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BOARD AGENDA 28 JUNE 2017 @ 5.30pm

VENUE: HHP BOARD ROOM, CREED COURT, STORNOWAY

No Item Action Page No Time

ATTENDANCE & APOLOGIES

1 Attendance & Apologies Noting 3 5:30pm

PRELIMINARY PROCEDURAL MATTERS

2 Declaration of Interest Noting -

5:35pm –

6:00pm

3 Minute of Board Meeting

24 May 2017 Approval 5

4 Action Sheet Noting 8

5 Date of Next Meeting

6 September 2017 Approval -

6 Health & Safety

Verbal Update Noting -

7 Scottish Housing Regulator

Mr Peter Freer Presentation -

ITEMS FOR DECISION

8 Annual Report & Financial Statements for Year Ended 31 March 2017

Report by Director of Finance and Corporate Services

Approval 11

6:00pm –

6:40pm

9 SHR Returns 2016/17

Report by Director of Finance and Corporate Services Approval 81

10 Budgetary Performance for Year Ended 31 March 2017

Report by Director of Finance and Corporate Resources

Approval 113

11 Management Report to 31 May 2017

Report by Director of Finance and Corporate Resources Noting 121

12 Rule Change

Report by Chief Executive Approval 144

13 Development Plan 2017/18 – 2021/22

Report by Chief Executive Noting 187

14 Development Programme 2017/18


15 Review of ICT Strategy 2017 – 2020

Report by Director of Finance and Corporate Resources Approval 196

16 Tenant Participation Update

Report by Director of Operations Approval 222

17 Lease of Ground in Plasterfield


No Item Action Page No Time

POLICIES

18 Community Grants Policy

Report by Chief Executive Approval 245 6:40pm

– 6:50pm 19 Policy Review June 2017


ITEMS FOR NOTING

20 Review of Corporate Registers

Report by Chief Executive Noting 291 6:50pm

– 6:55pm

MEETING GOES INTO PRIVATE SESSION

PUBLIC SESSION RESUMES

MONITORING REPORTS

26 Business Plan 2015/16 – 2019/20 Year 3 Monitoring Report

Report by Chief Executive

Noting 293

7:10pm –

7:30pm

27 Investment Programme 2017/18 Monitoring Report

Report by Director of Operations

Noting 312

28 Fuel Poverty Update

Report by Director of Operations Noting 316

29 Housing Allocations Annual Report 2016/17


If there are any issues arising from the Monitoring Reports that a member wishes to make they should contact the Chair by 5.00pm on 27 June 2017 so that the item can be discussed at the meeting.

Agenda Item 1

Board Members Notes 24-May-17 28-Jun-17 06-Sep-17 07-Sep-17 15-Nov-17

Mairi Bremner

Jane MacKinnon

Daniel Coyle

Alasdair Mackenzie

Calum Mackay

Iain Macmillan

Kevin Paterson 1

Gordon Murray 2

Roddy Mackay 3

Norman Macleod 4

Member present at meeting

1 - Elected as Board Member at AGM on 7 September 2016

2 - Elected as Council Member following local elections on 4 May 2017 Member not present at meeting

3 - Elected as Council Member following local elections on 4 May 2017

4 - Appointed as Board Member on 24 May 2017 Cancellation of travel due to weather/

technical problems

Member not required to be present at meeting

Special Leave

Board Meetings 2017/18

Mairi Bremner

Jane MacKinnon

Daniel Coyle

Alasdair Mackenzie

Calum Mackay

Iain Macmillan

Kevin Paterson 1

Gordon Murray 2

Roddy Mackay 3

Norman Macleod 4

Member present at meeting

1 - Elected as Board Member at AGM on 7 September 2016

2 - Elected as Council Member following local elections on 4 May 2017 Member not present at meeting

3 - Elected as Council Member following local elections on 4 May 2017

4 - Appointed as Board Member on 24 May 2017 Cancellation of travel due to weather/

technical problems

Member not required to be present at meeting

Board Training 2017/18

Board Members Notes

HEBRIDEAN HOUSING PARTNERSHIP Board Minutes of Meeting held in HHP Board Room, Creed Court, Wednesday 24 May 2017 @ 5.30pm

ATTENDANCE & APOLOGIES

1 The Vice Chair opened the meeting by acknowledging our shared horror at the terrorist attack in Manchester, with two families in Barra affected. Mr Mackay said “it brings the reality of danger nearer to home, we can’t imagine the pain and torment the families are going through and our thoughts and prayers go out to them.”

Attendance & Apologies

Present Apologies Staff & Consultants In Attendance

Calum Mackay Iain Macmillan Dena Macleod (Chief Executive) Kevin Paterson Alasdair Mackenzie John Maciver (Director of Operations) Mairi Bremner Danny Coyle Donald Macleod (Director of Finance & Corporate Alasdair Mackenzie Roddy Mackay Services) Jane Mackinnon Peter O’Donnell (Investment Manager) Angus MacNeil (Assets & Contracts Manager) Angus Smith (Corporate Resources Manager) Angela Smith (Corporate Governance Manager) Isabel Macmillan (Debt Management Officer) Garry Campbell (Debt Management Officer) Rona Morrison (Customer Service Assistant) James Morrison (Finance Assistant) Iona France (Governance Admin Officer – Minute Taker) Jane Ballantyne (TPAS)

Mr Mackay proposed that following the recent local elections, as Council elected Board Member Mr Norman Macleod did not seek re-election to the Council, Mr Macleod is appointed to the Board as a Board appointed Member due to his extensive knowledge of housing and development.

The Board agreed that Mr Macleod be appointed until the 2017 AGM.

PRELIMINARY PROCEDURAL MATTERS

2

Declaration of Interest

There were no declarations of interest.

3 Minute of Board Meeting 16 March 2017

The minute of the Board meeting of 16 March 2017 was submitted and approved as a true and accurate record of the proceedings of that meeting.

4 Action Sheet

The Action Sheet was approved.

5 Date of Next Meeting

The date of the next meeting will be 28 June 2017.

6 Health & Safety

There was nothing to report.

-

Presentation of Awards to Staff

Angus Macneil, Assets & Contracts Manager and Angela Smith, Corporate Governance Manager, were presented with their Level 5 Award in Leadership and Management.

Agenda Item 3

ITEMS FOR APPROVAL

7

Annual Return on the Charter 2016/17 (ARC)

The Partnership’s Annual Return on the Charter 2016/17 (ARC) and Energy Efficiency Standard for Social Housing (EESSH) was presented 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.

Board Members were asked to submit any queries on the ARC to the Corporate Governance Manager by Friday 26 May 2017.

The Tenant Report will be compiled from ARC data and issued to tenants within the Regulator’s timetable.

The Director of Operations highlighted two areas where there have been significant improvements since 2015/16 specifically EESSH and arrears performance and this is mainly due to the work of officers.

The Board approved:

a) the ARC submission for 2016/17 subject to the reconciliation of any queries raised;

b) the format of the Tenant Report 2016/17; and

c) the Energy Efficiency Standard for Social Housing (EESSH) submission for 2016/17.

8 Rule Change

The Chief Executive outlined proposed changes to the Partnership Rules to ensure the governance arrangements are appropriate for the future requirements of the Business Plan and comply with Regulatory Standards.

The Chief Executive further advised following the Office of National Statistics (ONS) reclassification if there were more than 25% of Board Members who were council appointed HHP could be considered a public body. Changing the make up of the Board from council appointed Members to skill based Independent Members would ensure that HHP retained their status of non-public body.

The report had been discussed in detail at the Audit & Risk Committee earlier in the day and the Committee proposed a change to the recommendations. The timetable at Appendix 1 will also be amended in line with advice received from the Regulator whereby the redrafted Rules will require Board approval at the June 2017 meeting.

The Board approved:

a) The Rules be amended to replace Comhairle appointed Board Members with Independent Board Members;

b) Independent Members should be Members of HHP;

c) the geographical split of tenant Board Members be retained unless there are no nominees for a particular area;

d) the timetable and action plan be amended; and

e) the revised Rules are presented to the June 2017 Board Meeting for approval.

9 Development Programme 2012-18 Monitoring Report 2016/17

The report advised the Board of progress with the Development Programme 2016/17 – 2017/18 and sought approval for the Executive Team, in consultation with the Development Workgroup, to explore and potentially purchase sites in line with the 2017/18 Development Plan.

The Director of Operations provided an update on the progress of the current sites.

Mackenzie Lane

The development has been completed and the properties handed over on 3 May 2017. TIG are currently carrying out a survey to establish the reason for the low interest levels for the LIFT properties in the scheme.

Mackenzie Avenue

Work has started on the scheme and is progressing well.

HHP are currently in discussions with the owners in the first phase of the scheme (Mackenzie Park) to amend the title on the Deed of Conditions.

Tarbert Central

Eight objections have been received to the planning application and the design will need to be modified prior to the planning meeting on 8 June 2017.

Cameron Terrace

Although the land is in HHP’s ownership there is a question of whether it has been resumed from crofting tenure. This has led to a delay in progressing the development of the site.

The Board:

a) Noted the progress on the Development Programme for 2017/18; and

b) Approved the exploration and potential purchase of sites in line with the 2017/18 Development Plan and in consultation with the Development Workgroup.

10

ALASDAIR MACKENZIE LEFT THE MEETING AT THIS POINT.

Gifts & Hospitality Policy

The report sought Board approval for the discontinuation of the Gifts and Hospitality Policy as its requirements are included in the Entitlements, Payments & Benefits Policy.

The Board approved the discontinuation of the Gifts and Hospitality Policy.

11 Fire Safety Policy

The revised Fire Safety Policy was brought to the Board for review and approval. There were no major changes to the Policy.

The Board reviewed and approved the revised Fire Safety Policy.

12 ICT Security Policy

The Information Security Policy was presented to the Board for approval. The Policy relates to the equipment use and data management within the organisation. Following an audit of HHP’s internal security in February 2016 it was recommended that a specific policy bringing together all practices and procedures would be beneficial.

The Board approved the ICT Security Policy.

13 Quarterly Treasury Report to 31 March 2017

The Director of Finance and Corporate Services informed the Board of Treasury Management activities in the fourth quarter of 2016/17. The cash balance at 31 March 2017 increased by £0.493m to £7.416 due to Right to Buy receipts and phasing of developments. The Treasury Management Policy requires that if the cash balance exceeds £2.5m the funds should be spread over no fewer than three interest bearing accounts. The Board approved at the meeting on 16 June 2016 that the limit for deposit of cash surpluses held by any one institution to £1.5m for 2016/17 and approval was sought to extend this increase to 2017/18.

Kevin Paterson asked if there was any value in increasing the limit on a permanent basis and the Director of Finance & Corporate Services advised that this would be considered when the Financial Regulations were reviewed.

The Board:

a) noted the quarterly report on the Analysis of Investment and Borrowing;

b) noted the outstanding loans at 31 March 2017 of £5.088m;

c) noted the cash balance at 31 March 2017 of £7.416m; and

d) approved increasing the limit for deposit of cash surpluses held by one institution to £1.5m for 2017/18.

ITEMS FOR NOTING

14 Management Report to 31 March 2017

The Management Report to 31 March 2017 was presented to the Board for review and noting. The Director of Finance & Corporate Services advised that the full Annual Report 2016/17 would be brought to the Board at the June 2017 meeting.

The Board noted the management information at 31 March 2017.

15 Business Plan 2015/16 – 2019/20 Year 3 Monitoring Report

The Business Plan Monitoring Report was presented to the Board to monitor progress on the Business Plan Action Plan agreed in March 2017.

The Board noted the progress in the Business Plan Objectives Monitoring report.

16 Asset Management Strategy 2016 – 2020

The report provided an update on the Asset Management Strategy Action Plan.

The Board noted progress on the Asset Management Strategy Action Plan.

MEETING WENT INTO PRIVATE SESSION

Chairperson Mr Iain MacMillan

SIGNED ………………………………………………………

DATE ………………………………………………………

Action

Point

MINUTE

NUMBER ACTION TO BE TAKEN ACTION BY PROGRESS

1 24 May 17

(1)

Contact Mr Macleod to advise of his nomination to Board. Corporate Governance Manager

Mr Macleod contacted and accepted nomination.

2 24 May 17

(7)

Submit ARC & EESSH to Regulator.

Tenant Report to be issued to tenants.

Corporate Governance Manager

Submitted 26 May 2017.

3 24 May 17

(8)

Progress Rule Change with Harper Macleod.

Amend timetable and Action Plan.

Chief Executive Harper Macleod instructed to prepare draft rules. Item on the agenda.

Timetable amended.

4 24 May 17

(9)

Progress legal work to amend Deed of Conditions.

Convene meeting of Development Work Group to explore potential development sites.

Chief Executive/Director

of Operations

Completed

5 24 May 2017

(10)

Discontinue Gifts & Hospitality Policy Corporate Governance Manager

Completed

6 24 May 2017

(13)

Consider increasing cash limits on a permanent basis when reviewing the Financial Regulations.

Director of Finance & Corporate Services

To be reviewed as part of the next update to the Financial Regulations.

7 16 Mar 17

(9)

Feasibility studies to be carried out in Tarbert, Lochmaddy & Balivanich.

Director of Operations

Document being progressed for feasibility work.

8 16 Mar 17

(11)

Re-tender process to be carried out for Funders Valuation

Stock Condition Survey to be carried out in 2017.



Re-tender process will be initiated in the second half of 2017.

Brief being finalised for issue in June 2017.

9 16 Mar 17

(14)

Add garage roof at Creagan to Roofing Programme.

Install infra-red heating in up to 3 larger properties.


Virement requested. Purchase order to follow.

2 properties identified.

Board Action Sheet

Agenda Item 4

Action

Point

MINUTE


10 16 Mar 17

(15)

Submit plans for Tarbert Central to planning once design is completed.

Provide further details to Board Members on Goathill Farm development when available.


Planning application submitted.

Design team appointed for Goathill Farm Masterplanning and due to report in September 2017.

11 1 Feb 17

(7)

Finance Working Group to look at anomalies in rents and rent structure. Director of Finance & Corporate Services

Rent structure review to be undertaken late in 2017.

12 1 Feb 17

(11)

Progress Level 2 accreditation with Quality Scotland. Corporate Governance Manager

Committed to Excellence + EQUIP purchased on 31 March 2017. Draft Action Plan has been prepared and Quality Scotland will visit Stornoway on 19 July 2017 to conduct group self-assessment.

13 1 Feb 17

(18)

Convene a meeting of the Housing Management Working Group to progress the implications of the Housing (Scotland) 2014 Act.


Date being arranged.

14 1 Feb 17

(20)

Convene meeting of Investment Working Group to discuss fuel poverty and energy efficiency measures.


Date being arranged.

15 16 Nov 16

(9)

Tenders to be sought for ICT for 5 years.

ICT Strategy to be presented to Board in February 2017.

Corporate Resources Manager

Castle contract extended to September 2018.

ICT Strategy in development and is on June 2017 agenda.

16 16 Nov 16

(14)

Arrange the demolishment of 20 Winfield Close. Director of Operations

Delayed. Awaiting disconnection of electricity supply by Npower.

Complaint lodged with supplier over delay.

17 16 Nov 16

(24)

A further Gas Audit to be carried out in 2017. Investment Manager Planned for 30 June – 1 July.

18 6 Sep 16

(12)

Add HHP/CNES liaison meetings to calendar once they are confirmed. Corporate Governance Manager

Await confirmation of suitable dates from CNES.

19 6 Sep 16

(18)

Fuel Poverty Survey to be carried out as part of the 2017 Stock Condition Survey.


Included in brief for survey.

20 22 June 16

(7)

Arrange refresher training on accounting process for Board members at next Business Planning Day.


Looking at options and costs for three different areas including finance/accounting process. Discussion to be had with Board re fixing a date after the June 2017 meeting as full Board now in place following Council elections.

Action

Point

MINUTE


21 16 Mar 16

(21)

Performance Monitoring of Repairs & Maintenance Budget to be reported regularly to the Board.


Report went to the June Board meeting and a further report to November 2016 meeting. Further report planned for September 2017. Budget update in Management Accounts.

Donald Macleod Page 1 of 4 16/6/17

Agenda Item: A&R - 7 Board - 8

AUDIT & RISK 27 June 2017

BOARD 28 June 2017

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017

Report by Director of Finance & Corporate Services

PURPOSE OF REPORT

1.1 To present the Annual Report and Financial Statements for the year ended 31 March 2017 to the Board and Audit & Risk Committee for approval.

SUMMARY

2.1 The Annual Report and Financial Statements for the year ended 31 March 2017 have been prepared and are at Appendix 1. A summary of the Financial Statements 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 5.6.

RECOMMENDATIONS

4.1 It is recommended that the:

a) Audit & Risk Committee review the Annual Report for the year ended 31 March 2017 as at Appendix 1 and recommend approval to the Board;

b) Board approve the Annual Report and Financial Statements for the year ended 31 March 2017 as at Appendix 1;

c) Board approve the summary of the Financial Statements as at Appendix 2 for inclusion in the Tenants Newsletter; and

d) Subsidiary Accounts for the year ended 31 March 2017 be noted.

APPENDIX 1 Annual Report and Financial Statements for the year ended 31 March 2017

(DRAFT)

APPENDIX 2 Summary of Financial Statements 2015/16 (To Follow)

APPENDIX 3 HHP Community Housing Accounts (To Follow)

Background Papers

Writer of Report Donald Macleod Tel: 0300 123 0773


COMPETENCE

Financial 5.1 The Annual Report and Financial Statements report on how the resources for the year

ended 31 March 2017 have been utilised. The cost of auditing and producing copies of the Annual Report and Financial Statements has been provided for in the Annual Report and Financial Statements.

Legal 5.2 The following Partnership Rules are applicable:

a) Rule 4 - As a landlord and managing agent we will: Rule 4.1 - have regard for the requirements of public accountability. Rule 4.2 - use any money we receive carefully and properly.

b) Rule 72 – 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 auditors must follow the conditions set out in Section 9 of the Friendly and Industrial and Provident Societies Act 1968 and paragraphs 13 (2) and 13 (3) of Schedule 7 Part 3 of the

Housing (Scotland) Act 2001.

c) Rule 73 - 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.

5.3 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.

5.4 The Facility Agreement with our Funders 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.

5.5 The following Financial Regulations are applicable:

a) 5.10.1 – 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.

RISK

6.1 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

7.1 A set of accounts for the year ended 31 March 2017 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.

7.2 Confirmation from Wylie & Bisset that HHP has met the Financial Covenant for 2016/17 as required by our Funder is also expected at the meeting.

7.3 A detailed presentation will be given at the Board meeting on the Accounts and the performance for the year.

7.4 The key financial factors to highlight in the Annual Accounts are that:

a) Operating surplus of £3,196,692 shows an increase from the previous year of £110,870. The key changes are detailed below:

Area £000’s Reason

Rental Income 120 Increase driven by annual rent increase and increased number of properties delivering a full year of rental income.

Depreciation (176) Increase driven by new build properties capitalised in the year.

Repairs 248 Reduction on repairs as a result of large painterworks undertaken in 2015/16.

Reduction in Grants (67) Reduction in deficit fund grant & Increase in Grant Amortization.

Voids (26) Increased Voids driven by low demand properties.

b) Reserves are allocated as shown below:

c) Increase of £1,131,331 in net assets reflecting the investment in transfer properties and the continued development work;

Reserves Allocation

General Repairs 31-Mar

Reserve Asbestos & Renewals Total

£ £ £ £

Balance at 1 April 2016 18,418,490 1,140,261 1,817,649 21,376,400

Surplus 2016/17 1,131,330 1,131,330

Transferred to Reserve (540,000) 140,000 400,000 -

Balance at 31 March 2017 19,009,820 1,280,261 2,217,649 22,507,730


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 loss of £1,502,000 for 2016/17 which has arisen due to a change in the actuarial financial measurement assumptions.

7.5 A separate report is being presented to the Board and detailing performance for the year against the approved budget.

Annual Report &

Financial Statements

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

FOR THE YEAR ENDED 31 MARCH 2017

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APPENDIX 1

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Annual Report & Financial Statements 1

CONTENTS

BOARD OF MANAGEMENT, DIRECTOR AND ADVISERS .......................................................................................... 2

REPORT OF BOARD OF MANAGEMENT .................................................................................................................. 5

BOARD STATEMENT ON INTERNAL FINANCIAL CONTROL .................................................................................... 14

STATEMENT OF BOARD RESPONSIBILITIES ........................................................................................................... 14

OPERATING AND FINANCIAL REVIEW ................................................................................................................... 17

INDEPENDENT AUDITOR’S REPORT ...................................................................................................................... 22

REPORT BY THE AUDITORS TO THE MEMBERS OF HEBRIDEAN HOUSING PARTNERSHIP LIMITED ON

CORPORATE GOVERNANCE MATTERS .................................................................................................................. 22

STATEMENT OF COMPREHENSIVE INCOME ......................................................................................................... 26

STATEMENT OF CHANGES IN RESERVES ............................................................................................................... 27

STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2017 ............................................................................. 28

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2017................................................................ 29

NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2017 ....................................... 30

NOTES TO THE FINANCIAL STATEMENTS .............................................................................................................. 31


BOARD OF MANAGEMENT, DIRECTOR AND ADVISERS

Name Category Changes during the year

Appointed Resigned

George Lonie Community 3 Sept 2015 (re-appointed) 6 May 2016

Ian Macmillan Community 7 Sept 2016 (re-appointed)

Daniel Coyle Tenant 7 Sept 2016 (re-appointed)

Alasdair Mackenzie Tenant 7 Sept 2016 (re-appointed)

Calum Mackay Community 7 Sept 2016 (re-appointed)

Jane Mackinnon Community 3 Sept 2015 (re-appointed)

Mairi Bremner Community 7 Sept 2016 (re-appointed)

Kevin P Paterson Tenant 7 Sept 2016 (appointed)

David Blaney Councillor 11 May 2012 3 May 2017

Donald J Macrae Councillor 11 May 2012 3 May 2017

Norman Macleod Councillor

Community

11 May 2012

24 May 2017 (appointed)

3 May 2017

Gordon Murray Councillor 4 May 2017 3 May 2017

Roddy Mackay Councillor 4 May 2017 (appointed)

John Graham Mitchell Councillor 4 May 2017 (appointed)


Secretary and Registered Office Funders Dena Macleod BA CA Creed Court Gleann Seileach Business Park STORNOWAY Isle of Lewis HS1 2QP

Royal Bank Of Scotland plc

RBS Global Banking & Markets Kirkstane House, 139 St Vincent Street, Glasgow, G2 5JF

External Auditors Solicitors

Wylie & Bisset LLP

168 Bath Street

GLASGOW

G2 4TP

Harper Macleod

The Ca’d’oro

45 Gordon Street

GLASGOW

G1 3PE

HBJ Gateley Wareing

19 Canning Street

EDINBURGH

EH3 8EH

Bankers Directors

Royal Bank of Scotland plc

17 North Beach Street

STORNOWAY

Isle of Lewis

HS1 2XH

Chief Executive : Dena Macleod BA CA

Director of Operations: John Maciver BSc MPHIL, FCIH

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

http://www.hebrideanhousing.co.uk/


REPORT OF BOARD OF MANAGEMENT


REPORT OF BOARD OF MANAGEMENT

The Board of Management presents its report for the year ended 31 March 2017.

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 need 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 began its operations in September 2006 with 1,800 houses and since then has acquired an additional 300

houses from 5 locally based RSL’s, 10 houses under the Government’s Rent of the Shelf scheme and has built

more than 350 new affordable houses. 267 houses have been disposed of since September 2006 leaving a

stock at 31 March 2017 of 2,193.

CORE VALUES

HHP’s core value is:

The core value is underpinned by five supporting values:

•We honour commitments made to our tenants and build trust.

•Our decision making processes are open and transparent.

Integrity

•We focus on postive outcomes for our customers. Their views will inform the provision and development of services.

Customer Focus

•We will strive to ensure that there is no discrimination evident in the way we deliver services. All customers will be treated with respect. We shall treat people the way we like to be treated.

Equal Opportunities

•We shall seek to ‘do it right’ at the first time of asking Quality of Service-

Excellence

•We aim to promote sustainable communities where people want to live now and in the future. Sustainability

•We Provide a challenging, supportive and rewarding work environment. Supporting Staff


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 2017 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 2016/17.

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

HHP continued to invest in tenants homes with over £4 million spent in 2016/17 on improvements to homes

including new bathrooms and kitchens. There was a particular focus on works to alleviate fuel poverty. Over

100 new heating systems were installed and the window replacement reached a major milestone with all

homes now having double glazing.


New Build Programme

Environmental Improvements

Repairs & Maintenance

Housing Management

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Scottish Housing Quality Standard (SHQS)

HHP has met the Scottish Housing Quality Standard. There were however a number of exemptions and

abeyances granted, mainly on the grounds of energy efficiency, due to the challenges posed by being in an

‘off-gas’ area. Plans are now in place through the 4 year Investment Programme to deliver the new Energy

Efficiency Standard for Social Housing (EEESH). SHQS exemptions and abeyances are being addressed over the

same time period.

Repairs and Maintenance

The Board took a decision to extend the current Repairs and Maintenance contract with FES for a further 2

years until 2018. This reflects the positive partnership working between HHP and FES and the mutual goal of

maximising the benefit to tenants. A review is now being undertaken to look at the best model for taking

forward the repairs and maintenance service including the option of taking the service in house.

New Build Programme

HHP has completed more than 370 new houses (325 for Rent and 47 LIFT) since Transfer Day in 2006 which is

ahead of the 275 ten year target. At April 2017 there were 74 houses on site at the MacKenzie Farm

development, 24 of the properties were completed in May 2017 with the remainder due for completion by

September 2019.

Future New Build Projects

4 sites are being progressed at present. 2 in Tarbert, 1 in Leurbost and 1 in Barra. Feasibility works are to be

carried out on a number of other sites. In addition we are working with the Comhairle and other partners to

Masterplan the HHP site at Goathill Farm.

