Annual Report

Transcription

1 Annual Report

2 Contents Page Annual Business Review 3 Our Internal Controls 6 Our Performance 8 Governance and Accountability 15 Board, Committee & Management Team Structure 16 Committee Remits 17 Board Membership 20 Business Plan Review 24 Annual Accounts 30

3 Annual Business Review The past year has been one of growth for the Association; we completed 118 new homes and started to build another 58 in various locations. Connswater Phase 3, Mersey St, Belfast There has been much discussion around the impact of Welfare Reform on both our business and our tenants. We have started collecting the information to help us plan for its implementation; we intend to be ready to deal with new challenges in a positive and sustainable manner. Our financial position is sound and we are well placed to maintain our current housing stock and develop new affordable homes in the future. We have kept services under review through a programme of tenant satisfaction surveys with regular feedback on our maintenance service and mystery shopping exercises. Our most recent survey demonstrated that 96% of our tenants are satisfied with the service provided by Connswater Homes. 3

4 Our performance and capabilities are improving each year. We have a strong and committed Board and staff team, determined to continually improve customer service standards, We had another successful year at the Annual Chartered Institute of Housing Awards. I would like to congratulate the residents of Trinity Terrace, Lisburn who scooped the Making a Difference award for their communal garden and landscaping. Trinity Terrace residents Damien Hughes & Errol Williamson receiving the award on behalf of the tenants with Kevin Butler, chairman We are always pleased when our work is recognised and this year our Connswater Phase 3 development at Mersey St, Belfast was highly commended by the Northern Ireland Housing Council. Pictured receiving the award on behalf of the Association are John Brooks, Director of Property Service and Karen Massey, Maintenance Assistant. 4

5 Sadly our colleague, Gordon Atkinson MBE who served on our Board for many years passed away. Gordon, a retired Area Manager with the NIHE, worked tirelessly for the Association, we will miss his contributions to the Board. I would like to express my thanks to my colleagues on the Board who give selflessly of their time and expertise, for their support and commitment; the staff for their continued hard work; our various partner organisations for their involvement; and finally our tenants for whom we will continue to provide the best possible service. This year sees my retirement as Chairman of Connswater Homes and I welcome Mr John Beattie as my successor and wish him well and Connswater Homes every success for the future. Kevin Butler Chairman

6 Our Internal Controls Internal Audit Report The Board and Audit Committee of Connswater Homes present this annual statement prepared by TIAA on its internal controls assurance for Overall the reviews carried out indicated that Connswater Homes has systems in place that are designed and operated to provide effective control. The Annual Plan, which was agreed with Connswater Homes, provided for 19 days in the internal audit programme for 2011/12, the actual number of days were 26.5, all previously agreed with Connswater Homes. All the planned work has been carried out and the reports have been issued. Within the areas of activity outlined in the table opposite, there were no systems reviewed by the internal auditors, where it was assessed that the effectiveness of some of the internal control arrangements provided no assurance. There was one system reviewed by internal auditors where it was assessed that the effectiveness of some of the internal control arrangements provided limited assurance. Recommendations were made to further strengthen the control environment within Asbestos Monitoring and a consultant will be engaged to advise on further best practice. 6

7 Summary of the Evaluations of the Effectiveness of the Internal Controls System Substantial Assurance Reasonable Assurance Limited Assurance No Assurance Governance - performance monitoring Treasury and Banking Rent setting and collection Customer Services Asbestos monitoring Planned maintenance (inc Stock Condition Survey) Development Schemes - DSD compliance Movilla Road Scheme Review of Development Files - Phase 1 TIAA Ltd Independent Internal Auditors

8 Our Performance Our Housing Stock Connswater Homes provides quality homes at affordable rents and as at 31 March 2012 had a stock of 612 properties in the following district council areas: Total Homes by Council Area Belfast 30 1 Lisburn Castlereagh Newtownards Rental Income The total rental income for was 2,401,386 and the chart below shows the average weekly rent per property according to number of bedrooms Bed 2 Bed 3 Bed 4 Bed 5 Bed 8

9 In the past year 61% of our tenants received full housing benefit and 16% received partial housing benefit. Lost Income The Association makes strenuous efforts to collect all income due from tenants. Tenant rent arrears at 31 March 2012, excluding any Housing Benefit due to be paid, were 46, This is 1.9%% of the rent due. 32 Notices seeking possession were served this year for rent arrears and full tenancy recovery procedures commenced against four tenants. How the money was spent The chart below shows the areas in which Connswater Homes spent its income. 11% 2% 21% Repairs & maintenance Loan interest Management costs 31% 35% Property depreciation Legal & professional fees 9

10 How we let our properties All of our properties are let in accordance with the Northern Ireland Common Selection Scheme. This year we re-let 29 properties and 91 new properties were allocated. On average it takes us 14 days to let these properties. The charts below show the categories of people we let our properties to in the past year. New Lettings Re-lets Couples 4% 4% Couples 41% 13% 12% 8% 26% Over 60's Singles under 35 Families Singles over 35 62% 17% 14% Over 60's Singles under 35 Families Singles over 35 26% of all new tenants in classified themselves as having a disability. All new tenants in classified themselves as white in terms of their ethnicity. 0 At 31 March 2012 the Association had 8 empty homes.

