Making our house your home
BOARD AGENDA 27 JUNE 2018
PRELIMINARY MATTERS Item Description Presented By Action Page No Time 1 Attendance & Apologies Chair Noting 3 2 Declaration of Interest Chair Noting - 3 Minute of Board Meeting Chair Approval 5 23 May 2018 5:30pm Chief 4 Action Sheet Noting 9 - Executive 5:40pm 5 Date of Next Meeting Chair Approval - 29 August 2018 6 Health & Safety Director of Noting - Operations
ITEMS FOR DECISION Item Description Presented By Action Page No Time 7 Annual Report & Financial Director of Approval 11 Statements for 31 March F&CS 2018 8 SHR Returns Director of Approval 81 F&CS 9 Budgetary Performance Director of Approval 99 5:40pm for Year Ended 31 March F&CS 2018 - 6:10pm 10 Tenant Participation Director of Approval 111 Update Operations 11 Investment Programme Director of Approval 113 Procurement 2019-23 Operations 12 Housing Allocations Director of Approval 124 Annual Report 2017/18 Operations
POLICIES FOR APPROVAL Item Description Presented By Action Page No Time 13 Risk Management Policy Chief Approval 144 6:10pm & Strategy Executive - 14 Naming a Development Chief Approval 153 6:20pm Policy Executive
MONITORING & UPDATE REPORTS Item Description Presented By Action Page No Time 15 Business Plan 2015/16 – Chief Noting 161 2019/20 Monitoring Executive Report 16 Financial Regulations Director of Noting 183 F&CS 17 Management Report to Director of Noting 184 6:20pm 31 May 2018 F&CS - 18 Investment Programme Director of Noting 207 6:50pm Monitoring Report Operations 19 Stock Condition Survey Director of Noting 212 Operations 20 Funders Valuation Director of Noting 215 F&CS
MEETING GOES INTO PRIVATE SESSION
2
Agenda Item 1
Board Meetings 2018/19 Board Members Notes 23-May-18 27-Jun-18 29-Aug-18 30-Aug-18 21-Nov-18 Norman Macleod Mairi Bremner Daniel Coyle Alasdair Mackenzie Calum Mackay Iain Macmillan Kevin Paterson John Mitchell Roddy Mackay John Mackay Dolene Smith 1
Member present at meeting 1 - Appointed as a Tenant Member on 23 May 2018 Member not present at meeting
Cancellation of travel due to weather/ technical problems
Member not required to be present at meeting
Special Leave Board Training 2018/19
Board Members Notes Mairi Bremner Daniel Coyle Alasdair Mackenzie Calum Mackay Iain Macmillan Kevin Paterson Roddy Mackay Norman Macleod John Mitchell John Mackay Dolene Smith 1
Member present at meeting
1 - Appointed as a Tenant Member on 23 May 2018 Member not present at meeting
Cancellation of travel due to weather/ technical problems
Member not required to be present at meeting Agenda Item 3
HEBRIDEAN HOUSING PARTNERSHIP
Board
Minutes of Meeting held in HHP Board Room, Creed Court, Wednesday, 23 May 2018 @ 5.30pm
ATTENDANCE & APOLOGIES
Attendance & Apologies 1 Present Staff & Consultants In Attendance Norman Macleod (Chair) Dena Macleod (Chief Executive) Calum Mackay (Vice Chair) John Maciver (Director of Operations) John Mackay Donald Macleod (Director of Finance & Corporate Mairi Bremner (by phone) Services John Mitchell Angela Smith (Corporate Governance Manager) Iain Macmillan Peter O’Donnell (Investment Manager) Alasdair Mackenzie Isabel Macmillan (Debt Management Officer) Roddy Mackay James Morrison (Finance Assistant) Apologies Rona Morrison (Customer Service Assistant) Danny Coyle Angus Macneil (Assets & Contract Manager) Kevin Paterson Jonathan Fairgrieve (Modern Apprentice) Donalda Mackinnon (Lewis Area Manager) Angus Smith (Corporate Resources Manager) Gary Macleod (Service Development Manager) Jane Ballantyne (Tenant Participation Officer) Iona France (Governance Admin Officer – Minute Taker)
PRELIMINARY PROCEDURAL MATTERS
2 Declaration of Interest There were no Declarations of Interest.
3 Minute of Board Meeting 21 March 2018 The minute of the Board meeting of 21 March 2018 was submitted and approved as a true and accurate record of the proceedings of the meeting.
4 Action Sheet Item 5 The Chief Executive advised that Exclamation Marketing has been appointed to provide external support for PR and communications and a meeting has been arranged prior to the June 2018 Board meeting. Item 20 The Director of Operations advised that the Housing (Scotland) Act 2014 will be before Parliament in June 2018 with provisions being enacted by May 2019. Item 23 Approval has been received from the Regulator and the Funder for the disposal of properties at Braehead. Item 27 There have been no expressions of interest of Shared Equity at Corran Ciosmul. The Action Sheet was noted.
5 Date of Next Meeting The date of the next meeting will be 27 June 2018.
6 Health & Safety There was nothing to report.
ITEMS FOR APPROVAL
7 Annual Return on the Charter 2017/18 The purpose of this report was to present the Partnership’s Annual Return on the Charter (ARC) 2017/18 and Energy Efficiency Standard for Social Housing (EESSH) to the Board for review and approval. The report summarised performance on arrears, voids, repairs, development and lettings and provided comparisons to the previous year’s data. The Director of Finance & Corporate Services highlighted several areas where performance had improved since last year including the average length of time taken to complete emergency repairs and arrears. The Board reviewed and approved: a) the Annual Return on the Charter; and b) the EESSH.
8 GDPR Preparation
This report updated Board Members on the preparation for the introduction of the General Data Protection Regulation (GDPR) and presented various supporting documents for consideration and approval. GDPR comes into effect on 25 May 2018 and HHP has been ensuring adequate arrangements are in place by the implementation date. The Board: a) reviewed and approved Privacy Policy; and b) noted the GDPR documentation provided on the Board Information Bulletin.
9 New Board Member Appointment This report asked the Board to consider the appointment of a new Tenant Board Member. Miss Dolene Ann Smith who is a Lewis Tenant and HHP Member, expressed interest in joining HHP’s Board, Miss Smith has met with the Governance Team and completed appropriate paperwork in support of her application. The Board considered the options whereby Miss Smith could be appointed to fill the vacant Harris Tenant Board Member post, in accordance with Rule 37.3, or be co-opted to the Board as a Tenant Member. In either case the appointment would be until the AGM in August 2018. The Board approved the appointment of Miss Dolene Anne Smith to the Board to fill the vacant Tenant Board Member post.
10 Quarterly Treasury Report The report informed the Board of the Treasury Management activities for the fourth quarter of 2017/18 and also sought approval for the limit of cash surpluses to be held by one institution be increased to £2.5m. The current limit of cash surpluses held by one institution is £1.5m. It is proposed to increase this limit to spread deposits over the existing approved institutions whilst maximising the amount of money on deposit in the highest interest bearing facility. Calum Mackay asked if this would increase the risk to HHP and the Director of Finance & Corporate Services advised that any risk is mitigated through the Annual Financing Strategy and the annual review of approved bank’s credit worthiness. The Board: a) Approved the limit of cash surpluses to be held by one institution be increased to £2.5M; b) Noted the quarterly report on the Analysis of Investment and Borrowing; c) Noted the outstanding loans at 31 March 2018 of £4.95 million; and d) Noted the cash balance at 31 March 2018 of £10.759 million.
11 Investment Programme This report provided an update on the delivery of the 2017/18 Investment Programme, the tendering of the 2018/19 Investment Programme and advised Board Members of the proposed legislative requirements for additional smoke and heat detectors to be installed in all housing. The report also sought approval to accept the proposal from SSE for the provision of external wall insulation to Swedish timber houses at Dunmore Crescent, Leverburgh. The Assets & Contracts Manager advised that the majority of works for 2017/18 have been satisfactorily completed and the 2018/19 programme is underway with contracts having been awarded for a significant proportion of the works. A proposal has been received from SSE to carry out external insulation works at Dunmore Crescent,
Leverburgh. It is not proposed to tender this work as the price is competitive and includes detailed specifications and project management. The Director of Operations advised that, subject to Board approval, once timescales are available from SSE, the affected tenants will be informed. The Investment Manager advised that during heating works in Plasterfield asbestos was found on a panel in a bathroom. Appropriate safety advice measures have been put in place to ensure the panel is not disturbed. Letters have been issued to affected tenants and to private households to advise them of the position. The Assets & Contracts Manager advised it is highly likely legislative changes to heat and smoke alarms installations will be put in place and additional protection will be required across all stock. An update will be provided to the Board once more information is known. ALT Consultancy has been appointed to provide consultancy support on the Investment Programme procurement. Representatives from ALT Consultancy are due to meet with the Investment Working Group in June 2018. The Board: a) Agreed to accept the proposal from SSE for the provision of external wall Insulation to Swedish Timber Houses properties at Dunmore Crescent. Costs of £276k to be met from insulation budget; b) Noted the update pending requirements for smoke and heater detectors on the Housing (Scotland) Act 2014; c) Noted the appointment of ALT Procurement for consultancy support for the Investment Framework Procurement 2019-2023; and d) Noted the issue with asbestos at 1-50 Plasterfield.
12 Fuel Poverty Update The report updated the Board on the works and initiatives being undertaken to reduce the level of fuel poverty on HHP tenants. The Investment Manager advised approval was being sought to begin discussions with Union Technical to make a bid from the Warm Homes Fund. The bid would involve a variety of work including room in roof insulation, cavity insulation and internal wall insulation. The report also sought approval to terminate the current voids management agreement with SSE and to enter into a new agreement with Our Power (Hebrides Energy) to offer a better option for most tenants. The Chair asked that an article promoting Hebrides Energy be included in the next newsletter. The Director of Operations advised that the draft Stock Condition Survey showed that fuel poverty has dropped from 64% of households to 50% of households being in fuel poverty. Calum Mackay asked that figures showing how much money has been spent on alleviating fuel poverty be made available at the Board meeting in June 2018. The Board: a) Noted the actions being taken to alleviate fuel poverty; b) Agreed to begin discussions with Union Technical on a Warm Homes Fund bid; and c) Agreed to terminate the voids management agreement with SSE and enter into a new agreement with Our Power (Hebrides Energy).
POLICIES
13 Fire Safety Policy The Fire Safety Policy has been reviewed and there are no material changes to the policies following this review. The Board approved the Fire Safety Policy.
14 ICT Security Policy The ICT Security Policy has been reviewed and there are no material changes to the policies following this review. The Board approved the ICT Security Policy.
15 Development Policy Review This report provided the Board with a Development Policy review schedule. All of the existing Development Policies require to be updated. A full review of all existing policies will be carried out and some may be combined for clarity and simplification. The Board approved the Development Policy Review Schedule.
MONITORING & UPDATE REPORTS
16 Repairs Service 6 Month Review This report provided an update of the repairs position, an analysis of current and past trends and provided the results of the latest service review. Contract performance is at a satisfactory level and FES continue to engage constructively in seeking service, system and performance improvements and to pursue continuous improvement. The Board noted the Repair Service 6 month review.
17 Regulation Plan 2018/19 This report informed the Board of HHP’s Regulation Plan for 2018/19 . The Chief Executive advised the Board that our Regulation Manager has changed. Mr Peter Freer has left the SHR and our new Regulation Manager is Ms Kirsty Anderson. The issues highlighted in the Regulation Plan are rent affordability and performance in relation to four of the 63 ARC Indicators. Action is underway to ensure both of these issues are resolved during the year. The Board noted the 2018/19 Regulation Plan and the Performance Indicators.
18 Business Plan Monitoring Report This report provided an update on the Business Plan Action Plan agreed in March 2018. The Chief Executive advised that a full review of the Business Plan will be carried out following the AGM in August and will involve a consultation process with tenants and other partners. The Board noted the progress in the Business Plan Objectives Monitoring Report.
19 Stock Condition Survey The Director of Operations advised that the full Stock Condition is still outstanding. The dissatisfaction with the service provided has been stressed to the consultants. The draft report showed that the stock is in good conditions with no backlog of repairs. The Board noted the update on the Stock Condition Survey.
20 Review of Corporate Registers This report assured Board Members that HHP’s registers are functioning in accordance with the Partnership’s constitutional documents, regulatory and legal requirements and that they are fully up to date. The Board noted the review of the Corporate Registers.
21 Asset Management Strategy The report updated Board members on the Asset Management 2016-2020 Action Plan. The Board noted the progress on the Asset Management Strategy Action Plan.
MEETING GOES INTO PRIVATE SESSION
Chairperson Mr Norman M Macleod
SIGNED ……………………………………………………… DATE ………………………………………………………
Agenda Item 4
Board Action Sheet
Action MINUTE Point NUMBER ACTION TO BE TAKEN DEADLINE/ ACTION BY PROGRESS TIMESCALE
1 23 May 2018 Submit ARC & EESSH to Regulator. 31 May 2018 Corporate Submitted 31/05/18 Governance (7) Manager
2 23 May 2018 Provisions for GDPR to be implemented. 25 May 2018 Corporate Implemented and communicated on 24/05/18 Governance (8) Manager
3 23 May 2018 SSE to be contacted to provide timescale for works at Dunmore Director of Crescent and tenants advised. Operations (11) Letters to be issued to private households re Asbestos in Plasterfield Assets & Investment Working Group to meet with ALT Consultancy 6 June 2018 Contracts M Manager
4 23 May 2018 Begin discussions with Union Technical on a Warm Homes Fund Bid Investment Manager (12) Terminate voids agreement with SSE and enter into a new agreement with Our Power Article on Hebrides Energy in next newsletter Provide figures showing how much has been spent on Fuel Poverty
5 23 May 2018 Full review of Development Policies. 30 Nov 2018 Development In progress – update report to Board in May 2018. Manager (15)
6 21 Mar 18 Standing Orders to be reviewed to incorporate the requirements of Chief Executive Awaiting first meeting of the Investment Delivery Board. the Investment Delivery Board. (11)
7 21 Mar 18 Board Development plan progress to be updated and sent to Board 20 Apr 2018 Corporate Virement level increased for Goathill any further changes Members to prioritise actions. Governance will be reported to the June Board (12) Manager
8 21 Mar 18 Repairs & Maintenance Service to be re-procured with the scope Director of To be progressed during 2018. and packaging of the contract to be developed through the Operations (13) Investment Working Group. Action MINUTE Point NUMBER ACTION TO BE TAKEN DEADLINE/ ACTION BY PROGRESS TIMESCALE
9 21 Mar 18 Policies to be reviewed on an annual basis to confirm remain 20 Nov 18 Corporate To be reviewed every November. compliant with OSCR and a report to go to November Board. Governance (18) Manager
10 14 Feb 18 Proposal for budget carry over to be presented to Board in June June 2018 Director of To be presented at June Board. 2018. Finance & (19) Corporate Services
11 15 Nov 17 Investment Programme for 18/19 to be tendered during December 30 April 2018 Director of Tendering in progress. Over 50% of work awarded. 2017. Operations (10)
12 15 Nov 17 Gas Training to be actioned. 31 Aug 2018 Director of To be carried out during August 2018. Operations (11) Arrange for Gas Audit to be carried out on an Annual basis.
13 15 Nov 17 Training on void loss accounting to be arranged. 31 Aug 2018 Director of To be arranged alongside financial training requested by Finance & Board Members. (20) Corporate Services
14 28 June 17 Report to September Board on Subsidiary activities. 27 June 2018 Director of Board members & Staff were requested to provide some Finance & ideas with regards to potential subsidiary activities at the (8) Corporate January 2018 Business Planning Day. Key Deliverables for Services 2020 were also set at the Business Planning Day. The Executive Team will review how the subsidiary might be used as the vehicle to deliver these suggestions with a report being made available to the Board in June 2018.
15 16 Mar 17 Stock Condition Survey to be carried out in 2017. 23 May 2018 Director of An initial report is overdue but will be presented to the Operations Board meeting in June 2018. (11)
16 16 Mar 17 Install infra-red heating in up to 3 larger properties. Director of 1 property completed. Operations (14)
17 1 Feb 17 Convene a meeting of the Housing Management Working Group to Director of Meeting held in May 2018. The 2014 Act is being enacted progress the implications of the Housing (Scotland) 2014 Act. Operations in June 2018. (18)
18 6 Sep 16 Fuel Poverty Survey to be carried out as part of the 2017 Stock 23 May 2018 Director of Included in brief for survey. Report awaited. Condition Survey. Operations (18)
ITEM NO 7
Making our house your home
ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2018 Audit & Risk 26 June 2018 Board 27 June 2018
Report by Director of Finance & Corporate Services
Purpose of Report
1.1 To present the Annual Report and Accounts for the year ended 31 March 2018 to the Board and Audit & Risk Committee for approval. Summary
2.1 The Annual Report and Accounts for the year ended 31 March 2018 have been prepared and are at Appendix 1. A summary of the Annual Report will be included in the Newsletter and is at Appendix 2. Competence
3.1 The legal, financial or other constraints to any recommendations in this report being implemented are detailed in paragraphs 5.1 to 7.1. Recommendations
4.1 It is recommended that the: a) Audit & Risk Committee review the Annual Report for the year ended 31 March 2018 as at Appendix 1 and recommend approval to the Board; b) Board approve the Annual Report and Accounts for the year ended 31 March 2018 as at Appendix 1; c) Board approve the summary of the Accounts as at Appendix 2 for inclusion in the Tenants Newsletter; and d) Subsidiary Accounts for the year ended 31 March 2018 be noted.
APPENDIX 1 Annual Report and Accounts for the year ended 31 March 2018 APPENDIX 2 Summary of Accounts 2017/18 APPENDIX 3 HHP Community Housing Accounts for the year ended 31 March 2018 Background Papers: Writer of Report: Donald Macleod Tel: 0300 123 0773
Jonathan Fairgrieve 5 Jun-18 Competence
Financial 5.1 The Annual Report and Financial Statements report on how the resources for the year ended 31 March 2018 have been utilised. The cost of auditing and producing copies of the Annual Report and Accounts has been provided for in the Annual Report and Accounts. Legal 6.1 The following Partnership rules are applicable: a) Rule 69 - The Partnership must keep proper books of accounts to cover its income, expenditure transactions and its assets, liabilities and reserves in line with Part 7 of the Co-operative and Community Benefit Societies Act 2014. It must also set up and maintain a suitable system for controlling its books of accounts, its cash and its receipts and invoices. b) Rule 70 – The Board must send the Partnership’s accounts and Balance Sheet to the Partnership’s auditor. The auditor must then report to the Partnership on the accounts they have examined. In doing this, the auditor must follow the conditions set out in Part 7 of the Co-operative and Community Benefit Societies Act 2014 and Part 6 of the Housing(Scotland) Act 2010.c) c) Rule 71 - The Partnership must provide the Scottish Housing Regulator and the Financial Services Authority with a copy of its accounts and the auditor’s report within six months of the end of the period to which they relate. 6.2 The Annual Report and Financial Statements prepared must comply with the Statement of Recommended Practice (SORP) - Accounting by registered social landlords 2014 and the Determination of Accounting Requirements issued by the Scottish Housing Regulator. 6.3 The Facility Agreement with our Funder’s requires the Partnership to submit audited Annual Report and Financial Statements within six months from the end of the period to which they relate and also confirmation from our External Auditor that the Financial Covenants have been met. 6.4 The following Financial Regulations are applicable: a) 5.10.2 – Preparation of annual accounts is to commence immediately after the end of each financial year and draft accounts are to be prepared for consideration by the auditors and by the Resources Committee no later than three months after the year-end. b) 5.10.4 - the draft accounts and audit management letter will be reviewed by the Audit and Risk Committee. On the recommendation of the respective Committees, the draft accounts will be submitted to the Board for approval, and subsequently for adoption at the Annual General Meeting.
Jonathan Fairgrieve 5-Jun-18 Regulatory Guidance 7.1 The relevant Regulatory Standards are:
Standard Sections
2 The RSL is open about and accountable for what it 2.1, 2.2, 2.4 does. It understands and takes account of the needs and priorities of its tenants, service users and stakeholders. And its primary focus is the sustainable achievement of these priorities.
3 The RSL manages its resources to ensure its financial 3.1, 3.5 well-being and economic effectiveness.
Risk 8.1 The risk of not complying with the Legal requirements has been mitigated by completing the preparation of the Annual Reports and Financial Statements within three months of the year-end.
Report Details
9.1 A set of accounts for the year ended 31 March 2018 have been prepared and are at Appendix 1 to this report. An audit report will be issued at the meeting of the Committee and the Board. 9.2 Confirmation from Wylie & Bisset that HHP has met the Financial Covenant for 2017/18 as required by our Funder is also expected at the meeting. 9.3 Opportunity to ask questions with regards to the Accounts and performance for the year will be given at the Board meeting. 9.4 The key financial factors to highlight in the Annual Accounts are that: a) Operating surplus of £2,603,859 shows a decrease from the previous year of £592,833. The key changes are detailed below:
Area £000’s Reason
Rental Income 24 Increase driven by annual rent increase offset by reduction in the number of units through RTB sales.
Management & (368) £70K reduction in Internal Fees – driven by Maintenance lower investment spend in the year. £124K Administration Pension impact from annual actuarial Costs valuation. £182K increase in Employee Costs as a result of the annual pay increase and the increased headcount.
Jonathan Fairgrieve 5-Jun-18 Area £000’s Reason
Depreciation (183) Increase driven by new build properties capitalised in the year
Repairs (90) High level of demand on service in the last quarter – partly driven by lengthy cold spell.
Increase in Grants 84 Increase in Grant Amortization
Voids (2) Slight increase in Voids driven by low demand properties
Bad Debts (53) £53K increase in bad debts, mainly driven by sundry debts and rechargeable repairs.
b) Reserves are allocated as shown below: Reserves Allocation
General Repairs 31-Mar Reserve Asbestos & Renewals Total £ £ £ £ Balance at 1 April 2017 19,009,820 1,280,261 2,217,649 22,507,730 Surplus 2017/18 4,502,903 4,502,903 Transferred to Reserve (540,000) 140,000 400,000 - Balance at 31 March 2018 22,972,723 1,420,261 2,617,649 27,010,633
c) Increase of £4,502,903 in net assets reflecting the investment in transfer properties and the continued development work; d) Inclusion of the subsidiary HHP Community Housing and the decision not to prepare group accounts due to the immateriality of the trading activity of the Company during the year; and e) The statement of comprehensive income includes a significant actuarial gain of £2,425,000 for 2017/18 which has arisen due to a change in the actuarial financial measurement assumptions. 9.5 A separate report is being presented to the Board and detailing performance for the year against the approved budget.
Jonathan Fairgrieve 5-Jun-18 APPENDIX 1
Report & Financial Statements For the Year Ended 31 March 2018
A Registered Society under the Co-operative & Community Benefit Societies Act 2014 No: 2644R (S) Registered Charity No: SCO 35767 Scottish Housing Regulator registration: No 359 Property Factor Act: No PF000183 0 | P a g e TABLE OF CONTENTS INTERPRETATIONS & ABBREVIATIONS
BOARD OF MANAGEMENT, DIRECTORS AND ADVISERS ...... 2 OVERVIEW OF BUSINESS ...... 4 CORE VALUES ...... 5 REGULATION ...... 5 STRATEGY & OBJECTIVES ...... 6 DYNAMICS OF THE SOCIAL LANDLORD ...... 7 KEY RISKS IMPACTING ON THE FUTURE ...... 8 GOVERNANCE & MANAGEMENT ...... 8 INTERNAL FINANCIAL CONTROL ...... 11 BOARD STATEMENT ON INTERNAL FINANCIAL CONTROL ...... 14 STATEMENT OF BOARD RESPONSIBILITES ...... 14 STATEMENT OF DISCLOSURE TO AUDITORS ...... 15 PERFORMANCE AND FINANCIAL REVIEW ...... 17 OPERATIONAL REVIEW ...... 18 FINANCIAL REVIEW ...... 19 PLANS FOR THE FUTURE ...... 20 INDEPENDENT AUDITORS REPORT ...... 21 REPORT BY THE AUDITORS TO THE MEMBERS OF HEBRIDEAN HOUSING PARTNERSHIP LIMITED ON CORPORATE GOVERNANCE MATTERS ...... 24 STATEMENT OF COMPREHENSIVE INCOME AS AT YEAR 31 MARCH 2018 ...... 27 STATEMENT OF CHANGES IN RESERVE AS AT YEAR 31 MARCH 2018 ...... 28 STATEMENT OF FINANCIAL POSITION AS AT YEAR 31 MARCH 2018 ...... 29 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2018 ...... 30 NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2018 ...... 31 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018 ...... 32
1 | P a g e REPORT AND FINANCIAL STATEMENTS
BOARD OF MANAGEMENT, DIRECTORS AND ADVISERS
Name Category Changes during the year
Appointed Resigned
Daniel Coyle Tenant 7 September 2017 (re-appointed)
Alasdair Mackenzie Tenant 7 September 2017 (re-appointed)
Kevin Paterson Tenant 7 September 2017 (re-appointed)
Dolene Smith Tenant 23 May 2018
Iain Macmillan Community 7 September 2016 (re-appointed)
Calum Mackay Community 7 September 2016 (re-appointed)
Jane Mackinnon Community 3 September 2015 7 September 2017 (re-appointed)
Mairi Bremner Community 7 September 2017 (re-appointed)
Norman M Macleod Councillor 3 May 2017
Community 7 September 2017
David Blaney Councillor 3 May 2017
Donald J Macrae Councillor 3 May 2017
Gordon Murray Councillor 17 May 2017 7 February 2018
John G Mitchell Councillor 17 May 2017
Roddy MacKay Councillor 17 May 2017
John MacKay Councillor 7 February 2018
2 | P a g e Secretary and Registered Office Funders
Dena Macleod BA CA Royal Bank Of Scotland plc Creed Court RBS Global Banking & Markets Gleann Seileach Business Park Kirkstane House Willowglen Road 139 St Vincent Street Stornoway Glasgow Isle of Lewis G2 5JF HS1 2QP
External Auditors Solicitors Wylie & Bisset LLP Harper Macleod 168 Bath Street The Ca’d’oro Glasgow 45 Gordon Street G2 4TP Glasgow G1 3PE
Bankers Directors Royal Bank of Scotland plc Chief Executive : Dena Macleod BA CA 17 North Beach Street Director of Operations: John Maciver BSc Stornoway MPHIL, FCIH Isle of Lewis HS1 2XH Director of Finance & Corporate Services: Donald Macleod BAcc, FCCA
Contact Details
Phone: 0300 123 0773
E-mail: [email protected]
Web: www.hebrideanhousing.co.uk
Twitter: HebrideanHousing@HebHousing
3 | P a g e REPORT OF BOARD OF MANAGEMENT
The Board of Management presents its report for the year ended 31 March 2018.
OVERVIEW OF BUSINESS
The principal activity of HHP is to provide and manage good quality, affordable accommodation for people in housing need in the Outer Hebrides. HHP is a charitable RSL and owns and manages a range of houses for rent, primarily general needs accommodation but also some sheltered and supported accommodation. HHP provides accommodation for homeless people who are referred as statutory homeless and requiring permanent secure accommodation by Comhairle Nan Eilean Siar. HHP stock at 31 March 2018 was 2,164 with 79 new build units under development.
4 | P a g e CORE VALUES
HHP’s core value is “Integrity – We honour commitments made to our Tenants and build trust”. The core value is supported by the following five values:
• We focus on postive outcomes for our customers. Their Customer Focus views will inform the provision and development of services.
• We will strive to ensure that there is no discrimination Equal evident in the way we deliver services. All customers will be treated with respect. We shall treat people the way we Opportunities like to be treated.
Quality of Service- Excellence • We shall seek to ‘do it right’ at the first time of asking
• We aim to promote sustainable communities where Sustainability people want to live now and in the future.
• We Provide a challenging, supportive and rewarding work Supporting Staff environment.
REGULATION
The Scottish Housing Regulator publishes a Regulation Plan for all social landlords on an annual basis. The Regulation Plan sets out the level of engagement. HHP, because of its ‘systemic importance’ in the Outer Hebrides is categorised as ‘medium engagement’ by the Scottish Housing Regulator in the 2018 Regulation Plan. Given the level of public money invested by HHP on an annual basis it is important that the Regulator has assurance that the organisation is well managed and achieves value for money. Two meetings a year take place with the Regulator to review the risks and challenges facing the business and progress against the Business Plan. 30 year and 5 year financial projections are submitted to the Regulator in June. The Regulator has expressed satisfaction with HHP’s progress for 2017/18.
5 | P a g e STRATEGY & OBJECTIVES
HHP’s strategy and objectives are detailed in its 30 Year Business Plan. The Business Plan highlights 5 core business activities which have shaped and will continue to shape the future of HHP and the way housing services are delivered to tenants:
Investment Programme
Housing New Build Management Programme
Repairs & Environmental Maintenance Improvements
Investment Programme HHP invested £3 million in 2017/18 on improvements to tenant’s homes. The focus on addressing fuel poverty continued with 172 new heating systems being installed and insulation works were completed in 103 properties. A major stock condition survey was commissioned and this will inform investment plans from 2019 onwards. Scottish Housing Quality Standard (SHQS) HHP has met the Scottish Housing Quality Standard but there are a significant number of properties classed as exemptions and abeyances. These are mainly due to energy efficiency driven by the fact that we are in an ‘off-gas’ area. We are addressing these as the opportunity arises and in addition we are working to achieve the Energy Efficiency Standard for Social Housing (EEESH). Repairs & Maintenance The Board agreed to exercise the final 2 year contract extension option on the current Repairs and Maintenance contract with FES. The contract expires in 2020 and the Board further agreed to retender the contract. The preparatory work will commence in 2018/19. The strong working partnership between HHP and FES has continued with the mutual goal of maximising the benefit to tenants. Further service and performance improvements were delivered in the year. New Build Programme The Comhairle received a major increase in funding for new build housing over the 3 year period to 2021. We are working closely with the Comhairle to plan and deliver this significantly increased programme including the development of a new care provision in Stornoway on the Goathill site owned by HHP. A masterplan was completed which will see HHP deliver a 50 bed housing with care development and around 75 houses on the site. At April 2018 there were 79 houses under construction across a number of sites with a further 34 either due to start or at tendering stage.
6 | P a g e Future New Build Projects We are carrying out feasibility studies on around 20 sites as we seek to deliver the Comhairle’s housing strategy. We are working with local communities and the construction sector to identify potential sites and to try to ensure that we maximise this opportunity.
MACKENZIE LANE, STORNOWAY
New Build Units 450 400 350 300 250 200 150 100 50 0 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18
Business Plan Target Actual
DYNAMICS OF THE SOCIAL LANDLORD
The Partnership is focused on providing housing within the Outer Hebrides. The population decline of the last 30 years is continuing and the proportion of young people and children is worryingly low. The proportion of elderly people is forecast to increase significantly. Demand is higher in Stornoway and to a lesser extent in Tarbert, Balivanich and Castlebay. However there is weakening demand in many areas, particularly South Lochs, Bernera & Uig and South Uist. This will impact on future strategy for new build programmes.
7 | P a g e KEY RISKS IMPACTING ON THE FUTURE
HHP’s 30 year business plan is extremely sensitive to changes in the operating environment and in an effort to minimise that risk, a risk strategy and risk register has been prepared. The strategy is updated annually and the register is reviewed quarterly and updated as necessary. Any risk which materially jeopardises the Partnership’s ability to achieve its Mission and Objectives or conduct its business is not accepted. HHP’s risk appetite is assessed annually at Board Business Planning days.
GOVERNANCE & MANAGEMENT
HHP is a registered Co-operative and Communities Benefit Society and is governed by a set of Rules appropriate for a Registered Social Landlord. The Partnership is governed by a voluntary Board of Management which is supported by a Chief Executive, Executive Team and staff. A full list of Board Members is at page 2. All Board Members and staff are required to operate within a set of Standing Orders, policies and financial regulations. The composition of the Board includes four tenant representatives. The Board’s skill mix is regularly reviewed, and where gaps are identified, Board Members seek to identify individuals from within the Partnership’s existing membership and wider environment to strengthen the range of expertise on the Board. The Governance structure is shown in Figure 1. Figure 1 Board of Management
Board of Management
Audit & Risk Community Spokesperson Working Groups Committee Liaison Groups
Development Housing Mgt Lewis
Tenants Investment Harris
Repairs & Development Uist Investments
Finance Finance Barra
Remuneration
New Board Members undergo induction training which includes a “buddy” system where an experienced Board Member will make themselves available to assist a new Board Member. The Partnership’s Standing Orders allow for one Standing Committee and four Community Liaison Groups.
8 | P a g e The Board comprises up to 12 members - 4 Tenant Members, 3 Comhairle Nan Eilean Siar nominees, 5 Community Representatives and up to 3 Co-optees. There are currently 11 Board Members. HHP’s Rules require that two community and two Tenant Members step down each year. There will be elections for the vacant positions at the Annual General Meeting in September 2018. Tenant and Community Members of the Board hold one fully paid £1 share. During 2017/18 six shares were issued to new members. The Board is responsible for the overall strategic direction and objectives of HHP. Key responsibilities include overseeing: • Approval of Business Plan; • Delivery of Business Plan; • Ensuring compliance with our values and key objectives; • Establishing strategic plans to achieve objectives; • Appraising the annual financial statements; • Establishing a framework of delegation and system of internal control; and • Achieving the highest standards of governance. Currently, HHP’s Board has delegated responsibility to the following Standing Committee:
Audit & Risk The Audit & Risk Committee is responsible for ensuring that the activities of the Board are within the law and regulations which govern the Board, and that an effective internal control system is maintained. Specifically this Committee: • Reviews HHP’s systems of internal control and risk management; • Provides an overview of the internal and external audit functions; • Scrutinises the financial statements; • Monitors the implementation of internal audit recommendations, external audit reports and management letters; • Reviews the internal audit plan and scope of work; and • Reviews the effectiveness of the overall risk strategy.
Tenant Participation The Board took a decision during the year to continue to broaden and strengthen opportunities for tenants to engage with HHP and to actively participate in a way that suits them. Tenant Participation Advisory Service (TPAS) were re-appointed, following competitive procurement to provide a Tenant Participation Development Service to HHP. This service will continue to support existing tenants and residents groups and
9 | P a g e will reach out to all tenants to help them to become involved in the planning and monitoring of services.
Health & Safety The Board places the highest priority on the Health and Safety of tenants, staff and contractors. A Health and Safety group chaired by the Director of Operations meets regularly with a remit to ensure the Health and Safety requirements are being met by the Partnership.
Political & Charitable Donations There were no political donations made by HHP during the financial year. A total of £5,000 was donated during the year to the following local charities: £1,000 MacMillan Nurses; £1,000 Western Isles Community Carers Support Network; £1,000 Western Isles Community Care Forum; £1,000 Young Musicians Hebrides; and £1,000 Stornoway Phab Club.
Disclosure Of Information To Auditors The Board Members who held office at the date of approval of this Board report confirm that, so far as they are each aware, there is no relevant audit information of which the Partnership’s auditors are unaware; and each Board Member has taken all the steps that he/she ought to have taken as a Board Member to make himself/herself aware of any relevant audit information and to establish that the Partnership’s auditors are aware of that information.
Auditors A resolution to re-appoint Wylie & Bisset as auditors of HHP will be proposed at the Annual General Meeting in September 2018.
Employee Policies The 30 year Business Plan recognises that the well-being of staff is critical to successful service delivery. A core objective is to be a good employer that attracts and retains high quality staff. HHP will ensure that there is sufficient and well trained staff to deliver high quality services.
Recruitment HHP want staff to feel safe in their working environment and that they are treated fairly irrespective of colour, age, disability, religion or sexual orientation. A Recruitment Policy has been developed which aims to: • Recruit and select the best candidate for every vacancy; and
10 | P a g e • Ensure that access to employment opportunities is based on fair, objective and consistent criteria.
Training HHP is committed to the training and development of all its employees and Board Members. Regular training needs assessments are carried out for Board Members which feed into Training Plans. A training programme for staff for 2017/18 has been compiled from training needs highlighted during the staff performance appraisal system. All managers who undertook ILM training have now successfully completed their training and received the appropriate accreditation.
INTERNAL FINANCIAL CONTROL
The Board of HHP is responsible for establishing and maintaining systems of internal financial control within the organisation. By their nature these systems can provide reasonable, but not absolute, assurance against material mis-statement or loss. The internal control framework is supported by organisational control measures including, financial and business planning, performance monitoring and reporting, project management and communication systems. The internal control framework also relies on formal governance measures including a structure of corporate policies, authorities and responsibilities delegated from the Board to the Executive Team.
Framework Of Internal Control The key methods by which the Board establishes the framework for providing effective internal financial controls are dealt with in the next part of this report.