MACKENZIE LANE, STORNOWAY


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.

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. Additional resources such as making the housing

officer roles permanent have been made to mitigate the impact of the highest scoring risk - the roll out of

Universal Credit. This has helped in driving a reduction in our arrears balance compared to prior year.

Any risk which materially jeopardises the Partnership’s ability to achieve its Strategic 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 3.

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.

0

50

100

150

200

250

300

350

400

450

2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

New Build Units

Business Plan Target Actual


Figure 1 Board of Management

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.

The Board comprises up to 12 members - 4 tenant members, 4 Comhairle Nan Eilean Siar nominees, 4

community representatives and up to 3 co-optees. As at the 31st

March there were 11 Board members.

HHP’s Rules require that two community and two tenant members step down each year. The current rules are

under review and proposals to amend the rules were presented to the board in May 2017. There will be

elections for the vacant positions at the Annual General Meeting in September 2017.

Tenant and Community members of the Board hold one fully paid £1 share.

During 2016/17 one share was issued to a new member.

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

Achieving the highest standards of governance

Board of Management

Audit & Risk Committee

Spokesperson

Development

Tenants

Repairs & Investments

Finance

Working Groups

Housing Mgt

Investment

Development

Finance

Community Liaison Groups

Lewis

Harris

Uist

Barra


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

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.

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 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 AND 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 Marie Curie Western Isles

£1,000 Befriending Lewis

£1,000 Action for Children

£1,000 Bethesda

£1,000 Garadh a Bagh a Tuath


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 2017.

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;

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. During 2016/17 two

HHP managers completed Level 5 Leadership and Management ILM. A training programme for staff for

2017/18 is being compiled from training needs highlighted during the staff performance appraisal system.


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.

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

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 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 most significant risks identified during 2016/17 were the wider economic uncertainty in the Outer

Hebrides (Including population decline), impact of weather events on insurance and rent affordability issues

for tenants.

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.

CORPORATE RISK

The Risk Register has been updated for 2016/17. The Risk Register 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. HHP’s Executive Team continually

develop the management information produced to provide managers with reliable and up to date information

which enables them to respond quickly to service delivery issues as they arise whilst continuing to achieve the

strategic objectives and goals of the organisation.

INTERNAL AUDIT

On 1 April 2015 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 2016/17 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.


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;

• the safeguarding of assets against unauthorised use or disposition.

STATEMENT OF BOARD RESPONSIBILITIES

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;

formal procedures have been established for instituting appropriate action to correct any weaknesses identified through internal or external audit reports.

The Board has reviewed the effectiveness of the system of internal financial control in existence in the

Partnership for the year end 31 March 2017. 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 DISCLOSURES TO AUDITORS

In so far as the Board of Management are 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

Iain Macmillan

Chair


OPERATING AND FINANCIAL REVIEW


OPERATING AND FINANCIAL REVIEW

PERFORMANCE IN THE YEAR

A summary of the key performance areas for the year are detailed in the following paragraphs.

HOUSING SERVICES

The strong performance on reducing arrears was sustained with an improvement for the 7th year in a row.

This was achieved despite the ongoing challenges being presented by Welfare Reform. Universal Credit was

rolled out in the Outer Hebrides in May 2015 and although the number of cases has been small this is

increasing and the full roll out is due in May 2018.

Additional Housing Officers were put in place in our Stornoway and Balivanich offices to meet the challenges

being presented by Universal Credit as the roll out continues and these posts were made permanent this year.

The ‘bedroom tax’ continued to be mitigated in full through Discretionary Housing Payments (DHP) and we

acknowledge the continued support of the Comhairle with this.

Weakening demand for housing across the most rural areas of our islands is a continuing concern and one

which the Board is monitoring closely. We will continue to explore options to address this and will work with

the Comhairle to assess the implications of this trend for the Local Housing Strategy.

Void rent loss increased significantly to over 1% as a result of weak demand. Properties were let in an average

of 17 days (excluding low demand properties). This continues the strong performance of previous years but

has dropped slightly.

The level of anti social behaviour continued to be low and we did not take any legal enforcement action during

the year. This also reflects the strong partnership working between HHP, Police Scotland and the Comhairle

which focusses on a proactive and preventative approach.

Partnership working continues to be 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

The Tenant Participation Advisory Service (TPAS) was re-appointed in May 2017 to continue to provide tenant

participation support and development services to HHP. Activity has focussed on developing links with

interested tenants across the islands and supporting existing tenant groups and encouraging new ones. A new

Umbrella group, the Western Isles Housing Association Communities Forum, has been formed and this is

working to establish itself as a focus for participation across the islands. Providing a variety of means of

participation is important particularly since the housing stock is spread over a large geographic area such as

the Outer Hebrides. We have a high number of small schemes consisting of 6 – 20 houses in most cases which

makes participation challenging. Annual events were again held in Stornoway, Balivanich, Tarbert and

Castlebay during the year and these were viewed very positively by those attending. They were also heavily

supported by partners for which we are grateful.


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.

Cyclical maintenance programmes were completed during the year including ensuring that all gas systems

were serviced within a 12 month period. Servicing of fire alarms, stair lighting, door entry systems and other

heating systems was also carried out.

INVESTMENT PROGRAMME

This was the second year of our new 4 year framework contract and £4m was invested in tenant’s homes

delivering the following improvements during 2016/17:

Heating Systems 133 Kitchens: 106

Bathrooms: 57 Windows: 55

Roughcasting: 27 Roofing: 18

Addressing fuel poverty continues to be a key priority and this is demonstrated by the investment in new

heating systems. In particular we installed 43 Air Source Heat Pumps in off-gas areas which deliver a good

affordable solution for our tenants. However, we also continue to examine other heating options and installed

a further 25 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. 65 highly

efficient combination gas boilers were installed in the Stornoway area.

SCOTTISH HOUSING QUALITY STANDARD

While the housing stock met the Scottish Housing Quality Standard (SHQS) by the target date of March 2015

there was a significant number of properties covered by exemptions and abeyances. Work continues to

address these as the opportunity arises and 335 were resolved during the year.

AIDS AND ADAPTATIONS

We bid successfully for funding from the Scottish Government and a grant of £254k enabled us to deliver 229

different measures benefiting 128 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 as low as

possible for those requiring assistance.

FUEL POVERTY AND EESSH

Fuel poverty continues to be a major issue in the Outer Hebrides. The Scottish Government has set energy

targets under the EESSH scheme and currently, 75% of HHP homes meet this target. HHP will continue to work

towards 100% compliance by the 2020 deadline.


On the wider scale we continued to support the Comhairle as they established an Energy Supply Company

(ESCO). A company called Hebrides Energy has been established and positive progress has been made on this

but unfortunately the preferred partner ceased trading in December 2016, shortly before the full launch was

due. Discussions are now underway with other potential partners and there is significant interest from

suppliers.

Work continues with other Highland Housing Associations and Councils to lobby on and to highlight the impact

of fuel poverty in the Highlands and Islands. For Example there has been significant input into the Scottish

Government Rural Fuel Poverty Task Force and the Competition and Markets Authority (CMA) report on the

energy market reflected the concerns raised by HHP and other partners.


FINANCIAL REVIEW

COMPREHENSIVE INCOME

The turnover for the year to 31 March 2017 was £9.989 million (2016: £12.710m) against operating costs of

£6.792 million (2016: £9.624m). Operating costs for the year included £0.332 million (2016: £0.334m) of

capital investment written off against expenditure. The main source of income was from rental income of

£8.400 million (2016: £8.226m) with £0.886 million (2016: £0.573m) received in grant from The Scottish

Government. None (2016: £0.150m) of the grant received was to support our Business Plan activities. Turnover

on other activities included factoring reflecting the requirements of the Property Factors Act 2011. There were

no LIFT properties sold during the year (2016: 23 LIFT).

The operating surplus on Letting Activities was £3.228 million, 38% of Net Rental Income (2016: £3.106 million,

37% of Net Rental Income).

Funds are being transferred into designated reserves for:

a) Future Repairs and Renewals on new build properties;

b) Funding costs for removing asbestos from transferred properties which may be incurred as a result of

the investment programme;

c) Pension reserve.

FINANCIAL POSITION

HHP’s Financial Position is shown on Page 28. The key factors affecting the balance sheet are:

a) The addition of 22 new units for rent funded largely from Housing Association Grant from the Scottish

Government;

b) The development contract entered into with Comhairle Nan Eilean Siar for investment in the properties

transferred to HHP has now been fully utilised.

c) Stock increased to reflect the Work in Progress on the Mackenzie Lane LIFT scheme;

d) Significant increase in creditors (Both greater than and less than one year) due to the increased Right To

Buy (RTB) receipts as the RTB scheme comes to a close.

CASH FLOW

The Cash Flow is shown on page 29. The net change in cash equivalents was £1.706 million (2016: £2.295m).

The principal cash outflows were operating costs and investment in assets with cash inflow bolstered by RTB

receipts and RHI Income.

CURRENT LIQUIDITY

At 31 March 2017 HHP had cash and short-term deposits of £7.231 million (2016: £5.524m). This was £4.068

million more than forecast in the Annual Financial Strategy for 2016/17 due to opening balances at 1 April

2016 being £1.3 million higher than forecast and incremental RTB receipts in the year of £1.4m. It is not

anticipated that there will be a requirement to draw down funds during 2017/18.


CAPITAL STRUCTURE AND 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 30 year loan facility arranged with the Royal Bank of Scotland (RBS), deficit

funding and loan facilities 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 2024 reflecting the significant investment 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 Business Plan assumes capital grants for new build and loans of just under £20 million. The loans are

repayable by year 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 £20.1 million over the next 5 years ensuring the Scottish Housing Quality Standard is

maintained in all its properties. £9.895 million of private finance has been earmarked for the 15 new build

projects due for completion in the next 5 years. HHP funding with RBS, together with funding from Scottish

Government and Comhairle Nan Eilean Siar will enable the planned number of units for development to be

delivered.


INDEPENDENT AUDITOR’S REPORT

We have audited the financial statements of Hebridean Housing Partnership for the year ended 31 March 2017

which comprise the Income and Expenditure account, the Balance Sheet, the Cash Flow Statement and related

notes. The financial reporting framework that has been applied in their preparation is applicable law and

United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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 auditors' 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.

Respective responsibilities of the Board of Management and Auditors

As explained more fully in the Board’s Responsibilities Statement set out on page 16, the Board of

Management are responsible for the preparation of the Financial Statements that give a true and fair view.

Our responsibility is to audit and express an opinion the financial statements in accordance with applicable law

and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the

Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient

to give reasonable assurance that the financial statements are free from material misstatement, whether

caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to

the Partnership's circumstances and have been consistently applied and adequately disclosed; the

reasonableness of significant accounting estimates made by the Board of Management; and the overall

presentation of the financial statements. In addition, we read all the financial and non financial information in

the Board of Management’s report to identify any information that is apparently materially incorrect based on,

or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we

become aware of any apparent material misstatements or inconsistencies we consider the implications of our

report.

Opinion on financial statements

In our opinion the financial statements:

- give a true and fair view of the state of the Partnership’s affairs as at 31 March 2017 and of its income

and expenditure for the year then ended;

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting

Practice including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of

Ireland” and the Statement of Recommended Practice for Social Housing Providers issued in 2014;

and


- have been properly prepared in accordance with the Co-operative and Communities Benefit Societies

Act 2014, the Housing (Scotland) Act 2010, the Determination of Accounting Requirements 2014

issued by the Scottish Housing Regulator.

Matters on which we are required to report by exception

In light of the knowledge and understanding of the Partnership and its environment obtained in the course of

the audit, we have not identified any material misstatements in the Report of the Board of Management.

We are required to report to you under The Co-operative and Community Benefit Societies Act 2014 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.

Wylie & Bisset LLP

Chartered Accountants

Statutory Auditors

Glasgow

Date: 28 June 2017


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 15 concerning

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 15 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: 28 June 2017


FINANCIAL STATEMENTS


STATEMENT OF COMPREHENSIVE INCOME


The results for the year relate wholly to continuing activities.

These financial statements were approved by the Board on 28th

June 2017 and were signed on its behalf by:

Iain Macmillan Dena Macleod Calum Mackay

Chair Secretary Board Member

The notes on pages 30 to 54 form part of these financial statements

31 March 2017 31 March 2016

£ £

Notes

Turnover 3 9,989,189 12,710,418

Operating expenditure 3 (6,792,497) (9,624,596)

Operating surplus 3 3,196,692 3,085,822

Loss on disposal of property, plant & equipment (218,318) (123,606)

Interest receivable 6 9,568 11,567

Interest payable and financing costs 7 (354,611) (336,222)

Surplus before tax 2,633,330 2,637,561

Actuarial (loss)/gain in respect of pension scheme 22 (1,502,000) 982,000

Total comprehensive income for the year 1,131,330 3,619,561


STATEMENT OF CHANGES IN RESERVES



Unrestricted

Fund

Current Year £

Balance at 1 April 2016 24,995,961

Surplus from statement of comprehensive income 1,131,330

Balance at 31 March 2017 26,127,291

Unrestricted

Fund

Prior Year £

Balance at 1 April 2015 21,376,400

Surplus from statement of comprehensive income 3,619,561

Balance at 31 March 2016 24,995,961


STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2017

These financial statements were approved by the Board on 28th

June 2017 and were signed on its behalf by:

Iain Macmillan Dena Macleod Calum Mackay

Chair Secretary Board Member


31 March 2017 31 March 2016

£ £

Notes

Fixed Assets

Tangible Assets-Social Housing 8 73,557,295 70,087,014

Tangible Assets-Property, plant & equipment 9 1,528,478 1,659,854

Investments 10 2 2

75,085,775 71,746,870

Current Assets

Stock 388,884 37,451

Trade and other debtors 11 1,422,744 3,883,992

Investments 4,506,628 3,564,265

Cash and cash equivalents 2,724,142 1,959,905

9,042,398 9,445,613

Less: Creditors amounts falling due within one year 12 (2,491,833) (1,101,194)

Net current assets 6,550,565 8,344,419

Total assets less current liabilities 81,636,340 80,091,289

Creditors: amounts falling due after more than one

year 13 (10,583,000) (9,840,869)

Deferred Capital Grants 14 (41,687,852) (41,162,344)

Pension Liability 15 (3,238,000) (1,567,000)

Provisions for liabilities 15 - (2,524,919)

Net Assets 26,127,488 24,996,157

Reserves

Share Capital 16 197 196

Income & Expenditure reserve 26,127,291 24,995,961

26,127,488 24,996,157


STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2017


31 March 2017 31 March 2016

£ £

Note

Net Cash inflow from operating activities 1 6,226,004 6,517,542

Cashflow from investing activities

Purchase of tangible assets (6,810,162) (5,714,504)

Proceeds from sale of tangible fixed assets 733,129 481,934

Grants received 1,822,064 1,291,585

Interest received 9,568 11,567

Acquistion of Shares (1)

Cashflow from financing activities

Interest paid (258,407) (234,612)

Repayments of borrowings (15,595) (58,233)

Net change in cash equivalents 1,706,600 2,295,278

Cash and cash equivalents at the beginning of the year 5,524,170 3,228,892

Cash and cash equivalents at the end of the year 7,230,770 5,524,170

1,706,600 2,295,278


NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2017

1 CASH FLOW FROM OPERATING ACTIVITIES

Cashflow from Operating Activities

2017 2016

£ £

Surplus for the year 3,196,692 3,085,822

Adjustments for non-cash items:

Depreciation of tangible fixed assets 2,521,583 2,345,470

Amortisation of Capital Reserve - -

Decrease/(increase) in stock (351,433) 762,557

Decrease/(increase) in trade and other debtors (63,669) (248,128)

Increase/(decrease) in trade and other creditors 3,179,175 2,163,404

Receipt of donated land -

Pension costs less contributions payable 112,000 150,000

Carrying amount of tangible fixed asset disposed (949,674) (605,540)

Adjustments for investing or financing activities:

Proceeds from the sale of tangible fixed assets (218,318) (123,606)

Government grants utlised in the year (1,296,556) (1,103,233)

Interest payable 96,205 90,796

6,226,004 6,517,542


NOTES TO THE FINANCIAL STATEMENTS


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.

BASIS 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.

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.


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 provides for contractual liabilities that exist at the balance sheet date.

TAXATION

Income and capital gains are generally exempt from tax if applied 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 and 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


Years

Other External Components 15

Structure 60

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.

DEVELOPMENT AGREEMENT

The Partnership has entered into agreements with Comhairle Nan Eilean Siar whereby the undertaking of

catch up repairs and improvement works remains with the Comhairle, with the obligation sub-contracted to

HHP. This has been shown on the Partnership’s Balance Sheet as a debtor offset by a provision of an equal

amount. As work progresses, both sums will be adjusted downwards by the appropriate amount.

BAD AND 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.

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.


NOTE 3 TURNOVER, OPERATING COSTS AND OPERATING SURPLUS

2017 2016

Operating Operating Operating Operating Operating Operating

Turnover Costs Surplus Turnover Costs Surplus

£ £ £ £ £ £

Income and Expenditure from Lettings

Social Lettings (Note 4) 9,964,555 (6,736,206) 3,228,349 9,938,871 (6,832,963) 3,105,908

Other Activities (Note 5) 24,633 (56,291) (31,658) 2,771,547 (2,791,633) (20,086)

TOTAL 9,989,189 (6,792,497) 3,196,692 12,710,418 (9,624,596) 3,085,822


NOTE 4 PARTICULARS OF TURNOVER, OPERATING COSTS AND OPERATING SURPLUS FROM SOCIAL LETTING ACTIVITIE

General Needs Supported Shared

Housing Accommodation Ownership Other Total 2016

£ £ £ £ £ £

Income from rent and service charges

Rent receivable net of service charges 8,292,729 49,604 3,397 - 8,345,730 8,225,892

Service charges 48,126 3,908 2,376 - 54,410 56,107

Gross Income from rents and service charges 8,340,854 53,512 5,773 - 8,400,139 8,281,999

Less voids (91,570) - - - (91,570) (65,887)

Net Income from rents and service charges 8,249,285 53,512 5,773 - 8,308,570 8,216,112

Grants from Scottish Ministers - - - - - 150,000

Release of deferred capital grant 1,209,599 1,209,599 1,149,173

Other Revenue Grants 446,387 - - - 446,387 423,586

Total Turnover from social letting activities 9,905,270 53,512 5,773 - 9,964,555 9,938,871

Expenditure

Management and Maintenance Administration costs 1,797,564 13,230 2,481 - 1,813,275 1,797,121

Service charges - - -

Planned and Cyclical Maintenance including major repairs 987,724 262 - - 987,986 1,156,533

Reactive Maintenance 1,383,458 4,735 106 - 1,388,299 1,467,858

Bad Debts-rents and service charges 25,063 - - - 25,063 65,981

Depreciation of social housing 2,519,457 - 2,126 - 2,521,583 2,345,470

Impairment of social housing

Operating costs for social letting activities 6,713,267 18,227 4,713 - 6,736,206 6,832,963

Operating surplus on letting activities for 31 March 2017 3,192,004 35,285 1,060 - 3,228,349 3,105,908

Operating surplus on letting activities for 31 March 2016 3,065,596 40,001 311 - 3,105,908


NOTE 5 PARTICULAR OF TURNOVER, OPERATING COSTS AND OPERATING SURPLUS FROM OTHER ACTIVITES

Grants from Other Revenue Other

Scottish Ministers Grants Income

2017 2016 2017 2016 2017 2016

£ £ £ £ £ £ £ £ £

Stage 3 Adaptations - - - - - - - - -

Factoring - - 3,089 3,089 5,059 3,096 11,654 (7) (6,595)

Development & construction of

Property Activities- - 14,897 14,897 32,131 44,496 43,770 (29,599) (11,639)

Sale of Developments - - - - 2,718,646 - 2,718,646 - -

Management Services - - 6,648 6,648 15,711 8,699 17,563 (2,051) (1,852)

Amortization capital reserve - - - - - - - - -

Total from other activites

2017 - - 24,633 24,633 56,291 (31,658)

Total for other activities 2016 - - 2,771,547 2,771,547 2,791,633 (20,086)

Total

Turnover

Other

Operating Costs

Operating

Surplus/ Deficit


NOTE 6 INTEREST RECEIVABLE AND OTHER INCOME

NOTE 7 INTEREST PAYABLE AND SIMILAR CHARGES

Other financing costs include commitment, non-utilisation fees, the amortisation of transaction costs on the

funding arrangements.

Interest Receivable and Other Income

2017 2016

£ £

Interest receivable on deposits 9,330 11,333

Interest receivable on loan to subsidiary 237 234

9,568 11,567

Interest Payable and Similar Charges

2017 2016

£ £

Interest Payable 213,051 219,980

Other Financing costs 84,560 39,242

Net Cost on pension 57,000 77,000

354,611 336,222


NOTE 8 TANGIBLE FIXED ASSETS-SOCIAL HOUSING

Development administration costs capitalised amounted to £58,077 (2016:£53,535) for which Social Housing

Grants amounting to £nil (2016:£nil) were received in the year.

The proceeds of property disposals in the year was £733,130 (2016: £481,934). These units cost £1,343,350

(2016: £808,156) and had a net book value of £951,447 (2016:£605,540). HAG of £134,537 (2016: £178,240) is

due to be repaid in respect of these disposals.

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 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

Prior Year

At start of the year 78,203,666 2,354,441 127,643 80,685,750

Additions during the year 2,686,441 3,014,992 - 5,701,433

Transfers in year 3,078,550 (3,194,520) - (115,970)

Disposals (798,510) (9,646) - (808,156)

At end of year 83,170,147 2,165,267 127,643 85,463,057

Depreciation

At start of year (13,219,001) - (68,076) (13,287,077)

Provided in year (2,289,450) - (2,132) (2,291,582)

Eliminated on Disposal 202,616 - - 202,616

At end of year (15,305,835) - (70,208) (15,376,043)

Net Book Value

At end of year 67,864,312 2,165,267 57,435 70,087,014


The cost of new components capitalised in the year was £3,900,126 (2016: £2,686,441)

Components with a cost of £264,957 (2016: £47,791), HAG of £211,367 (2016: £42,318) and accumulated

depreciation of £133,673 (2016: £31,624) were disposed of in the year.

NOTE 9 TANGIBLE FIXED ASSETS-PROPERTY, PLANT AND EQUIPMENT

TANGIBLE FIXED ASSETS

Heritable Commerical Office Computer Other Total

Property, Pland & Equipment Property Property Equipment Equipment Equipment

£ £ £ £ £ £

Current Year Cost

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

Transfers in year - - - - - -

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) (4,682) (17,337) (4,509) (49,026)

Eliminated on Disposal - - -

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

Prior Year

At start of the year 915,125 939,280 81,515 278,287 95,113 2,309,320

Additions during the year - - - 6,156 6,915 13,071

Disposals - - - - - -

At end of year 779,066 939,280 81,515 284,443 102,028 2,186,332

Depreciation

At start of year - (99,056) (69,903) (226,927) (76,704) (472,590)

Provided in year - (22,498) (4,759) (22,270) (4,361) (53,888)

Eliminated on Disposal - - - - - -

At end of year - (121,554) (74,662) (249,197) (81,065) (526,478)

Net Book Value

At end of year 779,066 817,726 6,853 35,246 20,963 1,659,854


NOTE 10 INVESTMENTS

NOTE 11 TRADE AND OTHER RECEIVABLES

In accordance with the development agreement accounting policy, £2.5 million was included in the 2016

debtors balance with respect to the expected cost of the development work that Comhairle Nan Eilean Siar has

committed to undertake in order to refurbish the properties. The Comhairle has sub-contracted the

Partnership to carry out the programme of catch-up repairs to the residential accommodation as part of a

development agreement. An identical provision was made in the accounts for this expenditure in 2016. The

debtor and the associated provision has been fully utilised in 2017.

Investments

2017 2016

£ £

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%

Trade and other receivables

2017 2016

£ £

Rental Arrears 132,907 173,927

Less: provision for bad debts (70,420) (82,512)

62,487 91,415

Amounts owed by subsidary undertaking (due within 1 year) 16,053 15,803

Other debtors 596,149 602,373

Prepayments and accrued income 535,224 489,852

Other debtors (due in more than 1 year) 212,831 2,684,549

Total 1,422,744 3,883,992


NOTE 12 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Outstanding retentions will be financed in due course by additional loan funding.

Creditors-Amounts falling due within one year

2017 2016

£ £

Bank loans and overdrafts 88,736 104,331

Trade payables 32,523 138,899

Contract retentions 152,820 101,486

Accruals and deferred income 1,294,306 645,321

Rent in advance 55,711 53,092

HAG creditor 43,710 58,065

HAG Repayable 134,537 -

RTB Receipts Repayable on demand 689,489 -

Total 2,491,833 1,101,194


NOTE 13 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

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. In setting up this facility the Partnership incurred total arrangement fees of £92,738 in 2017

(2016: £120,093) which are included in debtors and which 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.

Creditors-Amounts falling due after more than one year

2017 2016

£ £

Bank term loans 5,000,000 5,000,000

RTB Receipts due to the Scottish Government 5,583,000 4,840,869

Total 10,583,000 9,840,869

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 10,583,000 9,840,869

10,583,000 9,840,869


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 (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)

Prior Year

At start of the year (38,092,093) (1,952,695) (57,678) (871,526) (40,973,992)

Additions during the year (230,516) (1,369,981) - - (1,600,497)

Disposals during the year 306,794 2,118 - - 308,912

Transfers in year (1,797,317) 1,709,692 - 136,059 48,434

Amortised in year 1,051,958 - 2,064 777 1,054,799

At end of year (38,761,174) (1,610,866) (55,614) (734,690) (41,162,344)


NOTE 15 PROVISIONS FOR LIABILITIES AND CHARGES

The provision represents the best estimate of the costs of contracted works for the repair of managed

properties. This agreement is part of the development agreement and as work progresses the provision will be

utilised when the work is actually undertaken.

