BUIDHEANN TIGHEADAS LOCH AILLSE AGUS AN EILEIN SGITHEANAICH LOCHALSH AND SKYE HOUSING ASSOCIATION
BUSINESS PLAN ______
2020/2025
CONTENTS
1. INTRODUCTIONU
2. MEMBERSHIPU OF THE ASSOCIATION
3. THEU MANAGEMENT COMMITTEE
4. STAFFU
5. BUSINESSU PLANNING
6. DRIVERSU FOR CHANGE 6.1 Housing to 2040 6.2 The National Islands Plan 6.3 The Scottish Government Affordable Housing Supply Programme 6.4 The Use of Private Finance and other Funding Sources 6.5 The Energy Efficiency Standard for Social Housing (EESSH) 6.6 Asset Management Strategy 6.7 Welfare Benefit Reform 6.8 Procurement Legislation and Regulations 6.9 Brexit
7. PARTNERSHIPU WORKING AND RELATED ORGANISATIONS U
8. ENVIRONMENTALU ASSESSMENT 8.1 Geography 8.2 Population 8.3 The Economy 8.4 Infrastructure 8.5 Local Housing System Analysis
9. AIMSU AND OBJECTIVES
10. KEYU PRINCIPLES
11. OPERATIONALU OBJECTIVES 11.1 Corporate Services 11.2 Development Services 11.3 Housing Services 11.4 Property and Technical Services 11.5 Care and Repair 11.6 Handyperson Services 11.7 Finance Services 11.8 Energy Advice Services
12. PERFORMANCEU MONITORING 12.1 Service Delivery Standards 12.2 Benchmarking 12.3 Performance Targets 12.4 Internal Audit 12.5 Risk Management 12.6 Scenario Planning
Appendix One: Key Stakeholder Groups Appendix Two: Management Committee Members Appendix Three Management Committee and Audit, Finance and Performance Sub-Committee – Terms of Reference Appendix Four: Staff Structure and Senior Management Team Biographies Appendix Five: Index of Policies and Procedures Appendix Six: Housing to 2040 Principles Appendix Seven: Financial Plan 2020/2025 and Summary Financial Plan 2020/2050 Appendix Eight: Development Strategy Appendix Nine: Asset Management Strategy Appendix Ten: Peer Group Report 2018/2019 Appendix Eleven: Performance Targets 2020/2025 Appendix Twelve: Professional Advisers ______
1. INTRODUCTION
1.1 Buidheann Tigheadas Loch Aillse agus an Eilein Sgitheanaich Limited, also known as Lochalsh and Skye Housing Association, was set up in 1983 as an independent non- profit making housing organisation to develop, manage and maintain housing for rent. Since that time there has been significant growth in the size and geographical spread of the Association's own housing stock within Skye and Lochalsh and we have extended the range of housing options and related services we provide to meet the needs of a wide range of clients.
1.2 We have invested significant resources in the provision of new housing in Skye and Lochalsh and our current rented housing stock of more than 700 properties currently generates an annual rental income in the region of £2.94 million. We anticipate adding an additional 175 properties to our portfolio during the life of this plan which will increase our annual rental income to £4.2 million.
1.3 We have an active Management Committee in control of the organisation and we directly employ 46 members of staff. Our main activities include:- Affordable Rented, Shared Ownership and Shared Equity Housing development Mid-Market Rent Housing (through our subsidiary company) Care and Repair Services Handyperson Services Technology Enabled Care Services Disabled Adaptations Property and Technical Services Project Management Services Rent Collection and Arrears Control Services Factoring Services Energy Advice Services Housing Information and Advice Services
1.4 As the Association has evolved and expanded, we have adopted new and innovative approaches to meeting our objectives and we are committed to working in partnership with individuals, groups and organisations for the benefit of the communities we serve. We are also committed to regularly reviewing our operations to ensure that we are delivering high quality services which are responsive to the needs of our customers and which provide value for money.
1.5 This approach involves the Association in maintaining linkages with our tenants and other customers together with a wide range of other stakeholders within Skye and Lochalsh and Highland-wide. A note of the other Key Stakeholder Groups that we
currently engage with is attached as 24TU Appendix One.U24T
1.6 We recognise the important role that our organisation can play in contributing towards the regeneration of communities and we strive to participate in activities which enable social inclusion and make a positive contribution towards sustaining the social, economic and cultural well being of the whole community. In addition, all of our activities are designed to assist towards achieving the strategic objectives of the Scottish Government and The Highland Council.
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1.7 The13T Association is registered with the following:-
The13T Financial Conduct Authority under the Co-operative and Community Benefit Societies Act 2014, No. 2132 RS
The13T Scottish Housing Regulator as a Registered Social Landlord, No. 324
The13T Office of the Scottish Charity Regulator as a Charity, No. SC038019
The13T Scottish Government as a Property Factor No. PF 000139 The Scottish Letting Agent Register No. LARN 1810015 Information Commissioner’s Office, Registration Reference Z6024339
The13T Association operates under Rules based on the Scottish Federation of Housing Associations’ Charitable Model Rules (Scotland) 2013.
2. MEMBERSHIP33TU OF THE ASSOCIATION
2.1 The Association is formed from a membership base of individuals and organisations who hold one-off share subscriptions of one pound. There are currently more than 170 members and we encourage the widest possible membership to reflect the interests of the communities we serve. We particularly encourage our tenants, sharing owners and equity sharers to become members and to participate in the activities of the Association, as well as community and representative groups.
2.2 All members of the Association are entitled to:-
attend the Annual General Meeting receive a copy of our Annual Report and Financial Statements stand for election to the Management Committee vote in the election of the Management Committee.
3. THEU MANAGEMENT COMMITTEE
3.1 The management of the Association is controlled by a voluntary, unpaid Management Committee which can consist of up to 15 persons (including co-opted persons). One third of the elected members are required to stand down from the Management Committee each year though they can be nominated for re-election if they so wish.
Details of the current Management Committee members are attached as Appendix24TU
Two.U24T
3.2 Meetings of the Management Committee are normally held monthly and the main responsibilities of the Committee include:-
setting the Association's Aims and Objectives agreeing strategies to achieve the Aims and Objectives considering and approving policies and procedures ensuring compliance with all relevant regulatory requirements set out in the Regulatory Framework ensuring compliance with all relevant standards and outcomes in the Scottish Social Housing Charter ensuring compliance with all relevant legislative duties ensuring compliance with the Standards of Governance and Financial Management
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ensuring adequate resources are in place to deliver the activities of the Association.
3.3 Members of the Management Committee are governed by the Scottish Federation of Housing Association’s Code of Conduct for Governing Body Members and are subject to annual appraisals to ensure continuing compliance with the requirements of the Regulatory Framework.
3.4 The Association also has an Audit, Finance and Performance Sub-Committee which meets on a quarterly basis. The Terms of Reference for the Management Committee
and the Audit, Finance and Performance Sub-Committee are attached as AppenU dix
Three.U Other ad-hoc sub-committees may be established by the Management Committee to consider specific governance or business activities that may require more detailed scrutiny.
4. STAFF33TU
4.1 The Management Committee employ staff to provide information and advice to them and to carry out the day to day administration of the Association's activities. It is a particular responsibility of the Committee to ensure that suitably qualified and experienced staff are in post and that the Association's levels of staffing are appropriate to the levels of activity undertaken by the Association. The Association’s current staff structure and brief biographies of the Senior Management Team are
attached as 24TU Appendix FourU24TU .U
4.2 All staff employed by the Association have comprehensive Job Descriptions which are regularly reviewed through the Staff Appraisal System and they are employed on Employers in Voluntary Housing Terms and Conditions of Employment. Staff are also governed by the Scottish Federation of Housing Association’s Code of Conduct for Staff.
5. BUSINESS33TU PLANNING
5.1 The Business Plan sets out the Association’s aims, objectives, key priorities and proposed actions for the period 2020/2025. The Plan is designed to be used as a management tool by Management Committee and staff members and to inform external stakeholders and funders. As such, it identifies targets to be met and the resources, both human and financial, required to implement the Plan. Staff and Management Committee members have been actively involved in the preparation and approval of the Plan and there has been extensive consultation with tenants and key stakeholders.
5.2 This Plan is one of a range of Plans and Strategies which articulate how the Association will deliver its aims and objectives. These include our:-
Development Strategy Asset Management Strategy Procurement Strategy Tenancy Sustainment Strategy Financial Plan Internal Audit Plan Training Plan Business Continuity and Disaster Recovery Plan
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Risk Management Strategy Management Committee and Staff Members Succession Plan
The Association also utilises Working Groups and short-term Action Plans to ensure that a systematic approach is taken to implementing new proposals, service improvements and for managing changes to existing strategies. The current Working Groups cover the following areas of activity:-
Health & Safety Freedom of Information Subject Access Requests General Data Protection Regulation Fire Safety EESSH and EESSH2 District Heating Systems
5.3 In addition, the Association’s Plans and Strategies are supported by a wide range of policies and procedures which detail how we will implement our proposed activities. Our policies and procedures are subject to regular review to ensure that they are consistent with the requirements of the business and regulatory environment within which we operate.
Our Index of Policies and Procedures is attached as 24TUAppendix U24TU Five.U
5.4 Our business planning activity is conducted within a planning framework involving our key stakeholders and, in particular, the Scottish Government Housing Supply Division and The Highland Council as the strategic housing authority. Our objectives, actions and outcomes are particularly linked to:-
The West Highland and Islands Delivery Programme The Highland Local Housing Strategy The Highland Strategic Housing Investment Plan The Highland Homelessness Strategy The Highland Health and Social Care Integration Scheme The Highland Fuel Poverty Strategy
5.5 The operating environment for the Association is challenging and fast-changing. In Section 8 we identify the key features of the operating environment that the Association has used to help shape our aims and objectives. However, that operating environment is also influenced by a range of other significant factors which we need to take account of and which may have a long-term impact on our activities. Our aims, objectives and actions are consistently reviewed and adjusted in response to these challenges which are identified in Section 6 below.
6. DRIVERS33TU FOR CHANGE
6.1 Housing to 2040
In the Spring of 2020, the Scottish Government intends to publish its vision for Housing to 2040. The Government wants everyone in Scotland to have a home that is warm, affordable and accessible and that fits their needs. They also want to ensure that the housing system is dynamic and resilient enough to respond to future changes and can help to address the challenges we are facing, including an ageing population and a global climate emergency.
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The Scottish Government has published the principles that underpin their vision and these are attached as Appendix Six. The Association will ensure that its plans and strategies are in alignment with the Housing to 2040 vision.
6.2 The National Islands Plan
The Scottish Government has published a National Islands Plan which has a duration of five years.
This Plan will support the vision of Housing to 2040 and has evolved from existing housing related initiatives, policies, strategies and actions, in particular, the Scottish Government’s More Homes Scotland approach which aims to increase supply across all tenures. The Association will support the requirements of the National Islands Plan through the use of national funding programmes including the Affordable Housing Supply Programme, the Housing Infrastructure Fund and the Self-Build Loan Fund.
6.3 The Scottish Government Affordable Housing Supply Programme
The Scottish Government has brought together Council and RSL funding streams into one housing budget. The Highland Council are responsible for agreeing a programme of affordable housing developments based on the Local Housing Strategy and the Strategic Housing Investment Plan. The subsidy levels available to the council and to RSL’s are in line with the Government’s national strategy for housing supply which is to build 50,000 affordable homes by 2022, of which 35,000 are to be for affordable rent.
Due to the increased level of resources made available for the Affordable Housing Supply Programme, together with the new levels of grant funding per unit, the Association is continuing to deliver a programme of new housing on its own behalf which is intended to provide over 175 additional affordable rented housing units by 2023.
We also plan to continue to act as the agents of The Highland Council for the development of a number of new housing projects in the area on their behalf. These agency arrangements enable the Association to manage the risks attached to new build development whilst obtaining valuable project management and technical services fee income to support our activities. The Association’s Development Strategy are attached as Appendix Eight.
6.4 The Use of Private Finance and other Funding Sources
The Association has a successful track record of attracting private finance from a wide variety of commercial lenders at competitive terms to support its development activity. The challenges we face in obtaining private finance include:- minimising the cost of finance and associated arrangement fees; meeting the requirements of lenders to provide appropriate levels of asset cover as loan security; complying with all financial covenants. We have mitigated the risks attached to our borrowing activity by procuring the provision of private finance on a competitive basis.
In a climate of increasing development activity, the Association is constantly investigating and utilising new opportunities for securing additional funding from
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the widest range of other funders to support our activities. Examples of such funding include:-
Landbank funding from The Highland Council for site acquisitions. Development and Infrastructure Grant funding from The Highland Council to support high-cost projects. Grant funding from NHS Highland, The Highland Council and charitable sources for the revenue costs of our Handyperson Services, including our Technology Enabled Care activities. Highland Council revenue and capital Grant funding for our Care & Repair Services. Bond funding from the Scottish Government.
Additional private finance will be procured throughout the period of this plan to support our Development Programme and other investment activities.
6.5 The Energy Efficiency Standard for Social Housing (EESSH)
Further enhancements to the quality of some of our housing stock are a requirement of the Energy Efficiency Standard for Social Housing which RSL’s are required to meet by December 2020. We anticipate that the significant investment we have made to date to include renewable energy systems and other energy efficiency measures in our existing housing stock will greatly assist in achieving compliance with the new standard well in advance of the Government’s target date and without the need to borrow additional finance from external sources.
The persistent rises in the cost of energy that continue to be experienced by householders’ present significant challenges to RSL’s operating in off-gas areas (as Lochalsh & Skye Housing Association does). The research work carried out by our Energy Advice Services team provides conclusive evidence that energy costs are often the single greatest stress on household income and with energy prices continuing to move away exponentially from average household incomes, it is imperative that we provide and sustain appropriate tenant support mechanisms. In addition, we propose to continue to support households in the private sector who face similar challenges.
We have developed strategies, including an EESSH Action Plan, to enable us to meet these challenges and we propose to continue and sustain our Energy Advice Services activities through the period of this plan. We will also continue to contribute to Scottish Government consultations on the proposed new EESSH standards which will be introduced from 2020.
6.6 Asset Management Strategy
The Association’s approved Asset Management Strategy is updated annually in accordance with the “Recommended Practice on Strategic Asset Management” published by the Scottish Housing Regulator.
The Association is engaged in a continuous programme of comprehensive stock condition surveys on a three-yearly cycle. The data collected from the surveys provide the Association with a comprehensive database on stock condition and informs our planned, cyclical and reactive maintenance programmes which are reviewed and approved on an annual basis. The strategy will ensure that we are
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able to maximise our rental income, plan effectively to implement property improvements and provide our tenants with the high standard of accommodation that they require at affordable rents. The Association’s Asset Management Strategy and Asset Management 2020/2021 is attached as Appendix Nine.
6.7 Welfare Benefit Reform
The UK Government has introduced significant reforms to the Welfare Benefit system including Housing Benefit and the Local Housing Allowance. Universal Credit was introduced to the whole of Highland in February 2015 and continues to be rolled out incrementally across the UK.
The impacts of these reforms on both the Association and our tenants continue to be assessed. In response to the potential for increased rent arrears (and therefore a threat to our most important income stream and to tenancy sustainment) the Association has deployed additional staff resources to our tenant advice, rent collection and arrears management activities and will continue to monitor the effectiveness of our responses to these challenges.
We have also approved a Tenancy Sustainment Strategy which details the measures we will undertake to provide additional support and assistance from the Association and external agencies in order that our tenants are able to successfully sustain their tenancies in challenging financial circumstances.
6.8 Procurement Legislation and Regulations
All housing associations are required to achieve compliance with the Procurement Reform Act 2014 and the EU Public Procurement Directive 2014. The Association continues to participate in a Procurement Capability Assessment and Action Plan with Scotland Excel together with a training programme on our approach to procurement. This work has led to the development of a new Procurement Strategy and Contract Register to ensure compliance with the legislation and new regulations.
6.9 BrexitU
The potential impacts of leaving the European Union have been considered by the Association and have been added to our Risk Register. The Association is alert to the ongoing negotiations between the UK Government and the EU but at this stage we consider that it is too early in the negotiation process to formulate any detailed plans to deal with specific risks and issues. We will continue to monitor the situation closely and ensure that we follow the guidance produced by our Federation and regulatory sources.
7. PU ARTNERSHIP WORKING AND RELATED ORGANISATIONS
The Association’s aims and objectives as described in the Business Plan can only be delivered by working closely with a wide range of public, private and third sector partners. Partnership working enables the Association to deliver a wide range of objectives efficiently to manage risks effectively and to achieve best value for money for the public pound. The Association is directly linked to the following organisations:
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TheU Highland Housing Alliance The Highland Housing Alliance is a development company set up in 2007 to work in partnership with The Highland Council, housing associations, the Scottish Government, private landowners and developers to help build more homes of all tenures for people in the Highlands. It is owned by five housing associations working in Highland (including LSHA), one housing trust and The Highland Council. The Association’s Chief Executive is currently a Board Member of the Company.
TheU Highlands Small Communities Housing Trust The Highlands Small Communities Housing Trust is a housing charity owned by housing associations working in Highland (including LSHA) together with The Highland Council. It was set up in 1998 to help rural communities secure long term solutions to their local housing needs. The Association’s Chairperson is a member of the Trust and the Chairman of the Board of the Trust is also a member of the Association’s Committee.
NorthU West Highland Community Enterprises Limited The Association has established this wholly-owned non-charitable subsidiary to carry out activities on behalf of the Association which may be deemed to be “trading activities”. There is an Independence Agreement in place which regulates the relationship between the Association and its subsidiary company. The Company current leases 5 No. mid-market rent properties from the Association. The Association is represented on the Board of the Company and the Chief Executive of the Association acts as Company Secretary.
NHSU Highland and The Highland Council The Association receives grant funding from NHS Highland and The Highland Council for the provision of Care & Repair and Handyperson Services. The relationship between the partners is governed by Service Level Agreements. The Association has further developed this partnership working into Technology Enabled Care (TEC) and the operation of Community Stores. Technology Enabled Care (TEC) is a partnership approach which supports discharge planning, reduces delayed discharges, supports people with dementia and their carers, reduces emergency and unplanned admissions, helps reduce the length of stay in hospital, enables people to remain at home safely for longer and supports people to self-manage their health and wellbeing. TEC is being developed across Highland as part of a Scottish Government initiative and the Association’s Director of Investment is taking the lead for all five Highland Handyperson Agents in negotiating 3-year extension of the Tripartite Service Level Agreement with NHS Highland and The Highland Council. In addition to TEC, the Association’s Handyperson Service’s Community Stores model is being fully considered by NHS Highland for rolling out across Highland and operated on a similar basis by the other Highland Handyperson Agents.
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Skye and Lochalsh Citizens Advice Bureau Skye and Lochalsh Citizens Advice Bureau (CAB) plays a crucial role in providing good quality advice and information to a wide range of clients including the Association’s tenants and owners. This has been particularly important during the on-going process of Welfare Benefit reform which is estimated to continue for some time to come. The Association’s Director of Investment is currently the Chairman of the Board of CAB. Skye and Lochalsh Mental Health Association This charitable organisation operates a Drop-In Centre in Portree and an Outreach Service throughout Skye and Lochalsh to support clients with mental health issues. The Mental Health Association receives significant financial support from NHS highland and this allows them to play a crucial role in assisting their clients in social housing to sustain their tenancies. The Housing Association is represented on the Board of the organisation by the Chief Executive. Skye, Lochalsh and Wester Ross Community Planning Partnership This partnership is responsible for the preparation and implementation of Locality/Community Learning and Development Plans together with plans for Services for Children and Services for Adults. The current focus of the locality plans is on Portree and North/East Skye and Kyle of Lochalsh. The partnership is a forum for both statutory and voluntary organisations and the Association is regularly represented at their meetings. Partnership Meetings The Association also actively participates in a wide range of regular meetings which co-ordinate and deliver our partnership working, including: Housing Strategy Group Health, Housing & Social Care Forum Housing Development Hub Highland Care and Repair and Handyperson Services Partnership Group Care and Repair Working Group Affordable Warmth Partners Working Group Highland Housing Register Partnership Groups NHSH, TEC and Community Stores Project Boards
8. ENVIRONMENTAL ASSESSMENT
The geographical, social, economic, cultural and political environment within which the Association operates is fundamental to the formulation of our aims and objectives. Key features of the Skye and Lochalsh, Highland and Scottish environment are described below.
8.1 Geography
Skye and Lochalsh comprises an area of 2,700 square kilometres and has a population density of 4.8 persons per square kilometre – below the average for the Highlands as a whole which is 8.0 persons per square kilometre.
The area is characterised by a large number of small dispersed communities together with the 3 main settlements of Portree, Broadford and Kyle of Lochalsh.
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The natural environment and scenic beauty of the area are world renowned and is attractive to residents and visitors alike.
8.2 Population
The population in 2019 was estimated to be 13,100 people but this is projected to continue to increase over the next 25 years by nearly 12% to 14,700 people.
The number of deaths in the area continues to exceed the number of births and, therefore, the rise in population is due to an increase in the level of in-migration to the area.
The projected change in population does not occur at the same pace across all the age groups. The population aged 0-4 years is projected to grow as a result of trends in births and small migration gains among the population in the key age range for family formation. There is projected loss of population in the 16-24 age range that will relate to the movement of younger people seeking educational and employment opportunities outwith the area. The population aged 45-64 years is projected to decrease as the current larger cohorts move into older age groups and these people are replaced by the smaller number currently aged 25-40.
The population aged over 75 years living in Skye and Lochalsh is anticipated to increase by nearly 150% to over 3,000 people by 2041 – one in five of the total population. There are projected to be 470 people aged over 90 years old living in the area by 2041 – there are currently 130. This ageing of the population has substantial implications for the provision of elderly services.
8.3 The Economy
The economy is dominated by the primary and service sectors with administrative jobs in the service sector representing 84% of all employment.
Tourism, crofting, fish farming and estate work provide core employment opportunities but minimal economic growth is expected in the short term and many of the area’s more remote communities are extremely fragile.
Housing-related construction is a key element of the local economy and is particularly important to a large number of small employers.
The area is characterised by a high proportion of part-time jobs and seasonality of employment linked to the tourism industry. Within Skye and Lochalsh, self- employment levels are19% compared to 7.5% in the rest of Scotland. The recent surge in tourism may impact on the availability of employment and could result in skill shortages in particular sectors of the hospitality industry – as well as impacting on the housing sector. There is currently no definitive information available to analyse the impact of these changes.
In common with many other remote areas, Skye and Lochalsh is particularly disadvantaged by high fuel, energy and living costs.
8.4 Infrastructure
The trunk road network linking the area to main cities is generally good but distance is problematic.
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Public transport links are limited and infrequent.
There are no air links within Skye and Lochalsh apart from emergency service arrangements but Inverness airport passenger numbers and services have grown year on year.
Outwith the main centres of population, water, wastewater, telecommunications and energy infrastructure tends to be at capacity, of low standard or no effective infrastructure exists. However, there have been improvements in infrastructure provision in the main centres of population in recent years.
8.5 Local Housing System Analysis
There is high demand for Highland Council and Association affordable rented housing. The housing list and transfer list of The Highland Housing Register (HHR) for Skye and Lochalsh contains more than 350 applicants consistently throughout the year. Approximately 10% (90) of Council and Association re-lets occur each year.
Access to home ownership for local people is chronically difficult due to high prices, high living costs and relatively low incomes.
The total dwelling stock in Skye and Lochalsh is 7,103 of which 5,746 are permanently occupied. It is estimated that 17.2% of the dwellings are second/holiday homes and vacant dwellings account for 1.9% of the stock.
The Scottish House Condition survey (Dec 2015) concluded that a quarter of households find that their heating keeps them warm in winter only sometimes (20%) or never (5%). The Energy Efficiency measurement of private sector properties in Highland shows that Highland is the third poorest of all local Authorities in Scotland and 52% of households experience fuel poverty.
The abolition of the priority need test and the requirement to provide settled accommodation for homeless applicants presents significant challenges both in Skye and Lochalsh and across Highland. The Association is committed to working with partners to consider solutions that increase housing options, particularly in the private rented sector. However, there is growing evidence that private rented sector solutions may be constrained by the considerable recent increase in properties being used for tourism purposes and by the new requirements of the Private Residential Tenancy legislation which may deter private owners from making properties available for homelessness purposes. Increasing the supply of affordable housing is the preferred solution to homelessness.
There is a lack of supported accommodation for frail older people, people with mental illness, vulnerable homeless people, people recovering from substance abuse and young people. Our housing development plans aim to assist in addressing these accommodation shortages and our joint working with NHS Highland and other care providers is designed to ensure that appropriate care can be provided as required.
There are particular issues emerging in relation to the impact of housing shortages on the recruitment and retention of specific key workers, particularly in the health and social care sectors.
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9. AIMS AND OBJECTIVES
9.1 The Association’s aims are:-
To work in partnership to provide access to high quality affordable housing solutions and related services and to contribute to the improvement of the social, economic and cultural wellbeing of the whole community.
9.2 Our Strategic Objectives which support these aims are:-
To provide access to a wide range of high quality affordable housing solutions for those in need in both the rental and home ownership sectors.
To ensure that remote and rural settlements with housing needs are supported by our housing investment activities.
To promote energy efficiency and to assist in the reduction of carbon emissions and the eradication of fuel poverty.
To deliver high quality services and standards across the whole range of our activities.
To work within a policy framework and financial environment which deliver, cost efficiency, financial viability and value for money.
To ensure accountability, openness and compliance in the governance of the Association’s activities.
To support all of the work of the Association by the efficient and effective use of financial, human and information resources.
To provide equality of opportunity and access to all our services and activities.
10. KEY PRINCIPLES
10.1 The Key Principles which support our Strategic Objectives are:-
To strive to ensure that the cost of housing solutions is affordable to the level of income of our client groups.
To help create balanced, successful and sustainable communities through the provision of solutions that best meet local needs.
