Fold's 2011 AGM
Print this PageChairman’s Report – Fold’s Annual General Meeting
We reflect on a very successful year for your Housing Association in what was the 4th year of our current 5 year Corporate Planning Cycle.
Introduction
In the face of continue economic uncertainty and pressure on public expenditure the NI Social Housing sector performed well and Fold played a key part in that success:
· The collective housing association movement achieved a record of over 2,400 new starts during 2010/11;
· Associations managed to capitalise on very competitive construction and design consultant rates thereby maximising the value of housing grant;
· Business re-engineering, reduced staff turnover, sickness and absence and increased collaboration helped to deliver significant operational efficiencies;
· Fold continued to attain high levels of end-user satisfaction across its diverse customer base.
However we also encountered challenges in the year:
· Supporting People and SNMA funding were flat-lined for another year whilst the DSD expressed its intention to phase out SNMA over 4 years;
· Seven housing associations were suspended from the development programme following the DSD’s inspection;
· Reductions in referrals from the Health and Social Care Trusts have lead to increasing voids within our supported housing schemes;
· The DSD confirmed a significantly reduced capital budget for the new Comprehensive Spending Review period, together with a further 10% cut in Housing Association Grant.
· The freezing weather and water shortages over the Christmas period tested our Telecare out-of-hours service and caused considerable hardship for our tenants and residents.
Fold worked particularly hard during the year in seeking to persuade the Minister, the DSD and the Social Development Committee on the key issue of SNMA. It now seems likely that Fold and NIFHA will need to repeat this process with the new Minister Nelson McCausland and the new Director of Housing Jim Wilkinson within the DSD.
Whilst the new Minister will doubtless have a refreshed agenda for social housing, we are expecting continuity in thinking from the previous administration, particularly around:
· Development of Homes and Communities Strategy;
· Progression towards a smaller number of housing associations;
· Increased efficiencies within housing associations coupled with higher borrowing from private lenders;
· The splitting of NIHE along landlord and strategic functions;
· Reviewing the Common Selection Scheme;
· More robust regulation of private landlords;
Fold is keen to work with fellow associations and its representative body NIFHA in partnership with the new Minister and the Social Development Committee in determining the best outcome for those in need within the affordability of the Comprehensive Spending Review.
If I may focus on some highlights from the 2010/11 year:
Finance & IT
· Despite pressures in a number of key areas we returned a strong financial performance resulting in a surplus of £1.5m after transfers to designated reserves. Our growth in housing units provided a 6% increase in turnover from housing activities. However this uplift was offset by reduced activity in non-housing areas such as Staying Put which saw reduced activity in 2010/11. The overall turnover remained constant at £33m. The asset value of our properties for the same period increased by £36m to £309m (before depreciation). Fold’s pension liability in the year reduced significantly to £1.4m (from £6.5m in 2009/10).
The strength of our balance sheet will continue to serve us well as we continue to borrow funds in the private market for new social housing projects. With marked reductions in HAG expected in future years, the Board agreed in 2010/11, to consider on a case-by-case basis to raise the contribution from private capital in order to fund new housing developments.
From the strong financial base Fold can look forward to continuing growth.
· We invested close to £0.6m in IT during the year, part of an overall £2.3m investment over four years. We are bedding in key support systems such as EPIC for Care Services, enhancing our HR and Housing reporting systems and increased the scope of our Fusion system in account management. We continue to reinforce our server network and have put in place robust service and response contracts to support our telecare services.
Development
· The year proved challenging for Fold’s Development Division and our procurement group, Accord. Fold commenced 106 new housing units across 10 housing projects. Fold’s outturn was lower than expected mainly through the transfer of a competition scheme being delayed into 2011/12 by the OFMDFM and as some private developers chose to reject the revised HAG levels confirmed at the start of the year. In the previous year we had achieved 427 new starts across 11 sites. Over the two year period we exceeded our corporate plan target. Housing Association Grant of £14.7m was drawn down. Fold also managed to complete 346 new homes in 2010/11.
· The Accord Procurement Group comprising Fold, Triangle, Habinteg, Alpha and Gosford housing associations delivered its second annual development programme equivalent to some 163 new starts. Our performance was below target as one of our main members was suspended from the development programme during the whole year. We successfully tendered the Design Consultants Framework during 2010/11 and achieved completion on almost all Accord Business Plan objectives. The Accord members recorded a £7m saving on contract price versus pre-tendered estimate for new development projects. Elsewhere we achieved consultant fee reductions of some 27% versus those obtained in the ‘bench mark’ year. Accord’s progress was audited by the DSD at year end and we await receipt of the draft report.
