DURHAM AGED MINEWORKERS HOMES ASSOCIATION … · DURHAM AGED MINEWORKERS’ HOMES ASSOCIATION VALUE...

DURHAM AGED MINEWORKERS’

HOMES ASSOCIATION

VALUE FOR MONEY STATEMENT

Year ended 31st March 2017

Agenda Item 6

Document File Name : F:\Administration\Committees\Executive Committee\2017\2017-09-21\2017-09-21 Agenda Item 4 - DAMHA VfM Statement 2017.docx

1. Purpose

1.1. The purpose of this statement is to demonstrate the way in which Value for Money

(VfM) has been delivered by the Association in the 2016/17 financial year, as well as

looking forward to future initiatives.

1.2. A summarised extract of this statement will be included in the Annual Report to

residents and the key financial elements are included in the Executive Committee’s

Annual Report, which forms part of the annual financial statements.

1.3. The statement will be updated annually.

2. Approach to VfM

2.1. The Association, as a Registered Charity is committed to being an effective and efficient

social business achieving high levels of VfM in all its activities. A VfM Strategy was

approved for 2013-17 and this was recently updated in February 2017 for the next

three years to 2020. The strategy recognises that VfM is not a new initiative, and

indeed that VfM has been a fundamental ethos of the Association for a long time.

3. VfM objectives

3.1. In order to deliver ongoing continuously improving VfM, the original strategy identified

four specific objectives:

3.1.1. Objective 1: Understand our key input costs thoroughly;

3.1.2. Objective 2: Improve our procurement processes;

3.1.3. Objective 3: Improve the efficiency of the process of driving continuous

improvement; and

3.1.4. Objective 4: Embed VfM into capital spending procedures

3.2. During the period 2013-17, work was undertaken to attain these objectives in

successive annual Corporate Plans of the Association. This resulted in ongoing cash-

reductions of the budget which were achieved without reducing quality of our services

to residents, and indeed in most cases, marginally improving them. The precise levels

of efficiency savings in summary are demonstrated in Section 5 below.

3.3. In May 2017, the Executive Committee, acknowledging the progress made, updated the

Value for Money Strategy to identify two new objectives for the following strategy

period. These are

3.3.1. Objective 1: Develop to our maximum potential; and

3.3.2. Objective 2: Continue to improve our procurement processes.

4. VfM in practice

4.1. VfM in absolute terms is being delivered. This can be demonstrated in the following

sections.


4.2. Resource allocation.

4.2.1. The Annual Financial Plan, which forms the basis of the Association’s Annual

Corporate Plan, is updated every year. This is the primary way in which capital

resources are allocated between competing financial priorities.

4.2.2. The Executive Committee have operated the following underlying priorities

within the business plan for many years:

Maintaining financial viability;

Providing excellent, cost-effective, services to residents;

Fund investment in existing stock to maintain a standard appropriate to the

aspirations of the residents;

Providing an on-going development programme to address the undersupply

of affordable and appropriately designed homes for older people in the

region.

4.2.3. Whilst there is competition between these priorities, and there is often a need

to compromise, this does not apply to maintaining financial viability. The latest

update to the Annual Financial Plan which looks at the potential financial

performance of the Association over the next 30 years, was approved by the

Executive Committee in May 2016 and delivers an ongoing surplus which is used

to improve the quality of existing homes and finance the development of new

ones.

4.2.4. In January 2016 the government announced a one-year suspension for

Almshouses, supported housing and sheltered housing of the full 4-year 1% per

annum rent cut initially imposed on all Housing Associations, and also a

suspension of the application of an LHA cap to “rents” for one year for the same

categories of Housing Association properties. In addition, Almshouses are

excluded in the Voluntary Right to Buy provisions of the Housing Bill.

4.2.5. This has brought some stability to the Association’s business plan and

forstalled any immediate necessity to reduce services, however pending the

implementation of the Departmental Review into the LHA cap for supported and

sheltered housing and almshouse charities, there still remains considerable

uncertainty.

4.2.6. Nevertheless, development has returned to the agenda following the

preparation of the Association’s 2016/17 Budget in February 2016. 5 properties

are expected to be developed in this financial year and a bid was approved by

the HCA as part of the Isos Development Partnership for 20 new homes in each

of the following 5 years, on assurances being received from local HCA

representatives that there is flexibility in the system given the current level of

uncertainty about future rent levels.

4.2.7. The Plan demonstrates that the Association is in a robust position and meets

the expectations of external stakeholders and funders. Being a not-for-profit,


registered charity, 100% of surpluses earned are reinvested in the association

for the improvement of existing homes, or for the development of new ones.

4.2.8. It is recognised that in order to deliver cost effective services, efficiencies are

required and expected. As the Association is a registered charity with no

shareholders to withdraw a “profit” from it, every efficiency saving represents an

additional resource that can potentially be made available to further the

Association’s objectives. Specific measures are detailed later in this report.