To help support our Management Committee and staff members to achieve their collective and individual ambitions to develop the Association as an efficient, effective and successful organisation.
To act as excellent employers to our staff and to maximise their potential through investment in training and development.
To promote best practice in all companies and organisations who provide services to the Association.
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To promote effective tenant involvement and ensure that tenants have the maximum opportunity to influence service provision, policies and procedures that affect them.
To foster a culture which ensures that all staff and Management Committee members deal with our customers in accordance with our Customer Services Charter commitments, which are:-
To treat everyone fairly, equally and sensitively To be courteous, friendly and efficient To be as open, informative and accessible as possible whilst respecting confidentiality To strive to improve our service standards by reviewing them regularly and using feedback from our customers To monitor our performance against our targets and publishing the results.
To promote and actively participate in good partnership working with all our stakeholders to help achieve our aims and objectives.
10.2 The Association considers that these aims, objectives and key principles are consistent with and support our charitable objects, which are:-
To provide for the relief of those in need by reason of age, ill-health, disability, financial hardship or other disadvantage through the provision, construction, improvement and management of land and accommodation and the provision of care; and Any other purpose or object permitted under Section 24 of the Housing (Scotland) Act 2010 which is charitable both for the purposes of Section 7 of the Charities and Trustee Investment (Scotland) Act 2005 and also in relation to the application of the Taxes Acts. The permitted activities and powers of the Association will include anything which is necessary or expedient to help the Association achieve these objects.
11. OPERATIONAL OBJECTIVES
11.1 CORPORATE SERVICES
Over the next five years we aim to achieve the following objectives. TIMESCALE (Years) 11.1.1 Regularly review, with stakeholders where necessary, the Association’s operations in the context of our planning framework and 1 - 5 work towards the achievement of the “Housing to 2040” Principles.
11.1.2 Participate with partners in the Community Planning process through the Health, Housing and Social Care Forum, the Community Planning Partnership and other appropriate working groups to ensure that 1 - 5 housing is at the heart of strategies which contribute to community regeneration and sustainability.
11.1.3 Engage with partners on a highland-wide basis to plan and implement 1 - 5 the Strategic Housing Investment Plan (SHIP) and to attend the
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TIMESCALE (Years) Housing Development Hub meetings as required.
11.1.4 Work with partners to ensure the availability of sufficient financial resources to implement the Highland Housing Strategy and maximise the use of the Highland Landbank and Infrastructure Funds and other 1 - 5 funding sources, including sources of private finance.
11.1.5 Continue to review our Policies, Procedures and Practices to ensure compliance with all relevant legislative duties, the requirements of regulatory bodies and best practice, in particular, the Regulatory 1 - 5 Framework and the Standards of Governance and Financial Management.
11.1.6 Continue to annually review the strengths, skills and composition of our Management Committee and take action to meet any identified 1 - 5 training needs.
11.1.7 Continue to review through the annual Staff Appraisal system the knowledge level and skills of staff to ensure that they meet our 1 - 5 operational requirements and update the Training Plan accordingly.
11.1.8 Facilitate the recruitment and retention of suitably qualified staff through adherence to Employers in Voluntary Housing Terms and Conditions of Employment and the provision of good quality 1 - 5 employment benefits.
11.1.9 Implement the approved annual Internal Audit Plan and take action timeously on any recommendations made by auditors. 1 – 5
11.1.10 Review the results of Customer Satisfaction Surveys, publish outcomes in accordance with the Charter and produce Action Plans to 1 - 5 correct any deficiencies.
11.1.11 Continue to monitor achievement against Performance Targets, publish outcomes and produce Action Plans to correct deficiencies. 1 - 5
11.1.12 Regularly publish information on the Association’s activities and achievements through Newsletters, Annual Reports, Web Links, 1 - 5 Social Media and National and Local media.
11.1.13 Continue to develop Health and Safety awareness and ensure compliance with our Policy, Procedures and best practice through the 1 - 5 Health & Safety Working Group.
11.1.14 Work with partners, including The Highland Council and Skye and Lochalsh Citizens Advice Bureaux in the administration of Universal 1 - 5 Credit and other related benefits to minimise difficulties for claimants.
11.1.15 Continue to support all of the Association’s activities through increased and more effective use of E-Business systems. 1 - 5
11.1.16 Prepare new Rules of the Association and seek the approval of the 1 membership for these at a Special Annual General Meeting.
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TIMESCALE (Years)
11.1.17 Work with Highland-wide partners to consider the potential for efficiency savings and service improvements from joint procurement 1 - 2 and/or shared services.
11.1.18 Assist and support existing and new tenants to sustain their tenancies through the provision of targeted advice and information from our Tenant Adviser and other relevant staff members in accordance with 1 - 5 our Tenancy Sustainment Strategy.
11.1.19 Consider the potential for procuring additional office/workshop accommodation in Portree, Isle of Skye for our Technical, Property 1 and Handyperson Services.
11.1.20 Implement proposals to establish a new office base in Kyle of 1 Lochalsh.
11.1.21 Liaise with the Association’s solicitors in order to update and review the Association’s titles database to ensure we hold copies of all titles 1 - 2 and associated relevant documents in house.
11.1.22 Liaise with the Association’s solicitors to seek the Voluntary Registration of those Association property titles which still remain on the non-map based Sasine Register to co-operate with the Scottish 1 - 2 Ministers requirement that the Keeper of the Registers of Scotland complete the map based land register for Scotland by 2024.
11.1.23 Continue to work with the Scottish Government in the administration of Shared Equity housing and liaise with all partners to review possible further provision and development of such housing in addition to 1 - 5 Shared Ownership and Mid-Market Rent housing.
11.1.24 Regularly review and improve rent arrears recovery procedures with tenants and the Association’s solicitors. 1 - 5
11.1.25 Review our requirements for mid-market rental properties and implement any proposals for change. 1
11.1.26 Monitor and ensure appropriate professional development training of Association staff relative to our role as letting agents for private 1 landlords.
11.1.27 Regularly monitor and review our compliance with data protection, Freedom of Information and Subject Access Requests policies through 1 the Working Group established for those purposes.
11.1.28 Create a new post of full-time Director of Finance. 1
11.1.29 Create a new post of Tenant Engagement and Support Manager. 1
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11.2 DEVELOPMENT SERVICES
During the period of this plan, we will contribute to meeting the requirements of the Strategic Housing Investment Plan and will fund and deliver our Asset Management Strategy to ensure that we meet the needs of all our tenants.
We will also deliver repairs and improvements to elderly and/or disabled occupants in the private sector through the Care and Repair programme that we operate on behalf of The Highland Council.
Individual home ownership will be supported through Shared Equity sales. We will continue to invest in our existing housing to ensure that all of our properties meet the Energy Efficiency Standard for Social Housing by 31 December 2020.
Our Development Services objectives are:- TIMESCALE (Years) 11.2.1 Implement the proposed housing development programme agreed with The Highland Council and the Scottish Government. 1 - 5
11.2.2 Work with Housing and Property Services to identify the requirements for disabled adaptations to our existing housing stock and undertake 1 - 5 identified works.
11.2.3 Contribute with Property and Technical Services to the process of delivering our Asset Management Strategy. 1 - 5
11.2.4 Oversee the delivery of the Asset Management Programme in conjunction with Property and Technical Services and ensure that all of our housing stock meets, or exceeds, the Energy Efficiency 1 - 5 Standard for Social Housing.
11.2.5 Provide Clerk of Works and Project Management services to support the Development and Planned Maintenance programmes and to actively seek new business opportunities to provide these services for 1 - 5 external clients to generate increased revenue income from fees.
11.2.6 Provide Construction Design and Management (CDM) Advisory services for all projects and seek to continue to extend the role to the private sector and other agencies to generate revenue income from 1 - 5 fees.
11.2.7 Continue to work with partners at the Housing Development Hub to identify development opportunities and minimise development 1 - 5 constraints in respect of planned projects.
11.2.8 Seek to continuously improve “Firm Foundations” our Standard Specification and performance standards for all key components used in our housing stocks in partnership with The Highland Council and 1 - 5 other housing partners in Highland.
11.2.9 Work with Housing Services, The Highland Council and local property agents to target home ownership and mid-market rent opportunities in 1 - 5 targeted locations to appropriate client groups.
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TIMESCALE (Years) 11.2.10 Continue to work with and support individual communities, specialist groups, Community Councils and partner agencies to identify housing 1 - 5 needs and potential appropriate and sustainable solutions.
11.2.11 Continue to implement proposals to reduce fuel poverty and maximise the use of sustainable energy solutions and grant funding from 1 - 5 external bodies.
11.2.12 Continue to work in partnership with Community Trusts and The Highlands Small Communities Housing Trust, the National Trust for Scotland, Highlands and Islands Enterprise, Link Housing Association, Trust Housing Association, the Highland Housing Alliance, Police 1 - 5 Scotland and NHS Highland to deliver shared objectives and joint projects.
11.2.13 Continue to work in partnership with Highlands & Islands Enterprise, The Highland Council and Community Trusts in general to implement the actions identified in the Portree Development Ideas Study and 1 - 5 other Community Development Plans.
11.2.14 Monitor satisfaction with completed property units through post- completion Customer Satisfaction Surveys and implement any 1 - 5 identified improvements required.
11.3 HOUSING SERVICES
We will work with tenants and key stakeholders to continuously improve our Housing Services to meet the following objectives:- TIMESCALE (Years) 11.3.1 Maximise the effective use of the public sector housing stock by partnership working with The Highland Council and other housing 1 - 5 providers.
11.3.2 Minimise void periods in our own housing stock and achieve our performance targets through effective allocations management and compliance with Change of Tenancy and Void Management 1 - 5 Procedures.
11.3.3 Research the potential need for interim accommodation and associated support for young people and consider appropriate 1 - 2 solutions to meet identified needs.
11.3.4 Maintain comprehensive, accurate and up to date information on the 1 – 5 Highland Housing Register housing and transfer lists.
11.3.5 Work with Highland-wide partners in operating the Highland Housing Register and to contribute to the further development of joint working 1 – 5 to enhance the effectiveness of the Register, including a joint database of housing properties.
11.3.6 Work in partnership with The Highland Council to fully implement the
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TIMESCALE (Years) Homelessness Strategy and to support existing and new initiatives 1 – 5 through a “Housing Options” approach.
11.3.7 Regularly review the Highland Housing Register Allocations Policy and associated procedures to ensure compliance with current legislation 1 – 5 and best practice.
11.3.8 Work with The Highland Council, Police Scotland and other partners to implement the terms of the Highland Partnership Anti-social Behaviour 1 – 5 Protocol.
11.3.9 Maximise the use of our Web Site and Social Media to provide online 1 – 5 services to tenants and applicants.
11.3.10 Review and improve, if necessary, the quality and range of written 1 – 5 information provided to tenants and applicants.
11.3.11 Monitor satisfaction with our allocations process through Customer 1 - 5 Satisfaction Surveys.
11.3.12 Work with Development Services to target home ownership and mid- 1 – 5 market rent opportunities to appropriate client groups.
11.3.13 Contribute to the evaluation of design proposals and the Association’s 1 – 5 Standard Specification to ensure they meet the requirements of our client groups.
11.3.14 Work with partners to increase the availability of housing and appropriate support services for clients with special needs including 1 – 5 young people, vulnerable people, people with mental health difficulties and people with other community care needs.
11.3.15 Continue to actively support and promote the development of tenant participation and scrutiny including joint working with The Highland 1 – 5 Council if appropriate.
11.3.16 Promote the Highland House Exchange website as a means for our 1 – 5 tenants to potentially find a swap to alternative accommodation.
11.3.17 Work with The Highland Council to ensure a sufficient supply of high quality temporary accommodation for the homeless including the use 1 – 5 of Association stock as temporary accommodation.
11.4 PROPERTY AND TECHNICAL SERVICES
We will continue to provide a high quality, cost effective and efficient maintenance and repairs service to ensure our housing stock, factored properties and other property assets retain their investment value and remain attractive to tenants and sharing owners and those applying to us for housing. Our Property and Technical Services objectives are:-
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TIMESCALE (Years) 11.4.1 Comply with all legislative legal duties and Codes of Good Practice 1 – 5 and meet agreed Performance Standards.
11.4.2 Comply with the Scottish Government’s requirement to ensure that all our housing continues to pass all elements of the current Energy 1 – 5 Efficiency Standard for Social Housing (EESSH) BY 31 December 2020 and work towards the requirements of EESSH2.
11.4.3 Comply with the Scottish Government’s requirements to ensure all our 01/02/21 stock meets Fire Safety Legislation.
11.4.4 Maintain comprehensive, accurate and up to date information on the condition of our housing stock and property assets on the Property 1 – 5 Portfolio database including details of all repairs, adaptations and improvements carried out.
11.4.5 Carry out a rolling programme of estate condition surveys ensuring 1 – 5 100% coverage on a biannual basis.
11.4.6 Deliver our Asset Management Strategy making full use of feedback 1 – 5 from property and estate survey information.
11.4.7 Ensure delivery of the annual Asset Management Programme within 1 – 5 approved costs and timescales.
11.4.8 Meet or exceed the target response times for all categories of repairs 1 – 5 and review targets regularly.
11.4.9 Maintain and update a comprehensive contracts register in 1 – 5 accordance with our Procurement Strategy.
11.4.10 Directly employ operatives to deliver any aspects of our Property Services and Asset Management operations where cost and efficiency 1 – 5 savings can be identified.
11.4.11 Maintain the lease agreement for the provision of short-term workshop accommodation and seek a longer-term alternative. 3
11.4.12 Deliver any aspect of our Property and Technical Services work through long-term Partnership Agreements where cost and efficiency 1 – 5 savings can be identified.
11.4.13 Work with Development Services to ensure that our housing stock is suitably adapted for use by elderly and/or disabled people. 1 – 5
11.4.14 Continue to implement quality control measures and monitor customer satisfaction with all aspects of our Property and Technical Services 1 – 5 work.
11.4.15 Deliver efficient and effective Change of Tenancy procedures in conjunction with Housing and Finance Services to minimise void 1 – 5 losses.
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TIMESCALE (Years) 11.4.16 Work with Development and Energy Advice Services to maximise the use of government assisted grant schemes to support our activities. 1 – 5
11.4.17 Review the potential for generating new business through partnership working arrangements with other organisations and/or the provision of 1 – 5 services to the private sector.
11.4.18 Ensure the effective implementation of the Association’s Factoring 1 – 5 Policy.
11.4.19 Maintain adequate and accurate records and filing systems to ensure the effective and efficient delivery of Property and Technical Services 1 – 5 functions.
11.4.20 Continue to work with Angus Biofuels via the Energy Supply Contract in the operation and management of all aspects of the Biomass 1 – 5 District Heating System at Home Farm, Portree, on a sustainable basis.
11.5 CARE and REPAIR
Care and Repair aims to provide a quality value for money service which allows elderly and/or disabled people to remain within their own homes and communities by assisting with repairs and improvements to private sector properties. TIMESCALE (Years) 11.5.1 Work in partnership with the Highland Care & Repair and Handyperson Agents and continue to act as the Lead Agent to enable the partners to work together effectively to achieve their objectives as 1 - 5 set out in the Care & Repair Partners’ Agreement.
11.5.2 Implement the Care and Repair Service Level Agreement/Contract and achieve spend and unit completion targets. This will assist approximately 300 individual applicants and achieve an estimated 1 – 5 spend of £1.5 million across the period of the plan.
11.5.3 Work in partnership with NHS Highland and The Highland Council and other agencies to target investment to the elderly and/or disabled 1 – 5 households to improve their homes.
11.5.4 Improve the quality of private sector housing in Skye and Lochalsh. 1 – 5
11.5.5 Assist eligible people in these client groups to remove the financial and practical barriers which they face in improving and repairing their 1 – 5 homes.
11.5.6 Ensure that improvement and repair works for the client groups meet their specific needs and are achieved in a way which provides best value. 1 – 5
11.5.7 Liaise with NHS Highland and The Highland Council to set targets for 1 – 5
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TIMESCALE (Years) the number of major improvement projects to be processed each year and the total investment to be spent on Care and Repair activities.
11.5.8 Monitor the allocation system prioritising the case loads and avoiding 1 – 5 demand-led prioritisation.
11.5.9 Encourage and help private owners and private landlords to take more 1 – 5 responsibility for maintaining their homes.
11.5.10 Liaise with the Energy Advice Service to assist the client group out of fuel poverty by improving the energy efficiency of their homes and 1 – 5 other appropriate measures.
11.5.11 Adhere to the Service Level Agreement between the Association and 1 – 5 The Highland Council achieve targets.
11.5.12 Adhere to the Good Practices Manual produced by The Highland 1 – 5 Council.
11.5.13 Maintain compliance with the Care and Repair Scotland Quality Mark. 1 – 5
11.6 HANDYPERSON SERVICES
In Partnership with The Highland Council and NHS Highland, the following objectives have been agreed:- TIMESCALE (Years) 11.6.1 Work in partnership with the Highland Care & Repair and Handyperson Agents and continue to act as the Lead Agent to enable 1 – 5 the partners to work together effectively to achieve their objectives as set out in the Care & Repair Partners’ Agreement.
11.6.2 Implement the Handyperson Services Contract/Service Level 1 – 5 Agreement and achieve targets.
11.6.3 Assist elderly and/or disabled clients through the provision of a small 1 – 5 repairs service.
11.6.4 Operate Joint Equipment Stores in Portree and Broadford in 1 – 5 collaboration with Adult Services of NHS Highland.
11.6.5 Assist in the collection, delivery, storage, maintenance, cleaning and record keeping in respect of all equipment provided by Adult Services 1 – 5 of NHS Highland.
11.6.6 Support the role of the Local Advisory Group and provide relevant reports and information to enable the Group to carry out its functions. 1 – 5
11.6.7 Contribute towards meeting the aims and objectives of the Association and the integrated approach to health and social care 1 – 5 within the Highlands.
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TIMESCALE (Years) 11.6.8 Monitor satisfaction with the services provided through Customer Satisfaction Surveys. 1 – 5
11.6.9 Work with partners in assessing the requirements for Technology Enable Care devices and to assist in the collection, delivery, storage, maintenance, cleaning and installation of all Technology Enabled 1 – 5 Care equipment.
11.6.10 Work with Council and NHS partners to sustain independent living and promote a holistic approach to reablement. 1 – 5
11.6.11 Work with partners to continue to deliver the outcomes agreed with Life Changes Trust for clients living with dementia. 1 – 5
11.6.12 Work towards securing external funding to deliver a new “Healthy 1 – 5 Homes” initiative.
11.7 FINANCE SERVICES
Over the period of the plan, we will continuously improve our financial position and the systems we utilise to monitor performance and plan effectively. Our Financial Services objectives are:- TIMESCALE (Years)
11.7.1 Implement our Financial Plans, which are attached as 24TAppendix 1 – 5
Seven.24T
11.7.2 Regularly review our thirty-year Financial Plan in line with the 1 – 5 objectives and requirements of all Services.
11.7.3 Carry out a comprehensive review of our Rent Setting Policy to ensure that it continues to meet the Association’s objectives, is affordable to 1 – 5 our client groups and provides value for money.
11.7.4 Continue to monitor the effectiveness of our Rent collection and our 1 – 5 Arrears and Debtors Management and Recovery Policies.
11.7.5 Maximise the range of external financial resources available to support 1 – 5 the Association’s activities.
11.7.6 Continue to monitor financial performance and compliance with Loan Covenants on a regular basis through Management Accounting 1 – 5 techniques.
11.7.7 Continue to achieve ‘clear’ External Audit Reports in respect of the 1 – 5 Annual Financial Statements.
11.7.8 Continue to implement Treasury Management Policies and 1 – 5 Procedures which reduce risk and maximise investment opportunities.
11.7.9 Monitor our Financial Regulations and Procedures and adjust to reflect 1 – 5 organisational changes.
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TIMESCALE (Years)
11.7.10 Continue to submit returns and reports to HMRC, Companies House, The Scottish Housing Regulator and other organisations as required. 1 – 5
11.7.11 Continue to engage with other organisations (ie The Highland Council, other Social Rented Landlords, DWP) in respect of the Housing 1 – 5 Element of Universal Credit.
11.8 ENERGY ADVICE SERVICES
We will work in partnership with individuals, groups and organisations to increase energy efficiency in the home and in community buildings, reduce fuel poverty and help our tenants and the wider community achieve affordable warmth. TIMESCALE (Years) 11.8.1 Continue to develop mechanisms for ensuring an ongoing and enhanced delivery of information, support and advice to tenants and 1 – 5 vulnerable households in the wider community to assist them to achieve affordable warmth.
11.8.2 Work with partners to raise awareness and understanding of affordable warmth issues within the Association’s stock and the wider community, including promoting the work and findings of the service in 1 – 5 publications, conference papers and events. We will also participate in The Highland Council Affordable Warmth Partners Group and the Highlands & Islands Housing Associations Affordable Warmth Group.
11.8.3 Prioritise service delivery to Association tenants through the delivery of regular stock surveys, the provision of in-home energy advice, new tenancy support, advice on heating, metering and energy billing 1 – 5 options, advice on how best to achieve affordable warmth, and manage heating and ventilation systems effectively.
11.8.4 Provide advice and support to Property and Development Services, including support for new builds and heating changes. Carry out 1 – 5 regular full stock surveys in support of EESSH and other strategic objectives.
11.8.5 Manage all of the Association’s RHI claims and seek other opportunities to generate ongoing financial support for the 1 – 5 Association, by applying for charitable funding, grants, third party tenders and carrying out income earning services including the provision of EPCs.
11.8.6 Strive to reduce the number of households that experience fuel poverty in Skye and Lochalsh, prioritising support to Association 1 – 5 tenants and those members of the community struggling to achieve affordable warmth.
11.8.7 Seek grant aid to draft a guidance manual aimed at helping housing associations support their tenants in the achievement of affordable 1 – 2
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TIMESCALE (Years) warmth.
11.8.8 Work with the Highlands & Islands Housing Associations Affordable Warmth group to lobby Government to seek implementation of the 1 – 5 Energycarer pilot project.
11.8.9 Meet Key Energy Efficiency Targets to:
Complete the existing stock survey programme and report in detail on its findings and draft and implement future programmes to target key organisational needs. Extend the existing survey programme to include all new builds 12 months after first 1 – 5 occupancy and make follow up visits to up to a 100 homes from the existing programme which show evidence of concern, eg humidity management, and those with high or very low energy consumption. Start next stock survey programme in April 2021 visiting 250 properties a year. Continue to seek to secure energy switching to cheaper tariffs or providers for 100 Association households per year.
Continue our support services for all tenants, including advising all 1 – 5 new tenants, and continue to support tenants who contact us with
concerns about costs and comfort levels.
Check the insulation qualities, heating and ventilation systems of all new build properties through visual inspection, cold weather 1 – 5 thermal imaging and temperature monitoring. Continue to review energy consumption across the Association’s stock, including the Home Farm biomass system, and intervene to 1 – 5 support households with very high and very low usage.
Continue to provide the free, in-home, community service in Skye & Lochalsh and assist up to 50 vulnerable households outwith the 1 – 5 Association to achieve affordable warmth. Work with the Corporate Services Manager to maintain an effective Energy Advice presence on the Association’s website. 1 – 5
Help ensure Association compliance of EESSH by December 2020 and EESSH2 by 2032 by carrying out all necessary surveys 1 – 2 and EPCs to ensure a lodged EPC exists for all Association stock and ensure ongoing compliance with RHI obligations. 11.8.10 Acquire the necessary skills, training, equipment and staff resources to allow the services to meet ongoing opportunities presented through new Government Energy Efficiency schemes, the potential 1 – 5 introduction of the Energycarer model and social housing energy efficiency standards.
11.8.11 Consider new technological developments in energy efficiency that may be of benefit to the Association and its client groups. 1 – 5
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12. PERFORMANCE MONITORING
12.1 Service Delivery Standards
12.1.1 The Association is committed to delivering high quality services and standards across the range of its activities. In order to meet these commitments, it is essential that the Association works within a framework which allows us to measure how we are achieving the key themes of setting standards, consulting with stakeholders, offering choice where possible and continuously improving our services.
12.1.2 The Scottish Housing Regulator has published a Regulatory Framework to be used by Registered Social Landlords in measuring their performance. The Association assesses itself against the criteria on an on-going basis to ensure compliance and provides the Scottish Housing Regulator with an Annual Assurance Statement to confirm the outcome of our compliance review.
12.1.3 The Association complies with the requirements of the Scottish Social Housing Charter to carry out a comprehensive Customer Satisfaction Survey on a three-yearly basis but we will also continue with a rolling programme of Customer Satisfaction Surveys in respect of the key services which we provide. The outcome of these surveys enables the Association to continue to review standards timeously and to take appropriate action to address any deficiencies identified.
12.2 Benchmarking
12.2.1 The Association engages in the benchmarking of its performance against the performance of other Registered Social Landlords within its peer group as defined within the Annual Report on the Charter produced by the Scottish Housing Regulator. The purpose of this benchmarking is to enable the Association to identify areas of performance where we can do better. A report on the outcome of this benchmarking is presented annually to the Management Committee and the results are used to inform our target setting for the delivery of services.
12.2.2 The Peer Group Report for 2018/2019 is attached as Appendix Ten.
12.2.3 In addition, the Association has joined the Scottish Housing Best Value Network for benchmarking and best practice purposes.
12.3 Performance Targets
12.3.1 The Association sets Performance Targets for its key activities on an annual basis and monitors performance achieved on a quarterly basis through the Audit, Finance and Performance Sub-Committee. The targets set are informed by reviewing the previous year’s outcomes together with the information obtained from benchmarking.
12.3.2 The Performance Targets for the period 2020/2025 are attached as Appendix Eleven.
12.4 Internal Audit
12.4.1 The Association is committed to a rolling programme of internal audit and the Strategic Internal Audit Plan 2020/2023 identifies operational areas to be examined during the period. Generally, the areas to be examined are those activities which expose the Association to greatest risk if they are operationally weak and the
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outcomes of the Internal Audit reports are considered regularly by the Management Committee and Action Plans approved.
