16-905-Annual-Report-A4-Proof-Final

LEADING AND GROWING Annual Report 2016 CONTENTS Foreword 03 Tenants 04 Growth 11 Culture 13 Facts and Figures 15 Identity and Communication 18 Finance 20 FOREWORD The last 12 months has been very unusual, even when compared to previous unusual years We suspect that this will be the new ‘norm’ that we need to get used to Certainly, the housing world is not for people who value steady state! So what was unusual? Well let’s take the one percent rent cut, for four years from April 2016, that the government imposed on our sector last year This was unforeseen and unprecedented, leading to an urgent need for cost reductions across our business Inevitably this impacts on services, given that the vast majority of our costs are incurred in this area, but we continue to work hard at maintaining high standards In addition, we are managing the current threat to supported housing funding, as a result of the proposed cap on Local Housing Allowance, whilst juggling the impact of further welfare reform and the huge pressure to deliver even more new housing As you would expect, we have risen to these challenges, further demonstrating our strength and resilience Our considerable investment in people over recent years has been fully tested and so far we have come through with flying colours Staff members throughout North Star have been integral to these successful outcomes During the year we have delivered an exciting re-brand of our business, which was much overdue, and you will see our new logo appearing throughout this report We also attracted European funding to assist tenants into work, took our seat at the devolution table, and won a National Business in the Community Award for wellbeing Last but not least, we are delighted to have started the process of welcoming Darlington Housing Association into the group Board and Group Senior Management Team continue to lead from the front, and we are determined to maintain our social purpose and core values, whilst seeking to deliver against the government agenda on all fronts We firmly believe that we have the skills and determination to continue our success through great people, a strong financial position, agility and experience at all levels Angela Lockwood, Chief Executive & Jed Lester, Chair of Board TENANTS Working with our communities We build homes, but more importantly we create futures, and we develop our communities from the inside out We work together to build on community strengths and to really help make a difference to people’s lives This can be seen in the vast, varied and valuable community investment and tenant involvement work we have coordinated over the last year We have also supported innovative enterprise and citizenship activities for children in Middlesbrough, and provided funding for First Aid training in rural communities in Teesdale We’ve been proud to deliver high quality and accessible youth development opportunities, including: •  outh engagement for young people in Y isolated rural communities in Teesdale Every We’ve successfully delivered a wide range of initiatives, ranging from school breakfast clubs, reading groups and homework clubs, to creating community gardens and green spaces, providing work placement opportunities and supporting local foodbanks • £1 spent generated approx £30 in social value  elped young people develop interview H and presentation skills in Stockton Every £1 spent generated approx £6 in social value £ For every £1 invested in the projects, £6.05 was generated in social impact North Star has invested £66,773 in 2015/16 Projects have Community generated an projects have additional £36,682 benefited 2,665 people Working with our tenants Tenants’ Voice Scrutiny Panel (TVSP) We work closely with our tenants and recognise the important role they play in shaping, scrutinising and enhancing our services North Star’s Tenants’ Voice Scrutiny Panel (TVSP) is a specialist group who carry out targeted in-depth service reviews The TVSP work towards getting under the skin of our policies and procedures, and hold the organisation to account The Panel reports directly to the North Star Board The TVSP’s reports and recommendations have so far led to more than 91 service improvements This has resulted in targeted investment, reduced costs and increased customer satisfaction In 2015/16 TVSP investigated Responsive Repairs and Re-Let times, providing a range of useful recommendations to help us improve our services Since TVSP have carried out their reports, performance has improved from 92.8% tenant satisfaction in June 2015 to 96% tenant satisfaction in June 2016 Responsive repairs results: TVSP found that contractors were not communicating well with tenants Contractors now have handheld devices which automatically texts tenants when they’re on their way Tenant representatives now attend contractor meetings to challenge when appropriate and to help improve services The TVSP identified that we need to make it as easy as possible for our tenants to get in touch, we’ve now diversified our online communication tools, with tenants having the ability to report a repair, pay their rent and apply for a home online and through a mobile app Re-let times results: TVSP identified that the lettable standard needed updating to reflect the tenants’ views This has reduced the cost by £100k TVSP identified that we needed to update our re-charge policy We now have a new policy in place with clear roles and responsibilities, which helps ensure it’s implemented successfully The new procedure strengthens our ability to claim back VAT on raised invoices, which will help bring additional income into the organisation North Star LINK represents the views and interests of our tenants, across all of our service areas LINK North Star LINK represents the views and interests of our tenants, across all of our service areas In 2015/16 LINK helped: • Influence our Value for Money strategy, providing suggestions as to how we can save money across the business, including reducing the responsive repairs and lettable standard, saving North Star £175k •  roduce, name and design the P tenant magazine • Monitor all tenants’ complaints • Influence the way our contractors communicate with our tenants Tenants now receive automated messages prior to their appointments, which helps reduce the amount of missed appointments and improve customer satisfaction • Design the specification on planned works • Recruit a Director • Improve customer insight, focusing on what excellent customer service looks like and ways that North Star can embed this across the business •  evelop the resident involvement strategy, D looking at the key priorities and how it can be improved •  eview the standards and specification R of our new build properties •  evelop how North Star use social D media to communicate with tenants and promote services Tenant Advisors have been involved in a variety of activities throughout the year: •  ttending maintenance contractor A meetings to discuss customer satisfaction, improvements, complaints and achievements •  Mystery shopping to make sure we’re providing an excellent service every time •  isiting our empty properties and V influencing our approach to lettings They have also been closely involved in our procurement activities, helping to set standards, along with assessing and interviewing potential contractors By contributing to our procurement activities, our tenants help us provide services that are practical, effective and offer value for money 4U The 4U panel has continued to arrange events and activities for elderly people and for those with a disability They’ve been helping combat social isolation with a range of engaging and interactive activities The panel arranged a successful Easter event, bringing together a number of older and disabled tenants They raised nearly £500, which was then used to take the tenants on a trip to Scarborough and to start planning a Summer Olympics event Supporting our tenants This year, we have reinforced our commitment to tackle increased deprivation and to create more sustainable futures for our communities, through building on the strengths of our tenants, providing Welfare Benefits and debt advice, and facilitating employment initiatives This year, we have trialled the HACT Social Value Bank Financial Inclusion Impact Measurement Tool on a small sample of the households the Welfare Benefits Officer has visited in 2015/16 The results show that £52,255 of social value has been generated Our Welfare Benefits Officer visited 474 households in 2015/16 30 households (approximately 6% of those visited) were surveyed using this toolkit and from this small sample, tenants have evidenced that since their support from the Welfare Benefits Officer they are now: Increased tenants’ income by £352,959.29 which increased North Star’s income by £114,000 We know that many people are experiencing real hardship, this can lead to anxiety, debt and a host of health problems To help combat this we have worked closely with our tenants to provide financial advice, access to banking and affordable credit, advice on energy bills and a hardship fund for those in financial crisis • Debt free • Able to save regularly • Able to pay for housing • Have financial comfort •  xperiencing greater sense E of relief from being heavily burdened with debt We’ve also partnered up with HomeCall Independent Living Services to ensure all of our tenants have the opportunity to remain independent HomeCall provides quality independent living services for over 5,000 satisfied customers across the North East HomeCall is about giving people who need extra support a better quality of life and aiding with their independence HomeCall provides tailored care and support packages 24/7 to help keep people safe and independent in their own homes By adding additional independent living services to our offer, we’re enhancing our current supported housing services, allowing people to remain living independently in their own homes, in their own communities This partnership is an example of everything we try to achieve at North Star, supporting our tenants to live healthier and happier lives Employment and skills We were part of a consortia that has attracted £5.4m into the Tees Valley to assist young people into further education, training and employment This is a significant achievement and will really help to tackle the issues that currently prevent