· Looking into 2011/12, Fold has set itself a target of between 240-345 new starts as part of an overall Accord programme of 400. We expect to complete a further 334 homes during the year.
· We understand that funding is earmarked under the new CSR (2011/12 to 2014/15) to provide 5,000 general needs and 850 supported new houses. We are concerned that the recent cuts in Housing Association Grant may prove difficult to develop within. Furthermore, the lack of guarantees around revenue funding in supported housing have caused Fold to withdraw commitment to such projects at this time.
Housing
· In Housing Management we:
- Increased our housing stock to 4981(including supported) at March’11.
- 752 Housing Lettings were made during the year.
- Void levels for general needs and sheltered housing fell to 1.13%, well with the target of 2% despite declining waiting lists for sheltered accommodation;
- Net Arrears and past tenant debt at 3.16% of total collectable income, well within the 4.5% target.
- With over 10,500 Emergency, Urgent and Routine repair requests, Fold’s response performance was within target in all categories.
- Over £6m was invested in the maintenance and improvement of our stock.
· Building on the previous year’s improvements in arrears recovery the Housing Team further enhanced Fold’s cash collection performance. This progress is particularly timely given the implementation of the Coalition Government’s welfare reforms and the anticipated added risk they may bring to rent collection.
· We held three successful Resident Forums this year. They were well attended by residents and the feedback on the issues covered has been very positive. We also held a first General Needs forum with a focus specifically on the issues affecting people in family and singles accommodation. I would like to take this opportunity to thank our Tenant Representative Board Members: Miss Deirdre Hamil, Miss Christine Quinn and Mrs Anne Harper for all their commitment and contribution to the Board and the Care Services and Housing Sub Committees during 2010/11. Miss Quinn retired during the year and Mrs Harper reached the maximum term she can serve under our governance arrangements. We would like to thank them both and Ann in particular as she served two terms in office, for all their hard work on behalf of fellow tenants.
· As we say good bye to Anne and Christine, we welcome Miss Elizabeth Jack of Toberdoney Fold, Kilrea and Mr James Morrison of Blaris Fold, Lisburn. They together with Miss Deirdre Hamill of Loughview HWC elected for her second term will doubtless continue to represent the interests of Fold tenants and residents. We are very proud to have three board members elected from our customer base – we feel this illustrates our genuine commitment to take on board at the highest level the views of our residents.
· We completed our tenant survey at the end of the year and are pleased to confirm high levels of satisfaction among our tenant base:
o 89% were satisfied/very satisfied with their Fold property;
o 88% were satisfied/very satisfied with Fold’s overall service;
o 81% of those reporting repairs were satisfied/very satisfied with the way Fold staff dealt with it;
o However 18% of general needs tenants were either dissatisfied/very dissatisfied with how staff dealt with it;
o 13% of respondents reported an incident of Anti-social behaviour;
o 89% felt their rent was value for money;
o 39% of general needs and 10% of sheltered tenants said they would avail of debt advice, and;
o 31% of general needs tenants confirmed they struggled to afford to heat their homes.
The survey highlighted areas for improvement in customer service as well as issues of concern for tenants around fuel poverty and anti-social behaviour. We remain committed to improving our overall housing management service and compiled our third consecutive submission in 2010/11 to the Code of Practice for Housing Services.
· We are working with local community groups, the PSNI and public representatives to tackle Anti-Social Behaviour within the neighbourhoods we manage. Fold was one of the key signatories to the Colin Glen information sharing protocol aimed at reducing anti-social behaviour in West Belfast. We will introduce an Involvement and Empowerment Strategy for our residents and communities in 2011/12. We are also pleased to report a significant reduction in the incidents of burglary in our sheltered schemes over the last 12 months compared to the previous year. This followed a number of Fold initiatives including the establishment of Neighbourhood Warden Schemes across our sheltered stock in partnership with the PSNI.
· The Housing Executive’s Supporting People team carried out a Quality Assessment and Scheme Review of our sheltered housing services in the 2010/11 year. I am very pleased to note that the team assessed our sheltered services at Level B which demonstrates ‘a service that can evidence good practice, takes a proactive approach, goes beyond statutory requirements, meaningfully engages with clients, has staff who are confident to take the initiative, challenges its own performance and demonstrates a commitment to continuous improvement’.
· During the year we implemented many of the recommendations of the Property Services Best Value Review - 2009/10. Whilst delivering the repairs, cyclical and major works programmes, the property services team have successfully re-structured the department and introduced new work and quality processes. The new procurement processes now strictly adhere to the HA Guide whilst file management is moving towards ISO9002 accreditation in 2011/12. The DSD Corrective Actions from the 2009 Final Inspection Report have been largely implemented.