NOTE 16 SHARE CAPITAL

Shares were held by the following Board members during the year:

Iain Macmillan, Calum Mackay, Jane Mackinnon, Daniel Coyle, Alasdair Mackenzie and Mairi Bremner.

Provisions for Liabilities and Charges

2017 2016

£ £

At 1 April 2016 2,524,919 5,020,572

Created in Year - -

Utilised (2,524,919) (2,495,653)

At 31 March 2017 - 2,524,919

Pension Fund

2017 2016

£ £

At 1 April 2016 1,567,000 2,322,000

Created in Year 1,671,000 (755,000)

Utilised

At 31 March 2017 3,238,000 1,567,000

Share Capital

2017 2016

£ £

Shares of £1 each issued and fully paid

At 1 April 2016 196 195

issued during period 1 1

At 31 March 2017 197 196


NOTE 17 KEY MANAGEMENT EMOLUMENTS

NOTE 18 EMPLOYEE INFORMATION

The number of persons (head count) employed during the year was: 48

In the year to 31 March 2017 the average number of employees of the Partnership, including Executive

Directors, was 40.75 (FTE), (2016 – 43.5 FTE).

OFFICER'S EMOLUMENTS

2017 2016

£ £

Senior Officers are defined as the Chief Executive, the Director of

Resources and Director of Operations

Aggregate emoluments payable to Directors exceeding £60,000 163,743 220,600

(including pension contributions and benefits in kind)

Emoluments payable to the highest paid officer 70,206 78,724

(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 13,058 14,645

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

The Chief Executive retired in Jully 2016, replaced by the then Director of Resources.

The Director of Resources post was renamed "Director of Finance & Corporate Services" and this post was filled in December 2016.

EMPLOYEE INFORMATION

2017 2016

£ £

Staff costs (for the above persons)

Wages and Salaries 1,133,816 1,108,112

Social Security costs 103,768 75,655

Employers' pension costs 217,953 201,793

FRS102 Pension Adjustment (Note 22) 112,000 150,000

1,567,537 1,535,560

Staff costs capitalised (368,667) (353,266)

1,198,869 1,182,294


NOTE 19 OPERATING SURPLUS

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 (2016: nil).

NOTE 21 CAPITAL COMMITMENTS

OPERATING SURPLUS

2017 2016

£ £

Operating surplus is stated after charging:

Depreciation 2,521,582 2,345,470

Amortised capital grants (1,205,590) (1,054,799)

Repairs:cyclical, major, day to day 2,376,285 2,624,391

Auditor's remuneration

-in their capacity as auditors 13,530 13,020

-in respect of other services - -

CAPITAL COMMITMENTS

2017 2016

£ £

Capital expenditure which has been contracted for but

has not been provided for in the financial statements 6,330,189 3,399,088

Capital expenditure which has been authorised by the

Board but is not contracted 40,021,150 23,561,380

46,351,339 26,960,468

This is to be funded by:

Funding from the Scottish Government 26,539,669 15,519,686

Private Finance 19,811,670 11,440,782

46,351,339 26,960,468


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 2014. 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 19.5% of pensionable salaries.

Members contributions ranged from 5.5% to 9.3% averaged 5.9%.

As at the balance sheet date there were 44 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 FRS102 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 2017. Such a report is required by legislation for years in which a full

actuarial valuation is not carried out. The funding update revealed an increase in the assets of the Scheme to

£8.865 million and indicated an increase in the shortfall of assets compared to liabilities to approximately

£3.238 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 2014.

EMPLOYER MEMBERSHIP STATISTICS

Employer Membership Statistics

Average Age

Number

31-Mar-14 31-Mar-14

Actives 44 52

Deferred Pensionsers 18 50

Pensioners 7 61

Total Salaries/Pensions

£000's

31-Mar-14

982

44

87


INVESTMENT RETURNS

The return on the Fund in market value terms for the period to 31 March 2017 is estimated below based on

actual Fund returns as provided by the Administering Authority and index returns where necessary. Details

are below:

MAJOR CATEGORIES OF PLAN ASSETS AS A % OF TOTAL PLAN ASSETS

The bid value of the Fund’s assets are estimated to be £1,743,000,000 based on information provided by the

Administering Authority.

FINANCIAL ASSUMPTIONS

HISTORIC MORTALITY

Actual returns from 1 April 2016 to 31 December 2016 15.00%

Total returns from 1 April 2016 to 31 March 2017 19.90%

Period Ended 31-Mar-17 31-Mar-16

Equities 70.00% 67.00%

Bonds 17.00% 18.00%

Property 11.00% 11.00%

Cash 2.00% 4.00%

Period Ended 31-Mar-17 31-Mar-16

Pension increase Rate 2.40% 2.20%

Salary increase Rate 4.40% 4.20%

Discount Rate 2.60% 3.50%

Period Ended PensionersProspective Pensioners

CMI2012 model assuming current

rates of improvement have

peaked and will converge to a

long term rate of 1.25% p.a.

CMI2012 model assuming current

rates of improvement have

peaked and will converge to a

long term rate of 1.25% p.a.

31-Mar-17


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.

CHANGES IN FAIR VALUE OF PLAN ASSETS, DEFINED BENEFIT OBLIGATION AND NET

LIABILITY FOR THE YEAR ENDED 31 MARCH 2017

Assets Obligations Net Liability/

Period ended 31 March 2017 Asset

£000's £000's £000's

Fair Value of Plan Assets 7,305 - 7,305

Present Value of liabilitites - 8,844 (8,844)

Present value of unfunded liabilities - 28 (28)

Opening Position at 31 March 2016 7,305 8,872 (1,567)

Service Cost - 331 (331)

Net Interest

Interest on income on plan assets 257 - 257

Interest cost on defined benefit obligation - 314 (314)

Total Net interest 257 314 (57)

Total defined benefit cost recoginised in P & L 257 645 (388)

Cashflows

Plan Participants contributions 70 70 -

Employers contributions 218 - 218

Contributions in respect of unfunded benefits 1 - 1

Benefits paid (190) (190) -

Unfunded benefits paid (1) (1) -

Expected closing position 7,660 9,396 (1,736)

Remeasurements

Changes in demographic assumptions - - -

Changes in financial assumptions - 2,706 (2,706)

Other experience - 1 (1)

Return on assets excluding amounts in net interest 1,205 - 1,205

Total remeasurements recognised in Other Comprehensive 1,205 2,707 (1,502)

Income (OCI)

Fair Value of plan assets 8,865 - 8,865

Present value of funded liabilities - 12,070 (12,070)

Present value of unfunded liabilities - 33 (33)

Closing position at 31 March 2017 8,865 12,103 (3,238)


NOTE 23 PROPERTY STOCK

The number of units of accommodation owned by the Partnership was as follows:

NOTE 24 REVENUE COMMITMENTS

Property Stock

The number of units of accommodation owed by the Partnership was as follows:

2017 2016 2017 2016

Unimproved

New Build 347 325 74 26

Improved 1,831 1,865

General Needs Housing 2,178 2,190 74 26

Shared Ownership Accommodation 3 3 - -

Supported Housing Accommodation 12 12 - -

Total Housing Stock 2,193 2,205 74 26

Other Property

Garages 42 42

Commerical 7 7 - -

Heritable-Partnership's offices 2 2 - -

Total Other Property 51 51 - -

Units in

Management

Units under

Development

Operating Leases

2017 2016

At 31 March 2017 the Partnership had outstanding commitments for £ £

future minimum lease payments under non-cancellable operating

leases, which fall due as follows:

Within one year 11,271 11,685

In the second to fifth year inclusive 18,449 29,212

29,720 40,897


NOTE 25 SCOTTISH GOVERNMENT GRANTS

The Scottish Government had made available a non-repayable grant of £2.5 million payable over 10 years with

2015/16 being the last year of the grant. As a result there was no drawdown in 2017 as shown:

In addition The Scottish Government has made available a loan to the Partnership of £1,431,620 being the

Comhairle’s share of the Right to Buy receipts received this year.

NOTE 26 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 £10,638

Arrears £37

COUNCILLORS

David Blaney, Norman Macleod, DJ Macrae and Gordon Murray were councillors with Comhairle Nan Eilean

Siar but only Gordon Murray was re-elected on the 4th

of May 2017. 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.

Scottish Government Non-Specific Grants

2017 2016

£ £

Opening balance - 150,000

Grant Funding received & 150,000

applied to investment expenditure

Deferred for application against future expenditure - -


At the year end HHP Community Housing owed Hebridean Housing Partnership £16,053 (2016: £15,803) which

is included in other debtors Note 11.

NOTE 27 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.

POST BALANCE SHEET EVENTS

At the year end, Hebridean Housing Partnership had one active legal case which it was pursuing with regards

to structural issues with one of its housing developments. HHP have appointed an Independent expert to

review the case but their final report was not available at the time of signing the accounts. At present the

assets concerned are held with a lower Net Book Value than their Estimated Value in Use (taking into

consideration they may have a useful life lower than what is currently assumed in the financial statements).

Statement of Financial Position as at 31 March 2017

31 March 2017 31 March 2016 Non-accountant's guide

£ £

Tangible Fixed Assets

Tangible Assets-Social Housing 73,557,295 70,087,014 Houses we own

Tangible Assets-Property, plant & equipment 1,528,478 1,659,854 Offices and equipment

Investments 2 2 Share in Subsidiary & ESCO

75,085,775 71,746,870

Current Assets

Stock 388,884 37,451

Trade and other debtors 1,422,744 3,883,992 Money owed to us

Investments 4,506,628 3,564,265 Short term deposits

Cash at bank and in hand 2,724,142 1,959,905

9,042,398 9,445,613

Creditors: amounts falling due within one year (2,491,833) (1,101,194) Money we owe others



Creditors: amounts falling due after more What we owe on loans for building our

than one year (10,583,000) (9,840,869) houses & money due to Scottish Government

Deferred Capital Grants (41,687,852) (41,162,344) Housing Grants received

Pension Liability (3,238,000) (1,567,000)

Provisions for liabilities − (2,524,919)

Net Assets 26,127,488 24,996,157

Capital and Reserves

Share Capital 197 196 Number of members £1 shares

Income and Expenditure reserve 26,127,291 24,995,961

26,127,488 24,996,157

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2016/1

7

Message from the Chair

MESSAGE FROM THE CHAIR

TO FOLLOW

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APPENDIX 2

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Annual Return on the Charter (ARC)

HHP submitted its fourth Annual Return on the Charter (ARC) in May 2017. How we have

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

2014/15 and 2015/16 ARC data.

DETAIL ARC 2016/17 ARC 2015/16 ARC 2014/15

REPAIRS

Emergency repairs completed 1983 2118 1923

Non-emergency repairs completed 3029 3577 3153

ARREARS

Total arrear as a % of rent due 3.32% 3.82% 4.18%

Former tenant arrear written off £28,222 £31,207 £86,902

VOIDS

Void at year end 20 11 10

Void for more than six months 3 2 0

Void loss 0.85% 0.73% 0.70%

LETTINGS

General needs 225 206 220

New applicants added to housing list 453 412 433

Number of applicants on list 586 578 624

DEVELOPMENT

New build 22 25 8

GENERAL

Rent increase 3.2% 2.1% 3.0%

Financial Overview

Statement of Comprehensive Income for the year ended 31 March 2017

Statement of Changes in Reserves for the year ended 31 March 2017

31 March 2017 31 March 2016

£ £

Unrestricted Fund Opening Balance 24,995,961 21,376,400

Surplus from statement of comprehensive income 1,131,330 3,619,561

Prior Year adjustment − −

Unrestricted Fund Closing Balance 26,127,291 24,995,961

31 March 2017 31 March 2016 Non-accountant's guide

£ £

Turnover 9,989,189 12,710,418 Income from rents and other activities

Operating Expenditure (6,792,497) (9,624,596) Cost of maintenance and management

of properties and other activities

Operating Surplus 3,196,692 3,085,822

Loss on disposal of property, plant & equipment (218,318) (123,606)

Interest receivable 9,568 11,567 Bank interest on deposit accounts

Interest payable and financing costs (354,611) (336,222) Interest on money borrowed

Surplus before tax 2,633,330 2,637,561

Actuarial (loss)/gain in respect of pension scheme (1,502,000) 982,000

Total comprehensive income for the year 1,131,330 3,619,561

Registered Number: SC379412 (Scotland)

HHP COMMUNITY HOUSING LIMITED

REPORT OF THE DIRECTORS AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE PERIOD 1 APRIL 2016 TO 31 MARCH 2017

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APPENDIX 3

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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


COMPANY INFORMATION FOR THE PERIOD 1 APRIL 2016 TO 31 MARCH 2017

__________________________________________________________________________________

__________________________________________________________________________________ 1

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)



__________________________________________________________________________________

__________________________________________________________________________________ 2

The Directors present their report with the financial statements of the Company for the period 1

April 2016 to 31 March 2017.

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 2016 to the date of this report are as

follows:

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:

Directors Changes during the year

Appointed Resigned

George Lonie 1 June 2010 2 May 2016

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



__________________________________________________________________________________

__________________________________________________________________________________ 3

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:

27 June 2017


FINANCIAL STATEMENTS FOR THE PERIOD 1 APRIL 2016 TO 31 MARCH 2017

__________________________________________________________________________________

__________________________________________________________________________________ 4

INCOME & EXPENDITURE ACCOUNT

31 March 2017 31 March 2016

£ £

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 (237) (234)

Loss on ordinary activities, before transfer to Reserves (237) (234)

Tax on surplus on ordinary activities - -

Deficit for the Year (237) (234)

Revenue Reserve at 1 April 2016 (16,589) (16,355)

Revenue Reserve at 31 March 2017 (16,826) (16,589)



__________________________________________________________________________________

__________________________________________________________________________________ 5

BALANCE SHEET

31 March 2017 31 March 2016

£ £

Notes

Current Assets

Cash at bank and in hand 1 1

1 1

Creditors: amounts falling due within one year 2 (16,826) (16,589)

Net current assets (16,825) (16,588)

Total assets less current liabilities (16,825) (16,588)


Called up Share Capital 3 1 1

Revenue Reserve 4 (16,826) (16,589)

SHAREHOLDERS FUNDS (16,825) (16,588)



__________________________________________________________________________________

__________________________________________________________________________________ 6

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 2017 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 2017 in accordance with Section 476 of the Companies Act 2006.

For the financial year ended 31 March 2017 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 27 June 2017

Director

Company Registration No: SC379412

The notes form part of these financial statements.


NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD 1 APRIL 2016 TO 31 MARCH 2017

__________________________________________________________________________________

__________________________________________________________________________________ 7

1. ACCOUNTING POLICIES

Accounting Convention

The financial statements have been prepared under the historical cost convention and in

accordance with the Financial Reporting Standard for Smaller Entities (effective January

2015).

The Company has not traded during the year ended 31 March 2017.

2. CREDITORS: Amounts falling due within one year

2017 2016

£ £

Intercompany Creditor 16,826 16,589

3. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number: Class: Nominal Value 2017 £

2016 £

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

2017 2016

£ £

Accumulated surplus at 1 April 2016 (16,589) (16,589)

Loss for the year (237) -

Accumulated surplus at 31 March 2017 (16,826) (16,589)

Donald Macleod Page 1 27/6/17

Agenda Item 9

BOARD 28 June 2017

SHR RETURNS 2016/17


PURPOSE OF REPORT

1.1 To present Loan Portfolio return (2016/17), Annual Financial Statements (2016/17) and five year plans (2017-2022) 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 returns to be submitted to the Scottish Housing Regulator are at Appendix 1 to 3.

COMPETENCE

3.1 Submission of the three returns by the 30 June 2017 will ensure the Partnership’s regulatory requirements are met.

RECOMMENDATIONS

4.1 It is recommended that the Board approve for submission to the Scottish housing regulator

a) the Loan Portfolio Return for 2016/17 as at Appendix 1;

b) the Annual Financial Statements Return for 2016/17 as at Appendix 2;

c) the five year plan Return for 2017-2022 as at Appendix 3; and

d) the 2017 updated 30 year cashflows shown at Appendix 4.

APPENDIX 1 Loan Portfolio Return 2016/17

APPENDIX 2 Annual Financial Statements 2016/17

APPENDIX 3 Five Year Plans 2017-2020

APPENDIX 4 2017 Updated 30 Year Cash Flows

Background Papers None


DML Page 2 of 2 27/6/17

COMPETENCE

Financial 5.1 The five year plan considers the resources the Partnership requires for 2017-22 in line

with the assumptions in the 30 Year Business Plan which was approved at the March 2017 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 following the recent Government

announcement of additional development funding for the Outer Hebrides. A revision will need to be made once all implications of the additional monies are taken into account including a supply/demand assessment and its impact on the 30 year plan.

Legal 5.4 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”.

5.5 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.

5.6 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.

RISK

6.1 The setting of realistic budgets with robust assumptions reduces the risk of financial loss and failure as highlighted in the Risk Register.

LOAN PORTFOLIO SYSTEM

«ApplicationFormName»«CreatedOn» Page 1 of 11

RSL: 359 - Hebridean Housing Partnership Ltd ( HHP )

Return Annual Return 2017 31/03/2017

Further Return Details

Accounting Year End Do you have any ISDAs? Does Lender have a floating charge over the company’s assets

Intragroup Lending / Borrowing

March No No Yes

Social Housing Units

Owned by RSL Used for Security Unencumbered % of Unencumbered with positive value

2193 2193 0 0.00

Comment

Total Facility (£’000s) Facility Outstanding (£’000s) Facility Undrawn (£’000s)

15,000.0 5,088.7 9,911.3

1 Facility Detail 1

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Facility Number

Lender Status Facility Total £’000s

Start Date EndDate

Amount Undrawn

Amount Outstanding

Undrawn Facility For

Details Committed? Next5 Yrs?

Multi Lender

HHPRBS001 Royal Bank of Scotland plc

Live 5,000.0 18/09/2015 10/09/2041 1,500.0 3,500.0 No No

Facility Fees

Details

Arrangement Fees Y

Non-Utilisation Fees Y

Other Fees N

Additional Lenders

1.1.1 Loan Details 1Loan Ref No Status Loan Type Loan Amt O/standing Repayment Terms Purpose Details Ref Rate Margin / All-in Rate

RBSFIXED002 Live Fixed Rate Loan

3,500.0 3,500.0 Interest only followed by structured capital repayments

Affordable Housing Development

Fixed Rate Percentage

5.4830

1.1.2 Additional Loan and Security DetailLoan Ref No First Capital

RepaymentFinal Capital Payment

Int is being First Interest

Deal Expires

Forward Fixes

Security from Social Housing %

Social Housing Security

Basis Date of Valuation

Covenants



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 without sales

31/03/2017 Yes

1.1.2.1.1 Covenant Detail 1

Loan Ref No Seq. No. Type of Covenant Required Level Reporting frequency Date of last report Level Achieved

1 Interest Cover Cashflow deficit £4.8m Annually 31/03/2017 Actual cashflow surplus £1.1m

How is it calculated? total interest paid divided Net Operating Cashflow except in years where there is a deficit.


RBSVAR003 Live Variable Rate Loan

1,500.0 0.0 Interest only followed by structured capital repayments


LIBOR 3 month

0.3000





Int is being First Interest Payment

Deal Expires

Forward Fixes


Social Housing Security Value £’000s


Covenants

RBSVAR003 21/09/2015 21/09/2015 Paid 18/09/2015 100.00 26,784.0 EUV-SH without sales

31/03/2015 Yes



1 Interest Cover Maximum Annually 31/03/2013 Max deficit £1144KActual deficit £520KInt Cover -1.06

How is it calculated? total interest divided by net operating cashflow except in years where there is a deficit. The funder has set a max deficit level for the years in which a deficitis forecast



2 Facility Detail 2Facility Number


Start Date EndDate

Amount Undrawn

Amount Outstanding



Multi Lender


Live 5,000.0 18/09/2015 17/09/2025 5,000.0 0.0 New Build - Social Housing

Yes Yes No

Facility Fees

Details

Arrangement Fees Y


Other Fees N

Additional Lenders

3 Facility Detail 3Facility Number


Start Date EndDate

Amount Undrawn

Amount Outstanding



Multi Lender


Live 5,000.0 18/09/2015 17/09/2025 3,411.3 1,588.7 Working Capital

Yes Yes No



Facility Fees

Details

Arrangement Fees Y


Other Fees N

Additional Lenders



1,500.0 1,500.0 Interest only - Bullet repayment at end of term from refinancing


LIBOR 3 month

1.25



Int is being First Interest Payment

Deal Expires

Forward Fixes


Social Housing Security Value £’000s


Covenants

RBSVAR1043 10/09/2041 Paid 28/10/2015 100 26,784.0 EUV-SH without sales

31/03/2017 Yes





4210 Interest Cover Cashflow deficit £4.8m for 2016/17 Annually 31/03/2017 Surplus £1.1m

How is it calculated? Annual Cashflow Deficit CovenantIn 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 CovenantIn 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 A31March2017 4,824,49031March2018 1,513,38031March2019 2,457,18031March2020 1,675,19031March2021 2,186,03031March2022 430,65031March2032 532,73031March2033 1,971,530Part B31March2023 1.6931March2024 1.8731March2025 2.5031March2026 2.9731March2027 4.40



31March2028 4.4531March2029 5.2431March2030 3.8831March2031 4.4631March2034 5.2931March2035 10.7031March2036 16.531March2037 15.7831March2038 1.5631March2039 113.47



187.7 88.7 Interest only - Bullet repayment at end of term from refinancing

Capital Investment LIBOR 3 month

1.25



Int is being First Interest

Deal Expires

Forward Fixes


Social Housing Security


Covenants



Payment Value £’000s

RBSVAR1044 10/09/2041 Paid 28/08/2015 100 26,784.0 EUV-SH without sales

31/03/2017 Yes



4211 Interest Cover Cash flow deficit 2016/17 £4.8m Annually 31/03/2017 Surplus £1.1m 2016/17

How is it calculated? Annual Cashflow Deficit CovenantIn 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 CovenantIn 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 A31March2017 4,824,49031March2018 1,513,38031March2019 2,457,18031March2020 1,675,19031March2021 2,186,03031March2022 430,650



31March2032 532,73031March2033 1,971,530Part B31March2023 1.6931March2024 1.8731March2025 2.5031March2026 2.9731March2027 4.4031March2028 4.4531March2029 5.2431March2030 3.8831March2031 4.4631March2034 5.2931March2035 10.7031March2036 16.531March2037 15.7831March2038 1.5631March2039 113.47



4 Intra Group Finance 120 has value when required 20. Please enter Loan Reference Number.

4.1 Intragroup LendingSeq. No. Status Borrower Relations

hipAmount Provided

Balance Outstanding

Purpose of Loan

Loan Purpose Details

Duration (months)

First Repayment Date

Part of Funds Borrowed

Loan Ref No

Lender Aware

1 Live HHP Community Housing Ltd

Subsidiary 16.1 16.1 Working Capital

48 28/02/2018 Yes - Yes

Security Type of Security

Security Details Security Value

Loan Agreement

Repayment Period (mo)

Repayment Terms

Ref Rate Margin / All-in rate

Start Date End Date

No Yes 12 Payment start date deferred-bullet repayment of interest and capital at maturity

Base 1.0000 01/03/2014 28/02/2018

Audited Financial Statements ReturnFinancial Statements

Reporting Year 2017

RSL Reg No and Name 359

Hebridean Housing Partnership Ltd

Statement of Comprehensive Income£'000 £'000

Turnover 9,989.2Operating costs (6,792.5)Exceptional items 0.0Operating surplus/(deficit) 3,196.7

Gain/(loss) on disposal of property, plant and equipment (218.3)Share of operating surplus/(deficit) in joint ventures and associates 0.0Interest receivable 9.6Interest payable (354.6)Other financing (costs)/income 0.0Release of negative goodwill 0.0Movement in fair value of financial instruments 0.0Decrease in valuation of housing properties 0.0Reversal of previous decrease in valuation of housing properties 0.0Total (563.3)

Surplus/(deficit) before tax 2,633.4

Tax (payable)/recoverable 0.0

Surplus/(deficit) for the year 2,633.4

Unrealised surplus/(deficit) on revaluation of housing properties 0.0Actuarial (loss)/gain in respect of pension schemes (1,502.0)Change in fair value of hedged financial instruments 0.0

Total comprehensive income for the year 1,131.4

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APPENDIX 2


Reporting Year 2017RSL Reg No and Name 359 Hebridean Housing Partnership Ltd

Statement of Changes in Equity

Share capital Revenue reserve Restricted reserveRevaluation

reserve

Total excluding non-controlling

interest£'000 £'000 £'000 £'000 £'000

Balance at beginning of the year 0.2 24,996.0 0.0 0.0 24,996.2Issue of shares 0.0 0.0 0.0 0.0 0.0Cancellation of shares 0.0 0.0 0.0 0.0 0.0Surplus/(deficit) from statement of comprehensive income 0.0 1,131.3 0.0 0.0 1,131.3Transfer from revaluation reserve to revenue reserve 0.0 0.0 0.0 0.0 0.0Transfer of restricted expenditure from unrestricted reserve 0.0 0.0 0.0 0.0 0.0Balance at end of the year 0.2 26,127.3 0.0 0.0 26,127.5

Non-controlling interest

Total including non-controlling

interest Restricted fund Unrestricted fund£'000 £'000 £'000 £'000

Balance at beginning of the year 0.0 24,996.2 0.0 24,996.2Issue of shares 0.0 0.0 0.0 0.0Cancellation of shares 0.0 0.0 0.0 0.0Surplus/(deficit) from statement of comprehensive income 0.0 1,131.3 0.0 1,131.3Transfer from revaluation reserve to revenue reserve 0.0 0.0 0.0 0.0Transfer of restricted expenditure from unrestricted reserve 0.0 0.0 0.0 0.0Balance at end of the year 0.0 26,127.5 0.0 26,127.5