Management Structure The organisation for which the Board has overall responsibility is governed by a set of Standing Orders, which reserves specific powers to the Board and delegates functions and powers to its Officers, Committee and Working Groups. The Executive Team, comprising of the Chief Executive and the Directors, has two main functions; Operations and Finance & Corporate Services.
Audit & Risk Committee The Audit & Risk Committee consists of six members. Meetings are normally held six times a year to review and approve annual internal and external audit plans, reports and the action taken on issues raised by audit. In addition the Audit and Risk Committee reviews the corporate risk management arrangements including the Risk Register.
11 | P a g e
System Of Internal Control The key elements of the system of internal control are as follows: • Regular meetings of the Board, which has a schedule of matters specifically reserved for its approval and which are the subject of regular standard reports as required; • Appointment of Internal Auditors who work to the standards of the Institute of Internal Auditors and produce an annual internal audit plan and regular internal audit reports; • The review of reports prepared by Internal Auditors by the Audit and Risk Committee on a regular basis; and • A corporate financial plan with a detailed annual budget, regularly revised forecasts, a comparison of actual with budget and key performance indicators all of which are reviewed by the Board.
Identification Of Business Risk Risk Management lies with the Board supported by the Executive Team. Key risks have been identified as part of the business planning process and scored to reflect the likelihood of this occurring. Mitigation strategies are put in place to minimise the impact of identified risk on the organisation. The three most significant risks identified during 2017/18 were the failure of a major contractor, the health of the local economy and rent affordability. Other significant risk factors include the impact of Universal Credit and the potential impact from a severe weather event. Increased costs are also being experienced by local contractors on supplies which will inevitably lead to increased costs in maintenance and new build. The local economy continues to be fragile with risk of contractors experiencing cash flow problems and the potential for business failure. During the Business Planning session on 31 January 2018, the Board reviewed and set the Partnership’s risk appetite for the coming year.
Corporate Risk The Risk Register, which is updated and reviewed at each Audit & Risk Committee, is organisation wide and shows each risk, the significance of the risk and the probability of these risks occurring. The Register also details the impact of the risks should they occur and who will have responsibility for devising and implementing suitable controls and mitigating actions.
Management Information Systems Management Information Systems have been established which provide monthly information on key aspects of the business. Management accounts comparing actual results against budget are presented to the Board along with performance against key financial and non-financial indicators.
12 | P a g e Internal Audit On 1 April 2016 the Board re-appointed Scott-Moncrieff as their Internal Auditors. The Internal Auditors report directly to the Audit and Risk Committee. The External Auditors have placed reliance on the work carried out by the Internal Auditors on the accounting systems.
Investment Appraisal The Financial Regulations provide the framework and procedures for investment appraisal. Expenditure beyond certain levels requires to be approved by the Board. A Fixed Asset Register is in place which details all the assets owned by the Partnership.
Investment On 1 June 2010 HHP Community Housing Limited was formed as a non-charitable subsidiary of the Partnership. During 2017/18 there was no activity. The Board during its business planning session have asked officers to explore potential new areas of business activity. The majority of the proposed areas of activity would need to be undertaken by the subsidiary due to their nature.
13 | P a g e BOARD STATEMENT ON INTERNAL FINANCIAL CONTROL
The Board acknowledges its ultimate responsibility for ensuring that the RSL has in place a system of controls that is appropriate for the business environment in which it operates. These controls are designed to give reasonable assurance with respect to: • the reliability of financial information used within the Partnership, or for publication; • the maintenance of proper accounting records; and • the safeguarding of assets against unauthorised use or disposition.
STATEMENT OF BOARD RESPONSIBILITES
It is the Board’s responsibility to establish and maintain the systems of internal financial control. Such systems can only provide reasonable and not absolute assurance against material financial mis-statement or loss. Key elements of the Association’s systems include ensuring that: • formal policies and procedures are in place, including the ongoing documentation of key system and rules in relation to the delegation of authority, which allow the monitoring of controls and restrict the unauthorised use of the Partnership’s assets; • experienced and suitably qualified staff take responsibility for important business functions and annual appraisal procedures have been established to maintain standards of performance; • forecasts and budgets are prepared which allow the Management Team and the Board to monitor the key business risks, financial objectives and progress being made towards achieving the financial plans set for the year and for the medium term; • monthly financial management reports are prepared promptly, providing relevant, reliable and up to date financial and other information, with significant variances from budget being investigated as appropriate; • regulatory returns are prepared, authorised and submitted promptly to the relevant regulatory bodies; • all significant new initiatives, major commitments and investment projects are subject to formal authorisation procedures, through the Board; • the Audit Committee/Board received reports from management and from external and internal auditors to provide reasonable assurance that control procedures are in place and are being followed and that a general review of the major risks facing the Partnership is undertaken; and • formal procedures have been established for instituting appropriate action to correct any weaknesses identified through internal or external audit reports.
14 | P a g e The Board has reviewed the effectiveness of the system of internal financial control in existence in the Partnership for the year end 31 March 2018. No weaknesses were found in internal financial controls which results in material losses, contingencies or uncertainties which require disclosure in the financial statements or in the auditor’s report on the financial statements. The Board of Management is responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the financial position of the Partnership and to enable them to ensure the Financial statements comply with the Co-operative & Community Benefits Societies Act 2014, the Housing (Scotland) Act 2010 and the Determination of Accounting Requirements 2014. It is also responsible for safeguarding the assets of the Partnership and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. It is also responsible for ensuring the Partnership’s suppliers are paid promptly.
STATEMENT OF DISCLOSURE TO AUDITORS
In so far as the Board of Management is aware: • There is no relevant audit information (information needed by the Partnership’s auditors in connection with preparing their report) of which the Partnership’s auditors are unaware, and • The Board of Management have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the Partnership’s auditors are aware of that information.
On behalf of the Board Norman M Macleod Chair
15 | P a g e OPERATING AND FINANCIAL REVIEW
16 | P a g e PERFORMANCE AND FINANCIAL REVIEW
A summary of the key performance areas for the year are detailed in the following paragraphs.
Housing Services Despite the ongoing challenges being presented by Welfare Reform, we continue to see arrears reducing year on year. Preparatory work for the full roll-out of Universal Credit (UC) in the Outer Hebrides is continued. The date was amended again and is now due in September 2018. We have revised and updated our systems and processes to adapt as the UC system changes. The number of cases continues to be low ahead of the full roll out. The ‘bedroom tax’ is mitigated in full again this year through Discretionary Housing Payments (DHP) and we acknowledge the support of the Comhairle with this. Weakening demand for housing across most areas of our islands is an on-going concern and one which the Board is monitoring closely. We will continue to explore options to address this and have taken the decision to dispose of stock which is not delivering good solutions for tenants and which impact negatively on the business. We must stress the need for partnership working to address the demographic challenges which contribute to the weakening demand. Void rent loss is increasing as demand in certain areas continues to decline and the average days taken to let properties increased. If the remaining difficult to let properties are excluded, properties were let in an average of 18 days. This is a reasonable performance but has dropped slightly from previous years. The level of anti social behaviour remains low and we did not take any legal enforcement action during the year. This good partnership working between HHP, Police Scotland and the Comhairle continued focusing on a preventative approach. Partnership working is very important to us and we work through the Community Planning Partnership and other multi-agency partnerships including Domestic Abuse Forum and Poverty Action Group to deliver good outcomes for our tenants and communities.
Tenant Participation Tenant Participation activity has focused on developing links with interested tenants across the islands and supporting existing tenant groups and encouraging new ones. The Western Isles Housing Association Communities forum is working to establish itself as a focus for participation across the islands supported by our partnership with TPAS. We aim to provide a variety of means of participation which is particularly important in a large geographic area such as the Outer Hebrides. We have a high number of small schemes consisting of less than 20 houses which makes participation challenging. Annual events were again held in Stornoway, Balivanich, and Castlebay during the year and these were viewed very positively by those attending. We sought to reach out in Uist through representation at many of the local summer events. We have been supported by partners for which we are grateful.
17 | P a g e OPERATIONAL REVIEW
Planned & Cyclical Maintenance The 5 year planned maintenance programme continued to protect homes and the wider environment. As in previous years the large amount of fencing within housing areas poses a challenge and work to these has been limited as priority is given to the fabric of the houses themselves. However, we have now commenced a programme of environmental works through our Investment Programme. Cyclical maintenance programmes were completed during the year including ensuring that gas, air source and oil heating systems were serviced within a 12 month period. Servicing of fire alarms, stair lighting, door entry systems and stairlifts was also carried out.
Investment Programme This was the third year of our 4 year framework contract and £3m was invested in tenant’s homes delivering the following improvements during 2017/18: Heating Systems 172 Kitchens: 116 Bathrooms: 34 Windows: 91 Roughcasting: 6 Roofing: 15 Environmental/Fencing Work 60 Insulation works 103 (room in roof)
Alleviating fuel poverty remains a key priority and this is demonstrated by our investment in new heating systems. We installed 44 Air Source Heat Pumps in off-gas areas which deliver a good affordable solution for our tenants. However, we also examined other heating options and installed a further 42 infra-red heating systems primarily in one bedroom properties during the year. These are being evaluated to ascertain tenant’s experiences and whether they will meet EEESH requirements. They are currently assessed as exemptions.
Aids & Adaptations We were awarded £246K of funding from the Scottish Government which delivered 233 different measures benefiting 102 tenants with health and mobility problems. We worked closely with the Occupational Therapy Service in assessing need and determining priorities and waiting time was kept to a minimum for those requiring assistance.
Fuel Poverty & EESSH Levels of fuel poverty in the Outer Hebrides are the highest in the UK along with those in Orkney and we remain committed to doing all that we can to address this. As noted previously we invest heavily in tenants homes to improve energy efficiency particularly through replacing solid fuel heating systems with Air Source Heating and installing new gas combi boilers where gas supply is available.
18 | P a g e We established a partnership with Citrus to provide impartial advice and assistance to tenants on switching energy suppliers. On the wider scale we worked with partners to establish an Energy Supply Company (ESCO) which was launched in February 2018. This company, Hebrides Energy, has partnered with Our Power to supply electricity. Work continued with other Highland Housing Associations and Councils on lobbying MSPS, the Government, OFGEM and SSE on prices within the Highlands & Islands which are the highest in the UK. Most recently we have made strong representations to the Scottish Governments on their fuel poverty consultation and stressing our concerns at the proposed new definition.
FINANCIAL REVIEW
Comprehensive Income The turnover for the year to 31 March 2018 was £11.194 million (2017: £9.989m) against operating costs of £8.590 million (2017: £6.792m). Operating costs for the year included £0.371 million (2017: £0.332m) of capital investment written off against expenditure and £1.086M of construction costs on LIFT properties. The main source of income was from rental income of £8.423 million (2017: £8.400m) with £0.930 million (2017: £0.886m) received in grant from The Scottish Government. Turnover on other activities included factoring, reflecting the requirements of the Property Factors Act 2011. There were 8 LIFT properties sold during the year (2017: none). The operating surplus on Letting Activities was £2.639 million, 32% of Net Rental Income (2017: £3.228 million, 38% of Net Rental Income). Funds are being transferred into designated reserves for: a) Future Repairs and Renewals on new build properties; and b) Funding costs for removing asbestos from transferred properties which may be incurred as a result of the investment programme.
Financial Position HHP’s Financial Position is shown on Page 29. The key factors affecting the balance sheet are: a) The value of housing properties under construction has increased as a result of the increase in the Partnership’s development plan; b) The addition of 12 new units for rent funded largely from Affordable Housing Supply Programme (AHSP) Grant from the Scottish Government; c) Stock increased to reflect the Work in Progress on the Mackenzie Avenue LIFT scheme; and d) Increase in creditors less than one year due to the increased retained Right To Buy (RTB) receipts as the RTB scheme closes and increased Trade Payables due to high value development invoices.
19 | P a g e Cash Flow The Cash Flow is shown on page 30. The net change in cash equivalents was £2.978 million (2017: £1.706m). The principal cash outflows were operating, development costs and investment in assets with cash inflow bolstered by RTB receipts and RHI Income.
Current Liquidity At 31 March 2018 HHP had cash and short-term deposits of £10.209 million (2017: £7.231m). It is not anticipated that there will be a requirement to draw down funds during 2018/19.
Capital Structure & Treasury Management Policy HHP’s activities are funded on the basis of a Business Plan, which is updated annually. The main elements of HHP’s long term funding are a loan facility arranged with the Royal Bank of Scotland (RBS) and provided by The Scottish Government. The RBS loan facility allows HHP to borrow up to £15 million. In broad terms, the current Business Plan assumes that borrowing will increase each year until the maximum of £15 million is reached in 2021 reflecting the significant investment and development programme in the first ten years of the plan. Debt is progressively paid off in subsequent years and is projected to be fully paid off by 2036. The Board receives updates each quarter which detail the debt, cash and interest received. All proposed changes to banking arrangements and bank signatories are approved by the Board. The Treasury Management Policy was approved in January 2012. The Treasury Management Policy sets down the framework for investing and managing cash, raising loans, interest rate management and the use of financial derivatives by the Group. A key objective of the Policy is to ensure that the Partnership’s loan portfolio represents the optimum balance of risk in interest rate, loan maturity and fixed rate exposure.
PLANS FOR THE FUTURE
HHP plans to invest £19.3 million over the next 5 years ensuring the Scottish Housing Quality Standard is maintained in all its properties. £17.849 million of private finance has been earmarked for the new build projects due for completion in the next 5 years. There has been a significant increase in the size of the Development Programme as a result of increased grant monies being made available by Scottish Government to Local Authorities as part of the More Homes Scotland programme.
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INDEPENDENT AUDITORS REPORT
Opinion We have audited the financial statements of Hebridean Housing Partnership (the ‘Partnership’) for the year ended 31 March 2018 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Reserves, the Cashflow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: • give a true and fair view of the state of the Partnership’s affairs as at 31 March 2018 and of its income and expenditure for the year then ended; • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and • have been prepared in accordance with the Co-operative and Communities Benefit Societies Act 2014, the Housing (Scotland) Act 2010, the Determination of Accounting Requirements 2014.
Basis For Opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Partnership in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions Relating To Going Concern We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: • the Board of Managements' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or • the Board of Management have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Partnership’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
21 | P a g e Other Information The Board of Management are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Matters On Which We Are Required To Report By Exception In the light of the knowledge and understanding of the Partnership and its environment obtained in the course of the audit, we have not identified material misstatements in the Board of Managements' Report. We have nothing to report in respect of the following matters where The Co- operative and Community Benefit Societies Act 2014 requires us to report to you if, in our opinion: • The information given in the Report of the Board of Management is inconsistent with the Financial Statements; • Proper books of accounts have not been kept by the Partnership in accordance with the requirements of the legislation; • A satisfactory system of control over transactions has not been maintained by the Partnership in accordance with the requirement of the legislation; • The financial statements are not in agreement with the books of accounts; or • We have not received all the information and explanations necessary for the purposes of our audit. We have nothing to report in respect of these matters.
Responsibilities Of The Board Of Management As explained more fully in the Boards' Responsibilities Statement set out on page 14 the Board of Management are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Board of Management determine is necessary to enable the
22 | P a g e preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Board of Management are responsible for assessing the Partnership’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Management either intend to liquidate the Partnership or to cease operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities For The Audit Of The Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. This report is made solely to the Partnership’s members, as a body, in accordance with the Co-operative and Communities Benefit Societies Act 2014. Our audit work has been undertaken so that we might state to the Partnership’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Partnership and the Partnership’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Wylie & Bisset LLP Chartered Accountants Statutory Auditor Glasgow Date: 27 June 2018
23 | P a g e REPORT BY THE AUDITORS TO THE MEMBERS OF HEBRIDEAN HOUSING PARTNERSHIP LIMITED ON CORPORATE GOVERNANCE MATTERS
Corporate Governance In addition to our audit of the Financial Statements, we have reviewed your statement on page 14 concerns the Partnership’s compliance with the information required by the Regulatory Standards (for systemically important RSLs) in respect of internal financial controls contained within the publication “Our Regulatory Framework” and associated Regulatory Advisory Notes which are issued by the Scottish Housing Regulator.
Basis Of Opinion We carried out our review having regard to the requirements to corporate governance matters within Bulletin 2006/5 issued by the Financial Reporting Council. The Bulletin does not require us to review the effectiveness of the Partnership’s procedures for ensuring compliance with the guidance notes, nor to investigate the appropriateness of the reason given for non-compliance.
Opinion In our opinion the Statement on Internal Financial Control on page 14 has provided the disclosures required by the relevant Regulatory Standards (for systemically important RSLs) within the publication “Our Regulatory Framework” and associated Regulatory Advisory Notes issued by the Scottish Housing Regulator in respect of internal financial controls and is consistent with the information which came to our attention as the result of our audit work on the Financial Statements. Through enquiry of certain members of the Board and Officers of the Partnership and examination of relevant documents, we have satisfied ourselves that the Board’s Statement on Internal Financial Control appropriately reflects the Partnership’s compliance with the information required by the relevant Regulatory Standards (for systemically important RSLs) in respect of internal financial controls contained within the publication “Our Regulatory Framework” and associated Regulatory Advisory Notes issued by the Scottish Housing Regulator in respect of internal financial controls.
Wylie & Bisset LLP Chartered Accountants Statutory Auditors Glasgow Date: 27 June 2018
24 | P a g e 25 | P a g e FINANCIAL STATEMENTS
26 | P a g e
STATEMENT OF COMPREHENSIVE INCOME AS AT YEAR 31 MARCH 2018
31 March 2018 31 March 2017
£ £
Notes
Turnover 3 11,194,205 9,989,189
Operating expenditure 3 (8,590,346) (6,792,497)
Operating surplus 3 2,603,859 3,196,692
Loss on disposal of property, plant & equipment (173,603) (218,318)
Interest receivable 6 15,571 9,568
Interest payable and financing costs 7 (367,925) (354,611)
Surplus before tax 2,077,902 2,633,330
Actuarial gain/(loss) in respect of pension scheme 22 2,425,000 (1,502,000)
Total comprehensive income for the year 4,502,902 1,131,330
The results for the year relate wholly to continuing activities. These financial statements were approved by the Board on 27th June 2018 and were signed on its behalf by:
Norman Macleod Dena Macleod Calum Mackay Chair Secretary Board Member The notes on pages 32 to 54 form part of these financial statements
27 | P a g e
STATEMENT OF CHANGES IN RESERVE AS AT YEAR 31 MARCH 2018
Share Unrestricted Total Capital Fund Reserves Current Year £ £ £ Balance at 1 April 2017 197 26,127,291 26,127,488 Movement in Share Capital 6 6 Surplus from statement of comprehensive income 4,502,902 4,502,902 Balance at 31 March 2018 203 30,630,193 30,630,396
Share Unrestricted Total Capital Fund Reserves Prior Year £ £ £ Balance at 1 April 2016 196 24,995,961 24,996,157 Movement in Share Capital 1 1 Surplus from statement of comprehensive income 1,131,330 1,131,330 Balance at 31 March 2017 197 26,127,291 26,127,488
The notes on pages 32 to 54 form part of these financial statements
28 | P a g e
STATEMENT OF FINANCIAL POSITION AS AT YEAR 31 MARCH 2018
31 March 2018 31 March 2017 £ £
Notes
Fixed Assets
Tangible Assets-Social Housing 8 77,108,646 73,557,295
Tangible Assets-Property, plant & equipment 9 1,514,469 1,528,478
Investments 10 2 2
78,623,117 75,085,775
Current Assets Stock 241,633 388,884
Trade and other debtors 11 1,106,305 1,422,744
Investments 6,164,763 4,506,628
Cash and cash equivalents 4,044,434 2,724,142
11,557,135 9,042,398
Less: Creditors amounts falling due within one year 12 (3,849,683) (2,491,833)
Net current assets 7,707,452 6,550,565
Total assets less current liabilities 86,330,569 81,636,340
Creditors: amounts falling due after more than one
year 13 (10,529,203) (10,583,000)
Deferred Capital Grants 14 (44,034,970) (41,687,852)
Pension Liability 15 (1,136,000) (3,238,000)
Provisions for liabilities 15 - - Net Assets 30,630,396 26,127,488
Reserves
Share Capital 16 203 197
Income & Expenditure reserve 30,630,193 26,127,291
30,630,396 26,127,488
These financial statements were approved by the Board on 27th June 2018 and were signed on its behalf by:
Norman Calum Macleod Dena Macleod Mackay
Chair Secretary Board Member
The notes on pages 32 to 54 form part of these financial statements.
29 | P a g e STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2018
31 March 2018 31 March 2017 £ £
Note Net Cash inflow from operating activities 1 3,739,210 4,995,004
Cashflow from investing activities
Purchase of tangible assets (4,759,095) (5,956,427) Proceeds from sale of tangible fixed assets 1,236,582 805,033 Grants received 3,130,235 2,127,425 Interest received 15,571 9,568
Acquistion of Shares -
Cashflow from financing activities
Interest paid (241,543) (258,407) Repayments of borrowings (142,533) (15,595) Net change in cash equivalents 2,978,427 1,706,600
Cash and cash equivalents at the beginning of the year 7,230,770 5,524,170 Cash and cash equivalents at the end of the year 10,209,197 7,230,770
2,978,427 1,706,600
The notes on pages 32 to 54 form part of these financial statements.
30 | P a g e NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2018
Cashflow from Operating Activities
2018 2017 £ £ Surplus for the year 2,603,859 3,196,692
Adjustments for non-cash items: Depreciation of tangible fixed assets 2,704,817 2,521,583 Amortisation of Capital Reserve - - Decrease/(increase) in stock (226,558) (351,433) Decrease/(increase) in trade and other debtors 316,438 (63,669) Increase/(decrease) in trade and other creditors 452,318 1,948,175 Pension costs less contributions payable 236,000 112,000 Carrying amount of tangible fixed asset disposed (847,691) (949,674)
Adjustments for investing or financing activities: Proceeds from the sale of tangible fixed assets (173,603) (218,318) Government grants utlised in the year (1,452,751) (1,296,556) Interest payable 126,382 96,205 Interest receivable 3,739,210 4,995,004
31 | P a g e NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018
NOTE 1 - ACCOUNTING POLICIES The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the Financial Statements, except where noted below. Base Of Accounting The Financial Statements of the Partnership are prepared in accordance with FRS 102 as issued by the Financial Reporting Council and comply with the requirements of the Co-operative and Community Benefit Societies Act 2014, Part 6 of the Housing (Scotland) Act 2010, the Determination of Accounting Requirements 2014 issued by the Scottish Housing Regulator and the Statement of Recommended Practice (SORP) for social housing providers issued in 2014. The financial statements have been prepared on the historical cost basis, except for the revaluation of certain properties and financial instruments. The principal accounting policies that have been applied consistently to all periods presented in these financial statements are set out below. The preparation of financial statements in conformity with FRS102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the accounting policies selected for use by the Partnership. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 3. Use of available information and application of judgement are inherent in the formation of estimates. Actual outcomes in the future could differ from such estimates. Hebridean Housing Partnership Ltd is a public benefit entity (PBE). Preparation Of Consolidated Financial Statements The Financial Statements contain information about Hebridean Housing Partnership as an individual company and do not contain consolidated financial information as the parent of a group. The Partnership has taken the option not to prepare consolidated Financial Statements due to the immateriality of the results of its subsidiary, HHP Community Housing Limited as detailed in Note 10. Turnover Turnover, which is stated net of Value Added Tax, represents income receivable from lettings and service charges, fees receivable, revenue grants and other income. Grant Income Grant Income received is matched with the expenditure to which it relates. Social Housing Grant received as a contribution towards the capital cost of a housing development is recognised in line with the accrual model. The accrual model results in the grant being recognised over the expected useful life of the housing property structure and its individual components. Where grant is paid as a contribution towards revenue expenditure, it is included in turnover.
32 | P a g e Deposit And Liquid Resources Cash, for the purpose of the cash flow statement comprises cash in hand and deposits repayable on demand, less overdrafts repayable on demand. Liquid resources are current asset investments that are disposable without curtailing or disrupting the business and are readily convertible into known amounts of cash at, or close to, their carrying value. Pension Costs The Partnership participates in the Highland Superannuation Scheme and contributions to the pension scheme are calculated as a percentage of pensionable salaries of the employees, determined in accordance with actuarial advice. The actual pension cost is charged to the income and expenditure account based on contributions to the fund. In accordance with FRS102 the future payments in respect of the past service deficit plan have been discounted and recognised as a provision within the financial statements. Housing Properties Housing properties are stated at cost less accumulated depreciation. The cost of properties is their purchase price together with capitalised repairs. Housing properties in the course of construction are stated at cost and are not depreciated. Housing properties are transferred to completed properties when they are ready for letting and are stated at cost. The development cost of housing properties includes:- 1. Cost of acquiring land and buildings; and 2. Development expenditure including administration costs Where it is considered that there has been any impairment in value this is provided for accordingly. Expenditure on schemes that are subsequently aborted is written off in the year in which it is recognised that the schemes will not be developed to completion. Improvements To Housing Properties The Partnership capitalises repairs and improvement expenditure on its housing properties which result in an enhancement of the economic benefit of the asset. Impairment Reviews for any impairment of housing properties are carried out on an annual basis where the estimated remaining economic life of those properties exceeds 50 years. Impairment is recognised where the carrying value of an income generating unit exceeds the higher of its net realisable value or its value in use. Value in use represents the net present value of expected future cash flows expected from the continued use of these assets. Any impairment of assets would be recognised in the Statement of Comprehensive Income. The Board took the decision in the year to dispose of properties at Cnoc Mor in Lewis and Braehead in South Uist. Regulatory consent has been obtained along with that of our funder. No Impairment has been reflected on these units given their current carrying value.
33 | P a g e Shared Ownership Shared ownership properties are split proportionately between current and fixed assets based on the first tranche proportion. First tranche proportions will be accounted for as current assets and the related sales proceeds shown in turnover; and The remaining element of the share ownership property will be accounted for as a fixed asset and any subsequent sale will be treated as a part disposal of a fixed asset. Commercial Properties Commercial Properties are valued at existing use value. Provisions The Partnership only provide for contractual liabilities that exist at the balance sheet date. Taxation Income and capital gains are generally exempt from tax if applies for charitable purposes. Depreciation Depreciation is charged on a straight-line basis to write off the cost of each asset, less any estimated residual value, over its expected useful life, as set out below. Assets are depreciated in the year of acquisition, from the date of their acquisition, and in the year of disposal, up to the date of disposal. Land is not depreciated. Housing Properties & Offices All of the major components comprised within the Partnership’s housing properties and offices are treated as separable assets and their costs (after the deduction of any related social housing grant) are depreciated by reference to the expected useful life of each component, on the following basis: Years Roofs 50 Kitchens 20 Bathrooms 30 Showers 10 Heating Boilers 15 Heating Systems 20 Window & Doors 25 Other External Components 15 Structure 60
34 | P a g e
Other Fixed Assets All other Fixed Assets are depreciated by reference to the following expected useful lives: Years Furniture, Fittings and Office Equipment 5 Computer Hardware and Software 4 Sale Of Housing Accommodation Properties are disposed of under the appropriate legislation and guidance. All costs and grants relating to the share of property sold are removed from the Financial Statements at the date of sale. Any grants received that cannot be repaid from the proceeds of sale are abated and the grant removed from the Financial Statements. Capitalisation Of Development Overheads Staff costs that are directly attributable to bringing housing properties into working condition for their intended use are capitalised. Value Added Tax The Partnership is registered for VAT. A large proportion of its income, including rental receipts, is exempt for VAT purposes, giving rise to a partial exemption calculation. Expenditure with recoverable VAT is shown net of VAT and expenditure with irrecoverable VAT is shown inclusive of VAT. VAT on refurbishment works expenditure included in the development works agreement with Comhairle Nan Eilean Siar is fully recoverable. Expenditure on these works is shown net of VAT. Bad & Doubtful Debts Provision is made against rent arrears for current and former tenants as well as other miscellaneous debts to the extent that they are considered potentially irrecoverable. Leased Assets Rentals payable under operating leases are charged to the income and expenditure account on a straight line basis over the lease term. Designated Reserves Designated reserves are unrestricted reserves earmarked by Directors for particular purposes. Financial Instruments Loans provided to HHP Community Housing Limited are classed as basic under the requirements of FRS102, and are measured at amortised cost. In the case of payment arrangements that exist with customers, these are deemed to constitute financing transactions and are measured at the present value of the future payments discounted at a market rate of interest applicable to similar debt instruments.
35 | P a g e NOTE 2 – CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS In preparing the financial statements, management is required to make estimates and assumptions which affect reported income, expenses, assets, liabilities and disclosure of contingent assets and liabilities. Use of available information and application of judgement are inherent in the formation of estimates, together with past experience and expectations of future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates.
36 | P a g e NOTE 3 – TURNOVER, OPERATING COSTS AND OPERATING SURPLUS
2018 2017 Operating Operating Operating Operating Operating Operating
Turnover Costs Surplus Turnover Costs Surplus £ £ £ £ £ £ Income and Expenditure from Lettings Social Lettings (Note 4) 10,069,915 (7,430,707) 2,639,208 9,964,555 (6,736,206) 3,228,349 Other Activities (Note 5) 1,124,290 (1,159,639) (35,349) 24,633 (56,291) (31,658) TOTAL 11,194,205 (8,590,346) 2,603,859 9,989,189 (6,792,497) 3,196,692
37 | P a g e NOTE 4 – PARTICULARS OF TURNOVER, OPERATING COSTS AND OPERATING SURPLUS FROM SOCIAL LETTING ACTIVITIES
General Needs Supported Shared
Housing Accommodation Ownership Other Total 2017 £ £ £ £ £ £ Income from rent and service charges
Rent receivable net of service charges 8,299,303 73,107 3,506 - 8,375,916 8,345,730 Service charges 41,613 3,994 2,429 - 48,036 54,410 Gross Income from rents and service charges 8,340,916 77,101 5,935 - 8,423,952 8,400,139 Less voids (93,629) - - - (93,629) (91,570) Net Income from rents and service charges 8,247,287 77,101 5,935 - 8,330,323 8,308,570 Grants from Scottish Ministers ------Release of deferred capital grant 1,249,903 - - - 1,249,903 1,209,599
Other Revenue Grants 489,690 - - - 489,690 446,387 Total Turnover from social letting activities 9,986,880 77,101 5,935 - 10,069,916 9,964,555 - Expenditure - Management and Maintenance Administration costs 2,153,588 24,186 3,023 - 2,180,797 1,813,275 Service charges ------Planned and Cyclical Maintenance including major repairs 1,096,793 598 - - 1,097,391 987,986
Reactive Maintenance 1,360,625 8,155 589 - 1,369,369 1,388,299 Bad Debts-rents and service charges 78,333 - - - 78,333 25,063 Depreciation of social housing 2,702,691 - 2,126 - 2,704,817 2,521,583 Impairment of social housing - Operating costs for social letting activities 7,392,030 32,939 5,738 - 7,430,707 6,736,206 - Operating surplus on letting activities for 31 March 2018 2,594,850 44,162 197 - 2,639,209 3,228,349
Operating surplus on letting activities for 31 March 2017 3,192,004 35,285 1,060 - 3,228,349
38 | P a g e NOTE 5 – PARTICULAR OF TURNOVER, OPERATING COSTS AND OPERATING SURPLUS FROM OTHER ACTIVITIES
Grants from Other Revenue Other Total Other Operating Scottish Ministers Grants Income Turnover Operating Costs Surplus/ Deficit 2018 2017 2018 2017 2018 2017 £ £ £ £ £ £ £ £ £
Factoring - - 4,681 4,681 3,089 4,605 3,096 76 (7)
Development & construction of - - 27,599 27,599 14,897 61,254 44,496 (33,655) (29,599) Property Activities
Sale of Developments 504,981 - 580,650 1,085,631 - 1,085,631 - - -
Management Services - - 6,379 6,379 6,648 8,149 8,699 (1,770) (2,051)
Total from other activites 2018 504,981 - 619,309 1,124,290 1,159,639 (35,349)
Total for other activities 2017 - - 24,633 24,633 56,291 (31,658)
39 | P a g e NOTE 6 - INTEREST RECEIVABLE AND OTHER INCOME
Interest Receivable and Other Income 2018 2017 £ £ Interest receivable on deposits 15,330 9,330 Interest receivable on loan to subsidiary 241 237 15,571 9,568
NOTE 7 – INTEREST PAYABLE AND SIMILAR CHARGES
Interest Payable and Similar Charges 2018 2017 £ £ Interest Payable 212,023 213,051 Other Financing costs 68,902 84,560 Net Cost on pension 87,000 57,000 367,925 354,611
Other financing costs include commitment, non-utilisation fees, the amortisation of transaction costs on the funding arrangements.
40 | P a g e NOTE 8 – TANGIBLE FIXED ASSETS SOCIAL HOUSING Tangible Fixed Assets
Housing Housing Shared SOCIAL HOUSING Properties Properties Ownership held for under held for Total letting construction letting £ £ £ £ Current Year Cost At start of the year 88,562,082 2,324,267 127,643 91,013,992 Additions during the year 2,979,366 4,066,305 - 7,045,671 Transfers in year 2,030,518 (2,030,518) - - Disposals (1,222,350) (6,541) - (1,228,891) At end of year 92,349,616 4,353,513 127,643 96,830,772
Depreciation At start of year (17,384,363) - (72,334) (17,456,697) Provided in year (2,644,503) - (2,126) (2,646,629) Eliminated on Disposal 381,200 - - 381,200 At end of year (19,647,666) - (74,460) (19,722,126)
Net Book Value At end of year 72,701,950 4,353,513 53,183 77,108,646
Prior Year At start of the year 83,170,147 2,165,267 127,643 85,463,057 Additions during the year 3,632,966 3,163,540 - 6,796,506 Transfers in year 3,004,540 (3,004,540) - - Disposals (1,245,571) - - (1,245,571) At end of year 88,562,082 2,324,267 127,643 91,013,992
Depreciation At start of year (15,305,835) - (70,208) (15,376,043) Provided in year (2,470,430) - (2,126) (2,472,556) Eliminated on Disposal 391,903 - - 391,903 At end of year (17,384,363) - (72,334) (17,456,697)
Net Book Value At end of year 71,177,719 2,324,267 55,309 73,557,295
Development administration costs capitalised amounted to £73,960 (2017:£58,077) for which Social Housing Grants amounting to £nil (2017:£nil) were received in the year. The proceeds of property disposals in the year were £655,932 (2017: £733,130). These units cost £1,236,142 (2017: £1,343,350) and had a net book value of £854,942 (2017:£951,447). HAG of £89,410 was repaid in the year with respect to these disposals and £148,149 (2017: £134,537) remained repayable at the balance sheet date.
41 | P a g e
The cost of new components capitalised in the year was £5,009,884 (2017: £3,900,126) Components with a cost of £246,516 (2017: £264,957), HAG of £111,150 (2017: £211,367) and accumulated depreciation of £145,645 (2017: £133,673) were disposed of in the year.
NOTE 9 – TANGIBLE FIXED ASSETS – PROPERTY, PLANT & EQUIPMENT TANGIBLE FIXED ASSETS Heritable Commerical Office Computer Other Total Property, Plant & Equipment Property Property Equipment Equipment Equipment £ £ £ £ £ £ Current Year Cost At start of the year 683,060 939,280 81,515 295,160 104,967 2,103,982 Additions during the year 241,134 - - 28,178 470 269,782 Transfers in year (233,028) - 10,325 - (10,325) (233,028) Disposals ------At end of year 691,166 939,280 91,840 323,338 95,112 2,140,736
Depreciation At start of year - (144,052) (79,344) (266,534) (85,574) (575,504) Transfers in year ------Provided in year - (22,499) (5,092) (19,040) (4,133) (50,764) Eliminated on Disposal - - - At end of year - (166,551) (84,436) (285,574) (89,707) (626,268)
Net Book Value At end of year 691,166 772,729 7,404 37,764 5,405 1,514,468
Prior Year At start of the year 779,066 939,280 81,515 284,443 102,028 2,186,332 Additions during the year - - - 10,717 2,939 13,656 Disposals (96,006) - - - - (96,006) At end of year 683,060 939,280 81,515 295,160 104,967 2,103,982
Depreciation At start of year - (121,554) (74,662) (249,197) (81,065) (526,478) Provided in year - (22,498) (5,649) (22,661) (4,513) (55,321) Eliminated on Disposal - - 967 5,324 4 6,295 At end of year - (144,052) (79,344) (266,534) (85,574) (575,504)
Net Book Value At end of year 683,060 795,228 2,171 28,626 19,393 1,528,478
42 | P a g e
NOTE 10 – INVESTMENTS
Investments 2018 2017 £ £ Investment in subsidiary undertaking 1 1 Investment in Hebrides Energy CIC 1 1 2 2
Activity Registered Shareholding HHP Community Housing Ltd Dormant Scotland 100% Hebrides Energy Offer competitive electricity tariffs Scotland 11.1%
NOTE 11 – TRADE & OTHER RECEIVABLES Trade and other receivables 2018 2017 £ £ Rental Arrears 137,108 132,907 Less: provision for bad debts (78,663) (70,420) 58,445 62,487 Amounts owed by subsidary undertaking (due within 1 year) 16,307 16,053 Other debtors 503,373 596,149 Prepayments and accrued income 338,069 535,224 Other debtors (due in more than 1 year) 190,111 212,831 Total 1,106,305 1,422,744
NOTE 12 – CREDITORS AMOUNTS FALLING DUE WITHIN ONE YEAR Creditors-Amounts falling due within one year 2018 2017 £ £ Bank loans and overdrafts - 88,736 Trade payables 837,361 32,523 Contract retentions 174,908 152,820 Accruals and deferred income 1,174,413 1,294,306 Rent in advance 60,509 55,711 HAG creditor 105,911 43,710 HAG Repayable 148,149 134,537 RTB Receipts Repayable on demand 1,348,433 689,489 Total 3,849,683 2,491,833
Outstanding retentions will be financed initially from cash balances.