11 Comments, Compliments & Complaints Register The Association received six (6) complaints in all of which were resolved internally. No complaints were escalated to the Ombudsman. House Sales and Equity Sharing Register In the Association had no house sales, nor any enquires to purchase an equity share of any of its properties. Declaration of Interests Register There were three (3) declared interests from members in which have been recorded in the appropriate register. Use of the Association Seal Register The Association used its formal Seal nineteen (19) times during The Seal is used for legal purposes eg the signing of formal Construction contracts, mortgage and financial agreements. Charitable Donations Register The Association fulfilled two (2) requests for a donation during

12 Repairs Performance We spent 298,542 on our repairs and maintenance service this year, of this 69% was on response maintenance and 31% on planned maintenance. There were a total of 1838 jobs placed throughout the year, the charts show the number of jobs placed on a monthly basis, and the Association s actual performance against set DSD targets. Number of jobs placed per month Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 12

13 100% 80% 60% 40% 20% 0% Actual performance against targets % 97% 96% 89% 80% 80% Emergency Urgent Routine Completion target Percentage completed on time Spend between response & planned maintenance 92, ,206 Response Planned & Cyclical 13

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15 Governance and Accountability There are guidelines in relation to corporate governance that are followed by staff and board members of Connswater Homes. These guidelines ensure the highest level of accountability, transparency, probity and control throughout the business. Some of the controls in place include: A Board with a clearly defined role and specific responsibilities Board members with a range of skills and expertise necessary to oversee the strategic direction of the Association A Board member training and appraisal system A committee structure with defined roles and delegated authority that allows the business to be monitored and reviewed A range of Registers to record matters such as complaints, risk, tenders, declared interests and hospitality Some of the mechanisms we use for effective management and control are: A three year Strategic Plan An Annual Business Plan Management and annual (published) accounts Annual budget An Annual Report on activities and performance for stakeholders Annual Regulatory Return to DSD A quarterly Fraud Return to DSD A range of appropriate policies and procedures A Quarterly report on Key Performance Indicators Tenant Satisfaction Surveys Monitoring and benchmarking These mechanisms for control are evaluated by: Annual internal and external audits DSD regulatory inspections Inspection by other agencies eg NIAO Risk Management The Association has a Risk Management Strategy and Register; it allows for the identification of potential risks and their severity as well as the monitoring and review of these issues. 15

16 Board, Committee & Senior Management Team Structure Board Executive Committee (EC) Human Resources & Remuneration Committee (HRRC) Audit Committee (AC) Development & Finance Committee (DFC) Housing & Maintenance Committee (HMC) Chief Executive Ms J Locke Director of Finance Mrs J Hill Director of Property Services Mr J Brooks Director of Corporate Assurance Mrs C Waterworth 16

17 Connswater Homes Board The Board is responsible for the overall strategic direction and objectives of Connswater Homes. Key responsibilities are: Ensuring that the Association conducts its business in accordance with its rules, the various Housing Orders, other relevant legislation and adheres to the directions of the Department for Social Development. Approval of the Business Plan, budget, and any variations and amendments to them, together with other matters which fall under the strategic role of the Board. Establishing strategic plans and policies to achieve these objectives. Defining and ensuring compliance with our values as a registered Industrial and Provident Society. Approving each year s financial statements. Establishing an appropriate framework of delegation and systems of internal control. Taking key decisions on matters that will, or might, create significant risk including approving any significant contractual arrangements, In order that it can deliver its role effectively Connswater Homes Board operates a committee structure with delegated responsibility to the following five committees: Executive Committee Development and Finance Committee Housing and Maintenance Committee Audit Committee Human Resources and Remuneration Committee 17

18 Executive Committee (EC) Committee Remits Acts on behalf of the full Board in emergency and time limited situations Development & Finance Committee (DFC) Oversees the long term strategic planning of the Association s finances Monitors & reviews the Association s current and projected performance against budget Ensures that the Association has an effective framework for financial management Oversees treasury management, procurement and financial risk Reviews, approves & monitors the new build programme and new business opportunities Housing & Maintenance Committee (HMC) Oversees the strategic housing management and maintenance functions of the Association Reviews, recommends or approves legal action in respect of debt recovery and breaches of tenancy conditions Reviews performance & expenditure in relation to the Association s maintenance service 18