Reporting Year 2017



Statement of Financial Position£'000 £'000

Non-current assets

Intangible assets and goodwill 0.0

Housing properties-NBV 73,557.3Negative goodwill 0.0Net housing assets 73,557.3

Non-current investments 0.0Other plant, property and equipment 1,528.5Investments in joint ventures and associates 0.0Total non-current assets 75,085.8

Receivables due after more than one year 212.8

Current Assets

Investments 0.0Stock and work in progress 388.9Trade and other receivables due within one year 1,209.9Cash and cash equivalents 7,230.8Total current assets 8,829.6

Payables: amounts falling due within one year (2,491.8)

Deferred income: amounts falling due within one year

Scottish housing grants (SHG) 0.0Other grants 0.0Total deferred income: amounts falling due within one year 0.0

Net current assets/(liabilities) 6,337.8

Total assets less current liabilities 81,636.4

Payables: amounts falling due after more than one year (10,583.0)Provisions 0.0Pension asset/(liability) (3,238.0)

Deferred income: amounts falling due after more than one year

Scottish housing grants (SHG) (41,687.9)Other grants 0.0

Total deferred income: amounts falling due after more than one year (41,687.9)

Total long term liabilities (55,508.9)

Net assets 26,127.5

Capital & reserves

Share capital 0.2Revaluation reserves 0.0Restricted reserves 0.0Revenue reserves 26,127.3Total reserves 26,127.5


Reporting Year 2017



Statement of Cash Flows£'000 £'000

Net cash inflow/(outflow) from operating activities 6,226.0

Tax paid/(refunded) 0.0

Cash flow from investing activities

Acquisition and construction of properties (6,810.2)Purchase of other non current assets 0.0Sales of properties 733.1Sales of other non current assets 0.0Capital Grants received 1,822.1Capital Grants repaid 0.0Interest received 9.6Net cash inflow/(outflow) from investing activities (4,245.4)

Cash flow from financing activities

Interest paid (258.4)Interest element of finance lease rental payment 0.0Share capital received/(repaid) 0.0Funding drawn down 0.0Funding repaid (15.6)Early repayment and associated charges 0.0Capital element of finance lease rental payments 0.0Withdrawal from deposits 0.0Net cash inflow/(outflow) from financing (274.0)

Net change in cash and cash equivalents 1,706.6

Cash and cash equivalents at beginning of the year 5,524.2Cash and cash equivalents at end of the year 7,230.8



Note 1 - Particulars of turnover, operating costs and operating surplus or deficit

Turnover Operating CostsOperating

Surplus/(Deficit)£'000 £'000 £'000

Affordable letting activities 9,964.5 (6,736.3) 3,228.2Other activities 24.8 (56.3) (31.5)Total 9,989.3 (6,792.6) 3,196.7

Note 2 - Particulars of turnover, operating costs and operating surplus or deficit from affordable letting activities

General Needs Social Housing

Supported Social Housing

Accommodation

Shared Ownership

Housing Other Total£'000 £'000 £'000 £'000 £'000

Rent receivable 8,292.7 49.6 3.4 0.0 8,345.7Service charges 48.1 3.9 2.4 0.0 54.4Gross income 8,340.8 53.5 5.8 0.0 8,400.1

Voids (91.6) 0.0 0.0 0.0 (91.6)Net income 8,249.2 53.5 5.8 0.0 8,308.5

Grants released from deferred income 1,209.6 0.0 0.0 0.0 1,209.6Revenue grants from Scottish Ministers 0.0 0.0 0.0 0.0 0.0Other revenue grants 446.4 0.0 0.0 0.0 446.4

Total turnover: letting 9,905.2 53.5 5.8 0.0 9,964.5

Management and maintenance administration costs (1,797.6) (13.2) (2.5) 0.0 (1,813.3)Service costs 0.0 0.0 0.0 0.0 0.0Planned maintenance (987.7) (0.3) 0.0 0.0 (988.0)Reactive maintenance (1,383.5) (4.7) (0.1) 0.0 (1,388.3)Bad debts written (off)/back (25.1) 0.0 0.0 0.0 (25.1)Depreciation: housing (2,519.5) 0.0 (2.1) 0.0 (2,521.6)Impairment 0.0 0.0 0.0 0.0 0.0

Operating costs (6,713.4) (18.2) (4.7) 0.0 (6,736.3)

Operating surplus/(deficit) 3,191.8 35.3 1.1 0.0 3,228.2

UnitsUnits owned and managed at year end 2,178.0 12.0 3.0 51.0 2,244.0Units managed, not owned at year end 0.0 0.0 0.0 0.0 0.0Units owned, not managed at year end 0.0 0.0 0.0 0.0 0.0Units held for demolition at year end 0.0 0.0 0.0 0.0Total units owned / managed 2,178.0 12.0 3.0 51.0 2,244.0

Cost per unitManagement & maintenance administration 825.3 1,100.0 833.3 0.0 808.1Planned maintenance 453.5 25.0 0.0 0.0 440.3Reactive maintenance 635.2 391.7 33.3 0.0 618.7Total direct maintenance 1,088.7 416.7 33.3 0.0 1,059.0Total management & maintenance 1,914.0 1,516.7 866.7 0.0 1,867.0



Note 3 - Particulars of turnover, operating costs and operating surplus or deficit from other activities

Grants from Scottish Ministers

Other revenue grants

Supporting people income Other income Total turnover

Other operating costs

Operating surplus/(deficit)

£'000 £'000 £'000 £'000 £'000 £'000 £'000

Wider role 0.0 0.0 0.0 0.0 0.0 0.0 0.0Care and repair 0.0 0.0 0.0 0.0 0.0 0.0 0.0Investment property activities 0.0 0.0 0.0 0.0 0.0 0.0 0.0Factoring 0.0 0.0 0.0 3.1 3.1 (3.1) 0.0Support activities 0.0 0.0 0.0 0.0 0.0 0.0 0.0Care activities 0.0 0.0 0.0 0.0 0.0 0.0 0.0Contracted out services undertaken for RSLs 0.0 0.0 0.0 0.0 0.0 0.0 0.0Contracted out services undertaken for others 0.0 0.0 0.0 0.0 0.0 0.0 0.0Developments for sale to RSLs 0.0 0.0 0.0 0.0 0.0 0.0 0.0Developments for sale to non-RSLs 0.0 0.0 0.0 0.0 0.0 0.0 0.0Uncapitalised development administration costs 0.0 0.0 0.0 14.9 14.9 (44.5) (29.6)Other activities 0.0 0.0 0.0 6.8 6.8 (8.7) (1.9)

Total 0.0 0.0 0.0 24.8 24.8 (56.3) (31.5)

Supplementary Items£'000

Chief executive emoluments excluding pension contribution 70.2Total staff costs 1,567.5Total key management personnel emoluments 163.7External auditors' fees - audit 13.5Auditors' fees - other 0.0Capitalised maintenance costs 0.0Capitalised development administration costs 43.2Capitalised interest costs 0.0Receivables - net rental 62.5Pension deficit recovery payments due within one year 0.0Pension deficit recovery payments due after more than one year 0.0Intra-group lending 0.0Housing loans due within one year 88.7Other loans due within one year 0.0Intra-group borrowing due within one year 0.0Overdraft / bridging finance 0.0Housing loans due after more than one year 5,000.0Other loans due after more than one year 0.0Intra-group borrowing due after more than one year 0.0Accumulated depreciation 18,032.2Intra-group receivables 16.1Other intra-group payables 0.0



Contextual Information

Accounting year end

Date financial statements authorised

Are the financial statements qualified?

External auditors' name

Internal auditors' name

Contingent liabilities Legal action NoLSVT contract compliance NoNone NoPension NoRepayment of SHG NoOther No

Do you account for housing assets on a revaluation basis?Calendar year of last housing asset revaluation

Staff Pension SchemesWhich scheme(s) are you members of?Highland Pension FundNoneNoneNoneNoneNoneNoneNoneHow many staff members not currently contributing to any scheme?SHAPS financial assessment risk ratingAre you appealing this risk rating?

How many particpating members in each scheme?44

2N/AN/A

0000000

Wylie & Bisset

Scott-Moncrieff

No

No

March

28/06/2017


Reporting Year 2017



Accounts Information

Date return approved

Approver

Approver job title Director of Finance & Corporate Services

28/06/2017

Donald Macleod

2017359 Hebridean Housing Partnership Ltd

Interest cover (%)

Gearing (%) Voids (%) Arrears (%) Bad debts (%) Staff costs / turnover (%)

Key management personnel /

staff costs (%)

Turnover per unit (£)

2,413.2 (8.2) 1.1 0.8 0.3 15.7 10.4 4,451.5

LiquidityCurrent ratio Gross surplus

/ (deficit) (%)Net surplus /

(deficit)Debt burden Net debt per

unit (£)Debt per unit

(£)Income from non-rental

activities (%)

Other activities surplus / operating

surplus (%)3.5 32.0 26.4 0.5 -955 2,268 16.8 (1.0)

Reporting Year

Audited Financial Statements ReturnRatios Report

Profitability Diversification

Financial capacity Efficiency

Financing

RSL Reg No and Name

Financial Projections & Assumptions

Hebridean Housing Partnership Ltd 3590 1 2 3 4 5

2016/17 2017/18 2018/19 2019/20 2020/21 2021/22

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 : 8,345.7 8,462.7 8,812.1 9,339.0 9,875.8 10,495.0

Service charges 11 : 54.4 35.0 36.4 37.7 38.8 40.0

Gross rents & service charges 12 : 8,400.1 8,497.7 8,848.5 9,376.7 9,914.6 10,535.0 10+11

Rent loss from voids 13 : 91.6 170.2 177.1 186.9 197.0 209.3

Net rent & service charges 14 : 8,308.5 8,327.5 8,671.4 9,189.8 9,717.6 10,325.7 12-13

Developments for sale income 15 : 0.0 433.4 2,387.8 1,095.0 1,460.0 1,095.0

Grants released from deferred income 16 : 1,209.6 893.2 921.3 1,004.3 1,098.4 1,203.7

Grants from Scottish Ministers 17 : 0.0 0.0 0.0 0.0 0.0 0.0

Other grants 18 : 253.5 120.0 120.0 120.0 120.0 120.0

Other income 19 : 217.5 5.0 5.2 5.4 5.5 5.7

TURNOVER 20 : 9,989.1 9,779.1 12,105.7 11,414.5 12,401.5 12,750.1 SUM(14:19)

Less:

Housing depreciation 22 : 2,521.6 2,265.1 2,470.0 2,784.3 3,002.7 3,280.9

Impairment written off / (back) 23 : 0.0 0.0 0.0 0.0 0.0 0.0

Management costs 25 : 1,813.3 2,817.3 2,320.0 2,414.9 2,419.0 2,502.9

Planned maintenance - direct costs 26 : 988.0 1,965.8 1,280.8 1,306.0 1,429.2 1,481.8

Re-active & voids maintenance - direct costs 27 : 1,388.3 1,207.0 1,166.0 1,214.8 1,260.8 1,292.7

Maintenance overhead costs 28 : 0.0 0.0 0.0 0.0 0.0 0.0

Bad debts written off / (back) 29 : 25.1 169.8 176.4 185.9 195.5 206.4

Developments for sale costs 30 : 44.5 433.4 2,387.8 1,095.0 1,460.0 1,095.0

Other activity costs 31 : 11.8 15.0 15.6 16.1 16.6 17.1

Other costs 32 : 0.0 98.1 80.4 61.7 42.8 44.0

33 : 4,270.9 6,706.4 7,427.0 6,294.4 6,823.9 6,639.9 SUM (25:32)

Operating Costs 35 : 6,792.5 8,971.5 9,897.0 9,078.7 9,826.6 9,920.8 22+23+33

Exceptional Items - (Income) / Expense 36 :

OPERATING SURPLUS/(DEFICIT) 37 : 3,196.6 807.6 2,208.7 2,335.8 2,574.9 2,829.3 20-35-36

Gain/(Loss) on disposal of PPE 39 : (218.3) 228.8 0.0 0.0 0.0 0.0

Interest receivable and other income 40 : 9.6 12.7 4.9 6.0 18.3 15.4

Interest payable and similar charges 41 : 354.6 368.2 452.5 780.3 947.0 1,040.5

Increase / (Decrease) in Negative Goodwill 42 : 0.0 0.0 0.0 0.0 0.0 0.0

Other Gains / (Losses) 43 : (1,502.0) 0.0 0.0 0.0 0.0 0.0

SURPLUS/(DEFICIT) ON ORDINARY ACTIVITIES BEFORE TAX 45 : 1,131.2 680.9 1,761.1 1,561.5 1,646.2 1,804.2 37+39+40-41+42+43

Tax on surplus on ordinary activities 47 : 0.0 0.0 0.0 0.0 0.0

SURPLUS/(DEFICIT) FOR THE YEAR AFTER TAX 49 : 1,131.2 680.9 1,761.1 1,561.5 1,646.2 1,804.2 45-47

2017

5 Yr Financial Projections Projections & Assumptions- Page 1 of 5 Printed 27/06/2017 @ 17:06

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APPENDIX 3

Ratios

Hebridean Housing Partnership Ltd 359-2 -1 0 1 2 3 4 5

2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22

Year -2 Year -1 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Financial capacity

Interest cover % 2,413.1 209.1 851.8 554.9 473.4 480.9

Gearing % 13.2 27.4 40.9 46.6 53.7 54.0

Efficiency

Voids % 1.1 2.0 2.0 2.0 2.0 2.0

Arrears % 0.8 9.0 9.0 7.6 8.6 8.3

Bad debts % 0.3 2.0 2.0 2.0 2.0 2.0

Staff costs / turnover % 12.0 15.0 12.5 13.8 13.0 13.1

Turnover per unit (£) 4,555.0 4,559.0 5,581.2 5,130.1 5,475.3 5,448.8

Liquidity

Current ratio 3.6 26.4 21.2 34.3 31.6 23.6

Profitability

Gross surplus / Deficit % 32.0 8.3 18.2 20.5 20.8 22.2

Net surplus / Deficit % 11.3 7.0 14.5 13.7 13.3 14.2

Financing

Debt Burden 1.1 1.1 1.1 1.6 1.7 1.6

Net debt per unit (£) 1,569.1 3,419.4 5,384.3 6,310.5 7,537.4 7,750.1

Debt per unit (£) 4,866.3 4,916.0 6,253.1 7,971.6 9,048.5 8,766.2

Diversification

Income from non-rental activities % 2.2 0.1 0.1 0.1 0.1 0.0

Other Activities Surplus to Operating Surplus % 6.4 (1.2) (0.5) (0.5) (0.4) (0.4)

2017

The Ratio calculations for Year -1 and Year -2 are not available. We are aware of this and it will

be resolved for next year. In the meantime the Ratio values are all calculated in the relevant AFS

returns. Details of how the Ratios are calculated are included in the User Guide.

5 Yr Financial Projections Ratios- Page 1 of 1 Printed 27/06/2017 @ 17:05



2016/17 2017/18 2018/19 2019/20 2020/21 2021/22


£'000 £'000 £'000 £'000 £'000 £'000

2017

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 : 76,761.9 82,219.8 97,409.7 109,613.0 118,706.9 125,336.3

Less

Housing Depreciation 59 : 2,521.6 2,236.3 4,706.3 7,490.6 10,493.3 13,774.2

Negative Goodwill 60 : 0.0 0.0 0.0 0.0 0.0 0.0

NET HOUSING ASSETS 61 : 74,240.4 79,983.5 92,703.4 102,122.4 108,213.6 111,562.1 57-59-60

Non-Current Investments 63 : 0.0 0.0 0.0 0.0 0.0 0.0

Other Non Current Assets 64 : 845.4 818.0 790.7 763.3 735.9 715.7

TOTAL NON-CURRENT ASSETS 65 : 75,085.8 80,801.5 93,494.1 102,885.7 108,949.5 112,277.8 54+61+63+64

Current Assets

Net rental receivables 68 : 62.5 748.1 776.4 698.3 832.6 861.7

Other receivables, stock & WIP 69 : 1,749.1 (20.5) 17.6 17.6 17.6 17.6

Investments (non-cash) 70 : 0.0 0.0 0.0 0.0 0.0 0.0

Cash at bank and in hand 71 : 7,230.8 3,210.2 1,884.4 3,695.9 3,422.7 2,377.8

TOTAL CURRENT ASSETS 72 : 9,042.4 3,937.8 2,678.4 4,411.8 4,272.9 3,257.1 SUM(68:71)

Payables : Amounts falling due within One Year

Loans due within one year 75 : 88.7 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 : 2,403.3 149.1 126.2 128.6 135.1 138.2

TOTAL CURRENT LIABILITIES 78 : 2,492.0 149.1 126.2 128.6 135.1 138.2 75+76+77

NET CURRENT ASSETS/(LIABILITIES) 80 : 6,550.4 3,788.7 2,552.2 4,283.2 4,137.8 3,118.9 72-78

TOTAL ASSETS LESS CURRENT LIABILITIES 82 : 81,636.2 84,590.2 96,046.3 107,168.9 113,087.3 115,396.7 65+80

Payables : Amounts falling due After One Year

Loans due after one year 85 : 10,583.0 10,544.9 13,563.0 17,736.8 20,494.9 20,513.0

Other long-term payables 86 : 0.0 0.0 0.0 0.0 0.0 0.0

Grants to be released 87 : 41,687.9 43,998.9 50,675.8 56,063.3 57,577.2 58,064.4

88 : 52,270.9 54,543.8 64,238.8 73,800.1 78,072.1 78,577.4 85+86+87

Provisions for liabilities & charges 89 : 3,238.0 3,238.2 3,238.2 3,238.2 3,238.2 3,238.2

NET ASSETS 90 : 26,127.3 26,808.2 28,569.3 30,130.6 31,777.0 33,581.1 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




2016/17 2017/18 2018/19 2019/20 2020/21 2021/22


£'000 £'000 £'000 £'000 £'000 £'000

2017

Revenue reserves 96 : 26,127.3 26,808.2 28,569.3 30,130.6 31,777.0 33,581.1

TOTAL CAPITAL & RESERVES 97 : 26,127.3 26,808.2 28,569.3 30,130.6 31,777.0 33,581.1 SUM(93:96)

Pension Liability - as included above 99 : 3,238.0 3,238.0 3,238.0 3,238.0 3,238.0 3,238.0

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




2016/17 2017/18 2018/19 2019/20 2020/21 2021/22


£'000 £'000 £'000 £'000 £'000 £'000

2017

STATEMENT OF CASHFLOWS

Net Cash from Operating Activities

Operating Surplus/(Deficit) 106 : 3,196.6 807.6 2,208.7 2,335.8 2,574.9 2,829.3 37

Depreciation & Amortisation 107 : 2,521.6 2,292.5 2,497.3 2,811.7 3,030.1 3,301.1

Impairments / (Revaluation Enhancements) 108 : 0.0 0.0 0.0 0.0 0.0 0.0

Increase / (Decrease) in Payables 109 : 3,179.2 (1,197.5) 0.0 0.0 0.0 0.0

(Increase) / Decrease in Receivables 110 : (63.7) 859.4 0.0 0.0 0.0 0.0

(Increase) / Decrease in Stock & WIP 111 : (351.4) 409.4 (38.0) 0.0 0.0 0.0

Gain / (Loss) on sale of non-current assets 112 : (218.3) 0.0 0.0 0.0 0.0 0.0

Other non-cash adjustments 113 : (2,037.9) (2,148.9) (972.6) (924.0) (1,226.1) (1,229.9)

NET CASH FROM OPERATING ACTIVITIES 114 : 6,226.0 1,022.5 3,695.4 4,223.5 4,378.9 4,900.5 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 : 9.6 12.7 4.9 6.0 18.3 15.4

Interest (Paid) 120 : (258.4) (495.1) (434.4) (762.2) (928.9) (1,022.3)

RETURNS ON INVESTMENT AND SERVICING OF FINANCE 121 : (248.8) (482.4) (429.5) (756.2) (910.6) (1,006.9) 119+120

Capital Expenditure & Financial Investment

Construction or acquisition of Housing properties 124 : (3,163.5) (3,628.6) (11,231.1) (7,826.3) (5,049.9) (2,438.8)

Improvement of Housing 125 : (3,633.0) (4,350.8) (3,958.8) (4,377.0) (4,043.9) (4,190.6)

Construction or acquisition of other Land & Buildings 126 : - 0.0 0.0 0.0 0.0 0.0

Construction or acquisition of other Non-Current Assets 127 : (13.7) 0.0 0.0 0.0 0.0 0.0

Sale of Social Housing Properties 128 : 733.1 214.4 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 : 1,822.1 3,204.3 7,598.2 6,391.8 2,612.3 1,690.9

CAPITAL EXPENDITURE AND FINANCIAL INVESTMENT 132 : (4,255.0) (4,560.7) (7,591.7) (5,811.5) (6,481.5) (4,938.5) SUM(124:131)

NET CASH BEFORE FINANCING 134 : 1,722.2 (4,020.6) (4,325.8) (2,344.2) (3,013.2) (1,044.9) 114+116+121+132

Financing

Equity drawdown 137 : - 0.0 0.0 0.0 0.0 0.0

Debt drawndown 138 : - 0.0 3,000.0 4,155.7 2,740.0 0.0

Debt repayment 139 : (15.6) 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 : (15.6) 0.0 3,000.0 4,155.7 2,740.0 0.0 SUM(137:140)

INCREASE / (DECREASE) IN NET CASH 143 : 1,706.6 (4,020.6) (1,325.8) 1,811.5 (273.2) (1,044.9) 134+141

Cash Balance

Balance Brought Forward 146 : 5,524.2 7,230.8 3,210.2 1,884.4 3,695.9 3,422.7 148 (Prior Year)

Increase / (Decrease) in Net Cash 147 : 1,706.6 (4,020.6) (1,325.8) 1,811.5 (273.2) (1,044.9) 143

CLOSING BALANCE 148 : 7,230.8 3,210.2 1,884.4 3,695.9 3,422.7 2,377.8 146+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




2016/17 2017/18 2018/19 2019/20 2020/21 2021/22


£'000 £'000 £'000 £'000 £'000 £'000

2017

ADDITIONAL INFORMATION

Units:

Number of units owned at end of period 154 : 2,193 2,145 2,169 2,225 2,265 2,340 [prevyr]154+161-173-174-175

Number of units managed at end of period (exclude factored units) 155 : 2,193 2,177 2,193 2,193 2,193 2,193

New Social Rent Properties added 157 : 22 (16) 24 56 40 75

New MMR Properties added 158 : 0 0 0 0 0 0

New Low Costs Home Ownership Properties added 159 : 0 0 0 0 0 0

New Properties - Other Tenures added 160 : 0 0 0 0 0 0

Total number of new affordable housing units added during year 161 : 22 (16) 24 56 40 75 SUM (157:160)

Financed by:

Scottish Housing Grants 164 : 1,579.2 1,282.7 2,626.4 5,412.4 4,060.8 7,988.9

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 1,282.7 2,626.4 5,412.4 4,060.8 7,988.9 SUM (164:169)

Number of units lost during year from:

Sales including right to buy 173 : 34 32 0 0 0 0

Demolition 174 : 0 0 0 0 0 0

Other 175 : 0 0 0 0 0 0

Assumptions:

General Inflation (%) 178 : - 0.0 3.4 3.1 2.5 2.5

Rent increase - Margin above General Inflation (%) 179 : - 0.0 0.5 0.5 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 3.5 4.2 5.7 5.3 5.1

Employers Contributions for pensions (%) 183 : 0.2 0.0 0.0 0.0 0.0 0.0

Employers Contributions for pensions (£'000) 184 : 218.0 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 1,468.6 1,515.6 1,570.1 1,617.2 1,665.7

Full time equivalent staff 188 : 40.8 0.0 0.0 0.0 0.0 0.0

EESSH Capital Expenditure included above 190 : 540.6 652.6 593.8 656.6 606.6 628.6

EESSH Revenue Expenditure included above 191 : 0.0 0.0 0.0 0.0 0.0 0.0


CASH FLOW FORECAST | HHP 5 Year Plan 2017-18 v 1.0 | Plan

Period: 01 April 2017 - 31 March 2047 2018 2019 2020 2021 2022 2023 2024£000's £000's £000's £000's £000's £000's £000's

OPERATING ACTIVITIESCash Received From Customers 9,828.40 12,490.90 11,482.10 12,622.30 12,605.70 10,611.10 11,216.70Cash Paid To Suppliers -7,267.00 -7,280.00 -5,688.40 -6,626.20 -6,039.50 -3,937.70 -4,146.50Cash Paid To Employees -1,468.60 -1,515.60 -1,570.10 -1,617.20 -1,665.70 -1,715.70 -1,767.20Net Cash From Operating Activities 1,092.90 3,695.40 4,223.60 4,378.90 4,900.50 4,957.60 5,303.00

Returns On Investments & Servicing Of FinanceInterest Collected 12.7 4.9 6 18.3 15.4 13.5 16.7Interest Charges -495.1 -434.4 -762.2 -928.9 -1,022.30 -1,022.30 -1,022.30Net Cash From Investment Returns & Finance Servicing -482.3 -429.5 -756.1 -910.5 -1,007.00 -1,008.80 -1,005.60

Provisions for tax

INVESTING ACTIVITIESAcquisition And Construction Of Properties -7,979.40 -15,189.90 -12,203.30 -9,093.90 -6,629.40 -3,559.10 -3,234.00Purchase Of Other Fixed AssetsGrants 3,204.30 7,598.20 6,391.80 2,612.30 1,690.90Sales Of Properties 214.4Sales Of Other Fixed AssetsOther (Purchases) SalesNet Cash From Investment Activities -4,560.70 -7,591.70 -5,811.60 -6,481.50 -4,938.50 -3,559.10 -3,234.00