4.2.9. Ensuring our existing properties are maintained and upgraded to the required

standard through the capital planned maintenance programme is essential. The

Association owns stock which has been developed at various periods over the

preceding century, much of which can be costly to maintain due to age. An

average of £943k per annum has been set aside for each of the next 5 years for

this purpose. This level of investment is reviewed on an annual basis, and is

informed by the Association’s Stock Condition Survey, which is challenged by

quinquennial inspection and linked, via component accounting to the

Association’s accounts through component accounting and the accounting policy

for depreciation.

4.2.10. The Association operates an Asset Management Strategy which is reviewed

annually by the Executive Committee, and which monitors the condition and

demand for individual groups of homes owned by the Association. Homes

identified under the strategy for which demand is low, and/or anticipated to

require excessive levels of expenditure to maintain are periodically released for

sale onto the open market, following consultation with the residents. Capital

receipts, are set aside in reserves and utilised to provide funding towards the

development of new homes.

4.2.11. The Association has conducted a Return on Assets analysis of all homes. This

identified the regional areas where homes offer lower returns. This information

feeds into the decision making process as the Asset Management Strategy is

rolled forward.

4.2.12. The provision of modern homes for retired people is a key regional strategic

priority, as indicated by the high proportion of people over 65 on the Local

Authority’s waiting list and also the Association’s own waiting list, which is

numerically larger than the number of properties owned, and growing. There are

currently 1,690 applicants on DAMHA’s waiting list (2016: 1,866).

4.2.13. The new development programme is currently projecting an average of 20

new homes per year a reduction of 33% from the level of development

previously able to be sustained by the Association prior to 2011, and reflective of

the impact of reduced grant rates and the depression of future rental income on

the Association’s ability to sustain a level private lending required for new

development.

4.2.14. Notwishtanding, the Association has agreed a development programme of 126

homes in the five years to 2022 with the Homes and Communities Agency


utilising grant funding allocated in December 2016 and grant recycled from the

disposal of redundant homes.

4.3. Procurement

4.3.1. Efficiency in procurement is a given essential for the achievement of VfM.

During 2016/17 the following tenders were carried out:

Gas Servicing 5 year contract – to include electrical testing and solar panel

servicing.

4.3.2. There are no major contracts outstanding for tender during 2017/18.

4.3.3. The Association is planning to recruit a specialist Procurement Manager during

2017/18 who will oversee procurement strategy.

4.4. Investment Strategy

4.4.1. In 2010 the Association established a Residents’ Scrutiny Panel. The panel

meets quarterly to review performance statistics and set targets, as well as

monitoring our performance under the Customer Charter. A full schedule of

performance against Customer Charter targets in the year ended 31st March

2017 is included with the summary of all our KPI’s at Appendix 1. Our

performance continues to be on or about target in all areas.

4.4.2. It is recognised by Durham County Council and other local authorities in the

North East and nationally, that there is a shortfall of supply against demand for

2-bedroom bungalows designed with the needs of older people in mind, which is

not being met by either the private sector or the legacy of primarily 1-bedroom

bungalows provided elsewhere in the region.

4.4.3. The Association sees that it plays a significant role in locally addressing this

pressing need, and seeks to increase its provision of suitable retirement housing

for which there is a demonstrable need.

4.4.4. To that end, in every year since registering as a Housing Association in the

1980’s the Association has increased its stock of homes by building new

bungalows, of primarily 2 bedrooms. This programme paused during 2016/17

when no new homes were completed following the completion of an agreed

development programme and the retirement of the Association’s Head of Asset

Management. However the Association maintains an ambition to continue to

provide new retirement homes and following a staffing reorganisation, an annual

development programme remains in our 30 year Business Plan despite this

having become a significantly more financially challenging prospect than in the

recent past. As noted in paragraph 4.2.14 above, the Association is currently

progressing a specific programme of development of new homes within this plan.

4.4.5. We review the condition and desirability of all our stock on an annual basis.

Currently we have identified 28 properties where the anticipated cost of

maintenance is not financially justifiable given demand and achievable weekly

charges, and that in the Trustees’ opinion the capital invested would be better


used if it was released to provide funds for the development of new properties.

These are sold on an ongoing basis on the open market upon voluntary vacation

by their residents.

4.4.6. Our average sale price per unit achieved in 2017 was £40.9k and so this

represents capital (in the form of both recycled grant and the Association’s own

reserves) of approximately £163.8k, that will be recycled into modern and

desirable homes that are more appropriate for older people in today’s market.

4.4.7. Recognising that moving home represents a greater level of upheaval and

stress for older people than for the general population, we allow new residents a

full week from getting the keys to moving in, with the first weekly maintenance

charge not becoming payable until the second Monday following. This means

that our average turnaround period, and therefore the associated income loss, is

greater than our peers (25.4 days compared to a target of 26.0 days for 2016/17),

This is affordable however, due to our otherwise low level of voids, and is very

highly valued by our new residents who are often vulnerable and in need of

assistance in moving home, which cannot always be arranged quickly.

4.4.8. For the previous two years, the average was additionally skewed by long term

voids at a single sheltered scheme. Additional effort was focused on the scheme

in an attempt to develop an improved local marketing strategy which paid off

during the year. However, marketing remains an ongoing challenge in the local

environment.