young people from accessing available opportunities We will be working with all of the young people who live in our supported housing services as well as identifying young people who live in our other properties who may also benefit We have been awarded a grant of £324k and this has funded four new jobs within North Star Social value in procurement All of the contractors we work with are expected to deliver social value activities, which make a difference to our communities Since we adopted this approach, we have delivered £44,439k worth of social value initiatives Through our contractors’ commitment to deliver social value we have also seen the following results: work placements 13 apprentices employed through our contractors £1730 donated to local community groups and charities 10 Case study Examples of work in-kind include fitting a brand new kitchen in Skinningrove Village Hall and decorating an empty property for local charity Open Door Skinningrove Village Hall is a well used community asset in a small, somewhat isolated coastal village in East Cleveland The hall was in desperate need of a new, workable kitchen for the various groups that use the building One of our contractors, Sunters, fitted a brand new kitchen to allow the volunteers to cater for those using the hall in a much cleaner and more professional environment The hall now looks much smarter and volunteers have already commented on the huge difference the improvements have made community labour days £8152.50 of work in-kind GROWTH In 2015/16 we delivered 53 new high quality homes, with the support of grant funding from the Homes and Communities Agency Examples: In 2015/16 we invested over £4.1m into new homes Eskdale Road, Hartlepool £1.5 million development of new affordable rental homes for over 55s 16 bungalows, with two specially designed for full wheelchair accessibility The homes are highly energy efficient and benefit from their own private gardens The bungalows are designed to promote independence, choice and control Ampleforth, North Yorkshire £486k development of four two bedroom houses and two three bedroom houses Stainsby, Middlesbrough £1.3m development of eight two bedroomed houses and eight three bedroomed houses Hollinside, Barnard Castle £467k development of one three bedroom house, and five two bedroom bungalows Gresham, Middlesbrough (house swaps) £430k for nine house swaps 11 New homes currently being developed Urban Pioneers, Middlehaven, Middlesbrough Startforth, Barnard Castle Ampleforth, North Yorkshire Castle Vale, Barnard Castle St James’, Stockton 12 Abbeyhill, Stockton Lingfield Point, Darlington Investing in homes We want to ensure that our tenants have the best possible environments to live in, and this year committed to a range of investment and improvement works across our properties We’ve invested over £2m to improve 566 homes THA EHA Number Total Invested Adaptations 13 £43,000 Air source heat pumps £15,000 Bathrooms £7,000 Demolition of flats 24 £120,000 Electrical upgrades £8,000 External wall insulation 20 £201,000 Footpaths and fencing 45 £45,000 £54,000 Garages improved and demolished 86 £137,00 £14,000 Heating upgrades £2,712.25 Kitchens 15 £56,000 Roofs £52,587 Number Total Invested Investment works Adaptations 17 £42,000 Bathrooms 152 £309,000 Decent homes works 18 £31,000 Electrical upgrades 161 £73,000 Heating upgrades 88 £245,000 Kitchens 86 £328,000 Roofs 34 £272,402 Walls 16 Windows 12 Investment works 12 CULTURE Investing in our people At North Star, we place our people at the forefront of everything we Our vision, our values and our organisational strategy are all centred on creating and sustaining great places for people to live and work in We strive to make a difference and our culture is what sets us apart from the rest We hear, we listen and most importantly we act, we embrace challenge and change, continually striving to improve and enhance the lives of our staff and our tenants We’re ‘Stronger Together’ Our Stronger Together Group represents staff wellbeing They work together to produce a staff e-zine, as well as organising events and fundraising activities Over the last five years we have worked hard to dramatically increase employee wellbeing, engagement and business surplus by introducing new ways of working and giving staff a greater say in how the company is run We’ve had challenging conversations, encouraged an open and honest culture across the organisation, and given staff a key role in making the decisions that matter the most now we’re stronger together through shared leadership So much so, that our approach has been recognised as one of the best in the UK We invest in the ongoing development of everyone who works at North Star Health and wellbeing We were shortlisted in the Business in the Community’s Responsible Business awards and went on to win the Bupa Wellbeing at Work Award We were commended for how investing in wellbeing can drive positive organisational change and our approach shows how a business can act as a powerful force for good 13 2016 survey % of staff who… Feel their work is very or extremely meaningful 91% View the values and principles of North Star as very or extremely strong 87% Have a lot or a great