12.5 Risk Management
12.5.1 The activities undertaken by the Association are varied and often complex and therefore a Risk Management Policy has been developed to describe how the Association will assess and manage the risks associated with its activities.
12.5.2 In considering its approach to risk management, the Association has been mindful of the need to balance a prudent approach to the risks associated with its business with the need to ensure an innovative and creative approach to opportunities and challenges. The Association regards effective risk management as an essential component of its business strategy and crucial to maintaining its position as a successful and highly regarded housing association.
12.5.3 The Association’s Risk Register has been reviewed as part of the Business Plan process and quarterly monitoring of the Risk Register is carried out by the Audit, Finance and Performance Sub-Committee and reported to the Management Committee.
12.6 Scenario Planning
12.6.1 The Association recognises that its plans must be flexible enough to allow for changes which may largely be outwith the control of the Association. The Risk Register identifies a range of “actions” to be considered in the event that anticipated risks materialise. In addition, the Association’s Financial Plan has a range of scenarios included as appendices which give consideration to the key financial factors or risks that may arise and measures their financial impact. ______
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Appendix 1
BUIDHEANN TIGHEADAS LOCH AILLSE AGUS AN EILEIN SGITHEANAICH LTD LOCHALSH AND SKYE HOUSING ASSOCIATION
KEY STAKEHOLDER GROUPS
HIGHLAND HOUSING STRATEGY DEVELOPMENT GROUP
The Highland Council - Head of Housing - Head of Development and Regeneration - Housing Policy Officer - Community Services Manager - Head of Planning and Building Standards
The Scottish Government - More Homes Division Representative
Highland-based RSL’s - Albyn, Cairn, Lochaber, Lochalsh & Skye, Pentland, Hanover, Key, Trust, Caledonia
Highlands & Islands Enterprise Highland Housing Alliance The Highlands Small Communities Housing Trust Cairngorm National Park Authority SEPA Scottish Water NHS Highland Homes for Scotland
______
SKYE & LOCHALSH HEALTH, HOUSING & SOCIAL CARE FORUM
NHS Highland The Highland Council Lochalsh & Skye Housing Association Skye & Lochalsh Citizen Advice Bureau Skye & Lochalsh Mental Health Association Skye & Lochalsh Council for Voluntary Organisations Crossroads Care Alzheimers Scotland Red Cross Carr Gorm Highland Community Care Forum Highland Carers Advocacy
______
SKYE & LOCHALSH LOCAL HOUSING DEVELOPMENT FORUM
Lochalsh & Skye Housing Association The Highland Council - Development and Regeneration Rep - Planning and Development Services Manager - Planning and Development Services Local Plan Manager - Ward Manager
The Scottish Government - More Homes Division Representative Highlands & Islands Enterprise Highland Housing Alliance The Highlands Small Communities Housing Trust SEPA Scottish Water - By Invitation Scottish Natural Heritage NHS Highland ______
CARE & REPAIR and HANDYPERSON SERVICES ADVISORY GROUPS
Lochalsh & Skye Housing Association The Highland Council - Principal Housing Officer - Occupational Therapy Manager - Grants Officer NHS Highland ______
HIGHLAND AFFORDABLE WARMTH PARTNERS GROUP
Lochalsh & Skye Housing Association The Highland Council - Housing Team - Energy & Sustainability Team - Finance Team
Energy Savings Trust Energy Action Scotland Changeworks Citizens Advice Bureau NHS Highland ______
HIGHLANDS AND ISLANDS HOUSING ASSOCIATIONS AFFORDABLE WARMTH GROUP
Lochalsh & Skye Housing Association Orkney Housing Association Hjaltland Housing Association Grampian Housing Association Changeworks Hebridean Housing Partnership TIG The Highland Council Di Alexander, Independent Chair SCARF Perth & Kinross Council Alienergy
______
HIGHLAND HOUSING HUB
The Highland Council - Housing Development Representative The Scottish Government - More Homes Division Representative Highland based RSL’s - Albyn, Cairn, Lochaber, Lochalsh & Skye, Pentland, Caledonia Highland Housing Alliance The Highlands Small Communities Housing Trust SEPA Scottish Water Highlands & Islands Enterprise - By Invitation The Highland Council -Planning, Building Control Others
______
SKYE, LOCHALSH AND WESTER ROSS COMMUNITY PLANNING PARTNERSHIP
Lochalsh & Skye Housing Association Highlands & Island Enterprise The Highland Council - Local Members - Ward Managers NHS Highland Police Scotland Skye & Lochalsh CVO Scottish Fire and Rescue Services ______Appendix 2
MANAGEMENT COMMITTEE MEMBERS
Audrey Sinclair (Chairperson) Employment Status: Retired Nature of Employment: N/A Employer: N/A Elected onto Committee: 24 June 2013 Last re-elected onto Committee: 15 July 2019 Other Positions of Responsibility: Board Member of Highland Small Communities Housing Trust Chairperson of Skye & Lochalsh Association for Disability Chairperson of Wester Ross Biosphere Chairperson of Kyle Community Council Chairperson of Kyle Village Hall
Mr Ian Young (Vice-Chairperson) Employment Status: Self-Employed Nature of Employment: Crofter Employer: N/A Appointed onto Committee: 21 March 2016 Elected onto Committee: 27 June 2016 Last re-elected onto Committee: 25 June 2018 Other Positions of Responsibility: Member – Waternish First Responders
Mr John Laing Employment Status: Self Employed Nature of Employment: Crofter Elected onto Committee: 25 June 2012 Last re-elected onto Committee: 26 June 2017 Other Positions of Responsibility: Non-Executive Director, North West Highland Community Enterprises Limited Non-Executive Director, The Highlands Small Communities Housing Trust
Mr Steven Douglas Proudfoot Employment Status: Self-Employed Nature of Employment: Director Employer: N/A Appointed onto Committee: 21 March 2016 Elected onto Committee: 27 June 2016 Last re-elected onto Committee: 25 June 2018 Other Positions of Responsibility: Committee Member – Loch Carron Coastal Rowing Association Vice Commodore – Lochcarron Sailing Club Director – Howard Doris Centre, Lochcarron Committee Member – Lochcarron and District Business Association Director – Nuts and Bolts Training Ltd
Mr Roger Liley Employment Status: Retired Nature of Employment: N/A Employer: N/A Appointed onto Committee: 21 March 2016 Elected onto Committee: 27 June 2016 Last re-elected onto Committee: 15 July 2019 Other Positions of Responsibility: Director – North West Highland Community Enterprises Member – Highland Liberal Democrats
Ms Margaret Muir Employment Status: Retired Nature of Employment: N/A Employer: N/A Appointed onto Committee: 21 August 2017 Elected onto Committee: 25 June 2018 Last Elected onto Committee: N/A Other Positions of Responsibility: No positions of public responsibility, no memberships of other RSLs or voluntary organisations, and no financial interest relating to the work of the Association
Ms Liz Williams Employment Status: Employed Nature of Employment: Ordinary Member of the First Tier Housing and Property Tribunal Employer: Scottish Courts and Tribunal Service Appointed onto Committee: 17 December 2018 Elected onto Committee: 15 July 2019 Last Elected onto Committee: N/A Other Positions of Responsibility: No positions of public responsibility, no memberships of other RSLs or voluntary organisations, and no financial interest relating to the work of the Association
Mr John Finlayson Employment Status: Employed Nature of Employment: Highland Councillor Employer: The Highland Council Appointed onto Committee: 20 May 2019 Elected onto Committee: 15 July 2019 Last re-elected onto Committee: N/A Other Positions of Responsibility: Director – Camanachd Association Elected Member – The Highland Council
Cllr Isabelle Campbell Employment Status: Employed Nature of Employment: Councillor Employer: The Highland Council Appointed onto Committee: 20 May 2019 Elected onto Committee: 15 July 2019
Last re-elected onto Committee: N/A Other Positions of Responsibility: Elected Member – The Highland Council
Mr John Cayley Employment Status: Retired Nature of Employment: N/A Employer: N/A Appointed onto Committee: 16 March 2020 Elected onto Committee: N/A Last re-elected onto Committee: N/A Other Positions of Responsibility: Director – Sleat Community Trading Co Ltd Volunteer – Citizens Advice Bureau Volunteer – Befrienders Highland Volunteer – Advocacy Highland Volunteer – Childrens’ Hospice Association
______
Appendix 3 BUIDHEANN TIGHEADAS LOCH AILLSE AGUS AN EILEIN SGITHEANAICH LTD LOCHALSH AND SKYE HOUSING ASSOCIATION
MANAGEMENT COMMITTEE – TERMS OF REFERENCE
1. The Management Committee will oversee, control and direct the affairs and business of the Association and ensure that the actions of the Chairperson, Secretary and any other officers of the Association are undertaken in accordance with the Rules and Objects.
2. The Management Committee will provide leadership to the Association, setting the Association’s values and standards and ensuring that it achieves good outcomes for its tenants, other service users and stakeholders.
3. The Management Committee will set the Association’s strategic aims, ensuring that the resources to meet these are in place, and will review performance against these aims.
4. The Management Committee will take objective decisions in the interests of the Association; and in doing so be open about what it does and publish information about its activities.
5. The Management Committee can delegate authority to the Chief Executive and other managers. The Management Committee can also delegate any of its powers to Sub-Committees, to working groups, to staff or to office bearers consisting of such Committee members and other persons as it thinks fit.
6. The Management Committee will scrutinise the performance of the Association in meeting its stated aims and objectives and hold the Chief Executive to account for the performance of staff.
7. The Management Committee will ensure that the Association’s budgets and borrowings are undertaken in accordance with the Rules, Standing Orders and Financial Regulations.
8. The Management Committee will ensure that the AGM and any General Meetings of the Association are called and conducted in accordance with the Rules.
9. The Management Committee can decide to affiliate to the Scottish Federation of Housing Associations, and to any other organisations having objectives similar or relevant to those of the Association.
10. The Management Committee is responsible for ensuring that the recommendations or directions made by the Scottish Housing Regulator in the course of its regulatory activities are implemented.
11. The Management Committee will meet to discuss annually the strengths, weaknesses, skills and performance of the Committee. The Management Committee will also review the effectiveness of its Sub-Committees and working groups.
BUIDHEANN TIGHEADAS LOCH AILLSE AGUS AN EILEIN SGITHEANAICH LTD LOCHALSH AND SKYE HOUSING ASSOCIATION
12. The Management Committee can decide on the appointment of any of its members or any employee to act as a signatory. Such appointments will be reflected in the Schedule of Authorised Signatories.
13. The Management Committee will fulfil its role as outlined in relevant Governance Policies, including monitoring performance in handling complaints, and dealing directly with any Whistleblowing reports and complaints against the Chief Executive.
14. The Management Committee will consider and take the final decision on the recommendations from its Sub-Committees.
15. The Management Committee reserves the right to itself to deal with the following issues:
15.1 Appointment (and if necessary, investigation of complaints against or dismissal of) the Chief Executive and/or other senior staff members.
15.2 Approval of strategies and plans relating to business growth, including housing development proposals.
15.3 Acceptance of the Scottish Government’s Housing Investment Programme.
15.4 Approval of the Business Plan and other strategic Plans.
15.5 Approval of the Financial Plan.
15.6 The letting of a Contract not identified in the investment programme or in the approved budget.
15.7 Overriding responsibility to ensure fulfilment of the requirements and expectations of the Scottish Housing Regulator, including those set out in its Regulatory Standards of Governance and Financial Management.
15.8 Overriding responsibility to ensure compliance with the requirements and expectations of other regulators, such as the Financial Conduct Authority, the Office of the Scottish Charity Regulator and the Pensions Regulator.
15.9 The extension or restriction of the scope of the Association’s activities.
15.10 The review of the effectiveness of the Association’s work and of the standards and levels of services provided, including the identification of the need for new or improved services; and the review of the necessity for existing ones.
BUIDHEANN TIGHEADAS LOCH AILLSE AGUS AN EILEIN SGITHEANAICH LTD LOCHALSH AND SKYE HOUSING ASSOCIATION
15.11 Approval of all policies.
15.12 Considering and making decisions on proposed payments or benefits to be granted to governing body members or employees, ensuring these are taken in accordance with regulatory requirements, the associated Codes of Conduct and relevant policies.
15.13 Matters reserved to it by Financial Regulations.
15.14 Matters of doubt or difficulty or which involve, or appear likely to involve, major changes in policy.
15.15 Major matters concerning relationships with central government, local authorities, statutory bodies, other housing associations and other community organisations.
15.16 Any matter referred to it by a general meeting.
15.17 The reference of any matter to a general meeting.
15.18 Authorisation of the use of the Association’s Seal.
15.19 Authorisation of the disposal of any assets of significant value.
______
BUIDHEANN TIGHEADAS LOCH AILLSE AGUS AN EILEIN SGITHEANAICH LTD LOCHALSH AND SKYE HOUSING ASSOCIATION
AUDIT, FINANCE AND PERFORMANCE SUB-COMMITTEE – TERMS OF REFERENCE
The responsibilities of the Audit, Finance and Performance Sub-Committee include:-
1. Monitoring the content and integrity of the following:-
Annual Financial Statements Annual Report on the Charter Quarterly Management Accounts Quarterly Performance Reports Quarterly Complaints Handling Reports Quarterly Risk Register Reviews Customer Satisfaction Survey Reports
2. Monitoring the integrity of any formal announcements relating to the Association’s financial performance and reviewing significant financial reporting judgements contained in them.
3. Reviewing the Association’s internal financial controls.
4. Monitoring and reviewing the effectiveness of the Association’s internal audit arrangements and approving the internal audit plan.
5. Making recommendations to the Management Committee in relation to the appointment, re-appointment and removal of the external auditor or the internal auditor.
6. Approving the remuneration and terms of engagement of the external auditor and the internal auditor.
7. Reviewing and monitoring the external auditor and internal auditor’s independence and objectivity and the effectiveness of the audit processes, taking into consideration relevant UK professional and regulatory requirements.
8. Developing and implementing the Association’s policy on the engagement of the external auditor or the internal auditor to supply non-audit services, taking into account relevant ethical guidance regarding the provision of non-audit services by the external audit or internal audit firm.
9. Considering the reports produced by the internal auditor and approving the management responses to recommendations made.
10. Reporting to the Management Committee, identifying any matters in respect of which it consider that action or improvement is needed and making recommendations as to the steps to be taken.
BUIDHEANN TIGHEADAS LOCH AILLSE AGUS AN EILEIN SGITHEANAICH LTD LOCHALSH AND SKYE HOUSING ASSOCIATION
11. They consider the draft annual Financial Statements, the Audit Findings Report and the Letter of Representation and to make recommendations on any actions to be taken on these to the Management Committee, including the terms of the Association’s response to the Audit Findings Report.
12. Considering the proposed Five-Year Financial Plan, the summary Thirty-Year Financial Plan, including annual budgets and recommending approval to the Management Committee for inclusion in the Business Plan.
13. Considering and recommending new Finance Policies, Regulations and Procedures to the Management Committee for approval.
14. Considering and recommending amendments to budgets and targets and recommending corrective action to the Management Committee.
15. Considering matters relating to the Association’s Pension Policy, including the annual return on the Defined Benefit Scheme to SHAPS, the outcomes of the triennial reviews and making recommendations to the Management Committee.
16. Considering the Association’s Key Performance Indicators and making recommendations to the Management Committee regarding their inclusion in the Business Plan. ______
Appendix 4 BUIDHEANN TIGHEADAS LOCH AILLSE AGUS AN EILEIN SGITHEANAICH LOCHALSH AND SKYE HOUSING ASSOCIATION
CORPORATE SERVICES PROCEDURE: Staff Structure
CHIEF EXECUTIVE (Lachie MacDonald)
RENT ACCOUNT FINANCE CORPORATE SERVICES HOUSING SERVICES MANAGER LEGAL SERVICES MANAGER MANAGER SERVICES MANAGER (Maureen Taylor) (Lesley Kirkwood) (Janet Masson) MANAGER (Marion Douglas) (Lesley MacIntosh) TENANT DIRECTOR OF ENGAGEMENT AND INVESTMENT PERSONAL HOUSING SERVICES HOUSING SERVICES SUPPORT MANAGER (Iain McIvor) ASSISTANT RENT ACCOUNT TENANT ADVISER FINANCE ASSISTANT CLERICAL ASSISTANT x 2 (TBC) (Aggie MacSween) ASSISTANT (Alex Macleod) SERVICES (Moira Gillies) (Hayley-Louise Gater) (Linda Shaw) ASSISTANT (Note 2) (Note 3) (Fiona Duguid) (Gail Sherwood) (Note 3) CORPORATE CORPORATE SERVICES CLERICAL SERVICES ASSISTANT ASSISTANT (Jennifer MacInnes) (Alison Jagger)
TECHNICAL DEVELOPMENT PROJECT CARE & REPAIR HANDYPERSON ENERGY ADVICE MANAGER OFFICER OFFICER OFFICER SERVICES SERVICES (Angus MacLennan) (John Lamont) (Anna Pophanken) (Donnie Martin) MANAGER MANAGER (Ruairidh MacKinnon) (Donnie Mackay)
HANDYPERSON x 3 ENERGY ADVISER (Donnie Morrison) TECHNICAL PROPERTY PROPERTY PROPERTY (Laura Campbell) (Neil MacLean) SERVICES SERVICES SERVICES SERVICES CLERICAL (Michael Taylor) CO-ORDINATOR OFFICER x 2 ASSISTANT x 2 ASSISTANT
(Robert Bruce) (Gavin Convery) (Catriona Shields) (Christina MacKinnon) (Wilfar Matheson) (Morag Palmer) (Note 1)
All Staff work 35 hours per week, except:- TECHNICAL JOINER x 2 PLUMBER x 2 ELECTRICIAN ESTATE SUPERVISOR Note 1 : 28 hours per week ASSISTANT x 5 (Angus Campbell) (Jason Murdoch) (John Lumley) (Richard Stridgeon) Note 2 : 25 hours per week (Murdo Nicolson) (Jenna Beaton) (Angus Neil MacDonald) (Donald Gillies) Note 3 : 16 hours per week (Iain Matheson) (Iain MacKinnon) (Campbell McIvor) APPRENTICE ESTATE ASSISTANT JOINER (Peter Macleod) (Gregor MacDonald) Denotes Management and Procurement Team Member Updated February 2020
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SENIOR MANAGEMENT TEAM BIOGRAPHIES
LACHLAN MACDONALD – CHIEF EXECUTIVE
After graduating with a Diploma in Town and County Planning from Glasgow School of Art, he worked for Dalmuir Park Housing Association in Clydebank as a Development Officer from 1978 – 1982 before moving to Central Govan Housing Association as Director in 1982.
He joined Lochalsh & Skye Housing Association in April 1986 as the first member of staff and has been the Chief Officer since then. He also acts as the Company Secretary for the Association’s subsidiary company, North West Highland Community Enterprises Limited.
He is currently a Member of the Board of the Highland Housing Alliance which is a private housing development company owned by the five Highland-based Registered Social Landlords together with The Highland Council and the Highlands Small Communities Housing Trust. He has been a Non-Executive Director of the Skye and Lochalsh Mental Health Association which operates a Drop-in Centre in Portree, since 1995.
He has formerly served as a Non-Executive Director of the Highlands Small Communities Housing Trust and the Highland Primary Care NHS Trust.
IAIN IVOR CAMPBELL McIVOR – DIRECTOR OF INVESTMENT
Iain started his working career as a Quantity Surveyor in private practice in Glasgow before changing to General Practice after graduating with a BSc in Land Economics from Paisley University in 1988 and then becoming a Member of the Royal Institution of Chartered Surveyors. He was employed by Beazer Developments on commercial property developments before moving to Skye in 1991.
He joined Lochalsh & Skye Housing Association as Assistant Director and is now Director of Investment having worked in Colorado, USA, for two years from 2004 - 2006 with Saltire Developments building custom designed private client homes.
He has been involved with Skye and Lochalsh Citizens Advice Bureau since 1996, currently as Chairman, having previously served as Treasurer. He is a member of NHS Highland’s Technology Enabled Care and Community Stores Project Boards representing the five Highland based Handyperson Services
ANGUS MACLENNAN – TECHNICAL MANAGER
Having completed his education at Plockton High School, Angus left school and served an apprenticeship as a bricklayer with D McKerlich & Son Ltd from 1983 - 1988. A car accident curtailed his building vocation which resulted in a career
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BUIDHEANN TIGHEADAS LOCH AILLSE AGUS AN EILEIN SGITHEANAICH LOCHALSH AND SKYE HOUSING ASSOCIATION change whereby Angus returned to full-time education obtaining a Diploma in Building.
In 1991 he returned to Skye to take up the position of Area Maintenance Officer with Skye & Lochalsh District Council.
In 2004, he joined QinetiQ at the MoD Maritime Testing Range at BUTEC as Property Operations Manager.
In January 2019, Angus joined Lochalsh & Skye Housing Association taking up the role as Technical Manager.
DONNIE MACKAY – ENERGY ADVICE SERVICES MANAGER
After graduating with a degree in Archaeology from the University of Glasgow in 1985, Donnie worked for six years as a surveyor with the Royal Commission on the Historical Monuments of England, based in York and Newcastle.
In 1991 he became manager of the National Archaeological Record for the North of England, including responsibility for liaison with 17 county and metropolitan record offices and five national parks. He moved to Swindon in 1996 to become Enquiry & Research Services manager of the National Monuments Record, managing all public access to the national archive including managing 28 staff, a budget of £450,000 and dealing with 20,000 enquiries and visitors a year.
He returned to Skye in 2001 and worked for five years for Highlands and Islands Enterprise’s Community Land Unit and since 2010 has been Energy Advice Services Manager for the Association.
MARION DOUGLAS – CORPORATE SERVICES MANAGER
Marion Douglas started working for British Olivetti in Edinburgh 1979 as an administrative assistant. She moved to the Glasgow branch of the company to take up the post of trainer on the Word Processing machines in 1981 before a final move within Olivetti to Manchester in 1984 to teach clients the basics of early computers.
Marion moved to Skye in 1987 to join JET (Jobs Enterprise and Training), where she taught computer classes. JET was taken over by Inverness College in 2001 as an outreach centre of the College; it eventually closed down in 2005.
She joined Lochalsh & Skye Housing Association in January 2006 as the E-Business Development Officer, in charge of making sure that all the staff had appropriate ITC hardware and support to allow them to carry out their duties effectively. Marion’s role included upkeep of the website and production of promotional materials and newsletters. She carries out training on new systems for all staff and Committee Members when required.
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BUIDHEANN TIGHEADAS LOCH AILLSE AGUS AN EILEIN SGITHEANAICH LOCHALSH AND SKYE HOUSING ASSOCIATION
She is currently the Corporate Services Manager at the Association.
JANET MASSON – RENT ACCOUNT MANAGER
After graduating with a MA(General) degree from Edinburgh University, Janet remained in Edinburgh and her work places included a travel agency, the Social Security Appeals Tribunals Edinburgh Office, the BBC Commonwealth Games Host Broadcasting Centre, and a tour operator.
She moved to Skye in 1989 and initially worked for Malden Timber (Builder’s Merchant) until starting a family. Thereafter, she worked part-time for Scottish Hydro- Electric, The Highland Council (Portree Primary School), Bank of Scotland, and the Scottish Courts and Tribunals Service.
She joined Lochalsh & Skye Housing Association in April 2001, initially employed as a receptionist, then later as Property Services Assistant. She joined Finance Services in 2011, and has been Rent Account Manager since June 2015.
LESLEY MACINTOSH – FINANCE SERVICES MANAGER
After completing a year training placement within the former Skye and Lochalsh District Council and two seasons working at the Tourist Information Centre in Portree Lesley attended College in Aberdeen and completed a course in Leisure and Tourism.
On returning to Skye she worked as receptionist at The Portree Hotel before being transferred to The Cuillin Hills Hotel. She left and briefly worked at the Aros Visitor Centre before returning to The Portree Hotel to her former position.
In 1999 she took up the post of Accounts Assistant at Campbell, Stewart MacLennan Accountants where she received on the job training. In 2001 she joined Lochalsh & Skye Housing Association as Finance/Administration Assistant. She was re-graded as Finance Assistant, Senior Finance Services Assistant, Finance Officer and Finance Services Manager.
Lesley is also the Company Secretary of the Association.
MAUREEN TAYLOR – HOUSING SERVICES MANAGER
After leaving school, Mo worked at The Highland Council in Inverness, on a two-year training scheme. Maureen joined the Association in August 1993 as a Secretary aged 18.
In May 2001 Maureen was promoted to Housing Services Officer and since 2015 has been the Housing Services Manager in charge of 1 staff member. She represents
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BUIDHEANN TIGHEADAS LOCH AILLSE AGUS AN EILEIN SGITHEANAICH LOCHALSH AND SKYE HOUSING ASSOCIATION the Association on the Highland Housing Register Working Group, the Highland Operational Housing Hub and Ross-shire, Lochaber and Skye MARAC Group.
She completed the Chartered Institute Level 3 Certificate in Housing Practice in 2017.
RUAIRIDH MACKINNON – HANDYPERSON SERVICES MANAGER
After leaving Portree High School, Ruairidh worked for CWS Ltd on a Management Training Scheme and was Assistant Manager of their Stornoway Store followed by their Portree Store. After 8 years he moved to run a local retail store for 10 years before taking up the position of Handyperson Co-ordinator with Lochalsh & Skye Housing Association in 2006. He became Handyperson Services Manager in May 2015.
In this capacity, he sits on a number of NHS Highland Project Boards, including the Occupational Therapy Equipment Procurement Board which has rationalised the ranges of equipment used by NHS and produced significant cost savings to NHS Highland.
Ruairidh is regularly asked to address conferences organised by the Scottish Centre for Telehealth & Telecare which promotes the use of Technology Enable Care across Scotland.