4.4.9. In order to ensure as much of our income as possible is utilised for the

provision of more homes, the Association constantly reviews its expenditure and

seeks to operate within challenging budgets. In 2017, once again a further

decrease in the proportion of operating costs as a percentage of turnover was

achieved, building on ongoing progress from prior years. This was not down to

any single item, other than an ongoing critical review of budget expenditure to

ensure waste is minimised, opportunities for savings are undertaken whenever

possible, and new methods of delivering services are explored where they have a

realistic chance of making further efficiency gains.

4.4.10. A summary of our KPI’s and our performance against them for the year ended

31st March 2017 is included at Appendix 2.


5. Value for Money Performance - Analysis

5.1. Key areas of performance in relation to VfM are as follows:

2017 Change 2016 2015 2014

Operating costs as a percentage of turnover

44.6% (5.5%) 50.1% 52.9% 55.3%

Housing management costs per unit

£225.68 3.3% £218.40 £236.60 £230.55

Maintenance costs per unit

£552.76 (3.6%) £573.56 £522.08 £569.22

Routine repairs completed on time

99.6% (0.1%) 99.7% 99.9% 98.8%

Repairs satisfaction 91.6% 0.1% 91.5% 90.2% 89.2%

Average re-let time 25.4 days (30.4%) 36.5 days 35.2 days 29.3 days

Current resident maintenance charge arrears

£190k (4.0%) £198k £154k £125k

New homes completed 0 (100.0%) 30 5 17

Redundant homes sold 3 (40.0%) 5 2 5

5.2. The Association is committed to ongoing organic growth of its housing stock,

balancing its finite capital resources between the need for new properties and an

obligation to maintain existing stock against improving standards.

5.3. The association is committed to ongoing continuous improvement and in conjunction

with a Scrutiny Panel of residents, assesses its performance against challenging

targets on a quarterly basis. The results against these key performance indicators

for 2017 are attached at Appendix 2. The targets are reviewed annually and

revised where appropriate in consultation with the Scrutiny Panel. There were no

changes to targets this year.

5.4. The Association benchmarks with other similar providers as part of the Housemark

Benchmarking Club of Traditional Housing Associations in the Northern & Midlands

Region. The report compares the results for the Association with other registered

providers in the region. The results for 2016/17 are presented in summary at

Appendix 3.

5.5. Of the 53 measures covered, DAMHA places in the top quartile 28 times, and the

bottom quartile only four times.

5.6. Investigation of the four bottom quartile Performance Indicators shows:

5.6.1. Percentage of dwellings with a valid gas safety certificate

Value: 99.94% In fact 100% of occupied homes with a gas supply were

certified, however 0.06% of homes (1 homes) which represent the difference

between 4th quartile and 1st quartile are explained by a home which has

subsequently been disconnected from the gas mains.


5.6.2. Percentage of properties vacant and available to let

Value: 1.22% Virtually all of the Association’s voids are caused by the resident

being referred into care, or passing away. These factors are outside of our

control.

5.6.3. Percentage of repairs completed at the first visit

Value: 85.97% As our performance in relation to resident satisfaction with our

repairs function is very good, and our overall cost per unit for repairs is low for

the sector, this indicates that there is unlikely to be a significant efficiency

saving to be found in improving first-time completions. However as there is

potential a cost implication in relation to contractor time and travel costs, this

is an area currently under review to identify any possible efficiency savings.

5.6.4. Rent collected from current and former tenants as % rent due (excluding

arrears b/f)

Value: 96.82% Our arrears and write offs for former and current residents are

both very low compared to our peers. The factor influencing our relatively low

performance in this metric is in relation to the timing of payment of housing

benefit from Local Authorities. We are satisfied that this represents a cyclical

timing issue only relevant to timing of the statistical calculation, rather than

an ongoing problem with realising rent.

5.7. Analysis of the results of benchmarking against our peers, shows that the Association

is highly cost effective, and that delivering high levels of resident satisfaction has

been achieved while still maintaining a low cost base.

5.8. Prior to 2012, all registered providers were required to take part triennially in a

mandatory satisfaction survey of residents, which were collated and benchmarked on

a national basis. When this service was withdrawn by the regulator, the Association

committed to continue with the triennial survey on a voluntary basis utilising

Housemark’s STAR survey. This asks the same questions as the formerly mandatory

STATUS survey and is entirely compatible, permitting ongoing comparison of the

satisfaction of the Association’s residents over time.

5.9. The results of the most recent survey - conducted in July 2016 - compared to the

previous survey, conducted in July 2013, are shown at Appendix 4. Benchmarking

against other Registered Providers for this data set demonstrates that we remain at,

or very near, the top of our peer group for resident satisfaction.

5.10. The Association has had a sustained and high level of achievement in the

survey results for many years. At high levels of attainment, achieving further

marginal gains can be excessively expensive, and therefore the Association is

cautious in assessing the value for money of further gains. However, satisfaction of

our residents, and potential residents, continues to be a major priority of the

Association and continuous effort is focussed on ensuring that performance in this

area does not deteriorate. The Association has therefore targeted an improvement in

resident satisfaction from 94.4% to 95% by the time of the next STAR assessment in

2019.