deal of faith in Senior Team 94% State their Line Manager shares a lot/great deal of info with them 90% Are satisfied with their job 89% Are proud to work for North Star 86% Would recommend North Star as an employer 90% Feel that they have enough freedom to deliver a good service 88% Making a difference Our staff are extremely passionate about what we here at North Star, and work together to make a real difference to our tenants and our communities Staff are granted up to ten days per annum paid special leave to undertake voluntary work and community engagement activities This not only benefits our local communities, but helps provide our staff with the opportunity to really give something back, and take pride in making a genuine difference 40% 14 of our staff participated in voluntary work in 2015/16 This generated £12,000 of social value Our recent staff conference acted as a catalyst for change We challenged staff to work together to ‘make something out of nothing’ and the outcome had to benefit either our communities, tenants or the business Innovation and creativity was in abundance, and delivered real tangible outcomes The ideas presented were impressive and the delivery of these is still on-going Examples of these include: •  tea and tech session at Aspen Gardens A delivered through Barclays Digital Eagles – specifically designed to help elderly people get online We’re still working alongside Barclays to signpost our tenants to help improve their digital skills •  he delivery of a Job Club from Wellgarth T Community House in partnership with the YMCA Access to Information Project over a three month pilot We supported ten tenants over this period, and we are continuing to support the YMCA with this project moving forward • Improving energy efficiency and reducing costs for our tenants through our Asset Management Strategy A group of staff identified a list of renewable technologies in our properties and we’re now working on introducing a range of Solar / PV servicing for improved sustainability for our tenants FACTS AND FIGURES Our homes Number of homes we own and manage by service area Supported housing General needs 450 2782 Total 3634 Managed on behalf of others 360 Shared equity/ leaseholders 42 15 Number of homes by area 1000 800 600 400 200 h ut e al ye d R ur D nd er la m nd e id es Ty n n-o So Su te e s re hi St oc kt on on ds ed R hm dl id ic R ou br es ar M ca r gh ol po tle et on bl H H D ar am lin gt on Our lettings Lettings EHA THA 28.5 days 16.5 days Total number of general needs and older person lettings 285 115 Satisfaction with new tenancies 99% 100% Number of days to re-let a home 16 Our rent Income collection EHA THA Rent arrears *net of Housing Benefit 1.84% 0.75% 101.23% 100.88% Void losses 1.51% 1.04% Bad debts 2.40% 0.74% Age EHA THA 16-24 3.6% 25-34 20.2% 35-54 39.7% 55-59 8.2% 60+ 26.3% Rent collection Our tenants 1.9% Not known Tenants who consider themselves to have a disability Yes 12.8% 24.7% No 62.1% 52.4% Not known 25.1% 22.9% 17 IDENTITY AND COMMUNICATION We’re ‘brand’ new 2016 has been a year of great change for North Star, with a new brand, new digital platforms and exciting new partnerships The coming together of our three brands, Endeavour, Teesdale and North Star Housing Group, has been a very exciting step forward for us; we’re stronger together and just as committed to provide so much more than a place to live Why did we choose the name North Star? A great deal of soul searching took place during the naming process, exploring our roots and core values to help us reach a united decision Guidance, direction, a strong sense of stability and providing support to those who need it most are things we have built our reputation on, and all traits we share with the North Star The North Star is a constant natural beacon in the sky, used to help people navigate for centuries It’s a symbol of stability, guardianship and leadership, all characteristics we strive to achieve as a business, an employer and a landlord North is also indicative of our housing roots and geographical location, and Star is a term often used to describe a person who has achieved great things With all this in mind, we thought that the name North Star perfectly reflected who we are and what we In addition to the star, we have included a honeycomb in our logo to represent the honeybee This symbolises the close relationships that we forge, and the real sense of community that is at the heart of everything we How did we develop the new brand? The brand development process involved a wide range of people – North Star Board members, staff, tenants, partners and stakeholders The process involved consulting with around 135 people in workshops and interviews, and it became apparent that most people involved 18 were looking for direction, efficiencies and a more streamlined way of working As a result, we now have one brand identity across the group that is easily recognisable, robust and designed to keep us strong What did we discover? The feedback we received during the brand development was extremely encouraging, supportive and constructive, helping us reflect on our performance to date and allowing us to build a new brand that continues to provide a