43 | P a g e NOTE 13 – CREDITORS – AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR Creditors-Amounts falling due after more than one year 2018 2017 £ £ Bank term loans 4,946,203 5,000,000 RTB Receipts due to the Scottish Government 5,583,000 5,583,000 Total 10,529,203 10,583,000
Bank Term loans are secured by specfic charges on the Partnership's properties and are repayable at varying rates of interest.
The above creditors are due are follows: £ £ Between one and two years - - Between two and five years - - In five years or more 10,529,203 10,583,000 10,529,203 10,583,000
At the year end the Partnership had drawn down £5.88 million on the lending facility. A committed facility of £15 million was available from the Royal Bank of Scotland along with an uncommitted overdraft facility of £0.250 million. Loan arrangement fees incurred in setting up this facility are included in debtors and are being amortised over the period of the loan drawdown. Security over the housing properties has been granted to the Royal Bank for the period of the lending facility. Section 107 consent has been granted.
44 | P a g e NOTE 14 – DEFFERED CAPITAL GRANTS Deferred Captial Grants
Housing Housing Shared Properties Properties Ownership Property held for under held for Plant & Total letting construction letting Equipment £ £ £ £ £ Current Year Cost At start of the year (39,173,175) (1,818,175) (53,555) (642,946) (41,687,852) Additions during the year (1,149,798) (2,905,235) (225,000) (4,280,033) Disposals during the year 480,164 480,164 Transfers in year (1,282,690) 1,282,690 205,337 205,337 Amortised in year 1,244,578 2,059 777 1,247,414 At end of year (39,880,921) (3,440,720) (51,497) (661,832) (44,034,970)
Prior Year At start of the year (38,761,174) (1,610,866) (55,614) (734,690) (41,162,344) Additions during the year (2,036,459) - - (2,036,459) Disposals during the year 214,395 - - - 214,395 Transfers in year (1,829,150) 1,829,150 - 90,966 90,966 Amortised in year 1,202,754 - 2,059 777 1,205,590 At end of year (39,173,175) (1,818,175) (53,555) (642,946) (41,687,852)
NOTE 15 – PROVISIONS FOR LIABILITIES & CHARGES Provisions for Liabilities and Charges 2018 2017 £ £ At 1 April 2017 - 2,524,919 Created in Year - - Utilised - (2,524,919)
At 31 March 2018 - -
This provision represented the best estimate of the costs of contracted works for the repair of managed properties. This agreement was part of the development agreement and as work progressed the provision was fully utilised in 2017.
45 | P a g e
Pension Fund 2018 2017 £ £ At 1 April 2017 3,238,000 1,567,000 Created in Year (2,102,000) 1,671,000 Utilised
At 31 March 2018 1,136,000 3,238,000
NOTE 16 – SHARE CAPITAL
Share Capital
2018 2017 £ £ Shares of £1 each issued and fully paid At 1 April 2017 197 196 issued during period 6 1 At 31 March 2018 203 197
Shares were held by the following Board members during the year: Norman Macleod, Calum Mackay, Iain Macmillan, Daniel Coyle, Alasdair Mackenzie, Kevin Paterson, and Mairi Bremner.
46 | P a g e NOTE 17 – KEY MANAGEMENT EMOLUMENTS
OFFICER'S EMOLUMENTS 2018 2017 £ £ Senior Officers are defined as the Chief Executive, the Director of Finance & Corporate Services and Director of Operations
Aggregate emoluments payable to Directors exceeding £60,000 214,777 148,807 (including pension contributions and benefits in kind)
Emoluments payable to the highest paid officer 79,677 70,206 (excluding pension contributions)
During the period the Directors' emoluments (excluding pension contributions) fell within the following band distributions:
More than £60,000 but not more than £70,000 - - More than £70,000 but not more than £80,000 1 1 More than £80,000 but not more than £100,000 - -
Pension contributions 14,820 13,058
The directors are members of the Highland Superannuation Fund and employer's contributions are paid on the same basis as other members of staff.
Total Expenses reimbursed in so far as not chargeable to UK Income Tax
47 | P a g e
NOTE 18 – EMPLOYEE INFORMATION The number of persons employed during the year was: 48 In the year to 31 March 2018 the average number of employees of the Partnership, including Executive Directors, was 45 (FTE), (2017 – 42 FTE).
EMPLOYEE INFORMATION
2018 2017
£ £ Staff costs (for the above persons)
Wages and Salaries 1,173,680 1,133,816
Social Security costs 110,828 103,768
Employers' pension costs 222,769 217,953
FRS102 Pension Adjustment (Note 22) 236,000 112,000
1,743,277 1,567,537
Staff costs capitalised (297,067) (368,667)
1,446,210 1,198,869
NOTE 19 – OPERATING SURPLUS
OPERATING SURPLUS
2018 2017
£ £
Operating surplus is stated after charging:
Depreciation 2,697,392 2,521,582
Amortised capital grants (1,247,414) (1,205,590) Repairs:cyclical, major, day to day 2,466,760 2,376,285
Auditor's remuneration
-in their capacity as auditors 13,530 13,530 -in respect of other services - -
48 | P a g e NOTE 20 – TAXATION The Partnership is a registered charity and is therefore exempt from Corporation Tax on its charitable activities. No corporation tax was due on the non-charitable activities in the year (2017: nil).
NOTE 21 – CAPITAL COMMITMENTS
CAPITAL COMMITMENTS
2018 2017
£ £
Capital expenditure which has been contracted for but has not been provided for in the financial statements 10,453,943 6,330,189
Capital expenditure which has been authorised by the Board but is not contracted 41,415,127 40,021,150
51,869,070 46,351,339
This is to be funded by: Funding from the Scottish Government 24,908,500 26,539,669
Private Finance 26,960,570 19,811,670
51,869,070 46,351,339
NOTE 22 – PENSIONS The Partnership participates in the Highland Superannuation Fund (HSF) which, as part of the Local Government Pension Scheme is a defined benefit statutory scheme based. From 1 April 2011 the scheme has operated the career average revalued earnings with 1/120th accrual benefit rate. Contributions are charged to the Income and Expenditure Account so as to spread the cost of pension over employees’ working lives. These contributions are determined by formal actuarial valuation which takes place every three years, the last valuation was to 31 March 2017. The main purpose of the valuation is to determine the financial position of the Scheme in order to determine the level of future contributions required so that the Scheme can meet its pension obligations as they fall due. The actuarial valuation assess whether the Scheme’s assets at the valuation date are likely to be sufficient to pay the pension benefits accrued by members as at the valuation date. Asset values are calculated by reference to market levels. Accrued pension benefits are valued by discounting expected future benefit payments using a discount rate calculated by reference to the expected future investment returns. During the accounting period, the Partnership paid contributions at a rate of 19.4% of pensionable salaries.
49 | P a g e As at the balance sheet date there were 50 active members of the Scheme employed by the Partnership. All new employees join the scheme and have the option to withdrawn after a short period if they so choose. The fund is administered by Highland Council in accordance with the Local Government Pension Scheme (Scotland) Regulations 1998 as amended. It is not possible in the normal course of events to identify the share of underlying assets and liabilities belonging to individual participating employers. As the Scheme is a multi-employer arrangement where the assets are co-mingled for investment purposes, benefits are paid from the total scheme assets, and the contribution rate for all employers is set by reference to the overall financial position of the scheme rather than by reference to individual employer experience. Accordingly, due to the nature of the Plan, the accounting charge for the period under FRS17 represents the employer contribution payable. The Scheme Actuary has prepared an Actuarial Report that provides an approximate update on the funding position of the scheme as at 31 March 2018. The funding update revealed an increase in the assets of the Scheme to £9.307 million and indicated a decrease in the shortfall of assets compared to liabilities to approximately £1.136 million. Since the contribution rates payable to the Scheme have been determined by reference to the last full actuarial valuation the following notes relate to the formal actuarial valuation as at 31 March 2017.
Employer Membership Statistics
Total Salaries/Pensions Average Age Number £000's 31-Mar-17 31-Mar-17 31-Mar-17 Actives 50 1095 50 Deferred Pensionsers 31 50 49 Pensioners 13 146 63
Investment Returns The return on the Fund in market value terms for the period to 31 March 2018 is estimated below based on actual Fund returns as provided by the Administering Authority and index returns where necessary. Details are below:
Actual returns from 1 April 2017 to 31 December 2017 9.20% Total returns from 1 April 2017 to 31 March 2018 5.40%
50 | P a g e Major Categories Of Plan Assets As A % Of Total Plan Assets The bid value of the Fund’s assets are estimated to be £1,849,000,000 based on information provided by the Administering Authority. Period Ended 31-Mar-18 31-Mar-17
Equities 68% 70% Bonds 16% 17% Property 13% 11% Cash 3% 2%
Financial Assumptions Period Ended 31-Mar-18 31-Mar-17
Pension increase Rate 2.40% 2.40% Salary increase Rate 3.40% 4.40% Discount Rate 2.70% 2.60%
Historic Mortality Period Ended Prospective Pensioners Pensioners CMI2012 model assuming current CMI2012 model assuming current rates of improvement have rates of improvement have peaked 31-Mar-18 peaked and will converge to a and will converge to a long term rate long term rate of 1.25% p.a. of 1.25% p.a. Commutation An allowance is included for future retirements to elect to take 50% of the maximum additional tax-free cash up to HMRC limits for pre-April 2009 service and 75% of the maximum tax-free cash for post-April 2009 service.
51 | P a g e Changes In Fair Value Of Plan Assets Defined Obligation & Net Liability For The Year Ended 31 March 2018 Assets Obligations Net Liability/ Period ended 31 March 2018 Asset £000's £000's £000's Fair Value of Plan Assets 8,865 - 8,865 Present Value of liabilitites - 12,070 (12,070) Present value of unfunded liabilities - 33 (33) Opening Position at 31 March 2017 8,865 12,103 (3,238) Service Cost - 465 (465) Net Interest Interest on income on plan assets 232 - 232 Interest cost on defined benefit obligation - 319 (319) Total Net interest 232 319 (87) Total defined benefit cost recoginised in P & L 232 784 (552)
Cashflows Plan Participants contributions 74 74 - Employers contributions 228 - 228 Contributions in respect of unfunded benefits 1 - 1 Benefits paid (158) (158) - Unfunded benefits paid (1) (1) - Expected closing position 9,241 12,802 (3,561) Remeasurements Changes in demographic assumptions - (36) 36 Changes in financial assumptions - (676) 676 Other experience - (1,647) 1,647 Return on assets excluding amounts in net interest 66 - 66 Total remeasurements recognised in Other Comprehensive 66 (2,359) 2,425 Income (OCI) Fair Value of plan assets 9,307 - 9,307 Present value of funded liabilities - 10,413 (10,413) Present value of unfunded liabilities - 30 (30) Closing position at 31 March 2018 9,307 10,443 (1,136)
52 | P a g e NOTE 23 – PROPERTY STOCK The number of units of accommodation owned by the Partnership was as follows:
Property Stock
The number of units of accommodation owed by the Partnership was as follows: Units in Units under Management Development 2018 2017 2018 2017
Unimproved New Build 359 347 79 74 Improved 1,778 1,831 - General Needs Housing 2,137 2,178 79 74
Shared Ownership Accommodation 3 3 - - Supported Housing Accommodation 24 12 - - Total Housing Stock 2,164 2,193 79 74
Other Property Garages 42 42 - Commerical 6 7 - - Heritable-Partnership's offices 3 2 - - Total Other Property 51 51 - -
NOTE 24 – REVENUE COMMITMENTS
Operating Leases 2018 2017
At 31 March 2018 the Partnership had outstanding commitments for £ £ future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Within one year 8,066 11,271 In the second to fifth year inclusive 6,721 18,449
14,787 29,720
53 | P a g e NOTE 25 – RELATED PARTY TRANSACTIONS Board Members During the period the tenancies held by tenant Board Members were held on normal commercial terms and they are not able to use their position to their advantage. The Partnership retains a register of Members’ interests. There are no interests in related parties requiring to be declared. Transactions entered into with members and rent arrear balances at 31 March are as follows: Rent Charges £21,205 Arrears £128 Councillors Any transactions with the Comhairle are made an arm’s length, on normal commercial terms and the Councillors cannot use their positions to their personal advantage. HHP Community Housing Ltd HHP Community Housing Ltd is a wholly owned subsidiary of Hebridean Housing Partnership, a company incorporated in Scotland. All of the directors are Board Members of HHP.
At the year end HHP Community Housing owed Hebridean Housing Partnership £16,307 (2017: £16,053) which is included in other debtors Note 11.
NOTE 26 – LEGISLATIVE PROVISIONS Hebridean Housing Partnership Limited (“HHP” or “The Partnership”) is registered under the Co-operative and Community Benefit Societies Act 2014 (previously known as the Industrial and Provident Societies Act 1965) and is a Housing Association registered with Scottish Housing Regulator (previously Communities Scotland) under the Housing (Scotland) Act 2010. HHP has charitable status and is registered with OSCR.
HHP is a registered society under the Co-operative and Community Benefit Societies Act 2014, Registered Number: 2644R(S),Registered Office: Creed Court, Gleann Seileach Business Park, Willowglen Road, STORNOWAY, Isle of Lewis HS1 2QP. It is a charity registered in Scotland, Charity Number:SCO35767, registered as Registered Social Landlord with the Scottish Housing Regulator, Registration Number:359 and registered as a Property Factor, Registration Number PF000183 Email: [email protected] Web: www.hebrideanhousing.co.uk Phone:0300 123 0773
54 | P a g e APPENDIX 2 Statement of Financial Position as at 31 March 2018
31 March 2018 31 March 2017 Non-accountant's guide £ £ Tangible Fixed Assets Tangible Assets-Social Housing 77,108,646 73,557,295 Houses we own Tangible Assets-Property, plant & equipment 1,514,469 1,528,478 Offices and equipment Message from the Chair Investments 2 2 Share in Subsidiary & ESCO 78,623,117 75,085,775 I am pleased to present the Annual Current Assets Report for the financial year 2017/18 and Stock 241,633 388,884 my first since I was appointed Chair of Trade and other debtors 1,106,305 1,422,744 Money owed to us Investments 6,164,763 4,506,628 Short term deposits HHP. Cash at bank and in hand 4,044,434 2,724,142 HHP have completed 12 new homes 11,557,135 9,042,398 Creditors: amounts falling due within one year (3,849,683) (2,491,833) Money we owe others available for social rent and 8 Shared Net current assets 7,707,452 6,550,565 Equity homes this year. Continued Investment in tenants homes resulted in Total assets less current liabilities 86,330,569 81,636,340 over £3 million being spent in 2017/18 on improvements including Creditors: amounts falling due after more What we owe on loans for building our than one year (10,529,203) (10,583,000) houses & money due to Scottish Government new bathrooms, heating systems and kitchens. Alleviating fuel Deferred Capital Grants (44,034,970) (41,687,852) Housing Grants received poverty continues to be a key priority and this is demonstrated by our Pension Liability (1,136,000) (3,238,000) investment in new heating systems with 172 new heating systems Provisions for liabilities − − Net Assets 30,630,396 26,127,488 being installed this year. HHP in conjunction with other Highland Housing Associations and Councils continue to lobby MSPs, the Government, OFGEM and SSE on energy prices within the Highlands & Capital and Reserves Share Capital 203 197 Number of members £1 shares Islands which are the highest in the UK. Income and Expenditure reserve 30,630,193 26,127,291 2017/18 saw a large allocation of development grant being awarded 30,630,396 26,127,488 to the Outer Hebrides and we continue to engage with senior politicians at the Comhairle to determine how HHP can best deliver the additional development requirements in the context of the Local Housing Strategy (LHS). At the end of 2017/18 there were 79 homes under construction. As Universal Credit continues to roll out it makes the collection of rent more challenging, yet for the eighth year running arrears have gone down. The timeous payment of rent by our tenants along with strong organisational teamwork has made this possible. Whilst operational performance has provided much to be optimistic about for the future, the population forecasts & weakening demand for housing across the most rural areas of our islands is a continuing concern and one which the Board is monitoring closely.
SUMMARY FINANCIAL STATEMENTS AND PERFORMANCE FOR 2017/18 Finally, I would like to thank my fellow Board Members and our staff for all their endeavours during 2017/18 and acknowledge the support of our key partners the Scottish Government and Comhairle Nan Eilean Siar. HHP is a registered society under the Co-operative and Community Benefit Societies Act 2014, Registered Number: 2644R(S),Registered Office: Creed Court, Gleann Seileach Business Park, Willowglen Road, STORNOWAY, Isle of Lewis HS1 2QP. It is a charity registered in Scotland, Charity Number:SCO35767, registered as Registered Norman MacLeod Social Landlord with the Scottish Housing Regulator, Registration Number:359 and registered as a Property Factor, Registration Number PF000183 Email: [email protected] Web: www.hebrideanhousing.co.uk HHP Chair Phone:0300 123 0773 Annual Return on the Charter (ARC) Financial Overview HHP submitted its fifth Annual Return on the Charter (ARC) in May 2018. How we have Statement of Comprehensive Income for the year ended 31 March 2018 performed in relation to the indicators will be published later in the year in a special report for tenants. A summary of some of the key indicators is detailed below with a comparison to 31 March 2018 31 March 2017 Non-accountant's guide
2015/16 and 2016/17 ARC data. £ £
Turnover 11,194,205 9,989,189 Income from rents and other activities
DETAIL ARC 2017/18 ARC 2016/17 ARC 2015/16 Operating Expenditure (8,590,346) (6,792,497) Cost of maintenance and management REPAIRS of properties and other activities Operating Surplus 2,603,859 3,196,692 Emergency repairs completed 1952 1983 2118 Loss on disposal of property, plant & equipment (173,603) (218,318) Non-emergency repairs completed 3381 3029 3577
ARREARS Interest receivable 15,571 9,568 Bank interest on deposit accounts Total arrear as a % of rent due 3.15% 3.46% 3.82% Interest payable and financing costs (367,925) (354,611) Interest on money borrowed Former tenant arrear written off £18,908 £28,222 £31,207 VOIDS Surplus before tax 2,077,902 2,633,330 22 20 11 Void at year end Actuarial (loss)/gain in respect of pension scheme 2,425,000 (1,502,000) Void for more than six months 7 3 2 Total comprehensive income for the year 4,502,902 1,131,330 Void loss 1.17% 0.85% 0.73% LETTINGS General needs 220 225 206 New applicants added to housing list 442 453 412 Number of applicants on list 583 586 578 DEVELOPMENT New build 12 22 25 GENERAL Rent increase 3.9% 3.2% 2.1%
Statement of Changes in Reserves for the year ended 31 March 2018
31 March 2018 31 March 2017 £ £
Unrestricted Fund Opening Balance 26,127,291 24,995,961 Surplus from statement of comprehensive income 4,502,902 1,131,330 Prior Year adjustment − − Unrestricted Fund Closing Balance 30,630,193 26,127,291 APPENDIX 3
Registered Number: SC379412 (Scotland)
HHP COMMUNITY HOUSING LIMITED
REPORT OF THE DIRECTORS AND
UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD 1 APRIL 2017 TO 31 MARCH 2018 HHP COMMUNITY HOUSING LIMITED CONTENTS OF THE FINANCIAL STATEMENTS FOR THE PERIOD 1 APRIL 2016 TO 31 MARCH 2017 ______
Page
Company Information 1
Report of the Directors 2
Financial Statements 4
Notes to the Financial Statements 6 HHP COMMUNITY HOUSING LIMITED FINANCIAL STATEMENTS FOR THE PERIOD 1 APRIL 2017 TO 31 MARCH 2018 ______
DIRECTORS: N M Macleod M Bremner A Mackenzie C Mackay
SECRETARY: C Mackay
REGISTERED OFFICE: Gleann Seileach Business Park Willowglen Road Stornoway Isle of Lewis HS1 2QP
REGISTERED NUMBER: SC379412 (Scotland)
1 HHP COMMUNITY HOUSING LIMITED FINANCIAL STATEMENTS FOR THE PERIOD 1 APRIL 2017 TO 31 MARCH 2018 ______The Directors present their report with the financial statements of the Company for the period 1 April 2017 to 31 March 2018.
PRINCIPAL ACTIVITY During the financial year the Company has not traded and has received no income and incurred no expenditure. Consequently, the Company has made neither a profit nor a loss.
INCORPORATION The Company was incorporated on 1 June 2010.
DIRECTORS The Directors who have held office during the year from 1 April 2017 to the date of this report are as follows: Directors Changes during the year Appointed Resigned David Blaney 1 June 2010 3 May 2017 Calum Mackay 13 September 2012 Mairi Bremner 27 June 2012 Alasdair Mackenzie 27 June 2012 Norman M Macleod 27 June 2012
All Directors who are eligible offer themselves for election at the forthcoming Annual General Meeting.
STATEMENT OF DIRECTORS
The Directors are responsible for preparing the Directors’ Report and the financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to:
2
HHP COMMUNITY HOUSING LIMITED FINANCIAL STATEMENTS FOR THE PERIOD 1 APRIL 2017 TO 31 MARCH 2018 ______
Select suitable accounting policies and then apply them consistently; Make judgements and accounting estimates that are reasonable and prudent; and Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose with reasonable accuracy at any time the financial positions of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.
ON BEHALF OF THE BOARD
Director:
26 June 2018
3 HHP COMMUNITY HOUSING LIMITED FINANCIAL STATEMENTS FOR THE PERIOD 1 APRIL 2017 TO 31 MARCH 2018 ______
INCOME & EXPENDITURE ACCOUNT
31 March 2018 31 March 2017 £ £ Notes Turnover - - Operating Costs - - Operating Surplus - - Surplus on sale of fixed assets -housing properties - - -other assets - -
Interest receivable and other income - - Interest payable and other charges (241) (237) Loss on ordinary activities, before transfer to Reserves (241) (237)
Tax on surplus on ordinary activities - - Deficit for the Year (241) (237) Revenue Reserve at 1 April 2017 (16,826) (16,589) Revenue Reserve at 31 March 2018 (17,067) (16,826)
4 HHP COMMUNITY HOUSING LIMITED FINANCIAL STATEMENTS FOR THE PERIOD 1 APRIL 2017 TO 31 MARCH 2018 ______
BALANCE SHEET
31 March 2018 31 March 2017 £ £ Notes
Current Assets Cash at bank and in hand 1 1 1 1 Creditors: amounts falling due within one year 2 (17,067) (16,826) Net current assets (17,066) (16,825) Total assets less current liabilities (17,066) (16,825)
Capital and Reserves Called up Share Capital 3 1 1 Revenue Reserve 4 (17,067) (16,826) SHAREHOLDERS FUNDS (17,066) (16,825)
5 HHP COMMUNITY HOUSING LIMITED FINANCIAL STATEMENTS FOR THE PERIOD 1 APRIL 2017 TO 31 MARCH 2018 ______
AUDIT EXEMPTION STATEMENT The Company is entitled to exemption from audit under Section 480 of the Companies Act 2006 for the period ended 31 March 2018 relating to dormant companies.
The Members have not required the Company to obtain an audit of its financial statements for the period ended 31 March 2018 in accordance with Section 476 of the Companies Act 2006.
For the financial year ended 31 March 2018 the Company was entitled to exemption from audit under Section 480 Companies Act 2006 relating to dormant companies.
Directors’ responsibilities:
The members have not required the Company to obtain an audit of its financial statements for the year in question in accordance with Section 476 of the Companies Act 2006; and The Directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements. These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime. Approved by the Board and authorised for issue on 26 June 2017
Director
Company Registration No: SC379412
The notes form part of these financial statements.
6 HHP COMMUNITY HOUSING LIMITED FINANCIAL STATEMENTS FOR THE PERIOD 1 APRIL 2017 TO 31 MARCH 2018 ______
1. ACCOUNTING POLICIES
Accounting Convention These financial statements have been prepared in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102") and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company.
Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention.
The Company has not traded during the year ended 31 March 2018.
2. CREDITORS: Amounts falling due within one year 2018 2017 £ £
Intercompany Creditor 17,067 16,826
3. CALLED UP SHARE CAPITAL
Allotted, issued and fully paid: Number: Class: Nominal Value 2018 2017 £ £ 1 Ordinary £1 1 1
1 Ordinary share of £1 was allotted and fully paid for cash at par during the period
4. REVENUE RESERVE 2018 2017 £ £ Accumulated surplus at 1 April 2017 (16,826) (16,589) Loss for the year (241) (237)
Accumulated surplus at 31 March 2018 (17,067) (16,589)
7 ITEM NO 8
Making our house your home
SHR RETURNS 2017/18 Board 27 June 2018
Report by Director of Finance & Corporate Services
Purpose of Report
1.1 To present the Loan Portfolio return (2017/18) and five year plans (2018-2023) required by the Scottish Housing Regulator (SHR) for consideration and approval. Summary
2.1 The SHR require RSLs to submit three returns on an annual basis. The Loan Portfolio Return, the Audited Financial Statements and their five year plans. 2.2 The Audited Financial Statements cannot be loaded into the SHR portal until 1 August 2018 although they are being presented for approval to the Board in June. 2.3 The returns to be submitted to the Scottish Housing Regulator are at Appendix 1 & 2. Competence
3.1 Submission of the Loan Portfolio & Five Year Plan returns by the 30 June 2018 will ensure the Partnership’s regulatory requirements are met.
3.2 The Audited Financial Statements will be submitted when the portal opens on 1 August 2018. Recommendations
4.1 It is recommended that the Board approve for submission to the Scottish Housing Regulator: a) the Loan Portfolio Return for 2017/18 as at Appendix 1; b) the five year plan Return for 2018-2023 as at Appendix 2; c) the submission of the Audited Financial Statements as presented to the June Board.
APPENDIX 1 Loan Portfolio Return 2017/18 APPENDIX 2 Five Year Plans 2018 – 2023 (to follow) Background Papers None Writer of Report Donald Macleod Tel: 0300 123 0773
Jonathan Fairgrieve 5-Jun-18 Competence
Financial 5.1 The five year plan considers the resources the Partnership requires for 2018-23 in line with the assumptions in the 30 Year Business Plan which was approved at the March 2018 board meeting and subsequently submitted to our funders. 5.2 The five year plan has been set in accordance with current accounting standards. 5.3 The five year plan is expected to change significantly as the development programme progresses and land is acquired. 5.4 A revised plan will be required to be produced and submitted to our funder and regulator as acquisitions materialize beyond what is already assumed in the current plan.
Legal 6.1 The Partnership’s Rule 69 states that “The Partnership must keep proper books of account to cover its income, expenditure transactions and its assets, liabilities and reserves in line with sections 75 and 76 of the Co-operative and Community Benefit Societies Act 2014. It must also set up and maintain a suitable system for controlling its books of accounts, its cash and its receipts and invoices”. 6.2 The Board has ultimate responsibility for the Partnership’s finances and in accordance with the Financial Regulations the Board has the responsibility to approve the five year plans. 6.3 Any material changes in the assumptions used in the five year plan from those approved in the 30 year Business Plan will require the approval of our funder.
Regulatory Guidance 7.1 The relevant Regulatory Standards are:
Standard Sections
3 The RSL manages its resources to ensure its financial 3.1, 3.5
well-being and economic effectiveness.
4 The governing body bases its decisions on good 4.1 quality information and advice and identifies and mitigates risks to the organisation’s purpose.
Risk 8.1 The setting of realistic budgets with robust assumptions reduces the risk of financial loss and failure as highlighted in the Risk Register.
Jonathan Fairgrieve 5-Jun-18 APPENDIX 1 LOAN PORTFOLIO SYSTEM
RSL: 359 - Hebridean Housing Partnership Ltd ( HHP )
Return Annual Return 2018 31/03/2018
Approval Date Approved 05/06/2018 Approver Donald Macleod Approver Job Title Director of Finance & Corporate Services
Further Return Details Accounting Year End Do you have any ISDAs? Does Lender have a floating charge over Intragroup Lending / Borrowing the company’s assets March No No Yes
Social Housing Units Owned by RSL Used for Security Unencumbered % of Unencumbered with positive value 2164 2164 0 0.00 Comment
Hebridean Housing Partnership Ltd - 2017/2018 30 April 2018 Page 1 of 13 LOAN PORTFOLIO SYSTEM
Total Facility (£’000s) Facility Outstanding (£’000s) Facility Undrawn (£’000s) 15,000.0 4,946.2 9,911.3
1 Facility Detail 1 Facility Lender Status Facility Start Date End Amount Amount Undrawn Details Committed? Next Multi Number Total £’000s Date Undrawn Outstanding Facility For 5 Yrs? Lender HHPRBS001 Royal Bank of Live 5,000.0 18/09/2015 10/09/2041 1,500.0 3,500.0 New Build - No Yes No Scotland plc Social Housing
Chargeholder Security Trustee No
Facility Fees
Details Additional Lenders Arrangement Fees Y Non-Utilisation Fees Y Other Fees N
Hebridean Housing Partnership Ltd - 2017/2018 30 April 2018 Page 2 of 13 LOAN PORTFOLIO SYSTEM
1.1.1 Loan Details 1
1.1.1.1.1 Covenant Detail 1 Loan Ref No Seq. No. Type of Covenant Required Level Reporting frequency Date of last report Level Achieved RBSFIXED002 1 Interest Cover Cashflow deficit of £2.02m for Annually 31/03/2017 Cashflow surplus of 2017/18 £3.7m for 2017/18 How is it calculated? Annual Cashflow Deficit Covenant In respect of each Financial Year specified in Part A where the ratio in column 2 is less than zero, the Annual Cashflow Deficit for that Financial Year shall not be a greater negative figure than that set out in Part A of Schedule 5, as amended each year by the Lender in line with the agreed Business Plan. Net Operating Cashflow Covenant In respect of each Financial Year specified in Part B where the ratio in column 2 is equal to or greater than zero, the ratio of Net Operating Cashflow to Total Interest for that period shall not be less than the ratio setout in Part B of Schedule 5, as amended each year by the Lender in line with the agreed Business Plan. Part A 31March2018 2,023,670 31March2019 3,285,700 31March2020 2,829,750 31March2021 3,467,090 31March2022 1,272,260 31March2033 951,830 Part B 31March2023 0.24 31March2024 0.83 31March2025 1.03 31March2026 1.97
Hebridean Housing Partnership Ltd - 2017/2018 30 April 2018 Page 3 of 13 LOAN PORTFOLIO SYSTEM
31March2027 3.37 31March2028 1.83 31March2029 2.43 31March2030 1.90 31March2031 3.50 31March2032 2.74 31March2034 3.38 31March2035 5.46 31March2036 16.08 31March2037 0.00 31March2038 0.00 31March2039 0.00 31March2040 0.00 31March2041 0.00 31March2042 0.00
Ref No Status Start Date Type Amount O/standing Repayment Terms Terms of Loan Purpose Details Ref Rate Margi n / All- in Rate RBSFIXED00 Live 18/09/2015 Fixed Rate 3,500.0 3,500.0 Interest only No Affordable Fixed Rate 5.4830 2 Loan followed by Housing Percentage structured capital Development repayments
1.1.2 Additional Loan and Security Detail
Hebridean Housing Partnership Ltd - 2017/2018 30 April 2018 Page 4 of 13 LOAN PORTFOLIO SYSTEM
Loan Ref No First Capital Final Capital Int is being First Deal Forward Security from Social Housing Basis Date of Coven Repayment Payment Interest Expires Fixes Social Housing % Security Valuation ants Payment Value £’000s RBSFIXED002 01/04/2027 31/03/2035 Paid 19/10/2015 17/04/2027 No 100.00 26,784.0 EUV-SH 31/03/2017 Yes without sales
Loan Fees Details Arrangement Fees Y Non-Utilisation Fees Y Other Fees N
1.1.3 Loan Details 2
1.1.3.1.1 Covenant Detail 1 Loan Ref No Seq. No. Type of Covenant Required Level Reporting frequency Date of last report Level Achieved RBSVAR003 1 Interest Cover Cashflow deficit £2.02m for Annually 31/03/2018 Cashflow Surplus of 2017/18 £3.7m for 2017/18 How is it calculated? Annual Cashflow Deficit Covenant In respect of each Financial Year specified in Part A where the ratio in column 2 is less than zero, the Annual Cashflow Deficit for that Financial Year shall not be a greater negative figure than that set out in Part A of Schedule 5, as amended each year by the Lender in line with the agreed Business Plan.