5.11. In order to facilitate this, the Association seeks to identify where ongoing

efficiency savings can be made via improved processes and new initiatives. A log of

efficiency savings achieved in this way during 2016/17 is attached at Appendix 5.

The estimated annual value of new savings achieved was £50k, most of which will

continue to be ongoing in future years.

6. High level benchmarking by the Homes Communities Agency

6.1. The Homes and Communities Agency (“HCA”) provided the Association with a

comparison of its headline costs in the year ended 31st March 2015 against all

Registered Providers nationally. Appendix 6 details this information provided, as

well as comparing the externally benchmarked data for 2015 against the outcome

data for 2016 and 2017 to provide a comparator over time.

6.2. For the year benchmarked by the HCA, 2015, it is notable that the Association

performed in the lowest (best) quartile for all areas other than revenue maintenance

costs per unit. While external benchmarked data has not been made available for

2016 or 2017, data extracted from the Association’s audited accounts indicates that

the performance trend for these years has remained good, with a 3.85% reduction in

Headline Total Social Housing Cost Per Unit (“CPU”) in 2017.

6.3. However, adding the Association’s Maintenance CPU and Major Repairs CPU together,

we get a cost of £1.73k per unit for total repairs which would place the Association

just better than median for such a combined measure, were one to exist. It is also

the case that our revenue maintenance CPU’s have fallen year on year since 2015,

although capitalised major expenditure has increased – reflecting ongoing,

programmed improvements to our older housing stock.

6.4. Given the age of the Association’s stock, much of which is pre-war, and a significant

amount pre-First World War, this is not considered to be a bad performance. The

Association has long recognised that having been in existence since 1898 over time

some of its stock will become obsolete, and has operated an Asset Management

Strategy (see paragraph 4.2.10) accordingly, so that unreasonable maintenance

costs are avoided and the best use is made of the Association’s capital, recycling it

into new development and improving existing homes only where it is most effective

to do so.

6.5. A review of average costs per property for maintenance spend demonstrates that a

newer property costs only 75% of the level of an older property to maintain, as can

be seen in the chart below. (Note: 1940-49 represents a statistical outlier due to the

exceptionally low proportion of the Association’s homes that were built in this decade

covering WWII and the subsequent austerity period):


6.6. High standards can bring extra cost, however our Executive Committee believe that

given the vulnerable nature of many of the Association’s residents, it is appropriate

that repairs are undertaken to a high standard. Mitigating strategies are in place

however (for instance, due to the structure of the network of contractors employed

and their management, it costs the Association no more to undertake an urgent

repair during working hours, than a routine one).

6.7. New methodologies are always being reviewed for their potential to leverage

efficiency gains, however.

6.8. In recent years, the Association has undertaken a large project to replace and

improve boilers in properties. As part of this project the Association sought

membership of a procurement partnership to reduce the unit costs of boilers

installed. However, in this case it was found that the additional administrative costs

of implementing the partnership outweighed any savings achieved in purchase price,

and moving forward, the Association has returned to traditional tendering procedures

for future work.

6.9. Currently the Association is restructuring its Asset Management and Procurement

functions so that greater information sharing can take place and processes can be

reviewed for their success, or otherwise, on a more timely basis. At the time of

writing this review last year, it was anticipated that the restructuring would be

complete within the 2016-17 financial year, however as the task ended up being

somewhat more complex than initially envisaged, it remains only partially complete,

with recruitment into two new posts still being outstanding.

7. Summary

7.1. This is the fourth VfM Statement produced by the Association, and the third under

the VfM Strategy adopted by the Association in February 2014. It sets out the way in

which the VfM Strategy is being delivered and some of the hurdles crossed in the

way, as well as those areas where improvements can be made. It also sets out the

way in which the Association seeks to allocate resources in order to deliver the


objectives of its Corporate Plan, while delivering efficient procurement and aspiring to

objectives set out in the Association’s new VfM Strategy outlined in May 2017.

7.2. Whilst a high level of satisfaction is delivered, and under the STAR survey

demonstrates a higher proportion of residents who consider the Association’s services

to be Value for Money than ever before, there is no room for complacency, and

ongoing attention is focussed on ensuring the Association’s good position is

maintained within straitened financial circumstances for the sector and against

ongoing uncertainties within the weekly charge setting environment in the medium

term.