service that really means something to the people we work with Our brand research highlighted that through our courage, strength and innovation we provide services that benefit the communities we serve and that challenge our industry to achieve more Our stakeholders recognised that we have an inclusive and open culture with a strong emphasis on working together to achieve results, a culture that’s ambitious, aspirational and that provides direction to our tenants, communities, partners and peers The world we operate in is continually evolving, and it’s imperative that we’re flexible enough to meet these challenges head on Feedback demonstrated that one of our key strengths is flexibility, through a robust, resilient and dynamic approach we’re well equipped to tackle the big issues our sector faces and make the right decisions to keep us strong Outcome Working with staff, tenants and stakeholders it became clear that there was a real appetite to move forward with a one brand approach, offering cohesion, efficiencies and streamlining that helps strengthen us as a business Although we look very different, and we’re operating under a different name, we’re still providing the same fantastic service and high quality experience from our staff Digital launch This year, we have been working hard to improve our online services, making it as easy as possible for our tenants to get in touch As part of our new brand launch we developed a new website, which is more accessible, easier to use and much more interactive We’ve increased our online presence, giving our tenants as many options as possible to reach us and receive information We have launched new social media pages, and have a mobile phone app for tenants to access details on their tenancy, pay rent and log repairs We have a new digital strategy in place that will help improve the way we communicate with our tenants and ensure we remain upto-date with new digital technologies 19 FINANCE Financial strength Cash of Total income of £18.6million – an increase of 2.1% on 2015 £11.9million invested in new and existing homes £7million generated from our operating activities This year North Star has delivered a financial surplus of £3.0million £6.2million new developments (Compared to £2.3million in 2015) £2.2million £1.9million major works responsive works £1.6million annual and cyclical works 20 2014/15 statistics have been re-stated as a result of FRS102 (Financial Reporting Standard 102) Value for Money Procurement North Star is committed to adopting a comprehensive approach to managing our resources This enables us to provide cost effective, quality services to tenants It also allows us to create the capacity to invest in new homes and services for the benefit of our wider communities Our overarching objective in the procurement choices we make is to deliver the optimum balance of cost and quality for the organisation and our tenants We aim to deliver value for money, generate savings and social value so that we can reinvest back into the organisation Value for Money is not just about cost, and not just measured in financial terms It is about business effectiveness and is an integrated and embedded approach rather than something that is separate or an annual task that has to be completed North Star’s comprehensive approach to VFM is not new, but it has been progressively honed over the years Our focus on continuous improvement has enabled us to develop and invest in keeping North Star strong How each £1 of rent is used 2015/16 In November 2015, to accelerate procurements for a range of contracts to realise savings and deliver efficiencies, we appointed a Procurement Officer on an invest to save basis We have invested in speeding up our procurement activity and saved £248k as a result During 2015/16 we implemented a new approach that maximises social value through our procurement activity, with successful contractors signing up to deliver social value activities This has generated £44k of social value Procurement through Collaboration Building upon the success of our repairs and maintenance procurement in 2014/15, we have recently worked with the same partners to procure a grounds maintenance service and implement a new legal services framework 32p Routine & Planned Maintenance 22p Left to invest in new homes 19p Service delivery 15p Interest on our loans 8p Improvement costs 4p Other Costs We are working to explore the opportunities of joining a cost sharing group to maximise VAT efficiencies, share systems and develop common approaches for gas and fuel servicing In collaboration with five housing associations across the North East we are exploring ways in which we could share services and pool resources The reviews are in the early stages, however the group are focusing on the themes of: tenant contact, repairs and maintenance and back of office functions North Star is an active member in these discussions 21 Board and Governance We currently have a Board of ten members who have operated within an overlapping Board structure since April 2011 We have an open recruitment process, using an external consultant that ensures we recruit people who have the right skills and behaviours The Board has seen a 35% turnover over