Lookers motor group

Cross City

3

David Langhorne - Assets & Development

Dorcas Avenue New Build

Funding of £473,944.02 from New Build and New Housing

4

Keepmoat regeneration Ltd

Benwell and Scotswood

4

David Langhorne - Assets & Development

INT0020 Kitchen Replacement Programme

Funding of £732,687.07 from Lifecycle – Maintaining Decency

161

Building Commercial Enterprise

Cross City

5

David Langhorne - Assets & Development

Garage Demolition (overspend)

Additional funding of £2,800 added to £7,520.70 from Regeneration – General Needs.

6

David Langhorne - Assets & Development

PB32 Elm Grove parking

7

David Langhorne - Assets & Development

1

O'Briens Demolition

Kenton

Funding of £15,000 from the Participatory Budget

18

Highways and Localised Services

Fawdon

WD0026 Citywide Window & Doors

Funding of £9,540,000 from Lifecycle Programmes Maintaining Decency

2,400

Straightline (NE) Ltd.

Cross City

8

David Langhorne - Assets & Development

Concierge Service Follow up from Staff Survey

Funding of £7,500 from Improving Customer Services

N/A

Caroline L Gitsham Consulting Ltd

Cross City

9

David Langhorne - Assets & Development

WD0028 Fire Door Replacement Programme NEP

Funding of £1,272,000 from Lifecycle - Other

383

Straightline Construction Limited

Elswick

10

David Langhorne - Assets & Development

Tree Top Village (Overspend)

Additional funding of £212,000 added to £9,427,230.10 from Regeneration – General Needs

75

Wates Living Space

Walker

11

David Langhorne - Assets & Development

DEM0010 Garage Demolition 2017/18

Funding of £15,000 from HRA Revenue

30

O'Briens Demolition

Kenton

12

David Langhorne - Assets & Development

Bamburgh House and Milecastle House remodlling REM0008 and REM0009 (Overspend)

13

David Langhorne - Assets & Development

YHN House, Plant room improvement

Funding of £16,394.92 from Regeneration - General Needs

N/A

Building Commercial Enterprise

Cross City

14

David Langhorne - Assets & Development

Lean Process Mapping

Funding of £21,840 from YHN Revenue

N/A

Service Matters

Cross City

15

David Langhorne - Assets & Development

PB33 Benwell Allotments Association

Funding of £21,200 from Participatory Budget

1

Highways and Localised Services

Benwell and Scotswood

16

David Langhorne - Assets & Development

PB31 Fenham FAR Project

Funding of £21,200 from Participatory Budget

1

Highways and Localised Services

Fenham

17

David Langhorne - Assets & Development

REM0012 Wansbeck House Remodelling

Funding of £26,011.34 from Regeneration - Sheltered Housing

1

Building Commercial Enterprise

Lemington

18

David Langhorne - Assets & Development

PB14 Graham Park Road

Funding of £13,736.65 from Participatory Budget

18

Highways and Localised Services

West Gosforth

Additional funding of £722,210.31 added to £4,117,300 from Regeneration

53

Keepmoat

Cross City

14

Highways and Localised Services

Denton

Funding of £54,258.81 from Standard Housing Investment – Health & Safety

N/A

Pringle Building Services

Ouseburn

Door Replacement Programme NEP (Overspend)

Additional funding of £750,000 added to £2,015,361.55 from Lifecycle – Maintaining Decency

2594

Straightline Construction Limited

Cross City

22

David Langhorne - Assets & Development

WD0020 2016/17 Door and Window Replacement (Overspend)

Additional funding of £615,019.17 added to £1,334,980.83 from Lifecycle – Maintaining Decency

406

Building Commercial Enterprise

Cross City

23

David Langhorne - Assets & Development

INT0003 Internal Elemental Programme (Overspend)

Additional funding of £110,848.95 added to £517,799.38 from Lifecycle

128

Building Commercial Enterprise

Citywide

24

David Langhorne - Assets & Development

Shield court Remodelling (Overspend)

Additional funding of £355,143.70 added to £2,337,750 from Regeneration – Sheltered Housing

