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Financial Strength

Achieving our priorities through strong finances

Y Fory corporate theme Action, Measure or activity Type Source Period Target Progress or Performance Progress year to date Assurance Owner Regulation Standard Evidence
We have robust controls and good financial planning in place We will monitor, report and comply with all our funders covenants Existing Target On going Achieved Monitored on a quarterly basis and reported to the Board along with a forecast to year end Achieved Externally verified by the Auditor Lorraine Oates 8 Q3 Management Acccounts
Our 30 year business plan is robust and- has sufficient resources to deliver the targets within “This plan is our plan”- ensures financial forecasts are based on appropriate and reasonable assumptions- is tested against a range of possible scenarios Existing Task Annual Full compliance Achieved – FVJ = Standard Achieved Externally approved by our Funders Lorraine Oates 8 FVJ received December 2017
We will keep a register of assets and liabilities that is accurate and regularly monitored Existing Task On going Full compliance Register in place since 2016 and is up to date Achieved Reviewed by Audit Committee Lorraine Oates 10 Assets and Liabilities Register
We will adhere to a Treasury Management Plan that has been approved and reviewed Existing Task Annual Full compliance Board approved the Treasury Management Policy in June 2017. We reported on performance to the Board in November 2017 Achieved Externally reviewed by Capita Lorraine Oates 9 Treasury Management Board reports
We will strive to work with external auditors to produce financial statements that are in line with current accounting policies and practice Existing Task Annual Full compliance 2016/17 Financial Statements – no misstatements Achieved External auditors’ management letter Lorraine Oates 8 2016/17 Financial Statements and Mazars Audit Completion Report
We will ensure that there is effective financial planning in the medium term Existing Task On going Achieve 2018/19 Business Plan Report included commentary on Medium Term Financial Planning. 2019/20 – 2023/24 Business Plan Assumptions agreed by the Board in March 2018 and EMT on 1/12/17. March 2018 BP report includes a section on MTFP Achieved Report to Board Lorraine Oates 7 2018/19 Business Plan Report March 2018
Suitable financial controls are in place and will be monitored and adhered to Existing Task On going Full compliance Key Financial Controls Audit has been conducted. Substantial Assurance given Achieved Report to Governance Working Party Lorraine Oates 8 Key Financial Controls annual audit reports
There are robust Standing Orders in place for financial management and they are monitored and adhered to Existing Task On going Full compliance Standing Orders in place (available on the Cwtch) – last updated on November 2016 (due for review Nov 18) Achieved Report to Governance Working Party Mike Owen 8 Data not entered
We have a robust bribery and corruption policy in place and it is monitored and adhered to Existing Task On going Full compliance Bribery & Corrpution Policy in place (available on the Cwtch) – last updated in April 2017 (due for review April 19). Monitored by Head of Finance. Achieved Report to Governance Working Party Mike Owen 8 Data not entered
We will produce an annual self evaluation and compliance statement (including achieving VfM) and will keep our Assets and Liabilities Register up to date Existing Task On going Achieve VfM was evaluated for the first time in 2017 with the Democratic Body confirming that MVH had provided Value for Money in 2016/17. This exercise will be carried out again in June/July 2018. The VfM Statement and the Annual Compliance Statement were submitted for the Regulatory Assessment. The Assets and Liabilities Register has been maintained and is up to date as at 31/3/18. Achieved Report to Board Lorraine Oates 6 VFM Statement 2016/17; Compliance Statement; Regulatory Judgement 2017 and Assets and Liabilities Register
We take a mutual approach to financial management There is a robust risk register that considers risks, mitigates risk and is used throughout the organisation Existing Task On going Full compliance Strategic Risk Register in place. Recommendations around embedding risk management across the organisation are in progress Achieved Report to Audit Committee Lorraine Oates 3 Follow-up audit of Risk Management
We will have an internal audit of income collection to esnure there are robust process Existing Task On going Reasonable assurance Internal Audit report gave Substantial Assurance in 2017 Achieved Internal Audit Lorraine Oates 3 Internal Audit Report to Audit Committee Nov 2017
We will reduce and prevent liability claims Existing Task Reasonable assurance Risk Awareness training was delivered to frontline staff in 2017 by Zurich (our previous insurers). Training on claims handling has also been received by several members of staff in 2017. Monitoring is in place and we can now identify trends more easily. Reasonable Assurance was given by Internal Audit in 2017. A new process for disrepair claims has also been in place since the summer. More training lined up for 2018. On schedule Annual report on insurance to Board Lorraine Oates 3 Internal Audit Report to Audit Committee Nov 2017 Site Audit training due 19th July 2017. Process to be reviewed
We will consider the needs of the existing housing when considering the building of new housing New Task On going Full compliance Thomas Street assessment of refurbish or demolish and rebuild based on needs assessment of tenants Achieved Report to Board Vic Slade 10 New Build Working Group
We will include community benefits as part of every contract tendered greater than Ł100,000 and this is monitored and reported New Task On going Achieve Achieved Achieved Report to Board Vic Slade 5 Community Benefits requirement included into the following contracts – BELL DECORATING GROUP,DELACEY & SONS, JASONIC LTD, COLIN LAVER HEATING LTD, POWELL SCAFFOLDING SERVICES LTD, S R BUILDING SOLUTIONS LTD