LESLEY KIRKWOOD - LEGAL SERVICES MANAGER
After graduating with a Law Degree from Strathclyde University in 1979, Lesley undertook her legal apprenticeship in Portree, Isle of Skye with Christie & Ferguson qualifying as a Solicitor and Notary Public in 1981.
Looking to broaden her legal experience she worked in private practice law firms in Elgin and Aberdeen before moving to London in 1986 where she worked in the Professional Practice Department at the RICS until starting a family and setting up a small business caring for client’s pets.
Lesley returned to Aberdeen in 1990 to practice as a solicitor with Gordon District and Aberdeenshire Councils dealing with all aspects of land and building sales and purchases. In 2001 she returned to Skye initially in private practice with Ferguson MacSween and Stewart before joining Highland Council as a solicitor in the Conveyancing and Commercial team initially in Inverness and then in Skye.
She took voluntary redundancy from Highland Council in 2016 and worked in Edinburgh at Gillespie MacAndrew, Solicitors in their Energy team until joining Lochalsh and Skye Housing Association in February 2017 as Legal Services Manager.
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BUIDHEANN TIGHEADAS LOCH AILLSE AGUS AN EILEIN SGITHEANAICH LOCHALSH AND SKYE HOUSING ASSOCIATION
Lesley administers the Scottish Ministers shared equity scheme properties in Skye and Lochalsh and provides in house legal advice on a range of matters including data protection, conveyancing and debt recovery.
KENNETH G GODDARD – MANAGEMENT ACCOUNTANT (CONSULTANT)
Qualifications
Association of Chartered Certified Accountants (FCCA) Chartered Institute of Public Finance and Accountancy (CPFA)
Experience
1996 to date Freelance Consultant (Financial Management, Accounting and Audit services)
Clients to date include: Lochalsh & Skye Housing Association Audit Scotland Scottish Natural Heritage Highlands and Islands Enterprise
1982 to 1996 Director of Finance, Skye and Lochalsh District Council
1971 to 1982 Various posts involved in public sector finance
January 2020 ______
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BUIDHEANN TIGHEADAS LOCH AILLSE AGUS AN EILEIN SGITHEANAICH LOCHALSH AND SKYE HOUSING ASSOCIATION
I INDEX OF POLICIES AND PROCEDURES CONTROL CLICK onto the link to go to the Policy
POLICIES Service Next Review Date
A Adaptations Policy and Procedures Development February 2022 Alcohol and Drugs Misuse Policy and Procedures Corporate February 2022
Anti Bribery Policy Corporate February 2022
Anti-Social Behaviour Policy Housing October 2022
Asbestos Management Policy and Procedures Property February 2022
Attendance & Absence Management Policy Corporate October 2024
B Bad Debts, Write-Offs and Provisions Policy Finance February 2022
C CDM Policy Development June 2023
Child Protection and Vulnerable Adult Policy and Corporate September 2020 Procedures
Clients’ Money Policy and Procedures Finance April 2023
Complaints Handling Procedures Corporate February 2022
Contract Control and Monitoring Policy Development June 2023
Contractors and Consultants Liquidation and Receivership Development June 2023 Policy
D Decanting Policy and Procedures Property February 2020
Defects Policy Development June 2023
Design and Build Policy Development June 2023
Development Consultation Policy Development June 2023
Development Policy and Procedures Development June 2023
Development Risk Policy Development June 2023
Dignity at Work Policy and Procedures Corporate February 2022
Disclosure of Interests Policy and Procedures Corporate November 2024
Disputes Resolution Policy Development June 2023
E Email Retention Policy Corporate December 2024
Entitlements, Payments and Benefits Policy Corporate March 2021
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BUIDHEANN TIGHEADAS LOCH AILLSE AGUS AN EILEIN SGITHEANAICH LOCHALSH AND SKYE HOUSING ASSOCIATION
Equality and Diversity Policy Corporate October 2024
Estate Management Policy Property January 2023
Expenses Policy and Procedures Corporate January 2025
F Factoring Policy Property December 2021
First Aid at Work Policy and Procedures Corporate February 2022
Flexible Working Policy Corporate August 2024
Fraud and Errors Policy Corporate February 2022
Freedom of Information (Access to Information under Freedom of Information (Scotland) Act 2002 and the Annually Corporate Environmental Information (Scotland) Regulations Policy (October) and Procedures
G Gifts and Hospitality Policy Corporate November 2021
Grievance Policy Corporate December 2021
H Handover Policy Development June 2023
Harassment Policy Corporate February 2022
Health and Safety at Work and Health & Safety Policy Annually Corporate Statement (February)
Highland Housing Register Allocations Policy Housing Annually
I Annually Information Security (WorldPay) Policy Finance (September)
IT Use and Security Policy and Procedures Corporate August 2023
L Landbanking Policy Development June 2023
Lone Working Policy Corporate December 2024
M Management Committee and Staff Members Succession Annually Corporate Plan (February)
Management Committee Members Training and Corporate December 2024 Development Policy
Membership of the Association Policy Corporate September 2022
Membership of the Management Committee Policy and Corporate August 2023 Procedures
Mobile Phone Policy Corporate December 2024
N Notifiable Events Policy and Procedures Corporate March 2022
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BUIDHEANN TIGHEADAS LOCH AILLSE AGUS AN EILEIN SGITHEANAICH LOCHALSH AND SKYE HOUSING ASSOCIATION
O Off The Shelf Purchases Policy Development June 2023
P Annually Pension Scheme Notifiable Events Procedure Corporate (October)
Pension Scheme Policy Corporate October 2020
Personal Relationships at Work Policy and Procedures Corporate February 2022
Post Completion Scheme Review Policy Development June 2023
Principal Officer Remuneration Policy Corporate October 2024
Privacy Policy Corporate March 2023
Privacy Policy Appendices 2 - 9 Corporate As above
Procurement Policy Corporate April 2023
Provision of Committee IT Equipment Policy and Corporate August 2020 Procedures
Public Relations Policy and Procedures Corporate October 2024
R Recruitment and Selection Policy and Procedures Corporate November 2017
Additional Documents for Recruitment and Selection Policy Corporate As above
Recruitment of Ex-Offenders – Disclosure Scotland Code Corporate As below of Practice Appendix 1
Recruitment of Ex-Offenders – Disclosure Scotland Policy Corporate November 2017
Redress Policy and Procedures Corporate February 2023
Redundancy Policy and Procedures Corporate February 2022
Registered Tenants Organisation Policy and Procedures Housing October 2024
Rent Arrears: Prevention, Management & Recovery Policy Finance November 2022 and Procedures
Rent Setting Policy 2020/2021 Finance November 2020
Repairs and Maintenance Policy Property November 2022
Reserve Forces Policy and Procedures Corporate February 2022
Risk Management Policy Corporate April 2021
S Sabbatical Policy Corporate October 2024
Shared Parental Leave Policy and Procedures Corporate February 2020
Smoke-Free Policy Corporate February 2022
Sponsorship Policy Corporate October 2017
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BUIDHEANN TIGHEADAS LOCH AILLSE AGUS AN EILEIN SGITHEANAICH LOCHALSH AND SKYE HOUSING ASSOCIATION
Staff Appraisal Policy Corporate February 2019
Additional Documents for Staff Appraisal Policy Corporate As above
Stress Policy and Procedures Corporate February 2022
Annually Subject Access Request (SAR) Policy and Procedures Corporate October
Sustainability Policy Development November 2022
T Tenancy Sustainment Extra Help Funds Policy Corporate September 2024
Tenants Participation Policy Housing August 2019
Treasury Management Policy and Procedures Finance November 2020
U Unacceptable Behaviour Policy and Procedures Corporate October 2024
V Vehicle Management Policy Corporate September 2024
Void Management Policy Property October 2024
W Whistleblowing Policy and Procedures Corporate October 2024
Working in Confined Spaces Policy and Procedures Corporate February 2022
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A WELL-FUNCTIONING HOUSING HIGH QUALITY, SUSTAINABLE HOMES SYSTEM 1. The housing market should supply high- 5. Space and quality standards should be quality homes for living in, not promote set specifically to improve and protect the use of houses as a store of wealth. quality of living across all tenures. 2. Government policy (e.g. taxes and 6. Government policy should promote subsidies) should promote house price greater competition (including greater stability, to help underpin Scotland’s SME participation) in the building sector standard of living and productivity. and broader availability of usable land to reduce prices and improve building Everybody should be able to save for the 3. quality. future (as well as be secure in their home and make significant changes to it) 7. All tenures should apply the same high whether they rent or own. quality and safety standards and levels of consumer protection. 4. Housing provision should be informed by whole life economic costs and benefits in 8. New homes for sale should be built to the round and help to address high standards, defects should be inequalities in wealth, health, and identified and remedied quickly and all education. owners should be required to maintain the condition of their home. 9. Decisions around the quality, location and utilisation of existing stock and new build should be ambitious in promoting Scotland’s energy security, tackling climate change and preserving biodiversity.
SUSTAINABLE COMMUNITIES HOMES THAT MEET PEOPLE’S NEEDS
10. New housing, and the required 13. Government should ensure that there are community resources, should only be put affordable housing options for in place where they help to create safer, households at all income levels. stronger, attractive, sustainable and integrated communities. 14. Housing and the housing market should 11. Local communities should be be highly flexible to enable people to empowered to respond to housing need meet their changing needs, especially in their area, as part of a coherent those of an ageing population regional economic approach (creating (accessibility and adaptations). and maintaining jobs) and supported by provision of the right infrastructure. 12. Government should promote functioning communities which are physically, digitally, culturally and economically connected within a coherent geographic region. Appendix 7
BUIDHEANN TIGHEADAS LOCH AILLSE AGUS AN EILEIN SGITHEANAICH LOCHALSH AND SKYE HOUSING ASSOCIATION
FINANCIAL PLAN 2020-2025
SUMMARY FINANCIAL PLAN 2020 - 2050
BUIDHEANN TIGHEADAS LOCH AILLSE AGUS AN EILEIN SGITHEANAICH LOCHALSH AND SKYE HOUSING ASSOCIATION
TABLE OF CONTENTS
Assumptions for Thirty Years to 31 March 2050 ...... Pages 1 – 5
Statement of Comprehensive Income 2020/2025 ...... Pages 6 – 7
Statement of Financial Position 2020/2025 ...... Page 8
Cash Flow 2020/2025 ...... Page 9
Summary Statement of Comprehensive Income 2020/2050 ...... Pages 10 –12
Summary Statement of Financial Position 2020/2050 ...... Pages 13 – 15
Summary Cash Flow 2020/2050 ...... Pages 16 – 18
Loan Covenants ...... Page 19
Scenario Planning ...... Page 20
FINANCIAL PLAN 2020-2050 - BASE ASSUMPTIONS Ken's Copy
GENERAL ASSUMPTIONS
1 1 This financial plan has been prepared in detail for a 5 year period commencing 1 April 2020. Year one represents the Association's approved budget for 2020/21
2 2 A summarised version of the financial plan has been prepared for a 30 year period commencing 1 April 2020.
3 3 Income is shown net of VAT. Expenditure includes VAT except those few instances where the VAT is recoverable
4 4 Inflation, price increases and interest rates are assumed as follows Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 General increase/CPI (Sept 2019 = 1.7%) 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% Salaries increase 1.60% 2.10% 2.10% 2.10% 2.10% 2.10% Bank Rate 0.75% 1.00% 1.25% 1.50% 1.75% 2.00%
RENT INCOME
5 5 Rents The annual rental income is based on the rents chargeable from I April 2020 with new properties coming on stream in line with the Development Plan. Annual rent increases across the perio the plan are shown below. Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 Annual increase = September CPI + 1% 2.7% 3.0% 3.0% 3.0% 3.0% 3.0% Rent income £ 3,172,077 £ 3,530,265 £ 3,801,069 £ 3,953,353 £ 4,118,990
6 6 Service Charges Service charges are based on the full recovery of estimated costs. Annual increases have been applied in line with the increase in rents. Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 Annual increase in service charges 2.7% 3.0% 3.0% 3.0% 3.0% 3.0% £ 44,576 £ 45,901 £ 47,281 £ 48,679 £ 50,199
7 7 Shared Ownership Management Charges
Management charges for shared ownership properties are based on the full recovery of estimated costs. There are no proposals to increase the charges over the next 5 years. It is estimated that 1 of our shared ownership properties will be sold each year and that this income will gradually diminish over the next 20 years until all the properties have been sold Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 Annual increase 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% £ 2,220 £ 2,100 £ 1,980 £ 1,860 £ 1,740
GRANTS FROM THE SCOTTISH GOVERNMENT, HIGHLAND COUNCIL AND OTHER INCOME
8 8 Release of Deferred Housing Grants
Grants received for the construction and acquisition of housing properties are deferred and released as income in annual instalments over the life of the properties concerned. Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 Social Housing Grant £ 1,475,000 £ 1,494,000 £ 1,497,000 £ 1,513,000 £ 1,513,000 Based on future Other Housing Grants £ 51,000 £ 51,000 £ 51,000 £ 51,000 £ 51,000 development £ 1,526,000 £ 1,545,000 £ 1,548,000 £ 1,564,000 £ 1,564,000
9 9 Project Management Fees Internal fees for years 1 to 5 are taken from the Development Plan and are based on the amount required to operate the plan with an annual allowance for inflation. External fees for years 1 to 5 are based on fees receivable for projects managed for external organisations with an annual allowance for inflation. Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 Internal fee income £ 118,996 £ 70,283 £ 8,711 £ - £ - £ - External fee income £ - £ - £ - £ - £ - £ -
1 0 10 Care & Repair Administration Grant Care and Repair is funded by Highland Council in line with the agreed Care & Repair Agency Agreement. Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 THC admin grant £ 62,803 £ 62,803 £ 62,803 £ 62,803 £ 62,803 Drawing Fees£ 5,000 £ 5,000 £ 5,000 £ 5,000 £ 5,000 £ - £ 67,803 £ 67,803 £ 67,803 £ 67,803 £ 67,803
1 1 11 Shared Equity Admin Allowance The anticipated number each year and the level of allowance is assumed to be as follows:- Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 Target 6 6 6 6 6 6 Grant£ 500 £ 510 £ 520 £ 530 £ 541 Annual inflation Total £ 3,000 £ 3,060 £ 3,120 £ 3,180 £ 3,246
1 2 12 Disabled Adaptation - Admin Grant The target for each of the years covered and the revenue generated is shown below. Annual increases for years 6 to 30 have been estimated using our general assumptions on inflation (see above). Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 Gross expenditure £ 66,297 £ 67,628 £ 68,981 £ 70,356 £ 71,764 Annual inflation Admin grant included above 10% 10% 10% 10% 10% 10% Total admin grant £ 6,027 £ 6,148 £ 6,271 £ 6,396 £ 6,524
1 13 CDM Coordinator Fees Years 1 to 5 are taken from the Development Plan. Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 Internal fee income£ 11,864 £ 7,656 £ - £ - £ - £ - External fee income£ - £ - £ - £ - £ - £ - £ 11,864 £ 7,656 £ - £ - £ - £ -
14 Clerk of Works Fees Years 1 to 5 are taken from the Development Plan. Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 Internal fee income£ 124,434 £ 61,449 £ 3,534 £ - £ - £ - External fee income£ - £ - £ - £ - £ - £ - £ 124,434 £ 61,449 £ 3,534 £ - £ - £ -
15 Factoring Fees The fees are set annually by the Association and assumed increases based on CPI plus 1%. Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 For details see the factoring database 108 108 108 108 108 Annual inflation £ 10,400 £ 10,712 £ 11,033 £ 11,364 £ 11,705
16 Handyperson Income The Handyperson Service secures its income on a year by year basis. Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 NHS grant£ 118,551 £ 118,551 £ 118,551 £ 118,551 £ 118,551 THC grant£ 44,724 £ 44,724 £ 44,724 £ 44,724 £ 44,724 £ - Total £ 163,275 £ 163,275 £ 163,275 £ 163,275 £ 163,275
17 Energy Advice Income Year 1 Year 2 Year 3 Year 4 Year 5 2020/21 2021/22 2022/23 2023/24 2024/25 EPCs£ 1,000 £ 1,000 £ 1,000 £ 1,000 £ 1,000 Grant income£ - £ - £ - £ - £ - Total £ 1,000 £ 1,000 £ 1,000 £ 1,000 £ 1,000
18 Commercial and Other Rents Offices Bridge Road, Portree - £18,250 p.a. Hamilton House, Kyle - £9,323 p.a. Tech Services Store - £6,000 p.a. 5 Station Road, Kyle - £10,500 p.a. Main Street Kyle Unit 1 - £7,000 p.a. Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 £ 51,073 £ 51,073 £ 51,073 £ 53,627 £ 53,627 Annual inflation
19 Lease Income The Association leases properties to NWHCE for use as housing at mid-market rents. Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 Number of properties leased 5 5 5 5 5 Annual inflation Lease Income£ 21,423 £ 22,068 £ 22,728 £ 23,412 £ 24,120
20 Property Management Fees Income is received for managing properties on behalf of other organisations as follows: HIE (2 properties) £3,373 p.a. LINK (12 Properties) £6,553 p.a HSCHT (1 property) £1,524 p.a. NTS (2 properties) £3,217 p.a. Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 Total£ 14,667 £ 14,960 £ 15,259 £ 15,564 £ 15,875 Annual inflation
21 Renewable Heat Incentives Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to7 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to2028 £ 89,413 £ 83,090 £ 73,187 £ 71,092 £ 71,092 Per RHI scheduel
22 Feed-in Tariffs Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 £ - £ - £ - £ - £ - £ -
23 Release of Non-Housing Deferred Grants Grants awarded for the construction and acquisition of non-housing assets are released as income in annual instalments over the life of the assets concerned. Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 Non-Housing Capital Grants £ - £ - £ - £ - £ - £ -
2 24 Income for Projects and Services Carried out on Behalf of Other Organisations See Note 37 below for corresponding expenditure Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 The Highland Council - Care & Repair Grants £ 300,000 £ 300,000 £ 300,000 £ 300,000 £ 300,000 £ - The Highland Council - Housing Projects £ - £ - £ - £ - £ - £ - £ 300,000 £ 300,000 £ 300,000 £ 300,000 £ 300,000 £ -
25 Gains/Losses on disposal of assets This is based on an assumption of gains arising on 1 outright shared ownership sale each year and losses arising from the disposal of housing components which are being replaced as part of the Association's asset management strategy . Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 11 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 Gains on shared ownership sales£ 50,000 £ 50,000 £ 50,000 £ 50,000 £ 50,000 £ 50,000 Less losses on disposal of components £ 50,000 £ 50,000 £ 50,000 £ 50,000 £ 50,000 £ 50,000 £ - £ - £ - £ - £ - £ -
26 Bank Interest Receivable This is an amalgamation of all interest earned by the association and assumes an average interest rate equivalent to the prevailing bank base plus 0.05%. Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 Base rate 0.75% 1.00% 1.25% 1.50% 1.75% 2.00% Deposit rate 0.80% 1.05% 1.30% 1.55% 1.80% 1.85% £ 17,859 £ 16,054 £ 15,268 £ 16,191 £ 16,695
EXPENDITURE
27 Salaries & Associated Costs Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 Basic Assumptions Overtime 0% 0% 0% 0% 0% 0% Employers NI (average rate) 12.0% 12.0% 12.0% 12.0% 12.0% 12.0% Pensions Care 1/80th 11.6% 11.6% 11.6% 11.6% 11.6% 11.6% Pensions - other 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%
Salaries£ 1,480,340 £ 1,532,512 £ 1,569,700 £ 1,634,961 £ 1,667,166 Employer's NI Costs£ 177,583 £ 183,841 £ 188,307 £ 196,136 £ 200,004 Pensions - Direct Contribution Scheme£ 19,731 £ 20,123 £ 20,661 £ 22,650 £ 23,067 Pensions - Defined Benefit Scheme£ 125,000 £ 127,625 £ 130,305 £ 133,042 £ 135,835 Pension Deficit Contribution (ends 2022)£ 130,150 £ 134,055 £ 59,878 £ - £ - Accrued holiday pay£ - £ - £ - £ - £ - Total salary costs£ 1,932,804 £ 1,998,156 £ 1,968,851 £ 1,986,789 £ 2,026,072
The totals above include the following amounts which relate to Direct Labour and have been allocated to other account areas: £ 546,946 £ 531,794 £ 546,705 £ 598,175 £ 609,879
28 Recruitment Costs Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 £ 3,000 £ 3,060 £ 3,121 £ 3,183 £ 3,247 Annual inflation
29 Other Staff Costs Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 £ 1,200 £ 1,224 £ 1,248 £ 1,273 £ 1,298 Annual inflation
30 Staff Travel & Subsistence Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 £ 24,850 £ 25,347 £ 25,854 £ 26,371 £ 26,898 Annual inflation
31 Motor Vehicles Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 Vehicle costs£ 198,269 £ 194,786 £ 198,673 £ 202,654 £ 206,714 Annual inflation
The totals above include the following amounts which relate to Direct Labour and have been allocated to other account areas: £ 84,634 £ 84,355 £ 86,037 £ 87,759 £ 89,518
32 Office Related Costs Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 Office Rates/Water Charges£ 3,200 £ 3,260 £ 3,330 £ 3,400 £ 3,470 Rents payable£ 28,333 £ 28,900 £ 29,480 £ 30,070 £ 30,670 Office Repairs£ 8,000 £ 8,160 £ 8,320 £ 8,490 £ 8,660 Office Property Insurance£ 2,500 £ 2,550 £ 2,600 £ 2,650 £ 2,700 General Insurances£ 22,000 £ 22,440 £ 22,890 £ 23,350 £ 23,820 Telephone£ 14,000 £ 14,280 £ 14,570 £ 14,860 £ 15,160 Heat & Light£ 7,500 £ 7,650 £ 7,800 £ 7,960 £ 8,120 Postage£ 8,000 £ 8,160 £ 8,320 £ 8,490 £ 8,660 Stationery£ 11,000 £ 11,220 £ 11,440 £ 11,670 £ 11,900 Printing£ 6,000 £ 6,120 £ 6,242 £ 6,367 £ 6,494 Publicity and Advertising£ 4,000 £ 4,080 £ 4,160 £ 4,240 £ 4,320 Equipment Repairs & Renewals£ 4,000 £ 4,080 £ 4,160 £ 4,240 £ 4,320 IT Consumables/Licences/Software£ 39,503 £ 14,793 £ 22,310 £ 16,251 £ 26,253 Courses, Seminars, & Training£ 10,000 £ 10,200 £ 10,400 £ 10,610 £ 10,820 Conferences£ 2,000 £ 2,040 £ 2,080 £ 2,120 £ 2,160 Subscriptions £ 17,000 £ 17,340 £ 17,690 £ 18,040 £ 18,400 Annual inflation HHR - Admin£ 3,495 £ 3,560 £ 3,630 £ 3,700 £ 3,770 HHR -Other (includes new post funding year 1)£ 10,200 £ 3,260 £ 3,330 £ 3,400 £ 3,470 Committee Travel & Subsistence£ 4,000 £ 4,080 £ 4,160 £ 4,240 £ 4,320 IT Support Contracts£ 16,403 £ 16,888 £ 17,386 £ 17,897 £ 18,422 Sponsorships£ 3,000 £ 3,060 £ 3,120 £ 3,180 £ 3,240 Tenant Participation£ 1,000 £ 1,020 £ 1,040 £ 1,060 £ 1,080 Office Cleaning£ 8,500 £ 8,670 £ 8,840 £ 9,020 £ 9,200 Bank charges£ 7,500 £ 7,650 £ 7,800 £ 7,960 £ 8,120 Handyperson costs£ 8,500 £ 8,670 £ 8,840 £ 9,020 £ 9,200 Health and Safety£ 5,000 £ 5,100 £ 5,200 £ 5,300 £ 5,410 Room Hire£ 500 £ 510 £ 520 £ 530 £ 540 Hospitality£ 500 £ 510 £ 520 £ 530 £ 540 Compensation£ 1,000 £ 1,020 £ 1,040 £ 1,060 £ 1,080 Office Consumables£ 4,500 £ 4,590 £ 4,680 £ 4,770 £ 4,870 Vat recoverable £ (2,000) £ (2,040) £ (2,080) £ (2,120) £ (2,160)
The totals above include the following amounts which relate to Direct Labour and have been allocated to other account areas: £ 36,368 £ 36,558 £ 36,752 £ 30,099 £ 30,301
3 33 Professional Costs Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 Consultancy£ 22,000 £ 10,000 £ 10,000 £ 10,000 £ 10,000 Audit & Accountancy£ 18,500 £ 18,870 £ 19,250 £ 19,640 £ 20,030 Annual inflation Legal Fees£ 10,000 £ 10,200 £ 10,400 £ 10,610 £ 10,820
34 Housing Property Costs Expenditure is shown net of income received from insurance recoveries. Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 Reactive Repairs 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 Reactive Repairs£ 242,794 £ 217,902 £ 204,694 £ 194,608 £ 197,756 Direct Labour £ 257,575 £ 251,698 £ 258,171 £ 276,118 £ 281,387 Total £ 500,369 £ 469,600 £ 462,865 £ 470,726 £ 479,143 Cyclical Maintenance Cyclical maintenance£ 150,350 £ 138,006 £ 95,537 £ 37,322 £ 41,737 Direct Labour £ 212,440 £ 207,593 £ 212,932 £ 227,733 £ 232,080 Total £ 362,790 £ 345,599 £ 308,469 £ 265,055 £ 273,817 Planned Maintenance (see note 39 below) Planned Maintenance - Capital Components£ 471,230 £ 208,472 £ 653,772 £ 449,688 £ 857,098 Direct Labour £ 164,300 £ 160,551 £ 164,680 £ 176,119 £ 179,479 Per Asset Management Total treated as capital expenditure £ 635,530 £ 369,023 £ 818,452 £ 625,807 £ 1,036,577 Strategy
Other Planned Maintenance£ - £ - £ - £ - £ - Direct Labour £ - £ - £ - £ - £ - Total charged to Income an Expenditure A/c £ - £ - £ - £ - £ -
Property Service Charges Service charges - expenditure£ 4,200 £ 4,370 £ 4,546 £ 4,730 £ 4,921 Direct Labour £ 33,633 £ 32,866 £ 33,711 £ 36,054 £ 36,742 Property Service Charges £ 37,833 £ 37,236 £ 38,257 £ 40,784 £ 41,663
Property Insurance£ 50,000 £ 55,000 £ 60,000 £ 65,000 £ 70,000 Annual Inflation
Exceptional Circumstances Fund£ 3,000 £ 3,000 £ 3,000 £ 3,000 £ 3,000 Tenancy Sustainment Fund£ 6,000 £ 6,000 £ 6,000 £ 6,000 £ 6,000 Annual Inflation Total£ 9,000 £ 9,000 £ 9,000 £ 9,000 £ 9,000
35 Other Housing Costs Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 Bad Debts to be Written Off - Rents£ 10,000 £ 10,200 £ 10,404 £ 10,612 £ 10,824 Bad Debts to be Written Off - Others£ 5,000 £ 5,100 £ 5,202 £ 5,306 £ 5,412 Annual Inflation Voids£ 10,000 £ 10,200 £ 10,404 £ 10,612 £ 10,824
36 Expendiure on Projects and Services Carried out on Behalf of Other Organisations Expenditure is reimbursed in full - see Note 24 above for corresponding income Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 The Highland Council - Care & Repair Grants £ 300,000 £ 300,000 £ 300,000 £ 300,000 £ 300,000 £ - The Highland Council - Housing Projects £ - £ - £ - £ - £ - £ - £ 300,000 £ 300,000 £ 300,000 £ 300,000 £ 300,000 £ -
37 Depreciation Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 Depreciation based on existing policy 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 Housing Properties - % based on components£ 1,709,648 £ 1,930,644 £ 2,003,351 £ 2,069,048 £ 2,157,079 Office and other premises - % based on components£ 16,296 £ 15,807 £ 15,333 £ 14,873 £ 14,427 Based on future Office Equipment - 15% reducing balance£ 2,401 £ 2,280 £ 2,196 £ 2,138 £ 2,096 development and other IT Equipment - 33.3% straight line£ 13,775 £ 7,567 £ 7,011 £ 6,016 £ 15,602 fixed assets programme Motor Vehicles - 25% reducing balance£ 12,517 £ 9,387 £ 17,041 £ 12,780 £ 9,585
38 Finance Costs
The cost of finance is taken from the loans budget using detailed repayment schedules. Actual interest rates are used to forecast the cost of existing loans. The following assumptions are used to forcast the cost of future borrowing. Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 Borrowing rate 0.75% 1.00% 1.25% 1.50% 1.75% 2.00% Margin 1.80% 1.80% 1.80% 1.80% 1.80% 1.80% Total interest rate 2.55% 2.80% 3.05% 3.30% 3.55% 3.80% Annual interest - housing properties£ 504,002 £ 621,477 £ 712,662 £ 726,041 £ 801,919
Net Interest on Pension Liability£ 24,000 £ 24,000 £ 24,000 £ 24,000 £ 24,000
Ordinary Bank Interest and Bank Charges are simply estimated on present levels with an uplift for greater activity
Bank interest payable£ 500 £ 510 £ 520 £ 530 £ 540 Inflation
Annual loan fees£ 3,000 £ 3,000 £ 3,000 £ - £ -
39 Capital Expenditure Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 Housing Property - driven by Development Plan£ 10,359,882 £ 4,710,769 £ 799,859 £ 35,335 £ - New Properties TBC (10 units p.a. yrs 4 & 5)£ - £ - £ - £ 1,353,040 £ 1,380,100 Planned Maintenance (see note 34 above)£ 635,530 £ 369,023 £ 818,452 £ 625,807 £ 1,036,577 Office and Other Premises£ 50,000 £ - £ - £ - £ - Based on future Office Equipment£ 2,000 £ 2,000 £ 2,000 £ 2,000 £ 2,000 development IT Equipment £ 7,720 £ 4,151 £ 5,899 £ 4,027 £ 34,774 Motor Vehicles - net replacement costs£ - £ - £ 40,000 £ - £ - Total capital expenditure£ 11,055,132 £ 5,085,943 £ 1,666,210 £ 2,020,209 £ 2,453,451
4 40 Finance Utilised Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 Grant - TBC £ 6,274,592 £ 932,686 £ 174,000 £ - £ - Grant - TBC (10 units pa yrs 4 & 5)£ - £ - £ - £ 798,294 £ 814,259 Private Finance - driven by the Development Plan£ 4,068,916 £ 3,778,083 £ 625,859 £ 35,335 £ - Private Finance - TBC (10 units pa yrs 4 & 5)£ - £ - £ - £ 554,746 £ 565,841 Based on future Private Finance - Planned Maintenance£ - £ - £ 818,452 £ 625,807 £ 1,036,577 development and other Bridging Finance£ - £ - £ - £ - £ - fixed assets programme Other funding£ 16,374 £ - £ - £ - £ - Shared Equity sales income£ - £ - £ - £ - £ - Total finance utilised£ 10,359,882 £ 4,710,769 £ 1,618,311 £ 2,014,182 £ 2,416,677
Shares issued£ 10 £ 10 £ 10 £ 10 £ 10
41 Loans repaid Year 1 Year 2 Year 3 Year 4 Year 5 Years 6 to 30 Scheduled Loan Repayments 2020/21 2021/22 2022/23 2023/24 2024/25 2026 to 2050 Private Finance - Housing £ 776,262 £ 894,278 £ 975,786 £ 1,106,532 £ 1,169,030 Based on future Private Finance - Other £ - £ - £ - £ - £ - development Total scheduled loan repayments£ 776,262 £ 894,278 £ 975,786 £ 1,106,532 £ 1,169,030
Early Repayments/Maturities Alia Bond Maturity£ - £ - £ 1,195,749 £ - £ - Other Early Repayments/Maturities£ - £ - £ - £ - £ - Total EarlyRrepayments/Maturities£ - £ - £ 1,195,749 £ - £ -
DEVELOPMENT
42 Units to be constructed New Units For years 1 to 5 the total number of new units has been assumed at: Affordable Rent 151 Shared Equity - Mid-Market Rent -
Year 6+ From year 6 onwards the the number of new units each year has been assumed at: New Units Affordable Rent - Shared Equity - Mid-Market Rent -