Customer Charter Report Mar 2017

Document File Name :

F:\Administration\Committees\Executive Committee\2017\2017-09-21\2017-09-21 Agenda Item 4 - DAMHA VfM Statement

2017 - Appendix 1 - Customer charter report.docx

Appendix 1

Actuals Current Period

Target Last Year End

Current Period

Resident Involvement & Empowerment Telephone calls answered within 15 seconds 99.9% 99.3% 98.0%

Housing applications sent out within one working day 99.9% 99.6% 100.0%

Written correspondence responded to within 5 working days 95.0% 95.2% 95.0%

Telephone messages responded to by following working day 92.0% 97.5% 95.0%

Complaints handled according to procedure 100.0% 100.0% 100.0%

Residents given a minimum of 10 days from receipt of keys to beginning of licence

100.0% 100.0% 100.0%

Home Emergency repairs completed in target 99.87% 99.89% 99.00%

Urgent repairs completed in target 99.56% 98.50% 99.00%

Routine repairs completed in target 99.74% 99.60% 99.00%

Appointments kept (where made) 99.90% 99.60% 100.00%

Re-let properties will meet re-let standard 100.0% 100.0% 100.0%

Neighbourhood & Community Re-let time excluding complex voids 36.5 days 25.4 days 32.0 days

ASB incidents dealt with in accordance with policy 100.0% 100.0% 100.0%

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into

resi

dent

ial c

are.

LPI0

14 -

Dw

ellin

gs v

acan

t an

d un

avai

labl

e to

let

Hof

H0.

50%

0.17

%

LPI0

15 -

Re-

let t

ime

excl

udin

g co

mpl

ex v

oids

Hof

H32

.0 d

ays

25.4

day

s

LPI0

16 -

Tena

ncy

turn

over

Hof

H10

.00%

7.19

%

Hou

sing

Man

agem

ent -

> Le

tting

sS

tock

qua

lity

LPI0

46 -

GN

dw

ellin

gsH

ofH

1,60

0 dw

ellin

gs1,

643

dwel

lings

LPI0

47 -

OP

dw

ellin

gsH

ofH

26 d

wel

lings

26 d

wel

lings

LPI0

48 -

She

ltere

d dw

ellin

gsH

ofH

61 d

wel

lings

61 d

wel

lings

LPI0

49 -

New

ly d

evel

oped

Hof

H5

dwel

lings

0 dw

ellin

gsU

shaw

Moo

r dev

elop

men

t of

5 de

laye

d un

til 2

017/

18LP

I050

- S

ales

Hof

H3

dwel

lings

3 dw

ellin

gsLP

I051

- M

obili

ty s

tand

ard

dwel

lings

Hof

H40

.00%

42.7

0%

LPI0

52 -

Whe

elch

air u

ser

stan

dard

dw

ellin

gsH

ofH

1.00

%1.

05%

LPI0

23 -

Cos

t of e

mer

genc

y re

pairs

Hof

H£1

60,0

00£1

66,0

27Th

ere

was

an

unde

rspe

nd o

n th

e ov

eral

l bud

get f

or re

pairs

th

e fa

ilure

is d

ue to

the

way

th

e bu

dget

was

app

ortio

ned

acro

ss th

e ca

tego

ries

Ass

et M

anag

emen

t ->

Rep

airs

& m

aint

enan

ceV

iabi

lity

CA

3 To

incr

ease

the

bala

nce

of tw

o be

droo

m s

tock

and

del

iver

qua

lity,

wel

l des

igne

d an

d en

ergy

effi

cien

t hom

es, t

hat c

ontr

ibut

e to

the

Reg

iona

l Hou

sing

Str

ateg

y

Fina

nce

and

Adm

inis

trat

ion

-> A

dmin

istr

atio

nS

tock

qua

ntity

CA

5 To

ens

ure

the

Ass

ocia

tion

is v

iabl

e, w

ell m

anag

ed a

nd p

rovi

des

equa

l opp

ortu

nies

for a

ll

acro

ss th

e ca

tego

ries

LPI0

26 -

Cos

t of u

rgen

t re

pairs

Hof

H£1

06,9

80£8

2,00

0

LPI0

29 -

Cos

t of r

outin

e re

pairs

Hof

H£3

28,0

00£2

90,3

37

LPI0

32 -

Cos

t of v

oid

repa

irsH

ofH

£260

,000

£288

,831

Ther

e w

as a

n un

ders

pend

on

the

over

all b

udge

t for

repa

irs

the

failu

re is

due

to th

e w

ay

the

budg

et w

as a

ppor

tione

d ac

ross

the

cate

gorie

s

LPI0

55 -

Tota

l cos

t of r

epai

rsH

ofH

£828

,292

£827

,199

Fina

nce

and

Adm

inis

trat

ion

-> A

dmin

istr

atio

n

Equ

al o

ppor

tuni

ties

LPI0

18 -

BM

E h

ouse

hold

s on

w

aitin

g lis

tH

ofH

77

LPI0

07 -

Liqu

idity

Hof

F10

0.00

%15

3.27

%LP

I008

- N

et in

tere

st c

over

Hof

F13

0.00

%61

6.49

%LP

I009

- G

earin

gH

ofF

100.

00%

74.6

1%LP

I010

- Lo

ng T

erm

Deb

t as

a pr

opor

tion

of N

et W

orth

Hof

F50

.00%

26.9

0%

LPI0

11 -

Sur

plus

/Def

icit

(exc

ludi

ng h

ousi

ng

depr

ecia

tion)

Hof

F£6

65k

£2,5

50k

LPI0

12 -

Cas

h ba

lanc

eH

ofF

£500

k£3

,407

k

LPI0

05 -

Ave

rage

wee

kly

man

agem

ent c

ost p

er u

nit

Hof

F£4

.81

£4.3

4

LPI0

06 -

Ave

rage

wee

kly

mai

nten

ance

cos

t per

uni

tH

ofF

£11.