Hebridean Housing Partnership Ltd - 2017/2018 30 April 2018 Page 5 of 13 LOAN PORTFOLIO SYSTEM
Net Operating Cashflow Covenant In respect of each Financial Year specified in Part B where the ratio in column 2 is equal to or greater than zero, the ratio of Net Operating Cashflow to Total Interest for that period shall not be less than the ratio setout in Part B of Schedule 5, as amended each year by the Lender in line with the agreed Business Plan. Part A 31March2018 2,023,670 31March2019 3,285,700 31March2020 2,829,750 31March2021 3,467,090 31March2022 1,272,260 31March2033 951,830 Part B 31March2023 0.24 31March2024 0.83 31March2025 1.03 31March2026 1.97 31March2027 3.37 31March2028 1.83 31March2029 2.43 31March2030 1.90 31March2031 3.50 31March2032 2.74 31March2034 3.38 31March2035 5.46 31March2036 16.08 31March2037 0.00 31March2038 0.00 31March2039 0.00
Hebridean Housing Partnership Ltd - 2017/2018 30 April 2018 Page 6 of 13 LOAN PORTFOLIO SYSTEM
31March2040 0.00 31March2041 0.00 31March2042 0.00
Ref No Status Start Date Type Amount O/standing Repayment Terms Terms of Loan Purpose Details Ref Rate Margi n / All- in Rate RBSVAR003 Live 18/09/2015 Variable 1,500.0 0.0 Interest only Yes Affordable LIBOR 3 0.3000 Rate Loan followed by Housing month structured capital Development repayments
1.1.4 Additional Loan and Security Detail Loan Ref No First Capital Final Capital Int is being First Deal Forward Security from Social Housing Basis Date of Coven Repayment Payment Interest Expires Fixes Social Housing % Security Valuation ants Payment Value £’000s RBSVAR003 21/09/2015 21/09/2015 Paid 18/09/2015 100.00 26,784.0 EUV-SH 31/03/2017 Yes without sales
Loan Fees Details Arrangement Fees N
Hebridean Housing Partnership Ltd - 2017/2018 30 April 2018 Page 7 of 13 LOAN PORTFOLIO SYSTEM
Non-Utilisation Fees N Other Fees N
2 Facility Detail 2 Facility Lender Status Facility Start Date End Amount Amount Undrawn Details Committed? Next Multi Number Total £’000s Date Undrawn Outstanding Facility For 5 Yrs? Lender HHPRBS2162 Royal Bank of Live 5,000.0 18/09/2015 17/09/2025 5,000.0 0.0 New Build - No Yes No Scotland plc Social Housing
Chargeholder Security Trustee No
Facility Fees
Details Additional Lenders Arrangement Fees Y Non-Utilisation Fees Y Other Fees N
Hebridean Housing Partnership Ltd - 2017/2018 30 April 2018 Page 8 of 13 LOAN PORTFOLIO SYSTEM
3 Facility Detail 3 Facility Lender Status Facility Start Date End Amount Amount Undrawn Details Committed? Next Multi Number Total £’000s Date Undrawn Outstanding Facility For 5 Yrs? Lender HHPRBS2163 Royal Bank of Live 5,000.0 18/09/2015 17/09/2025 3,411.3 1,446.2 New Build - No Yes No Scotland plc Social Housing
Chargeholder Security Trustee No
Facility Fees
Details Additional Lenders Arrangement Fees Y Non-Utilisation Fees Y Other Fees N
3.1.1 Loan Details 1
3.1.1.1.1 Covenant Detail 1
Hebridean Housing Partnership Ltd - 2017/2018 30 April 2018 Page 9 of 13 LOAN PORTFOLIO SYSTEM
Loan Ref No Seq. No. Type of Covenant Required Level Reporting frequency Date of last report Level Achieved RBSVAR1043 4210 Interest Cover Cashflow deficit £2.02m for Annually 31/03/2018 Cashflow Surplus of 2017/18 £3.7m for 2017/18 How is it calculated? Annual Cashflow Deficit Covenant In respect of each Financial Year specified in Part A where the ratio in column 2 is less than zero, the Annual Cashflow Deficit for that Financial Year shall not be a greater negative figure than that set out in Part A of Schedule 5, as amended each year by the Lender in line with the agreed Business Plan. Net Operating Cashflow Covenant In respect of each Financial Year specified in Part B where the ratio in column 2 is equal to or greater than zero, the ratio of Net Operating Cashflow to Total Interest for that period shall not be less than the ratio setout in Part B of Schedule 5, as amended each year by the Lender in line with the agreed Business Plan. Part A 31March2018 2,023,670 31March2019 3,285,700 31March2020 2,829,750 31March2021 3,467,090 31March2022 1,272,260 31March2033 951,830 Part B 31March2023 0.24 31March2024 0.83 31March2025 1.03 31March2026 1.97 31March2027 3.37 31March2028 1.83 31March2029 2.43 31March2030 1.90
Hebridean Housing Partnership Ltd - 2017/2018 30 April 2018 Page 10 of 13 LOAN PORTFOLIO SYSTEM
31March2031 3.50 31March2032 2.74 31March2034 3.38 31March2035 5.46 31March2036 16.08 31March2037 0.00 31March2038 0.00 31March2039 0.00 31March2040 0.00 31March2041 0.00 31March2042 0.00
Ref No Status Start Date Type Amount O/standing Repayment Terms Terms of Loan Purpose Details Ref Rate Margi n / All- in Rate RBSVAR104 Live 18/09/2015 Variable 1,500.0 1,446.2 Interest only - Yes Affordable LIBOR 3 1.25 3 Rate Loan Bullet repayment Housing month at end of term Development from refinancing
3.1.2 Additional Loan and Security Detail Loan Ref No First Capital Final Capital Int is being First Deal Forward Security from Social Housing Basis Date of Coven Repayment Payment Interest Expires Fixes Social Housing % Security Valuation ants Payment Value £’000s RBSVAR1043 10/09/2041 Paid 28/10/2015 100 26,784.0 EUV-SH 31/03/2017 Yes
Hebridean Housing Partnership Ltd - 2017/2018 30 April 2018 Page 11 of 13 LOAN PORTFOLIO SYSTEM
without sales
Loan Fees Details Arrangement Fees Y Non-Utilisation Fees Y Other Fees N
4 Intra Group Finance 1 20 has value when required
(Validation) Provided part of borrowed - Yes / Lender aware
4.1 Intragroup Lending Seq. No. Status Borrower Relationship Amount Balance Type Purpose of Loan Duration First Part of Funds Loan Ref Lender Provide O/stand Loan Purpose (months) Repayme Borrowed No Aware
Hebridean Housing Partnership Ltd - 2017/2018 30 April 2018 Page 12 of 13 LOAN PORTFOLIO SYSTEM
d ing Details nt Date 1 Live HHP Subsidiary 16.3 16.3 Bridging Working 48 28/02/20 Yes Yes Community Finance Capital 22 Housing Ltd Security Type of Security Details Security Loan Repayment Repayment Ref Rate Margin / All-in Start Date End Date Security Value Agreement Period (mo) Terms rate No Yes 48 Payment start Base 1.0000 01/03/2018 28/02/2022 date deferred- bullet repayment of interest and capital at maturity
Hebridean Housing Partnership Ltd - 2017/2018 30 April 2018 Page 13 of 13 Item 8 Appendix 2 Financial Projections & Assumptions 2018 Hebridean Housing Partnership Ltd 359 01234 5 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 PLEASE USE "0" FOR NIL VALUES THROUGHOUT THIS RETURN Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 £'000 £'000 £'000 £'000 £'000 £'000 STATEMENT OF COMPREHENSIVE INCOME
Gross rents 10 : 8,375.9 8,739.7 9,328.2 10,056.0 10,796.5 11,174.4 Service charges 11 : 48.0 35.0 36.3 37.3 38.5 39.6 Gross rents & service charges 12 : 8,424.0 8,774.7 9,364.5 10,093.3 10,835.0 11,214.0 10+11 Rent loss from voids 13 : 93.6 176.2 187.0 199.9 214.6 222.1 Net rent & service charges 14 : 8,330.4 8,598.5 9,177.5 9,893.4 10,620.4 10,991.9 12-13 Developments for sale income 15 : 1,146.9 295.2 390.4 938.3 0.0 473.0 Grants released from deferred income 16 : 1,249.9 931.4 1,027.2 1,196.4 1,328.4 1,328.4 Grants from Scottish Ministers 17 : 0.0 0.0 0.0 0.0 0.0 0.0 Other grants 18 : 253.3 120.0 120.0 120.0 120.0 120.0 Other income 19 : 214.0 688.0 5.2 5.3 5.5 5.7 TURNOVER 20 : 11,194.4 10,633.1 10,720.3 12,153.4 12,074.3 12,919.0 SUM(14:19) Less: Housing depreciation 22 : 2,704.8 2,201.0 2,521.9 2,944.5 3,242.3 3,386.4 Impairment written off / (back) 23 : 0.0 0.0 0.0 0.0 0.0 0.0
Management costs 25 : 2,180.8 2,644.8 2,364.0 2,374.9 2,468.9 2,537.4 Planned maintenance - direct costs 26 : 1,097.4 1,353.9 1,267.0 1,312.0 1,450.6 1,576.4 Re-active & voids maintenance - direct costs 27 : 1,369.4 1,200.2 1,172.8 1,226.3 1,262.0 1,311.0 Maintenance overhead costs 28 : 0.0 0.0 0.0 0.0 0.0 0.0 Bad debts written off / (back) 29 : 78.3 175.4 186.0 198.4 211.1 218.5 Developments for sale costs 30 : 1,146.9 295.2 390.4 938.3 0.0 473.0 Other activity costs 31 : 12.8 15.0 15.5 16.0 16.5 17.0 Other costs 32 : 0.0 95.0 60.3 41.3 42.5 119.6 33 : 5,885.5 5,779.5 5,456.0 6,107.2 5,451.6 6,252.9 SUM (25:32)
Operating Costs 35 : 8,590.3 7,980.5 7,977.9 9,051.7 8,693.9 9,639.3 22+23+33 Exceptional Items - (Income) / Expense 36 : 0.0 0.0 0.0 0.0 0.0 0.0 OPERATING SURPLUS/(DEFICIT) 37 : 2,604.1 2,652.6 2,742.4 3,101.7 3,380.4 3,279.7 20-35-36
Gain/(Loss) on disposal of PPE 39 : (173.6) 0.0 0.0 0.0 0.0 0.0 Interest receivable and other income 40 : 15.6 16.8 6.8 3.0 3.9 6.9 Interest payable and similar charges 41 : 367.9 384.6 529.6 652.2 747.0 845.9 Increase / (Decrease) in Negative Goodwill 42 : 0.0 0.0 0.0 0.0 0.0 0.0 Other Gains / (Losses) 43 : 2,425.0 0.0 0.0 0.0 0.0 0.0
SURPLUS/(DEFICIT) ON ORDINARY ACTIVITIES BEFORE TAX 45 : 4,503.1 2,284.8 2,219.6 2,452.5 2,637.3 2,440.7 37+39+40-41+42+43
Tax on surplus on ordinary activities 47 : 0.0 0.0 0.0 0.0 0.0 0.0
SURPLUS/(DEFICIT) FOR THE YEAR AFTER TAX 49 : 4,503.1 2,284.8 2,219.6 2,452.5 2,637.3 2,440.7 45-47 STATEMENT OF FINANCIAL POSITION
Non-Current Assets Intangible Assets & Goodwill 54 : 0.0 0.0 0.0 0.0 0.0 0.0
Housing properties - Gross cost or valuation 57 : 80,504.6 93,765.6 110,205.3 127,458.6 132,884.3 137,791.4 Less Housing Depreciation 59 : 2,704.8 2,201.0 4,722.9 7,667.4 10,909.7 14,296.1 Negative Goodwill 60 : 0.0 0.0 0.0 0.0 0.0 0.0 NET HOUSING ASSETS 61 : 77,799.8 91,564.6 105,482.4 119,791.2 121,974.6 123,495.3 57-59-60 Non-Current Investments 63 : 0.0 0.0 0.0 0.0 0.0 0.0 Other Non Current Assets 64 : 823.3 795.8 768.4 740.9 713.5 695.5 TOTAL NON-CURRENT ASSETS 65 : 78,623.1 92,360.4 106,250.8 120,532.1 122,688.1 124,190.8 54+61+63+64
Current Assets Net rental receivables 68 : 58.4 779.2 700.8 835.5 864.8 895.0 Other receivables, stock & WIP 69 : 1,289.5 734.2 744.8 744.8 744.8 744.8 Investments (non-cash) 70 : 0.0 0.0 0.0 0.0 0.0 0.0 Cash at bank and in hand 71 : 10,209.2 2,231.3 3,822.5 214.1 1,187.1 1,334.4 TOTAL CURRENT ASSETS 72 : 11,557.1 3,744.7 5,268.1 1,794.4 2,796.7 2,974.2 SUM(68:71) Payables : Amounts falling due within One Year Loans due within one year 75 : 0.0 0.0 0.0 0.0 0.0 0.0 Overdrafts due within one year 76 : 0.0 0.0 0.0 0.0 0.0 0.0 Other short-term payables 77 : 3,849.8 113.1 111.1 113.6 120.1 126.3 TOTAL CURRENT LIABILITIES 78 : 3,849.8 113.1 111.1 113.6 120.1 126.3 75+76+77 NET CURRENT ASSETS/(LIABILITIES) 80 : 7,707.3 3,631.6 5,157.0 1,680.8 2,676.6 2,847.9 72-78 TOTAL ASSETS LESS CURRENT LIABILITIES 82 : 86,330.4 95,992.0 111,407.8 122,212.9 125,364.7 127,038.7 65+80 Payables : Amounts falling due After One Year Loans due after one year 85 : 10,529.2 10,400.3 15,416.4 20,328.2 20,344.3 20,360.4 Other long-term payables 86 : 0.0 0.0 0.0 0.0 0.0 0.0 Grants to be released 87 : 44,035.0 51,540.6 59,720.7 63,161.2 63,659.7 62,877.0 88 : 54,564.2 61,940.9 75,137.1 83,489.4 84,004.0 83,237.4 85+86+87 Provisions for liabilities & charges 89 : 1,136.0 1,136.2 1,136.2 1,136.2 1,136.2 1,136.2 NET ASSETS 90 : 30,630.2 32,914.9 35,134.5 37,587.3 40,224.5 42,665.1 82-88-89 Capital & Reserves Share capital 93 : 0.0 0.0 0.0 0.0 0.0 0.0 Revaluation reserve 94 : 0.0 0.0 0.0 0.0 0.0 0.0 Restricted reserves 95 : 0.0 0.0 0.0 0.0 0.0 0.0 Revenue reserves 96 : 30,630.2 32,914.9 35,134.5 37,587.3 40,224.5 42,665.1 TOTAL CAPITAL & RESERVES 97 : 30,630.2 32,914.9 35,134.5 37,587.3 40,224.5 42,665.1 SUM(93:96) Pension Liability - as included above 99 : 1,136.0 1,136.0 1,136.0 1,136.0 1,136.0 1,136.0 Intra Group Receivables - as included above 100 : 0.0 0.0 0.0 0.0 0.0 0.0 Intra Group Payables - as included above 101 : 0.0 0.0 0.0 0.0 0.0 0.0 Balance check 102 : TRUE TRUE TRUE TRUE TRUE TRUE STATEMENT OF CASHFLOWS Net Cash from Operating Activities Operating Surplus/(Deficit) 106 : 2,604.1 2,652.6 2,742.4 3,101.7 3,380.4 3,279.7 37 Depreciation & Amortisation 107 : 2,704.8 2,228.4 2,549.4 2,971.9 3,269.8 3,404.4 Impairments / (Revaluation Enhancements) 108 : 0.0 0.0 0.0 0.0 0.0 0.0 Increase / (Decrease) in Payables 109 : 452.3 (2,675.3) 0.0 0.0 0.0 0.0 (Increase) / Decrease in Receivables 110 : 316.4 684.3 0.0 0.0 0.0 0.0 (Increase) / Decrease in Stock & WIP 111 : (226.6) (492.6) (10.6) 0.0 0.0 0.0 Gain / (Loss) on sale of non-current assets 112 : (173.6) 0.0 0.0 0.0 0.0 0.0 Other non-cash adjustments 113 : (1,938.1) (2,349.8) (951.0) (1,328.2) (1,351.3) (1,352.5) NET CASH FROM OPERATING ACTIVITIES 114 : 3,739.5 47.6 4,330.2 4,745.4 5,298.9 5,331.6 SUM(106:113)
Tax (Paid) / Refunded 116 : 0.0 0.0 0.0 0.0 0.0 0.0
Return on Investment and Servicing of Finance Interest Received 119 : 15.6 16.8 6.8 3.0 3.9 6.9 Interest (Paid) 120 : (241.5) (513.5) (513.5) (636.1) (730.9) (829.8) RETURNS ON INVESTMENT AND SERVICING OF FINANCE 121 : (226.0) (496.7) (506.7) (633.1) (727.0) (822.9) 119+120
5 Yr Financial Projections 2015‐2016 Projections & Assumptions‐ Page 1 of 2 Printed 25/06/2018 @ 15:49 £'000 £'000 £'000 £'000 £'000 £'000 Capital Expenditure & Financial Investment Construction or acquisition of Housing properties 124 : (4,518.3) (15,965.8) (16,439.7) (17,253.3) (5,425.7) (4,907.1) Improvement of Housing 125 : 0.0 0.0 0.0 0.0 0.0 0.0 Construction or acquisition of other Land & Buildings 126 : (241.1) 0.0 0.0 0.0 0.0 0.0 Construction or acquisition of other Non-Current Assets 127 : 0.0 0.0 0.0 0.0 0.0 0.0 Sale of Social Housing Properties 128 : 1,236.6 0.0 0.0 0.0 0.0 0.0 Sale of Other Land & Buildings 129 : - 0.0 0.0 0.0 0.0 0.0 Sale of Other Non-Current Assets 130 : - 0.0 0.0 0.0 0.0 0.0 Grants (Repaid) / Received 131 : 3,130.2 8,437.0 9,207.4 4,636.9 1,826.8 545.7 CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT 132 : (392.6) (7,528.8) (7,232.3) (12,616.4) (3,598.9) (4,361.4) SUM(124:131)
NET CASH BEFORE FINANCING 134 : 3,120.9 (7,977.9) (3,408.8) (8,504.1) 973.0 147.3 114+116+121+132
Financing Equity drawdown 137 : - 0.0 0.0 0.0 0.0 0.0 Debt drawndown 138 : - 0.0 5,000.0 4,895.7 0.0 0.0 Debt repayment 139 : (142.5) 0.0 0.0 0.0 0.0 0.0 Working Capital (Cash) - Drawn / (Repaid) 140 : - 0.0 0.0 0.0 0.0 0.0 NET CASH FROM FINANCING 141 : (142.5) 0.0 5,000.0 4,895.7 0.0 0.0 SUM(137:140)
INCREASE / (DECREASE) IN NET CASH 143 : 2,978.4 (7,977.9) 1,591.2 (3,608.4) 973.0 147.3 134+141
Cash Balance Balance Brought Forward 146 : 7,230.8 10,209.2 2,231.3 3,822.5 214.1 1,187.1 148 (Prior Year) Increase / (Decrease) in Net Cash 147 : 2,978.4 (7,977.9) 1,591.2 (3,608.4) 973.0 147.3 143 CLOSING BALANCE 148 : 10,209.2 2,231.3 3,822.5 214.1 1,187.1 1,334.4 146+147 Difference between Closing Balance and Cash at bank and in hand 149 : 0.0 0.0 0.0 0.0 0.0 0.0 148-71
ADDITIONAL INFORMATION
Units: Number of units owned at end of period 154 : 2,164.0 2,181 2,249 2,356 2,418 2,418 [prevyr]154+161-173-174-175 Number of units managed at end of period (exclude factored units) 155 : 2,164.0 2,181.0 2,249.0 2,356.0 2,418.0 2,418.0
New Social Rent Properties added 157 : 22.0 17.0 68.0 107.0 62.0 0.0 New MMR Properties added 158 : 0.0 0.0 0.0 0.0 0.0 0.0 New Low Costs Home Ownership Properties added 159 : 0.0 0.0 0.0 0.0 0.0 0.0 New Properties ‐ Other Tenures added 160 : 0.0 0.0 0.0 0.0 0.0 0.0 Total number of new affordable housing units added during year 161 : 22 17 68 107 62 0 SUM (157:160)
Financed by: Scottish Housing Grants 164 : 1,579.2 2,080.3 6,516.7 10,911.8 6,060.0 0.0 Other public subsidy 165 : 250.0 0.0 0.0 0.0 0.0 0.0 Private finance 166 : 908.2 0.0 0.0 0.0 0.0 0.0 Sales 167 : 0.0 0.0 0.0 0.0 0.0 0.0 Cash reserves 168 : 0.0 0.0 0.0 0.0 0.0 0.0 Other 169 : 0.0 0.0 0.0 0.0 0.0 0.0 Total cost of new units 170 : 2,737.4 2,080.3 6,516.7 10,911.8 6,060.0 0.0 SUM (164:169)
Number of units lost during year from: Sales including right to buy 173 : 34.0 0.0 0.0 0.0 0.0 0.0 Demolition 174 : 0.0 0.0 0.0 0.0 0.0 0.0 Other 175 : 0.0 0.0 0.0 0.0 0.0 0.0
Assumptions: General Inflation (%) 178 : - 0.0 3.1 2.5 2.5 2.5 Rent increase - Margin above General Inflation (%) 179 : - 0.0 0.5 1.0 1.0 1.0 Operating cost increase - Margin above General Inflation (%) 180 : - 0.0 0.5 0.5 0.5 0.5 Direct maintenance cost increase - Margin above General Inflation (%) 181 : - 0.0 0.4 0.4 0.4 0.4 Average cost of borrowing (%) 182 : 4.4 3.7 5.0 4.2 3.7 4.1 Employers Contributions for pensions (%) 183 : 0.2 0.0 0.0 0.0 0.0 0.0 Employers Contributions for pensions (£'000) 184 : 228.0 0.0 0.0 0.0 0.0 0.0 SHAPS Pensions deficit contributions (£'000) 185 : 0.0 0.0 0.0 0.0 0.0 0.0
Total staff costs (including NI & pension costs) 187 : 1,198.9 1,460.7 1,513.3 1,558.7 1,605.4 1,653.6 Full time equivalent staff 188 : 45.0 0.0 0.0 0.0 0.0 0.0
EESSH Capital Expenditure included above 190 : 562.2 548.6 606.5 525.0 518.4 443.7 EESSH Revenue Expenditure included above 191 : 0.0 0.0 0.0 0.0 0.0 0.0 11360 11360 11360 11360 11360 11360 0 Version 5.1 (7,977.9) 1,591.2 (3,608.4) 973.0 147.3
5 Yr Financial Projections 2015‐2016 Projections & Assumptions‐ Page 2 of 2 Printed 25/06/2018 @ 15:49 Ratios 2018 Hebridean Housing Partnership Ltd 359 0 1 2 3 4 5 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Financial capacity Interest cover % 1,554.6 12.5 844.6 746.5 725.5 643.3 Gearing % 1.0 24.8 33.0 53.5 47.6 44.6
Efficiency Voids % 1.1 2.0 2.0 2.0 2.0 2.0 Arrears % 0.7 9.1 7.6 8.4 8.1 8.1 Bad debts % 0.9 2.0 2.0 2.0 2.0 2.0 Staff costs / turnover % 10.7 13.7 14.1 12.8 13.3 12.8 Turnover per unit (£) 5,173.0 4,875.3 4,766.7 5,158.5 4,993.5 5,342.8
Liquidity Current ratio 3.0 33.1 47.4 15.8 23.3 23.5
Profitability Gross surplus / Deficit % 23.3 24.9 25.6 25.5 28.0 25.4 Net surplus / Deficit % 40.2 21.5 20.7 20.2 21.8 18.9
Financing Debt Burden 0.9 1.0 1.4 1.7 1.7 1.6 Net debt per unit (£) 147.9 3,745.5 5,155.1 8,537.4 7,922.7 7,868.5 Debt per unit (£) 4,865.6 4,768.6 6,854.8 8,628.3 8,413.7 8,420.3
Diversification Income from non-rental activities % 2.1 6.7 0.1 0.0 0.0 0.0 Other Activities Surplus to Operating Surplus % 7.7 25.4 (0.4) (0.3) (0.3) (0.3)
5 Yr Financial Projections 2015-2016 Ratios- Page 1 of 1 Printed 25/06/2018 @ 15:47 ITEM NO 9
Making our house your home
BUDGETARY PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2018 Board 27 June 2018
Report by Director of Finance & Corporate Services
Purpose of Report
1.1 To present a report on the performance against budget for the year ended 31 March 2018 to the Board for approval including an overview of board members expenses and consultancy spend for the year. The report also presents to the board for approval any budget carry forward requirements. Summary
2.1 The report on the performance against budget, including consultancy spend and board members expenses for the year ended 31 March 2018 has been prepared and is at Appendix 1. 2.2 Proposals for carrying forward underspend from 2017/18 into 2018/19 are at Appendix 2. Competence
3.1 The legal, financial or other constraints to any recommendation in this report are contained in Paragraphs 5.1 to 5.4. Recommendations
4.1 It is recommended that the Board: a) review the performance against budget for the year ended 31 March 2018 as at Appendix 1; b) approve the carry forward of £484,382 of slippage into 2018/19 as detailed in Appendix 2; c) note the Financial Covenant for 2017/18 as detailed in Appendix 3; and d) approve a recommendation to the AGM that £5,000, or another sum, of the surplus be donated to local charities during 2018/19.
APPENDIX 1 Budgetary Performance for 2017/18 (Annual Consultants Spend To Follow) APPENDIX 2 Carry Forward Slippage 2017/18 APPENDIX 3 Financial Covenant 2017/18 Background Papers: Corporate Sponsorship 17 March 2012 Writer of Report: Donald Macleod Tel: 0300 123 0773
Jonathan Fairgrieve 5-Jun-18 Competence
Financial 5.1 The Report deals with how the financial resources of the Partnership have been utilised. 5.2 The borrowing requirements for 2018/19 will need to be reviewed to ensure the carry forward of underspend does not impact materially on the approved annual financing strategy or on the financial covenants set for 2018/19. Legal 6.1 The following Partnership rules are applicable: Rule 79.1 The Partnership must not distribute its surpluses to Members. Rule 79.2 The Board shall set and review periodically its policy for the donation of funds to charities. Such donations must further the objects of the Partnership and the Board shall report to the Members on such donations.
6.2 The following Standing Orders are applicable: Part 2 a) Approval and Amendment of Strategy, Business Plans and Budgets, including virements to or from a budget head in excess of £50,000. Regulatory Guidance 7.1 The relevant Regulatory Standards are:
Standard Sections
2 The RSL is open about and accountable for what it 2.1, 2.2, 2.4 does. It understands and takes account of the needs and priorities of its tenants, service users and stakeholders. And its primary focus is the sustainable achievement of these priorities.
3 The RSL manages its resources to ensure its financial 3.1, 3.5 well-being and economic effectiveness.
Risk 8.1 The budgets approved by the Board ensure that the Financial Covenant for the financial year will be achieved. Failure to contain spend within approved budgets could result in the Financial Covenant not being achieved with the corresponding penalties being applied by the Funder which could have a significant impact on the Finances of the Partnership. The Financial Covenant for 2017/18 was a maximum cash flow deficit of £2,023,670. Appendix 3 shows the covenant position at 31 March 2018.
Jonathan Fairgrieve 5-Jun-18 Report Details
9.1 A review of performance against budget has been carried out and a high level report is at Appendix 1 together with explanations for material variances from approved budgets. 9.2 Appendix 2 details proposals for carrying forward budgets into 2018/19 totalling £484,382. It is worth noting that this excludes previous approved board carryover for investment as the current unallocated investment spend will be sufficient to deliver the previously agreed carry-over. 9.3 In June 2017 the Board approved a recommendation to the membership of the AGM that £5,000 be donated to 5 local charities. The donations were very much appreciated by the local charities and it is proposed that a similar recommendation be placed before the membership of the 2018 AGM.
Jonathan Fairgrieve 5-Jun-18 APPENDIX 1
Budgetary Performance for 2017/18
2014/15 2015/16 2016/17 2017/18 2017/18 ACTUAL ACTUAL ACTUAL ACTUAL BUDGET VARIANCE Line £ £ £ £ £ £ % 1 Net Rental Income (8,152,319) (8,151,824) (8,282,597) (8,250,863) (8,291,570) (40,707) 0.49 2 Grants (705,830) (573,586) (446,387) (489,690) (291,000) 198,690 (68.28) 3 Grant Amortisation 0 (1,149,173) (1,209,599) (1,249,903) (1,200,000) 49,903 (4.16) 4 Right to Buy (8,783) 61,039 127,511 117,424 102,480 (14,944) (14.58) 5 Other Income (436,371) (3,126,518) (394,210) (1,422,484) (365,060) 1,057,424 (289.66) 6 Interest Received (7,899) (11,333) (9,330) (15,330) (5,000) 10,330 (206.60) 7 Total Income (9,311,203) (12,951,396) (10,214,613) (11,310,845) (10,050,150) 1,260,695 (12.54)
8 Employee Costs 1,306,601 1,364,629 1,420,710 1,501,647 1,640,830 139,183 8.48 9 Premises Costs 25,612 40,064 36,514 38,379 44,900 6,521 14.52 10 Supplies and Services 203,686 216,531 210,407 249,755 259,500 9,745 3.76 11 Administration Costs 75,487 62,562 83,376 83,500 180,640 97,140 53.78 12 Corporate Expenses 397,801 453,594 465,808 498,574 720,850 222,276 30.84 13 Total Management Costs 2,009,188 2,137,380 2,216,815 2,371,855 2,846,720 474,865 16.68
14 General Repairs 1,235,806 1,315,928 1,227,907 1,215,311 1,104,930 (110,381) (9.99) 15 Specific Repairs 42,235 54,072 57,200 63,967 44,525 95,183 213.77 16 Rechargeable Repairs 12,333 16,950 29,903 23,433 38,200 14,767 38.66 17 Insurance Repairs 93,771 66,560 52,210 47,696 55,000 (107,320) (195.13) 18 Non Dwelling Repairs 14,155 14,347 21,087 18,953 30,380 11,427 37.62 19 Total Response Repairs 1,398,300 1,467,858 1,388,307 1,369,359 1,273,035 (96,324) (7.57)
20 Planned Maintenance 531,550 750,469 622,601 652,698 662,910 10,212 1.54 21 Estate Works 31,648 43,389 33,668 74,071 164,315 90,244 54.92 22 Total Planned Maintenance 563,198 793,858 656,269 726,770 827,225 100,455 12.14
23 Investment Programme 3,433,581 3,022,586 4,217,963 3,875,911 4,494,585 610,449 13.58 24 Development Programme 2,319,230 2,757,075 3,168,364 4,095,038 4,948,221 853,183 17.24 25 Non Housing Investment - 13,257 225 197 76,035 75,838 99.74 26 Total Capital Investment 5,752,811 5,792,918 7,386,552 7,971,146 9,518,841 1,539,470 16.17
Commentary on Performance
Total Income Grants Grants higher than budget due to additional OT grants made available & CNES adaptation grant. Right to Buy A large number of properties sold during the year had substantial investment works carried out in previous years and has resulted in a loss being made on the sale. Other Income Includes the sales and HAG contribution on the LIFT sales in the year. Interest Received More monies on deposit coupled with increases in the base rate during 2017/18 has resulted in higher interest received. Total Management Costs Significant costs savings were made in all areas. Employee Costs Savings in Employee Costs are due to delays in filling vacancies during the year. Administration Costs The savings come from reduced recruitment costs, community support and reduced training costs. Corporate Costs Savings on legal fees of £76K although some of this will be carried forward into 2018/19. Consultancy underspend £74K due to delays in the stock condition survey work and the knock on impact on rent structure/affordability works. Members travel underspend of £28K and PR & marketing underspend of £21K drive the remaider of the savings to budget.
Total Response Repairs Cost High level of demand on service in the last quarter – partly driven by the lengthy cold spell. Void Repairs have been under pressure due to a large number of voids since the beginning of the Financial Year coupled with the decision to vacate Cnoc Mor & Braehead.
Total Response & Planned Repairs Costs Final out-turn shows an underspend of £100K. This is almost entirely driven by the fact that the unadopted insfrastruture budget has still to be utilised as the discussions on septic tank adoption remains unresolved.
Total Capital Investment Due to the nature of capital investment it is inevitable there will be slippage and acceleration occurring throughout the financial year. It is proposed to carry forward budgets where projects were not completed by 31 March 2018 and to accept savings on projects where works were accelerated. Commentary on Net Rental Income Net Rental Income 8.3 Net Rental Income less than budget by 0.49%. This was due mainly to the 8.3 following: 8.2 8.2 a) The voids performance being worse than budget; and
(£) Millions b) The number of bad debts written off was slightly higher than expected. 8.1 C) The impact from RTB sales was slightly higher than budgeted. 8.1 2014 2015 2016 2017
Commentary on Grant Income Grant Income 800
600 Grant income has increased year on year as the partnership continues to be active in its utilisation of stage 3 adaptation grants and HEEPs. There was 400 also one property which was extensively adapated in the year with grant monies being provided by CNES. (£) Thousands 200
0 2014 2015 2016 2017
Commentary on Right to Buy Right to Buy The level of RTBs for 2017/18 continued to be high as the scheme ended 60 31st July 2016. 20 However, the total RTB income shows a loss as a number of properties had 20 2014 2015 2016 2017 a high discount and a significant level of investment expenditure which has 60 resulted in a loss on sale of the asset. (£) Thousands 100
140
Commentary on Employee Costs Employee costs Employee costs were under budget by £140K which is made up of 1.60 Salaries £104k Savings are mainly due to a delay in 1.40 filling vacant posts (Development 1.20 Manager, Resource Assistant, Financial 1.00 Accountant 0.80 Pensions & NI £6k 0.60 (£) Millions 0.40 Travel & Sub £19.2k Level of travel was less than expected. 0.20 Other Costs £9.6K Driven by saving on employee exp 0.00 2014 2015 2016 2017 Average employee cost has reduced from £34.9k to £33.4k.
Commentary on Management Costs Management Costs Management costs are £336k under budget due to slippage and savings.
Corporate Costs Supplies & Svcs Costs Premises £6.5k Due to maintenance and Admin Costs Premises Costs energy cost 900 800 Administration £97k Mainly due to 700 Postage/Print/Stat £15K 600 Recruitment £20k 500 Training £48k 400 Community Support £11k 300 (£) Thousands 200 Corporate Exp £222k Mainly due to 100 0 Legal Fees £76K 2014 2015 2016 2017 Consultancy £74K Members Travel £28K PR & Marketing £21K APPENDIX 1
BOARD MEMBERS EXPENSES 2017/18
1.1 Expenses are claimed at the end of every calendar month using the approved Claim Form with all necessary receipts attached.
1.2 All Claim Forms are checked and approved for payment by the Chief Executive and payment made within 10 working days.
1.3 The chart overleaf details the areas of expenditure incurred during the year against budget.
1.4 On analysing the data, there has been an overall underspend of 83% on the total budget allocated to Board Members.
1.5 Reasons for the underspend have been ascribed to:
a. members on the Board who are already up in Stornoway on other business, either only claiming part or none of their expenses from HHP;
b. the increased use of Skype for Board Members in the Southern Isles to attend training and meetings remotely;
c. inability to attend Board Meetings for personal reasons;
Target Attendance 85%
Actual for 2017/18 66%
Actual for 2016/17 70%
Actual for2015/16 68%
d. inability to attend Board Training for personal reasons; and
e. training events coinciding with Board Meeting dates, and Board Members attending training events already arranged for staff.
Target Attendance 85%
Actual for 2017/19 43%
Actual for 2016/17 73%
Actual for 2015/16 54%
IF Page 1 of 3 18/6/18 APPENDIX 1
1.6 There has been an increase in Board Members attending mainland conferences and this is reflected in higher mainland travel and subsistence expenditure and conference fees.
CHART FOR BOARD MEMBERS’ EXPENSES
Board Training 0% Island Subsistence 15%
Conference Fees 43%
Island Travel 21%
Mainland Travel & Subsistence Budget Spend 21%
IF Page 2 of 3 18/6/18 APPENDIX 1
Board & Area Committee Members Expenses 2017/18
Conference Mainland Mainland Island Island Board Total Fees Travel Subsistence Travel Subsistence Training
Norman Macleod 299.00 275.50 - - - - 574.50
Mairi Bremner 590.00 405.42 109.20 897.50 644.65 - 2,646.77
Daniel Coyle - - - 226.48 80.00 - 306.48
Jane MacKinnon - - - 176.60 - - 176.60
Alasdair Mackenzie 1,634.60 240.80 179.98 15.30 97.24 - 2,167.92
Roddy Mackay - - - 138.00 247.80 - 385.80
Calum Mackay 505.00 310.72 - - - - 815.72
Board Catering ------
Board Training ------
Totals 3,028.60 1,232.44 289.18 1,453.88 1,069.69 - 7,073.79
Budget Allocation for 2017/18 £41,350.00
IF Page 3 of 3 18/6/18 APPENDIX 1
Value for Responsible Summary of Area Consultant Cost (£) Budget (£) Scope of Works Money Comments Officer Performance (Y/N) Performance has been in Legal-Arrears Legal Donald To undertake legal services in line with expectations set Harper Macleod LLP £ 19,574 36,000£ Y Fees Macleod respect of arrears. out during tender process. Legal-RTB outsourced Donald To undertake legal services in All sales processed Harper Macleod LLP £ 15,988 36,000£ Y legal fees Macleod respect of Right to Buy timeously and accurately. Various Activities carried Tenant Participation Development of tenant Tenant Participation £ 29,952 30,300£ John Maciver out and new groups Y Regular update Advisory Service participation opportunities. inititiated. reports to board. Draft report issued Donald Providing a valuation for our Funders Valuation Jones Lang LaSalle Ltd £ 11,760 15,000£ awaiting updated stock Y Macleod funders for 2017. condition details. Update of Annual Financing Strategy Treasury Donald Providing Treasury advice in JC Rathbone - Treasury Advice£ 4,992 5,000£ including evaluating Y Management Macleod connection with loan facilities. potential additional borrowing facility
Wherever possible we try to resolve cases To undertake Corporate Legal before they are Legal-Corporate Legal Donald work on an ad hoc basis when Service/Advice provided Harper Macleod LLP £ 8,024 10,000£ Y referred to external Fees Macleod needed - mainly in relation to on request. legal advisors and we securities. will continue to work on that basis through 2017/18. External validation Audit of gas services approach Comprehensive report Gas Audit Corgi Technical Services £ 4,920 6,000£ John Maciver Y represents best and physical work and assessment provided practice Final year of validation by 3rd party - allowed HHP Donald To validate and provide external to proceed with 2017/18 ARC Validation CD Consultancy £ 2,222 2,300£ Y Macleod review of regulator return (ARC). submission without the need for external verification. Essential requirement for Repairs Schedule of Provision of annual updated SOR NSR Management LTD £ 1,430 1,450£ John Maciver Repairs & Maintenance Y Rates schedule contract Advised on VAT Finance-VAT Donald To provide ad hoc advise on VAT Campbell Dallas LLP £ 3,240 6,000£ complexities surrounding Y Consultants Macleod regulations Goathill development Confirmed the approach being taken by HHP. To provide HHP with Limited input on Finance-Consultants Donald procurement options on C.Moss £ 1,950 2,000£ technical options Y General Macleod conclusion of existing available other than what Datahosting arrangement HHP were already testing. Consultancy support services for Performance in line with Rosie Docherty HR Pay & Grading review £ 2,969 30,000£ Dena Macleod Organisational Review & Pay & tender. Currently on Y Consulting Grading Review target. Work continually behind Updating stock condition details Stock Conditioning David Adamsons & schedule with failed £ 27,360 50,000£ John Maciver to compliment next investment N Fieldwork Partners delivery dates. Final programme report still not available. TOTAL £ 134,381 230,050£ Appendix 2
CARRY FORWARD PROPOSALS 2018/19
Saving/ Under Over Slippage Total ££££ Budget Variances Management Costs 180,600 294,265 474,865 Repairs (96,324) (96,324) Estate Works 90,244 - 90,244 Non Housing Investment 43,813 42,237 86,050 Investment 610,449 - 610,449 Development 853,183 853,183 Will be covered by separate report as development 1,778,289 (96,324) 336,502 2,018,467 programme will require extensive reprofiling
Transfer to Designated Reserves
Underspend for 2017/18 2,018,467
2017/18 Slippage Note Investment programme (Feb'18 approved virements now funded from unallocated) 1 - Management Costs 2 294,265 Estate Works (To be funded from unallocated investment) 3 - Non-housing Investment 4 42,237 Development 5 147,880
Total Slippage 484,382
18/06/2018M:\Corporate Functions\Board\Decision Making\Board, Committees & Area Committees\Board & Standing Commitees\Board\2018\D ‐ 27 June 2018\BRD‐27JUN18‐09 Budgetary performance Appendix 2GM Appendix 2
CARRY FORWARD PROPOSALS 2018/19
NOTE ££ 1 Investment programme Work-in-Progress (Board Approved Virements from Feb'18 now funded from 2018/19 Unallocated -
2 Management Training Courses 47,000 Postage, Printing & Stationery 14,460 IT & Telecoms 9,380 Legal Costs 75,700 Consultants Fees 74,190 Board Members Training 7,000 Board Members Travel & Subsistence 27,000 PR & Marketing 20,000 Recruitment costs 19,535 294,265
3 Unadopted Infrastructure - Planned -Lewis - - To be funded from unallocated investment
4 Non Housing Investment slippage Office Improvements 7,500 IT Strategy Requirement 34,737 Uist Heating System Repairs 42,237
5 Development Back Care Unit Slippage 117,880 Incremental Feasibility works 30,000 147,880
Total Slippage 340,007
Totals Savings 144,375
Total Carry Forward 484,382
M:\Corporate Functions\Board\Decision Making\Board, Committees & Area Committees\Board & Standing Commitees\Board\2018\D ‐ 27 18/06/2018 June 2018\BRD‐27JUN18‐09 Budgetary performance Appendix 2 GM Appendix 3
Annual Cashflow Deficit - March 18
Line Detail £ Income £ 1 Dwelling rents (net) 8,190,324 2 Non Dwelling rents (net) 13,924 3 Right to Buy Sales 658,944 4 Grant Funding 489,850 5 Other Income 86,694 6 Grant received for New Build 3,130,235 7 Sale of LIFT received 504,981 8 Grant on LIFT received 1,498,184 9 Insurance Receipts 114,625
10 Total Income 14,687,761 Expenditure 13 Supervision & Management 2,310,985 14 Response Repairs 1,369,359 15 Estate Works 74,071 16 Planned/Cyclical Maintenance 1,017,601 17 Investment Programme 3,534,022 18 Office Alterations and IT 28,863 19 LIFT Costs 1,292,523 20 Opening Balances - 21 Development Costs 3,815,999
22 Total Expenditure 13,443,423 23 Net Operating Cashflow 1,244,338
24 Interest Paid 241,543 25 Interest Collected (15,571) 26 Security Fees Capitalised - 27 Total Interest 225,972 28 Annual Cashflow Surplus/(Deficit) 1,018,366
Interest Ratio 18%
Covenant Requirement Maximum Annual Cashflow deficit (2,023,670)
Tolerance 3,042,036 -150% ITEM NO 10
Making our house your home
TENANT PARTICIPATION Board 27 June 2018
Report by Director of Operations
Purpose of Report
1.1 This report seeks approval to support tenant attendance at the TPAS (Scotland) Annual Conference. Summary
2.1 A funding request has been received from the Western Isles Housing Association Communities Forum to support up to 6 places at the TPAS (Scotland) Annual Conference in November 2018. Competence
3.1 The legal, financial or other constraints to the recommendations in this report are contained in paragraphs 5 and 6. Recommendations
4.1 It is recommended that the Board agree to fund up to 6 places for the Western Isles Housing Association Communities Forum at the annual TPAS Conference in November 2018.