19 Human Resources & Remuneration Committee (HRRC) The appointment, remuneration & appraisal of the Chief Executive Oversees the strategic human resource function of the Association Audit Committee (AC) Responsible for monitoring the financial integrity of the financial systems of the Association Reviews Connswater Homes systems of internal control and risk management system Provides an overview of the internal & external audit functions Scrutinises the financial statements Monitors the implementation of internal audit recommendations and external audit reports Reviews the internal audit action plan & scope of work Reviews the effectiveness of the overall risk strategy Recommends to Board appointment of internal and external auditors Agrees DSD Fraud Return 19

20 Board Membership Mr K Butler* BSc (Econ) MSc LM Chairman A principal engineer and retired Chief Executive of Co-ownership Housing Association, Mr Butler has experience of corporate and strategic planning, social housing policy, governance, business and financial management. Mr Butler has chaired and served on a variety of boards. A Board member since June Mr Butler claimed no expenses for Mr A Ward Treasurer Mr Ward is Wealth Management Partner with BDO. He is a member of the Chartered Insurance Institute and holds the Diploma in Financial Planning. He is also responsible for the creation and running of various investment syndicates including commercial / residential property and shares in private companies. A Board member since June Mr Ward claimed no expenses for Mr P Cregg* Secretary Following a 23 year career with the NIHE in landscape design and management of open spaces Mr Cregg is now Director of the Woodland Trust in NI. Mr Cregg brings experience of conservation and environmental issues as well as business management and public affairs. A Board member since December Mr Cregg claimed no expenses for Mr G Atkinson* MBE Retired regional manager of the NIHE, Mr Atkinson brings a wealth of experience in housing management and social housing policy having had responsibility for 30,000+ dwellings. A Board member since June Mr Atkinson claimed no expenses for Mr J Beattie* BSc (Hons) A Chartered member of the RIBA, Mr Beattie has held the posts of senior and chief architects during his career; additionally he also holds qualifications in project management and conservation. Mr Beattie has extensive experience as an architect as well as estate management, human resource and budget management. A Board member since March Mr Beattie claimed no expenses for *member of the Chartered Institute of Housing

21 Mr M Graham RCIS Mr Graham is Director of Corporate Real Estate at Titanic Quarter Ltd. Prior to this post Mr Graham was Director of Corporate Real Estate & Facilities at the Northern Ireland Science Park. Prior to joining NISP he was Principal Valuation Surveyor within DFP, he brings significant experience of regeneration and economic development projects including major urban renewal projects. A Board member since December Mr Graham claimed no expenses for Mr D Clarke A retired senior electrical engineer Mr Clarke brings technical experience in construction, building services and contract management. Mr Clarke has specific interest in development issues within the Association. A Board member since February Mr Clarke claimed no expenses or Mrs V Sterne Mrs Sterne is a retired book keeper and has experience in financial management. Mrs Sterne is specifically interested in housing management and community cohesion. A Board member since July Mrs Sterne claimed no expenses for Ms S Meikle With a professional qualification in early years education, Ms Meikle is a full time carer for her disabled son. Ms Meikle has a keen interest in community issues and regeneration. A Board member since June Ms Meikle claimed no expenses for Mr W Mortimer BA (Hons) MA LLB Dip Ed A Barrister at Law and college lecturer, Mr Mortimer brings over 30 years legal experience to the Association. A Board member since February Mr Mortimer claimed 20 expenses for

22 Committee Membership & Attendance Member and number of meetings attended Board 5 Committee & Number of Meetings Held in DFC 7 HMC 4 EC 1 HRRC 2 AC 4 Mr K Butler Mr J Beattie Mr P Cregg Mr A Ward 3 2 Mr G Atkinson 0 0 Mr M Graham 3 5 Mr D Clarke Mrs V Sterne 5 3 Ms S Meikle 5 4 Mr W Mortimer 4 22

23 Gardens out and about around our homes 23

24 24 Business Plan Review Strategic Theme: Ensure a Viable Business Key Actions 2011/12 Produce operational business plan Further explore training opportunities for board members Review Committee structure and delegated authorities to ensure they meet the needs of the current business environment Review board member skills, identify and fill gaps Review and monitor KPI s to ensure they remain relevant and appropriate Deal openly with the inspection regime and participate fully with all external and internal audits Monitor management & maintenance costs against allowances Maintain designated reserves at a level which will allow future planned maintenance to be undertaken Ensure development opportunities are supported by a sound business case and economic appraisal Ensure efficient budget setting Completed

25 Strategic Theme: Ensure a Viable Business Key Actions 2011/12 Effective treasury management to ensure competitive rates when borrowing private finance and efficient management of likely future loan portfolio Maintain financial viability at all times Review staffing requirements in line with growth Ensure convenience and choice in payment methods Ensure regular monitoring of payments and speedy identification of problem areas in accordance with Rent Management Policy Encourage maximum take up of welfare benefits Manage voids in accordance with Void Management Policy Endeavour to provide a fair balance between costs and affordability when setting annual rent increase Monitor service charges and ensure value for money Completed 25