29£1

0.63

LPI0

01 -

Ren

t Col

lect

ion

Hof

F98

.00%

98.0

7%LP

I002

- C

urre

nt re

nt a

rrea

rsH

ofH

0.75

%0.

43%

LPI0

03 -

Ren

t los

ses

due

to

Hof

H1.

50%

1.05

%

Hou

sing

Man

agem

ent -

> A

rrea

rs m

anag

emen

tV

iabi

lity

Fina

nce

and

Adm

inis

trat

ion

-> F

inan

cial

acc

ount

ing

Via

bilit

y

Fina

nce

and

Adm

inis

trat

ion

-> M

anag

emen

t acc

ount

ing

Via

bilit

y

LPI0

03 -

Ren

t los

ses

due

to

void

sH

ofH

1.50

%1.

05%

LPI0

04 -

Bad

deb

tsH

ofH

0.30

%0.

05%

Alm

shou

se m

anag

emen

t se

rvic

esLP

I053

- M

anag

ed p

rope

rties

Hof

F64

dw

ellin

gs64

dw

ellin

gs

1

CA

6 To

man

age

and

prov

ide

assi

stan

ce in

the

deve

lopm

ent a

nd m

anag

emen

t of h

ousi

ng s

chem

es p

rovi

ded

by o

ther

cha

ritie

s

Fina

nce

and

Adm

inis

trat

ion

-> A

dmin

istr

atio

n

Housemark NE, Yorks Humberside Benchmark Club Survey 31st March 2017

Appendix 3

PIOrganisation

Count

Organisation

Value

Organisation

Rank

Organisation

Quartile

Group

Upper

QuartileLower Quartile

Peer

group

median

Adjusted turnover - central overheads % 28 5.75 14 2 4.95 7.24 5.78

Adjusted turnover - finance costs % 28 2.61 21 3 1.46 2.73 2.22Adjusted turnover - IT & communications costs % 28 2.31 13 2 2.01 2.94 2.52Adjusted turnover - office premises costs (excluding notional office rent) % 28 0.55 2 1 1.06 1.86 1.46Appointments kept as % of appointments made 16 99.65 3 1 98.94 92.04 95.42Average number of calendar days taken to complete repairs 21 6.02 5 1 6.14 9.71 7.35Average number of working days/shifts lost due to sickness absence per employee 24 7.74 7 2 7.65 10.94 9.46Average re-let time in days (standard re-lets) 18 25.40 14 3 14.84 25.40 21.25Average SAP rating of self-contained dwellings at the end of the year 20 78.80 1 1 73.09 70.00 71.55Cost per property - total Anti-Social Behaviour (includes overheads) 28 11.90 1 1 49.72 70.78 60.14Cost per property - total Cyclical Maintenance (includes overheads) 28 188.19 9 2 170.03 309.74 232.65Cost per property - total Cyclical Maintenance (Management) (includes overheads) 28 24.24 7 1 24.82 67.90 38.57Cost per property - total Cyclical Maintenance (Service Provision) (includes overheads) 28 163.94 10 2 142.87 253.86 195.53Cost per property - total Estate Services (includes overheads) 28 136.80 5 1 148.88 269.77 214.00Cost per property - total Housing Management (includes overheads) 28 308.70 1 1 443.05 614.04 532.42Cost per property - total Lettings (includes overheads) 28 97.63 17 3 73.42 132.28 91.34Cost per property - total Major Works & Cyclical Maintenance (includes overheads) 28 861.52 5 1 957.83 1,379.07 1,204.73Cost per property - total Major Works (includes overheads) 28 673.34 7 1 688.11 1,158.13 960.35Cost per property - total Major Works (Management) (includes overheads) 28 40.13 3 1 51.68 117.32 81.24Cost per property - total Major Works (Service Provision) (includes overheads) 28 633.21 8 2 630.92 1,072.29 826.10Cost per property - total Rent Arrears & Collection (includes overheads) 28 99.24 1 1 141.75 194.90 161.81Cost per property - total Resident Involvement (includes overheads) 28 36.71 4 1 46.29 98.93 75.81Cost per property - total Resp. Repairs (Management) (includes overheads) 28 131.37 12 2 108.90 210.85 140.32Cost per property - total Resp. Repairs (Service Provision) (includes overheads) 28 391.96 16 3 319.30 456.40 371.58Cost per property - total Responsive Repairs & Void Works (includes overheads) 28 744.79 10 2 693.01 872.09 770.58Cost per property - total Tenancy Management (includes overheads) 28 63.21 2 1 99.41 134.26 122.01Cost per property - total Void Works (Management) (includes overheads) 28 32.70 5 1 35.96 79.08 65.40Cost per property - total Void Works (Service Provision) (includes overheads) 28 188.76 13 2 134.94 222.43 197.32Evictions due to rent arrears as a % of all tenancies 20 0.00 1 1 0.26 0.54 0.41Number of tenancies terminated as % of properties managed 20 7.95 8 2 7.09 9.77 8.16Overhead costs (excluding notional office rent) % turnover 28 11.23 13 2 10.44 14.23 12.17Percentage of dwellings with a valid gas safety certificate 23 99.94 19 4 100.00 99.99 100.00Percentage of properties vacant and available to let 21 1.22 20 4 0.33 1.03 0.59Percentage of properties vacant but unavailable to let 22 0.17 9 2 