Background Papers: None Writer of Report: John Maciver Tel: 0300 123 0773
Jackie Macleod 11 June 2018 Competence
Financial 5.1 The cost of each place at the TPAS Conference is £890.00 for twin occupancy. TPAS offered 6 placed for the cost of 5. 5.2 Six placed would therefore cost £4450.00. This can be funded from existing community support budgets. 5.3 Budgetary provision has been made to support tenant participation. Funding will be made available to the Forum as appropriate or costs may be met directly by HHP. Legal 6.1 There are no specific legal implications to the report. Regulatory Guidance 7.1 The relevant Regulatory Standards are:
Standard Sections
1 The governing body leads and directs the RSL to 1.1 achieve good outcomes for its tenants and other service users.
2 The RSL is open and accountable for what it does. It 2.1, 2.3 understands and takes account of the needs and priorities of its tenants, service users and stakeholders. And its primary focus is the sustainable achievement of these priorities
Risk 8.1 Strong tenant participation represents good practice and reduced risk by helping to improve strong service delivery and processes to best meet the needs of service users. It also complies with regulatory expectations. Report Details
Background 9.1 Effective tenant involvement and participation is something that all good landlords aspire to deliver. It is important that tenants feel that they have opportunities to engage with HHP and to be involved in decision making. 9.2 HHP has since 2006 funded several places at this Conference which has been mainly attended by representatives from the Forum and the Cearns Community Association. This has been funded from Tenant Participation budgets. 9.3 A request has again been received from the Western Isles Housing Association Communities Forum which is a Registered Tenant Organisation for funding to enable representatives to attend the Conference.
Jackie Macleod 11 June 2018 ITEM NO 11
Making our house your home
INVESTMENT PROGRAMME PROCUREMENT 2019-23 Board 27 June 2018
Report by Director of Operations
Purpose of Report
1.1 To provide an update on procurement of the Investment Programme 2019 to 2023. Summary
2.1 The consultancy support is being carried out by ALT procurement. 2.2 The initial phase of the procurement process involved a review of: Legislative requirements; Market analysis; and Current framework assessment. 2.3 A report setting out a series of recommendations on the procurement approach has been prepared. This is at Appendix 1. 2.4 Consultation was held with the Investment and Repairs Working Group and with the Tenant Forum on the 6 June 2018. Both groups are supportive of the recommendations. Competence
3.1 The legal, financial or other constraints to the recommendations in this report are contained in paragraphs 5, 6 and 8. Recommendations
4.1 It is recommended that the Board: a) Approve the recommendations in the Recommendations Summary report prepared by ALT Procurement at Appendix 1; being An Open Procedure is used to undertake the re-procurement of the framework; The procurement is to be conducted via the Public Contracts Scotland with additional local advertising to enhance interest and opportunities; The Framework will be structured as shown in Appendix 1 item 1.2 with a maximum of 5 contractors per lot; Framework structure to include a joint lot for kitchen, bathroom and heating as covering a single area; To rationalize energy efficiency works into one lot; To combine roofing and roughcasting as one lot; That construction Design and Management (Regulations) be promoted and linked to performance measures;
Angus MacNeil 11 June 2018 Pricing to include requirement for fixed labour rates and material percentage mark ups and direct fees removed; Commercial evaluation to be undertaken on at least one upcoming project per lot where possible; Price quality weightings to be set as a minimum of 60% and maximum of 40% price. The option to exclude any bidder who scores 0 or 1 for any questionnaire is included; Community benefit requirements to be formalized through a points based system; Award of work to be made on blended basis; i.e Direct award up to a value per project; Mini competition using quality scoring from framework tendering exercise; and Mini competition whereby quality is reassessed; A new performance management framework to be implemented; b) Delegate authority to the Investment and Repairs Working Group to determine work packages to be issued for 2019/20 as part of the tendering process; and c) Delegate authority to the Investment and Repairs Working Group to agree the final tender documents.
APPENDIX 1 Recommendations Summary Report – ALT Procurement Background Papers Risk Register Writer of Report Angus MacNeil Tel: 0300 123 0773
Angus MacNeil 11 June 2018 Competence
Financial 5.1 The report sets out proposals for the most effective approach to procuring the Investment Programme for 2019-23. Legal 6.1 The decision to approve or amend Strategy, Business Plan and budgets including virements to or from a budget head in excess of £50,000 is reserved to the Board. Regulatory Guidance 7.1 The relevant Regulatory Standards are:
Standard Sections
1 The governing body leads and directs the RSL to 1.2 and 1.3 achieve good outcomes for its tenants and other service users
3 The RSL manages its resources to ensure its financial 3.1, 3.3 and well-being and economic effectiveness. 3.4
Risk 8.1 There are risks highlighted in the Risk Register which are relevant to Investment including specifically the failure of a major contractor. 8.2 There are further risks highlighted in the Risk Register in regard to the Health of the local economy particularly the capacity of contractor to deliver programmes. 8.3 The procurement review has considered various factors which could be a risk and propose options in order to mitigate these risks in the procurement moving forward. Report Details
Investment Works 2019/23 - Procurement 9.1 The current framework agreement expires on 31 March 2019. 9.2 ALT Procurement have been appointed to project manage the procurement. This includes reviewing and recommending options to prepare tender documentation and to evaluation and award process. This includes: Legislation Changes European Single Procurement Document Assessment of final accounts Contract notice Award criteria Thresholds Community benefits Sustainable procurement duty Timescales
Angus MacNeil 11 June 2018 Market Analysis/Current Framework Assessment (to establish) Capacity Costs Packaging of works Contractor understanding of contract 9.3 The current approach has been reviewed and analysed. ALT compiled a detailed report on this. The report has been considered and recommendation agreed. 9.4 A presentation and discussion of the detailed report was held with the Investment and Repairs Working Group on 6 June 2018. 9.5 A further consultation meeting was held with tenant representatives. 9.6 ALT Procurement have now prepared a summary report setting out recommendations. This is at Appendix 1. 9.7 The proposed date for the issue of tenders is 1 August 2018. 9.8 It is also proposed that where possible the tender process is based on actual packages of work for 2019/20. Contractors would therefore be tendering for actual work in addition to include on the framework. 9.9 Some elements of work for 2018/20 have previously been approved by Board in XXX. This would require review once the Stock Condition Survey is available. It is proposed that delegation for final work packages being tendered be given to the Investment and Repairs Working Group. 9.10 Investment and Repairs Working Group meetings will be held as needed during the process. 9.11 Further consultation will also be held with tenant groups in order to have their feedback into the process where practicable.
Angus MacNeil 11 June 2018 APPENDIX 1
Recommendation Summary
1. Recommendations – Investment Works
1.1. Tender Approach
For Hebridean Housing Partnership’s purposes, with varying work types and volumes, need for flexible contractor capacity, a framework, with it’s no guarantee of work and ability to reopen competition, provides the most effective and efficient vehicle for the delivery of these works.
It is recommended that HHP use an Open Procedure to undertake the re-procurement of this framework. Since the introduction of the European Single Procurement Document (ESPD) and the new regulations, the use of the Restricted Procedure has greatly diminished due to the restricted ability to down select bidders. This is demonstrated by a survey of 20 of the most recent works contract notices where of the 20, 16 were undertaking the procurement making use of an Open Procedure. Based on ALT Procurement’s recent experience, the use of an Open Procedure has not caused there to be a significant increase in bids from contractors “taking a punt” or without serious interest.
One of the key risks associated with the procurement of this framework is ensuring a level of interest and attracting a level of bids which generates sufficient competition. With the Restricted Procedure adding an additional layer of complexity for bidders, and with the marketplace being made up predominantly of SME’s who are not overly familiar with tendering procedures it is felt that the use of an Open Procedure would help facilitate and promote bidding. It is also felt that by using an Open Procedure to facilitate and promote bidding, particularly from SME’s, that this helps support HHP’s requirements under the Sustainable Procurement Duty.
This should be advertised, as per Regulations, on Public Contracts Scotland (PCS) for a period of time exceeding the minimum requirements set by Regulations to ensure sufficient time is provided for the completion of tender documents and the length of advertising is sufficient to attract a suitable number of bidders. It is also recommended that HHP take all opportunities to promote and advertise this framework in addition to the required advertisement on PCS. It is proposed that local trade publications, newspapers and other applicable media (including social media) is used to promote this tender throughout the region.
1.2. Framework Structure
It is noted that the current framework structure, in the main, works successfully and delivers adequate levels of service and value for money to HHP, therefore we are not suggesting a root and branch reworking of the framework structure. Instead we are suggesting small amendments which we believe will support the requirements set out by HHP whilst managing the concerns and issues raised with the existing framework.
A General Works lot which would cover a broader range of works was heavily considered, however upon undertaking an analysis of the market there did not appear to be enough of a supply base to generate adequate competition. Therefore, this option has not been included within the Recommendations.
1 The framework will follow broadly the same structure as the current framework and it is recommended that it is structured as follows:
Bathrooms, Kitchens & Heating
Energy Efficiency Works
Lewis & Harris UistsUist & & Barras Barra
Windows/Doors Heating Bathrooms Kitchens Roofing & Roughcast
Electrical Works Environmental
Occ. Therapy It is recommended that HHP set a maximum limit of 5 contractors per lot.
1.2.1. Bathroom, Kitchens & Heating Lot
It is proposed that a Bathroom, Kitchens & Heating lot which covers a broader scope of works is added to the framework structure. The combining of works under this lot has been proposed due to these work types benefiting from a higher number of contractors based across the regions. Further, from an analysis of previous bids a number of contractors on the current framework already undertake works across these work types and varying regions.
It is envisaged that this lot would be restricted to projects above £200,000 and used where there is a programme of works, which varies that is being delivered in either the same housing stock or groups of nearby housing stocks. It is anticipated that this will deliver value for money through economies of scale and aggregation.
It is proposed that this lot is procured as a single lot covering both areas. The reasoning behind this is to try and use its increased size to help deliver efficiencies particularly in the Uists and Barra area where costs have historically been higher. This could be through the combining of similar works across the two areas; whilst this would not reduce accommodation and travel costs, it should deliver efficiencies of scale.
2
1.2.2. Rationalisation of Lots
It is also proposed that instead of having two separate geographical lots for Energy Efficiency works, these lots are rationalised and contractors would be required to undertake works across all geographical areas. The same contractor was successful on both lots of the current framework so there is no risk of eliminating or restricting the current contractor’s opportunity to bid. Further the level of works delivered through these lots has been extremely low, with much of this work type being delivered out with the framework through the use of grant funding. A second option for this lot, would be to remove it completely from this framework and undertake a separate tender for the works as, and when, required. This option, however depends greatly on the HHP’s forecast of works in this area over the next 4 years.
A further proposed change is the combining of Roofing and Roughcast work types, whilst maintaining separate geographical lots. This change is based on feedback from internal HHP stakeholders as well as an analysis of the marketplace and bidding trends. It was noted by HHP that these works have often been combined in the past due to scaffolding being required for both types of work, thus generating efficiencies in hire costs. In each area geographic areas, the same contractors are on Roofing and Roughcast lots, therefore the combination will not negatively impact the bidding potential of the existing contractor base. Further from a desktop analysis of the marketplace it can be found that there are synergies across the lots, therefore the combination is one that matches the supply chain and has the potential to generate efficiencies in service and deliver value for money.
1.2.3. Rationale
These proposed approaches take account of feedback from stakeholders and contractors along with the findings of ALT Procurement’s initial market analysis. The approach looks to balance the potential benefits of larger work packages through the Bathroom, Kitchens and Heating lot whilst the risk of spreading the work around fewer contractors is mitigated by maintaining much of the existing framework structure. This includes the maintaining of stand-alone lots for all three areas to deliver smaller projects and ensure that SME’s are not adversely impacted.
The combining of the two geographical areas across some Lots also balances these risks, as it is not anticipated that this will reduce the supply base below that of its current capacity.
1.3. Tender Documentation
1.3.1. Specification
The current specification of works has now been in place for four years and provides a stable grounding for the delivery of works. However, as four years have passed, technology and standards will have moved on and therefore during the tender documentation development phase, it is recommended that a review of the specification, including relevant changes to legislation, is undertaken.
It was noted by internal HHP stakeholders that there can at times be issues with contractors taking on their responsibilities under the Construction Design and Management Regulations (CDM). This is more prevalent with contractors who have not had experience
3 of CDM Regulations previously and therefore do not fully understand their obligations under the Regulations. It is therefore suggested that the requirement of CDM is promoted heavily through the specification, with the delivery of this linked to Performance Management measures.
1.4. Pricing Schedule
The Pricing Schedule used on the current framework is well developed and contains a lot of detailed information which will help ensure that contractors know exactly what they are pricing for, helping to remove some of the potential of risk pricing by bidders. It is therefore not suggested that radical changes are made to the schedule, instead some tweaks that will help promote and drive efficiencies are suggested.
HHP have indicated that the discount structure, in the main, currently works well, therefore it is suggested that this model of pricing is maintained on the existing framework. It is, however, suggested that its use is tweaked. Taking on board the comments from stakeholders regarding base rate prices not always being reflective of the market, which then leads to an issue that if a contractor knows they are the only bidder on a mini competition, they will not offer a discount. It is therefore recommended that bidders will be required to provide a minimum discount percentage per lot which they can increase through mini competitions, but they cannot decrease.
It is felt that some of the contractors do not fully understand the pricing model and the sheer number of Schedule of Rates may currently be excessive and therefore exasperating this issue, therefore a full review of the merit of each line of the Pricing Schedule will be undertaken. Further to this, and in line with the proposal to drive efficiencies and value through economies of scale, it is suggested that a model of volume discounts is also used (i.e. a price would be requested for up to 5 radiators, 6-10 radiators, 10+ radiators). This approach could help mitigate risks where additional properties are added to a package of works, as the addition of this additional works should reduce costs and therefore help mitigate risks of overpricing from the contractor after the award of the works package.
It is also suggested that the direct fee percentage is removed, and bidders are informed that their Schedule of Rates should include for all costs associated with undertaking the works. The reason for the suggested removal of this percentage is that maintaining the fee gives bidders a further avenue to add costs. It has also been noted by HHP stakeholders that the discount is often used to reduce this and therefore no real discount is being achieved. The removal of this element will simplify the commercial element and provide a more transparent pricing model.
It has been raised by HHP stakeholders that when new items or works are requested and which are out with the originally tendered rates contractors use this as an opportunity to increase the rates. It is therefore suggested that a fixed labour rate and material percentage mark-up is requested at tender stage. Therefore, when rates for new works are requested, costs would be required to be based on labour rates plus material cost and the tenderers percentage mark up.
1.5. Tender Evaluation
1.5.1. Technical Evaluation
4 The technical evaluation will take the form of a standard questionnaire which will ask specific questions of the tenderer per lot. As the commercial evaluation will request pricing for a programme of works alongside the standard schedule of rates, it is proposed that the technical evaluation includes the requirement for contractors to provide a proposed programme to deliver works which includes reference to resource capacity and how they will manage their requirements under CDM.
In addition to this, questions around working in occupied properties (including safety of tenants and protection of their belongings), health and safety, performance measurement and contract delivery should be included. One key question which will require to be included is around the resource capacity of contractors. The inclusion of this question will be of particular importance when undertaking mini competitions for future work packages on lots. When HHP make the decision to re-score quality rather than carry through scores, they will have the ability to assess contractor capacity at that current time and for those specific investment works. This will help to manage the risk of contractor capacity throughout the framework.
There are also standard, best practice questions which should be included for evaluation by HHP, these include Workforce Matters, Sustainability & Environmental Factors and Community Benefits. The inclusion of Sustainability & Environmental Factors as an Award Criteria question, helps fulfil HHP’s requirements under the Sustainable Procurement Duty.
1.5.2. Commercial Evaluation
The scope of the commercial evaluation should be expanded from that used on the previous framework. Where previously the evaluation was only undertaken on a schedule of rates and notional occurrences, it is suggested that for the commercial evaluation at least one upcoming project is selected per Lot and used alongside the schedule of rates with notional occurrences. Having upcoming projects priced within the overall tender submission has a number of benefits including:
▲ Drives competition and price efficiency from day one of the framework. ▲ Allows HHP to maximise timescales by having projects priced and ready to start on day one of the framework. ▲ Provides price benchmarking for future projects.
1.5.3. Price Quality Weightings
The Price/Quality split for the current framework was set at 40% Price/ 60% Quality. The focus on Quality over price was likely due to the intention for subsequent mini competitions to drive the commercial value, whilst the high-quality weighting used at framework award would ensure only those bidders with a high level of quality would get onto the framework.
As previously mentioned, PCR 2015 requires the same criteria used to reopen competition as was used to award the framework. As such it is recommended that HHP do not use the same weightings as has been previously used and instead increase the price weighting to a minimum of 60%. To ensure this does not dilute the quality of the contractors awarded to the framework it is recommended that a minimum quality score threshold is set and that
5 the tender documentation provide HHP with the ability to disqualify any bidder who scores 0 or 1 on any quality question.
It is recommended that the Price weighing for evaluation purposes is set at a minimum of 60%, with Quality being weighted at a maximum of 40%. This is to ensure that value for money is delivered though the framework whilst also still ensuring a relatively high level of Quality scoring. To further help ensure quality is maintained at a high level it is further recommended that the tender documentation states that HHP have the option to exclude any bidder who scores 0 or 1 for any question.
1.6. Community Benefits
The delivery of Community Benefits through this framework will be a mandatory requirement through the use of points-based system based on the annual spend with contractors on each lot. Bidders will be required to set out within their tender submission how they will manage the process of monitoring and delivering the required Community Benefits and this delivery of these will monitored by HHP through Performance Management.
1.7. Award of Work through the Framework
It is recommended that HHP use a blended approach of awarding work through this framework. The recommended blended approach is summarised as follows:
▲ Direct award up to a value, to be determined in conjunction with HHP, per project ▲ Mini competition using Quality scoring from tender exercise ▲ Mini competition whereby Quality is reassessed
It is recommended that where possible works are packaged up either making use of the Bathrooms, Kitchens and Heating lot or awarding longer term programmes of work through specific work types.
1.8. Performance Management
It is recommended that a form of formal Performance Management is implemented across the framework. The level and type of Performance Management will differ per contractor (Basic, Tactical and Strategic) but based on previous spends across the lots should look to include the following as a minimum:
▲ Regular Performance Management meetings ▲ KPI reporting ▲ General performance monitoring (risk and capacity analysis, financial checks, customer feedback)
2. Next Steps & Key Dates
6 The next steps and key dates in the project are detailed in the table below. These are based on both legislative requirements such as required timescales for tendering and standstill periods along with meeting key HHP Board dates.
Task Start Date End Date
Procurement Review Report th th Develop & 15 May 2018 26 June 2018 Approve Develop & Approve Tender 27th June 2018 31st July 2018 Documentation st th Tender Period 1 August 2018 10 September 2018 th th Evaluation 17 September 2018 26 October 2018 Recommendation th st Report & HHP 26 October 2018 21 November 2018 Approval th th Award Contract 11 December 2018 11 December 2018
3. Conclusion
The options and recommendations provided by ALT Procurement within this report are provided based on the information available to ALT Procurement at the time of the report. It should be noted that as part of any successful project the aims, objectives and approach to delivery should be continually monitored and assessed at frequent intervals. If HHP approve all, or part of, the recommendations it would be ALT Procurement’s intention to continually monitor the project as per this approach
7 ITEM NO 12
Making our house your home
HOUSING ALLOCATIONS ANNUAL REPORT 2017/18 Board 27 June 2018
Report by Director of Operations
Purpose of Report
1.1 This report provides statistical information on housing allocations during 2017/18 and outlines a number of the key issues surrounding supply and demand for housing. Summary
2.1 The report at Appendix 1 is the eighth report to the Board setting out information on supply and demand. This will continue to develop to indicate trends and will help to inform decisions on the requirement for, and location of, new supply.
2.2 This report is also important for monitoring equality in terms of access to housing.
2.3 The level of demand for housing is an important issue for the business and one which is being closely monitored. The demand as demonstrated by waiting lists is weak and has reduced significantly over the last 8 years. This information will inform strategic planning and the future shape of the development programme. Options will need to be run through the Business Plan model to assess the impact of changes in demand.
2.4 We continue to engage with communities and Community Trusts to try and identify any housing need which is not evidenced by our waiting list and to encourage people to register on our waiting list. Competence
3.1 There are no financial implications to the report. Recommendations
4.1 It is recommended that: a) The report at Appendix 1 is noted; b) The quotas for allocating properties in Stornoway remain at 50% for homeless applicants.
APPENDIX 1 Housing Allocations Annual Report 2017/18 Background Papers Writer of Report Mina Maclean Tel: 0300 123 0773
Writer of Report: Mina Maclean Tel: 0300 123 0773 Competence
Financial 5.1 There are no financial implications arising from implementing the recommendations in this report. Legal 6.1 There are no legal implications arising from implementing the recommendations in this report. Regulatory Guidance 7.1 The relevant Regulatory Standards are:
Standard Sections
2 The RSL is open and accountable for what it does. It 2.2 understands and takes account of the needs and priorities of its tenants, service users and stakeholders. And its primary focus is the sustainable achievement of these priorities
4 The governing body bases its decisions on good 4.1, 4.2 quality information and advice and identifies and mitigates risks to the organisation’s purpose.
Risk 8.1 Demand for housing is an important issue for HHP. Lack of demand will impact on income and the strength of the business. There is evidence that demand for housing is continuing to reduce and particularly so in rural areas and this is reflected in the risk register.
Mina Maclean 11 May 2018 APPENDIX 1
Allocations Report 2017/18
Author: Mina Maclean Senior Housing Officer (Allocations) Publication Date: June 2017 ALLOCATIONS REPORT 2017/18
Contents AIMS ...... 2 WAITING LIST AT 31 MARCH 2018 ...... 2 PERCENTAGE OF DEMAND BY AREA ...... 4 BREAKDOWN OF APPLICANTS ON WAITING LIST FROM 2011-2018 (INCLUDING SUSPENDED & DEFERRED) ...... 5 APPLICATIONS RECEIVED DURING 2017/18 ...... 5 PERCENTAGE OF WAITING AND TRANSFER APPLICATIONS BY HOUSEHOLD TYPE ...... 6 PERCENTAGE OF APPLICANTS BY ETHNIC ORIGIN ...... 7 NUMBER OF CANCELLED APPLICATIONS ...... 8 SUSPENSIONS AND DEFERRED APPLICATIONS ...... 9 HOUSING SUPPLY ...... 10 NEW TENANTS SATISFACTION WITH CONDITION OF THE HOUSE ...... 12 REASONS FOR TERMINATIONS ...... 13 WAITING TIMES FOR APPLICANTS ...... 14 LOW DEMAND PROPERTIES...... 15 HOMELESS APPLICANTS ...... 15 QUOTAS FOR ALLOCATING HOUSES ...... 16 CONCLUSION ...... 16
1 | P a g e ALLOCATIONS REPORT 2017/18
AIMS
1.1 The aims of this report are to provide information on the supply and demand for social housing in the Outer Hebrides inform decisions on the requirement for, and location of, new supply monitoring equality in terms of access to housing
WAITING LIST AT 31 MARCH 2018
2.1 The map below shows the number of applicants on the waiting list at 31 March 2018 and incorporates first choice area of preference:
2 | P a g e
2.2 As can be seen demand is highest at the main centres of population and is lower in the rural areas. 2.3 The waiting list broken down to show waiting and transfer applicants (excluding 18 suspended and 70 deferred) is below:
583
600 435 500
400
300 148 200
100
0 Transfer Waiting Total
2.4 Overall the waiting list has remained static since 31 March 2017. However there has been a reduction of nearly 17% over the last five years.
Transfer 25%
Waiting 75%
3 | P a g e PERCENTAGE OF DEMAND BY AREA BY FIRST CHOICE
3.1 The chart shows that the largest demand by a considerable distance is for the Stornoway area with 60% of applicants recording this as their preference. The next largest areas of demand are Eoligarry/Scallery (5%). The next largest area of demand at 4% are Back/Tong, Tarbert, Creagorry/Kileravagh.
8B (Vatersay) 0% 8A (Eoligarry-Scallery) 5% 7E (Eriskay) 0% 7D (Lochboisdale-Pollachar) 2% 7C (Askernish-Bornish) 0% 7B (Eochar-West Gerenish) 1% 7A (Creagorry-Kileravagh) 4% 6D (Carinish-Clachan) 0% 6C (Bayhead) 1% 6B Lochmaddy-Sollas) 1% 6A (Berneray Island) 1% 5C (Northton-Leverburgh) 2% 5B (Scalpay-Bays) 1% 5A (Tarbert) 4% 4B (Keose-Lemreway) 1% 4A (Leurbost-Ranish) 2% 3D (Knock-Aird) 2% 3C (Stornoway) 60% 3B (Back-Tong) 4% 3A (North Tolsta) 0% 2B Heath Park-Crowlista) 1% 2A (Carloway-Callanish) 1% 1D (Arnol-Shawbost) 1% 1C (Shader-Barvas) 1% 1B (Dell-Borve) 1% 1A (Ness) 1%
0% 10% 20% 30% 40% 50% 60% 70%
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BREAKDOWN OF APPLICANTS ON WAITING LIST FROM 2011-2018 (INCLUDING SUSPENDED & DEFERRED)
4.1 The chart below shows the number of applicants on the waiting list over the last seven years. The figures in this chart include, waiting, transfer and also suspended and deferred applications.
900 831 811 794 800 738 733 670 672 700 636 632 573 600 546 545 511 510 500 Waiting 400 Transfer 300 258 Total 175 192 188 200 161 159 162 100 0 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
4.2 There has been an 0.3% increase in the total number of applicants from 31 March 2017 and a 0.2% decrease in waiting list applications. Since 31 March 2011 waiting list applications have fallen by 17%.
APPLICATIONS RECEIVED DURING 2017/18
5.1 The total number of applications received during 2017/18 was 442 a decrease of 1.9% from the previous year. The total number of applications received during 2011/12 was 467 a decrease of 5.4%. 5.2 The average time taken to process these applications was 3 days.
442
500 330 400 300 200 96 100 0 Transfer Waiting Total
5 | P a g e PERCENTAGE OF WAITING AND TRANSFER APPLICATIONS BY HOUSEHOLD TYPE
6.1 Single people make up 50% of the applicants with 30% aged 26-59. 29% of applicants are households with children. 6.2 In 2014/15 the figures were 51% of applicants were single with 29% aged 26- 59. 25% applicants were households with children.
Single Person: 60+ 7% Single Person: 26 - 59 30% Single Person: 18 - 25 11% Single Person: 16 - 17 2% Single Parent: 60+ 1% Single Parent: 26 - 59 14% Single Parent: 18 - 25 2% Other: 60+ 1% Other: 26 - 59 4% Other: 18 - 25 1% Other: 16 - 17 0% Other with Children: 60+ 0% Other with Children: 26 - 59 2% Other with Children: 18 - 25 0% Not Applicable 1% Couple: 60+ 2% Couple: 26 - 59 7% Couple: 18 - 25 2% Couple with Children: 60+ 0% Couple with Children: 26 - 59 11% Couple with Children: 18 - 25 1%
0% 5% 10% 15% 20% 25% 30% 35%
6 | P a g e PERCENTAGE OF APPLICANTS BY ETHNIC ORIGIN
7.1 The chart below shows that the largest applicant group is white Scottish at 75% with 17% of applicants being of other white British origin. White Irish and other white backgrounds make up 5%. 1% did not provide information. 7.2 In 2014/15 the percentage of White Scottish was 75% with 16% being white British origin. White Irish and other white background was 3%. 3% did not provide information.
White Scottish 75%
White Other British 17%
White Irish 1%
Refused to Answer 0%
Polish 1%
Other White Background 4%
Not supplied 1%
Mixed or Multiple Ethnic Background 0%
Indian 0%
Chinese 0%
Bangladeshi 0%
0% 10% 20% 30% 40% 50% 60% 70% 80%
7 | P a g e NUMBER OF CANCELLED APPLICATIONS
8.1 During the year 222 applications were cancelled. The primary reason for applications being cancelled was due to non-return of review forms and there were 97 applications cancelled as a result of this. The rolling review process is important in keeping data live and up to date.
97 100 90 80 70 56 60 50 40 30 20 11 12 7 7 8 6 10 1 4 2 1 2 4 2 1 1 0
8 | P a g e SUSPENSIONS AND DEFERRED APPLICATIONS
9.1 In some circumstances applicants will be suspended from the waiting list. Suspended applicants are reviewed every month to ensure that the suspension is still relevant. There are currently 18 applications suspended, 5 are suspended because of current tenant arrears, 5 are suspended because of former tenant arrears and 4 because of conduct issues. 4 applicants are suspended for refusing two offers of housing which met their choices.
5 5
5 4 4 5 4 4 3 3 2 2 1 1 0 Current Tenant Former Tenant Refused 2 Offers Unsatisfactory Arrears Arrears (suspended) Tenancy Reference
9.2 70 applicants do not wish to be housed at present and are deferred until such time as their circumstances change.
70
70 60 50 Does not want to be housed just now 40 30 20 10 0
9 | P a g e HOUSING SUPPLY
10.1 In total 208 properties (excluding new build) were re-let during 2017/18. There were 43 lets made to transfer applicants. There were 6 Direct Lets. 10.2 The number of relets by area is shown below. 77 lets (37% were in the Stornoway area with 10 lets (4.8%) in Balivanich and 20 lets (9.61%) in Lochboisdale. 10.3 In the 2014/15 report the figures were 70 lets (32.41%) in the Stornoway area, 18 lets (8.33%) in Balivanich and 16 lets (7.41%) in Lochboisdale.
Number of Relets by Area
8A (Eoligarry-Scallery) 9 7E (Eriskay) 2 7D (Lochboisdale-Pollachar) 20 7B (Eochar-West Gerenish) 5 7A (Creagorry-Kileravagh) 10 6D (Carinish-Clachan) 7 6C (Bayhead) 1 6B Lochmaddy-Sollas) 6 5C (Northton-Leverburgh) 1 5B (Scalpay-Bays) 3 5A (Tarbert) 13 4B (Keose-Lemreway) 7 4A (Leurbost-Ranish) 2 3D (Knock-Aird) 4 3C (Stornoway) 77 3B (Back-Tong) 11 3A (North Tolsta) 3 2B Heath Park-Crowlista) 4 2A (Carloway-Callanish) 6 1D (Arnol-Shawbost) 10 1C (Shader-Barvas) 3 1B (Dell-Borve) 2 1A (Ness) 2
0 10 20 30 40 50 60 70 80
10 | P a g e 10.4 75 lets (36%) were for 1 bedroom properties and 85 lets (40%) were 2 bedroom properties. 44 lets (21%) were of 3 bedroom properties. 10.5 In the 2014/15 report the figures were 83 lets (37 %) of 1 bedroom properties and 86 lets (38%) of 2 bedroom properties.
Relets by Property Size
300 208 200 75 85 44 100 3 1 0 Bedsit 1 2 3 4 Total
10.6 The graph below shows applicants housed during the year by household type and by ethnic origin. 12% of lets were to couples with children, 14% were to couples, 17% were to single parents and 41% were to single people. These figures are broadly in line with the proportion of households on the waiting list.
% of Relets by Household Type
Single Person: 60+ 7% Single Person: 26 - 59 25% Single Person: 18 - 25 9% Single Person: 16 - 17 0% Single Parent: 26 - 59 15% Single Parent: 18 - 25 2% Other: 60+ 2% Other: 26 - 59 9% Other: 18 - 25 1% Other with Children: 26 - 59 2% Other with Children: 18 - 25 1% Not Applicable 0% Couple: 60+ 3% Couple: 26 - 59 9% Couple: 18 - 25 2% Couple with Children: 26 - 59 11% Couple with Children: 18 - 25 1%
0% 5% 10% 15% 20% 25%
11 | P a g e 10.7 69% of lets were to white Scottish applicants and 25% to other white groups. This is broadly in line with the make-up of waiting lists.
% of Relets by Ethnic Origin
69% 70%
60%
50%
40%
30% 21% 20%
10% 3% 4% 0% 1% 0% 0% Arab, Arab Mixed or Not Other Polish White White Scottish ot Multiple supplied White Other Scottish Arab British Ethnic Background British Background
NEW TENANTS SATISFACTION WITH CONDITION OF THE HOUSE
11.1 A questionnaire is sent to new tenants within the first week of the tenancy starting asking various questions regarding the standard, decoration, cleanliness of the property and the quality of repairs carried out. 47% of questionnaires were returned and 84% of tenants said they were satisfied with the condition of the house. 6% were dissatisfied due to decoration and the condition of the property.
% satisfied with condition of house Very dissatisfied Fairly dissatisfied 4% Neither 2% satisfied nor Very satisfied dissatisfied 42% 10% Fairly satisfied 42%
12 | P a g e REASONS FOR TERMINATIONS
12.1 The reasons for terminations are, 13% moved to the private sector, while 19% moved to the mainland. 7% moved to the mainland for work.
Reasons for Terminations 45 43
40
35
30 24 25 23 21 20 18 15 15 11 9 9 9 10 8 8 4 5 5 3 1 1 2 0
13 | P a g e AVERAGE WAITING TIMES FOR APPLICANTS
13.1 The waiting time from the date of application to commencement of tenancy for the Homeless List, Transfer List and Housing List are shown in the following three charts.