Net Cash Before Financing -3,950.20 -4,325.80 -2,344.10 -3,013.20 -1,045.00 389.7 1,063.40

FINANCINGEquity DrawdownLoan Draw downs 3,000.00 4,155.70 2,740.00Capital RepaymentsLoan Working Capital MovementsWorking Capital Loan Drawdown 672.1 2,096.50Working Capital Loan Repayment -672.1 -2,096.50Net Cash From Financing 3,000.00 4,155.70 2,740.00

BALANCE BROUGHT FORWARD 7,160.40 3,210.20 1,884.40 3,695.90 3,422.70 2,377.80 2,767.50INCOME LESS PAYMENTS -3,950.20 -1,325.80 1,811.60 -273.2 -1,045.00 389.7 1,063.40CLOSING BANK POSITION 3,210.20 1,884.40 3,695.90 3,422.70 2,377.80 2,767.50 3,830.90

aglsmi

Typewritten Text

APPENDIX 4

2025 2026 2027 2028 2029 2030 2031 2032 2033 2034£000's £000's £000's £000's £000's £000's £000's £000's £000's £000's

11,326.10 11,843.90 12,226.90 12,793.30 12,886.80 13,444.90 13,877.60 14,521.20 14,627.40 15,261.70-4,267.70 -4,450.50 -4,581.40 -4,741.00 -4,837.80 -4,971.40 -5,108.80 -5,253.70 -5,475.50 -5,545.10-1,820.20 -1,874.80 -1,931.10 -1,989.00 -2,048.70 -2,099.90 -2,152.40 -2,206.20 -2,261.30 -2,317.905,238.20 5,518.50 5,714.40 6,063.30 6,000.30 6,373.60 6,616.40 7,061.20 6,890.50 7,398.70

22.6 6.2 18 28.6 36.5 45 55.9 70 76.3 75.1-1,022.30 -664 -654.8 -654.8 -654.8 -654.8 -655.8 -655.8 -655.8 -596.5

-999.8 -657.8 -636.9 -626.3 -618.3 -609.8 -599.9 -585.9 -579.6 -521.4

-2,958.40 -2,789.50 -2,341.00 -3,854.80 -3,567.20 -4,223.70 -3,367.70 -3,408.10 -6,652.20 -4,683.00

-2,958.40 -2,789.50 -2,341.00 -3,854.80 -3,567.20 -4,223.70 -3,367.70 -3,408.10 -6,652.20 -4,683.00

1,280.00 2,071.20 2,736.60 1,582.20 1,814.90 1,540.20 2,648.80 3,067.20 -341.2 2,194.40

-5,000.00 -2,000.00

250-250

-4,750.00 -250 -2,000.00

3,830.90 360.8 2,182.00 4,918.60 6,500.80 8,315.70 9,855.90 12,504.70 15,571.90 15,230.70-3,470.00 1,821.20 2,736.60 1,582.20 1,814.90 1,540.20 2,648.80 3,067.20 -341.2 194.4

360.8 2,182.00 4,918.60 6,500.80 8,315.70 9,855.90 12,504.70 15,571.90 15,230.70 15,425.10

2035 2036 2037 2038 2039 2040 2041 2042 2043 2044£000's £000's £000's £000's £000's £000's £000's £000's £000's £000's

15,753.30 16,484.70 16,605.40 17,326.20 17,884.90 18,716.00 18,853.20 19,672.20 20,307.10 21,251.70-5,698.90 -5,865.30 -6,019.90 -5,852.50 -5,577.10 -5,722.30 -5,879.40 -6,045.90 -6,277.20 -6,428.70-2,375.80 -2,435.20 -2,496.10 -2,558.50 -2,622.50 -2,688.00 -2,755.20 -2,824.10 -2,894.70 -2,967.107,678.60 8,184.20 8,089.40 8,915.20 9,685.30 10,305.70 10,218.50 10,802.30 11,135.30 11,855.90

72.7 68 49.1 60.6 63.6 68.2 76.5 87.6 84.7 85.3-417.4 -158.1-344.7 -90.1 49.1 60.6 63.6 68.2 76.5 87.6 84.7 85.3

-4,626.00 -5,100.20 -3,859.70 -8,067.00 -9,345.00 -8,724.90 -9,240.60 -7,889.60 -12,696.50 -10,884.50

-4,626.00 -5,100.20 -3,859.70 -8,067.00 -9,345.00 -8,724.90 -9,240.60 -7,889.60 -12,696.50 -10,884.50

2,707.90 2,993.90 4,278.80 908.8 403.9 1,649.00 1,054.50 3,000.30 -1,476.50 1,056.70

-4,000.00 -9,291.30

-4,000.00 -9,291.30

15,425.10 14,133.00 7,835.50 12,114.30 13,023.10 13,427.00 15,076.00 16,130.50 19,130.80 17,654.30-1,292.10 -6,297.50 4,278.80 908.8 403.9 1,649.00 1,054.50 3,000.30 -1,476.50 1,056.7014,133.00 7,835.50 12,114.30 13,023.10 13,427.00 15,076.00 16,130.50 19,130.80 17,654.30 18,711.00

2045 2046 2047 Total£000's £000's £000's £000's

21,407.40 21,348.30 22,037.60 461,315.00-6,604.90 -6,821.60 -6,882.00 -169,893.90-3,041.20 -3,117.30 -3,195.20 -67,992.30

11,761.30 11,409.40 11,960.40 223,428.80

92.1 110.9 129.2 1,570.20-13,132.60

92.1 110.9 129.2 -11,562.40

-9,655.80 -8,275.50 -8,581.70 -202,681.70

21,497.50214.4

-9,655.80 -8,275.50 -8,581.70 -180,969.80

2,197.60 3,244.80 3,507.90 30,896.60

9,895.70-20,291.30

3,018.60-3,018.60

-10,395.70

18,711.00 20,908.60 24,153.40 7,160.402,197.60 3,244.80 3,507.90 20,501.00

20,908.60 24,153.40 27,661.30 27,661.30

Agenda Item 10

BOARD 28 June 2017

BUDGETARY PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2017


PURPOSE OF REPORT

1.1 To present a report on the performance against budget for the year ended 31 March 2017 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 2017 has been prepared and is at Appendix 1.

2.2 Proposals for carrying forward underspend from 2016/17 into 2017/18 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 2017 as at Appendix 1;

b) approve the carry forward of £824,492 of slippage into 2017/18 as detailed in Appendix 2;

c) note the Financial Covenant for 2016/17 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 2017/18.

APPENDIX 1 H Budgetary Performance for 2016/17

APPENDIX 2 Carry Forward Slippage 2016/17

APPENDIX 3 Financial Covenant 2016/17

Background Papers Corporate Sponsorship 17 March 2012


of 2 23/6/17

COMPETENCE

Financial 5.1 The Report deals with how the financial resources of the Partnership have been utilised.

5.2 The borrowing requirements for 2017/18 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 2017/18.

Legal 5.3 The following Partnership rules are applicable:

Rule 81.2 – At an Annual General Meeting, members may decide to use profits in the following ways:

Rule 81.2.1 – to set aside an amount recommended by the Board to allow the Partnership to carry out the objects of the Partnership.

Rule 81.2.2 – to give an amount recommended by the Board to charitable voluntary groups which further the objects of the Partnership.

5.4 The following Standing Orders are applicable:

Part 2 a) The decision to approve and amend Budgets, including virements in excess of £50,000, is reserved to the Board.

RISK

6.1 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 2016/17 was a maximum cash flow deficit of £4,824,490. Appendix 3 shows the covenant position at 31 March 2017.

REPORT DETAILS

7.1 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. A more detailed analysis is available from the Finance Manager on request.

7.2 Appendix 2 details proposals for carrying forward budgets into 2017/18 totalling £824,492. It is worth noting that this includes previous Board approved carryover of £300K for investment, £80K RHI enhancement to repairs & £110K for unadopted infrastructure.

7.3 In June 2016 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 2017 AGM.

BUDGETARY PERFORMANCE 2016/17 APPENDIX 1

2013/14 2014/15 2015/16 2016/17 2016/17

ACTUAL ACTUAL ACTUAL ACTUAL BUDGET VARIANCE

Line £ £ £ £ £ £ %

1 Net Rental Income (7,674,021) (8,152,319) (8,151,824) (8,282,597) (8,112,640) 169,957 (2.09)

2 Grants (716,031) (705,830) (573,586) (446,387) (818,920) (372,533) 45.49

3 Grant Amortisation 0 0 (1,149,173) (1,209,599) (1,200,000) 9,599 (0.80)

4 Right to Buy (31,980) (8,783) 61,039 127,511 (53,300) (180,811) 339.23

5 Other Income (434,749) (436,371) (3,126,518) (394,210) (365,060) 29,150 (7.99)

6 Interest Received (7,027) (7,899) (11,333) (9,330) (11,000) (1,670) 15.18

7 Total Income (8,863,808) (9,311,203) (12,951,396) (10,214,613) (10,560,920) (346,307) 3.28

8 Employee Costs 1,300,191.30 1,306,601.44 1,364,628.96 1,420,709.56 1,561,960.00 141,250.44 9.04

9 Premises Costs 44,906.01 25,612.12 40,063.94 36,514.04 46,620.00 10,105.96 21.68

10 Supplies and Services 204,533.34 203,686.38 216,530.88 210,407.37 245,760.00 35,352.63 14.39

11 Administration Costs 65,534.96 75,487.18 62,562.38 83,375.56 173,110.00 89,734.44 51.84

12 Corporate Expenses 359,199.74 397,801.16 453,593.95 465,807.98 666,850.00 201,042.02 30.15

13 Total Management Costs 1,974,365.35 2,009,188.28 2,137,380.11 2,216,814.51 2,694,300.00 477,485.49 17.72

14 General Repairs 997,773 1,235,806 1,315,928 1,227,907 1,038,460 (189,447) (18.24)

15 Specific Repairs 33,531 42,235 54,072 57,200 49,535 (7,665) (15.47)

16 Rechargeable Repairs 51,141 12,333 16,950 29,903 38,200 8,297 21.72

17 Insurance Repairs 58,033 93,771 66,560 52,210 55,000 2,790 5.07

18 Non Dwelling Repairs 11,382 14,155 14,347 21,087 30,380 9,293 30.59

19 Total Response Repairs 1,151,859 1,398,300 1,467,858 1,388,307 1,211,575 (176,732) (14.59)

20 Planned Maintenance 585,237 531,550 750,469 622,601 586,990 (35,611) (6.07)

21 Estate Works 23,384 31,648 43,389 33,668 157,470 123,802 78.62

22 Total Planned Maintenance 608,621 563,198 793,858 656,269 744,460 88,191 11.85

23 Investment Programme 3,580,616 3,433,581 3,022,586 4,217,963 5,174,395 956,432 18.48

24 Development Programme 2,477,647 2,319,230 2,757,075 3,168,364 4,948,221 1,779,857 35.97

25 Non Housing Investment 1,194 - 13,257 225 30,000 29,775 99.25

26 Total Capital Investment 6,059,457 5,752,811 5,792,918 7,386,552 10,152,616 2,766,064 27.24

Commentary on Performance

Total Income

Grants Budget includes £440K of HEEPS monies capitalised at Year End.

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.

Interest Received Lower interest rates post Brexit and a £450 hit coming from a prior year adjustment contributes to

lower interest payments being received this year.

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 slippage in training costs.

Corporate Costs Provision was made in Corporate Costs for legal fees required to provide title security to our Funder.

The cost of the work has been transferred to the Balance Sheet resulting in a saving being shown on

Corporate costs.

In addition Finance Consultants fees (Treasury Mgt, General and Property Consultants, VAT) were significantly

lower than expected.

Total Response Repairs Cost

Overspend in Total Response Repairs Cost was mainly due to overspend in Responsive and Void Repairs.

Responsive Repairs were broadly within budget during the summer months but increased over the winter during the more

inclement weather.

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 and Dun Berisay.

Total Response & Planned Repairs Costs

Final out-turn shows an overspend of £195K which has accumulated through the year. The repairs budget for 2017/18 has been uplifted

by £80K (RHI Income) and spend will be continually monitored through 2017/18.

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 2017 and to accept savings on

projects where works were accelerated.

BUDGETARY PERFORMANCE 2016/17 APPENDIX 1

Commentary on Net Rental Income

Commentary on Grant Income

Commentary on Right to Buy

Commentary on Employee Costs

Commentary on Management Costs

Net Rental Income exceeded budget by 2.1%. This was due mainly to the following:

a) The voids performance being better than budget; and

b) The number of bad debts written off was less than expected.

Grant income has reduced year on year as a result of the deficit funding Grant from

the Scottish Government coming to an end in 2015/16.

The partnership continue to be active in its utilisation of stage 3 adaptation grants

and HEEPs.

The level of RTBs for 2016/17 continued to be high as the scheme ended 31st July

2016.

However, the total RTB income shows a loss as a number of properties had a high

discount and a significant level of investment expenditure which has resulted in a

loss on sale of the asset.

Employee costs were under budget by £141K which is made up of

Salaries £84.1k Savings are mainly due to a delay in

filling vacant posts.

Pensions & NI £30.4k

Travel & Sub £19.0k Level of travel was less than

expected.

Average employee cost has risen from £32.4k to £34.9k.

Management costs are £477k under budget due to slippage and savings.

Premises £10k Due to maintenance and energy cost

Administration £90k Mainly due to

Recruitment £20k

Training £34k

Community Support £20k

Consultants £74k Reduced financial consultancy

£52k variance is corporate legal costs driven by capitalised securities work.

7.2

7.4

7.6

7.8

8.0

8.2

8.4

2013 2014 2015 2016

(£)

Mill

ion

s

Net Rental Income

0

200

400

600

800

2013 2014 2015 2016

(£)

Tho

usa

nd

s

Grant Income

140

100

60

20

20

60

2013 2014 2015 2016

(£)

Tho

usa

nd

s

Right to Buy

0.000.200.400.600.801.001.201.401.60

2013 2014 2015 2016

(£)

Mill

ion

s

Employee costs

0

100

200

300

400

500

600

700

800

900

2013 2014 2015 2016

(£)

Tho

usa

nd

s

Management Costs

Corporate Costs Supplies & Svcs Costs Admin Costs Premises Costs

APPENDIX 1

IF Page 1 of 3 23/6/17

BOARD MEMBERS EXPENSES 2016/17

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 T details the areas of expenditure incurred during the year against budget.

1.4 On analysing the data, there has been an overall underspend of 36% 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 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%




APPENDIX 1

IF Page 2 of 3 23/6/17

1.6 From the chart below we can see the majority of expenditure is incurred in Island Subsistence and Island Travel. This is to be expected.

CHART FOR BOARD MEMBERS’ EXPENSES

Conference Fees20%

Mainland Travel & Subsistence

13%

Island Travel32%

Island Subsistence32%

Board Training3%

Budget Spend

APPENDIX 1

IF Page 3 of 3 23/6/17

Conference

Fees

Mainland

Travel

Mainland

Subsistence

Island

Travel

Island

Subsistence

Board

Training Total

David Blaney 860.00£ 325.10£ 137.29£ 803.80£ 1,046.95£ -£ 3,173.14£

Iain Macmillan 252.00£ 297.48£ 6.85£ -£ -£ -£ 556.33£

Mairi Bremner 550.00£ 278.50£ 96.00£ 988.40£ 1,165.35£ -£ 3,078.25£

Daniel Coyle -£ -£ -£ 85.50£ 153.35£ -£ 238.85£

Jane MacKinnon -£ -£ -£ 794.08£ 218.55£ -£ 1,012.63£

Alasdair Mackenzie -£ -£ -£ 22.95£ -£ -£ 22.95£

Board Catering -£ -£ -£ -£ 120.00£ -£ 120.00£

Board Training -£ -£ -£ -£ - 238.25£ 238.25£

Totals 1,662.00£ 901.08£ 240.14£ 2,694.73£ 2,704.20£ 238.25£ 8,440.40£

£23,240.00

36%Board & Area Committee Members Budget Allowance Underspend

Board & Area Committee Members Expenses 2016/17

Budget Allocation for 2016/17

Appendix 3

Annual Cashflow Deficit - March 17

Line Detail £

Income £

1 Dwelling rents (net) 8,295,341

2 Non Dwelling rents (net) 13,228

3 Right to Buy Sales 1,431,620

4 Grant Funding 446,387

5 Other Income 24,633

6 Grant received for New Build 1,624,351

7 Sale of LIFT received -

8 Grant on LIFT received 719,752

9 Insurance Receipts -

10 Total Income 12,555,314

Expenditure

13 Supervision & Management 1,960,372

14 Response Repairs 1,388,307

15 Estate Works 33,668

16 Planned/Cyclical Maintenance 954,319

17 Investment Programme 3,900,126

18 Office Alterations and IT 2,981

19 LIFT Costs 1,091,071

20 Opening Balances -

21 Development Costs 3,168,364

22 Total Expenditure 12,499,207

23 Net Operating Cashflow 56,107

24 Interest Paid 354,611

25 Interest Collected (9,568)

26 Security Fees Capitalised 84,356

27 Total Interest 429,399

28 Annual Cashflow Surplus/(Deficit) 373,292-

Interest Ratio 765%

Covenant Requirement

Maximum Annual Cashflow deficit (4,824,490)

Tolerance 4,451,198

-92%

Jackie Macleod Page 1 of 2 23/6/17

BOARD 28 June 2017

MANAGEMENT REPORT TO 31 MAY 2017


PURPOSE OF REPORT

1.1 To present a Management report for the month ended 31 May 2017 for the Board to review.

SUMMARY

2.1 This is the Management report to 31 May 2017 and the information is presented in compliance with regulations and 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 2017 as detailed in Appendix 1.

COMPETENCE

APPENDIX 1 H Management Report to 31 May 2017


Writer of Report Katia Petteloot Tel: 0300 123 0773

Agenda Item 11


Financial 5.1 The Board approved budgets for 2017/18 in February 2017 which projected a surplus for

the year of £1,911,630.The Revised Budget figure is £2,037,630.

Legal 5.2 There are no legal matters arising from the consideration of this report. 5.3 HHP’s Financial Regulations require that this report complies with statutory

requirements, accounting standards and appropriate codes of practice.

RISK

6.1 The key risk is that HHP does not meet its Financial Covenants on an ongoing basis. The covenant for 2017/18 has been reset at an annual cashflow deficit of £1,513,380.

Hebridean Housing Partnership Registered Scottish Charity SCO 35767

2017/18

Management Reports To 31 May 2017

APPENDIX 1

Hebridean Housing Partnership Management Reports

2

Introduction The Management Reports for 31 May 2017 are attached and if Board Members or Managers

have any areas of concern or would like additional information they should contact the

Finance and Business Services Manager or 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 2017/18.

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 2017/18 will not be breached.


3

Section 1-High Level Summary

Commentary on Performance by Director of Finance & Corporate

Services

The forecast out-turn is exceeding the revised budget as Grant Income is now confirmed

by Scottish Government to £126K higher than budget. RTB sales continue to drive a loss,

partially offset with better rental/voids performance.

Repairs & Maintenance are currently running over budget (£63K), mainly due to planned

maintenance. This has been reviewed and is driven by budget profiling with the full year

outturn on budget.

Repairs & Maintenance-based: overspend of £2K for Responsive Repairs and £13K

for Void Repairs for the year. This is partly offset by the YTD (Year to Date)

underspend in Handymen costs of £11K;

£

Initial approved Surplus 1,911,630

Slippage Carried Forward from 2016/17 -

Virement/Adjustment -

Revised Surplus 1,911,630

Changes identified this financial year

Additional Income 126,000

Cost (increases)/decreases -

Depreciation -

Grant Amortisation -

Forecast Surplus to 31 March 2018 2,037,630

Increase in funds required to meet forecast out-turn (126,000)


4

Cashflow continues to be healthy due to the Right to Buy receipts received YTD. Cash has

been placed on higher interest deposit accounts in accordance with Financial Regulations.

Right to buy ceased on 31st July 2016. There currently are 15 applications outstanding

with 1 application awaiting an offer being made.

The financial covenant for 2017/18 has yet to be formally approved by our Funders.

Schedule 5 Part A “Annual Cash Flow Deficit Cover” currently represents the Financial

Covenant Levels as per the Funders’ letter dated 11 November 2016. This will be updated

once we have formal approval of the 2017/18 covenants from our funders.

0 20 40 60 80 100 120

Rental Income

Grants Income

Other Income

Income

Above Below On Target

0 20 40 60 80 100 120

Interest

Management Costs


Investment

Development

Expenditure

Above Below On Target


5

Section 2 Management Accounts

Page

Summary Income & Expenditure Account 6

Balance Sheet at 31 May 2017 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


6

Income & Expenditure Account

For the period ended 31 May 2017

Commentary on Performance

The main points to note are

Line 6 Total Income The forecast out-turn is exceeding the revised budget as Grant Income has been confirmed by Scottish Government at £126K higher than budget. RTB sales continue to drive a loss, partially offset with better rental/voids performance.

Line 11 Total Operating expenditure Void repair and Planned Maintenance are two areas that currently

run over YTD budget by £80k. This is partly offset by a saving in Supervision & Management of £58k. The current repairs overspend YTD is driven by budget profiling and its expected that spend for the full year will be within budget.

Line 12 Operating Surplus The operating surplus is currently 12% ahead of budget largely due to higher

than expected rental income and high number of RTB sales in the first 2 months of the current Financial Year.

Line 21 Development Included in total budget are £816k sales proceeds and £889k HAG on the LIFT programme. More detailed explanations of variances can be found on pages 8 to 14

Line BUDGET ACTUAL

Initial Revised to Spend to Budget Budget to Revised Revised Over/ at

Budget Budget 31-May-17 31-May-17 to date date Budget Budget (under) 31/03/2017=8

£ £ £ £ £ % £ % £ £

1 Dwelling rents (net) 8,214,570 8,214,570 1,369,280 1,452,346 (83,066) -6% 6,762,224 82.32% 8,214,570

2 Non Dwelling rents (net) 13,200 13,200 1,760 6,063 (4,303) -244% 7,137 54.07% 13,200

3 Right to Buy Sales (102,480) (102,480) (17,060) (97,339) 80,279 -471% (5,141) 5.02% (102,480)

4 Grant Funding 120,000 120,000 120,000 24,514 95,486 80% 95,486 79.57% 126,000 246,000

5 Other Income 44,450 44,450 10,780 9,642 1,138 11% 34,808 78.31% 44,450

6 TOTAL INCOME 8,289,740 8,289,740 1,484,760 1,395,225 89,535 6% 6,894,515 83.17% 126,000 8,415,740

7 Supervision & Management 2,351,970 2,351,970 419,520 361,226 58,294 14% 1,990,744 84.64% - 2,351,970

8 Response Repairs 1,231,510 1,231,510 188,610 185,983 2,628 1% 1,045,528 84.90% - 1,231,510

9 Estate Works 175,570 175,570 6,730 21,615 (14,885) -221% 153,955 87.69% - 175,570

10 Planned/Cyclical Maintenance 645,710 645,710 68,130 121,732 (53,602) -79% 523,978 81.15% 645,710

11 Total Operating Expenditure 4,404,760 4,404,760 682,990 690,555 (7,565) -1% 3,714,205 84.32% - 4,404,760

12 Operating Surplus/(Deficit) 3,884,980 3,884,980 801,770 704,671 97,099 12% 3,180,309 81.86% 126,000 4,010,980

13 Interest received 5,000 5,000 500 227 273 55% 4,773 95.46% 5,000

14 Interest paid 457,650 457,650 68,780 43,638 25,142 37% 414,012 90.46% 457,650

15 Surplus/(Deficit) 3,432,330 3,432,330 733,490 661,259 72,231 10% 2,771,071 80.73% 126,000 3,558,330

16 Depreciation 2,720,700 2,720,700 253,400 430,717 (177,317) -70% 2,289,983 84.17% 2,720,700

17 Grant Amortisation (1,200,000) (1,200,000) - (200,576) 200,576 (999,424) 83.29% (1,200,000)

18 Surplus/(Deficit) 1,911,630 1,911,630 480,090 431,118 48,972 10% 1,480,512 77.45% 126,000 2,037,630

CAPITAL INVESTMENT

19 Housing Investment Programme 4,227,230 4,227,230 541,990 68,650 473,340 87% 4,158,580 98.38% 126,000 4,353,230

20 Non Housing Investment 30,000 30,000 - 197 (197) 29,803 99.34% - 30,000

21 Development Programme 1,152,340 1,242,020 (558,010) 566,566 (1,124,576) 202% 675,454 54.38% - 1,242,020

5,409,570 5,499,250 (16,020) 635,413 (651,433) 4066% 4,863,837 88.45% 126,000 5,625,250

CURRENT YEAR BUDGET BUDGET VARIANCE BUDGET REMAINING FORECAST OUT-TURN


7

Balance Sheet at 31 May 2017

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 on current properties and new developments.

& Investment Note 3 Trade Debtors Reduction in Sundry debtors & the removal of the accrued benefit income

accrual driving the majority of the reduction in Trade Debtors since Mar’17. Sundry debtors consisted of grant claims for HEEPS at Year End to be settled in Q1 of current Financial Year.

More detailed information is available in the Performance Report. Note 4 Cash Delays in development and investment works commencing as well as the

increased RTB sales have contributed to the increase in cash balances.