30

Keepmoat

Ouseburn

25

David Langhorne - Assets & Development

Structural Surveys and improvements

Funding of £95,400 from Standard Housing Investment - Health & Safety

38

Enviroblast

Cross City

19

David Langhorne - Assets & Development

PB5 West Denton Car Parks

Funding of £43,054.52 from Participatory Budget

20

David Langhorne - Assets & Development

Breamish House/City Road Retaining Wall

21

David Langhorne - Assets & Development

26

Jon Ritchie – Finance and Commercial

ICT Consultancy

Funding of £45,000 from YHN Revenue

0

Ian Rowell Consultancy Ltd

N/A

27

David Langhorne - Assets & Development

INT0017 Bathroom Replacement Scheme

Funding of £315,874.86 from Lifecycle Programmes Maintaining Decency

150

Rothwell Plumbing Ltd

Cross City

28

David Langhorne - Assets & Development

PB50 West Denton car parking

Funding of £52,016.32 from Participatory Budget

8

Highways and Localised Services

Denton

29

David Langhorne - Assets & Development

PB26 Redland Avenue

Funding of £11,666.36 from Participatory Budget

6

Highways and Localised Services

Fawdon

30

David Langhorne - Assets & Development

R3 PB16 Slatyford Lane

Funding of £12,339.46 from Participatory Budget

7

Highways and Localised Services

Fenham

31

David Langhorne - Assets & Development

12 Vale Walk

Funding of £13,577.37 from Standard Housing Investment Sound Insulation

1

Northern Joinery and Construction

South Jesmond

32

David Langhorne - Assets & Development

PB23 Eastgarth

Funding of £24,946.04 from Participatory Budget

20

Highways and Localised Services

Woolsington

33

David Langhorne - Assets & Development

Queens Court Lift Consultancy

Funding of £13,992.00 from Lifecycle - Other

4

TUV-SUD Ltd Dunbar & Westgate Boardman

34

David Langhorne - Assets & Development

FS0004 Fire compartmentalisation Newburn

Funding of £19,217.80 from Lifecycle - Other

23

Isoler

Newburn

35

Jon Ritchie – Finance and Commercial

GDPR readiness assessment

Funding of £25,000 from YHN Revenue

N/A

Civica Services Limited

N/A

YHN Board Forward Plan 2018

Meeting 23 January 2018

1 2

3 4 5 6

Report Name Draft Budget/Delivery Plan/Risk Register 2018-19 Assurances from Committees: • Group Audit and Risk 16th November • Customer Service Committee 6th December YHN Articles of Association Group Governance Handbook & Scheme of Delegations update Board appraisals and Training plan Customer Insight and Engagement Strategy

Purpose Discussion Discussion

Confidential? Report Author Yes Finance & Commercial Director No N/A

Approval Discussion Approval Approval

No No No No

Company Secretary Company Secretary Company Secretary Director of Customer Service

Purpose Approval Approval Discussion Discussion Discussion

Confidential?

Yes Yes No Yes No

Report Author Finance & Commercial Director Finance & Commercial Director Finance & Commercial Director Finance & Commercial Director N/A

Discussion

No

Director of Customer Service

Approval Discussion Approval Approval Approval

No Yes No No No

Company Secretary Finance & Commercial Director Finance & Commercial Director Assets & Development Director Company Secretary

Discussion

Yes

Finance & Commercial Director

Meeting 20 March 2018 Report Name Budget/Delivery Plan/Risk Register 2018-19 Gift Aid Payment to Asfaleia Treasury and Cash flow update Finance and Performance Q3 Assurances from Committees: • Finance and Performance 13th February • Group Audit and Risk 20th February 6 Assurances from subsidiaries: • Asfaleia Ltd. 6 February 2018 7 Group Governance Handbook & Scheme of Delegations 8 HR Report 9 Equality and Diversity Strategy 10 Health and Safety Policy 11 Directors re-appointments process ABRI TRADING 11 Abri Trading – Business Activity Update 1 2 3 4 5

Meeting 29 May 2018

1 2 3

4 5 6 7 8

Report Name Finance and Performance Q4 Remuneration and Nominations Committee Report Assurances from Committees: • Finance and Performance Committee 15th May • Customer Services Committee 15th March • Remuneration and Nominations Committee March (tbc) Assurances from subsidiaries: • Asfaleia Ltd. 26th April Health and Safety Report Growth Strategy Procurement Strategy Value for Money Strategy

Purpose Discussion Approval Discussion

Confidential?

Yes Yes No

Report Author Finance & Commercial Director Chair N/A

Discussion

No

N/A

Discussion Approval Approval Approval

No Yes No No

Assets & Development Director Finance & Commercial Director Assets & Development Director Finance & Commercial Director

Purpose Approval Information Discussion

Confidential?

No No No

Report Author Finance & Commercial Director Finance & Commercial Director N/A

Approval Approval

No No

Assets & Development Director Company Secretary

Discussion

Yes

Finance & Commercial Director

(Strategic Away Day 19 June 2018) Meeting 31 July 2018 Report Name 1 Annual Report and Financial Statements 2 Year End Reserves 3 Assurances from Committees: • Group Audit and Risk 22nd May • Customer Service 19th June • Group Audit and Risk 10th July 4 Slavery and Human Trafficking Statement 5 NHF Governance Code Compliance ABRI TRADING 6 Abri Trading – Business Activity Update

AGM & Meeting 18 September 2018 Report Name AGM 1 Chairs Report 2 Minutes of 19 September 2017 3 Appointment of External Auditors 4 Retirement & Appointment of Board Members 5 Annual Accounts & Financial Statements Board Meeting 6 Appointment of Vice Chair 7 Committee Membership 8 Finance and Performance Q1 9 Strategic Risk Register 10 Assurances from Committees: • Finance and Performance 14th August 11 Assurances from subsidiaries: • Asfaleia Ltd. 26 July 12 Asset Management Strategy

Purpose

Confidential? Report Author

Information Decision Decision Decision Decision

No No No No No

Chair Company Secretary Company Secretary Company Secretary Company Secretary

Approval Approval Discussion Discussion Discussion

No No No No No

Company Secretary Company Secretary Finance & Commercial Director Finance & Commercial Director N/A Customer Services Director

Discussion

No

Assets & Development Director