Homeless list - No of days
0 5 apt 939 0 4 apt 386
61 Balivanich 3 apt 337 Stornoway 355 2 apt 551
0 Bedsit 444
0 200 400 600 800 1000
Transfer List - No of Days
0 5 apt 0 0
526 4 apt 0 854
859 Balivanich 3 apt 250 799 Tarbert Stornoway 1180 2 apt 295 1610
0 Bedsit 0 465
0 200 400 600 800 1000 1200 1400 1600 1800
14 | P a g e Housing List - No of Days
0 5 apt 0 0
84 0 4 apt 1629
36 Balivanich 96 3 apt Tarbert 597 Stornoway 0 120 2 apt 1764
0 Bedsit 0 1228
0 200 400 600 800 1000 1200 1400 1600 1800
LOW DEMAND PROPERTIES
14.1 The low demand for many rural areas is increasing and is a cause for concern. At the time of writing there were 7 properties (5 in Calabhaigh, 1 at Kenneth Drive and 1 in Casimir Place) which could not be let due to a lack of demand. The longest void period on one property is currently 30 weeks. 14.2 Overall 98 houses are now classed for ARC purposes as being low demand. Annual void loss has increased steadily in recent years from 0.7% in 2014/15 to 1.1% in 2017/18. Further information and potential interventions will be reported to future Board meetings.
HOMELESS APPLICANTS
15.1 In total 57 statutory homeless applicants were housed during 2017/18. Of these 38 were housed in the Stornoway area. This is 43% of lets in Stornoway against a target quota of 50%. This quota is to be reviewed annually and it is proposed that it continue at 50%. There has been no request by the Comhairle to amend the current quota. Of all allocations made throughout the Outer Hebrides, 26% were made to statutory homeless applicants.
15 | P a g e QUOTAS FOR ALLOCATING HOUSES
16.1 Within the Stornoway area it is proposed that houses will continue to be allocated on a one to one ratio between homeless applicants and mainstream/transfer applicants. 16.2 The quota for waiting applicants is 35% and for transfer applicants in the Stornoway area is 15%. 16.3 The quotas are to be reviewed at the Housing Working Group when the Allocation Policy is revised after the provisions of the Housing Scotland Act 2014 are enacted.
CONCLUSION
17.1 The information in this report allows trends and changes in demand and supply to be tracked. It also provides a base from which an assessment can begin to be made as to whether the allocation policy is meeting the objectives set and whether those most in housing need are being housed. 17.2 There are some key points to note. The supply of vacancies is primarily of 1 and 2 bedrooms which relates well to the fact that 50% of the waiting list is single people. 17.3 The percentage of lets made by ethnic group is in line with the composition of the waiting list although the numbers are small. 17.4 Demand against supply needs to be closely monitored. On a simplistic level there are 510 applicants on the waiting list excluding transfer applicants. This figure includes suspended and deferred applications. If deferred applicants are excluded the figure is 449. When this is compared to the supply of housing at an average of approximately 200 per annum the level of demand per vacancy is not high. This position is consistent with previous years and is an important issue to note in business terms. 17.5 There is a concern that we are continuing to increase supply through the Development programme while demand is shrinking. Discussions are ongoing with the Comhairle as to how these trends can be investigated and addressed through the Local Housing Strategy development process.
16 | P a g e HHP is a registered society under the Co-operative and Community Benefit Societies Act 2014, Registered Number: 2644R(S),Registered Office: Creed Court, Gleann Seileach Business Park, Willowglen Road, STORNOWAY, Isle of Lewis HS1 2QP. It is a charity registered in Scotland, Charity Number:SCO35767, registered as Registered Social Landlord with the Scottish Housing Regulator, Registration Number:359 and registered as a Property Factor, Registration Number PF000183 Email: [email protected] Web: www.hebrideanhousing.co.uk Phone:0300 123 0773
17 | P a g e ITEM NO 13
Making our house your home
RISK MANAGEMENT POLICY REVIEW Audit & Risk 26 June 2018 Board 27 June 2018
Report by Chief Executive Purpose of Report
1.1 To consider and approve the revision to the Risk Management Policy & Strategy. Summary
2.1 The Risk Management Policy & Strategy is reviewed on an annual basis. 2.2 There have been minor changes made to the policy to take into account the recommendations from our Internal Auditors in November 2017. A paragraph which required an annual assurance report to be presented to the Audit & Risk Committee has been removed. The Risk Register is presented to each meeting of the Committee for review providing the Committee with the necessary assurance. Competence
3.1 The financial and legal constraints to the recommendation in this report being implemented are detailed at Paragraphs 5.1 to 8.2. Recommendations
4.1 It is recommended that the Risk Management Policy and Strategy at Appendix 1 be approved by the Board.
APPENDIX 1 Risk Management Policy and Strategy Background Papers Writer of Report Dena Macleod
Dena Macleod 11-June-18 Competence
Financial 5.1 There is no cost involved in implementing the revision to the policy. Legal 6.1 The approval and amendment of policies is a matter reserved to the Board. 6.2 The Board has referred the following function to the Audit & Risk Committee: “monitoring and reviewing policies and procedures relating to the Board’s system of internal control, risk evaluation and corporate governance” The two policies which do not fall within the Audit & Risk Committee referred functions are Training and Development and Repairs and Maintenance. Regulatory Guidance 7.1 The relevant Regulatory Standards are:
Standard Sections
4 The governing body bases its decisions on good 4.3 quality information and advice and identifies and mitigates risks to the organisation’s purpose.
Risk 8.1 Governance of the Partnership is critical to its long term viability. Reviewing and updating polices ensures a solid foundation for good governance and mitigates the risk.
Dena Macleod 11-June-18 Appendix 1
Risk Management Policy & Strategy
Effective Date: July 2018 Review Date: June 2019 Approved by HHP Board: 27 June 2018 RISK MANAGEMENT POLICY & STRATEGY
INTRODUCTION
1.1 HHP faces a variety of risks. While risk cannot be eliminated, it can be identified, assessed and responded to. 1.2 Risk can be defined as uncertain future events or actions that might prevent the organisation from maintaining good performance, meeting pre set targets, goals and plans which result in loss being incurred. 1.3 Risks can be financial, physical or reputational. 1.4 HHP will ensure that risk management plays an integral part in the governance and management of the organisation at strategic and operational level.
AIMS
2.1 This Policy aims to: Identify risk in a changing environment Define the level of risk capacity and score accordingly Assess the likelihood of such risk arising and the impact on the organisation should they arise, and once assessed prioritising the risk Respond to material risk and minimise risk through an appropriate system of controls which limit and manage the level of risk such that residual risk can be borne without serious permanent damage to the Partnership. Ensure that risk management flows through our business at both strategic and operations levels.
ESSENTIAL ELEMENTS
3.1 Risk management can be defined as the culture, process and structures that are implemented by an organisation to manage potential risks and their adverse effects. 3.2 HHP has in place a risk management strategy which will be reviewed annually by the Board. A risk register is in place, which identifies the risks, assesses the impact of these risks and the proposed action that needs to be put in place to minimise the impact. 3.3 HHP will insure risks that are deemed appropriate to insure in proportion to the level of risk. This will be done in accordance with HHP’s policy on insurance.
KEY ASPECTS
4.1 The key aspects of risk management can be identified as follows:- Identification of risks Assessment of risks Decision on level of risk appetite Allocation of ownership of risk
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Development of action plan Monitoring and review arrangements 4.2 Risk management should be established and integrated within existing management processes, including planning, performance management and project management. 4.3 Risk management is used as a tool to ensure that HHP can respond to changing demands, improve performance and make the most effective use of resources.
PLANNING
5.1 Risk management needs to be an integral part of HHP’s planning and decision making process. Strategic and operational risks are identified as a key part of business planning. As an integral part of the Business Planning process HHP defines the level of risk capacity and score accordingly. 5.2 The identification of risks should be considered at the planning stage so that decisions on future priorities and projects are made with knowledge of potential risk. 5.3 Approved projects include risk management in the implementation plan and post implementation evaluation.
RISK CATEGORIES
Strategic
6.1 Risks which affect the planning by the organisation, partnership arrangements and those created by the establishment of the organisation. Operational 6.2 Risks which relate to the delivery of investment on the ground. Risks in this area could include issues such as site contamination, procurement matters, staffing and compliance. Financial 6.3 Risks which include the potential impacts and requirements of obtaining private sector funding, loss of income or increase in expenditure.
PRIORITISING RISK
7.1 Generally, the identification of risks will result in a long list of potential events. These risks are not equally likely to occur and the impact of each risk will not be the same. Some risks will have a major affect on the financial stability of the organisation or its service provision while others will not have a material effect on the financial stability of the organisation or its service provision. 7.2 Risks can be prioritised using a combination of likelihood of the event happening and the level of impact which the event could have. Risks which are in the high impact and high likelihood category will be given the higher priority. 7.3 The Risk Register reflects the level of priority.
2 | P a g e GOVERNANCE ARRANGEMENTS
8.1 The Board is responsible for ensuring the adequacy of the Partnership’s risk management framework and in particular that they are aware of and understand key business risks in a changing environment. 8.2 The Audit & Risk Committee will take an overview of risk systems on behalf of the Board. Each meeting of the Committee reviews the Risk Register. 8.3 The Audit & Risk Committee will make arrangements to identify, review, evaluate and manage risk and consider the reports by officers on their evaluation of key business risks. 8.4 All reports to the Board shall include a comment on any aspect of risk which has been identified in implementing a recommendation.
ALLOCATION OF OFFICER FOR EACH RISK
9.1 Individual Officers should be assigned responsibility for key risks. This ensures that the responsibility for further work on a particular risk is clearly identified. 9.2 The Executive Team are responsible for: Setting the risk management framework; Assessing risks based on recommendations from the Risk Co-ordinator and Team Leaders Ensuring the process is operated effectively and efficiently and Reporting to the Audit & Risk Committee and Board. 9.3 The Risk Co-ordinator, Team Leaders and staff are responsible for the day to day management of the process and for identifying, categorising risk and reporting to Executive Team. 9.4 The Corporate Resources Administration Officer is the designated Risk Co- ordinator. The Corporate Resources Officer will deputise in the absence of the Risk Co-ordinator. The Risk Co-ordinator will ensure that staff are aware of their roles and responsibilities, that the risk registers are maintained, reviewed and updated and that the appropriate reporting is carried out.
REPORTS
10.1 The Risk Register is reviewed and updated on an ongoing basis by those staff given delegated responsibility. 10.2 The Risk co-ordinator will ensure regular reports to Executive Team on the medium and high level risks prior to each meeting of the Audit & Risk Committee. 10.3 The Risk Co-ordinator will ensure that the Audit & Risk Committee receive reports on the Risk Register at each meeting. 10.4 The Chief Executive will provide the Board with an annual update of HHP’s Risk Strategy. 10.5 Risk will be considered by the Board and Standing Committees as part of the routine operations decision making process on all aspects of HHP’s activities.
3 | P a g e
RISK CAPACITY
11.1 HHP will determine at its Board Business Planning Day its risk capacity annually taking account of: An agreed level of financial loss that is acceptable on all identified and new potential risk An assessment level of the number of potential risks that may materialise at any one time. The limit of free reserves that are available to absorb potential losses of any new projects
RISK MANAGEMENT CYCLE TIMETABLE
12.1 HHP will operate an annual risk management cycle based on the Business Year. This cycle will have the following key milestones:
DATE ACTIVITY RESPONSIBILITY April Annual review of Risk Strategy Chief Executive / Executive Team June Report on Annual Review of Risk Chief Executive Strategy to Audit & Risk Committee Each meeting of Audit & Risk Risk Co-ordinator & Committee will review the Risk Executive Team Register December Agree risk capacity for next Executive & Board business year Business Planning Day December Map risks to Strategic Objectives Executive & Board Business Planning Day February Report on risk capacity from Executive/Risk Co- Business Planning Day to Board ordinator
MONITORING AND REVIEW OF POLICY
13.1 Responsibility for monitoring the application of this policy will rest with the Chief Executive. 13.2 The policy will be reviewed every year with amendments being made as appropriate and communicated to all staff and relevant stakeholders.
HANGE HISTOR
4 | P a g e POLICY CHANGE HISTORY
Version Change Applied Date By Revised Risk Management Cycle 2.0 June 2014 A Lamont Timetable 3.0 Minor amendments June 2015 A Lamont 4.0 Review and no changes June 2016 A Lamont Minor amendments to reflect 5.0 changes in management June 2017 Dena Macleod arrangements Par 9.2 6.0 Minor amendments June 2018 Dena Macleod
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INTERPRETATIONS & ABBREVIATIONS
The following interpretation and abbreviations are used in this policy:
Word Interpretation HHP or Partnership Hebridean Housing Partnership Board Means the Board of the Hebridean Housing Partnership Board Members All Members of the Board including co-opted Members
All references to the masculine gender in this policy shall read as equally applicable to the feminine gender
HHP is a registered society under the Co-operative and Community Benefit Societies Act 2014, Registered Number: 2644R(S),Registered Office: Creed Court, Gleann Seileach Business Park, Willowglen Road, STORNOWAY, Isle of Lewis HS1 2QP. It is a charity registered in Scotland, Charity Number:SCO35767, registered as Registered Social Landlord with the Scottish Housing Regulator, Registration Number:359 and registered as a Property Factor, Registration Number PF000183 Email: [email protected] Web: www.hebrideanhousing.co.uk Phone:0300 123 0773
6 | P a g e ITEM NO 14
Making our house your home
NAMING A HOUSING DEVELOPMENT POLICY Board 27 June 2018
Report by Chief Executive
Purpose of Report
1.1 The purpose of this report is to submit the Naming a Housing Development Policy for approval. Summary
2.1 The Naming a Housing Development Procedure required to be updated. 2.2 The procedure has been reviewed and updated in a Policy format. 2.3 There are no significant changes. 2.4 Details of the Comhairle’s Gaelic policy are included at 10.2 in relation to street signage. Competence
3.1 There are no legal, financial or other constraints to the recommendations in this report being implemented. Recommendations
4.1 It is recommended that the Board approve the Naming a New Development Policy at appendix 1.
APPENDIX 1 Naming a Housing Development Writer of Report: Katrina Rowlands Tel: 0300 123 0773
Katrina Rowlands 30 April 2018 Competence
Financial 5.1 There is no financial constraint arising from the recommendation to this report being implemented. Legal 6.1 There are no legal implications arising directly out of consideration of this report. Regulatory Guidance 7.1 The relevant Regulatory Standards are:
Standard Sections
2 The RSL is open about and accountable for what 2.2 & 2.3 it does. It understands and takes account of the needs and priorities of its tenants, service users and stakeholder. And its primary focus is the sustainable achievement of these priorities
Risk 8.1 There is no specific risk associated with consideration of this report.
Report Details
Policy Review 9.1 The procedure for Naming a Housing Development was approved by Operations Committee in June 2008. 9.2 The procedure has been fully reviewed and is now formatted as a policy. Comhairle Gaelic Policy 10.1 The Planning and Technical Services departments of the Comhairle have been consulted with to check their policies and whether HHP are required to comply with these policies. 10.2 The Comhairle’s Gaelic policy in relation to street names states: Street names • All street names in the Western Isles will be bilingual with the Gaelic name first and in a bolder type to give prominence to the language 10.3 Following discussion with Technical Services and the Planning Department there is no requirement on HHP to comply with this policy. 10.4 Our policy to name rural developments in Gaelic and Stornoway/Balivanich developments in English would make it difficult to follow the Comhairle’s Gaelic policy and many of our existing developments would not fit in to this policy. 10.5 HHP’s policy states that signage will not be translated. 10.6 Item 7.4 of the policy states that Gaelic names will also be registered with the Gazetteer in English. This is to ensure the emergency services can locate the address quickly in emergency response situations.
Katrina Rowlands 30 April 2018 APPENDIX 1
Naming A Housing Development Policy
Effective Date: 28 June 2018 Review Date: June 2021 Approved by HHP Board: TABLE OF CONTENTS INTERPRETATIONS & ABBREVIATIONS
INTRODUCTION ...... 2 AIMS ...... 2 BACKGROUND ...... 2 NAMING CONVENTION ...... 2 CONSULTATION ...... 3 SIGNAGE...... 3 TIMING & APPROVAL ...... 3 MONITORING AND REVIEW OF POLICY ...... 3 POLICY CHANGE HISTORY ...... 4 INTERPRETATIONS & ABBREVIATIONS ...... 5
1 | P a g e Naming a Housing Development Policy
INTRODUCTION
1.1 This policy covers the naming of all Hebridean Housing Partnership new developments.
AIMS
2.1 To provide a clear policy for naming all future new developments. 2.2 To clarify our policy on Gaelic and English street signage. 2.3 To establish a review period for the policy.
BACKGROUND
3.1 An approved Committee paper dated 24 June 2008 set out the procedure for naming a new housing development. 3.2 The approved Committee paper has now been reviewed and placed in the appropriate policy format.
NAMING CONVENTION
4.1 Development names will normally be in English in Stornoway Town, Balivanich, Tarbert and Castlebay and Gaelic elsewhere. 4.2 Development names should reflect the history or landscape of the area being developed. The details of any names should be sense checked. 4.3 Generally a development will not be named after an individual unless there is compelling historical connection with the development site. Developments will not be named after living individuals. 4.4 For most development names one of the following suffixes will be presumed (or its Gaelic equivalent) Street Close Road Square Lane Terrace Place Crescent If any other suffix is to be used the Board will record the reason for its use. 4.5 No development should start with “The” .
2 | P a g e CONSULTATION
5.1 Consultation on the naming of a new development will take place before Board approval and consultees will include: a) Local Councillor; b) Local Historic Society; and c) Chair of Local Community Council or Residents/Tenants Associations 5.2 Where a range of names has been proposed, following consultation, a shortlist of 3 will be considered by Board.
SIGNAGE
6.1 Development name signage will be in place prior to the occupation of the houses. 6.2 Development names will appear in the language in which they are named and will not be translated on signage.
TIMING & APPROVAL
7.1 The process for naming housing developments should normally be triggered at the point of tender acceptance. It should be completed in time for the name to be registered with the Local Authority and to be notified to utility companies in good time for connections to be arranged. 7.2 The determination of names for HHP housing developments will be approved by Board and then submitted to the Data Custodian of CnES (National Street Gazetteer (NSG) custodian) to officially register the addresses. 7.3 Comhairle Nan Eilean Siar under the Civic Government (Scotland) Act 1982, section 97, has the responsibility to name and number streets for housing developments and to name and number new developments. They also have responsibility to rename and renumber existing developments in consultation with the Local Members, except where the name in question involves a serving, or former Member, of the Comhairle. 7.4 For the purpose of the emergency services, where developments have a Gaelic name the English equivalent will also be provided for the Gazetteer. Both names can be inputted in the NSG.
MONITORING AND REVIEW OF POLICY
8.1 It is the responsibility of the Development Manager to conduct a review of the policy. 8.2 The review shall be conducted every three years.
3 | P a g e ISTOR
POLICY CHANGE HISTORY
Version Change Applied Date By 1.0 Created 28 June 2018 Katrina Rowlands
4 | P a g e INTERPRETATIONS & ABBREVIATIONS
The following interpretation and abbreviations are used in this policy:
Word Interpretation HHP or Partnership Hebridean Housing Partnership Board Means the Board of the Hebridean Housing Partnership Board Members All Members of the Board including co-opted Members
All references to the masculine gender in this policy shall read as equally applicable to the feminine gender
HHP is a registered society under the Co-operative and Community Benefit Societies Act 2014, Registered Number: 2644R(S),Registered Office: Creed Court, Gleann Seileach Business Park, Willowglen Road, STORNOWAY, Isle of Lewis HS1 2QP. It is a charity registered in Scotland, Charity Number:SCO35767, registered as Registered Social Landlord with the Scottish Housing Regulator, Registration Number:359 and registered as a Property Factor, Registration Number PF000183 Email: [email protected] 5 | P a g e Web: www.hebrideanhousing.co.uk Phone:0300 123 0773 ITEM NO 15
Making our house your home
BUSINESS PLAN 2015/16 – 2019/20 MONITORING REPORT Board 27 June 2018
Report by Chief Executive
Purpose of Report
1.1 To enable the Board to monitor progress on the Business Plan Action Plan agreed in March 2018. Summary
2.1 The 5 year Business Plan 2015/16 – 2019/20 was updated and approved by the Board on 21 March 2018. 2.2 The Business Plan Objectives Monitoring report is at Appendix 1 and shows progress being made on the agreed actions. Competence
3.1 There are no legal or financial constraints arising from the recommendations in this report. Recommendations
4.1 It is recommended that the Board note the progress in the Business Plan Objectives Monitoring report at Appendix 1.
APPENDIX 1 Business Plan Action Plan Background Papers None Writer of Report Dena Macleod Tel: 0300 123 0773
Jackie Macleod 8-June-18 APPENDIX 1
BUSINESS PLAN OBJECTIVES - MONITORING REPORT 2015/16 TO 2019/20
OBJECTIVE 1 - Placing tenants at the centre of everything we do, and engaging with the wider community
REF ACTION REQUIRED MILESTONES TIMEFRAME LEAD OFFICER PROGRESS 1.1 Provide opportunities for Annual report of Director of Work ongoing with Western Isles tenants to engage in service opportunities provided Operations Housing Association review and design Communities Forum. Repairs scrutiny group meeting on regular basis 1.2 Continue to support and work Review of Tenant Director of Completed June 2016. Update with Western Isles Housing Participation Strategy Operations planned September 2018. Association Communities Hold tenant events in Annually Area Managers All events for 2016 & 2017 held Forum to ensure tenants Stornoway, Tarbert, & Service voices and views are heard Events for 2018 planned Barra, Balivanich and Development North & South Uist Manager Review staff resource May 2017 Service Completed for tenant involvement Development Manager Tenant Participation September Service Completed. Reviewed annually. Action Plan-delivering 2014 Development Next review September 2018. key objectives Manager 1.3 Engage wider community Contribute actively to Chief Executive Membership of CPP & Quality of Community Planning & Director of Life sub group. Membership of Partnership Operations IJB Strategic Group and locality Management and groups Outcome Groups OHCPP Board Member Chief Executive Member of Partnership
1 | P a g e BUSINESS PLAN OBJECTIVES - MONITORING REPORT 2015/16 TO 2019/20
REF ACTION REQUIRED MILESTONES TIMEFRAME LEAD OFFICER PROGRESS
Priority Outcome Chief Executive Membership of the three priority Group groups Sustainable Population Priority Group Sustainable Economic Growth Priority Group Improving Quality of Life Priority Group By Executive Team Chief Executive Membership of Child Protection Committee Director of Membership of Health & Social Operations Care Planning Group and Community Justice 1.4 Build partnership and identify Opportunities Director of Work ongoing on poverty further opportunities to identified Operations awareness through Poverty improve life outcomes for Action Group and Welfare tenants and residents Reform Officers Group Hebrides Energy launched with Our Power to deliver lower fuel prices Lobbying of SSE ongoing with partners locally and Highlands & Islands Group
2 | P a g e BUSINESS PLAN OBJECTIVES - MONITORING REPORT 2015/16 TO 2019/20
REF ACTION REQUIRED MILESTONES TIMEFRAME LEAD OFFICER PROGRESS
Clauses and initiatives to deliver Community Benefit incorporated into 2015 - 2019 Investment Framework 1.5 Seek funding Ongoing Bid submitted to National Grid opportunities to Warm Homes Fund but support service unsuccessful development
1.6 Develop customer centered Team building day June 2017 Executive Team Team Day held 7 June 2017 – culture in individuals and held feedback collated and Action teams Plan prepared. Team Day for 2018 arranged for 20 June 2018 1.7 Review the current structure of Rules Review May 2017 Chief Executive Completed Board Membership in May in Rules Update Sept 2017 Chief Executive Completed in 8 Nov 2017 light of ONS classification
3 | P a g e BUSINESS PLAN OBJECTIVES - MONITORING REPORT 2015/16 TO 2019/20
OBJECTIVE 2-Keeping Rents Affordable
REF ACTION REQUIRED MILESTONES TIMEFRAME LEAD OFFICER PROGRESS
2.1 Identify cost of implementing Decision taken on March 2020 Director of On hold due to Universal Credit, proposed rent structure whether Finance & but rents structure options have implementation is Corporate been presented to the Finance affordable Services Working Group in October 2017. Rent Structure Review Plan presented to November Board 2.2 Consult on proposed rent To be determined by March 2020 Director of Implementation plan to be structure above Operations developed by March 2020 2.3 Carry out a study on Affordability Study 20 June 2019 Director of Scope of work to be clarified. affordability of rents commissioned Operations Initial investigation being carried out through Stock Condition Survey household survey 2017/18 – Questions being asked in Tenant Satisfaction Survey Complete initial April 2018 Director of Results of household survey assessment Operations carried out via Stock Condition Survey awaited. Further survey to be carried out along with Tenant Satisfaction survey 2018. Assess Impact May 2018 Director of Pending Stock Condition Survey Finance & completion. Corporate Services 2.4 Identify overhead costs v Define overhead v 30 Director of Initial work done – appropriate direct service delivery and direct identifying September Finance & benchmarking partners to be benchmark these benchmarking 2018 Corporate selected
4 | P a g e BUSINESS PLAN OBJECTIVES - MONITORING REPORT 2015/16 TO 2019/20
REF ACTION REQUIRED MILESTONES TIMEFRAME LEAD OFFICER PROGRESS partners Services
2.5 Explore opportunities with Development of 31 December Corporate Report to Board November 2016 partners to achieve savings Procurement Strategy 2016 Resources Officer 2.6 Deliver new build programme Analysis of costs of 31 May 2018 Executive Team Development Review is in a more costs effective way current approach underway by the Development reducing per unit cost Manager
5 | P a g e
BUSINESS PLAN OBJECTIVES - MONITORING REPORT 2015/16 TO 2019/20
OBJECTIVE 3-Investing income in a sustainable way
REF ACTION REQUIRED MILESTONES TIMEFRAME LEAD OFFICER PROGRESS
3.1 Better understand the needs Customer profiles for February 2018 Service Completed of our tenants by improving tenants affected by Development the collection and the use of Bedroom Tax Manager customer profile data and Profiles for impact of February 2018 Service Process developed and being thereby target efforts to assist Universal Credit Development refined as regulations change. maximizing benefit uptake Manager and manage introduction of Initial work completed Universal Credit
3.2 Develop IT systems to enable IT system in place February 2018 Service Complete recording and management Development of customer data Manager
3.3 Use Tenant Participation Mechanisms in place Annual review Director of Contact made with groups and Development Services from of strategy Operations Community Associations TPAS to create September Informal tenants group set up communication and 2018 involvement mechanisms TPAS social media page set up Scrutiny Group in place Approximately 20 groups and community representatives in place 3.4 Carry out follow up Tenant Action Plan to Board November Service Completed Satisfaction Survey Action 2015 Development Plans Manager
6 | P a g e BUSINESS PLAN OBJECTIVES - MONITORING REPORT 2015/16 TO 2019/20
REF ACTION REQUIRED MILESTONES TIMEFRAME LEAD OFFICER PROGRESS
Deliver Plan November Service Completed 2016 Development Manager 3.5 Carry out Tenant Satisfaction Survey complete August 2018 Service Survey in progress Survey Development Manager 3.6 Work with partners to deliver Fuel poverty report November Investment Actions largely complete the affordable warmth 2017 Manager Partnerships in place with SSE strategy for our tenants and Citrus and local agencies 3.7 Identify further works to Develop and cost 30 September Investment Complete. Further measures improve energy efficiency of proposals for next 2018 Manager being evaluated to improve homes and seek to fund a stage of insulation under-floor insulation. programme to deliver this works Proposal from SSE for Swedish Timber properties obtained Window double 2016 Investment Complete glazing programme Manager complete Insulation programme 2016-2019 Investment Works currently being carried within framework Manager out using Eco/Government funding 3.8 Action Plan for SHQS Abeyances to be 2016-2019 Investment Abeyances being addressed as abeyances and exemptions dealt within time Manager opportunity arises frame of investment plan Exemptions Investment Heating programme continues Manager to address exemptions
7 | P a g e BUSINESS PLAN OBJECTIVES - MONITORING REPORT 2015/16 TO 2019/20
REF ACTION REQUIRED MILESTONES TIMEFRAME LEAD OFFICER PROGRESS
Programme excluding Investment 2016/17 complete. 2017/18 abeyances Manager works ongoing. Tendering underway for 2018/19 works 3.9 Continue to strengthen 6 Chief Executive Members of Health & Social partnership working with month/annual & Director of Integration Planning group CNES, TIG, Greenspace, review for Operations Meeting with TIG/CNES community organisations etc feedback Members of Western Isles Fuel Poverty Action Group & ESCO Working with Community Trusts 3.10 Engage with CNES and other Contribute to July 2017 Chief Executive Participation in MOWG Community Planning Partners development of Local & Member of Community to identify housing Housing Strategy and Director of Planning Partnership Population requirements for future highlight HHP priorities Operations Workgroup population demographic Contribute to LOIP projections LHS & SHIP completed 3.11 Ongoing work to co-ordinate Business Planning Executive Team Meeting held with Chair of all strategic plans in relation to Session January 2018 Housing & Communities housing Committee 3.12 Contribute to Health & Social Participate in Health & March 2016 Chief Executive Membership of Health & Social Integration Plan Social Care Care Planning Group. Political Integration Forum feed in to new build programme – special needs 3.13 Develop and agree Asset Strategy in place May 2016 Investment Complete Management Strategy Manager Update reported to Board – Review Asset Management Annual review May 2018 Asset & May 2017 & May 2018 Strategy undertaken Contract Annual review May 2018 Manager 8 | P a g e BUSINESS PLAN OBJECTIVES - MONITORING REPORT 2015/16 TO 2019/20
REF ACTION REQUIRED MILESTONES TIMEFRAME LEAD OFFICER PROGRESS
3.14 Work with partners to address Reduce % of tenants in Re-survey in Investment Membership of Hebrides Energy- fuel poverty fuel poverty from 63% 2017/18 Manager Partnership with Our Power to under 60% launched in March 2018
Membership of local Fuel Poverty Group Working with CAB and Citrus Energy to promote advice and assistance Monitoring project with CES successfully completed Thermal imaging technology introduced Monitoring process for individual houses in place. Stock condition household survey results awaited Engagement with key Meetings held with OFGEM via stakeholders to inform Investment Working Group and decision CNES and TIG invited to contribute Working to support CNES with lobbying of SSE Working with Highlands & Islands Group to pursue projects Joint response via Highlands Group to fuel poverty
9 | P a g e
BUSINESS PLAN OBJECTIVES - MONITORING REPORT 2015/16 TO 2019/20
REF ACTION REQUIRED MILESTONES TIMEFRAME LEAD OFFICER PROGRESS consultation February 2018 3.15 Prepare Action Plan for the Plan agreed Achieve Investment EPC’s issued after every heating Energy Efficiency Standard for EESSH by 2020 Manager replacement, C.O.T and Measured through Social Housing (EESSH) insulation works ARC on a yearly basis Review in 2017 S.C.S will add additional EPC information 3.16 Commit 100% of Scottish Grant committed % 31 March Director of Development Plan updated Government grant allocation 2020 Operations and shows 13% currently for development committed with plans to commit 30% in 2018/19 and 57% in 2019/20.
10 | P a g e BUSINESS PLAN OBJECTIVES - MONITORING REPORT 2015/16 TO 2019/20
OBJECTIVE 4 – Delivering continuous improvement
REF ACTION REQUIRED MILESTONES TIMEFRAME LEAD OFFICER PROGRESS
4.1 Complete Self Assessment Plan complete Inspection Corporate Completed. Accreditation Plan November Governance received 1 December 2015 2015 Manager Self Assessment inspection 4.2 Re-assess self assessment Award achieved February 2018 Corporate Committed to Excellence methodology Governance Assessment – 2 Star Manager accreditation awarded on 23 January 2018, which is valid for 2 years 4.3 Implement new performance New P.I Report – more January 2018 Corporate KPI’s were revised prior to last measures agreed by Finance in line with ARC Governance Business Planning session, Working Group linking requirements Manager updated and incorporated into performance with resources Business Plan. Will continue to seek feedback on KPI’s to incorporate into Performance Report, in line with QS Improvement Plan 4.4 Arrange to visit 2 of the top Benchmarking report June 2018 Corporate Visit to top performing peers to performing RSL’s in peer group revised targets Governance be arranged based on agreed to benchmark X P.I Manager Performance Indicators which are in focus and identified as key improvement areas. Report linking monthly Performance Report to all indicators and historical KPI’s
11 | P a g e BUSINESS PLAN OBJECTIVES - MONITORING REPORT 2015/16 TO 2019/20
REF ACTION REQUIRED MILESTONES TIMEFRAME LEAD OFFICER PROGRESS
4.5 Develop peer review against Partners identified and December Corporate Peers reviewed prior to Business top quartile RSL’s information obtained 2017 Governance Plan being finalised to Manager determine where HHP want to be 4.6 Identify duplication and Detailed process maps inefficiencies in processes and developed for key streamline these. areas including: Service Investment Investment Development Investment process map complete complete Manager January 2016 Factoring August 2017 Factoring process mapped and being reviewed Repairs August 2017 Process mapped IT development completed Initial phase of gateway for contractor completed
12 | P a g e BUSINESS PLAN OBJECTIVES - MONITORING REPORT 2015/16 TO 2019/20
OBJECTIVE 5 –Continue to provide services of the highest quality whilst delivering value for money
REF ACTION REQUIRED MILESTONES TIMEFRAME LEAD OFFICER PROGRESS
5.1 Improve core service Arrears < 2.5% of gross Quarterly Area Manager Year end figure of 1.59% for performance on range of debit (to be reviewed current tenants achieved indicators to achieve top as Welfare Reform quartile performance develops) Void loss < 0.8% Monthly & Area Manager Ahead of target when low End of Year demand excluded. Low demand is having significant negative impact on performance Average re-let time Monthly & Area Manager Average re-let @ 18.5 days in (excluding difficult to End of Year 2017/18 let less than 20 days) Performance continues to be affected by low demand in some areas Repairs on target > On Asset & Contracts Contractual Performance at 95% contractual Manager 96% on target target Reporting systems revised and Reviewed implemented to enable monthly & reporting from Active H system annually 5.2 Report on all indicators that Report provided September Corporate Prepared for Business Plan in are in top quartile Governance February 2017 Manager
13 | P a g e BUSINESS PLAN OBJECTIVES - MONITORING REPORT 2015/16 TO 2019/20
REF ACTION REQUIRED MILESTONES TIMEFRAME LEAD OFFICER PROGRESS
5.3 Improve customer access to Further develop December I.T Officer Website has been rebuilt information and service website to provide 2016 Corporate New added functionality better information, Resources Manager added for improved mobile improve accessibility phone access to services – on-line services available Communication consultants appointed for 6 months
5.4 Empower individuals to Review delegated Executive Team Meeting with Manager to deliver for customers authorities review and implement Refresher event on Review of Pay and Grading March 2019 delegated authorities will include updating for all staff delegated authorities
5.5 Improve performance 75% of relevant ARC 31 May 2017 Corporate Of 18 reports in Performance reporting and management reports from Active H Governance Report, 7 are ARC relevant systems to provide a tool to for ARC submission Manager & Service and 3 are available to access drive performance 2017 Development directly from Active-H Manager
5.6 Achieve Committed to Implement Self February Executive Team Achieved in January 2018 Excellence accreditation Assessment Action 2018 Corporate Plan Governance Officer Review progress
14 | P a g e BUSINESS PLAN OBJECTIVES - MONITORING REPORT 2015/16 TO 2019/20
REF ACTION REQUIRED MILESTONES TIMEFRAME LEAD OFFICER PROGRESS
5.7 Repairs Service Review (Part Instigate long term 2020 Director of Board agreed in February of wider review of services project on review of Operations 2018 to re-procure service which are provided future service. from 2020 externally) Team in place to review bringing repairs service in house 5.8 Improve services to factored Written procedure in March 2017 Service Process review in progress properties and transparency place Development
of charges. Manager & Area
Manager Visit other Housing December Associations 2018 experienced in factoring 5.9 Value for Money – develop Value for Money 30 Director Finance & Ground work on measure approach Strategy prepared September Corporate Services underway 2018 5.10 Develop Publish service 30 Service Tenant Report published measures/definitions of standards and targets September Development October 2017 effectiveness and efficiency as part of Charter 2017 Manager & Finance
reporting & Business Services Manager 5.11 Publicise quality standards To be incorporated By 31 August Service Tenant Report published for customers into above & leaflets each year Development October 2017 for each service Manager & provided as they are Corporate developed Governance Manager 15 | P a g e
BUSINESS PLAN OBJECTIVES - MONITORING REPORT 2015/16 TO 2019/20
REF ACTION REQUIRED MILESTONES TIMEFRAME LEAD OFFICER PROGRESS
5.12 Develop tenants report. Review approach to September Corporate Feedback for current year Feedback from stakeholders ARC report annually 2018 Governance incorporated. This will be an required Manager annual process
5.13 Determine business case for Review Director of Position with UHI providing student and/or need/demand and Operations developments being clarified furnished accommodation property type and prior to progressing further. using hard to let houses location 31 March Current proposal successful at 2018 planning appeal stage Business modelling for Director of Finance Position with UHI student & Corporate developments being clarified accommodation in Services prior to progressing further Stornoway 5.14 Identify costs/unit in Monitor contracts and Nov 2018 Asset & Contract Ongoing analysis of costs. investment and repair at budget setting to Manager Review to be carried out as programmes and identify increase scope of part of the investment implications of reducing investment procurement exercise these programme 5.15 Subsidiary activity – review Subsidiary active 31 March Director of Finance Resources Team restructured options that subsidiary can 2019 & Corporate to provide support for the undertake Services development of the Subsidiary 5.16 Undertake review of impact Survey successful March 2016 Chief Executive Development Workgroup of LIFT properties in the applicants. review following completion Stornoway area of Local Housing Strategy Carry out market December analysis to ascertain 2017 16 | P a g e BUSINESS PLAN OBJECTIVES - MONITORING REPORT 2015/16 TO 2019/20
REF ACTION REQUIRED MILESTONES TIMEFRAME LEAD OFFICER PROGRESS demand
5.17 Undertake review of Annual Allocation June – Director of June 2016 demand/need for 3+ Report to Board Annually Operations Update to Business Planning bedroom houses in some Day – January 2016 and rural areas e.g South Lochs, Board report March 2016 Bragar, Uig, North Uist, South Uist & Barra Report to Board – June 2017 Update in June 2018 5.18 Provide temporary Annual Review Planned for June 2018 accommodation to CNES as Annually Director of required Operations Review of allocation to Annual Review homeless applicants as required by CNES 5.19 Review SLA with Homeless Annual Review 4th quarter of Area Manager Reviewed in March annually Service with CNES financial year 5.20 Review arrangements with Arrangements to be Director of Discussion ongoing regarding Foyer in relation to leased concluded Operations operating model. properties Operating model to Liaison arrangements in place be agreed Meeting arranged for 12 June 2018 5.21 Work to prevent Joint working Ongoing Liaison arrangements in place homelessness amongst HHP arrangements in with CPN Team and CAB Area Managers tenants through tenancy place with partners Quarterly meetings to breakdown e.g CPN Team, CAB continue and Social Work
17 | P a g e BUSINESS PLAN OBJECTIVES - MONITORING REPORT 2015/16 TO 2019/20
REF ACTION REQUIRED MILESTONES TIMEFRAME LEAD OFFICER PROGRESS
In place – ongoing
Tenancy sustainability Ongoing Sustainability rate at 81% for after 1 year > 90% new tenancies 5.22 Provide advice and Eviction rate < 0.15% Ongoing ARC lead Housing Officers continue to assistance to housing monitoring work with tenants to aim to applicants on options and achieve targets ensure effective signposting
Explore formal To start in July Service Scottish National Standards for accreditation on 2017 with Development Information and Advice advice and continuous Manager/Corporate Providers assistance refreshers Resources Admin Type 1 Accreditation and Officer advice UK Membership being researched Applications processes under review Develop housing Service Universal Credit training for all options information for Development in November 217 applicants to support Manager/Area Signposting to CAB, HB, advice provision Manager Advocacy, Catch 23, CPS’s – ongoing at sign up stage and before
18 | P a g e BUSINESS PLAN OBJECTIVES - MONITORING REPORT 2015/16 TO 2019/20
OBJECTIVE 6 – Being a good employer that attracts and retains high quality staff
REF ACTION REQUIRED MILESTONES TIMEFRAME LEAD OFFICER PROGRESS
6.1 Appraisals and training All SDA’s completed on By 31 August Chief Executive Review of process underway needs request to be time each year 100 % complete for 2017 completed. 6.2 Training Plan to be Training Plan prepared Following SDA Admin Officer Provided to Board in prepared. completion (Corporate September 2017 Training Plan delivered Resources) Training Plan to be delivered November each Training Plan reviewed year Effectiveness of training to be assessed 6.3 Staff survey Survey undertaken September 2015 Executive Team Action Plan being implemented Review of results November 2015 6.4 Annual pay review Recommendation for June 2018 Chief Executive Offer has been made 2018/19 6.5 Review grading structure Recommendation on 2017/18 Chief Executive External consultants to grading support work appointed. 2018/19 structure/implementation Initial work on review of (implementation) organisational structure underway. Report to Board in June 2018 6.6 Review opportunities to Review undertaken 31 March 2018 Chief Executive Modern Apprentice participate in Modern appointed Apprentice Scheme, provision of trainee posts and secondments
19 | P a g e BUSINESS PLAN OBJECTIVES - MONITORING REPORT 2015/16 TO 2019/20
REF ACTION REQUIRED MILESTONES TIMEFRAME LEAD OFFICER PROGRESS
6.7 Review of induction process New induction process September 2017 Director of New member of staff implemented Finance & inducted in May. Induction Corporate process revised with detailed Services 1st week plan in diary ensuring they had the correct training and completed Risk Modules. This has been replicated with the other new starts and will be formally added to the induction process 6.8 Review of appraisal system New or revised system September 2018 Chief Executive Initial review underway
20 | P a g e BUSINESS PLAN OBJECTIVES - MONITORING REPORT 2015/16 TO 2019/20
OBJECTIVE 7 – Working with partners to contribute to the economic wellbeing of communities throughout the Outer Hebrides that resources will allow.