the last three years, which has further strengthened skills and refreshed our approach During the year we: •  pdated our board skills matrix to U ensure and evidence that board continue to have the necessary skills to keep North Star strong •  eld two board residential H weekends where board heard from the National Housing Federation (NHF) on the post-election housing world and from the Bank of England on the national and regional economy Sessions also included board appraisal, succession and future visioning •  arried out a very detailed selfC assessment against the Regulatory Framework and the NHF Code of Governance This was audited by our internal auditors Mazars who provided substantial assurance •  ontinued to retain top regulatory C judgements of G1/V1 •  eld an “Iron Grip” session with an H external consultant challenging our thinking, planning and management of risk with focused and tailored scenarios • •  eld a half day recovery planning H session with another independent consultant to further develop this element, which resulted in a detailed recovery plan Stress tested our business plans North Star Pay Chair £9,744 Deputy Chair £4,845 Group Audit Committee £4,080 Board Member £3,264 22 Jed Lester Chair Jed is a Senior Partner and Director at Bained Jewitt Chartered Accountants and Business Advisors Morgan McClintock Deputy Chair Morgan is the former University Secretary at Teesside University, now retired Andrew Marshall Chair of Group Audit Committee Andrew is the founder of Andrew Marshall Residential Properties and a qualified accountant Pat Buckley Pat is a former Head of Policy at Stockton Borough Council, now retired Linda Bird Linda is a former Human Resource Development Manager at Sunderland University, now retired Paul Craggs Paul is a former Commercial Manager for Shepherd Construction, he is now a Construction Consultant and owner of a property letting company in Darlington Adrian Hill Adrian is a North Star resident, a North Star LINK member and a member of Skinningrove Link-up Martin Waters Martin is a former employee of the Homes and Communities Agency, he now works as a Consultant Neil Bouch Neil is the Director of Tenants and Communities with the Gateshead Housing Company and a member of the Chartered Institute of Housing Peter Waugh Peter is a former Director of Huntsman Pigments He now works as a Consultant in the global chemical industry and as an Industrial Tutor at Durham University ENDEAVOUR HOUSING ASSOCIATION – STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDING 31 MARCH 2016 Turnover Less: operating costs Operating surplus Interest receivable and similar income Interest payable and similar charges Surplus for the year 2015/16 £’000 2014/15 £’000 15,004 (10,440) 14,699 (10,068) 4,564 (2,262) 4,631 14 (2,600) 2,309 2,045 ENDEAVOUR HOUSING ASSOCIATION – STATEMENT OF FINANCIAL POSITION AT 31 MARCH 2016 2015/16 £’000 2014/15 £’000 Fixed Assets Housing properties Other fixed assets 155,267 1,692 150,474 1,702 Total fixed assets 156,959 152,176 1,986 674 1,804 1,776 Current Assets Trade and other debtors Cash at bank in hand 2,660 3,580 Current Liabilities Creditors falling due within one year (4,121) (4,682) Net current assets/(liabilities) (1,461) (1,102) 155,498 151,074 (140,544) (89) (138,469) (49) Total net assets 14,865 12,556 Capital and reserves Share capital Revenue reserves 14,885 12,556 14,885 12,556 Total assets excluding pension assets/(liabilities) Creditors falling due after more than one year Provisions for liabilities and charges TEESDALE HOUSING ASSOCIATION – STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDING 31 MARCH 2016 Turnover Less: operating costs Operating surplus Other finance (expense)/income Interest payable and similar charges Surplus for the year 2015/16 £’000 2014/15 £’000 3,421 (2,481) 3,338 (2,813) 940 (1) (329) 525 (310) 610 217 TEESDALE HOUSING ASSOCIATION – STATEMENT OF FINANCIAL POSITION AT 31 MARCH 2016 2015/16 £’000 2014/15 £’000 Fixed Assets Housing properties Other tangible assets Intangible assets 16,574 323 15,905 354 Total fixed assets 16,897 16,262 Current Assets Trade and other debtors Cash at bank in hand 2,012 922 2,904 546 2,934 3,450 Current Liabilities Creditors falling due within one year (1,106) (938) Net current assets/(liabilities) 1,828 2,512 Total assets less current liabilities 18,725 18,774 (12,836) 41 (1,730) (12,754) (45) (2,448) Total net assets 4,200 3,527 Capital and reserves Share capital Restricted reserves Revenue reserves Pension reserves 190 4,260 (250) 172 3,668 (313) 4,200 3,527 Creditors falling due after more than one year Pension Provisions for liabilities and charges 23 North Star Bringing together the skills, resources and values of Endeavour and Teesdale Housing Associations We are a strong organisation with a clear vision of what we want to achieve for the people who live in our region – creating homes, building futures GET IN TOUCH Phone: 03000 11 00 11 Email: customer.services@northstarhg.co.uk Online: www.northstarhg.co.uk Visit / Write: Endeavour House, St Marks Court, Thornaby, Stockton-on-Tees, TS17 6QN 14a Redwell Court, Harmire Enterprise Park, Harmire Road, Barnard Castle, County Durham, DL12 8BN /NorthStarHG @northstarhg