43 Cost of construction Unit Cost Unit cost - The Highland Council benchmark figure £ 127,500
44 Development Funding General needs housing Percentage Grant 59.0% Private Finance 41.0% Other Funding
OTHER FIXED ASSETS
45 Office Equipment Years 1 to 5 per Financial Plan then £1,000 per year plus inflation
46 IT Equipment Years 1 to 5 per Financial Plan then £5,000 per year plus inflation
47 Motor Vehicles Years 1 to 5 per Financial Plan then vehicles renewed on a 3 year cycle thereafter
48 Housing furniture Funded 100% from the Furniture Replacement Reserve.
5 STATEMENT OF COMPREHENSIVE INCOME
PROJECTIONS FOR FIVE YEARS TO 31/03/25 Year to Year to Year to Year to Year to 31/03/2021 31/03/2022 31/03/2023 31/03/2024 31/03/2025 INCOME ££ £ £ £ Rents Receivable Rent 3,172,077 3,530,265 3,801,069 3,953,353 4,118,990 Service Charges 44,576 45,901 47,281 48,679 50,199 Management Charges 2,220 2,100 1,980 1,860 1,740 Voids (10,000 ) (10,200 ) (10,404 ) (10,612 ) (10,824 ) 3,208,873 3,568,066 3,839,926 3,993,280 4,160,105
The Scottish Government/Highland Council Grants and Other Income
Release of Deferred Social Housing Grant 1,475,000 1,494,000 1,497,000 1,513,000 1,513,000 Release of Other Deferred Housing Grants 51,000 51,000 51,000 51,000 51,000 Project Management Fees - Internal 118,996 70,283 8,711 - - Project Management Fees - External - - - - - Care and Repair Revenue Grants 67,803 67,803 67,803 67,803 67,803 Shared Equity Admin Allowance 3,000 3,060 3,120 3,180 3,246 Admin Grant - Disabled Adaptation 6,027 6,148 6,271 6,396 6,524 CDM Coordinator Fees 11,864 7,656 - - - Clerk of Works Fees 124,434 61,449 3,534 - - Factoring Fees 10,400 10,712 11,033 11,364 11,705 Handyperson Income 163,275 163,275 163,275 163,275 163,275 Energy Advice Service -Income 1,000 1,000 1,000 1,000 1,000 Commercial and other rent income 51,073 51,073 51,073 53,627 53,627 Properties leased to NWHCE 21,423 22,068 22,728 23,412 24,120 Property Management Fees - Other 14,667 14,960 15,259 15,564 15,875 Renewable Heat Incentives 89,413 83,090 73,187 71,092 71,092 Release of Non-housing Deferred Grant - - - - - 2,209,375 2,107,577 1,974,994 1,980,713 1,982,267 Projects for Other Organisations The Highland Council - Care & Repair Grants 300,000 300,000 300,000 300,000 300,000 The Highland Council - Housing Projects - - - - - 300,000 300,000 300,000 300,000 300,000
TOTAL INCOME 5,718,248 5,975,643 6,114,920 6,273,993 6,442,372
OPERATING COSTS Staff Related Costs Salaries 1,480,340 1,532,512 1,569,700 1,634,961 1,667,166 Employer's NI Costs 177,583 183,841 188,307 196,136 200,004 Pensions - Direct Contribution Scheme 19,731 20,123 20,661 22,650 23,067 Pensions - Defined Benefit Scheme 125,000 127,625 130,305 133,042 135,835 Pension Deficit Contribution 130,150 134,055 59,878 - - Recruitment Costs 3,000 3,060 3,121 3,183 3,247 Other Staff Costs 1,200 1,224 1,248 1,273 1,298 Staff Travel & Subsistence 24,850 25,347 25,854 26,371 26,898 Motor Vehicle Expenses 198,269 194,786 198,673 202,654 206,714 Sub total 2,160,123 2,222,573 2,197,747 2,220,270 2,264,229 Allocated to other account areas (631,580 ) (616,149 ) (632,742 ) (685,934 ) (699,397 ) 1,528,543 1,606,424 1,565,005 1,534,336 1,564,832
Office Related Costs Office Rates 3,200 3,260 3,330 3,400 3,470 Rents payable 28,333 28,900 29,480 30,070 30,670 Property Repairs (Non-Housing) 8,000 8,160 8,320 8,490 8,660 Office Property Insurance 2,500 2,550 2,600 2,650 2,700 General Insurances 22,000 22,440 22,890 23,350 23,820 Telephone 14,000 14,280 14,570 14,860 15,160 Heat & Light 7,500 7,650 7,800 7,960 8,120 Postage 8,000 8,160 8,320 8,490 8,660 Stationery 11,000 11,220 11,440 11,670 11,900 Printing 6,000 6,120 6,242 6,367 6,494 Publicity and Advertising 4,000 4,080 4,160 4,240 4,320 Equipment Repairs & Renewals 4,000 4,080 4,160 4,240 4,320 IT equipment/licences/software 39,503 14,793 22,310 16,251 26,253 Courses, Seminars & Training 10,000 10,200 10,400 10,610 10,820 Conferences 2,000 2,040 2,080 2,120 2,160 Subscriptions 17,000 17,340 17,690 18,040 18,400 Highland CHR - Admin 3,495 3,560 3,630 3,700 3,770 Highland CHR - Other 10,200 3,260 3,330 3,400 3,470 Committee Travel & Subsistence 4,000 4,080 4,160 4,240 4,320 Support Contracts 16,403 16,888 17,386 17,897 18,422 Sponsorships 3,000 3,060 3,120 3,180 3,240 Tenant Participation 1,000 1,020 1,040 1,060 1,080 Office Cleaning 8,500 8,670 8,840 9,020 9,200 Handyperson materials etc 8,500 8,670 8,840 9,020 9,200 Health and Safety 5,000 5,100 5,200 5,300 5,410 Room Hire 500 510 520 530 540 Hospitality 500 510 520 530 540 Compensation 1,000 1,020 1,040 1,060 1,080 Office Consumables 4,500 4,590 4,680 4,770 4,870 Bank Charges 7,500 7,650 7,800 7,960 8,120 VAT recoverable (2,000 ) (2,040 ) (2,080 ) (2,120 ) (2,160 ) Allocated to other account areas (36,368 ) (36,558 ) (36,752 ) (30,099 ) (30,301 ) 222,766 195,263 207,066 212,256 226,728
6 STATEMENT OF COMPREHENSIVE INCOME
PROJECTIONS FOR FIVE YEARS TO 31/03/25 Year to Year to Year to Year to Year to 31/03/2021 31/03/2022 31/03/2023 31/03/2024 31/03/2025 OPERATING COSTS (continued) ££ £ £ £ Professional Costs Consultancy 22,000 10,000 10,000 10,000 10,000 Audit & Accountancy 18,500 18,870 19,250 19,640 20,030 Legal Fees 10,000 10,200 10,400 10,610 10,820 50,500 39,070 39,650 40,250 40,850
Property Costs Repairs and Maintenance 500,369 469,600 462,865 470,726 479,143 Cyclical Maintenance 362,790 345,599 308,469 265,055 273,817 Planned Maintenance (not capitalised) - - - - - Property Service Charges 37,833 37,236 38,257 40,784 41,663 Property Insurance 50,000 55,000 60,000 65,000 70,000 Exceptional Circumstances Fund 9,000 9,000 9,000 9,000 9,000 Bad Debts - rents and services charges 10,000 10,200 10,404 10,612 10,824 Bad Debts - other 5,000 5,100 5,202 5,306 5,412 974,992 931,735 894,197 866,483 889,859 Biomass System Expenditure for Other Organisations The Highland Council - Care & Repair Grants 300,000 300,000 300,000 300,000 300,000 The Highland Council - Housing Projects - - - - - 300,000 300,000 300,000 300,000 300,000 Depreciation: Housing Property 1,709,648 1,930,644 2,003,351 2,069,048 2,157,079 Office Property 16,296 15,807 15,333 14,873 14,427 Office Equipment 2,401 2,280 2,196 2,138 2,096 IT Equipment 13,775 7,567 7,011 6,016 15,602 Motor Vehicles 12,517 9,387 17,041 12,780 9,585 1,754,637 1,965,685 2,044,932 2,104,855 2,198,789
Total Operating Costs 4,831,439 5,038,177 5,050,850 5,058,180 5,221,059
Operating Surplus/(Deficit) 886,809 937,466 1,064,070 1,215,813 1,221,313
Gains/(Losses) on Disposal of Assets - - - - -
Bank Interest Receivable 17,859 16,054 15,268 16,191 16,695
Finance Costs: Bank Interest 500 510 520 530 540 Annual loan fees 3,000 3,000 3,000 - - Private Finance Loan Interest 504,002 621,477 712,662 726,041 801,919 Interest on Pension Liability 24,000 24,000 24,000 24,000 24,000 Finance Costs 531,502 648,987 740,182 750,571 826,459
NET SURPLUS/(DEFICIT) 373,166 304,533 339,156 481,433 411,549
7 STATEMENT OF FINANCIAL POSITION 0.00 0.00 0.00 0.00 - 0.00 31/03/2020 31/03/2021 31/03/2022 31/03/2023 31/03/2024 31/03/2025 £ £ £ £ £ £ TANGIBLE FIXED ASSETS Housing Properties Hosing Properties - Cost 87,202,054 98,197,467 103,277,259 104,895,570 106,909,750 109,326,428 Housing properties Depreciation (18,853,148) (20,562,796) (22,493,440) (24,496,791) (26,565,839) (28,722,918) 68,348,906 77,634,671 80,783,819 80,398,779 80,343,911 80,603,510 Other tangible fixed assets Investment Properties 197,500 197,500 197,500 197,500 197,500 197,500 Office Premises 493,210 526,914 511,107 495,774 480,901 466,474 Office Equipment 6,002 5,601 5,321 5,125 4,987 4,891 IT Equipment 24,604 18,549 15,133 14,021 12,032 31,204 Motor Vehicles 50,066 37,549 28,162 51,121 38,341 28,756 69,120,288 78,420,784 81,541,042 81,162,320 81,077,672 81,332,335
INVESTMENTS 1 1 1 1 1 1
CURRENT ASSETS Receivables - falling due within one year Rent Arrears (net of bad debt provision) 60,000 60,000 60,000 60,000 60,000 60,000 Trade Debtors (net of bad debt provision) 30,000 30,000 30,000 30,000 30,000 30,000 Care & Repair debtor 30,000 30,000 30,000 30,000 30,000 30,000 Other debtors 10,000 10,000 10,000 10,000 10,000 10,000 Prepayments & Accrued Income 40,000 40,000 40,000 40,000 40,000 40,000 Funding Receivable ------Due from group undertaking ------170,000 170,000 170,000 170,000 170,000 170,000
Cash & Bank 3,682,956 2,799,638 2,274,414 2,089,827 2,015,567 1,856,110
CURRENT LIABILITIES Payables - falling due within one year Loans repayable within one year 546,000 894,278 975,786 1,106,532 1,169,030 1,218,660 Bank Overdrafts ------Trade Creditors 70,000 70,000 70,000 70,000 70,000 70,000 Other Creditors 20,000 20,000 20,000 20,000 20,000 20,000 Care & Repair creditor 10,000 10,000 10,000 10,000 10,000 10,000 Social Security and other taxation 35,000 35,000 35,000 35,000 35,000 35,000 Accrued Charges & Prepaid Income 50,000 50,000 50,000 50,000 50,000 50,000 731,000 1,079,278 1,160,786 1,291,532 1,354,030 1,403,660 Deferred income -falling due within one year Scottish Housing Grants 1,359,000 1,475,000 1,494,000 1,497,000 1,513,000 1,513,000 Other Housing Grants 51,000 51,000 51,000 51,000 51,000 51,000 Non-Housing Grants - 1,410,000 1,526,000 1,545,000 1,548,000 1,564,000 1,564,000
NET CURRENT ASSETS 1,711,956 364,360 (261,372) (579,705) (732,463) (941,550)
TOTAL ASSETS LESS CURRENT LIABILITIES 70,832,245 78,785,145 81,279,671 80,582,616 80,345,210 80,390,786
LONG-TERM LIABILITIES Payables - falling due after more than one year Housing Loans repayable after more than one year 18,431,000 21,375,377 24,177,674 24,515,453 24,562,311 24,946,069 Other Loans repayable after more than one year - 18,431,000 21,375,377 24,177,674 24,515,453 24,562,311 24,946,069
Deferred income - falling due after more than one year Scottish Housing Grants 44,191,090 48,874,682 48,313,368 46,990,368 46,275,661 45,576,920 Other Housing Grants 1,876,422 1,841,796 1,790,796 1,739,796 1,688,796 1,637,796 Non-Housing Grants ------46,067,512 50,716,478 50,104,164 48,730,164 47,964,457 47,214,716
Net Pension Liability 826,000 826,000 826,000 826,000 826,000 826,000
PROVISIONS Holiday Pay 28,453 14,834 14,834 14,834 14,834 14,834 Pension Deficit ------28,453 14,834 14,834 14,834 14,834 14,834
NET ASSETS 5,479,280 5,852,456 6,156,999 6,496,165 6,977,608 7,389,167
CAPITAL AND RESERVES Called Up Share Capital 174 184 194 204 214 224 Furniture Replacement Reserve 45,184 45,184 45,184 45,184 45,184 45,184 Revenue Reserve 5,433,922 5,807,088 6,111,621 6,450,777 6,932,210 7,343,759 5,479,280 5,852,456 6,156,999 6,496,165 6,977,608 7,389,167 - - 0.00 0.00 0.00 0.00 - 0.00 Loans 18,977,000 -
8 Quarter to Quarter to Quarter to Quarter to Year to Year to Year to Year to Year to CASHFLOW FORECAST 30-Jun-20 30-Sep-20 31-Dec-20 31-Mar-21 31-Mar-21 31-Mar-22 31-Mar-23 31-Mar-24 31-Mar-25 £000 £000 £000 £000 £000 £000 £000 £000 £000 CASH INFLOW Rents & Service Charges 771,463 800,389 815,374 821,647 3,208,873 3,568,066 3,839,926 3,993,280 4,160,105 Grants and Other Income 170,844 170,844 170,844 170,844 683,375 562,577 426,994 416,713 418,267 Other Organisations 75,000 75,000 75,000 75,000 300,000 300,000 300,000 300,000 300,000 Bank Interest Receivable 4,465 4,465 4,465 4,465 17,859 16,054 15,268 16,191 16,695 Capital Grant 1,133,150 2,014,090 2,112,477 1,014,875 6,274,592 932,686 174,000 798,294 814,259 Other capital funding 16,374 - - - 16,374 - - - - Private Finance 1,182,890 1,031,028 362,134 1,492,864 4,068,916 3,778,083 1,444,311 1,215,888 1,602,418 Shared Equity Sales ------Sale of other assets ------Shares 10 10 10 10 10 10 Movement in Debtors ------Total Inflow 3,354,186 4,095,815 3,540,294 3,579,705 14,569,999 9,157,476 6,200,509 6,740,376 7,311,754
CASH OUTFLOW Staff Costs 382,136 382,136 382,136 382,136 1,528,543 1,606,424 1,565,005 1,534,336 1,564,832 Office Related Costs 55,692 55,692 55,692 55,692 222,766 195,263 207,066 212,256 226,728 Professional Costs 12,625 12,625 12,625 12,625 50,500 39,070 39,650 40,250 40,850 Property Costs 243,748 243,748 243,748 243,748 974,992 931,735 894,197 866,483 889,859 Other Organisations 75,000 75,000 75,000 75,000 300,000 300,000 300,000 300,000 300,000 Finance Costs 132,876 132,876 132,876 132,876 531,502 648,987 740,182 750,571 826,459 Development Costs 2,332,414 3,045,118 2,474,611 2,507,739 10,359,882 4,710,769 799,859 1,388,375 1,380,100 Capital maintenance 158,883 158,883 158,883 158,883 635,530 369,023 818,452 625,807 1,036,577 Othe capital expenditure 14,930 14,930 14,930 14,930 59,720 6,151 47,899 6,027 36,774 Scheduled Loan Repayments 194,065 194,065 194,065 194,065 776,262 894,278 975,786 1,106,532 1,169,030 Movement in Creditors - - - 13,619 13,619 ( 19,000 ) ( 3,000 ) ( 16,000 ) - Total Outflow 3,602,368 4,315,072 3,744,565 3,791,312 15,453,317 9,682,700 6,385,095 6,814,637 7,471,210
Net Movement in Cash ( 248,182 ) ( 219,257 ) ( 204,271 ) ( 211,607 ) ( 883,318 ) ( 525,224 ) ( 184,587 ) ( 74,261 ) ( 159,456 )
Opening Cash and Bank 3,682,956 3,434,774 3,215,517 3,011,245 3,682,956 2,799,638 2,274,414 2,089,827 2,015,567
Closing Cash and Bank 3,434,774 3,215,517 3,011,245 2,799,638 2,799,638 2,274,414 2,089,827 2,015,567 1,856,110
9 Buidheann Tigheadas Loch Aillse agus an Eilein Sgitheanaich Ltd. Lochalsh and Skye Housing Association STATEMENT OF COMPREHENSIVE INCOME
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Projections for 30 Years from 1 April 2020 to to to to to to to to to to 31-Mar-21 31-Mar-22 31-Mar-23 31-Mar-24 31-Mar-25 31-Mar-26 31-Mar-27 31-Mar-28 31-Mar-29 31-Mar-30 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 Income
Rents Receivable 3209 3568 3840 3993 4160 4309 4438 4571 4709 4850
Other Income 2209 2108 1975 1981 1982 1735 1707 1694 1690 1692
Projects for Other Organisations 300 300 300 300 300 300 300 300 300 300
Total Income 5718 5976 6115 6274 6442 6344 6446 6566 6698 6842
TOTAL NET INCOME 5718 5976 6115 6274 6442 6344 6446 6566 6698 6842
Operating Costs
Staff Costs 1529 1606 1565 1534 1565 1110 1132 1155 1178 1201
Office/Admin Costs 223 195 207 212 227 222 227 231 236 241
Professional Costs 51 39 40 40 41 42 43 43 44 45
Property Costs 975 932 894 866 890 856 866 877 944 1066
Expenditure for Other Organisations 300 300 300 300 300 300 300 300 300 300
Depreciation 1755 1966 2045 2105 2199 2265 2315 2341 2381 2439
Total Operating Costs 4831 5038 5051 5058 5221 4795 4883 4947 5083 5292
Operating Surplus/(Deficit) 887 937 1064 1216 1221 1549 1563 1618 1615 1550
Gain/Loss on Disposal of Assets ------
Bank Interest Receivable 18 16 15 16 17 13 14 15 12 14
Less Finance Costs 532 649 740 751 826 883 878 854 820 797
NET SURPLUS/(DEFICIT) 373 305 339 481 412 680 698 780 807 767
10 Buidheann Tigheadas Loch Aillse agus an Eilein Sgitheanaich Ltd. Lochalsh and Skye Housing Association STATEMENT OF COMPREHENSIVE INCOME
Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Projections for 30 Years from 1 April 2020 to to to to to to to to to to 31-Mar-31 31-Mar-32 31-Mar-33 31-Mar-34 31-Mar-35 31-Mar-36 31-Mar-37 31-Mar-38 31-Mar-39 31-Mar-40 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 Income
Rents Receivable 4995 5145 5299 5458 5622 5791 5965 6143 6328 6518
Other Income 1695 1697 1700 1703 1706 1708 1711 1714 1717 1720
Projects for Other Organisations 300 300 300 300 300 300 300 300 300 300
Total Income 6990 7142 7299 7461 7628 7799 7976 8158 8345 8538
TOTAL NET INCOME 6990 7142 7299 7461 7628 7799 7976 8158 8345 8538
Operating Costs
Staff Costs 1225 1250 1275 1300 1326 1353 1380 1407 1436 1464
Office/Admin Costs 246 250 256 261 266 271 277 282 288 293
Professional Costs 46 47 48 49 50 51 52 53 54 55
Property Costs 1017 982 929 939 949 959 969 978 987 1120
Expenditure for Other Organisations 300 300 300 300 300 300 300 300 300 300
Depreciation 2460 2494 2530 2578 2639 2678 2728 2804 2864 2979
Total Operating Costs 5294 5323 5337 5427 5530 5612 5705 5824 5929 6212
Operating Surplus/(Deficit) 1696 1819 1962 2034 2098 2187 2271 2333 2416 2326
Gain/Loss on Disposal of Assets ------
Bank Interest Receivable 15 14 19 18 16 15 18 22 26 33
Less Finance Costs 758 728 697 653 607 560 512 464 416 367
NET SURPLUS/(DEFICIT) 953 1105 1284 1399 1507 1642 1777 1891 2026 1992
11 Buidheann Tigheadas Loch Aillse agus an Eilein Sgitheanaich Ltd. Lochalsh and Skye Housing Association STATEMENT OF COMPREHENSIVE INCOME
Year 21 Year 22 Year 23 Year 24 Year 25 Year 26 Year 27 Year 28 Year 29 Year 30 Projections for 30 Years from 1 April 2020 to to to to to to to to to to 31-Mar-41 31-Mar-42 31-Mar-43 31-Mar-44 31-Mar-45 31-Mar-46 31-Mar-47 31-Mar-48 31-Mar-49 31-Mar-50 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 Income
Rents Receivable 6713 6915 7123 7336 7557 7783 8017 8258 8506 8761
Other Income 1723 1727 1730 1733 1737 1740 1743 1747 1751 1754
Projects for Other Organisations 300 300 300 300 300 300 300 300 300 300
Total Income 8737 8941 9152 9369 9593 9823 10061 10305 10556 10816
TOTAL NET INCOME 8737 8941 9152 9369 9593 9823 10061 10305 10556 10816
Operating Costs
Staff Costs 1494 1524 1554 1585 1617 1649 1682 1741 1775 1825
Office/Admin Costs 299 305 311 318 324 331 337 344 351 358
Professional Costs 56 57 58 60 61 62 63 64 66 67
Property Costs 1053 1014 1022 1030 1037 1045 1051 1033 1038 1130
Expenditure for Other Organisations 300 300 300 300 300 300 300 300 300 300
Depreciation 3029 3036 3076 3116 3166 3209 3265 3297 3321 3435
Total Operating Costs 6231 6236 6322 6408 6505 6595 6698 6779 6851 7115
Operating Surplus/(Deficit) 2506 2706 2831 2961 3089 3229 3362 3526 3705 3701
Gain/Loss on Disposal of Assets ------
Bank Interest Receivable 37 48 68 87 113 139 170 205 246 291
Less Finance Costs 316 265 222 181 147 117 94 77 63 52
NET SURPLUS/(DEFICIT) 2227 2489 2677 2868 3055 3250 3438 3654 3888 3939
12 Buidheann Tigheadas Loch Aillse agus an Eilein Sgitheanaich Ltd. Lochalsh and Skye Housing Association STATEMENT OF FINANCIAL POSITION - - - -
Estimated Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Projections for 30 Years from 1 April 2020 SOFP to to to to to to to to to to 31-Mar-20 31-Mar-21 31-Mar-22 31-Mar-23 31-Mar-24 31-Mar-25 31-Mar-26 31-Mar-27 31-Mar-28 31-Mar-29 31-Mar-30 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 Fixed Assets Housing properties 68349 77635 80784 80399 80344 80604 79310 78026 76243 74505 72720 Other fixed assets 771 786 757 764 734 729 752 735 718 737 781
Total Fixed Assets 69120 78421 81541 81162 81078 81332 80062 78761 76961 75242 73501
Current assets
Debtors 170 170 170 170 170 170 173 177 180 184 188 Bank 3683 2800 2274 2090 2016 1856 1939 2069 1749 1900 2026
Total Current Assets 3853 2970 2444 2260 2186 2026 2112 2246 1929 2084 2214
Payables - falling due within one year 731 1079 1161 1292 1354 1404 1471 1529 1584 1576 1557 Deferred income -falling due within one year 1410 1526 1545 1548 1564 1564 1564 1564 1564 1564 1564
Net Current Assets 1712 364 (261 ) (580 ) (732 ) (942 ) (922 ) (847 ) (1219 ) (1056 ) (907 )
TOTAL ASSETS LESS CURRENT LIABILITIES 70832 78785 81280 80583 80345 80391 79139 77914 75742 74186 72594
LONG-TERM LIABILITIES Payables - falling due after more than one year 18431 21375 24178 24515 24562 24946 24579 24219 22831 22033 21237
Deferred income - falling due after more than one year 46068 50716 50104 48730 47964 47215 45651 44087 42523 40959 39395
Provisions 28 15 15 15 15 15 15 15 15 15 15
Net Pension Liability 826 826 826 826 826 826 826 826 826 826 826
Net Assets 5479 5852 6157 6496 6978 7389 8069 8767 9547 10354 11121