· The Property Services team have developed a cyclical and major works programme setting out Fold’s investment plans for the next three years. The team plan to commission a new Stock Condition Survey in 2011/12. The costs relating to response repairs rose significantly above budget during 2010/11. This variance was investigated in detail and found mainly to relate to a change in stock profile within increased general needs properties and older sheltered stock. An new IBS invoicing system planned for 2011/12 will provide more insight into the relationship between housing stock and response repair costs.
· During the freezing weather conditions in December 2010 and the subsequent rapid thaw in January 2011, Fold’s housing stock performed well in the face of unprecedented conditions. Repair requests equated to around 8% of stock at the time whilst only 5 properties suffered significant water damage.
Care Services
· The Care Services Budget was considerably undermined by the problems at the Gnangara HWC Scheme in Enniskillen. Fold delivered this excellent project on time for the Western Health and Social Care Trust and expected to achieve a full complement of referrals by financial year end. Instead we find ourselves with only 6 residents in situ and the Trust now seeking to re-negotiate the charges on the supported bungalows. The Trust cite the economic downturn as the main contributor to commissioning problems with the scheme. The staff have been agreed to reduce their hours by 50% in an effort to mitigate losses on the scheme. We are working with the Trust and the Health Board to urgently resolve these difficulties. However Gnangara illustrates the high risks of providing supported housing for people with complex needs. The lack of any guarantees on revenue funding leave associations potentially open to severe financial risks. At year end the Care Services business has been left with a deficit of £250k on this scheme alone.
· Our management performance in respect of Supported Housing exceeded targets with voids finishing higher at 3.77% and arrears at 5.05%.
· Fold’s innovative mobile therapy service, the ‘Brain Bus’ completed its process of evaluation and we await the findings from the NI Dementia Centre. A Trust partner has yet to emerge to give financial support leaving the service with a growing deficit. The Care Services team have been marketing the service to local housing associations, charities and private care providers. They have also identified the potential for additional services including dementia diagnosis. In the meantime we are in negotiations with Atlantic Philanthropies on restructuring their funding contribution.
· Fold had been working with the Southern Health and Social Care Trust, Supporting People and the charity Prospects to provide supported housing for adults with learning disabilities living in Lisburn. We originally purchased a site from Prospects several years ago with Fold monies. We wrote to the Trust Chief Executive in early 2010/11 seeking a commitment to the project. We were informed that the business case would be approved by the commissioning partners in 2010. This has not happened and Fold has decided to look at other development opportunities for this site.
· We provided over 14,000 daycare places at our four centres at Millbrook, Avondale, Seven Oaks and Manor Court. Our daycare facilities at Manor Court HWC will be significantly enhanced with the construction of the new sun room. We managed to create a Sensory Garden at our Knockeden HWC Scheme for people with learning disabilities. The garden was funded by generous contributions from local businesses and officially opened in August 2010.
· All our registered schemes continued to achieve very positive reviews following inspections by the RQIA. The respective reports commended the care and support provided by our staff to residents in our schemes.
Telecare
· Our connected customer base grew marginally by 2% to 23,205. The number of incoming calls answered throughout the year grew in the same period to over 400,000 calls. A further 150,000 good morning calls were made during the year.
· The Telecare business recorded two notable tender successes at the end of 2010/11. After 3 years of hard work and running an extended pilot scheme, Fold and its TF3 partners Tunstall and S3 secured the Vital Signs Monitoring contract from the European Centre for Connected Health. The contract worth around £14m will operate over 6 years. Fold will be providing a Telehealth service to all of the Northern Ireland health trusts for up to 3,000 users. Fold’s share of the contract is expected to lead to the doubling in size of the current Telecare business. We expect to move towards system testing over the Summer and full operation in the Autumn. Elsewhere Fold Telecare secured the Oaklee Housing Association account for the telecare monitoring of their sheltered tenants, equivalent to around 2,000 customers. We continue to pursue further business growth opportunities with Dublin City Council and the HSE in the Republic of Ireland.
· Fold Telecare’s out-of-hours service was stretched in the face of increasing calls due to the unprecedented freezing weather in December 2010, the rapid thaw in January 2011 and the subsequent water shortages. Call volumes rose by 30% whilst maintenance calls were up by 50% in the same period. The staff performed well and demonstrated high levels of commitment and customer care. The association reviewed its overall performance after the major incident and a number of system enhancements have since been introduced.
· We retained our certification with the Telecare Services Association Codes of Practice in 2010/11 for both calls-handling and alarm installation operations.
Staying Put
· Staying Put performed well during the year against Housing Executive targets, helping almost 800 families with disabled facility grants. The business unit managed to achieve a lower than budgeted deficit in the year however the outlook for future funding remains challenging.