All voices within the mutual will have had a say in the budget setting process New Task On going Full compliance Members of the Democratic Body were involved in the Star Chamber – both tenant and staff representatives Achieved Report to Members Lorraine Oates 2 Star Chamber session and Budget Report March 2019
We will measure and publish the investment in our communities for every Ł1 generated from operations New Target On going Achieve This is an objective in Yfory Cryf – our VfM Strategy. Democratic Body have participated in the initial consultation exercise in February 2018. Measures not yet in place. On schedule Report to Board Lorraine Oates 5 Not yet available
We want to use our money efficiently That more than 80% of our tenants will be satisfied or very satisfied with our approach to value for money Existing Target On going Achieve The recent STAR survey showed a reduction in satisfaction around VfM from 80% to 77%. This was disappointing. We conducted a survey of 600 of our Members and used focus groups to understand this more fully and to respond to the tenants’ voice. Our findings were that tenants want to hear about our VFM acheivements through different mediums e.g. social media and local notice boards. We have a clearer picture of what they want to hear about and these will form our new Golden Rules for VFM for 2017/18. On schedule Star survey Lorraine Oates 6 Not yet available
We will strive for the amount of rent lost through properties being empty to be lower than 1.5% of total rent Existing Target Annual Achieve 0.98% On schedule Monthly monitoring and quarterly reporting to Board Vic Slade 6 Finance reports
We will collect more than 96.5% of rent due Existing Target Annual Achieve 96.06% Exceptional Reporting Monthly monitoring and quarterly reporting to Board Vic Slade 6 Finance reports
That the amount of former tenant arrears of rent that is written off as not recoverable will not exceed 1% Existing Target Annual Achieve 0.52% On schedule Monthly monitoring and quarterly reporting to Board Vic Slade 6 Finance reports
Our earnings before interest tax and amortisation of major repairs will improve each year New Target Annual Achieve Had it not been for a technical adjustment in the 2016/17 Financial Statements relating to our financial instruments (loans) then the surplus would’ve been more than 2015/16. Achieved Audit Committee Lorraine Oates 3 2016/17 Financial Statements
We will recover all service charges made Existing Target Annual Achieve 107.00% Achieved Monthly monitoring and quarterly reporting to Board Vic Slade 6 Monthly KPI Reporting
We will recover more than 80% sundry debts Existing Task Annual Achieve 69% collection rate to end of March 2018 Exceptional Reporting Monthly monitoring and quarterly reporting to Board Lorraine Oates 6 March KPIs
We will measure overheads as a percentage of adjusted turnover New Target Annual 10% 11.9% in 2016/17. This measure is always high because of the office lease Exceptional Reporting Financial statement Lorraine Oates 9 Housemark Report 2016/17
We will achieve a balance between 30% of resources spent on short term repairs and 70% spent long term replacement New Target Annual Achieve. 25:75 Achieved Report to Board Vic Slade 6 As per definition agreed previously and caculated by Finance Team
We will measure and compare the cost of our housing per unit New Task Annual Achieve Ł454.59 in 2016/17, slightly higher than 2015/16 – 3rd quartile performance On schedule Quarterly financial reporting Lorraine Oates 6 Housemark Report 2016/17
A measurement of services on cost and quality will take place and the results reported and acted upon Existing Task Annual Achieve 2016/17 Housemark report received in December 2017 and will be shared with the Board and Democratic Body in May 2018. A new VFM Balanced Scorecard has been reviewed by both the Democratic Body and the Board; this will be evaluated in June/July 2018. On schedule Externally validated by Housemark Lorraine Oates 6 Housemark Report 2016/17; VFM Balanced Scorecard 2017/18 approved by Democratic Body in November 2017 and shared with the Board in January 2018 (with some agreed amendments)
We will review 20% of all major areas of expenditure over Ł100,000 within the year to extract greater value New Task Annual Achieve This measure is under review by the Democratic Body and the Board (VFM GoldenRules). We have tendered the Insurance contract in 2017/18 which is worth around Ł450,000 p.a. and is one of our largest single contracts. We have secured two new insurance brokers  and saved over Ł100,000* in 2018/19. We have also engaged with Inprova to develop a new Procurement Strategy for 2018/19. On schedule VFM Statement Lorraine Oates 6 Insurance tender, feedback from Golden Rules review  and Procurment Strategy.
We will identify alternative, cheaper, more innovative sources of funding for capital projects New Task On going Achieve At present we do not need to source new funding however we are aiming to strengthen our business plan to give us more options around new finance in the short to medium term On schedule VFM Statement Lorraine Oates 6 2018/19 Business Plan shows a much stronger interest cover ratio from 2019/20 onwards. This will be discussed with our lenders in July 2018 with a view to negotiating the annual business plan requirements and discuss the potential to re-finance part of our loan or borrow more for development
We will ensure that all IT systems are available at levels that meet our mutual’s needs Exisitng Target On going 100% Monitoring to be put in place Exceptional Reporting ICT Strategy Lorraine Oates 6 Will be tasked to the new Head of ICT for 2018/19
We will look to create spare capacity in order to offer services to other organisations but never to the detriment of our tenants New Task On going Achieve This was a VfM Golden Rule which has not been progressed to date Exceptional Reporting VFM Statement Lorraine Oates 6 The Golden Rules review by the Democratic Body and tenant focus groups has shown that this is not a priority and therefore we will not actively report on this measure from 2017/18 onwards
We will adopt the 10 VFM measures as set by the CHC finance forum and we will compare our performance to the global accounts New Task On Going Achieve The comparisons for 2016/17 are below Achieved VFM Statement Lorraine Oates 6 Global Accounts 2016/17