Furniture Replacement Reserve 45 45 45 45 45 45 45 45 45 45 45 Revenue Reserve 5434 5807 6112 6451 6932 7344 8023 8722 9502 10309 11076
Total Reserves 5479 5852 6157 6496 6977 7389 8069 8767 9547 10354 11121
13 Buidheann Tigheadas Loch Aillse agus an Eilein Sgitheanaich Ltd. Lochalsh and Skye Housing Association STATEMENT OF FINANCIAL POSITION ------
Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Projections for 30 Years from 1 April 2020 to to to to to to to to to to 31-Mar-31 31-Mar-32 31-Mar-33 31-Mar-34 31-Mar-35 31-Mar-36 31-Mar-37 31-Mar-38 31-Mar-39 31-Mar-40 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 Fixed Assets Housing properties 70931 69132 67583 66193 64686 62944 61268 59718 58049 56432 Other fixed assets 740 745 711 685 702 675 653 676 652 732
Total Fixed Assets 71671 69877 68295 66879 65388 63620 61921 60394 58701 57164
Current assets
Debtors 191 195 199 203 207 211 216 220 224 229 Bank 1893 2459 2340 2124 2046 2333 2765 3214 3935 4416
Total Current Assets 2084 2655 2539 2328 2253 2544 2981 3434 4159 4645
Payables - falling due within one year 1585 1634 1683 1734 1786 1709 1640 1674 1729 1748 Deferred income -falling due within one year 1564 1564 1564 1564 1564 1564 1564 1564 1564 1564
Net Current Assets (1064 ) (544 ) (708 ) (970 ) (1097 ) (729 ) (223 ) 196 867 1333
TOTAL ASSETS LESS CURRENT LIABILITIES 70607 69333 67586 65909 64291 62890 61698 60590 59568 58496
LONG-TERM LIABILITIES Payables - falling due after more than one year 19861 19046 17580 16067 14507 13028 11622 10188 8703 7204
Deferred income - falling due after more than one year 37831 36267 34703 33139 31575 30011 28447 26883 25319 23755
Provisions 15 15 15 15 15 15 15 15 15 15
Net Pension Liability 826 826 826 826 826 826 826 826 826 826
Net Assets 12074 13179 14463 15862 17369 19011 20788 22679 24705 26697
Furniture Replacement Reserve 45 45 45 45 45 45 45 45 45 45 Revenue Reserve 12029 13134 14418 15817 17323 18966 20743 22634 24660 26651
Total Reserves 12074 13179 14463 15862 17369 19011 20788 22679 24705 26697
14 Buidheann Tigheadas Loch Aillse agus an Eilein Sgitheanaich Ltd. Lochalsh and Skye Housing Association STATEMENT OF FINANCIAL POSITION ------
Year 21 Year 22 Year 23 Year 24 Year 25 Year 26 Year 27 Year 28 Year 29 Year 30 Projections for 30 Years from 1 April 2020 to to to to to to to to to to 31-Mar-41 31-Mar-42 31-Mar-43 31-Mar-44 31-Mar-45 31-Mar-46 31-Mar-47 31-Mar-48 31-Mar-49 31-Mar-50 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 Fixed Assets Housing properties 54404 51833 49741 47229 45079 42793 40304 37623 34746 31875 Other fixed assets 726 681 647 667 636 613 643 616 596 764
Total Fixed Assets 55130 52514 50389 47897 45716 43406 40947 38239 35342 32639
Current assets
Debtors 233 238 243 248 253 258 263 268 273 279 Bank 5613 7799 9818 12601 15388 18747 22544 26950 31847 36678
Total Current Assets 5847 8037 10061 12848 15641 19004 22807 27218 32121 36957
Payables - falling due within one year 1610 1478 1278 1154 912 817 679 616 545 481 Deferred income -falling due within one year 1564 1564 1564 1564 1564 1564 1564 1564 1564 1564
Net Current Assets 2672 4994 7219 10130 13165 16624 20564 25038 30011 34912
TOTAL ASSETS LESS CURRENT LIABILITIES 57803 57508 57608 58027 58881 60030 61511 63277 65353 67551
LONG-TERM LIABILITIES Payables - falling due after more than one year 5848 4629 3615 2731 2094 1557 1165 841 593 415
Deferred income - falling due after more than one year 22191 20627 19063 17499 15935 14371 12807 11243 9679 8115
Provisions 15 15 15 15 15 15 15 15 15 15
Net Pension Liability 826 826 826 826 826 826 826 826 826 826
Net Assets 28923 31412 34089 36957 40011 43261 46699 50353 54241 58180
Furniture Replacement Reserve 45 45 45 45 45 45 45 45 45 45 Revenue Reserve 28878 31367 34044 36912 39966 43216 46654 50308 54196 58135
Total Reserves 28923 31412 34089 36957 40011 43261 46699 50353 54241 58180
15 Buidheann Tigheadas Loch Aillse agus an Eilein Sgitheanaich Ltd. Lochalsh and Skye Housing Association CASH FLOW
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Projections for 30 Years from 1 April 2020 to to to to to to to to to to 31-Mar-21 31-Mar-22 31-Mar-23 31-Mar-24 31-Mar-25 31-Mar-26 31-Mar-27 31-Mar-28 31-Mar-29 31-Mar-30 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 INCOME Rents 3209 3568 3840 3993 4160 4309 4438 4571 4709 4850 Other operating income 683 563 427 417 418 171 143 130 126 128 Other Organisations 300 300 300 300 300 300 300 300 300 300 HAG 6275 933 174 798 814 - - - - - Other capital grants 16 ------Private finance 4069 3778 1444 1216 1602 915 977 - 577 557 Shared Equity Sales ------Sale of assets ------Movement in debtors - - - - - (3 ) (3 ) (4 ) (4 ) (4 ) Total cash inflow 14552 9141 6185 6724 7295 5692 5855 4998 5708 5832
EXPENDITURE Operating costs (excluding depreciation) 2777 2772 2706 2653 2722 2230 2268 2306 2402 2553 Other Organisations 300 300 300 300 300 300 300 300 300 300 Finance costs 532 649 740 751 826 883 878 854 820 797 Development 10360 4711 800 1388 1380 - - - - - Capitalised Maintenance 636 369 818 626 1037 915 977 502 577 557 Other fixed assets 60 6 48 6 37 80 38 39 85 141 Loans repaid 776 894 976 1107 1169 1219 1282 1337 1388 1375 Movement in creditors 14 (19 ) (3 ) (16 ) - (4 ) (4 ) (4 ) (4 ) (4 ) Total cash outflow 15453 9683 6385 6815 7471 5623 5739 5334 5569 5719
Cash inflow/(outflow) for year (901 ) (541 ) (200 ) (90 ) (176 ) 69 116 (336 ) 139 113
Cash balance b/f 3683 2800 2274 2090 2016 1856 1939 2069 1749 1900
Cash balance at year end 2782 2258 2075 1999 1839 1925 2055 1733 1888 2013
Interest receivable 18 16 15 16 17 13 14 15 12 14
Cash balance c/f 2800 2274 2090 2016 1856 1939 2069 1749 1900 2026
F_Plan_A_2020-50_DRAFT_V2 16 20/02/2020 10:37 Buidheann Tigheadas Loch Aillse agus an Eilein Sgitheanaich Ltd. Lochalsh and Skye Housing Association CASH FLOW
Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Projections for 30 Years from 1 April 2020 to to to to to to to to to to 31-Mar-31 31-Mar-32 31-Mar-33 31-Mar-34 31-Mar-35 31-Mar-36 31-Mar-37 31-Mar-38 31-Mar-39 31-Mar-40 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 INCOME Rents 4995 5145 5299 5458 5622 5791 5965 6143 6328 6518 Other operating income 131 133 136 139 142 144 147 150 153 156 Other Organisations 300 300 300 300 300 300 300 300 300 300 HAG ------Other capital grants ------Private finance - 607 ------Shared Equity Sales Sale of assets ------Movement in debtors (4 ) (4 ) (4 ) (4 ) (4 ) (4 ) (4 ) (4 ) (4 ) (4 ) Total cash inflow 5422 6182 5732 5893 6060 6231 6408 6589 6777 6969
EXPENDITURE Operating costs (excluding depreciation) 2534 2530 2507 2549 2591 2634 2677 2721 2765 2933 Other Organisations 300 300 300 300 300 300 300 300 300 300 Finance costs 758 728 697 653 607 560 512 464 416 367 Development ------Capitalised Maintenance 587 607 903 1116 1051 862 981 1174 1120 1240 Other fixed assets 43 92 45 46 97 48 49 103 51 202 Loans repaid 1353 1376 1422 1466 1513 1560 1479 1406 1435 1485 Movement in creditors (4 ) (4 ) (4 ) (4 ) (4 ) (5 ) (5 ) (5 ) (5 ) (5 ) Total cash outflow 5571 5629 5870 6126 6154 5959 5993 6162 6082 6521
Cash inflow/(outflow) for year (149 ) 553 (139 ) (233 ) (95 ) 272 415 427 695 448
Cash balance b/f 2026 1893 2459 2340 2124 2046 2333 2765 3214 3935
Cash balance at year end 1878 2446 2321 2107 2030 2317 2748 3192 3909 4383
Interest receivable 15 14 19 18 16 15 18 22 26 33
Cash balance c/f 1893 2459 2340 2124 2046 2333 2765 3214 3935 4416
F_Plan_A_2020-50_DRAFT_V2 17 20/02/2020 10:37 Buidheann Tigheadas Loch Aillse agus an Eilein Sgitheanaich Ltd. Lochalsh and Skye Housing Association CASH FLOW
Year 21 Year 22 Year 23 Year 24 Year 25 Year 26 Year 27 Year 28 Year 29 Year 30 Projections for 30 Years from 1 April 2020 to to to to to to to to to to 31-Mar-41 31-Mar-42 31-Mar-43 31-Mar-44 31-Mar-45 31-Mar-46 31-Mar-47 31-Mar-48 31-Mar-49 31-Mar-50 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 INCOME Rents 6713 6915 7123 7336 7557 7783 8017 8258 8506 8761 Other operating income 159 163 166 169 173 176 179 183 187 190 Other Organisations 300 300 300 300 300 300 300 300 300 300 HAG ------Other capital grants ------Private finance ------Shared Equity Sales Sale of assets ------Movement in debtors (5 ) (5 ) (5 ) (5 ) (5 ) (5 ) (5 ) (5 ) (5 ) (5 ) Total cash inflow 7168 7373 7584 7801 8024 8254 8491 8736 8987 9246
EXPENDITURE Operating costs (excluding depreciation) 2902 2900 2946 2992 3039 3086 3134 3182 3230 3380 Other Organisations 300 300 300 300 300 300 300 300 300 300 Finance costs 316 265 222 181 147 117 94 77 63 52 Development ------Capitalised Maintenance 883 362 893 505 924 838 679 525 359 398 Other fixed assets 113 57 58 119 60 62 127 64 65 334 Loans repaid 1499 1356 1219 1013 885 637 536 393 324 248 Movement in creditors (5 ) (5 ) (5 ) (5 ) (5 ) (5 ) (6 ) (6 ) (6 ) (6 ) Total cash outflow 6007 5236 5633 5105 5350 5034 4864 4535 4335 4706
Cash inflow/(outflow) for year 1161 2137 1951 2696 2675 3220 3628 4201 4652 4540
Cash balance b/f 4416 5613 7799 9818 12601 15388 18747 22544 26950 31847
Cash balance at year end 5576 7750 9750 12514 15275 18608 22374 26745 31602 36387
Interest receivable 37 48 68 87 113 139 170 205 246 291
Cash balance c/f 5613 7799 9818 12601 15388 18747 22544 26950 31847 36678
F_Plan_A_2020-50_DRAFT_V2 18 20/02/2020 10:37 Buidheann Tigheadas Loch Aillse agus an Eilein Sgitheanaich Ltd. Lochalsh and Skye Housing Association
LOAN COVENANTS
The Association's ongoing development programme will result in an increase in the level of private finance. The Association is aware of the need to ensure that future financial performance will continue to meet the requirements of all the covenants required by its loans.
The table below shows a forecast how the Association expects to comply with the main financial covenants over the 30 year period. Covenants, and the way that compliance is measured, can vary between different lenders. The measurements used in the table are based on the most restrictive of those covenants.
CovenantRequirement Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Interest cover More than 110% 170% 147% 146% 164% 150% 177% 180% 191% 198% 196%
Gearing Less than 28% 20% 22% 22% 22% 22% 23% 21% 20% 19% 18%
CovenantRequirement Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20
Interest cover More than 110% 226% 252% 284% 314% 348% 393% 447% 508% 587% 643%
Gearing Less than 28% 17% 16% 14% 13% 12% 11% 9% 7% 6% 4%
CovenantRequirement Year 21 Year 22 Year 23 Year 24 Year 25 Year 26 Year 27 Year 28 Year 29 Year 30
Interest cover More than 110% 804% 1038% 1307% 1687% 2183% 2867% 3757% 4857% 6255% 7666%
Gearing Less than 28% 2% 0% -3% -5% -8% -10% -13% -17% -20% -24%
Notes:
Interest cover - compares operating surplus with loan interest payable.
Gearing - compares net loan debt with historic cost of fixed assets. Lenders' requirements vary between 28% and 50% for this covenant.
19 Buidheann Tigheadas Loch Aillse agus an Eilein Sgitheanaich Ltd. Lochalsh and Skye Housing Association SCENARIO PLANNING
Summary of Results over varying scenarios
The Association recognises that there are a range of factors which may impact on its business and financial plans. These risks are identified within the Risk Register and actions have been identified to mitigate the potential effects of these risks.
In terms of financial planning, a key strength for the Association is that almost all of its housing stock has been constructed from new within the last 25 years and the Association has been able to set aside sufficient reserves to ensure that a robust programme of reactive, cyclical and planned maintenance has been carried out timeously. This has assisted in ensuring that the Association has been able to meet all of the requirements of the Scottish Housing Quality Standard.
The Association has consistently demonstrated that its rent collection, arrears management and void management policies and procedures are extremely robust and our Peer Group Report outcomes over many years demonstrate that the Association is in the top quartile of performers. It is considered that our low-level assumptions in respect of these factors are justified based on past performance.
The key risks relate to factors outwith the direct control of the Association and relate to the future rate of inflation, interest rates and rent levels.
Financial Performance
Scenarios Accumulated reserves Cash balances Rent Loan Plan CPI Start Year 5 Year 10 Year 15 Year 20 Year 25 Year 30 Start Year 5 Year 10 Year 15 Year 20 Year 25 Year 30 Increase Rates £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000 Plan A Base assumptions from year 6 2.0% 3.0% 3.8% 5479 7389 11121 17369 26697 40011 58180 3683 1856 2026 2046 4416 15388 36678 Plan B Bank Rate + 1% 2.0% 3.0% 4.8% 5479 6508 9062 13999 22043 34509 52491 3683 1298 1028 2169 2706 11983 32256 Plan C CPI +1% 3.0% 4.0% 3.8% 5479 7565 12338 20801 33883 53116 80486 3683 2048 2365 3977 10094 27652 59559 Plan D CPI + 1% and Bank Rate +1% 3.0% 4.0% 4.8% 5479 6686 10186 17451 29652 48551 76438 3683 1492 1647 2536 7352 23909 55748 Plan E As Plan D but rent increase = CPI 3.0% 3.0% 4.8% 5479 6277 8070 11445 16396 24294 36652 3683 1083 110 886 2334 6497 21039
Loan Covenant Compliance
Interest Cover to be more than 110% Gearing to be less than 28% Scenarios (as above) Year 5 Year 10 Year 15 Year 20 Year 25 Year 30 Year 5 Year 10 Year 15 Year 20 Year 25 Year 30 Plan A Base assumptions from year 6 150% 196% 348% 643% 2183% 7666% 22% 18% 12% 4% -8% -24% Plan B Bank Rate + 1% 118% 151% 238% 396% 1132% 3287% 23% 20% 15% 7% -4% -20% Plan C CPI +1% 159% 238% 463% 992% 3756% 15426% 22% 18% 10% -1% -17% -40% Plan D CPI + 1% and Bank Rate +1% 126% 178% 333% 687% 2435% 10967% 23% 19% 12% 3% -13% -37% Plan E As Plan D but rent increase = CPI 109% 131% 183% 226% 465% 1007% 23% 21% 17% 13% 4% -9%
20 Appendix 8
BUIDHEANN TIGHEADAS LOCH AILLSE AGUS AN EILEIN SGITHEANAICH LOCHALSH AND SKYE HOUSING ASSOCIATION
Development Strategy
Service: Development Services Date Staff Member Version Number: 2 Approved by: Policy Sub-Committee 28.06.2018 N/A Effective From: 29.06.2018 N/A Next Review Date: 29.06.2023 DoI Revision Number: Revision Date: Posted on Intranet: 29.06.2018 PA Posted on Website: Publicity Material issued: Handbook(s) updated: Document Register updated: 29.06.2018 PA Previous Version archived: 29.06.2018 PA SSHC: Charter Standards and Outcomes: 4 & 13 SHR: Regulatory Framework 1.1
Scottish Social Housing Charter Relevant Standard Outcomes
STANDARD OUTCOME Section: Housing quality and maintenance
4. Quality of housing This standard describes what landlords Social Landlords manage their should be achieving in all their properties. business so that:- It covers all properties that social landlords let, unless a particular property • tenants’ homes, as a minimum, does not have to meet part of the meet the Scottish Housing standard. Quality Standards (SHQS) If, for social or technical reasons, when they are allocated; are landlords cannot meet any part of these always clean, tidy and in a good standards, they should regularly review state of repair; and also meet the situation and ensure they make the Energy Efficiency Standard improvements as soon as possible. for Social Housing (EESSH) by December 2020.
Section: Getting good value from rents and service charges
13. Value for money This standard covers the efficient and effective management of services. It Social landlords manage their includes minimising the time houses are businesses so that:- empty; managing arrears and all Tenants, owners and other customers receive services that resources effectively; controlling costs; provide continually improving getting value out of contracts; and giving value for the rent and other better value for money by increasing the charges they pay. quality of service with minimum extra cost to tenants, owners and other
customers; and involving tenants and other customers in monitoring and reviewing how landlords give value for money.
Scottish Housing Regulator Regulatory Framework
STANDARD GUIDANCE
1.1 The governing body sets the RSL's strategic direction. It agrees and oversees the organisation's strategic and financial plans to achieve its purpose and intended outcomes for its tenants and other service users.
DEVELOPMENT STRATEGY
CONTENTS
1. INTRODUCTION
2. PURPOSE OF STRATEGY
3. THE ASSOCIATION’S ROLE AS DEVELOPER
4. GOVERNANCE ARRANGEMENTS
5. IDENTIFYING HOUSING NEEDS
6. SECURING SITES
7. COMMUNITY INVOLVEMENT
8. PROCUREMENT
9. SECURING FUNDING
10. AFFORDABLE HOUSING
11. QUALITY
12. SUSTAINABILITY
13. ADDITIONAL NEEDS
14. WORKING WITH PARTNERS
15. KEY PERFORMANCE INDICATORS
16. REVIEW OF STRATEGY
• Appendix 1
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DEVELOPMENT STRATEGY
1. INTRODUCTION
1.1 This Statement sets out the Association’s Development Strategy for pursuing development activity over the period 2019 – 2024. It is based on the objectives agreed by the Association which are contained in its Business Plan 2019 – 2024. It describes how Lochalsh and Skye Housing Association will deliver the following strategic aims and objectives:
To work in partnership to provide access to high quality affordable housing solutions and related services and to contribute to the improvement of the social, economic and cultural wellbeing of the whole community. To provide access to a wide range of high quality affordable housing solutions for those in need in both the rental and home ownership sectors. To ensure that remote and rural settlements with housing needs are supported by our housing investment activities. To promote energy efficiency and to assist in the reduction of carbon emissions and the eradication of fuel poverty. To deliver high quality services and standards across the whole range of our activities. To work within a policy framework and financial environment which deliver, cost efficiency, financial viability and value for money. To ensure accountability, openness and compliance in the governance of the Association’s activities. To support all of the work of the Association by the efficient and effective use of financial, human and information resources. To provide equality of opportunity and access to all our services and activities.
2. PURPOSE OF THE STRATEGY
2.1 The Development Strategy has been prepared to take account of the Association’s Business Plan for the period 2019-2024 and in the context of the prevailing economic, political and operational environments that the Association is operating in. It is informed by the requirements of the regulatory regimes that the Association is subject to and by the relationships that the Association has with key partners including local and central government and funders. In addition to the current business plan, the other key strategies which integrate and complement each other are our:
Finance Strategy Procurement Strategy Asset Management Strategy
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Energy Efficiency Standard for Social Housing Strategy and Action Plan, and Tenant Sustainment Strategy
2.2 The Development Strategy sets out the approach that will be taken by Lochalsh and Skye Housing Association to housing and related development in the period 2019-2024. It will be applied to:
Determine the role of the Association as a developer. Determine whether or not it is appropriate for a specific initiative to be progressed. Guide the Association’s activity in respect of individual schemes. Ensure sound governance of the Association’s development activities.