REF ACTION REQUIRED MILESTONES TIMEFRAME LEAD OFFICER PROGRESS
7.1 Support local suppliers and Source majority of Ongoing Investment Support of local economy contractors. supplies locally Manager/Corporate now included as formal Resources Officer aspiration/requirement of HHP’s Procurement Strategy 7.2 Apprenticeships – All major contracts to Ongoing Asset & Contracts In place and ongoing commitment from include recruitment & Manager/Investment contractors to recruit and retain apprentices Manager retain apprentices. 7.3 Support CNES/CPP Strategy Working in partnership Ongoing Chief Executive of making Stornoway a for student/lecturer University town. accommodation 7.4 Participate in Economic Ongoing Chief Executive Meetings attended Outcome Group. 7.5 Examine opportunities for Opportunities 2017-2020 Executive Team pilot projects for innovative explored developments that link with community projects 7.6 Develop an Anti Poverty Strategy prepared 31 Executive Team Initial preparation underway Strategy December 2020
21 | P a g e BOARD ITEM NO 16 A&R ITEM NO 9 Making our house your home FINANCIAL REGULATIONS Audit & Risk 26 June 2018 Board 27 June 2018 Report by Director of Finance & Corporate Services Purpose of Report
1.1 The purpose of this Report is to update the Board on the annual review of the Financial Regulations. Summary
2.1 The Financial Regulations were due to be reviewed at the June Board. However, as the Pay and Grading work has not yet concluded, it was considered prudent to defer the review until the outcome of the Pay and Grading work is known and any resulting impact on delegations understood. 2.2 The Financial Regulations review will, therefore, return to Board later in the year. Competence
3.1 There is no legal, financial, or other constraint arising from the recommendation to this report being implemented. Recommendations
4.1 It is recommended that the Board note the deferred review of the Financial Regulations.
Background Papers: HHP Rules Writer of Report: Angela Smith
Angela Smith 28-Feb-18 ITEM NO 17
Making our house your home
MANAGEMENT REPORT TO 31 MAY 2018 Board 27 June 2018
Report by Director of Finance and Corporate Services
Purpose of Report
1.1 To present the Management Report for the month ended 31 May 2018 to the Board for review. Summary
2.1 This is the Management Report to 31 May 2018 and the information is presented in compliance with regulations to provide Board Members with assurance that expenditure is within approved budgets and income collected is on target. A copy of the report is at Appendix 1. 2.2 Details of all material variances are contained in the report at Appendix 1. Competence
3.1 The legal, financial or other constraints to any recommendation in this report are contained in Paragraphs 5.1 to 6.1. Recommendations
4.1 It is recommended that the Board notes the management information at 31 May 2018 as detailed in Appendix 1.
APPENDIX 1 Management Report to 31 May 2018 Background Papers None Writer of Report Katia Petteloot Tel: 0300 123 0773
Katia Petteloot 05-Mar-18 Competence
Financial 5.1 The Board approved budgets for 2018/19 in February 2018 which projected a surplus for the year of £2,250,238. The forecasted out turn is £2,555,980. Therefore no increase in funds is needed. Legal 6.1 There are no legal matters arising from the consideration of this report. 6.2 HHP’s Financial Regulations require that this report complies with statutory requirements, accounting standards and appropriate codes of practice. Regulatory Guidance 7.1 The relevant Regulatory Standards are:
Standard Sections
2 The RSL is open and accountable for what it does. It 2.1, 2.2, 2.4 understands and takes account of the needs and priorities of its tenants, service users and stakeholders. And its primary focus is the sustainable achievement of these priorities
3 The RSL manages its resources to ensure its financial 3.1 well-being and economic effectiveness.
Risk
8.1 The key risk is that HHP does not meet its Financial Covenants on an ongoing basis. The covenant for 2018/19 has yet to be formally approved by our Funders. The covenant is forecast to be met in March 2019.
Katia Petteloot 05-Mar-18 APPENDIX 1
Hebridean Housing Partnership Registered Scottish Charity SCO 35767
Management Reports To 31 May 2018
2018/19 Hebridean Housing Partnership 2 Management Reports
Introduction The Management Reports for 31 May 2018 are attached and if Board Members or Managers have any areas of concern or would like additional information they should contact the Director of Finance & Corporate Services.
The Management Reports are made up of three sections:
Section 1:High Level Summary • Written by the Director of Finance & Corporate Services. This section shows in graphical format how HHP is performing in relation to the annual budget for 2018/19. Section 2:Management Accounts • Prepared by the Finance and Business Services Manager. Provides an Income & Expenditure Account, Balance Sheet and detailed operational budgets for the period. The Management Acounts include a more detailed commentary from Budget Managers on performance. Section 3:Key Financial Performance Measures • Prepared by the Finance and Business Services Manager including a review of Financial Covenants to provide the Board with assurance that the Covenant for 2018/19 will not be breached. Hebridean Housing Partnership 3 Management Reports
Section 1-High Level Summary
Commentary on Performance by Director of Finance & Corporate Services £ Initial approved Surplus 2,250,238 Slippage Carried Forward from 2017/18 - Virement/Adjustment - Revised Surplus 2,250,238
Changes identified this financial year Changes to Income increases/(decreases) 305,742 Cost (increases)/decreases - Depreciation - Grant Amortisation - Forecast Surplus to 31 March 2019 2,555,980
Increase in funds required to meet forecast out-turn (305,742)
The forecast out-turn being higher than the initial approved budget is mainly due to RSL Adaptations funding of £293K for 2018/19. This is offset by £293K costs in Aid & Adaptations which is reflected in the Investment programme and captured in Capital Investment.
Hebridean Housing Partnership 4 Management Reports
Expenditure
Development
Investment
Repairs & Maintenance
Management Costs
Interest
0 20 40 60 80 100 120
Above Below On Target
Income
Other Income
Grants Income
Rental Income
0 20 40 60 80 100 120
Above Below On Target
The financial covenant for 2018/19 has yet to be formally approved by our Funders. The forecast shows that the financial covenant will be met for the year ended 31 March 2019. Hebridean Housing Partnership 5 Management Reports
Section 2 Management Accounts
Page
Summary Income & Expenditure Account 6
Balance Sheet at 31 May 2018 7
Rental Income 8
Supervision & Management Costs 9
Repairs & Maintenance 10
Estate Works 11
Aids & Adaptations 12
Investment 13
Non-Housing Investment 14
Development 15
Hebridean Housing Partnership 6 Management Reports
Income & Expenditure Account
For the period ended 31 May 2018 Line CURRENT YEAR BUDGET BUDGET ACTUAL BUDGET VARIANCE BUDGET REMAINING FORECAST OUT-TURN Initial Revised to Spend to Budget Budget to Revised Revised Over/ at Budget Budget 31-May-18 31-May-18 to date date Budget Budget (under) 31-Mar-19 £ £ £ £ £ % £ % £ £ 1 Dwelling rents (net) 8,519,360 8,519,360 1,375,380 1,524,373 (148,993) -11% 6,994,987 82.11% 8,519,360 2 Non Dwelling rents (net) 13,630 13,630 2,300 6,366 (4,066) -177% 7,264 53.30% 13,630 3 Right to Buy Sales - - - 8,742 (8,742) (8,742) 8,742 8,742 4 Grant Funding 120,000 120,000 120,000 48,951 71,049 59% 71,049 59.21% 293,000 413,000 5 Other Income 42,650 42,650 10,780 7,140 3,640 34% 35,510 83.26% 42,650 6 TOTAL INCOME 8,695,640 8,695,640 1,508,460 1,595,571 (87,111) -6% 7,100,069 81.65% 301,742 8,997,382
7 Supervision & Management 2,230,743 2,230,743 457,157 361,164 95,993 21% 1,869,579 83.81% - 2,230,743 8 Response Repairs 1,372,065 1,372,065 201,365 151,568 49,797 25% 1,220,497 88.95% - 1,372,065 9 Estate Works 171,320 171,320 3,590 16,709 (13,119) -365% 154,611 90.25% - 171,320 10 Planned/Cyclical Maintenance 717,224 717,224 78,870 5,703 73,167 93% 711,521 99.20% - 717,224 11 Total Operating Expenditure 4,491,352 4,491,352 740,982 535,144 205,838 28% 3,956,208 88.09% - 4,491,352
12 Operating Surplus/(Deficit) 4,204,288 4,204,288 767,478 1,060,427 (292,949) -38% 3,143,861 74.78% 301,742 4,506,030
13 Interest received 5,000 5,000 500 1,483 (983) -197% 3,517 70.34% 4,000 9,000 14 Interest paid 438,350 438,350 65,080 46,417 18,663 29% 391,933 89.41% 438,350 15 Surplus/(Deficit) 3,770,938 3,770,938 702,898 1,015,493 (312,595) -44% 2,755,445 73.07% 305,742 4,076,680
16 Depreciation 2,720,700 2,720,700 453,450 459,772 (6,322) -1% 2,260,928 83.10% 2,720,700 17 Grant Amortisation (1,200,000) (1,200,000) (200,000) (233,579) 33,579 (966,421) 80.54% (1,200,000) 18 Surplus/(Deficit) 2,250,238 2,250,238 449,448 789,300 (339,852) -76% 1,460,938 64.92% 305,742 2,555,980
CAPITAL INVESTMENT 19 Housing Investment Programme 4,368,170 4,368,170 343,801 138,407 205,395 60% 4,229,763 96% - 4,368,170 20 Non Housing Investment 76,045 76,045 - 515 - 76,045 100% - 76,045 21 Development Programme 4,316,046 4,450,866 346,530 172,094 174,436 50% 3,780,072 85% - 4,450,866 8,760,261 8,895,081 690,331 311,016 379,831 55% 8,085,879 90.90% - 8,895,081
Commentary on Performance The main points to note are
Line 1 Dwelling Rents YTD performance is above budget due to better performance on Void loss of £21K and Bad Debt being below budget by £31K. The remainder of the variance is due to budget phasing of rental income.
Line 7 Supervision & Mgt Slippage on Stock Condition Survey and timing of the Funders Valuation cost& Audit fees contribute to the underspend in Professional Fees. Additional savings due to the timing of the annual pay award.
More detailed explanations of variances can be found on pages 8 to 14 Hebridean Housing Partnership 7 Management Reports
Balance Sheet at 31 May 2018
31 May 2018 31 March 2018 £ £ Notes Fixed Assets 1 Tangible assets-social housing 1 76,648,875 77,108,648 2 Development & Investment Programme 2 311,017 3 Tangible assets - property, plant and equipment 823,303 823,303 4 Landbank 691,166 691,166 5 Investments 2 2 78,474,363 78,623,119
Current Assets 6 Stock 241,633 241,633 7 Trade and other debtors due within one year 3 772,459 899,890 8 Debtors due after more than one year 190,711 190,111 9 Short-term deposits 4,073,533 4,062,896 10 Cash at bank and in hand 4 5,598,367 6,146,301 11 Loan to subsiduary 16,307 16,307 10,893,010 11,557,138
12 Creditors: amounts falling due within one year 5 (1,094,391) (2,501,253) Net current assets 9,798,619 9,055,885 Total assets less current liabilities 88,272,982 87,679,004
13 Creditors: amounts falling due after more than one year 6 (11,915,894) (11,877,636) 14 Deferred capital grants 7 (43,801,390) (44,034,969) 15 Pension Liability (1,136,000) (1,136,000) 16 Net Assets 31,419,698 30,630,398
Capital and Reserves 17 Share Capital 203 203 18 Revenue Reserve 31,419,495 30,630,195 31,419,698 30,630,398
Commentary on Performance Note 1 Fixed Assets Fixed Assets are shown at gross cost and are reduced by the depreciation charge for the period. Note 2 Development The value of work in progress, net of Grant, on current properties and new & Investment developments More detailed information is available in the Performance Report. Note 4 Cash HHP currently hold RTB receipts of £1.348 million and have to repay HAG of £143K with respect to RTB properties disposed. Hebridean Housing Partnership 8 Management Reports
Rental Income
For the period ended 31 May 2018 Line CURRENT YEAR BUDGET BUDGET ACTUAL BUDGET VARIANCE BUDGET REMAINING FORECAST OUT-TURN Initial Revised to Spend to Budget Budget to Revised Revised Over/ at Budget Budget 31-May-18 31-May-18 to date date Budget Budget (under) 31-Mar-19 £ £ £ £ £ % £ % £ £
1 Dwelling Rent Gross 8,882,800 8,882,800 1,436,500 1,533,354 (96,854) -7% 7,349,446 82.74% 8,882,800
2 Non Dwelling Rent Gross 15,090 15,090 2,560 6,981 (4,421) -173% 8,109 53.74% 15,090
3 Voids - Dwelling (181,040) (181,040) (30,500) (9,644) (20,856) 68% (171,396) 94.67% (181,040)
4 Voids - Other (1,460) (1,460) (260) (615) 355 -137% (845) 57.88% (1,460)
5 Bad Debts (182,400) (182,400) (30,620) 663 (31,283) 102% (183,063) 100.36% (182,400)
6 TOTAL 8,532,990 8,532,990 1,377,680 1,530,738 (153,058) -11% 7,002,252 82.06% - 8,532,989
Commentary on Performance Line 6 Total Income Bad Debts are 31K lower than budget and voids performance is better than forecast by £21K. This contributes to the net income for the year to date being above budget. The remainder of the variance is due to budget phasing. Hebridean Housing Partnership 9 Management Reports
Supervision & Management Costs
For the period ended 31 May 2018 Line Heading CURRENT YEAR BUDGET BUDGET Actual BUDGET VARIANCE BUDGET VARIANCE forecast out-turn Initial Revised to Spend to Budget Budget Revised Revised Over/ at Budget Budget 31-May-18 31-May-18 to date to date Budget Budget (under) 31-Mar-19 £ £ £ £ £ % £ % £ £
1 Salaries and Wages 1,221,930 1,221,930 203,080 180,873 22,207 11% 1,041,057 85% 1,221,930 2 National Insurance 121,770 121,770 20,400 16,657 3,743 18% 105,113 86% 121,770 3 Pension Costs 220,250 220,250 36,800 33,003 3,798 10% 187,248 85% 220,250 4 Other Employee Costs 49,500 49,500 8,776 4,485 4,291 49% 45,015 91% 49,500 5 Travel & Subsistence 33,700 33,700 3,240 2,771 469 14% 30,929 92% 33,700 6 EMPLOYEE COSTS 1,647,150 1,647,150 272,296 237,789 34,507 13% 1,409,361 86% - 1,647,150
7 Premises Costs 47,900 47,900 6,520 3,366 3,154 48% 44,534 93% 47,900 8 IT & Telecoms 221,450 221,450 33,340 31,587 1,753 5% 189,863 86% 221,450 9 Area Offices 26,040 26,040 4,340 4,188 152 4% 21,852 84% 26,040 10 Payroll & Cashdesk 14,200 14,200 3,700 1,291 2,409 65% 12,909 91% 14,200 11 External Finance Services 4,010 4,010 - 1,671 (1,671) 2,339 58% 4,010 12 SUPPLIES & SERVICES 313,600 313,600 47,900 42,103 5,797 12% 271,497 87% - 313,600
13 Postage, Printing & Stationery 40,560 40,560 7,540 7,917 (377) -5% 32,643 80% 40,560 14 Admin Furniture & Equipment 3,000 3,000 520 93 427 82% 2,907 97% 3,000 15 Training Courses 50,250 50,250 8,440 3,187 5,253 62% 47,063 94% 50,250 16 Community Support 30,140 30,140 - 1,774 (1,774) 28,367 94% 30,140 17 Health & Safety 9,250 9,250 1,240 104 1,136 92% 9,146 99% 9,250 18 Recruitment Costs 6,000 6,000 1,000 - 1,000 100% 6,000 100% 6,000 19 ADMINISTRATION COSTS 139,200 139,200 18,740 13,075 5,665 30% 126,125 91% - 139,200
20 Professional Fees 331,760 331,760 48,640 30,250 18,391 38% 301,511 91% 331,760 21 Insurance 238,600 238,600 39,860 39,244 616 2% 199,356 84% 238,600 22 Affliation Fees 44,620 44,620 18,440 5,899 12,541 68% 38,721 87% 44,620 23 Charitable Donations 5,000 5,000 5,000 - 5,000 100% 5,000 100% 5,000 24 Governance 39,850 39,850 5,630 1,715 3,915 70% 38,135 96% 39,850 25 Bank Charges 9,500 9,500 1,600 315 1,285 80% 9,185 97% 9,500 26 Public Relations/Marketing 15,080 15,080 2,510 325 2,185 87% 14,755 98% 15,080 27 CORPORATE EXPENSES 684,410 684,410 121,680 77,748 43,932 36% 606,662 89% - 684,410
28 Fees charged to capital (543,117) (543,117) (2,459) (4,295) 1,836 -75% (538,822) 99% (543,117) 29 VAT Received - Partial Exemption (10,500) (10,500) (1,000) (5,256) 4,256 -426% (5,244) 50% (10,500) 30 RECHARGES (553,617) (553,617) (3,459) (9,550) 6,091 -176% (544,067) 98% - (553,617)
TOTAL SUPERVISION AND 31 MANAGEMENT COST 2,230,743 2,230,743 457,157 361,164 95,993 21% 1,869,579 84% - 2,230,743
Commentary on performance Line 6 Employee Costs Savings due to the timing of the annual pay award.
Line 27 Corporate Exp £44K underspend is mainly driven by underspend in Professional fees due to slippage of Stock Condition Survey £11K and the timing of Funders Valuation Fee £18K. Underspend in Affiliation fees is due to budget phasing. Hebridean Housing Partnership 10 Management Reports
Repairs & Maintenance
For the period ended 31 May 2018
CURRENT YEAR Line Heading BUDGET BUDGET ACTUAL BUDGET VARIANCE BUDGET REMAINING FORECAST OUT-TURN Initial Revised to Spend to Budget to Budget to Revised Revised Over/ at Budget Budget 31-May-18 31-May-18 date date Budget Budget (under) 31-Mar-19 £ £ £ £ £ % £ % £ £
1 Responsive Repairs 800,000 800,000 116,820 75,346 41,474 36% 724,654 91% 800,000 2 Void Repairs 264,000 264,000 33,560 19,886 13,674 41% 244,114 92% 264,000 3 Handymen 124,960 124,960 21,365 17,510 3,855 18% 107,450 86% 124,960 4 GENERAL REPAIRS 1,188,960 1,188,960 171,745 112,743 59,002 34% 1,076,217 91% - 1,188,960 5 Decoration Allowance 46,530 46,530 12,170 13,940 (1,770) -15% 32,590 70% 46,530 6 Council Tax empty properties 19,800 19,800 3,260 3,456 (196) -6% 16,344 83% 19,800 7 Minor Aids & Adaptations 500 500 - - - 500 100% 500 8 Compensation 10,195 10,195 1,500 863 637 42% 9,332 92% 10,195 9 SPECIFIC ITEMS 77,025 77,025 16,930 18,259 (1,329) -8% 58,766 76% - 77,025 10 Rechargeable Repairs 48,900 48,900 8,880 26,047 (17,167) -193% 22,853 47% 48,900 11 Rechargeable Repairs Recoverable (10,700) (10,700) - (6,229) 6,229 (4,471) 42% (10,700) 12 Insurance Repairs 55,000 55,000 3,200 1,171 2,029 63% 53,829 98% 55,000 13 Insurance Claims Recoverable (17,500) (17,500) - - - (17,500) 100% (17,500) 14 RECOVERABLE EXPENDITURE 75,700 75,700 12,080 20,990 (8,910) -74% 54,710 72% - 75,700 15 Commercial Properties 1,200 1,200 200 - 200 100% 1,200 100% 1,200 16 Communal Lighting 29,180 29,180 410 (425) 835 204% 29,605 101% 29,180 17 NON DWELLING REPAIRS 30,380 30,380 610 (425) 1,035 170% 30,805 101% - 30,380 18 Planned maintenance 514,200 514,200 48,050 (2,513) 50,563 105% 516,713 100% 514,200 19 Gas Servicing 60,000 60,000 10,000 4,866 5,134 51% 55,134 92% 60,000 20 Estate Management 14,320 14,320 1,860 271 1,589 85% 14,049 98% 14,320 21 Other Servicing (incl. heating) 85,374 85,374 14,160 3,040 11,120 79% 82,334 96% 85,374 22 Stair Lifts and Door Entry Systems 2,080 2,080 950 - 950 100% 2,080 100% 2,080 23 Gutter Cleaning 32,400 32,400 3,850 - 3,850 100% 32,400 100% 32,400 24 Sewage Pumps 700 700 - 39 (39) 661 94% 700 25 Dun Berisay Heat 8,150 8,150 - - - 8,150 100% 8,150 26 CYCLICAL MAINTENANCE 717,224 717,224 78,870 5,703 73,167 93% 711,521 99% - 717,224 27 TOTAL REPAIRS & MAINTENANCE 2,089,289 2,089,289 280,235 157,271 122,964 44% 1,932,018 92% - 2,089,290 Commentary on performance Line 10 Rechargeable Repairs:
The YTD overspend of £17K is due to a higher than expected number of high value repairs attributable to poor tenancies and largely unrecoverable.
Hebridean Housing Partnership 11 Management Reports
Estate Works
For the period ended 31 May 2018 Line Heading CURRENT YEAR BUDGET BUDGET ACTUAL BUDGET VARIANCE BUDGET REMAINING FORECAST OUT-TURN Initial Revised to Spend to Budget to Budget to Revised Revised Over/ at Budget Budget 31-May-18 31-May-18 date date Budget Budget (under) 31-Mar-19 £ £ £ £ £ % £ % £ £ 1 Garage Repairs 3,110 3,110 500 - 500 100% 3,110 100% 3,110 2 Unadopted Infrastructure 112,340 112,340 120 14,830 (14,710) -12258% 97,510 87% 112,340 3 Grounds Maintenance 55,520 55,520 2,970 1,879 1,091 37% 53,641 97% 55,520 4 Paths 350 350 - 350 100% 350 5 TOTAL ESTATE WORKS 171,320 171,320 3,590 16,709 (13,119) -365% 154,611 90% - 171,319
Line 2 Unadopted Infrastructure
Overspend mainly due to £12K invoice for drainage works at Riverview. Hebridean Housing Partnership 12 Management Reports
Aids & Adaptations
For the period ended 31 May 2018 Line Heading CURRENT YEAR BUDGET BUDGET ACTUAL BUDGET VARIANCE BUDGET REMAINING FORECAST OUT-TURN Initial Revised to Spend to Budget to Budget to Revised Revised Over/ at Budget Budget 31-May-18 31-May-18 date date Budget Budget (under) 31-Mar-19 £ £ £ £ £ % £ % £ £ 1 Minor Aids & Adapations 500 500 - - 500 100% 500 Investment Programme 2 Aids & Adapations 120,000 120,000 120,000 36,204 83,796 70% 83,796 70% 293,000 413,000 3 Insulation Investment - Grants 4 Received (120,000) (120,000) (120,000) (14,702) (105,298) 88% (105,298) 88% (293,000) (413,000) To be claimed - - - 5 TOTAL AIDS & ADAPTATIONS 500 500 - 21,502 (21,502) 0% (21,002) 1% - 500 Hebridean Housing Partnership 13 Management Reports
Investment Expenditure
For the period ended 31 May 2018 Line Heading CURRENT YEAR BUDGET BUDGET ACTUAL BUDGET VARIANCE BUDGET REMAINING FORECAST OUT-TURN Initial Revised to Spend to Budget to Budget to Revised Revised Over/ at Budget Budget 31-May-18 31-May-18 date date Budget Budget (under) 31-Mar-19 £ £ £ £ £ % £ % £ £ 1 Roofs 112,140 112,140 - 626 (626) 111,514 99% 627 112,767 2 Insulation 148,057 148,057 - - - 148,057 100% - 148,057 3 Total Roofs 260,197 260,197 - 626 (626) 259,571 100% 627 260,824 4 Kitchen 256,974 256,974 49,838 490 49,348 99% 256,484 100% (663) 256,311 5 Bathrooms 198,450 198,450 28,159 (833) 28,992 103% 199,283 100% - 198,450 6 OT Aids & Adaptations 120,000 120,000 120,000 36,204 83,796 70% 83,796 70% 293,000 413,000 7 Showers 119,700 119,700 16,985 1,402 15,583 92% 118,298 99% 402 120,102 8 Heating 1,731,598 1,731,598 128,820 34,083 94,737 74% 1,697,515 98% 45,410 1,777,008 9 Rewiring - - - 498 (498) (498) 480 480 10 Smoke/C02 Detectors 62,040 62,040 - 2,387 (2,387) 59,653 96% (7,080) 54,960 11 Total Internals 2,488,762 2,488,762 343,801 74,231 269,571 78% 2,414,531 97% 331,549 2,820,311 12 Windows 69,900 69,900 - 63,550 (63,550) 6,350 9% 129,140 199,040 13 Roughcast house & wall 192,000 192,000 - - - 192,000 100% - 192,000 15 Footpaths/Drying Areas - - - 14 Fencing 220,980 220,980 - - - 220,980 100% 3,043 224,023 19 Externals 412,980 412,980 - - - 412,980 100% 3,043 416,023 Total Investment excl. Unallocated Exp/Efficiency 20 Saving 3,231,839 3,231,839 343,801 138,407 205,394 60% 3,093,432 96% 464,360 3,696,199
21 Unallocated Expenditure 1,136,331 1,136,331 - - - 1,136,331 100% (464,360) 671,971 22 Efficiency Savings ------23 Total Investment 4,368,170 4,368,170 343,801 138,407 205,395 60% 4,229,763 97% - 4,368,169
Commentary on Performance Line 6 OT Aid & Adaptions additional spend of £293K is funded by government grants of the same amount. Line 8 Heating –Slippage carried forward from 2017/18 and funded from current year unallocated budget. Line 12 Windows –Slippage of £160K carried forward from 2017/18 and funded from current year unallocated budget. Hebridean Housing Partnership 14 Management Reports
Non Housing Investment
For the period ended 31 May 2018 Line Heading CURRENT YEAR BUDGET BUDGET ACTUAL BUDGET VARIANCE BUDGET REMAINING FORECAST OUT-TURN Initial Revised to Spend to Budget to Budget to Revised Revised Over/ at Budget Budget 31-May-18 31-May-18 date date Budget Budget (under) 31-Mar-19 £ £ £ £ £ % £ % £ £ 1 Total Uist Office 3,500 3,500 - - - 3,500 - - 3,499
2 Furniture & Fittings 6,100 6,100 - - 6,100 100% 6,100 3 Office equipment 3,050 3,050 - - 3,050 0% 3,050 4 IT equipment 63,395 63,395 - - 63,395 100% 63,395 5 Total Stornoway Office 72,545 72,545 - 515 - 72,545 100% 72,545
6 Total 76,045 76,045 - 515 - 76,045 100% - 76,043 Hebridean Housing Partnership 15 Management Reports
Development Expenditure
For the period ended 31 May 2018 Line CURRENT YEAR BUDGET BUDGET ACTUAL BUDGET VARIANCE BUDGET REMAINING FORECAST OUT-TURN Initial Revised Budget to Spend to Budget to Budget to Revised Revised Over/ at Budget Budget 31-May-18 31-May-18 date date Budget Budget (under) 31-Mar-19 £ £ £ £ £ % £ % £ £ 1 New Build 8,665,800 8,405,631 1,371,510 776,006 595,504 43% 7,629,625 91% 8,405,631 2 Retentions 10,078 - - 10,078 100% 10,078 2 LIFT 1,040,235 1,004,635 303,600 127,071 176,529 58% 877,564 87% 1,004,635 3 Unallocated 3,805,000 3,805,000 - - 0% 3,805,000 4 Total Development Costs 13,511,035 13,225,344 1,675,110 903,077 772,033 46% 8,517,267 64% - 13,225,344
5 Housing Association Grant 6 New Build (5,385,400) (4,964,037) (1,328,580) (730,983) (597,597) 45% (4,233,054) 85% (4,964,037) 7 LIFT (216,000) (228,867) - - (228,867) 100% (228,867) 8 LIFT Sales (287,289) (275,274) - - (275,274) 100% (275,274) 9 Unallocated (3,306,300) (3,306,300) (3,306,300) 100% (3,306,300) 10 Total Grants (9,194,989) (8,774,478) (1,328,580) (730,983) (597,597) 45% (8,043,495) 92% - (8,774,478)
11 Private Finance required 12 New Build 3,280,400 3,441,594 42,930 45,024 (2,094) -5% 3,396,570 99% - 3,441,594 12 Retentions - 10,078 - - - 10,078 100% - 10,078 13 LIFT 536,946 500,494 303,600 127,072 176,529 58% 373,423 75% - 500,494 14 Unallocated 498,700 498,700 - - - 498,700 15 Private Finance required 4,316,046 4,450,866 346,530 172,095 174,436 50% 3,780,072 85% - 4,450,866
Commentary on Performance Overall Spend to Date The YTD underspend is due to delays with Tarbert Police Station and Back Care unit. Timber kit delivery for Stag Bakery development is due mid June. Hebridean Housing Partnership 16 Management Reports Section 3: Key Financial Performance Measures
Page
Financial Covenants 17
Key Ratios 19
Right to Buy 20
Cash flow Forecast 21 Hebridean Housing Partnership 17 Management Reports
Financial Covenants
For the period ended 31 May 2018
The revised facility agreement with our Funders has one Financial Covenant, Interest Cover. Where a deficit is projected in any financial year, the covenant is based on an absolute sum rather than a percentage, so the covenant for 2018/19 is a maximum cash flow deficit of £7,049,570. The financial covenant for 2018/19 has yet to be formally approved by our Funders and the below calculation is based on the expected covenant for 2018/19. The covenant is forecast to be met in March 2019.