0.08 0.88 0.31Percentage of repairs completed at the first visit 15 85.97 12 4 91.46 85.99 88.69Percentage of residents very or fairly satisfied with the repairs service they received 20 91.60 13 3 98.20 89.00 94.45Percentage of staff turnover in the year 23 8.06 4 1 9.37 24.89 19.29Rent arrears of current and former tenants as % of rent due (excluding voids) 22 2.46 4 1 3.01 5.22 4.32Rent arrears of current and former tenants written-off as % rent due 23 0.05 3 1 0.10 0.76 0.52Rent arrears of current tenants as % rent due (excluding voids) 23 2.34 7 2 2.27 3.98 2.62Rent arrears of former tenants as % rent due (excluding voids) 22 0.12 1 1 0.54 1.80 1.30Rent collected from current and former tenants as % rent due (excluding arrears b/f) 23 96.82 23 4 100.20 99.36 99.98Rent loss due to empty properties (voids) as % rent due 23 1.03 15 3 0.51 1.12 0.84Satisfaction - % very or fairly satisfied that their rent provides value for money (GN & HfOP) 23 92.50 2 1 86.50 82.20 84.00Satisfaction - % very or fairly satisfied that their views are being listened to and acted upon (GN & HfOP) 23 78.70 7 2 79.00 70.80 76.00Satisfaction - % very or fairly satisfied with repairs and maintenance (GN & HfOP) 23 92.80 2 1 87.05 79.20 83.00Satisfaction - % very or fairly satisfied with the overall quality of their home (GN & HfOP) 23 95.70 1 1 89.00 84.95 87.00Satisfaction - % very or fairly satisfied with the service provided (GN & HfOP) 24 94.50 3 1 91.55 84.30 89.00Satisfaction - % very or fairly satisfied with their neighbourhood as a place to live (GN & HfOP) 23 97.30 1 1 88.00 84.10 86.90Total cyclical maintenance (management) costs as % of total cyclical maintenance (service provision) costs 28 14.79 7 1 14.87 30.81 21.44Total major works (management) costs as % of total major works (service provision) costs 28 6.34 7 1 6.76 12.46 9.53Total responsive repairs (management) costs as % of total responsive repairs (service provision) costs 28 33.52 12 2 27.60 57.61 38.43Total void works (management) costs as % of total void works (service provision) costs 28 17.32 7 1 18.00 45.91 32.37

STAR (formerly STATUS) SURVEY SUMMARY 2016 Appendix 4

DAMHA DAMHA ChangeHOUSEMARK

2015-16 - GNRanking

2013 2016 Upper quartile

Overall satisfaction with the service - very satisfied (%) 65.7 68.2 2.5

Overall satisfaction with the service - fairly satisfield (%) 28.7 26.3 -2.4

Overall satisfaction with the service - very & fairly satisfied (%) 94.4 94.5 0.1 90.0 2

Satisfaction with overal quality of home - very satisfied (%) 57.7 59.5 1.8

Satisfaction with overall quality of home - fairly satisfied (%) 36.1 36.2 0.1

Satisfaction with overall quality of home - very or fairly satisfied (%) 93.8 95.7 1.9 88.8 1

Satisfaction with neighbourhood -very satisfied (%) 75.6 74.2 -1.4

Satisfaction with neighbourhood -fairly satisfied (%) 20.5 23.1 2.6

Satisfaction with neighbourhood -very or fairly satisfied (%) 96.1 97.3 1.2 88 1

Satisfaction with value for money on rent - very satisfied (%) 59.7 59.7 0.0

Satisfaction with value for money on rent - fairly satisfied (%) 32.5 32.8 0.3

Satisfaction with value for money on rent - very or fairly satisfied (%) 92.2 92.5 0.3 87.9 1

Satisfied with Outcome - satisfied (%) 89.6 90.8 1.2 82 2

Satisfation with repairs - very & fairly satsified (%) 94.1 92.8 -1.3 87 2

Satisfaction with listening & acting upon resident views - very satisfied (%) 51.6 49.1 -2.5

Satisfaction with listening & acting upon resident views - fairly satisfied (%) 33.7 29.6 -4.1

Satisfaction with listening & acting upon resident views - very or fairly

satisfied (%)85.3 78.7 -6.6 76.5 3

Satisfaction with being kept in formed - very good (%) 67.2 62.1 -5.1

Satisfaction with being kept in formed - fairly good (%) 24.8 31.1 6.3

Satisfaction with being kept in formed - very & fairly good (%) 92.0 93.2 1.2 82.4 1

DESCRIPTION

F:\Administration\Committees\Executive Committee\2017\2017-09-21\2017-09-21 Agenda Item 4 - DAMHA VfM

Statement 2017 - Appendix 4 - STAR Survey 2016.xlsx

VFM Efficiency Log 2017 Appendix 5

Title What was the idea What savings were made Notes Date

Working in Partnership

Warden Call maintenance agreement

To work in partnership with Northern

Housing Consortium to secure a 3 year

fixed price service level agreement as part

of North East Procurement for Housing

Time -NHC carried out all tendering work

saving staff time .