Its implementation will be informed by our suite of Development Policies including our Development Risk Policy and Risk Register, and Treasury Management Policy
2.3 The Strategy also takes account of Regulatory Standard and Guidance, in particular Regulatory Standard 1.1: The governing body sets the Association’s strategic direction. It agrees and oversees the strategic and financial plans to achieve its purpose and intended outcomes for its tenants and service users and Business Planning Recommended Practice (BPRP) Section 4.1: The approach to business planning should reflect the Association’s vision, mission statement and strategic objectives. It should also allow the exploration of opportunities including business growth and innovation.
3. THE ASSOCIATION’S ROLE AS A DEVELOPER
3.1 In adopting its Business Plan for the period 2019 – 2024, the Association has positioned itself as a champion of new affordable housing supply within Lochalsh and Skye’s communities, as a direct provider and through partnership. The Association has identified its capacity to undertake new build development during the period of this Strategy, within the current funding regime promoted by the Scottish Government and will continue to test the impact of new funding opportunities with a view to increasing this contribution wherever possible.
3.2 The Association recognises that the communities in which it is active continue to experience acute shortages of good quality affordable housing. In pursuing an active development programme, the Association has determined that there is both short and medium term demand for its properties in areas that have been shown to be heavily dependent on public housing. At the same time as helping to address these housing needs, the Association is committed to ensuring the long term viability of the organisation and affordability for customers. Rents for new build developments will be determined with
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reference to the national minimum living wage and, at the same time, ensure the viability of schemes being assessed for development.
3.3 In undertaking development activity, the Association wishes to make a significant contribution to the achievement of the Scottish Government’s objectives of creating a Healthier, Wealthier and Fairer, Safer and Stronger and Greener Scotland.
3.4 The Association’s partnership with The Highland Council is central to its role as a direct contributor of new affordable housing options in Skye and Lochalsh. The Association provides Project Management, Clerk of Work and CDMA services to the Council on a scheme by scheme basis via individual agreements.
4. GOVERNANCE ARRANGEMENTS
4.1 The Association’s Board will approve the development programme and any amendments to it. The Association’s Board receives quarterly Development Reports as a minimum.
4.2 The Board will approve the proposed contribution by the Association as described in the SHIP in advance of it being adopted by The Highland Council. The Board will also agree any amendments to the proposed development programme. The Board will keep the Association’s borrowing capacity under review and will monitor development and programme activity against the agreed funding frameworks to ensure continuing viability of both individual schemes and the organisation as a whole.
4.3 The Board recognises that a substantial degree of delegation to staff is essential to ensure its smooth operation. The Association’s Standing Orders detail the delegated powers.
5. IDENTIFYING HOUSING NEEDS
5.1 We will work with the Local Authority, Community Councils, and Community Trusts and other stakeholders to identify and assess housing need in local areas. We will contribute to the Highland Development HUB meetings and the local Housing Development Forum.
5.2 We will respond to requests from local communities or landowners by assessing the area and the level of need and identify the prospects for suitable development. We will supplement the information gathered locally with information available from statutory sources, including:
Housing Need and Demand Assessment Local Development Plan Local Housing Strategy
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Strategic Housing Investment Plan (SHIP) Other relevant strategies including those relating to homelessness, supporting people, integration of health and social care, supporting people from ethnic minority groups, fuel poverty and environmental sustainability. Consultation with the local office of The Highland Council’s housing department Census Data
5.3 We will make use of the information we have from the Highland Housing Register and those held by other providers. The Association will use the information collected to prepare a five-year development programme, as part of the business planning and financial planning process. This identifies priority areas for development and assesses the level and type of need identified in these areas, the availability of suitable sites and the prospects for successful development. We will update the development programme annually.
6. SECURING SITES
6.1 The Association will work with the local authority, Highland Housing Alliance, Highland Small Communities Housing Trust and private landowners and will use our local knowledge, to identify suitable sites for development. Wherever possible, the Association will seek to acquire sites at not more than the valuation set by an independent valuer.
6.2 The Association will seek to minimise its exposure to risks associated with abortive costs by undertaking as much exploratory work as possible to identify the feasibility of the project and site before expenditure is committed, in accordance with our Development Risk Management Policy. To that end, the Association will work closely with the local planning department to ensure compliance with their requirements for specific projects and to identify any potential development problems at an early stage.
6.3 The Association will seek to acquire sites for specific projects that are included in the development plan. Where the Association becomes aware of a site that has the potential for development to meet corporate objectives, the Association may seek to landbank the site. The criteria, against which a decision to acquire a site or part of a site for landbanking will be judged, are contained in the Association’s Landbanking Policy.
6.4 The Association will seek to ensure that the sites that it acquires are assured of the provision of adequate infrastructure to support the development of the site. The Association will work with Scottish Water at the early planning stages to ensure that there is adequate capacity within local systems to enable development to proceed.
6.5 When considering the acquisition of a site, the Association will take account of its development strategy and the existing local and structure plans for the area in determining whether or not to proceed.
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7. COMMUNITY INVOLVEMENT
7.1 In developing its plans, it is important that the Association consults the local communities (settlement, village, or area of town) in which the proposed development(s) is / are located. This is particularly important where there is some sensitivity associated with a project, for example because of:
The scale of the development. Its physical characteristics (for example, its visibility, particular aspects of its design, or impact on other buildings). The inclusion of facilities other than housing, designed for wider community use. The support needs of the intended client group, where community understanding of the nature and purpose of the project is at a premium.
7.2 In all these situations, we will work through established community groups or other representative mechanisms (eg community councils and community trusts) to explain and seek views on the proposals. We will maintain a record of the views and comments received. We will be sensitive to the views expressed, and will seek where feasible to make modifications to the proposals, providing always that the integrity and overall objectives of the scheme are protected.
7.3 We will ensure through the statutory planning process that community councils and members of the public likely to be affected by our developments have the opportunity to consider our proposals make comments and raise objections.
8. PROCUREMENT
8.1 All of The Association’s development procurement activities will comply with our Procurement Strategy and Policy to ensure fairness and transparency, demonstrate probity and provide clear audit trails for decisions and actions. The Association will adopt procedures for the administration of its development activities that comply with the requirements of the Procurement Reform (Scotland) Act 2014 and the associated Regulations which were implemented in April 2016.
8.2 The Association will seek to be a good client and will adopt the most appropriate procurement method for its circumstances. All procurement opportunities relating to our development programme will be advertised via the Public Contract Scotland (PCS) Portal. The procurement routes that the Association will consider are:
Appointment of a design team for a specific project. Traditional Tender Design and Build Framework Agreement Purchases “off the shelf”
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The Association may be involved in more than one type of procurement arrangement at any one time. The factors that the Association will consider when selecting a procurement route are covered in the Association’s Procurement Policy.
8.3 The Association will ensure that all appointed contractors and consultants are able to satisfy the Association that they have the necessary skills and experience to undertake the relevant projects that they are invited to tender for or are otherwise appointed to undertake. All contractors must be able to satisfy the Association that adequate insurance cover is in place to minimise risk and The Association will always have appropriate insurance in place to mitigate risk.
8.4 The focus of our development activity will be on new build. The Association will consider purchasing completed properties from a developer or “off the shelf” existing properties where that represents good value for money, is approved by the Scottish Government and The Highland Council in terms of grant eligibility and is in accordance with our Procurement Strategy and business plan objectives. Properties acquired in this way must be of at least the same quality as those houses built by the Association. We will consider making land available to support the work of our partner organisations where we are unable to pursue viable development plans ourselves.
9. SECURING FUNDING
9.1 The Association will contribute to the development of the Strategic Housing Investment Plan (SHIP) in respect of the housing needs of the communities in the area that it exists to serve. The SHIP is prepared by The Highland Council as the key planning tool that determines housing need and planned provision across the Council’s area. The Association’s contribution to meeting identified housing need will be identified in the SHIP and the investment required from the Affordable Housing Investment Programme (AHIP) to deliver it. The AHIP is the financial allocation made by the Scottish Government to support the achievement of the Government’s target for new homes in Scotland (50,000 new homes between 2015-2020, of which 35,000 are to be affordable). The SHIP will identify individual projects and sites where possible and areas for proposed development in the longer term. The Association will seek to maximise its contribution to the local authority’s development of the SHIP. The Association will seek grant funding from the AHIP to contribute towards the capital costs of the proposed schemes in line with published guidance. The Association will ensure that the proposals set out in the SHIP are realistic and achievable in respect of the availability of staff resources and expertise.
9.2 The Association will seek to maximise grant funding available from the AHIP and other sources in order to reduce the Association’s need for private borrowing.
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9.3 The Association will borrow capital from private lenders to supplement the grant received through the AHIP and other sources. Borrowings will be in accordance with the Association’s Treasury Management Policy and will be negotiated on the best possible terms. The terms on which private funding is secured must enable swift draw down in order that the Association can meet its contractual commitments. The Association will ensure an ethical approach to borrowing that will not jeopardise our compliance with existing covenants. We will subscribe to Scottish Government backed Bond issues and will participate in new borrowing opportunities that are developed by and / for the sector, where we are satisfied that this is in the best interests of the Association and our tenants. The Association will not incur additional borrowing unless the Board is satisfied that it is financially viable to do so and that the funds negotiated will support the achievement of the Association’s business plan objectives.
10. AFFORDABLE HOUSING
10.1 The Association will provide housing for affordable rent and, where appropriate mid-market rent or Low Cost Home Ownership (LCHO) eg Shared Equity or Shared Ownership. The Association will assess the need for housing for rent and LCHO as part of the initial needs assessment.
10.2 The Association will work with developers to secure the provision of affordable housing through the implementation of SPP3, Planning Advice Note 2/2010 and the application of affordable housing policies by the local authority.
10.3 In determining affordability, the Association will take account of its Rent Setting Policy. Where the Association is involved in the development of LCHO, either alone or in partnership with others, it will seek to establish a development management scheme for the development in order to ensure that common maintenance obligations are fulfilled in the future. The Association will ensure that obligations in respect of common parts are set out clearly in a Deed of Conditions.
11. QUALITY
11.1 The Association is responsible for ensuring that our requirements are met in terms of the quality of individual developments. We aim to provide housing that meets the needs of our customers that is:
High quality in its design and construction standards Environmentally sustainable Cost effective to run and maintain Secure
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11.2 The Association will maintain, and periodically review, a Highland wide Design Brief and Technical Guidelines which will set out the standards to be met across the Association’s development programme. This brief will:
Comply with all current legislative requirements, including building standards. Comply with the standards required for Housing for Varying Needs and Lifetime Homes and aim to minimise the need for subsequent adaptations during the life of the house that would impact on the long term costs. Take into account tenants’ views Meet the planning conditions of the local authority. Seek to ensure that all houses achieve Secure By Design accreditation. Seek to ensure that, where appropriate, our houses are ‘dementia friendly’. Demonstrate our commitment to sustainability. Incorporate the expectations and aspirations of our current and future customers in respect of domestic technology, for example for broadband and digital television reception. Demonstrate our support for innovation. Take into account the cost in use to the occupier, for example through the installation of effective heating systems, adequate insulation and availability of competitive tariffs such as those via Our Power.
11.3 When we consider Design and Build schemes, our agreement with the developer will depend on the extent to which it is possible to meet or exceed the terms of our standard design brief within benchmark costs.
11.4 Where we are procuring developments by traditional tender, our Design Brief will form part of the strategic brief for each project, but may be augmented by quality standards that are specific to that project. We will use the Design Brief as the basis for the specification of the project, to be contained in the project brief.
11.5 For projects that include LCHO (and other alternative tenures) or have been procured through a design and build arrangement, the Association will require a warranty from NHBC or equivalent and Collateral Warranties.
12. SUSTAINABILITY
12.1 We will adopt the principles of sustainability as set out in the Association’s own Sustainability Policy. In all of our schemes, the Association will place significant emphasis on the use of sustainable materials and the adoption of sustainable working practices and procurement methods. In preparing the strategic brief, the requirements of our sustainability policy will be applied. Wherever possible we will use materials that are environmentally sustainable.
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We will seek to minimise transportation by sourcing materials as locally as possible. We will support local communities by working with contractors to train and employ local people and reflect this in our contractual agreements.
13. ADDITIONAL NEEDS
13.1 In addition to our general commitment to building to dementia friendly and Housing for Varying Needs standards, the Association will, wherever possible, incorporate additional features to accommodate the requirements for people with particular needs. If specific needs are identified at an early stage, the design brief will incorporate the requirements of the potential householder. We will liaise with NHS Highland’s Occupational Therapists to ensure the adaptations meet the desired needs.
13.2 Where there are likely to be revenue costs attached to the ongoing occupation of the house, the Association will enter into early discussions with NHS Highland and the local authority to ensure that the necessary funding is available.
14. WORKING WITH PARTNERS
14.1 The Association is a member of the Highland Housing Register. We will work with partners to meet the housing and support needs of the communities we serve. For example, we will seek to respond positively to initiatives for:
The development of affordable housing for the local authority or similar organisations as Development Agent The development of specifically designed accommodation to meet additional housing needs, where the local authority or other partner will contribute towards the capital funding. The development of accommodation to be leased to the local authority to meet the needs of homeless households, looked after children and other specific needs. The provision of accommodation for students and key workers, in partnership with a local employer or educational establishment. The development of hostel accommodation for Police Scotland, NHS Highland or similar organisations as Development Agent.
15. KEY PERFORMANCE INDICATORS
15.1 Development Key Performance Indicators (KPIs) are identified in the Appendix 1 of the Development Strategy.
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15.2 The reporting of the Development KPIs will be on a quarterly basis to the Association’s Audit, Finance and Performance Sub Committee and will also be copied to the Management Committee.
16. REVIEW OF STRATEGY
16.1 This document will be reviewed by the Management Committee or Sub- Committee set up for that purpose in accordance with the requirements of the Association’s Register of Policies and Procedures.
______
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Appendix 1
Development Key Performance Indicators
Key Performance Area Measure
Number of accidents on site None
97% of suppliers successfully completing contract. Contract compliance No contracts terminated due to poor performance.
Time to reach Final Account Within 6 months of contract end
Meet EESSH All properties have EPC pass
Tenant satisfaction – new home Over 90% satisfaction Tenant satisfaction – estate Over 90% satisfaction Contractor satisfaction with LSHA Over 90% satisfaction Consultant satisfaction with LSHA Over 90% satisfaction
Number of contractors in None liquidation/receivership
Page 1 BUIDHEANN TIGHEADAS LOCH AILLSE AGUS AN EILEIN SGITHEANAICH Appendix 9 LOCHALSH AND SKYE HOUSING ASSOCIATION
ASSET MANAGEMENT
STRATEGY
Property Services Service: Date Staff Member
Version Number: 4 Approved by: Management Committee 27/01/2020 N/A Effective From: 28/01/2020 N/A Next Review Date: 01/2021 DoI Revision Number: Revision Date: Annually DoI Posted on Intranet: 30/01/2020 PA Posted on Website: N/A N/A Publicity Material issued: N/A N/A Handbook(s) updated: N/A N/A Document Register updated: 30/01/2020 PA Previous Version archived: 30/01/2020 PA SSHC: Charter Standards and Outcomes: 2, 3, 4, 5, 6 & 13 SHR: Standards of Governance and Financial 1.1 / 2.3 / 3.1 / 4.1 Management
Scottish Social Housing Charter Relevant Standards and Outcomes
STANDARD OUTCOME Section: The customer/landlord This outcome covers all aspects of relationship landlords’ communication with tenants and other customers. This could include 2 Communication making use of new technologies such as Social landlords manage their web-based tenancy management systems businesses so that:- and smart-phone applications. It is not just • Tenants and other customers find it about how clearly and effectively a landlord easy to communicate with their gives information to those who want it. It landlord and get the information also covers making it easy for tenants and they need about their landlord, how other customers to make complaints and and why it makes decisions and the provide feedback on services, using that services it provides. information to improve services and performance, and letting people know what they have done in response to complaints and feedback. It does not require landlords to provide legally protected, personal or commercial information. Section: The customer/landlord This outcome describes what landlords relationship should achieve by meeting their statutory duties on tenant participation. It covers 3. Participation how social landlords gather and take Social Landlords manage their account of the views and priorities of their business so that:- tenants, other customers, and bodies • Tenants and other customers find it representing them such as registered easy to participate in and influence tenant organisations; how they shape their their landlord’s decisions at a level services to reflect these views; and how they feel comfortable with. they help tenants, other customers and bodies representing them such as registered tenant organisation to become more capable of involvement – this could include supporting them to scrutinise landlord services. Section: Housing quality and This standard describes what landlords maintenance should be achieving in all their properties. It covers all properties that social landlords 4 Quality of housing let, unless a particular property does not Social landlords manage their have to meet part of the standard. businesses so that:- If, for social or technical reasons, landlords • Tenants’ homes, as a minimum, cannot meet any part of these standards, meet the Scottish Housing Quality they should regularly review the situation Standard (SHQS) when they are and ensure they make improvements as allocated; are always clean, tidy and soon as possible. in a good state of repair; and also
meet the Energy Efficiency Standard for Social Housing (EESSH) by December 2020. 5 Repairs, maintenance and This outcome describes how landlords improvements should meet their statutory duties on Social landlords manage their repairs and provide repairs, maintenance businesses so that:- and improvement services that safeguard • Tenants’ homes are well the value of their assets and take account maintained, with repairs and of the wishes and preference of their improvements carried out when tenants. This could include setting repair required, and tenants are given priorities and timescales; setting repair reasonable choices about when standards such as getting repairs done work is done. right, on time, first time; and assessing tenant satisfaction with the quality of the services they receive. Section: Neighbourhood and This outcome covers a range of actions Community that Social Landlords can take on their own and in partnership with others. It covers 6 Estate Management, anti-social action to enforce tenancy conditions on behaviour, neighbour nuisance and estate management and neighbour tenancy disputes nuisance, to resolve neighbour disputes, Social landlords, working in and to arrange or provide tenancy support partnership with other agencies, help where this is needed. It also covers the to ensure that:- role of landlords in working with others to • Tenants and other customers live in tackle anti-social behaviour. well-maintained neighbourhoods where they feel safe. Section: Getting good value from rents This standard covers the efficient and and service charges effective management of services. It includes minimising the time houses are 13 Value for money empty; managing arrears and all Social landlords manage all aspects of resources effectively; controlling costs; their businesses so that:- getting value out of contracts; giving better • Tenants, owners and other value for money by increasing the quality customers receive services that of services with minimum extra costs to provide continually improving value tenants, owners and other customers; and for the rent and other charges they involving tenants and other customers in pay. monitoring and reviewing how landlords give value for money.
Scottish Housing Regulator Regulatory Framework
STANDARD GUIDANCE
1 The governing body leads and 1.1 The governing body sets the RSL's directs the RSL to achieve good strategic direction. It agrees and outcomes for its tenants and other oversees the organisation's service users. business plan to achieve its purpose and intended outcomes for its tenants and other service users.
2 The RSL is open about and 2.3 The governing body is open and accountable for what it does. It transparent about what it does, understands and takes account of publishes information about its the needs and priorities of its activities and, wherever possible, tenants, service users and agrees to requests for information stakeholders. And its primary focus about the work of the governing is the sustainable achievement of body and the RSL. these priorities.
3 The RSL manages its resources to 3.1 The RSL has effective financial and ensure its financial well-being, while treasury management controls and maintaining rents at a level that procedures, to achieve the right tenants can afford to pay. balance between costs and outcomes. The RSL ensures security of assets, the proper use of public and private funds, and access to sufficient liquidity at all times.
4 The governing body bases its 4.1 The governing body ensures it decisions on good quality receives good quality information information and advice and and advice from staff and, where identifies and mitigates risks to the necessary, expert independent organisation’s purpose. advisers, that is timely and appropriate to its strategic role and decisions. The governing body is able to evidence any of its decisions.
ASSET MANAGEMENT STRATEGY
CONTENTS
1. INTRODUCTION
2. A WHOLE ORGANISATION APPROACH
3. UNDERSTANDING CUSTOMERS
4. RISK BASED AND PROPORTIONATE
5. GOOD INFORMATION
6. JOINED UP PLANNING
7. LOOKING AFTER CORE STOCK
8. COMPLIANCE WITH STANDARDS
9. DEALING WITH “CAUSE FOR CONCERN” STOCK
10. NEW DEVELOPMENT WITH A PURPOSE
11. VALUE FOR MONEY
12. REVIEW
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ASSET MANAGEMENT STRATEGY
1. INTRODUCTION
1.1 Asset Management is a systematic process of operating, maintaining, upgrading and disposing of assets cost effectively.
In Lochalsh and Skye Housing Association’s case, our assets comprise:
• Property – the land, housing stock and commercial buildings which we own to support our main business i.e. to provide access to high quality affordable housing solutions and related services and to contribute to the improvement of the social, economic and cultural wellbeing of the whole community as set out as the Association’s main aim in its Business Plan.
• Staff – the skilled staff resource that is in place to ensure that our physical assets are effectively managed and the required services are offered to customers.
• Other assets – the assets such as our IT systems, stock information and databases, office equipment and vehicles.
• Financial strength – the finance that underpins the Association to ensure that we achieve our strategic objectives set out in our Business Plan and our Financial Plan.
1.2 The Association’s Asset Management Strategy is strongly linked to the Business Plan and the Financial Plan and complements the suite of other Development and Property Services Policies and the Business Continuity and Disaster Recovery Plan. The Strategy has had input from other Services within the Association including Technical, Energy Advice, Housing, Finance and Corporate Services.
1.3 The Scottish Housing Regulator sets out ten strands of Strategic Asset Management in its Recommended Practice published in August 2012. These ten strands have been used as a helpful guide to formulate the Association’s Asset Management Strategy. This was recognised by the Scottish Housing Regulator during his Regulatory visit in September 2018.
2. A WHOLE ORGANISATIONAL APPROACH
2.1 Staffing
We will regularly review our staff structure to ensure that it is resourced to meet our strategic objectives as set out in our Business and Internal Management
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Plan. On vacancies arising, we will consider the need to fill the position and the job requirements and person specification to ensure we evolve to meet the changing demands and expectations of the Services we provide.
We will aim to ensure that knowledge and skills are shared and recorded by holding monthly Management Team Meetings and regular Services meetings.
All front line staff have received training on our “Spot and Refer” system within our Property Portfolio database to ensure that all appropriate staff within the Association can send and receive information which can contribute to improving service delivery to our tenants and customers.
2.2 Policies, Procedures and Targets
We will regularly review our Strategies, Policies and Procedures to ensure that we maintain and upgrade our property assets cost effectively. Particular Policies and Procedures linked to our Asset Management Strategy are:
• Procurement Strategy • Development Strategy and Policies • Estate Management Policy • Factoring Policy • Repairs and Maintenance Policy • Void Management Policy
We will regularly review our Performance Targets and assess actual or outturn against targets on a quarterly basis.
2.3 Management Committee
We will ensure that senior managers regularly update Plans, Strategies, Policies and Procedures within the set review dates and provide easy to understand Reports with changes highlighted, to the Association’s Management Committee for consideration and approval.
3. UNDERSTANDING CUSTOMERS
3.1 The geographical, social, economic, cultural and political environment within which the Association operates is fundamental to the formation of our aims and objectives as set out in our Business Plan.
3.2 Our Business Plan also provides details of our geographical uniqueness, demographic changes in terms of historic, current and future population change, age profiling and housing demand. We also set out Skye & Lochalsh’s economic conditions and our infrastructure challenges due to our remote rural location.
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3.3 In particular we detail the findings from our Local Housing System Analyses to ensure we understand the way in which our housing market works and what factors can cause change.
3.4 We completed our first comprehensive property survey in 2010, and undertook a new comprehensive survey of all our properties in 2014/15. This survey asked six questions to ensure good information is gathered from our tenants on what is liked and disliked about their home. Copies of the Survey Forms used are attached as Appendices 1 and 2.
We are currently engaged in a further and new Energy Advice Affordable Warmth Stock Survey which aims to revisit 200 homes a year for three years ending in 2019/2020. These surveys are designed to not only ensure that the Association meets the Energy Efficiency Standard for Social Housing (EESSH) by 31 December 2020, but also aid future Asset Management planning to deliver Affordable Warmth to all of our tenants. This Survey Form is attached as Appendix 3.
In addition to the Stock Surveys, we have introduced Estate Management Survey/Inspection Forms. Estate Management Surveys are performed on a quarterly basis by Property Services. This Survey/Inspection Form is attached as Appendix 4. Our Estates Supervisor and Estates Assistant have responsibility for ensuring our Estate is regularly maintained and will report to the Technical Manager on a weekly basis on any aspects requiring attention. This Form is currently under review to change from a paper to electronic format which would automatically update our database and reduce manual duplication.
Weekly Playparks inspections take place to ensure all equipment and surfaces are safe and maintained for toddlers and youths to enjoy. This Inspection Form is attached as Appendix 5.
All information from these surveys has been gathered electronically and directly input to our Property Portfolio database to provide critical information for future Asset Management Planning.
4. RISK BASED AND PROPORTIONATE
4.1 The activities undertaken by the Association are varied and often complex and our Risk Management Policy has been developed to describe how the Association will assess and manage the issues associated with its activities.
4.2 In considering its approach to risk management, the Association has been mindful of the need to balance a prudent approach to the risks associated with its business with the need to ensure an innovative and creative approach to
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opportunities and challenges. The Association regards effective risk management as an essential component of its Asset Management Strategy and crucial to maintaining its position as a successful and highly regarded Housing Association.
4.3 The Association’s Risk Register is reviewed as part of the Business Planning process annually and is further reviewed on a quarterly basis to ensure that it is current and up-to-date.