31 May 2017 31 March 2017

£ £

Notes

Fixed Assets

1 Tangible assets-social housing 1 72,939,788 73,557,295

2 Development & Investment Programme 2 635,413 -

3 Tangible assets - property, plant and equipment 845,415 845,418

4 Landbank 683,060 683,060

5 Investments 2 2

75,103,678 75,085,775

Current Assets

6 Stock 388,883 388,883

7 Trade and other debtors due within one year 3 181,153 1,209,913

8 Debtors due after more than one year 212,831 212,831

9 Short-term deposits 4,516,324 4,506,629

10 Cash at bank and in hand 4 3,401,698 2,724,142

13 Loan to subsiduary -

8,700,889 9,042,398

11 Creditors: amounts falling due within one year 5 (918,715) (2,491,833)



12 Creditors: amounts falling due after more than one

year 6 (11,604,345) (10,583,000)

13 Deferred capital grants 7 (41,484,908) (41,687,852)

14 Pension Liability (3,238,000) (3,238,000)

15 Net Assets 26,558,600 26,127,488


16 Share Capital 197 197

17 Revenue Reserve 26,558,403 26,127,291

26,558,600 26,127,488


8

Rental Income


Commentary on Performance Line 6 Total Income Rental income came in ahead of target and the voids performance is

also better than forecasted, resulting in net income for the year being above budget .

Line BUDGET ACTUAL

Initial Revised to Spend to Budget Budget to Revised Revised Over/ at

Budget Budget 31-May-17 31-May-17 to date date Budget Budget (under) 31-Mar-18

£ £ £ £ £ % £ % £ £

1 Dwelling Rent Gross 8,549,350 8,549,350 1,424,900 1,473,240 (48,340) -3% 7,076,110 82.77% (89) 8,549,261

2 Non Dwelling Rent Gross 14,520 14,520 2,420 6,759 (4,339) -179% 7,761 53.45% 63 14,583

3 Voids - Dwelling (166,680) (166,680) (27,600) (20,152) (7,448) 27% (146,528) 87.91% 76,014 (90,666)

4 Voids - Other (1,320) (1,320) (660) (696) 36 -5% (624) 47.28% 416 (904)

5 Bad Debts (168,100) (168,100) (28,020) (741) (27,279) 97% (167,359) 99.56% 74,472 (93,628)

6 TOTAL 8,227,770 8,227,770 1,371,040 1,458,410 (87,370) -6% 6,769,360 82.27% 150,876 8,378,646



9

Supervision & Management Costs


Commentary on performance Line 6 Employee Costs Savings are due the delay in implementing the annual salary increase

and short delays in filling vacant posts, specifically within the Finance, Housing Services and Customer Services teams.

Line Heading BUDGET Actual

Initial Revised to Spend to Budget Budget Revised Revised Over/ at

Budget Budget 31-May-17 31-May-17 to date to date Budget Budget (under) 31-Mar-18

£ £ £ £ £ % £ % £ £

1 Salaries and Wages 1,161,020 1,161,020 196,760 177,962 18,798 10% 983,058 85% 1,161,020

2 National Insurance 113,380 113,380 18,960 17,069 1,891 10% 96,311 85% 113,380

3 Pension Costs 215,370 215,370 36,000 33,714 2,286 6% 181,656 84% 215,370

4 Other Employee Costs 42,860 42,860 6,140 2,270 3,870 63% 40,590 95% 42,860

5 Travel & Subsistence 33,700 33,700 3,240 3,599 (359) -11% 30,101 89% 33,700

6 EMPLOYEE COSTS 1,566,330 1,566,330 261,100 234,615 26,485 10% 1,331,715 85% - 1,566,330

7 Premises Costs 44,900 44,900 5,140 1,078 4,062 9% 43,822 98% 44,900

8 IT & Telecoms 209,490 209,490 26,680 26,862 (182) 0% 182,628 87% 209,490

9 Area Offices 25,200 25,200 4,200 - 4,200 17% 25,200 100% 25,200

10 Payroll & Cashdesk 14,200 14,200 3,700 1,445 2,255 16% 12,755 90% 14,200

11 External Finance Services 4,010 4,010 - 4,010 (4,010) -100% - 0% 4,010

12 SUPPLIES & SERVICES 297,800 297,800 39,720 33,394 6,326 16% 264,406 89% - 297,800

13 Postage, Printing & Stationery 44,700 44,700 8,140 2,700 5,440 67% 42,000 94% 44,700

14 Admin Furniture & Equipment 3,000 3,000 520 54 466 90% 2,946 98% 3,000

15 Training Courses 55,450 55,450 5,960 5,331 629 11% 50,119 90% 55,450

16 Community Support 34,310 34,310 - 1,938 (1,938) 32,372 94% 34,310

17 Health & Safety 9,250 9,250 1,240 606 634 51% 8,644 93% 9,250

18 Recruitment Costs 20,500 20,500 3,420 60 3,360 98% 20,440 100% 20,500

19 ADMINISTRATION COSTS 167,210 167,210 19,280 10,689 8,591 45% 156,521 94% - 167,210

20 Professional Fees 355,860 355,860 48,180 33,898 14,282 30% 321,962 90% 355,860

21 Insurance 221,350 221,350 38,580 42,543 (3,963) -10% 178,808 81% 221,350

22 Affliation Fees 29,650 29,650 4,940 5,526 (586) -12% 24,124 81% 29,650

23 Charitable Donations 5,000 5,000 - - - 5,000 100% 5,000

24 Governance 41,600 41,600 4,620 138 4,482 97% 41,462 100% 41,600

25 Bank Charges 9,500 9,500 1,600 - 1,600 100% 9,500 100% 9,500

26 Public Relations/Marketing 15,080 15,080 2,500 423 2,077 83% 14,657 97% 15,080

27 CORPORATE EXPENSES 678,040 678,040 100,420 82,528 17,892 18% 595,512 88% - 678,040

28 Fees charged to capital (348,410) (348,410) - - - (348,410) 100% (348,410)

29 VAT Received - Partial Exemption (9,000) (9,000) (1,000) - (1,000) 100% (9,000) 100% (9,000)

31 RECHARGES (357,410) (357,410) (1,000) - (1,000) 100% (357,410) 100% - (357,410)

32

TOTAL SUPERVISION AND

MANAGEMENT COST 2,351,970 2,351,970 419,520 361,226 58,294 14% 1,990,744 85% - 2,351,970

CURRENT YEAR BUDGET BUDGET VARIANCE BUDGET VARIANCE forecast out-turn


10



Commentary on performance Line 29 Total Repairs The overall forecast out-turn position shows two budget areas different

to the approved YTD budget but running within full year budget:

Repairs & Maintenance: overspend of £2K for Responsive Repairs and £13K for Void Repairs for

the year. This is partly offset by the YTD underspend in Handymen costs of £11K.

Planned Maintenance comes in at £63K over YTD budget, driven by budget profiling with the

forecast out-turn on budget.

Void repairs are are above budget YTD but this is offset with savings on void loss income.

Line Heading CURRENT YEAR BUDGET BUDGET ACTUAL

Initial Revised to Spend to Budget to Budget to Revised Revised Over/ at

Budget Budget 31-May-17 31-May-17 date date Budget Budget (under) 31-Mar-18

£ £ £ £ £ % £ % £ £

1 Responsive Repairs 756,205 756,205 116,820 118,961 (2,141) -2% 637,244 84% 756,205

2 Void Repairs 180,250 180,250 22,900 35,598 (12,698) -55% 144,652 80% 180,250

3 Handymen 121,950 121,950 20,930 9,508 11,422 55% 112,442 92% 121,950

4 GENERAL REPAIRS 1,058,405 1,058,405 160,650 164,068 (3,418) -2% 894,337 84% - 1,058,405

5 Decoration Allowance 46,530 46,530 12,170 5,740 6,430 53% 40,790 88% 46,530

6 Furnished Units - - - - - - 0

6 Council Tax empty properties 9,800 9,800 1,600 588 1,012 63% 9,212 94% 9,800

7 Minor Aids & Adaptations 500 500 - - - 500 500

8 Compensation 10,195 10,195 1,500 552 948 63% 9,643 95% 10,195

9 SPECIFIC ITEMS 67,025 67,025 15,270 6,880 8,390 55% 60,145 90% - 67,025

10 Rechargeable Repairs 48,900 48,900 8,880 14,113 (5,233) -59% 34,787 71% 48,900

11 Rechargeable Repairs Recoverable (10,700) (10,700) - (9,076) 9,076 (1,624) 15% (10,700)

12 Insurance Repairs 55,000 55,000 3,200 60,849 (57,649) -1802% (5,849) -11% 55,000 110,000

13 Insurance Claims Recoverable (17,500) (17,500) - (55,000) 55,000 37,500 -214% (55,000) (72,500)

14 RECOVERABLE EXPENDITURE 75,700 75,700 12,080 10,886 1,194 10% 64,814 86% - 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 4,149 (3,739) -912% 25,031 86% 29,180

17 NON DWELLING REPAIRS 30,380 30,380 610 4,149 (3,539) -580% 26,231 - 30,380

18 Planned maintenance 506,800 506,800 48,050 110,857 (62,807) -131% 395,943 78% 506,800

19 Gas Servicing 60,000 60,000 10,000 8,813 1,187 12% 51,187 85% 60,000

20 Estate Management 14,320 14,320 1,860 800 1,060 57% 13,520 94% 14,320

21 Heating Servicing 44,360 44,360 7,270 500 6,770 93% 43,860 99% 44,360

22 Stair Lifts and Door Entry Systems 2,080 2,080 950 762 188 20% 1,318 63% 2,080

23 Gutter Cleaning 9,300 9,300 - - - 9,300 100% 9,300

24 Sewage Pumps - - - - - - 0

25 Energy Costs - - - - - - 0

26 Dun Berisay Heat 8,150 8,150 - - - 8,150 8,150

27 CYCLICAL MAINTENANCE 645,710 645,710 68,130 121,732 (53,602) -79% 523,978 81% - 645,710

28 TOTAL REPAIRS & MAINTENANCE 1,877,220 1,877,220 256,740 307,714 (50,974) -20% 1,569,506 84% - 1,877,220

BUDGET VARIANCE BUDGET REMAINING FORECAST OUT-TURN


11

Estate Works


Commentary on Performance Line 4 Total Estate Works Discussions have taken place with Scottish Water to find a solution for

the adoption of sewage systems. However, it appears there are a number which will not be adopted and therefore works will have to proceed by HHP to take these tanks up to a satisfactory specification. A brief is being prepared in order to allow tendering to engineers to prepare these specifications.

Drainage works on Scott Road in Tarbert are currently on hold as

consent is needed from all home owners before work can commence.

Line Heading BUDGET ACTUAL



£ £ £ £ £ % £ % £ £

1 Garage Repairs 3,110 3,110 500 - 500 100% 3,110 100% 3,110

2 Unadopted Infrastructure 129,510 129,510 3,260 1,347 1,913 59% 128,163 99% 129,510

3 Grounds Maintenance 42,950 42,950 2,970 20,268 (17,298) -582% 22,682 53% 42,950

4 TOTAL ESTATE WORKS 175,570 175,570 6,730 21,615 (14,885) -221% 153,955 88% - 175,570



12

Aids & Adaptations





£ £ £ £ £ % £ % £ £

Revenue Repairs

1 Minor Aids & Adapations 500 500 - - 500 100% 500


2 Aids & Adapations 120,000 120,000 120,000 48,308 71,692 40% 71,692 60% 126,000 246,000

Grants

3 Received (120,000) (120,000) (120,000) - (120,000) 0% (120,000) 100% (126,000) (246,000)

4 TOTAL AIDS & ADAPTATIONS - 500 - 48,308 (48,308) (47,808) -9562% - 500



13

Investment Expenditure


Commentary on Performance Line 20 Unallocated Expenditure A combination of slippage and savings has been set aside for

2017/18 investments and is reflected within the revised budgets. Line 22 Spend to Date The overall underspend of £473K is driven by budget profiling. Works

are due to complete at the end of July/ August. Over/(Under) As contracts are awarded amendments are made to the original

budget to reflect actual cost per unit. This column shows the areas where there are savings and cost overruns. The unallocated expenditure budget fully offset forecast overrun in other areas.

Out-turn The overall programme is within budget.




£ £ £ £ £ % £ % £ £

1 Roofs 77,000 77,000 - - - 77,000 100% 3,300 80,300

2 Insulation 161,880 161,880 - - - 161,880 100% 161,880

3 Roofs 238,880 238,880 - - - 238,880 100% 3,300 242,180

4 Kitchen 536,250 536,250 62,070 - 62,070 100% 536,250 100% 14,520 550,770

5 Bathrooms 61,200 61,200 30,600 - 30,600 100% 61,200 100% 8,250 69,450

6 OT Aids & Adaptations 120,000 120,000 24,000 48,308 (24,308) -101% 71,692 60% 126,000 246,000

7 Showers 44,400 44,400 22,200 - 22,200 100% 44,400 100% 1,650 46,050

8 Heating 1,848,180 1,848,180 239,280 4,532 234,748 98% 1,843,648 100% 58,850 1,907,030

9 Rewiring - - - - - - -

10 Smoke/C02 Detectors 116,000 116,000 40,780 - 40,780 100% 116,000 100% 116,000

11 Internals 2,726,030 2,726,030 418,930 52,840 366,090 87% 2,673,190 98% 209,270 2,935,300

12 Windows 257,990 257,990 - 3,050 (3,050) 254,940 99% 257,990

13 Windows & Doors 257,990 257,990 - 3,050 (3,050) 254,940 99% - 257,990

14 Roughcast house & wall 32,760 32,760 - - - 32,760 100% 32,760

16 Fencing 233,260 233,260 - 12,760 (12,760) 220,500 95% 233,260

17 Drainage/Sewers - - - - - - -

18 Structure - - - - - - 100% -

19 Other - - -

20 Unallocated Expenditure 738,310 738,310 123,060 123,060 100% 738,310 100% (86,570) 651,740

21 Efficiency Savings - - - - - -

22 Externals 1,004,330 1,004,330 123,060 12,760 110,300 90% 991,570 99% (86,570) 917,760

23 Total Investment 4,227,230 4,227,230 541,990 68,650 473,340 87% 4,158,580 98% 126,000 4,353,230

FORECAST OUT-TURNCURRENT YEAR BUDGET BUDGET VARIANCE BUDGET REMAINING


14

Non Housing Investment





£ £ £ £ £ % £ % £ £

1 Total Uist Office - -

-

2 Furniture & Fittings 197 (197) (197) 197 197

3 Office Equipment 30,000 30,000 - - - 30,000 (197) 29,803

4 Total Stornoway Office -

5 Total 30,000 30,000 - 197 (197) 29,803 - 30,000



15

Development Expenditure


Commentary on Performance Line 8 LIFT £816k sales proceeds and £889k HAG are forecasted for Financial Year

2017/18. Overall Spend to Date The purchase of the former Police Station building in Tarbert was

completed on the 18th of April. Contract completions Melbost 3 stage 3 and Melbost 4 works began on site in March’17.

Mackenzie Lane was handed over in May’17.

Line BUDGET ACTUAL

Initial Revised Budget to Spend to Budget to Budget to Revised Revised Over/ at


£ £ £ £ £ % £ % £ £

1 New Build 5,919,860 5,919,860 354,220 558,739 (204,519) -58% 5,361,121 91% 5,919,860

2 Retentions 13,000 13,000 13,000 - 13,000 100% 13,000 100% 13,000

2 LIFT 1,216,430 1,306,110 249,920 265,757 (15,837) -6% 1,040,353 80% 1,306,110

3 Total Development Costs 7,149,290 7,238,970 617,140 824,496 (207,356) -34% 6,414,474 89% - 7,238,970

Housing Association Grant

4 New Build (4,291,800) (4,291,800) (349,690) (196,974) (152,716) 44% (4,094,826) 95% (4,291,800)

7 Retentions - - - - - - -

5 LIFT (1,705,150) (1,705,150) (825,460) (60,956) (764,504) 93% (1,644,194) 96% (1,705,150)

6 Total Grants (5,996,950) (5,996,950) (1,175,150) (257,930) (917,220) 78% (5,739,020) 96% - (5,996,950)

Private Finance required

7 New Build 1,628,060 1,628,060 4,530 361,765 (357,235) -7886% 1,266,295 78% - 1,628,060

Retentions 13,000 13,000 13,000 - 13,000 100% 13,000 100% - 13,000

8 LIFT (488,720) (399,040) (575,540) 204,801 (780,341) 136% (603,841) 151% (399,040)

9 Private Finance required 1,152,340 1,242,020 (558,010) 566,566 (1,124,576) 202% 675,454 54% - 1,242,020



16

Section 3: Key Financial Performance Measures

Page

Financial Covenants 17

Key Ratios 19

Right to Buy 20

Cash flow Forecast 21


17

Financial Covenants


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 2017/18 is a maximum cash

flow deficit of £1,513,380. This new covenant figure has been agreed with our funders,

and will be confirmed in the next months. The covenant will be met in March 2018.

Interest Cover

Covenants for 2017/18 Deficit (£1,513,380)

Forecast to 31 March 2018 (£689,955)

Tolerance available £823,425

Reduction in expenditure required to achieve covenant £0


18

Annual Cash flow Deficit

Line Detail Current Position Forecast

Income £ £

1 Dwelling rents (net) 1,452,346 8,214,570

2 Non Dwelling rents (net) 6,063 13,200

3 Right to Buy Sales 445,200 1,242,985

4 Grant Funding 24,514 246,000

5 Other Income 9,642 44,450

6 Grant received for New Build 196,974 4,291,800

7 Sale of LIFT received - -

8 Grant on LIFT received 60,956 1,705,150

9 Insurance Receipts - 17,500

10 Total Income 2,195,694 15,775,655

Expenditure

13 Supervision & Management 361,226 2,700,380

14 Response Repairs 185,983 1,231,510

15 Estate Works 21,615 175,570

16 Planned/Cyclical Maintenance 121,732 645,710

17 Investment Programme 68,650 4,004,820

18 Office Alterations and IT 197 29,000

19 LIFT Costs 265,757 1,306,110

20 Opening Balances

21 Development Costs 558,739 5,919,860

22 Total Expenditure 1,583,898 16,012,960

23 Net Operating Cashflow 611,797 (237,305)

24 Interest Paid 43,638 457,650

25 Interest Collected (227) (5,000)

26 Total Interest 43,411 452,650

27 Annual Cashflow Surplus/(Deficit) 568,386 (689,955)

Interest Ratio 7% -191%

Covenant Requirement

Maximum Annual Cashflow deficit (1,513,380) (1,513,380)

Tolerance 2,081,766 823,425

-138% -54%


19

Financial Ratios


Key RatiosCurrent Forecast 2016/17

Current Ratio 9.24 9.24 6.14

(Current Assets/Current Liabilities)

Net Debt Per Unit

Borrowing/ stock units £2,279.98 £2,279.98 £2,314.89

Voids% 1.41% 1.96% 0.80%

Voids as % of Rental Income Due

Bad Debts % 0.05% 1.96% 0.80%

Bad Debts written off as % of Rental Income Due

Staff Cost/Turnover % 16.82% 18.89% 12.08%

Gross Surplus 50.51% 46.86% 24.28%

Operating Surplus/Turnover

Net Surplus 30.90% 23.06% 28.48%

Net Surplus/Turnover


20

Right to Buy


With the Right to Buy ending in 2016 the number of sales has been increasing. The average

receipts per month are forecast over 12 months however it is likely that receipts will

cease in a shorter time period. As this period becomes clearer the figures will be adjusted

accordingly.

The level of receipts is above forecast and the loss on sale of the assets is currently within

overall budget but is higher than budget YTD. Although sales are higher than estimated

high discounts have resulted in a loss YTD.

Right to buy receipts impact on the cash flow and therefore the covenants, so the critical

measure is the level of receipts rather than the profit or loss made on sale.

Right to Buy receipts £

Forecast for 2017/18 1,242,985

Average per month 103,582

Budgeted to 31 May 2017 207,164

Actual to May 2017 445,200

Less HAG to be repaid to Scottish

Government

0

Net Receipts 445,200

Receipts exceeding forecast 238,036

RIGHT TO BUY

Full Year Full Year Full Year to May

2015/2016 2015/2016 2016/2017 2017/2018

Number of applications received 54 63 79 n/a

Full Year Full Year Full Year to May

2015/2016 2015/2016 2016/2017 2017/2018

Number of sales 17 40 48 12

Cash Flow Forecast 2017/18

The above cash flow shows the actual income received and the payments made for the period to May’17 with projections for the remainder

of the year.

Monthly Cash Flow Forecast Version 1

Year Ended 30-Apr-17 31-May-17 30-Jun-17 31-Jul-17 31-Aug-17 30-Sep-17 31-Oct-17 30-Nov-17 31-Dec-17 31-Jan-18 28-Feb-18 31-Mar-18 Total

31-Mar-18 Month 1 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 2,909,082 3,473,789 3,634,328 4,642,740 4,246,317 4,444,902 4,313,588 4,225,789 4,215,635 4,096,136 4,120,825 4,216,963 3,124,861

Cash Receipts

Rent 632,160 749,718 440,288 512,448 1,039,353 723,144 696,221 622,390 611,137 712,143 627,093 607,828 7,973,922

Sale of Assets 378,020 149,610 728,915 - - - - - - - - - 1,256,545

Grant Income 758,153 187,538 24,521 242,995 244,477 244,477 243,741 242,995 171,658 168,720 168,720 2,783,880 5,481,876

Bank Interest - - - - - - - - - - - - -

Insurance Claims - - - - - - - - - - - - -

Other income 46,997 122,908 7,926 65,613 66,568 63,144 43,537 37,015 33,859 23,185 23,859 7,780 542,391

Loan/Other cash injection - - - - - - - - - - - - -

Total 1,815,329 1,209,775 1,201,649 821,056 1,350,398 1,030,766 983,498 902,400 816,655 904,048 819,672 3,399,488 15,254,734

Total Cash Available 4,724,411 4,683,563 4,835,978 5,463,796 5,596,715 5,475,668 5,297,086 5,128,190 5,032,289 5,000,184 4,940,498 7,616,451

Cash Paid Out

Payroll 118,798 121,462 123,978 124,209 124,209 124,209 124,209 124,209 124,209 124,209 124,209 124,209 1,482,121

Management Costs 117,702 42,185 24,494 64,880 64,880 114,880 64,880 64,880 114,880 64,880 64,880 64,880 868,300

Repairs 42,350 319,988 7,834 152,961 146,089 151,584 160,407 176,021 176,669 177,722 99,772 421,876 2,033,272

Investment 513,259 138,085 33,601 562,393 570,581 541,236 373,171 317,274 290,223 198,729 204,503 66,690 3,809,745

Development 398,735 427,159 1,996 230,171 230,171 230,171 230,171 230,171 230,171 230,171 230,171 3,797,820 6,467,077

- - - - - - - - - - - - -

Total 1,190,843 1,048,879 191,902 1,134,614 1,135,930 1,162,080 952,838 912,555 936,153 795,710 723,535 4,475,476 14,660,515

Cash Paid Out (Non P & L)

Loan Interest 59,779 356 1,336 82,865 15,883 - 118,459 - - 83,648 - 16,115 378,441

Transfer to Deposit Account - - - - - - - - - - - - -

Total 59,779 356 1,336 82,865 15,883 - 118,459 - - 83,648 - 16,115 378,441

Total Cash Paid out 1,250,622 1,049,235 193,238 1,217,479 1,151,812 1,162,080 1,071,297 912,555 936,153 879,359 723,535 4,491,591

Cash Position at End of Month 3,473,789 3,634,328 4,642,740 4,246,317 4,444,902 4,313,588 4,225,789 4,215,635 4,096,136 4,120,825 4,216,963 3,124,861 -

Deposit Acct At end of Month 3,750,137 3,750,137 3,750,137 3,750,137 3,750,137 3,750,137 3,750,137 3,750,137 3,750,137 3,750,137 3,750,137 3,750,137

Total Funds Available 7,223,926 7,384,465 8,392,877 7,996,453 8,195,039 8,063,725 7,975,926 7,965,771 7,846,273 7,870,962 7,967,100 6,874,998

Making our house your home

Dena Macleod 15-Jun-17

BOARD ITEM12

A&R ITEM 11

RULE CHANGE

Audit & Risk 27 June 2017 Board 28 June 2017


Purpose of Report

1.1 To consider a revised set of Partnership Rules for presentation to the Membership at a

Special General meeting for approval. The revised Rules ensure the governance

arrangements are appropriate for the future requirements of the business plan,

comply with Regulatory Standards and comply with the model rules as revised by

SFHA in 2015.

Summary

2.1 The Board considered amending the Rules at its meeting on 24 May 2017 to replace

Council appointed Board Members with Independent Board Members and agreed to

our lawyers being instructed to prepare a revised set of Rules on that basis.

2.2 The revised Rules showing the proposed changes are at Appendix 1 for consideration

and approval and a summary of each change and the reason for the change is at

Appendix 2.

2.3 The views of Western Isles Housing Association Communities Forum and the Comhairle

on the proposed changes have been obtained and are at Appendix 3.

Competence

3.1 The exercise will cost approximately £3,500 in fees and there will be a requirement for

a number of statutory meetings with members, and permissions obtained from

Scottish Housing Regulator, FCA and OSCR. Full details are at Paragraphs 5.1 to 8.2.

Recommendations

4.1 It is recommended that the:

a) Audit & Risk Committee consider the revised Rules and recommend approval to

the Board; and

b) Board:

i) Approve the revised Rules at Appendix 1;

ii) note the changes at Appendix 2;

iii) note the results of the consultation exercise at Appendix 3;

iv) approve the timetable and action plan at Appendix 4.

APPENDIX 1: Revised Rules

APPENDIX 2: Changes to Rules

APPENDIX 3: Consultation Results

APPENDIX 4: Timetable and Action Plan

Background Papers: Board Report on Rule Change presented on 24 May 2017

Writer of Report: Dena Macleod


Competence

Financial

5.1 The costs involved in amending the rules are estimated to be £3,500 which are mainly

legal and registration costs. There will be a cost to arranging the Special General

Meeting.

5.2 The costs can be met from the budgets for corporate legal fees and meetings.

Legal

6.1 Rule 21.1 to 23 and 88.1 to 88.3 make provision to change the Rules and call a Special

General Meeting.