Money - NHC secured large discount via

procurement group

Annual savings of approx £15000 2016-17

End of life Smoke detector replacement

costs

Agreement made with tunstall to re-

charge for equipment cost only and let

labour be covered under thestandard SLA

The one off replacement charge £180 will

now be reduced to £75 per replacement

During 2017-18 21 detectors were

changed at a cost of £1575 saving £21002017

Financial Savings

Design & PrintReview of design & print costs carried out

for Banner newsletter & Annual report

Money - annual costs reduced for

agreeing to two year contrac£2195 savings per annum for 2 years 2015-2017

Postal CostsReplace franking machine to allow us to

make use of Royal Mail "mailmark"Money - postage costs reduced

approx £2000 per annum saving expected

per year over 6 year lease2015-2021

Disaster RecoveryRenewed computer security system with

Onyx

Money - annual price reduced for

renewing on 3 year contract£455 per year savings for next 3 years 2015-2018

Water coolerswitch to mains fed instead of bottled to

reduce costs & free up storage spaceMoney - annual price reduced by £250 2017

Mobile phone contractExercise to reduce mobile phone contract

costs

Money - contract costs reduced for two

years

£1500 approx savings per year for next

two years2015-2017

QL user group enhancement levy Look to reduce QL user group chanrges Money - no increase to enhancement levy £1050 plus vat per annum 2016/17

Window cleaning costs Carry out tender for this service Money - annual price reduced Annual saving of £672 2016/17

Newspaper costs Save on sundry office costsMoney - decided to stop delivery of

newspapers to officeAnnual savings £405 2016/17

Sheltered scheme Annual lift maintenance

costsRetender of maintenance costs

Money - new contractor approved costs

reduced to £546 per annumAnnual savings £327 2016/17

Rent Collection Costs Re-tender for rent collection contract

Money - new 2 year contract with Allpay

will save £3900 per annum each year for

two years

£7800 savings over 2 years 2016-2018

Office cleaning costs reduce cost of office cleaningMoney - emplyoy cleaner rather than

using agencyAnnual savings £3500 2017

Improving Service to Residents

Assisting the William Russell Bequest

Charity

In accorance with Core Aim 6 We aim to

become Corporate trustee for the charity

allowing their stock to be managed along

with our own.

Residents of William Russell Bequest

would receive a higher level of service

ensuring vulnerable residents are assisted

according to their needs.

Annual fee of £12k be collected from

William Russell Bequest2016-17

F:\Administration\Homes and Communities Agency\VFM Self Assessment\Vfm statement 2017\VFM Efficiency Log 2017 - v1.xlsx

VFM Efficiency Log 2017 Appendix 5

Assisting the Vesper House Charity

In accorance with Core Aim 6 We aim to

become Corporate trustee for the charity

allowing their stock to be managed along

with our own.

Residents of Vesper House would receive

a higher level of service ensuring

vulnerable residents are assisted

according to their needs.

Annual fee of £5k be collected from

Vesper House2016-17

F:\Administration\Homes and Communities Agency\VFM Self Assessment\Vfm statement 2017\VFM Efficiency Log 2017 - v1.xlsx

Document File Name :

F:\Administration\Committees\Executive Committee\2017\2017-09-21\2017-09-21 Agenda Item 4 - DAMHA VfM

Statement 2017 - Appendix 6 - HCA benchmark.docx

HCA Benchmarked cost data

2017

%

change 2016

%

change 2015

National

Quartile

%

change 2014

Social

Housing Units 1763 (0.28%) 1768 1.43% 1743 n/a 0.06% 1742

Headline

Total Social

Housing CPU

(£k)

2.82 (3.84%) 2.93 5.97% 2.77 Lower 2.28% 2.71

Management

CPU (£k) 0.47 (4.08%) 0.49 (2.76%) 0.51 Lower 3.10% 0.49

Service

charge CPU

(£k)

0.11 (21.43%) 0.14 (4.20%) 0.14 Lower (6.82%) 0.15

Maintenance

CPU (£k) 1.12 (8.20%) 1.22 (1.60%) 1.24 Upper 2.12% 1.21

Major Repairs

CPU (£k) 0.69 27.38% 0.54 9.93% 0.49 Lower 13.38% 0.43

Other social

housing CPU

(£k)

0.46 4.72% 0.43 (0.00%) 0.43 Lower (1.90%) 0.44

Appendix 6

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