Interest Cover
Covenants for 2018/19 Deficit (£7,049,570)
Forecast to 31 May 2018 £4,300,863
Tolerance available £2,748,707
Reduction in expenditure required to achieve covenant £0 Hebridean Housing Partnership 18 Management Reports
Annual Cash flow Deficit
Line Detail Current Position Forecast Income £ £ 1 Dwelling rents (net) 1,524,373 8,519,360 2 Non Dwelling rents (net) 6,366 13,630 3 Right to Buy Sales 47,000 - 4 Grant Funding 48,951 413,000 5 Other Income 7,140 42,650 6 Grant received for New Build 730,983 4,964,037 7 Sale of LIFT received - 275,274 8 Grant on LIFT received - 228,867 9 Insurance Receipts - 3,456 17,500
10 Total Income 2,361,355 14,474,318 Expenditure 13 Supervision & Management 365,459 2,773,860 14 Response Repairs 151,568 1,372,065 15 Estate Works 16,709 171,320 16 Planned/Cyclical Maintenance 5,703 717,224 17 Investment Programme 134,112 3,825,053 18 Office Alterations and IT 515 76,043 19 LIFT Costs 127,071 1,004,635 20 Opening Balances 21 Development Costs 776,006 8,405,631
22 Total Expenditure 1,577,143 18,345,831 23 Net Operating Cashflow 784,212 (3,871,513)
24 Interest Paid 46,417 438,350 25 Interest Collected (1,483) (9,000) 26 Total Interest 44,934 429,350 27 Annual Cashflow Surplus/(Deficit) 739,278 (4,300,863)
Interest Ratio 6% -11%
Covenant Requirement Maximum Annual Cashflow deficit (7,049,570) (7,049,570)
Tolerance 7,788,848 2,748,707 -237% -84% Hebridean Housing Partnership 19 Management Reports
Financial Ratios
For the period ended 31 May 2018
Key Ratios Current Forecast 2017/18 Current Ratio 10.68 9.24 5.27 (Current Assets/Current Liabilities)
Net Debt Per Unit Borrowing/ stock units £2,287.79 £2,279.98 £2,287.79
Voids% 0.67% 2.05% 0.83% Voids as % of Rental Income Due
Bad Debts % -0.04% 2.05% 0.18% Bad Debts written off as % of Rental Income Due
Staff Cost/Turnover % 14.90% 18.94% 17.15%
Gross Surplus 66.46% 48.35% 53.41% Operating Surplus/Turnover
Net Surplus 49.47% 25.88% 36.19% Net Surplus/Turnover
Hebridean Housing Partnership 20 Management Reports
Right to Buy
For the period ended 31 May 2018
RIGHT TO BUY Full Year Full Year Full Year to March to March 2015/2016 2015/2016 2016/2017 2017/2018 2018/2019 Number of applications received 54 63 79 n/a n/a
Full Year Full Year Full Year to March to March 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019 Number of sales 17 40 48 29 1
Right to Buy ended in 2016. The last property was sold in April 2018. Cash Flow Forecast 2018/19
Year Ended 31-May-18 30-Jun-18 31-Jul-18 31-Aug-18 30-Sep-18 31-Oct-18 30-Nov-18 31-Dec-18 31-Jan-19 28-Feb-19 31-Mar-19Total 31-Mar-19 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Cash on Hand at beginning of month 3,604,844 3,631,348 3,834,233 3,793,400 3,762,417 3,503,700 3,301,213 3,012,607 2,446,634 2,028,308 1,738,138 (586,807)
Cash Receipts
Rent 886,438 744,265 744,265 744,265 744,355 744,265 744,265 744,265 744,265 744,265 743,795 8,977,228 Sale of Assets 47,000 287,289 ------356,489 Grant Income 408,656 862,780 662,850 733,320 506,480 445,020 322,010 95,560 - - 3,951,100 8,372,686 Bank Interest - 1,250 - - 1,250 - - 1,250 - - 1,250 5,000 Insurance Claims ------Other income 67,263 35,475 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000 539,869 Total 1,409,357 1,931,059 1,447,115 1,517,585 1,292,085 1,229,285 1,106,275 881,075 784,265 784,265 4,736,145 18,251,272
Total Cash Available 5,014,201 5,562,408 5,281,348 5,310,985 5,054,502 4,732,985 4,407,488 3,893,682 3,230,899 2,812,573 6,474,283
Cash Paid Out
Payroll 130,312 133,000 133,000 133,000 133,000 133,000 133,000 133,000 133,000 133,000 133,000 1,587,657 Management Costs 54,744 69,220 69,220 69,220 69,220 69,220 69,220 69,220 69,220 69,220 69,220 851,093 Repairs 188,360 166,004 166,004 166,004 166,004 166,004 166,004 166,004 166,004 166,004 166,004 2,091,740 Investment 104,054 264,750 324,654 381,594 357,028 366,227 334,347 316,443 259,937 150,410 1,189,851 4,779,945 Development 904,129 919,300 794,070 797,750 731,550 696,320 691,310 668,380 573,430 554,800 5,409,015 13,109,567 Total 1,381,599 1,552,274 1,486,948 1,547,568 1,456,802 1,430,772 1,393,881 1,353,048 1,201,591 1,073,435 6,967,090 22,420,002
Cash Paid Out (Non P & L)
Loan Interest - 27,330 - - 93,000 - - 93,000 - - 93,000 372,000 Loan Repayment ------HAG Repayment - 148,149 ------148,149 Capital Purchase ------Refunds 1,254 421 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,350 Total 1,254 175,900 1,000 1,000 94,000 1,000 1,000 94,000 1,000 1,000 94,000 532,499
Total Cash Paid out 1,382,853 1,728,174 1,487,948 1,548,568 1,550,802 1,431,772 1,394,881 1,447,048 1,202,591 1,074,435 7,061,090 Cash Position at End of Month 3,631,348 3,834,233 3,793,400 3,762,417 3,503,700 3,301,213 3,012,607 2,446,634 2,028,308 1,738,138 (586,807) -
Deposit Acct At end of Month 6,163,502 6,163,502 6,163,502 6,163,502 6,163,502 6,163,502 6,163,502 6,163,502 6,163,502 6,163,502 6,163,502
Total Funds Available 9,794,850 9,997,735 9,956,902 9,925,919 9,667,201 9,464,714 9,176,108 8,610,136 8,191,809 7,901,640 5,576,694
The above cash flow shows the actual income received and the payments made for the period to May 2018 with projections for the remainder of the year. ITEM NO 18
Making our house your home
INVESTMENT PROGRAMME MONITORING REPORT Board 27 June 2018
Report by Director of Operations
Purpose of Report
1.1 To provide an update on the 2018/19Investment Programme. Summary
2.1 The works for the 2018/19 approved programme are being delivered through the Investment Framework. The report provides information on progress of works at Appendix 1. A financial update is provided at Appendix 2. 2.2 The tenants at Dunmore Crescent (External Wall Insulation) have been notified of the impending works. Works have now proceeded to Building Warrant stage. A start date for the works is awaited from SSE. 2.3 The Scottish Government have confirmed the RSL Adaptations funding award for 2018/2019 at £413,000 for General Adaptations. Competence
3.1 The legal, financial or other constraints to the recommendations in this report are contained in paragraphs 5, 6 and 8. Recommendations
4.1 It is recommended that the Board note the: a) 2018/19 Investment Programme progress at Appendix 1; b) Financial update at Appendix 2; and c) Update on external wall insulation at Dunmore Crescent.
APPENDIX 1 2018/19 Investment Programme Progress Report APPENDIX 2 Financial Update Background Papers Risk Register Writer of Report Angus MacNeil Tel: 0300 123 0773
Angus MacNeil 11-June-18 Competence
Financial 5.1 The Board approved an Investment Programme for 2015-2019 in November 2014 subject to annual budget approval. 5.2 The investment budget for the 2018/19 Investment Programme is approved at £4.368m. Appendix 2 provides information on the financial position. Legal 6.1 The decision to approve or amend Strategy, Business Plan and budgets including virements to or from a budget head in excess of £50,000 is reserved to the Board. 6.2 Financial Regulations require that actual forecast and progress on the Investment Programme be reported to each routine meeting of the Board. Regulatory Guidance 7.1 The relevant Regulatory Standards are:
Standard Sections
1 The governing body leads and directs the RSL to 1.2 and 1.3 achieve good outcomes for its tenants and other service users
3 The RSL manages its resources to ensure its financial 3.1, 3.3 and well-being and economic effectiveness. 3.4
Risk 8.1 There are risks highlighted in the Risk Register which are relevant to Investment including specifically the failure of a major contractor. 8.2 There are further risks highlighted in the Risk Register in regard to the Health of the local economy particularly the capacity of contractor to deliver programmes. 8.3 There is a risk in installing infra red heating prior to it being fully assessed through the EESSH and SAP frameworks. It may be that these systems will not ultimately be assessed positively. However, these are viewed positively by the majority of tenants where they have been installed. Further survey work to assess satisfaction and tenant experience is being carried out. Report Details
Investment Works 2017/18 9.1 The majority of contracts were satisfactorily completed prior to 30 March 2018. Fencing works at Vatisker Park and Dounes are now substantially complete, minor finishing will be complete mid June. The window replacement works at Doig Crescent are now expected to complete in June 2018. 9.2 Lot 7 Electrical Works – Lewis/ Harris is programmed to run until the end of June.
Angus MacNeil 11-June-18 Investment Works 2018-2019 10.1 Progress on the 2018/19 Investment Programme is shown in Appendix 1. 10.2 Lot 2 (Heating Lewis) has been subdivided into three sub lots to obtain the best value for HHP. 10.3 Lot 12 (Roofing Uist) has been tendered twice via the framework. On both occasions the interest was limited to one contractor and the pricing remained unchanged when re tendered. The contractor is unwilling to negotiate or vary the tendered price due to the location. The tender value substantially exceeds the budget. It is proposed to tender on the open market. External Wall Insulation To Swedish Timber Houses 11.1 The tenants at Dunmore Crescent have been advised of the proposed external insulation works. Further information will be issued on agreement of a programme with SSE for the works. 11.2 Currently, the Building Warrant application is being prepared by SSE. RSL Funding Award For Adaptations 12.1 The bid for funding for Adaptations has been successful. An award of £413,000 has been confirmed by the Scottish Government. 12.2 The award also permits major adaptations should they be required. 12.3 The allocation has been confirmed with the Western Isles Health Board, Occupational Therapy department. Regular meetings will continue to monitor the level of referrals in order and plan accordingly to maximize referrals.
Angus MacNeil 11-June-18 APPENDIX 1
2018/19 INVESTMENT PROGRAMME
PROGRESS UPDATE
Lot Ref Works Area Status Lot 2A Infra Red heating Lewis and Harris Tender issued – due for return mid June – Cearns Ph 1 Lot 2B Infra Red heating Lewis and Harris Tender issued – due for return late June – Cearns Ph 2 Lot 2C ASHP/ Infra red Lewis and Harris Tender issued – due for return early July heating – Rural Lewis Ph1 Lot 2a Gas heating Lewis and Harris Awarded Alex Murray (Construction) Ltd; surveys completed. Works commenced on site and on programme Lot 3 Bathrooms Lewis and Harris Awarded Alex Murray (Construction) Ltd; surveys completed. Works commenced on site and on programme Lot 4 Kitchens Lewis and Harris Awarded O’MacConstruction Ltd; surveys commenced, awaiting survey costs Lot 9 ASHP/ Infra red Uists and Barra Tender issued – due for return late June heating Uists and Barra Lot 12 Roofing Uists and Barra Re tendered works have also exceeded budget. Works will need to be tendered on open market via PCS Lot 15 Environmentals Lewis and Harris Awarded Alex Murray (Construction) Ltd; programme agreed APPENDIX 2
FINANCIAL UPDATE
31st MAY 2018
Line Heading CURRENT YEAR BUDGET BUDGET ACTUAL BUDGET VARIANCE BUDGET REMAINING FORECAST OUT-TURN Initial Revised to Spend to Budget to Budget to Revised Revised Over/ at Budget Budget 31-May-18 31-May-18 date date Budget Budget (under) 31-Mar-19 £ £ £ £ £ % £ % £ £ 1 Roofs 112,140 112,140 - 626 (626) 111,514 99% 627 112,767 2 Insulation 148,057 148,057 - - - 148,057 100% - 148,057 3 Total Roofs 260,197 260,197 - 626 (626) 259,571 100% 627 260,824 4 Kitchen 256,974 256,974 49,838 490 49,348 99% 256,484 100% (663) 256,311 5 Bathrooms 198,450 198,450 28,159 (833) 28,992 103% 199,283 100% - 198,450 6 OT Aids & Adaptations 120,000 120,000 120,000 36,204 83,796 70% 83,796 70% 293,000 413,000 7 Showers 119,700 119,700 16,985 1,402 15,583 92% 118,298 99% 402 120,102 8 Heating 1,731,598 1,731,598 128,820 34,083 94,737 74% 1,697,515 98% 45,410 1,777,008 9 Rewiring - - - 498 (498) (498) 480 480 10 Smoke/C02 Detectors 62,040 62,040 - 2,387 (2,387) 59,653 96% (7,080) 54,960 11 Total Internals 2,488,762 2,488,762 343,801 74,231 269,571 78% 2,414,531 97% 331,549 2,820,311 12 Windows 69,900 69,900 - 63,550 (63,550) 6,350 9% 129,140 199,040 13 Roughcast house & wall 192,000 192,000 - - - 192,000 100% - 192,000 15 Footpaths/Drying Areas - - - 14 Fencing 220,980 220,980 - - - 220,980 100% 3,043 224,023 19 Externals 412,980 412,980 - - - 412,980 100% 3,043 416,023 Total Investment excl. Unallocated Exp/Efficiency 20 Saving 3,231,839 3,231,839 343,801 138,407 205,394 60% 3,093,432 96% 464,360 3,696,199
21 Unallocated Expenditure 1,136,331 1,136,331 - - - 1,136,331 100% (464,360) 671,971 22 Efficiency Savings ------23 Total Investment 4,368,170 4,368,170 343,801 138,407 205,395 60% 4,229,763 97% - 4,368,169 ITEM NO 19
Making our house your home
STOCK CONDITION SURVEY UPDATE Board 27 June 2018
Report by Director of Operations
Purpose of Report
1.1 To provide an update on the Stock Condition Survey. Summary
2.1 The submission of the report from David Adamson & Partners Ltd is late by several months and efforts are continuing to have the consultants submit the final report. Significant action has been taken to pressure them including writing to all partners of the consultancy regarding the delay. In addition, a stage payment was withheld and the potential of a complaint to RICS was explored. 2.2 A draft report was received on 9 May 2018. The report required further work to: Merge current survey data with previous survey data to provide a detailed model; Completion of data validation; and Financial projections for future investment needs. 2.3 The draft report findings indicated that the stock was in generally good condition with no major backlog repairs programmes identified. 2.4 The summary findings of the Fuel Poverty and Rent Affordability questionnaires will also be provided on receipt of the final report. The draft report indicates a reduction in fuel poverty. 2.5 The final report is expected to be submitted before the Board meeting and efforts will continue to ensure this occurs. Competence
3.1 The legal, financial or other constraints to the recommendations in this report are contained in paragraphs 5, 6 and 8. Recommendations
4.1 It is recommended that the Board note the update on the Stock Condition Survey.
APPENDIX 1 30 Year Financial Projections Background Papers None Writer of Report Angus Macneil Tel: 0300 123 0773
Angus MacNeil 22-Jun-18 Competence
Financial 5.1 The Stock Condition report will set out the investment requirements for the next 30 years. High level 30 year investment projections have been provided and these are attached at Appendix 1. The detail to support these has not yet been provided. The figures will be reviewed once this is available.
Legal 6.1 The decision to approve or amend Strategy, Business Plan and budgets including virements to or from a budget head in excess of £50,000 is reserved to the Board.
Regulatory Guidance 7.1 The relevant Regulatory Standards are:
Standard Sections
1 The governing body leads and directs the RSL to 1.2 and 1.3 achieve good outcomes for its tenants and other service users
3 The RSL manages its resources to ensure its financial 3.1, 3.3 and well-being and economic effectiveness. 3.4
Risk 8.1 The delay in submission of the Stock Condition survey is a concern. RBS and JLL have been kept updated of the delay. 8.2 There are further risks highlighted in the Risk Register in regard to the Health of the local economy particularly the capacity of contractors to deliver programmes which will be identified by the survey.
Angus MacNeil 22-Jun-18 APPENDIX 1
BUILDING COMPONENT Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25 Year 26 Year 27 Year 28 Year 29 Year 30 Total All Periods £££££££££££££££££££££££££££££££ CATCHUP REPAIRS AND IMPROVEMENTS Catchup repairs 918785 00000000000000000000000000000 918785 Shqs Improvements 000000000000000000000000000000 0 Eessh Improvements 000000000000000000000000000000 0 Sub Total Catchup repairs and improvements 918785 00000000000000000000000000000 918785 BUILDING FABRIC LIFE CYCLE Principal Roof Structure 0000000000009522 0 13973 0 4658 9419 0 4761 21563 0 0 23805 24840 0000218385 330924 Principal Roof Covering 105458 59400 36150 26400 78804 0 49104 74976 0 104280 126060 87780 79728 67122 255938 311333 364136 553773 359659 647966 565566 545004 416430 584437 267049 321468 349930 82510 0 409473 6929935 Secondary Roof Covering 0 2246 0 0 20297 0 5990 0 0 15275 0 0 0 186 21339 000033870 0 223 0 0 30200 304 0 0 0 1010 130938 Chimney Stacks 0000000004719 000035970 30129 34980 24778 21252 32175 27770 37362 43412 43857 51491 42592 46904 49484 46723 26780 600375 Flashings 000004512 8256 4416 2806 25477 22080 41184 7584 18636 44919 45919 68474 57366 46850 36112 47232 40028 43193 40075 48501 30226 57566 66869 64058 86837 959176 Soffits/Fascias/Barges 0 0 8688 0 30472 12528 22589 10685 36218 62749 52663 52805 62118 139700 85590 115628 122470 106297 131368 115532 48432 37885 76614 83692 67297 5030 7128 5196 6034 9027 1514436 Gutters 0 864 2178 0 44457 33763 33894 63620 65090 54579 71583 61258 66017 50848 85361 87066 74182 77295 82918 63318 37236 58484 5141 3176 42025 1274 0 0 6048 6849 1178526 Rainwater Downpipes 0 0 1089 4320 26606 24467 42037 40720 57962 32312 50978 60788 40584 38940 80344 64548 53811 47498 53507 34567 32872 24573 6367 1676 20759 373 0 1944 4320 4242 852201 Soil Waste Pipes 0 0 0 204 2720 0 0 3808 0 1224 3808 2856 3672 9044 13804 2108 3400 15368 6256 6392 5032 4216 884 1360 544 9248 9316 2244 0 3604 111112 Principal External Wall Finishes 0 0 0 20655 234186 89258 102888 225860 233523 264249 115663 105737 85887 42485 126934 268544 195212 146798 127940 236747 296625 350558 327805 349675 625065 595424 558395 575496 601721 511151 7414479 Secondary External Wall Finishes 000012128 000031770 000029270 2795 0 648 0 54058 000018908 000015466 165043 Dwelling Windows 341094 131430 201100 142631 325347 192894 222612 211942 259662 150920 224422 336716 379974 360344 397790 474022 454418 502013 880599 602285 693842 456336 648747 601203 419964 0 0 102710 0 15007 9730023 Front Access Doors 1090 46452 21425 2844 33464 14457 23052 74347 75034 72238 106413 93552 91474 88693 86537 94476 84024 79972 94982 164091 98395 96649 98884 98292 52559 48348 4819 70452 8722 1896 1927632 Rear Access Doors 0 39816 15168 10997 12751 5688 12482 9764 4859 82239 35076 16479 7347 27516 68951 63856 27184 63453 70318 72467 62687 68106 69512 67537 40195 46531 0 61146 0 0 1062123 Sub Total Building Fabric 447642 280208 285797 208051 821232 377566 522905 720138 735153 902030 808745 859155 833907 843513 1346719 1560424 1486949 1684677 1875651 2104340 1937250 1719424 1736988 1898786 1709395 1100817 1034058 1018052 737625 1309726 32906923 DWELLING CURTILAGE LIFE CYCLE Primary Boundary Walls and Fences 0 26355 12459 50306 93218 127860 57903 136132 40350 111432 157459 117997 177730 122922 111899 82836 89152 74436 64260 60166 113202 38126 63507 59441 105702 0 216 2268 0 60632 2157965 Secondary Boundary Walls and Fences 0 9920 45533 20381 40441 88274 71208 38173 68795 51642 51458 79767 79101 77002 82901 90841 72788 61265 71903 65432 54153 50618 9194 1080 14076 2732 0 540 0 22608 1321825 Curtilage Paths and Paved Areas 0 7439 0 563 725 4100 3100 1364 360 954 1944 14864 11307 16085 18848 40757 35698 27539 31825 32516 38514 33615 41375 24463 57091 49847 64077 7192 3354 8028 577541 Sub Total Dwelling Curtilage 0 43714 57992 71249 134383 220233 132211 175669 109505 164028 210861 212628 268138 216008 213648 214434 197638 163239 167989 158114 205869 122359 114075 84984 176869 52579 64293 10000 3354 91268 4057332 COMMON ACCESS AND FACILITIES LIFE CYCLE Common Area Floor Finishes 0 0 0 676 4396 3564 10438 243 0 8531 00001033 6429 0 0 979 673 0000000001742 38702 Common Main Entry Doors 000017717 14490 21011 2174 2174 9419 0 1449 0 0 20306 0 0 2898 0 30489 3750 2898 1509 00007245 0 0 137529 Common Door Entry System 0 0 2760 0 3764 1380 1380 0 2760 24962 000011788 00000001438 0000000 50230 Common Rear Entry Doors 00004347 932 7763 0 311 4037 000010661 00003752 0 0 647 00003105 0 269 35821 Common Area Lighting 000006965 3578 180 216 6873 0 1728 0 0 5340 00004568647202162161042 0 0 504 0 0 28897 Common Area Windows 00006777 3054 0 600 0 8700 15750 0 0 0 5400 1950 0 1800 625 24663 5435 0000003000 0 0 77754 Common Area Rooflights 00000000041400004140138001104 00001932 00000 4002 Common Bin Stores 00002836 0 0 1200 0 300 000013200 00002100 0000000004200 23836 Sub Total Common Parts 0 0 2760 676 39837 30384 44169 4397 5460 63234 15750 3177 0 0 68141 8379 138 4698 1604 63237 10050 3618 3810 216 2974 0 0 13854 0 6210 396771 INTERNAL AMENITIES/ SERVICES LIFE CYCLE Kitchens 353880 248940 125100 268050 420840 204750 79740 254400 577140 522120 548280 563130 581040 804930 518460 441360 406170 602100 364110 166680 00000000008051220 Bathroom Amenities 256979 42320 13800 110630 132894 169809 101982 167302 233496 275080 268456 190049 217258 224986 216660 222203 289478 297275 297436 273010 293319 308982 302243 262637 120980 215855 201894 196144 123165 146280 6172602 Electrics 0 102501 174762 111069 129213 91098 102165 106323 53928 319200 312585 321531 325479 323673 158109 159663 164031 181587 175896 167580 180243 175140 33264 241164 234045 158760 57960 306852 310590 310275 5488686 Heating 371450 197000 405875 459925 427900 412375 408925 823250 781725 782200 770650 650900 522825 702775 384975 415425 346450 0 34200 222300 243850 239400 132525 132525 115425 132525 55575 171000 0 145350 10489300 Kitchen Second Cycle Renewal (20 years) 00000000000000000000353880 248940 125100 268050 420840 204750 79740 254400 577140 522120 3054960 Heating Second Cycle Renewal (15 years) 000000000000000371450 197000 405875 459925 427900 412375 408925 823250 781725 782200 770650 650900 522825 702775 384975 8102750 Sub Total Amenities/Services 982309 590761 719537 949674 1110847 878032 692812 1351275 1646289 1898600 1899971 1725610 1646602 2056364 1278204 1610101 1403129 1486837 1331567 1257470 1483667 1381387 1416382 1686101 1673490 1482540 1046069 1451221 1713670 1509000 41359518 TOTAL COST NET 2348736 914684 1066086 1229650 2106299 1506215 1392097 2251479 2496407 3027893 2935327 2800570 2748647 3115885 2906712 3393338 3087854 3339451 3376810 3583160 3636836 3226788 3271255 3670086 3562728 2635936 2144420 2493127 2454649 2916204 79639330 Fees (10.0%) 234874 91468 106609 122965 210630 150622 139210 225148 249641 302789 293533 280057 274865 311589 290671 339334 308785 333945 337681 358316 363684 322679 327126 367009 356273 263594 214442 249313 245465 291620 7963933 Preliminaries (11.0%) 258361 100615 117269 135261 231693 165684 153131 247663 274605 333068 322886 308063 302351 342747 319738 373267 339664 367340 371449 394148 400052 354947 359838 403709 391900 289953 235886 274244 270011 320782 8760326 Vat 30469 81802 73546 44487 123347 59364 54630 184628 126472 313714 178384 141259 113710 189931 274703 265563 194864 278094 289820 510061 367627 280492 358897 421689 554154 330424 202123 275312 431697 431082 7182344 Sub Total Contract Additionals 523703 273885 297424 302713 565670 375670 346970 657439 650717 949571 794803 729378 690925 844266 885112 978164 843313 979379 998950 1262524 1131363 958118 1045860 1192407 1302327 883971 652451 798868 947173 1043485 23906603 TOTAL COST GROSS 2872439 1188569 1363510 1532363 2671969 1881885 1739067 2908918 3147125 3977464 3730130 3529948 3439573 3960152 3791824 4371502 3931167 4318830 4375760 4845684 4768199 4184906 4317115 4862493 4865055 3519907 2796871 3291996 3401822 3959690 103545933 Responsive Maintenance Cyclical Maintenance Voids Maintenance Exceptional Extensive Works Contingent Major Repairs Estate Works Environmental Improvements Sub Total Revenue and Exceptionals 000000000000000000000000000000 0 TOTAL COST ALL CATEGORIES 2872439 1188569 1363510 1532363 2671969 1881885 1739067 2908918 3147125 3977464 3730130 3529948 3439573 3960152 3791824 4371502 3931167 4318830 4375760 4845684 4768199 4184906 4317115 4862493 4865055 3519907 2796871 3291996 3401822 3959690 103545933 ITEM NO 20
Making our house your home
FUNDERS VALUATION 2018 Board 27 June 2018
Report by Director of Finance & Corporate Services
Purpose of Report
1.1 To inform the Board of the outcome of the Funders Valuation for 2018 prior to the report being submitted to the Funders. Summary
2.1 The Funding Facility with the Royal Bank of Scotland (RBS) requires the Partnership to evidence that the “Value of the Charged Properties is not less than 110% of the amount of outstanding loans”. The evidence is provided through an independent valuation which is submitted to the Bank on an annual basis. 2.2 The Funders Valuation work went out to tender in December 2017. Jones Lang Lasalle were re-appointed to carry out the Valuations for the Partnership through to March 2022. 2.4 The draft Valuation shows that the Partnership is in compliance with the minimum value requirement with Existing Use Value (EUV-SH) of stock at £27.765M (£0.981M increase on last year). This sets our potential borrowing threshold at £25.24M 2.5 Any update to the valuation as a result of the output of the stock condition survey will be covered verbally at the June Board. Competence
3.1 The legal, financial or other constraints to any recommendations in this report being implemented are detailed in paragraphs 5.1 to 7.1. Recommendations
4.1 It is recommended that the Board note the: a) Draft Existing Use Value of £27.765m at 31 March 2018 at Appendix 1; and b) Draft Summary Valuation Report for 2018 at Appendix 1.
APPENDIX 1 Summary Valuation Report at 31 March 2018 Background Papers None Writer of Report Donald Macleod Tel: 0300 123 0773
Donald Macleod 5-June-2018 Competence
Financial 5.1 Section 21 of the Funding Facility with RBS requires the Partnership to carry out a Funders Valuation each year. The conditions are:
i) The Borrower will procure that at all times the Value of the Charged Properties will not at any time be less than:
a) 110% based on the EUV-SH basis,or
b) 125% based on the MV-ST basis
of the Outstandings.
ii) The Lender will require and will obtain a valuation:
a) of the Charged Properties on or about each successive Anniversary (except each Anniversary in respect of which a Valuation is delivered by the Borrower to the Lender in accordance with sub-clause (b) below) addressed to the lender prepared by the Valuer on a “desktop” basis setting out in reasonable detail the Value of the Charged Properties;
b) incorporating an updated Stock Condition Survey of all or any of the Charged Properties on or about each successive fifth Anniversary (or such longer period as the Lender may agree) of the last Valuation;
c) of all or any of the Charged Properties within 90 days of a Valuation carried out in accordance with sub-clause 9b) above, if such Valuation confirms a minimum value ration in Clause 21.1 (Minimum Value) has been breached; and
d) At any time on the request of the Lender.
5.2 The cost of carrying out the Valuation is paid for by the Partnership and provision was made in the 2018/19 budget for this work.
Legal 6.1 There are no legal implications arising directly from consideration of this report.
Donald Macleod 5-June-18
Regulatory Guidance 7.1 The relevant Regulatory Standards are:
Standard Sections
3 The RSL manages its resources to ensure its financial 3.1, 3.5
well-being and economic effectiveness.
4 The governing body bases its decisions on good 4.1 quality information and advice and identifies and mitigates risks to the organisation’s purpose.
Risk 8.1 The risk of not complying with the requirement to provide an updated Valuation within the agreed timescale is that the Partnership might breach the conditions of Para 20.1 of the Facility Agreement which could result in the condition of the Facility being amended unfavourably.
8.2 The risks of not providing the relevant financial information to the Regulator are that the Partnership could breach a condition of its registration which would have serious implications for the organisation and its customers.
REPORT DETAILS
Background 9.1 The Facility agreed with RBS requires the Partnership to provide an independent Valuation to RBS on an annual basis. This is standard practice for the RSL sector.
9.2 The Valuations must be with RBS no later than 31 March each year. Extension has been granted to the end of June as a result of delays in getting the latest stock condition survey results.
9.3 The Valuation which is at Appendix 1 is draft and will be updated prior to the 30th of June with data received from the recent stock condition survey.
Donald Macleod 5-June-18 VALUATION SUMMARY - 2018 ACCOUNTING VALUATION Appendix 1
Client - Hebridean Housing Partnership (New Build Units)
EUV-SH / EUV-SH with EUV-SH with No of Units Scheme Date Built No of Units Yr 1 Rent EUV-SH Unit Sales Sales/Unit Yr 1 Rent EUV-SH EUV-SH / Unit MVST MVST/Unit New Developments St Michaels Cottages, Castlebay, Isle of Barra 2010 4 £3,558 £105,000 £26,250 £139,000 £34,750 4 £3,696 £109,000 £27,250 £141,000 £35,250 Cialla, Eoligarry, Isle of Barra 2009 3 £4,077 £74,000 £24,667 £74,000 £24,667 2 £4,236 £61,000 £30,500 £61,000 £30,500 Winfield Place, Balivanich, Isle of Benbecula 2015 4 £4,240 £165,000 £41,250 £180,000 £45,000 4 £4,405 £169,000 £42,250 £182,000 £45,500 Taigh Sgoile, Rushgarry, Isle of Berneray 2009 4 £3,663 £112,000 £28,000 £133,000 £33,250 4 £3,805 £115,000 £28,750 £136,000 £34,000 Ceann An Ora, Bunavoneader, Isle of Harris 2011 8 £4,377 £298,000 £37,250 £368,000 £46,000 8 £4,548 £312,000 £39,000 £382,000 £47,750 Pairc Niseabost, Horgabost, Isle of Harris 2016 6 £4,897 £300,000 £50,000 £443,000 £73,833 6 £5,088 £308,000 £51,333 £461,000 £76,833 An Sithean, Back, Isle of Lewis 2009 6 £4,002 £186,000 £31,000 £241,000 £40,167 6 £4,158 £193,000 £32,167 £244,000 £40,667 Cearnag a Sgoile, Lochs Street, Barvas, Isle of Lewis 2016 8 £4,451 £363,000 £45,375 £436,000 £54,500 8 £4,625 £369,000 £46,125 £437,000 £54,625 Slighe Nan Caimbeul, Habost, Ness, Isle of Lewis 2016 4 £4,241 £170,000 £42,500 £211,000 £52,750 4 £4,406 £172,000 £43,000 £205,000 £51,250 Kennedy View, Leurbost, Isle of Lewis 2014 8 £4,236 £338,000 £42,250 £399,000 £49,875 8 £4,401 £345,000 £43,125 £404,000 £50,500 Bennadrove Road/Maryhill, Marybank, Isle of Lewis 2007 4 £4,228 £138,000 £34,500 £189,000 £47,250 4 £4,393 £142,000 £35,500 £191,000 £47,750 Eitseal Way, Marybank, Isle of Lewis 2007 5 £3,715 £155,000 £31,000 £192,000 £38,400 5 £3,859 £159,000 £31,800 £193,000 £38,600 Bridge Cottages, Newmarket, Isle of Lewis 2011 18 £4,285 £695,000 £38,611 £870,000 £48,333 18 £4,452 £723,000 £40,167 £874,000 £48,556 Gleann Dubh, Newmarket, Isle of Lewis 2008 36 £3,935 £1,148,000 £31,889 £1,552,000 £43,111 36 £4,088 £1,175,000 £32,639 £1,577,000 £43,806 Milestone Cottages, Newmarket, Isle of Lewis 2007 4 £3,926 £126,000 £31,500 £167,000 £41,750 4 £4,079 £129,000 £32,250 £169,000 £42,250 Cnoc a Ruinaire, North Tolsta, Isle of Lewis 2012 4 £4,734 £178,000 £44,500 £234,000 £58,500 4 £4,918 £185,000 £46,250 £238,000 £59,500 MacKenzie Crescent, Sandwick, Isle of Lewis 2014-16 20 £4,418 £883,000 £44,150 £1,081,000 £54,050 20 £4,591 £905,000 £45,250 £1,097,000 £54,850 Mackenzie Lane, Sandwick, Isle of Lewis 2017 12 £4,502 £539,000 £44,917 £632,000 £52,667 1-19 Mackenzie Park, Sandwick, Isle of Lewis 2012/13 19 £4,064 £692,000 £36,421 £966,000 £50,842 19 £4,222 £714,000 £37,579 £970,000 £51,053 Tom na Ba, South Galson, Isle of Lewis 2009 6 £3,675 £171,000 £28,500 £212,000 £35,333 6 £3,818 £174,000 £29,000 £213,000 £35,500 Church Street/Lamont Lane, Stornoway, Isle of Lewis 2009 8 £3,171 £182,000 £22,750 £250,000 £31,250 8 £3,295 £182,000 £22,750 £251,000 £31,375 Elizabeth Haldane Court, Church Street, Stornoway, Isle of Lewis 2007 22 £3,563 £586,000 £26,636 £800,000 £36,364 22 £3,702 £595,000 £27,045 £823,000 £37,409 Gibson Gardens, Stornoway, Isle of Lewis 2013 24 £4,408 £1,021,000 £42,542 £1,206,000 £50,250 24 £4,580 £1,037,000 £43,208 £1,255,000 £52,292 Muirneag Court, Keith Street, Stornoway, Isle of Lewis 2007 5 £3,444 £130,000 £26,000 £177,000 £35,400 5 £3,578 £132,000 £26,400 £180,000 £36,000 Ardanmhor, Kenneth Street, Stornoway, Isle of Lewis 2011 6 £4,341 £243,000 £40,500 £282,000 £47,000 6 £4,511 £252,000 £42,000 £294,000 £49,000 Manor Drive Stornoway, Isle of Lewis 2011 30 £4,432 £1,231,000 £41,033 £1,624,000 £54,133 30 £4,605 £1,271,000 £42,367 £1,697,000 £56,567 Arras Cottages, Perceval Road, Stornoway, Isle of Lewis 2009 12 £3,901 £382,000 £31,833 £566,000 £47,167 12 £4,053 £388,000 £32,333 £580,000 £48,333 Leanna Ruadh, Timsgarry, Isle of Lewis 2015 4 £4,240 £168,000 £42,000 £180,000 £45,000 4 £4,406 £170,000 £42,500 £182,000 £45,500 Milkinghill Park, Tong, Isle of Lewis 2010 12 £4,053 £385,000 £32,083 £491,000 £40,917 12 £4,211 £398,000 £33,167 £498,000 £41,500 Gearraidh Ghuirm, Upper Coll, Isle of Lewis 2007 2 £3,775 £61,000 £30,500 £76,000 £38,000 2 £3,922 £62,000 £31,000 £79,000 £39,500 Gearraidh Ghuirm, Upper Coll Ph2, Isle of Lewis 2011 11 £4,509 £461,000 £41,909 £583,000 £53,000 11 £4,684 £474,000 £43,091 £589,000 £53,545 48 Upper Coll, Isle of Lewis 2009 3 £4,279 £99,000 £33,000 £150,000 £50,000 3 £4,446 £102,000 £34,000 £152,000 £50,667 Slighe Ruairidh Alasdair, Kirkibost, Isle of North Uist 2012 6 £4,574 £256,000 £42,667 £355,000 £59,167 6 £4,752 £265,000 £44,167 £362,000 £60,333 Beinn Mhor Cottages, Howmore, Isle of South Uist 2007 8 £4,134 £235,000 £29,375 £349,000 £43,625 8 £4,295 £239,000 £29,875 £352,000 £44,000 Calabhaigh, Lochboisdale, Isle of South Uist 2007 6 £3,713 £160,000 £26,667 £181,000 £30,167 6 £3,858 £161,000 £26,833 £182,000 £30,333 Sub Total 330 £11,897,000 £36,052 £15,357,000 £46,536 341 £12,726,000 £37,320 £16,283,000 £47,751
EX-Council Transfer Stock( Inc ROTS AND MTR ) Various 1,574 £3,858 £9,788,000 £6,219 1,531 £4,044 £9,760,000 £6,375 £6,375 (2017 valuation excl 8 Cnoc Mor units ) Ex-RSL Rental Stock Various 286 £4,096 £5,027,000 £17,577 £8,393,000 £29,346 268 £4,370 £5,200,000 £19,403 £9,777,000 £36,481 ( 2017 valuation has10 Cialla units in Barra removed year 15 ) Ex RSL Shared Ownership Units 3 £72,000 £24,000 £79,000 £26,333 3 £79,000 £26,333 £86,000 £28,667
TOTAL 2,193 £26,784,000 £12,213 £23,829,000 2,143 £27,765,000 £12,956 £26,146,000 £16,755