6.2 Standing Orders 12.1 to 12.5 outline the role and remit of the Board which includes

“ensuring there is a balance of skills, experience and diversity of equality on the

Board”. Part 2 states changes in Rules are a matter reserved to the Board. Reviewing

the Rules is a referred function of the Audit & Risk Committee.

6.3 Approval for Rule changes is required from SHR, the FCA and OSCR.

6.4 The Office of National Statistics recently re-classified housing associations as public

bodies. The Scottish Government is currently drafting legislation to effectively reverse

the re-classification.

6.5 The Revised Rules at Appendix 1 have been prepared by our lawyers, Harper

Macleod.

Regulatory Guidance

7.1 The relevant Regulatory Standards are:

Standard 6

The Governing Body and senior officers have the skills

and knowledge they need to be effective

6.1 The RSL has a formal, rigorous and transparent process for the election,

appointment and recruitment of governing body members. The governing

body annually assesses the skills, knowledge and diversity it needs to provide

capable leadership, control and constructive challenge to achieve the RSL’s

purpose, deliver good tenant outcomes and manage its affairs.

6.2 The RSL plans effectively to achieve the appropriate and effective

composition and profile of governing body members through ongoing

performance evaluation and active succession planning. The governing body

is able to assure that any non-executive member seeking re-election after nine

years continuous service can demonstrate their continued effectiveness.

Risk

8.1 Governance of the Partnership is critical to its long term viability. Reviewing and

updating the Rules to allow for skills based appointments will reduce the risk of non

compliance with the Regulatory requirements.


Report Details

Background

9.1 At the meeting of the Board on 24 May 2017 the Board considered changing the

Rules for two reasons:

a) to ensure HHP would not be classified as a public body as a result of the ONS

reclassification of housing associations; and

b) the Board has the right mix of skills and experience to enable it to give effective

strategic direction and deliver good tenant outcomes.

ONS Re-classification

9.2 On 29 September 2016 the Office of National Statistics reclassified housing

associations in Scotland as public non-financial corporations and in response to this

the Scottish Government have put in place proposals to reverse this decision to

ensure that housing associations are classified as private bodies. The legislation to re

classify housing associations is currently planned to be presented to the Scottish

Parliament in September 2017.

9.3 The current view is that if Stock Transfer RSLs have more than 25% of their Board

Members who are Council appointed, this could be deemed as a public body having

a level of control over the RSL and therefore the RSL would be classified as a public

body.

9.4 Council appointed Board Members make up 36% of the Board Members (33% if all

positions were filled) so if our constitution is not changed we will be caught in the ONS

reclassification. So in spite of the legislation the Scottish Government are putting in

place to effectively reverse the reclassification, HHP would still be caught up in being

classified as a public body meaning our borrowing will be counted as public

borrowing and could have implications on our ability to draw down grants.

Position of the Comhairle

9.5 The proposed changes to the Rules have been discussed with the Comhairle and

their view is at Appendix 3 (to be updated to reflect their view).

Rule Change Proposals

9.6 The current structure is:

Board

4 Tenants

2 Lewis

1 Harris

1 Uist & Barra4 Community

4 Council Appointed

1 Board appointeed

2 co-optees


9.7 A number of different structures could be put in place:

Option Structure Comment

1 Reduce the number of Council

Appointed Board Members to 3

and increase either the Tenants or

Community Board Members from

4 to 5.

Whilst this option would address the

objective of not being caught in the

ONS reclassification it does not meet

the need of ensuring the appropriate

mix of skills on the Board and also

makes succession planning for Board

Members more challenging.

2 Replace the Council Appointed

Board Members with Community

Board Members.

As above.

3 Replace the Council Appointed

Board Members with Independent

Board Members.

This option addresses both the ONS

reclassification issue and should

provide the best opportunity to ensure

the appropriate mix of skills on the

Board and will assist in putting good

succession planning for Board

Members in place.

9.8 The Rules have been revised to reflect Option 3 and they have also been updated to

take account of the requirement of the 2015 Model Rules.

9.9 The changes to the Rules will also ensure that Comhairle members, if they meet the

criteria, are not prevented from standing for nomination under any of the three

categories.

.


APPENDIX 1-REVISED RULES

Model Rules 2013 (as amended)

These are the Rules

of

Hebridean Housing Partnership Limited

Based upon SFHA Charitable Model Rules (Scotland) 2013

(as amended 2015)

Registered under the Co-operative and Community Benefit Societies Act 2014

and the Housing (Scotland) Act 2010

Published by

the Scottish Federation of Housing Associations in co-operation with The Scottish Housing Regulator

3rd Floor, Sutherland House,

149 St Vincent Street, Glasgow, G2 5NW

Tel: 0141 332 8113 Fax: 0141 332 9684

Further guidance

Further Advice A separate document is also available from the SFHA Rules Service, which gives guidance on the use of these rules and the options. Advice is also available from staff at The Scottish Housing Regulator. Advice on the procedural aspects of making a Rule registration application or Rule Amendment application is also available from the SFHA Rules Service.

CONTENTS PAGE

ITEM Introduction:

- Name

- Objects

Membership

- Applying for membership

Ending your membership

Representing an Organisation

Share Capital

- Shares

- Transferring shares

Borrowing Powers

General Meetings

- Annual General Meeting

- Special General Meeting

- Notice of Meetings

Procedure at General Meetings

- Proxies/Representatives/Postal Votes

- Voting

Proceedings at General Meetings

The Board of Management

- Composition of the Board

- Interests

Electing and Appointing Board Members

- Co-optees

- Eligibility for the Board

Powers of the Board of

Management

Board Procedure

- Special Board Meetings

- Sub-committees

PAGE NO

1

1

3

4

4

57

8

10

11

13

16

17

ITEM The Secretary and Officer Bearers

- Role of the Chair

Financial Guarantees for Officers

The Board’s Minutes, Seal,

Registers and Books

- Minutes

- Execution of Documents and Seal

- Registers

- Registered Name

- Documentation

Accounts

The Auditor

Annual Returns and Balance Sheet

Surpluses and Donations

Investments

Inspecting the Register

Disputes

Statutory Applications to the Financial

Conduct Authority

Copies of Rules

Closing Down the Partnership

Changing the Rules

Interpreting these Rules

Appendices:

- Appendix 1: Proxy form

- Appendix 2: Cancellation of Proxy

Signatures of Board Members

PAGE NO

19

21

21

22

23

24

24

24

25

25

25

25

26

26

27

30

32

1

INTRODUCTION Name 1 The name of the Society shall be Hebridean Housing Partnership Limited (hereinafter

referred to as the “Partnership”).

Objects 2 The objects of the Partnership are: 2.1 to provide for the relief of those in need by reason of age, ill-health, disability, financial

hardship or other disadvantage through the provision, construction, improvement and management of land and accommodation and the provision of care; and

2.2 any other purpose or object permitted under Section 24 of the Housing (Scotland) Act 2010 which is charitable both for the purposes of Section 7 of the Charities and Trustee Investment (Scotland) Act 2005 and also in relation to the application of the Taxes Acts.

3 The permitted activities and powers of the Partnership will include anything which is necessary or expedient to help the Partnership achieve these objects. The Partnership will operate principally in the administrative area of Comhairle Nan Eilean Siar.

4.1 The Partnership shall not trade for profit and any profits shall only be applied for the purpose of furthering the Partnership’s objects and/or in accordance with these Rules.

4.2 Nothing shall be paid or transferred by way of profit to Members.

5 The registered office of the Partnership is at: Creed Court, Gleann Seileach Business Park, Willowglen, Stornoway, Isle of Lewis, HS1 2QP.

MEMBERSHIP

6 The Members of the Partnership shall be those persons or organisations who hold a

share in the Partnership and whose names are entered in the Register of Members.

2

Applying for Membership 7.1 7.2 7.2.1 7.2.2 7.3

The Board shall set, review and publish its membership policy for admitting new Members. There shall be two categories of membership, being: Tenant Members, which category shall be sub-divided into the following four sub-categories: 7.2.1.1 Lewis Tenant Members; 7.2.1.2 Harris Tenant Members; 7.2.1.3 Uist Tenant Members; and 7.2.1.4 Barra Tenant Members; and Community Members. No-one can be a Member in more than one category at any one time.

7.4 7.4.1 7.4.2 7.4.3

If you are applying for membership you must send a completed and signed application form and the sum of one pound (which will be returned to you if the application is not approved) to the Partnership’s registered office. Whilst it is the Partnership’s intention to encourage membership, the Board has absolute discretion in deciding on applications for membership and the following shall constitute grounds for refusal of an application for membership: Where membership would be contrary to the Partnership’s Rules or policies; Where a conflict of interest may exist which, even allowing for the disclosure of such an interest, may adversely affect the work of the Partnership; Where the Board considers that accepting the application would not be in the best interests of the Partnership.

7.5 Your application shall be considered by the Board as soon as reasonably practicable after its receipt by the Partnership. An application for membership will not be considered by the Board within the period of 14 days before the date of a general meeting. The Board has the power in its absolute discretion to accept or reject the application.

7.6 If the Board approves your application, you will immediately become a Member and your name and other necessary particulars will be included in the Register of Members within seven working days. You will then be issued one share in the Partnership.

7.7 For the avoidance of doubt, the Board shall have deemed to have admitted an Independent Board Member as a Member from the date on which he/she was appointed under Rule 40.5 and his/her name and other necessary particulars will be included in the Register of Members within seven working days.

8 You can apply for membership of the Partnership from the age of 16.

9 No Member can hold more than one share in the Partnership.

3

10 If you change your address, you must let the Partnership know by writing to the Secretary at the registered office within three months. This requirement does not apply if you are a tenant of the Partnership and have moved home by transferring your tenancy to another property owned and managed by the Partnership. Where any such transfer of tenancy results in a Tenant Member residing in a property which qualifies for a different Tenant Membership Category then the Member shall be deemed to have his/her category of membership altered accordingly.

ENDING YOUR MEMBERSHIP

11.1 Your membership of the Partnership will end and the Board will cancel your share and

record the ending of your membership in the Register of Members if:

11.1.1 You resign your membership giving seven days notice in writing to the Secretary at the Partnership’s registered office;

11.1.2 The Board reasonably believes that you have failed to tell the Partnership of a change of address as required by Rule 10;

11.1.3 If you are a Tenant Member and cease to be a tenant but meet the qualifying criteria to be a Community Member, you will automatically become a Community Member from the date on which your tenancy ends, and the Secretary will amend the Register of Members to reflect the change in your category of membership;

11.1.4 If you are a Community Member (including someone who has changed from being a Tenant Member in terms of Rule 11.1.3) and cease to have or maintain sufficient local connection with the Western Isles, we will end your membership and cancel your share;

11.1.5 For five annual general meetings in a row you have not attended, submitted apologies, exercised a postal vote or appointed a representative to attend and vote on your behalf by proxy;

11.1.6 The Partnership receives a complaint about your behaviour and two-thirds of the Members voting at a special general meeting agree to end your membership. The following conditions apply to this procedure:

11.1.6.1 the complaint must be in writing and must relate to behaviour which could harm the interests of the Partnership.

11.1.6.2 the Secretary must notify the Member of the complaint in writing not less than one calendar month before the meeting takes place;

11.1.6.3 the notice for the special general meeting will give details of the business for which the meeting is being called;

11.1.6.4 you will be called to answer the complaint at the meeting. The Members present will consider the evidence supporting the complaint and any evidence you decide to introduce;

11.1.6.5 the Members can vote in person or through a representative by proxy; 11.1.6.6 if you receive proper notice but do not go to the meeting without providing a

good reason, the meeting will go ahead without you and the Members will be entitled to vote to end your membership.

4

11.2

If your membership is ended in accordance with Rule 11.1.6, you will immediately cease to be a Member from the date that the resolution to end your membership was passed and any further application for membership by you will need to be approved by two-thirds of the Members voting at a general meeting.

REPRESENTING AN ORGANISATION

12.1 An organisation which is a Member is free to nominate any person it considers suitable

as its representative to the Partnership. That person will represent all of the organisation’s rights and powers at general meetings.

12.2 To confirm the identity of a representative, the organisation must send the Partnership a copy of the authorisation or appointment of an individual as a representative. This should be signed by a Director, Secretary or Authorised Signatory of the organisation which signature must be witnessed, or in the case of a local authority, by the Chief Executive, or properly authorised Officer of the local authority.

12.3 An organisation can change the identity of the person entitled to represent that organisation at any time by confirming the identity of the new representative in terms of Rule 12.2 and withdrawing the authority of the original representative.

12.4 If you are a representative in terms of Rule 12.2, of an organisation which is a Member, you cannot be a Member as an individual yourself. If you are already a Member as an individual when you start to represent an organisation which is a Member, the Partnership will suspend your membership as an individual, until such time as you are no longer a representative of an organisation which is a Member.

SHARE CAPITAL

Shares 13 The share capital of the Partnership will be raised by issuing one-pound shares to

Members. Shares cannot be held jointly. Joint tenants of the Partnership may each become individual Members.

14 There is no interest, dividend or bonus payable on shares.

Transferring Shares 15 You shall not be entitled to any property of the Partnership in your capacity as a

Member and your share is not withdrawable or transferable save in the circumstances set out in Rules 16 and 17.

16 You cannot sell your share but you can transfer it if the Board agrees.

17.1 If you die or end your membership or have your membership ended, or you are a representative of an organisation which no longer exists, the Board will cancel your share (except in those circumstances outlined in Rules 17.2 and 17.3) and the value of the share will then belong to the Partnership.

5

17.2 You can nominate the person to whom the Partnership must transfer your share in the Partnership when you die, as long as the person that you nominate is eligible for membership under these Rules and in terms of the Partnership’s membership policies. On being notified of your death, the Board shall transfer or pay the full value of your share to the person you have identified. Your nomination must be in the terms required by the Co-operative and Community Benefit Societies Act 2014.

17.3 If you die or become bankrupt and your personal representative or trustee in bankruptcy seeks to claim your share, the Board (to the extent that your personal representative or trustee in bankruptcy has right) will transfer or pay the value of your share in terms of your representative’s or trustee’s instructions.

BORROWING POWERS

18.1 The Partnership can borrow money as long as the total borrowing at any time is not

more than £200 million.

18.2 In respect of any proposed borrowing for the purposes of Rule 18.1, the amount remaining undischarged of any index-linked loan previously borrowed by the Partnership or any deep discounted security shall be deemed to be the amount needed to repay such borrowing in full if the pre-existing borrowing became repayable in full at the time of the proposed borrowing.

18.3 For the purposes of Rule 18.1 in respect of any proposed borrowing intended to be index-linked or on any deep discounted security the amount of borrowings shall be deemed to be the proceeds of such proposed borrowings that would be receivable by the Partnership at the time of the proposed borrowing.

18.4 The Partnership will not pay more than the market rate of interest as determined by the Board having regard to the terms of the loan on any money borrowed.

18.5 The Partnership will not accept money on deposit.

18.6

The Partnership can lend money to an organisation which is a subsidiary of the Partnership within the meaning of the Companies Act 2006 or the Co-operative and Community Benefit Societies Act 2014 at a market rate of interest as determined by the Board having regard to the terms of the loan. Where the Partnership is using a loan facility to on lend it must comply with the Regulatory Framework and Regulatory Guidance issued by The Scottish Housing Regulator from time to time.

18.7 The Partnership may borrow money from such lawful sources as is permitted by its Treasury Management Policy subject always to the requirement that the Partnership will comply with the Regulatory Framework and Regulatory Guidance issued by The Scottish Housing Regulator from time to time.

6

18.8 The Partnership shall have the power to enter into and perform a Rate Cap Transaction, or series of Rate Cap Transactions, or to enter into a Collar Transaction or series of Collar Transactions or to enter into an Interest Rate Swap Transaction or series of Interest Rate Swap Transactions (each a “Transaction”) where in relation to any such Transaction the following conditions are satisfied namely that: 18.8.1 the relevant instruments relate solely to amounts denominated in Sterling or, if

the Euro has been adopted as currency in the United Kingdom, its equivalent amount in Euros;

18.8.2 the relevant Transaction provides (in the case of an Interest Rate Swap Transaction) for the Partnership to undertake to pay a specified fixed rate on an applicable notional sum denominated in Sterling or, if the Euro has been adopted as currency in the United Kingdom, its equivalent amount in Euros, but not otherwise;

18.8.3 the relevant Transaction in the case of a Collar Transaction provides for the simultaneous buying of an instrument relating to a rate cap and the selling of an instrument providing for a floor at a lower strike price to such Cap;

18.8.4 any counterparty to the Transaction is one of the principal clearing banks in the

United Kingdom; 18.8.5 the Board or a duly authorised sub-committee established under the Rules

considers the entry by the Partnership into such Transaction to be in the best interests of the Partnership;

PROVIDED that at the time of entry into any Transaction the sum of the Calculation Amount of any Transaction previously entered into and remaining in effect, and the Calculation Amount of the proposed Transaction shall not exceed (a) the aggregate amount of the Partnership’s Variable Rate Borrowings either at the Effective Date or (b) having regard at the Effective Date to the Partnership’s obligations to repay Variable Rate Borrowings, the amount of Variable Rate Borrowings which will be outstanding at any time on or prior to the proposed Termination Date.

18.9 Before exercising its power under Rule 18.8 the Partnership shall obtain and consider proper advice on the question whether the Transaction is satisfactory having regard to: 18.9.1 the possible fluctuations in the rate of interest payable by the Partnership on its

Variable Rate Borrowings during the terms of the relevant Transaction;

18.9.2 the Partnership’s ability to meet its payment obligations under such Borrowings during the term of the relevant Transaction if such Transaction was or were not entered into;

18.9.3 the payment obligation under the relevant Transaction(s); 18.9.4 the terms and conditions of the relevant Transaction(s); and

18.9.5 the Partnership’s actual and projected annual income and expenditure position.

7

18.10 For the purposes of Rule 18.9 proper advice shall mean the advice of a person who is reasonably believed by the Board to be qualified by his/her ability in the practical experience of financial matters and the appropriate Transaction; such advice may be given by a person notwithstanding that he/she gives it in the course of his/her employment as an Officer.

18.11 A person entering into a relevant Transaction with the Partnership who has received a written certificate signed by the Secretary confirming the Partnership’s compliance with Rules 18.8 and 18.9 shall not be concerned to enquire further whether or not the Partnership has complied with the provisions of Rules 18.8 and 18.9 and such Transaction shall be valid at the date it is entered into and throughout its term in favour of such person (or any assignee or successor in title) whether or not the provisions of Rules 18.8 and 18.9 have been complied with.

18.12 For the purposes of this Rule 18: “Calculation Amount”, “Effective Date” “Floating Rate Payer”, “Term” and “Termination Date” have the respective meanings given in the 2000 International Swaps and Derivatives Association (ISDA) Definitions as amended from time to time; “Variable Rate Borrowings” mean any borrowing by the Partnership pursuant to Rule 18.1 in respect of which the rate of interest has not been fixed for a term in excess of twelve months and the term “fixed” shall exclude any borrowing where the rate of interest is indexed in accordance with a retail price index or other published index; “Rate Cap Transaction”, “Collar Transaction” and “Interest Rate Swap Transaction” mean respectively any transaction so designated within the meaning of the category “Swap Transaction” as defined in the 2000 ISDA Definitions as amended from time to time.

18.13 Subject to the foregoing provisions the Board can determine and change the conditions under which the Partnership borrows or lends money.

19. The Partnership shall not lend money to Members.

GENERAL MEETINGS Annual General Meeting 20. The Partnership will hold a general meeting known as the annual general meeting within

six months of the end of each financial year of the Partnership. The functions of the annual general meeting are to:

20.1 present the Chairperson’s report on the Partnership’s activities for the previous year;

20.2 present the accounts, balance sheet and auditor’s report; 20.3 elect Board Members. 20.4 appoint the auditor for the following year; and 20.5 consider any other general business included in the notice calling the meeting.

Special General Meeting

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21.1 All general meetings other than annual general meetings are known as special general meetings. The Secretary will call a special general meeting if:

21.1.1 the Board requests one; or 21.1.2 at least four Members request one in writing. If there are more than 40

Members, at least one-tenth of all the Members must ask for the meeting.

21.2 Whoever asks for the meeting must give the Secretary details of the business to be discussed at the meeting.

21.3 If a special general meeting is requested, the Secretary must within 10 days of having received the request give all Members notice calling the meeting. The meeting must take place within 28 days of the Secretary receiving the Members’ request. The Secretary should decide on a time, date and place for the meeting in consultation with the Board or the Chairperson, but if such consultation is not practicable the Secretary can on his/her own decide the time, date and place for the meeting.

21.4 If the Secretary fails to call the meeting within 10 days, the Board or the Members who requested the meeting can arrange the meeting themselves.

21.5 A special general meeting must not discuss any business other than the business mentioned in the notice calling the meeting.

Notice for Meetings 22.1 The Secretary will call all general meetings by written notice posted or sent by fax or

email to every Member at the address, fax number or email address given in the Register of Members at least 14 days before the date of the meeting. This notice will give details of:

22.1.1 the time, date and place of the meeting; 22.1.2 whether the meeting is an annual or special general meeting; 22.1.3 the business for which the meeting is being called.

22.2 The Board may ask the Secretary to include with the letter or send separately to

Members any relevant papers or accounts. If a Member does not receive notice of a meeting or papers relating to the meeting, this will not stop the meeting going ahead as planned. Each communication sent to a Member by post, addressed to his/her registered address, shall be deemed to have arrived 48 hours after being posted. Each communication sent to a Member by fax or email shall be deemed to have arrived on the day it is sent.

23 The proceedings of a meeting shall not be invalidated by the inadvertent failure of the Partnership to send a notice calling the meeting to any Member.

PROCEDURE AT GENERAL MEETINGS

24.1 For a meeting to take place there must be at least seven Members either present at the

venue or represented at the venue by a representative approved in terms of Rule 27.1. If there are more than 70 Members, at least one-tenth must either be present or represented at the venue by a representative in terms of Rule 27.1.

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24.2 If not enough Members are present in person or by representative within half an hour of the time the meeting was scheduled to start, the meeting shall be rescheduled to the same day the following week at the same time and at such place as may be fixed by the Chairperson of the meeting and announced at the meeting. There is no need to give notice to Members of the rescheduled meeting. If at that meeting there are not enough Members present in person or by representative at the scheduled starting time the meeting can still go ahead.

25 If a majority of Members present agree, the Chairperson of a meeting can adjourn the meeting. No business can be discussed at the adjourned meeting other than the business not reached or left unfinished at the original meeting. There is no need to give notice to Members of the adjourned meeting.

26.1 The Chairperson of the Board or in his/her absence the Vice-Chairperson will be Chairperson at all meetings of the Partnership. If there is no Chairperson or Vice-Chairperson present or neither is willing to act, the Members present must elect a Member of the Board to be Chairperson of the meeting. If no Board Members are present, the Members present must elect a Member to be Chairperson of the meeting.

26.2 If the Chairperson arrives later, after the meeting has commenced, he/she will take over as Chairperson of the meeting as soon as the current agenda item is concluded.

Proxies/Representatives/Postal Votes 27.1 To appoint a representative to vote on your behalf by proxy, you must let the

Partnership have a properly completed document in the form shown in Appendix 1. Your representative does not need to be a Member. The document must reach the Partnership at least five days before the meeting at which you want to be represented.

27.2 If there is any doubt about whether your representative has authority to vote, the Chairperson will decide and his/her decision will be final.

27.3 The maximum number of proxy votes that may be cast by any one person is 10.

27.4 To reverse your appointment of a representative, you must let the Partnership have a properly completed document in the form shown in Appendix 2. The document must be presented to the Partnership before the meeting at which you no longer want to be represented convenes. Alternatively, if you declare yourself present before the meeting convenes, the appointment of a representative to vote on your behalf will automatically fall.

27.5

The Chairperson will report to the meeting the details of any documents seeking to appoint a representative received but which are not valid. If you represent an organisation, your authorisation or appointment as a representative requires to be in accordance with the terms of Rule 12.2.

27.6 If there is to be an election of Tenant or Community Board Members at an annual general meeting, you can vote by post. Not less than 14 days before a meeting is held at which one or more Board Members will be elected, you will receive a ballot paper for the election. You can vote in the election by returning the ballot paper to the Secretary at least five days before the day of the meeting, or by bringing your ballot paper along to the meeting.

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Voting 28 If a decision of a meeting is put to the vote, the outcome will be determined by the

majority of those Members voting. Voting will be by a show of hands except where a poll is requested or required. Votes cannot be taken on resolutions which conflict with any provisions of these Rules or the law.

29.1 29.2

Where a vote is by a show of hands every Member present in person has one vote. Where a vote is by a poll every Member present in person or who has appointed a representative has one vote. Where an appointed proxy is present, and he/she advises the Chairperson, the Chairperson shall direct that the vote is by a poll. In relation to the election of Board Members, the vote is by a poll using the ballot paper issued to the Members prior to the meeting; votes received by post in advance of the meeting will be counted in the total number of votes at the meeting.

30 If there is an equal number of votes for and against a resolution, or in relation to the election of Board Members, the Chairperson will have a second and deciding vote. The Chairperson’s announcement of the decision of a vote will be final and conclusive. The decision is then recorded in the minutes of the meeting. There is no need to record the number of votes for or against the decision.

31.1 A poll can be required before or immediately after a vote by a show of hands, if at least one-tenth of the Members present at the meeting (in person or by proxy through a representative appointed in accordance with Rule 27.1) request this.

31.2 A poll must take place as soon as the Chairperson has agreed to it, in line with the Chairperson’s instructions. The result of the poll will stand as the decision of the meeting.

PROCEEDINGS AT GENERAL MEETINGS 32 All speakers must direct their words to the Chairperson. All Members must remain quiet

and orderly while this is happening.