26 Strategic Theme: Promote Quality & Choice Whilst Meeting Housing Need Key Actions 2011/12 Continued membership of the Abacus procurement group in accordance with DSD requirements Investigate opportunities to provide alternative tenures and purchase additional stock Continue to build relationships with consultants, external agencies and other associations Submission of realistic SHDP bid in conjunction with Abacus Promote community consultation on proposed developments to aid planning process Have a proactive approach to identifying additional land and development opportunities throughout the province Remain audit compliant Carry out full stock condition survey Continue with MTC agreement until end of March 2012 and consider expansion of agreement for a further 1 year Consider options for maintenance and service provision post 2013 Continually monitor & review contractor s performance against set standards and benchmarking criteria Use quality material and workmanship Meet decent homes standard Completed 26

27 Strategic Theme: Service, Standards and Performance Key Actions 2011/12 Build new homes to a minimum standard of Level 3 Code for Sustainable Homes Endeavour to complete major rehabilitation schemes to meet Eco-Homes Very Good Evaluate performance of consultants and contractors Explore innovative design solutions that help create a safe and enjoyable environment for tenants in and around their homes Produce an Annual Report for all stakeholders Produce a minimum of 3 Newsletters per year Competently & fairly deal with all complaints in accordance with the Complaints Policy Continue to widen the scope of self imposed internal audits Ensure equality issues are at the centre of policy making and community relations Deal with issues of anti-social behaviour promptly Visit all new tenants at home within 6 weeks of moving in Consider opportunities for wider community involvement Promote corporate social responsibility Completed 27

28 Preserving our Heritage Connswater Homes has created 30 apartments at Mersey Street Primary School - a grade B1 listed building. The former school which opened in 1931 and provided education on the site until June 2006, has been used to create homes in the area, representing an investment of almost 5million in the east Belfast area. In consultation with the local community regarding the site Connswater developed the historic building and its environs in conjunction with the Northern Ireland Environment Agency - Historic Buildings and architects Isherwood & Ellis to produce a sensitive design solution giving this part of Belfast s built heritage a new lease of life. By working in partnership with NIEA Historic Building, we have been able to convert most of the old classrooms directly into apartments by developing into the existing roof space. This has allowed bedrooms to be located in a mezzanine level which fronts the internal courtyard.

29 Above (l-r) Jacqueline Locke (Chief Executive), Ellie Honeyford (new tenant & former pupil of the school), Minister for Social Development, Nelson McCausland & Kevin Butler (Chairman) - at the official opening of the scheme During the 18 month construction period over 40 sub-contractors were employed in the site s conversion and refurbishment. The original façade has been retained and some 88 people have been provided with a much needed roof over their head. 29

30 Income and Expenditure Account Year ended 31 March Restated Turnover 2,617,183 2,283,234 Operating costs (1,156,209) (953,963) Operating Surplus 1,460,974 1,329,271 Interest receivable 16,681 7,595 Surplus on asset disposal - - Interest payable (506,131) (313,310) Other finance costs 16,000 (8,000) Surplus on Ordinary Activities 987,524 1,015,556 Transfers Disposals proceeds fund - - Surplus for the Year 987,524 1,105,556 Transfer to TSF Equalisation (4,075) - Actuarial gain (loss) on pension scheme (71,000) 142, ,449 1,157,857 Revenue Reserves Brought Forward 8,445,074 7,287,217 Revenue Reserves Carried Forward 9,357,523 8,445,074 30

31 Balance Sheet As at 31 March Restated Fixed Assets Housing land and buildings: Cost 78,498,588 66,139,213 Less: Housing Association Grants (57,797,793) (47,905,766) Depreciation (1,160,427) (1,004,049) 19,540,358 17,229,398 Other Fixed Assets 705, ,845 20,245,405 17,947,243 Current Assets Debtors 2,157,151 1,804,840 Cash & bank balances 1,351,174 3,379,079 3,508,325 5,183,919 Current Liabilities Creditors (1,118,831) (4,215,048) Net Current Assets (Liabilities) 2,389, ,871 Total Assets less Current Liabilities 22,634,899 18,916,114 Creditors: Amounts Falling Due After More Than One Year 13,138,300 10,386,964 Pension Liability 139,000 84,000 13,277,300 10,470,964 Financed By: Share Capital Revenue Reserves 9,357,523 8,445,074 22,634,899 18,916,114 31

32 157 Upper Newtownards Road Belfast BT4 3HX Tel: Fax: Registered Industrial & Provident No. IP166 Registered with DSD No.R8 External Auditors Internal Auditors Solicitor Bankers Toner McDowell TIAA Ltd Elliott Duffy Garrett Northern Bank