4.4 The Association also recognises that its Plans must be flexible enough to allow changes which may largely be outwith the control of the Association. The Risk Register identifies a range of “actions” to be considered in the event that anticipated risks materialise. In addition, the Association’s Financial Plan has a range of scenarios included as appendices which give consideration to the key financial factors or risks that may arise and measures the sensitivity of the Financial Plan in being able to mitigate these risks.
4.5 The Association has developed a Procurement Strategy and Improvement Plan as part of the Scotland Excel pilot involving Registered Social landlords. The Association engaged in a Procurement and Commercial Improvement Programme (PCIP) for Housing Associations under the guidance of Scotland Excel. The aim of the Procurement Strategy is to ensure that it procures supplies, services and works that represent value for money for our customers and the Association itself.
5. GOOD INFORMATION
5.1 The Association has good information on its housing stock but aims to strive continuously to improve and upgrade information on all its stock. In April 2005, the Association prepared its first Scottish Housing Quality Standard (SHQS) Plan with assistance from external consultants, The John Martin Partnership. A further SHQS Improvement Plan was submitted and found acceptable by Communities Scotland in April 2007. Ongoing annual reports to the Scottish Government, as part of the Annual Performance and Statistical Returns to the Scottish Housing Regulator, have also been acceptable. The Annual Return of the Charter (ARC) provides the Scottish Housing Regulator with the Association’s latest position on SHQS from 2013/14 onwards.
5.2 The Association carried out a full Housing Stock Condition Survey in 2010 detailing SHQS and in-house requirements to ensure good quality management information on stock condition was input to the Property Portfolio Database to inform future Planned and Cyclical Maintenance Programmes. In 2012/2013 the Association met the SHQS with the exception of properties which are exempt on the grounds that tenants refuse to have the necessary work carried out at the time. There is one property which will be upgraded at the first change of tenancy by removing the existing coal fire and replacing it with a heat pump. The
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household has been asked annually if they wish to accept the change but refused to do so to date.
5.3 A further Housing Stock Condition Survey of all stock commenced in October 2013 and completed in financial year 2014/2015. This survey was performed by two teams each comprising a member of Property Services and Energy Advice Services to capture information required by the ARC and the proposed Energy Efficiency Standard for Social Housing (EESSH). Additional Property and Energy Advice Services data over and above EESSH requirements was collected, for example, measuring affordability and warmth so that consideration can be made as to what additional measures the Association can take.
5.4 All survey data electronically collected has been imported to the Property Portfolio where it is linked with all other relevant details held on the Association’s housing stock. Reports can be created to interrogate the data gathered from the surveys, for example, the quality of insulation in a property; any tenant alterations; the number of properties with downstairs bedrooms; the properties with heat pumps and which type; and properties where kitchens are due for replacement within the next 12 months.
5.5 The Association now holds the most comprehensive data that the Association has ever had in the Property Portfolio database. This data will be linked to our Kypera software and we have developed an in-house Planned Maintenance database which calculates and details our future 30 year Asset Management Programme.
5.6 Our Asset Management Programmes, past, present and future, are reflected in stock valuations prepared by independent consultant Chartered Surveyors as asset cover required by lenders providing private finance for the Association’s new build development programme. Compliance with our Asset Management Strategy will result in positive stock valuations and secure future private financial investment in the Association’s housing development programme.
6. JOINED UP PLANNING
6.1 The Association reviews its Asset Management Assumptions (Appendix 6) and its Improvement Standards (Appendix 7) annually and these are incorporated within the annual review of the 30 year Asset Management Programme. Year one of the 30 year Programme is the Association’s budget for the following year once approved by the Management Committee.
6.2 The Asset Management Programme is subdivided into four main categories; Planned Maintenance, Cyclical Maintenance, Repairs and Service Charges. This programme is incorporated into the Association’s 30 Year Financial Plan which is approved annually.
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6.3 The Financial Plan assumptions, which include the Asset Management assumptions, are reviewed annually and performance reported to the Management Committee every three months in the form of the Quarterly Management Accounts.
These Accounts detail
• Income and Expenditure Account • Balance Sheet • Cashflow • Budget Performance and Projections
6.4 The Association’s current Asset Management Programme compares the agreed annual budget against actual spend to date and projected spend for the financial year highlighting any surplus or deficit. This detailed programme is reported to the Management Committee on a quarterly basis.
6.5 Our annual review of the Asset Management Strategy and Programme, Financial Plan, Business Plan and Internal Audit Plan, all articulate how the Association will deliver its aims and objectives taking into account known and estimated internal and external influences and changes.
7. LOOKING AFTER CORE STOCK
7.1 The 30 year Asset Management Programme is the key management tool used by the Association to ensure that the core stock is looked after as economically as possible. There are several Property Services Policies which underpin and support our Asset Management Strategy which are briefly outlined within this section.
7.2 The Repairs and Maintenance Policy describes how the Association will prolong the useful life of its housing stock, provide a comfortable environment for the tenant, maximise expenditure on planned maintenance, (thereby reducing expenditure on day-to-day repairs) to maintain our housing stock to the highest standards possible and ensure that adequate funding is available to achieve this. The repairs and maintenance service provided by the Association must be responsive, efficient and cost effective.
7.3 The Association recognises that an effective Estate Management Policy is a vital part of its role as a landlord and that the delivery of Estate Management, often in conjunction with other agencies, will assist greatly in promoting and sustaining safe, secure and desirable communities. Estate Management is defined as property and environmental management and services designed to give tenants and residents quiet enjoyment of their homes in a safe, secure and decent environment. This goes beyond the physical care, repair and improvement of the
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built environment. It also includes the provision of good, clear advice and information to tenants and residents, effective liaison with tenants and residents and ensuring that our estates provide a safe environment for all those who may visit, use or enter Association land or property.
7.4 The Void Management Policy describes how the Association deals with re-let and vacant properties to ensure that rental loss is minimised and the most effective use is made of the housing stock to meet housing need. The policy sets out the Association’s lettable standard and void properties contractor specification.
7.5 The Factoring Policy and Statement of Factoring Service sets out the Association’s regulatory and legislative requirements as a Factor registered under the Property Factors (Scotland) Act 2011. As such, the Association is bound by the terms of the statutory Code of Conduct for Property Factors to ensure repairs to external and internal common parts of blocks or estates are funded and maintained to a high standard.
7.6 The Association operates an Energy Advice Service which is available to all property occupiers within Skye and Lochalsh. The Energy Advice Service provides a holistic five component energy advice survey (investigating the heat retention (insulation) of a building; uncontrolled ventilation (draughts); efficiency and usability of a heating system; lifestyle of occupants; and tariff selection of occupants and an innovative use of thermal imaging and temperature, humidity and energy monitoring. These techniques are incorporated within our Stock Condition Surveys to help the Association plan and fund future stock improvements which can be included in the Asset Management Programme to make our properties as affordable as possible to heat for our tenants.
8. COMPLIANCE WITH STANDARDS
8.1 The Association operates a regularly updated Property Portfolio Database which holds information on the following categories:
• Scheme Details • Property: Rented, Shared Equity, Mid Market, Managed and Communal Areas • Spot and Refer – An information sharing tool for all services
8.2 Within the individual property details, information is stored on all cyclical testing and maintenance programmes to ensure that the Association complies with all legal requirements and Codes of Good Practice.
8.3 The 2014/15 Surveys of our stock electronically captured imported data for Property Services and Energy Advice Services. The database can be interrogated to produce reports on a range of subjects including for example:
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• How many properties have gas appliances, when tested and when the Certificate expires • Type of heating system – eg electric, heat pump or Biomass • When legionella or water tank tests take place • When chimneys were last cleaned • What properties have asbestos materials • Which external consultant conducted the asbestos survey.
8.4 The Fire Safety Working Group meet on a monthly basis to ensure that our stock will meet the new Standard for Fire Safety which comes in to force from February 2019. Landlords (and homeowners) will then have 2 years (until February 2021) to meet the new standard, compliance of which will be monitored by returns to the Scottish Housing Regulator.
8.5 The new Standard will require that every home has:-
• One smoke alarm installed in the room most frequently used for general daytime living purposes; • One smoke alarm in every circulation space on each storey, such as hallways and landings; • One heat alarm installed in every kitchen; • All smoke and heat alarms to be ceiling mounted; and • All smoke and heat alarms to be interlinked.
8.6 These new standards will bring all existing homes up to the standard for fire and smoke alarms required in new build homes.
8.7 The Association already holds information on its stock regarding the items listed at 8.5 above. A new database in being devised to ensure we have accurate information centrally collected and costed on all potential fire risk items over and above that set out in the new Standard to ensure we at least meet the February 2021 deadline and ensure the safety and wellbeing of our tenants.
9. DEALING WITH “CAUSE FOR CONCERN” STOCK
9.1 All of the Association housing stock meets the Scottish Housing Quality Standard (SHQS) which was achieved in 2012/13. This has been reflected in the 2018/19 Business Plan as well as in the Annual Return on the Charter to the Scottish Housing Regulator. There is a property which does not meet the requirements but it is exempt on the grounds that the tenants have refused to accept the necessary work to upgrade them (removal of coal fire) and it will be addressed at the first change of tenancy.
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9.2 On 22 October 2013, TIAA Ltd, Internal Auditors, reviewed the Association’s compliance with SHQS and reported “Substantial Assurance” on their findings.
9.3 The Association wishes to exceed the current SHQS and the Energy Efficiency Standard for Social Housing (EESSH), following the Stock Condition Survey by in-house Property Services and Energy Advice Services staff and the ongoing Affordable Warmth Stock Survey. We wish to improve our current property database by measuring “affordability” and “warmth” levels and to identify additional measures the Association can take to achieve these. We will establish a fully costed and funded Planned Maintenance Programme of Works for proposed upgrades and improvements to deal with what the Association considers to be “cause for concern” stock identified from our surveys.
10. NEW DEVELOPMENT
10.1 The Association intends to contribute to meeting the requirements of the Strategic Housing Investment Plan for the Highlands which will include projects for rent, low cost home ownership and private sale. It is intended to provide an additional 100 units over the next five years by implementing the housing development programme agreed with the Highland Council and the Scottish Government to meet the high demand for affordable housing within Skye & Lochalsh.
10.2 The new build development programme will be funded by a combination of Scottish Government grant funding and private finance as identified within the Financial Plan.
10.3 A properly funded and implemented Asset Management Strategy and Programme will ensure existing stock retains value which is reflected in the valuations required for raising future private finance to fund new build developments.
11. VALUE FOR MONEY
11.1 The Association employs its own Technical Services team comprising joiners, plumbers and technicians and an electrician and estate management staff to carry out elements of the Asset Management Programme; including:-
• Planned Maintenance: Windows, external doors and kitchens • Cyclical Maintenance: Painting, communal cleaning, estate management and electrical inspections • Repairs: Reactive – repairs and change of tenancies
11.2 Fully costed reports detailing the savings and improved control over the work that could be achieved have been approved by the Management Committee to demonstrate that the Association could reduce costs by carrying out the works
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identified in-house. Satisfaction Surveys undertaken on completed works have provided evidence of an increase in tenant satisfaction.
11.3 All Planned and Cyclical Works are inspected by the Property Services Team and a target 10% of Reactive Repairs are pre and post inspected. The Highland Council have engaged our Clerks of Works Services and our Technical Services following successful competitive tendering submissions which provides valuable additional fee income to support our Asset Management activities.
11.4 The Asset Management Programme performance is reported to the Management Committee on a three monthly basis and delegated powers of authorised spending for designated staff are set out in our Standing Orders.
12. REVIEW
12.1 The Asset Management Strategy will be reviewed annually in tandem with the review of the Business Plan and Financial Plan by Senior Managers and the Association’s Management Accountant, prior to consideration and approval by The Management Committee.
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Buidheann Tigheadas Loch Aillse agus an Eilein Sgitheanaich Lochalsh Skye Housing Association ANNUAL RETURN ON THE CHARTER ‐ PEER GROUP REPORT 2018/2019 Appendix 10
Average Total Number weekly rent 2 Apt ‐ Average 3 Apt ‐ Average 4 Apt ‐ Average 5+ Apt ‐ Average Landlord Name of Homes increase weekly rent weekly rent weekly rent weekly rent % Scotland average Not available Not available £76.10 £77.70 £84.44 £93.49
Albyn Housing Society Ltd 3056 3.1% £74.94 £83.78 £91.81 £102.96 Lochalsh & Skye Housing Association 675 3.4% £70.82 £76.97 £84.91 £90.14 Clydesdale Housing Association Ltd 738 3.2% £74.27 £79.48 £87.02 £103.05 Dunbritton Housing Association Ltd 828 3.0% £75.00 £80.64 £86.69 £93.19 East Lothian Housing Association Ltd 1305 4.2% £82.85 £93.31 £102.72 £114.25 Eildon Housing Association Ltd 2362 3.3% £76.37 £88.99 £95.55 £104.12 Forth Housing Association Ltd 828 2.4% £71.36 £79.69 £87.09 £92.93 Fyne Homes 1560 3.3% £76.46 £88.68 £100.89 £114.13 Hjaltland Housing Association Ltd 720 3.4% £85.67 £90.87 £94.99 £106.86 Homes for Life Housing Partnership 274 3.0% £76.77 £87.44 £93.24 ‐ Lochaber Housing Association Ltd 671 3.5% £76.89 £86.47 £94.46 £101.46 Loreburn Housing Association Ltd 2275 2.5% £80.84 £87.08 £94.15 £103.74 Orkney Housing Association Ltd 796 4.5% £77.49 £82.42 £91.29 £99.28 * Osprey Housing Ltd 1027 2.1% £89.70 £97.23 £114.96 £127.63 ** Osprey Housing Moray 512 2.1% £72.00 £86.39 £94.06 £105.75 Pentland Housing Association Ltd 484 4.0% £60.54 £69.92 £88.32 £100.92 Rural Stirling Housing Association Ltd 596 3.8% £72.49 £81.97 £89.15 £95.18 West Highland Housing Association Ltd 785 3.6% £79.26 £91.92 £100.63 £118.84
The Highland Council 14,072 3.0% £67.66 £73.98 £82.60 £110.18
* formerly Aberdeenshire Housing Partnership ** formerly The Moray Housing Partnership Ltd Buidheann Tigheadas Loch Aillse agus an Eilein Sgitheanaich Lochalsh Skye Housing Association ANNUAL RETURN ON THE CHARTER ‐ PEER GROUP REPORT 2018/2019
% of tenants who have had repairs or maintenance % of homes Hours to Days to carried out in the last 12 meeting the complete complete non‐ % of non‐emergency % of repairs months who were satisfied Scottish Housing emergency emergency repairs completed appointments with the repairs and Landlord Name Quality Standard repairs repair right first time kept maintenance service % Hours Days % % Scotland average 94.1 3.6 6.6 92.5 95.6 91.7
Albyn Housing Society Ltd 88.5% 3.6 5.3 91.1% N/A 87.8% Lochalsh & Skye Housing Association 99.1% 2.7 3.9 97.1% 100.0% 93.5% Clydesdale Housing Association Ltd 84.1% 2.5 4.5 91.0% N/A 95.2% Dunbritton Housing Association Ltd 95.7% 3.0 5.5 93.9% N/A 89.7% East Lothian Housing Association Ltd 96.9% 1.0 6.4 94.8% 93.9% 91.7% Eildon Housing Association Ltd 95.0% 1.3 5.5 88.0% 89.6% 90.3% Forth Housing Association Ltd 99.2% 2.0 3.9 98.8% N/A 98.5% Fyne Homes 93.8% 2.2 6.1 86.1% N/A 84.7% Hjaltland Housing Association Ltd 100.0% 1.2 6.0 90.0% N/A 89.2% Homes for Life Housing Partnership 98.3% 2.1 7.1 84.9% 85.1% 84.8% Lochaber Housing Association Ltd 97.6% 5.1 7.2 92.1% N/A 100.0% Loreburn Housing Association Ltd 90.7% 2.6 5.7 96.8% 99.5% 99.0% Orkney Housing Association Ltd 100.0% 2.1 8.5 95.5% N/A 97.9% * Osprey Housing Ltd 99.9% 2.3 8.6 95.1% N/A 90.7% ** Osprey Housing Moray 100.0% 2.1 7.4 92.8% N/A 95.2% Pentland Housing Association Ltd 74.7% 0.8 6.3 98.9% N/A 88.1% Rural Stirling Housing Association Ltd 98.7% 2.5 5.7 88.5% N/A 95.5% West Highland Housing Association Ltd 95.7% 5.2 6.6 85.4% 85.0% 95.8%
The Highland Council 95.5% 5.8 7.2 93.9% 93.9% 90.2% * formerly Aberdeenshire Housing Partnership ** formerly The Moray Housing Partnership Ltd Buidheann Tigheadas Loch Aillse agus an Eilein Sgitheanaich Lochalsh Skye Housing Association ANNUAL RETURN ON THE CHARTER ‐ PEER GROUP REPORT 2018/2019
Cases of anti‐social % of anti‐social % of rent due behaviour, per 100 behaviour cases not collected homes, reported in resolved within % of rent due to homes Average days to Landlord Name last year target collected being empty let house % Days Scotland average Not available 87.9 99.1 0.9 31.9
Albyn Housing Society Ltd 1.8 41.1% 100.5% 0.5% 9.5 Lochalsh & Skye Housing Association 2.1 64.3% 99.0% 0.1% 8.0 Clydesdale Housing Association Ltd 9.1 91.0% 100.4% 0.6% 25.7 Dunbritton Housing Association Ltd 5.7 100.0% 102.6% 0.1% 5.7 East Lothian Housing Association Ltd 11.1 79.3% 100.2% 0.3% 24.0 Eildon Housing Association Ltd 3.2 66.7% 98.1% 1.2% 33.9 Forth Housing Association Ltd 8.8 97.3% 101.4% 0.1% 4.2 Fyne Homes 8.3 98.5% 97.2% 1.2% 33.9 Hjaltland Housing Association Ltd 12.4 92.1% 98.5% 0.2% 3.7 Homes for Life Housing Partnership 13.5 94.6% 98.3% 0.1% 12.5 Lochaber Housing Association Ltd 3.1 100.0% 99.6% 0.1% 4.5 Loreburn Housing Association Ltd 3.5 96.2% 99.6% 0.5% 16.4 Orkney Housing Association Ltd 20.0 91.8% 100.6% 0.3% 9.9 * Osprey Housing Ltd 3.4 97.1% 99.2% 0.4% 14.3 ** Osprey Housing Moray 5.5 96.4% 98.9% 0.5% 17.8 Pentland Housing Association Ltd 1.0 100.0% 98.5% 0.6% 23.2 Rural Stirling Housing Association Ltd 11.1 89.4% 99.7% 0.3% 13.0 West Highland Housing Association Ltd 1.0 100.0% 99.7% 0.4% 13.6
The Highland Council 5 82.8% 99.0% 0.8% 36.8
* formerly Aberdeenshire Housing Partnership ** formerly The Moray Housing Partnership Ltd PERFORMANCE TARGETS 2020 - 2025 Appendix 11
TARGET OUTCOME TARGET 1. CORPORATE SERVICES 2019/2020 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 1.1 . Average % of Members present at Management Committee Meetings >70% >70% >70% >70% >70% >70% 1.2. % of Management Committee Meetings quorate 100% 100% 100% 100% 100% 100% 1.3. Total No. of Staff 1.4. % days lost through Staff sickness <1.5% <1.5% <1.5% <1.5% <1.5% <1.5% 1.4a.% days lost through Staff sickness (less than one month) ?? ?? ?? ?? ?? ?? 1.5. Average time to respond to incoming phone calls <5 secs <5 secs <5 secs <5 secs <5 secs <5 secs 2. HOUSING SERVICES 2019/2020 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 2.1. No. of Self Contained Affordable Rent Units 699 704 773 803 829 851 2.2. No. of Self Contained Mid-Market Rent Units 5 5 5 5 5 5 2.3. No. of Non-Self Contained Affordable Rent Units 4 5 5 5 5 5 2.4. No. of Shared Ownership Units 19 19 18 17 16 15 2.5. Total No. of New Lets 29 2.5a Total No. of New Lets 2.6. Average Time to Let New Properties in calendar days 0 days 0 days 0 days 0 days 0 days 0 days 2.7. Total No. of Properties Re-Let 2.8. Total No. of calendar days Properties were empty 2.9. Average time to Re-let Properties <10 days <10 days <10 days <10 days <10 days <10 days 2.10. No. of days taken to point completed Housing Applications <10 days <10 days <10 days <10 days <10 days <10 days 2.11. Total No. of Court Actions initiated 2.12. No. of properties recovered for Non Payment of Rent 2.13. No. of properties recovered for Anti Social Behaviour 2.14. No. of properties recovered for other reasons 2.15. The percentage of lets to homeless people 2.16. The percentage of tenancy offers refused during the year 3. PROPERTY SERVICES 2019/2020 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 3.1. Total Emergency Repairs completed 3.2. Total Hours taken to complete Emergency Repairs 3.3. Average Time to complete Emergency Repairs <7 hours <7 hours <7 hours <7 hours <7 hours <7 hours 3.4. Total Non Emergency Repairs completed 3.5. Total Working Days to complete Non Emergency Repairs 3.6. Average Time to complete Non Emergency Repairs <5 days <5 days <5 days <5 days <5 days <5 days 3.7. No. of Reactive Repairs completed Right First Time 3.8. Total No. of Reactive Repairs completed 3.9. % of Reactive Repairs completed Right First Time >95% >95% >95% >95% >95% >95% 3.13. % of tenants who have had repairs and maintenance carried out in the last 12 months satisfied with the service >90% >90% >90% >90% >90% >90% PERFORMANCE TARGETS 2020 - 2025 Appendix 11
TARGET OUTCOME TARGET 4. DEVELOPMENT SERVICES 2019/2020 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 4.1. Units Completed/Purchased 29 29 69 30 26 22 4.2. Care & Repair Grants - Spend £300,000 £300,000 £300,000 £300,000 £300,000 £300,000 4.3. Care & Repair - Average time to First Visit from date of Request <10 days <10 days <10 days <10 days <10 days <10 days 4.4. Medical Adaptations - Spend £65,000 £65,000 £66,000 £68,000 £69,000 £70,000 5. HANDYPERSON SERVICES 2019/2020 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 5.1. Extreme Telecare Only - Category A* - within 24 hours 100% 100% 100% 100% 100% 100% 5.2 Very Urgent - Category A - % of tasks completed within 2 days 100% 100% 100% 100% 100% 100% 5.3. Urgent – Category B - % of tasks completed within 5 days >95% >95% >95% >95% >95% >95% 5.4. High Priority – Category C - % of tasks completed within 10 days >95% >95% >95% >95% >95% >95% 5.5. Medium Priority – Category D - of tasks completed within 20 days >95% >95% >95% >95% >95% >95% 5.6. Low Priority – Category E - % of tasks completed within 25 days >90% >90% >90% >90% >90% >90% 5.7. Specialist Tasks – Category F - No. timescale applicable N/A N/A N/A N/A N/A N/A 6. FINANCE SERVICES 2019/2020 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 6.1. Operating Surplus/Deficit Surplus Surplus Surplus Surplus Surplus Surplus 6.2. Net Surplus/Deficit Surplus Surplus Surplus Surplus Surplus Surplus 6.3. Interest Cover >110% >110% >110% >110% >110% >110% 6.4. Interest Cover Adjusted >110% >110% >110% >110% >110% >110% 6.5. Quick Ratio >1.1 >1.1 >1.1 >1.1 >1.1 >1.1 6.6. Gearing <28% <35% <35% <35% <35% <35% 6.7. Variable Rate: Fixed Rate Borrowing 60:40 60:40 60:40 60:40 60:40 60:40 6.8. Bad Debts <0.5% <0.5% <0.5% <0.5% <0.5% <0.5% 6.9. % of Invoices Paid within Payment Terms 100% 100% 100% 100% 100% 100% 6.10. Total Non-Technical Arrears as % of Gross Rental Income <3.00% <3.00% <3.00% <3.00% <3.00% <3.00% 6.11. Gross Rent Arrears as % of Rent Due (Current Tenants) <4.00% <4.00% <4.00% <4.00% <4.00% <4.00% 6.12. % of Rent Lost through properties being empty <1.0% <1.0% <1.0% <1.0% <1.0% <1.0%
7. PROCUREMENT 2019/2020 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 7.1. Compliance with Procurement Legislation (and best practice) * 0 7.2. Quarterly reports to all staff 100% 7.3. Annual report to Management Committee 100% 7.4 LSHA satisfaction with performance of contractor and consultants 100% 7.5 Contract compliance ** 100%
* 7.1 No legal or official challenges regarding procurement process ** 7.5 No Contracts terminated due to poor performance PERFORMANCE TARGETS 2020 - 2025 Appendix 11
8. ENERGY ADVICE 2019/2020 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 2024/2025 8.1. Property Surveys this year 260 0 0 0 49 0 8.2. EPCs for EESSH this year 100 0 0 0 34 0 8.3 Advice Visits to LSHA homes 0 0 0 20 0 8.4 Advice Visits to non LSHA homes 50 0 0 0 19 0 8.5 New Tenant Electricity Switching options identified 100 0 0 0 14 0 Appendix 12
BUIDHEANN TIGHEADAS LOCH AILLSE AGUS AN EILEIN SGITHEANAICH LTD LOCHALSH AND SKYE HOUSING ASSOCIATION
PROFESSIONAL ADVISERS
Company Secretary - Lesley MacIntosh
Financial Advice and Accounting - Kenneth Goddard ACCA CPFA - Campbell Thompson Associates Ltd
External Auditors - RSM UK Audit LLP
Internal Auditors - Quinn Internal Audit and Business Support Services
HR/Employment Law Services - Employers in Voluntary Housing Ltd
Health & Safety Policy and Advice - Employers in Voluntary Housing Ltd - Safehands (Health and Safety Division)
IT - Clearview Networks Ltd - Castleton Group Limited
Insurers - Zurich Municipal
Solicitors - Munro & Noble - Macleod & MacCallum - The MacKenzie Law Practice
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