· The team successfully tendered and let a contract for the provision of shower adaptations. This work in accordance with a DSD recommendation transferred into the Maintenance Department in early 2010/11.
· Eileen Askham retired during the year having completed over 24 years of service for the association. Eileen contributed greatly to the growth and diversity of Fold’s Care Services business. She was also a key player in the successful establishment of Fold Ireland.
· Fiona McAnespie has taken over the Care Services business at a challenging time. No other part of our business is more exposed to cuts in government funding and uncertainty around the Health Budget. Fiona and her team are tackling these challenges whilst continuing to demonstrate an excellent level of care and support for all our residents.
HR & Corporate Services
· We conducted a Best Value review of Human Resources in 2009/10 and have continued implementing the recommendations in 2010/11. Restructuring coupled with the move towards paper-less operations has introduced efficiencies and improved response times.
· Fold employs over 800 staff employed across 50 locations in the province. And during the year the HR team delivered an extensive training and development programme costing around £250k. We were pleased to see 33 of our staff attain NVQ’s in training.
· We held our Staff Conference in October 2010 at the Hilton, Templepatrick. The theme of the event was ‘Celebrating Customer Service’. Over 200 staff attended to hear presentations from speakers in the private and public sector. Staff feedback was very positive in relation to the content and relevance of breakout sessions.
· We are committed to ensuring our tenants, staff and members of the public experience a safe working environment at Fold. Our Health, Safety, Risk and Insurance Committee continue to monitor performance, investigate incidents and oversee corrective actions where necessary.
· We received notification on the 18th April that Fold following its assessment, had provided evidence that complies with the certification requirements for the Customer Service Excellence (CSE) Standard. Fold’s total organisation has been certified to the CSE Standard.
· Staff attendance is a key issue for all organisations and at the end of the year Fold’s absence figure was 3.71%. Attendance during the year has been the best on record and the management and staff are to be congratulated on this achievement. Elsewhere our staff turnover dropped to 12.57%.
· We have continued with staff welfare initiatives including our Occupational Health Care MOT service, staff counselling and our contributory cancer screening process. Fold held its third Family Fun Day in September. This was deemed a great success with nearly 300 staff and family members attending.
· We revamped Fold’s Business Continuity Plan (BCP) during the year. We were able to incorporate learning relating to the Christmas Major Incident of unprecedented weather conditions and water shortages. The BCP will be rolled out across Fold in Qtr 1 2011/12.
· We appointed a new Corporate Services and Procurement Manager in January 2011. He will be focussing on ensuring compliance in procurement with the HA Guide across the association. This is now a critical aspect of the DSD’s governance inspection process. A Procurement Management Group comprising staff from each business unit will now co-ordinate procurement activities. A Procurement Strategy was adopted in March 2011 and a companywide policy and procedure will be available by the summer 2011.
· The Board enjoyed a successful Strategy Day in Enniskillen last year which gave members the opportunity to consider the impact of the latest CSR and the findings from the DSD’s Inspection of housing associations. We were pleased to meet and dine with tenants of Inis Fold and to attend the Official Opening of Castle Erne. Members also visited Gnangara HWC.
· Marie Pickles after 20 years at Fold, retired from the association and we thank her for her contributions to Fold over the years.
· Gillian Somerville has only recently taken up the post of Director for HR and Corporate Services and we wish her well for the future. We are grateful for Fiona Campbell’s management in the interim.
Fold Ireland
· I would like to mention the exceptional performance of our team in helping to turn around the financial and operational performance of our sister association – Fold Ireland. Our senior team have worked exceptionally hard this year to resolve operational issues within Cherryfields and to enhance the line of assurance between the Board and the local delivery team.
Conclusion
In terms of the Board we sadly have seen the retirement of our long serving member and friend, Robin Holliday. Robin joined Fold when Lisnagarvey Housing Association was merged into Fold and has given great service over the years. As mentioned earlier we are also sad to see the departure of our long serving tenant board member, Anne Harper.
Despite the difficulties it has been another successful year and significant progress has been made and as I conclude these comments I know the Board would wish me to place on the record our thanks to the Chief Executive, the senior management team, and all our staff for the excellent efforts they continue to make on behalf of the organisation. Any success we enjoy is due to their hard work.
Thanks to my fellow Board members for their support. You make an invaluable contribution to Fold. I know this represents a substantial commitment of your time to attend Board and sub committee meetings.
Finally thanks to our stakeholders, to the DSD the Housing Executive, our voluntary and statutory partners, our tenants and their representatives on the Board. Your support is vital if Fold is to continue to prosper.