33 You will not be allowed to speak more than once on any individual matter unless it is to explain something or ask for an explanation until every other Member has had the chance to speak. You will then have the opportunity to speak a second time on a matter but only if the Chairperson agrees. Where the Chairperson raised the matter for discussion initially, he/she shall be permitted to make a final reply on the matter.

34 The Chairperson will decide how long each speaker is allowed to speak, allowing equal time to each speaker.

35 If any point arises which is not covered in these Rules, the Chairperson will give his/her ruling. If the Chairperson’s ruling is challenged by more than one person, the Chairperson will step down and those present will decide the point raised on a majority vote. If the vote is tied, the Chairperson’s original ruling is carried.

36 Meetings must not last longer than two hours unless at least two-thirds of the Members present agree after the end of that time to continue the meeting.

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THE BOARD OF MANAGEMENT

Composition of the Board 37.1 The Partnership shall have a Board of Management which shall have a minimum of

seven and a maximum (including co-optees) of 15 persons. The Partnership shall keep up to date a register of the names of the Board Members which shall be made available to any person at no cost. The names of Board Members will also be published by the Partnership on its website, and in its annual reports and other similar documentation.

37.2 The composition of the Board shall include:

37.2.1 37.2.2 37.2.3

up to four Independent Board Members; up to four Tenant Board Members (made up in accordance with the provisions of Rule 37.3); and up to four Community Board Members.

37.3 Subject to the aftermentioned proviso, of the Tenant Board Members at any one time:

37.3.1 37.3.2 37.3.3

no more than two shall be Lewis Tenant Members; no more than one shall be a Harris Tenant Member; and no more than one shall be either a Uist Tenant Member or a Barra Tenant Member,

provided that, if there are fewer Tenant Members standing for election to any of the Tenant Board Membership Categories set out in Rules 37.3.1 to 37.3.3 above than the number of available places, then it shall be competent for a Tenant Member from another Tenant Membership Category who satisfies the criteria for election as a Tenant Board Member to be elected to fill the relevant place or places.

37.4 Rule 37.2 shall be subject to the overriding proviso that the members of any one Board Member Group shall at any time always be less than one half of those places on the Board which are filled at that time. Should any one Board Member Group (excluding co-optees) comprise one half or more of the filled Board places at any time, the Board will be under an obligation to take such steps as the Board considers appropriate to restore the balance of the Board’s composition so that the members of any one Board Member Group do not comprise one half or more than one half of the places on the Board which are filled. In fulfilling this obligation, the Board will initially seek to recruit new Board Members, and only if balance cannot be restored in this way will any Board Member be required to resign from the Board. Should any such resignation be required, the procedure for dealing with the same will be determined by the Board, but in so doing the Board will seek to avoid any disproportionate impact on any one Board Member Group, so far as is practicable.

37.5 A person must be aged 18 or over and a Member to become a Board Member (including any person appointed to fill a casual vacancy) other than:

37.5.1 a person appointed as a co-optee or appointed by The Scottish Housing Regulator who must be aged 18 or over but need not be a Member; or

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37.5.2 a person appointed as an Independent Board Member, who must be aged 18 or over and need not be a Member to be appointed as an Independent Board Member, but shall, upon appointment, become a Member in terms of Rule 7.

37.6 An employee of the Group (including the Partnership), or a Close Relative of any such employee, may not be a Board Member.

37.7 No Board Member may take office until they have agreed to and signed the Partnership’s code of conduct for Board Members.

37.8 The Board shall assess annually the skills, knowledge, diversity and objectivity that it needs for its decision making and what is contributed by the Board Members by way of annual performance reviews. The Board must be assured that any Board Member who has continuous service on the Board of nine years or more and who is seeking re-election or re-appointment is able to demonstrate his/her continued effectiveness as a Board Member before he/she may stand for re-election or re-appointment.

37.9 Each of the Board Members shall, in exercising his/her role as a Board Member, act in the best interests of the Partnership, its tenants and service users and will not place any personal or other interests ahead of his/her primary duty to the Partnership; and, in particular, must:

37.9.1 seek, in good faith, to ensure that the Partnership acts in a manner which is in accordance with its objects.

37.9.2 act with the care and diligence which it is reasonable to expect of a person who is managing the affairs of another person.

37.9.3 in circumstances giving rise to the possibility of a conflict of interest between the Partnership and any other party:

37.9.3.1 put the interests of the Partnership before that of the other party, in taking decisions as a Board Member;

37.9.3.2 where any other duty prevents him/her from doing so, disclose the conflicting interest to the Partnership and refrain from participating in any discussions or decisions involving the other Board Members with regard to the matter in question;

37.9.4 ensure that the Partnership complies with any direction, requirement, notice or duty imposed on it by the Charities and Trustee Investment (Scotland) Act 2005.

Interests 38.1 The Board shall set and periodically review its policy on payments and benefits. If a

person is a Member, employee of the Partnership or serves on the Board or any sub-committee he/she must not receive any payment or benefit unless it is permitted by the policy. In making any payment or conferring any benefit the Partnership shall act at all times with transparency, honesty and propriety.

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38.2 If a person serves on the Board or any sub-committee he/she must declare any personal or other external interests on an annual basis in accordance with the Partnership’s Code of Conduct for Board Members. If while serving on the Board that person has any conflict of interest in any contract or other matter about to be discussed at a meeting, he/she must tell the Board. He/she will be required to leave the meeting while the matter is discussed and will not be allowed to vote on the matter or to stay in the meeting while any vote on the matter is being held. If that person is inadvertently allowed to stay in the meeting and vote on the matter, his/her vote will not be counted.

38.3 If a person serves on the Board or any sub-committee he/she must not receive any payment or benefit unless it is permitted by the Charities and Trustee Investment (Scotland) Act 2005 and as set out in the Partnership’s policy referred to in Rule 38.1. He/she shall also comply with the requirements of the Charities and Trustee Investment (Scotland) Act 2005 in respect of any conflict of interest that might arise.

ELECTING AND APPOINTING BOARD MEMBERS

39.1 At the end of every annual general meeting, two Tenant Board Members and two

Community Board Members must retire. Anybody appointed as a co-optee under Rule 42.1 or to fill a casual vacancy under Rule 41 and who retires for that reason, shall not count towards the foregoing requirements. The retiring Board Members should be selected in accordance with Rule 39.2

39.2 The retiring Board Members should be those in their respective Board Member Groups who have served the longest on the Board since the date of their last election. If two or more Board Members within the same Board Member Group have served equally long and cannot agree who should retire, they must draw lots.

39.3 Board Members must also retire if they have been co-opted onto the Board under Rule 42.1 or have filled casual vacancies under Rule 41.

39.4 If a Board Member retires from the Board in terms of Rule 39 before or on the date of the next annual general meeting, that Board Member can stand for re-election without being nominated.

40.1 If, at the annual general meeting, the number of Tenant Members standing for election to a Tenant Board Membership Category is equal to the number of vacancies in that Tenant Board Membership Category in terms of Rule 37.3 the Chairperson will at the general meeting declare them to be elected without a vote.

40.2 If there are more Tenant Members standing for election to a Tenant Board Membership Category than there are vacant places in that Tenant Board Membership Category, then those present at the general meeting or those exercising a postal vote in accordance with Rule 27.6, who are entitled to vote, in terms of this Rule 40, will elect the Tenant Board Members for that Tenant Board Membership Category onto the Board in accordance with Rule 29.2. You must not give more than one vote to any one candidate.

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40.3 If, at the annual general meeting, the number of Community Members standing for election is equal to the number of Community Board Members to be elected in terms of Rule 37.2 the Chairperson will at the general meeting declare them to be elected without a vote. If there are more Community Members standing for election than there are vacant Community Board Member places then those present at the general meeting or those exercising a postal vote in accordance with Rule 27.6, will elect the Community Board Members onto the Board in accordance with Rule 29.2. You must not give more than one vote to any one candidate.

40.4 The Partnership will post or send by fax or email intimation of the intended date of the annual general meeting and information on the nomination procedure to each Member at the address, fax number or email address given in the Register of Members of the Partnership not less than 49 days before the date of the meeting. Tenant Members may only nominate other Tenant Members from the same Tenant Membership Category to which they belong. Nominations for election to the Board must be in writing and in the form specified by the Partnership and must give the full name, address and occupation of the Member being nominated. A Member cannot nominate himself/herself for election to the Board. Nominations must be signed by and include a signed statement from the Member being nominated to show that they are eligible to join the Board in accordance with Rules 37.7 and 43, and that they are willing to be elected. Nomination forms can be obtained from the Partnership and must be completed fully and returned by hand or by post to the Partnership’s registered office at least 35 days before the general meeting.

40.5 The Board will be entitled at any time to appoint up to four Independent Board Members to the Board. A person so appointed by the Board must be a person who the Board considers will enhance the skills, knowledge, diversity and/or objectivity of the Board and its decision-making. The manner of identifying, selecting and appointing Independent Board Members shall be determined by the Board from time to time. When appointing Independent Board Members the Board must determine the proposed duration of the appointment, which must be no longer than three years (but without prejudice to a retiring Independent Board Member being eligible to be re-appointed by the Board).

41 If an elected Board Member leaves the Board between the annual general meetings, this creates a casual vacancy and the Board can appoint a Member to take their place on the Board until the next annual general meeting.

Co-optees 42.1 The Board can co-opt to the Board or sub-committee anyone the it considers is suitable

to become a Board Member or member of a sub-committee. Co-optees do not need to be Members, but they can only serve as co-optees on the Board or sub-committee until the next annual general meeting or until removed by the Board. A person co-opted to the Board can also serve on any sub- committees.

42.2 A person appointed as a co-optee shall undertake the role of Board Member or member of a sub-committee and accordingly will be subject to the duties and responsibilities of a Board Member. Co-optees can take part in discussions at the Board or any sub-committees and vote at Board and sub-committee meetings on all matters except those which directly affect the Rules, the membership of the Partnership or the election of the Partnership’s Office Bearers. Co-optees may not stand for election, nor be elected as one of the Office Bearers of the Board.

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42.3 Board Members co-opted in this way must not make up more than one-third of the total number of the Board or sub-committee members at any one time. The presence of co-optees at Board Meetings will not be counted when establishing whether the minimum number of Board Members are present to allow the meeting to take place as required by Rule 48 and the presence of co-optees will not count towards the quorum for sub-committee meetings.

Eligibility for the Board 43.1 A person will not be eligible to be a Board Member and cannot be appointed or elected

as such if:

43.1.1 he/she has been adjudged bankrupt, has granted a trust deed for or entered into an arrangement with creditors or his/her estate has been sequestrated and has not been discharged;

43.1.2 he/she has been convicted of an offence involving dishonesty which is not spent by virtue of the Rehabilitation of Offenders Act 1974 or an offence under the Charities and Trustee Investment (Scotland) Act 2005;

43.1.3 he/she is a party to any legal proceedings in any Court of Law by or against the Partnership;

43.1.4 he/she is or will be unable to attend Board Meetings for a period of 12 months; 43.1.5 he/she has been removed from the Board of another registered social landlord

within the previous five years; 43.1.6 he/she has resigned from the Board in the previous five years in

circumstances where the resignation was submitted after the date of his/her receipt of notice of a special Board meeting convened to consider a resolution for his/her removal from the Board in terms of Rule 44.5;

43.1.7 he/she has been removed from the Board in terms of Rules 44.4 or 44.5 within the previous five years;

43.1.8 he/she has been removed, disqualified or suspended from a position of management or control of a charity under the provisions of the Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 or the Charities and Trustee Investment (Scotland) Act 2005;

43.1.9 he/she has been removed from the office of charity trustee or trustee for a charity by an order made by the Charity Commissioners for England and Wales or by Her Majesty’s High Court of Justice in England on the grounds of any misconduct in the administration of the charity for which he/she were responsible or to which he/she were privy, or which his/her conduct contributed to or facilitated;

43.1.10 a disqualification order or disqualification undertaking has been made against that person under the Company Directors’ Disqualification Act 1986 or the Company Directors Disqualification (Northern Ireland) Order 2002 (which relate to the power of a Court to prevent someone from being a director, liquidator or administrator of a company or a receiver or manager of company property or being involved in the promotion, formation or management of a company); or

43.1.11 at an annual general meeting, he/she has served as a Board Member for a continuous period of nine years or more and the Board has not resolved to permit him/her to stand again or otherwise be nominated for re-election.

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43.2 A person cannot be re-elected or re-appointed as a Board Member if the Board is not satisfied in terms of Rule 37.8 of the individual’s continued effectiveness as a Board Member. In these circustamces the Board must not allow the individual to stand for re-election or re-appointment.

44 A Board Member will cease to be a Board Member if:

44.1 he/she resigns his/her position as a Board Member in writing; 44.2 he/she ceases to be a Member unless he/she is a co-optee in terms of Rule

42.1 or an appointee of The Scottish Housing Regulator; 44.3 he/she misses four Board Meetings in a row without special leave of absence

previously being granted by the Board either at his/her request or by exercise of the Board’s discretion;

44.4 the majority of Members within the same Membership Category as the relevant Board Member voting at a general meeting decide this. The Members at the meeting within the relevant Membership Category may then elect someone else from that Membership Category to take his/her place. If a replacement is not elected at the meeting, the Board may appoint a Board Member in terms of Rule 41;

44.5 the majority of those remaining Board Members present and voting at a special meeting of the Board convened for the purpose decide to remove him/her as a Board Member. The resolution to remove him/her as a Board Member must relate to one of the following issues:

44.5.1

failure to perform to the published standards laid down by the Scottish Federation of Housing Partnerships and/or The Scottish Housing Regulator adopted and operated by the Partnership;

44.5.2 failure to sign or failure to comply with the Partnership’s code of conduct for Board Members; or

44.5.3 a breach of the Partnership’s Rules, standing orders or other policy requirements;

44.6 he/she becomes ineligible as a Board Member in terms of Rule 43; 44.7 he/she is a co-optee whose period of office is ended in accordance with Rules

39.1 or 42.1; 44.8 he/she is a Board Member retiring in accordance with Rule 39.1; or 44.9 he/she is an Independent Board Member and the period of their appointment

as determined by the Board in accordance with Rule 40.5 comes to an end.

POWERS OF THE BOARD OF MANAGEMENT

45 The Board is responsible for directing the affairs of the Partnership and its business and may do anything lawful which is necessary or expedient to achieve the objects of the Partnership. The Board is not permitted to exercise any powers which are reserved to the Partnership in general meetings either by these Rules or by statute. The Board is responsible for the leadership, strategic direction and control of the Partnership with the aim of achieving good outcomes for its tenants and other service users in accordance with the Regulatory Standards and Regulatory Guidance issued by The Scottish Housing Regulator from time to time.

46 The Board acts in the name of the Partnership in everything it does. A third party acting in good faith and without prior notice does not need to check if the powers of the Board have been restricted, unless they are already aware that such a restriction may exist.

47 Amongst its most important powers, the Board can:

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47.1 buy, sell, build upon, lease or exchange any land and accept responsibility for any related contracts and expenses;

47.2 agree the terms of engagement and remuneration of anyone employed in connection with the business of the Partnership and act as employer for anyone employed by the Partnership;

47.3 grant heritable securities over land owned by the Partnership and floating charges over all or any part of property and assets both present and in future owned by the Partnership. This includes accepting responsibility for any related expenses;

47.4 decide, monitor and vary the terms and conditions under which property owned by the Partnership is to be let, managed, used or disposed of;

47.5 appoint and remove solicitors, surveyors, consultants, managing agents and employees, as required by the Partnership’s business;

47.6 refund any necessary expenses as are wholly necessary incurred by Board Members and sub-committee members in connection with their duties;

47.7 compromise, settle, conduct, enforce or resist either in a Court of Law or by arbitration any suit, debt, liability or claim by or against the Partnership;

47.8 accept donations in support of the activities of the Partnership.

BOARD PROCEDURE

48 It is up to the Board to decide when and where to hold its ordinary meetings, but it must

meet at least six times a year. There must be at least four Board Members present for the meeting to take place. For the meeting to take place the Board Members present must represent at least two Board Member Groups.

49 The Board will continue to act while it has vacancies for Members. However, if at any time the number of Board Members falls below seven, the Board can continue to act only for another two months. If at the end of that period the Board has not found new Members to bring the number of Board Members up to seven, the only power it will have is to act to bring the number of Board Members up to seven.

50 Board Members must be sent written notice of Board meetings posted, or delivered, by hand or sent by fax or email to the last such address for such communications given to the Secretary at least seven days before the date of the meeting. The accidental failure to give notice to a Board Member or the failure of the Board Member to receive such notice shall not invalidate the proceeding of the relevant meeting.

51 Board Meetings can take place in any manner which permits those attending to hear and comment on the proceedings.

52 All speakers must direct their words to the Chairperson. All Board Members must remain quiet and maintain order while this is happening. The Chairperson will decide who can speak and for how long.

53 If any point arises which is not covered in these Rules, the Chairperson will give his/her ruling which will be final.

54 All acts done in good faith as a result of a Board Meeting or sub-committee meeting will be valid even if it is discovered afterwards that a Board Member was not entitled to be on the Board.

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55 A written resolution signed by not fewer than three-quarters of the Board Members or three quarters of the members of a sub-committee will be as valid as if it had been passed at a Board Meeting or sub-committee meeting duly called and constituted.

Special Board Meetings 56.1 The Chairperson or two Board Members can request a special meeting of the Board by

writing to the Secretary with details of the business to be discussed. The Secretary will send a copy of the request to all Board Members within three working days of receiving it. The meeting will take place at a place mutually convenient for the majority of Board Members, normally the usual place where Board Meetings are held, between 10 and 14 days after the Secretary receives the request.

56.2 No other business may be discussed at the meeting other than the business for which the meeting has been called.

56.3 If the Secretary does not call the special meeting as set out above, the Chairperson or the Board Members who request the meeting can call the meeting. In this case, they must write to all Board Members at least seven days before the date of the meeting.

57 If a Board Member does not receive notice of the meeting, this will not prevent the meeting going ahead.

Sub-committees 58.1 The Board can delegate its powers to sub-committees or to staff or to Office Bearers.

The Board will establish the terms of reference for such delegation, which will be set down in writing and communicated to the recipient of the delegated powers. Such delegation will be set out down in writing in standing orders, schemes of delegated authority or other appropriate documentation. In the case of a sub-committee such delegation shall include the purposes of the sub-committee, its composition and quorum for meetings. A minimum number of members for a sub-committee shall be three. There must be at least three of the members of a sub-committee present for the meeting to take place. The Board shall be responsible for the on-going monitoring and evaluation of the use of delegated powers.

58.2 The meetings and procedures of sub-committees or otherwise must comply with the relevant terms of reference.

58.3 Any decision made by sub-committee must be reported to the next Board Meeting.

58.4 The Board can establish and delegate powers to sub-committees, designated as Area Committees, to take decisions relating to the management and maintenance of properties within a particular geographical area. The Board will determine the membership and delegated responsibility of an Area Committee in its terms of reference. An Area Committee shall exercise such delegated powers notwithstanding the provisions of Rules 42.1 and 42.3 which provisions shall not apply to Area Committees.

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THE SECRETARY AND OFFICE BEARERS

59.1 The Partnership must have a Secretary, a Chairperson and any other Office Bearers the

Board considers necessary. The Office Bearers, except for the Secretary, must be elected Board Members and cannot be co-optees. An employee may hold the office of Secretary although not be a Board Member. The Board will appoint these Office Bearers. If the Secretary cannot carry out his/her duties, the Board, or in an emergency the Chairperson, can ask another Office Bearer or employee to carry out the Secretary’s duties until the Secretary returns.

59.2 The Secretary and the other Office Bearers will be controlled, supervised and instructed by the Board.

59.3 The Secretary’s duties include the following (these duties can be delegated to an appropriate employee with the Secretary assuming responsibility for ensuring that they are carried out in an effective manner):

59.3.1 calling and going to all meetings of the Partnership and all the Board Meetings;

59.3.2 keeping the minutes for all meetings of the Partnership and Board; 59.3.3 sending out letters, notices calling meetings and relevant documents to

Members before a meeting; 59.3.4 preparing and sending all the necessary reports to the Financial Conduct

Authority and The Scottish Housing Regulator; 59.3.5 ensuring compliance with these Rules; 59.3.6 keeping the Register of Members and other registers required under these

Rules; 59.3.7 supervision of the Partnership’s seal; 59.3.8 keeping all the books of accounts and receiving all contributions and

payments owned to the Partnership; and 59.3.9 paying over the contributions and payments received by the Partnership as

instructed by the Board.

59.4 The Secretary must produce or give up all the Partnership’s books, registers, documents and property whenever requested by a resolution of the Board, or of a general meeting.

59.5 At its first meeting after registration of the Partnership, the Board will elect the Chairperson of the Partnership. Thereafter a Chairperson will be appointed on an annual basis at the next scheduled Board Meeting held after each annual general meeting. Role of the Chair The Chairperson is responsible for the leadership of the Board and ensuring its effectiveness in all aspects of the Board’s role and to ensure that the Board properly discharges its responsibilities as required by law, the Rules and the standing orders of the Partnership. The Chairperson will be delegated such powers as is required to allow the Chairperson to properly discharge the responsibilities of the office. Among the responsibilities of the Chairperson are that:-

59.5.1 the Board works effectively with the senior staff;

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59.5.2 an overview of business of the Partnership is maintained;

59.5.3 the Agenda for each meeting is set;

59.5.4 meetings are conducted effectively;

59.5.5 minutes are approved and decisions and actions arising from meetings are

implemented;

59.5.6 the standing orders, code of conduct for Board Members and other relevant

policies and procedures affecting the governance of the Partnership are

complied with;

59.5.7 where necessary, decisions are made under delegated authority for the

effective operation of the Partnership between meetings;

59.5.8 the Board monitors the use of delegated powers;

59.5.9 the Board receives professional advice when it is needed;

59.5.10 the Partnership is represented at external events appropriately;

59.5.11 appraisal of the performance of Board Members is undertaken, and that the

senior staff officer’s appraisal is carried out in accordance with the agreed

policies and procedures of the Partnership; and

59.5.12 the training requirements of Board Members, and the recruitment and

induction of new Board Members is undertaken.

59.6 The Chairperson must be elected from the Board Members (excluding co-optees) and must be prepared to act as Chairperson until the end of the next annual general meeting (unless he/she resigns the post). The Chairperson can only be required to resign if a majority of the remaining Board Members present at a special meeting agree to this.

59.7 If the Chairperson is not present at a Board meeting or is not willing to act, the Board Members present will elect another Board Member to be Chairperson for the Board Meeting. If the Chairperson arrives at the meeting late, he/she will take over as Chairperson of the Board meeting as soon as the current agenda item is concluded.

59.8 If the votes of the Board Members are divided equally for and against an issue, the Chairperson will have a second and deciding vote.

59.9 The Chairperson can resign his/her office in writing to the Secretary and must resign if he/she leaves the Board or is prevented from standing for, or being elected to the Board under Rule 43. The Board will then elect another Board Member as Chairperson.

59.10 The Chairperson can be re-elected but must not hold office continuously for more than five years.

FINANCIAL GUARANTEES FOR OFFICERS

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60.1 The Board shall take out fidelity guarantee insurance to cover all Office Bearers and employees who receive or are responsible for the Partnership’s money, or, these office bearers and employees must be covered by a bond as set out in Schedule 1 of the Co-operative and Community Benefit Societies Act 2014, or a guarantee under which they promise to account for and repay money due to the Partnership accurately.

60.2 The Board shall have the power to purchase and maintain indemnity insurance for, or for the benefit of, persons who are, or were at any time, Board Members, officers or employees of the Partnership. A Board Member may form part of a quorum and vote at a meeting where such insurance is under consideration notwithstanding the terms of Rules 38.1 and 38.2.

61 Office Bearers and employees will not be responsible for the Partnership’s loss while they are carrying out their duties unless there has been gross negligence or dishonesty. If an Office Bearer or employee is dishonest, the Partnership will try to recover any loss that it has suffered and may alert the police or other relevant authority.

THE BOARD’S MINUTES, SEAL, REGISTERS AND BOOKS

Minutes 62 Minutes of every general meeting, Board Meeting and sub-committee meeting must be

kept. Those minutes must be presented at the next appropriate meeting and if accepted as a true record, signed by the Chairperson of the meeting at which they are presented. All minutes signed by the Chairperson of the meeting shall be conclusive evidence that the minutes are a true record of the proceedings at the relevant meeting.

Execution of Documents and Seal 63 The Partnership shall execute deeds and documents in accordance with the provisions

of the Requirements of Writing (Scotland) Act 1995 and record the execution in the register. The use of a common seal is not required. The Partnership may have a seal which the Secretary must keep in a secure place unless the Board decides that someone else should look after it. The seal must only be used if the Board decides this. When the seal is used, the deed or document must be signed by the Secretary or a Member of the Board or another person duly authorised to subscribe the deed or document on the Partnership’s behalf and recorded in the register.

Registers 64 The Partnership must keep at its registered office a Register containing:

64.1 the names and addresses of the Members and where provided for the

purposes of electronic communication, fax numbers and email addresses; 64.2 a statement of the share held by each Member and the amount each Member

paid for it; 64.3 the date each person was entered in the Register as a Member and the date

at which any person ceased to be a Member of the Partnership; 64.4 a statement of other property in the Partnership, whether in loans or loan

stock held by each Member; and

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64.5 the names and addresses of the Office Bearers of the Partnership, their positions and the dates they took and left office.

65.1

The Partnership must also keep at its registered office:

65.1.1 a second copy of the Register showing the same details as above but not the statements of shares and property. This second register must be used to confirm the information recorded in the original Register;

65.1.2 a register of loans and to whom they are made; and 65.1.3 a register showing details of all loans and charges on the Partnership’s land.

65.2 The inclusion or omission of the name of any person from the original Register of

Members shall, in the absence of evidence to the contrary, be conclusive that the person is or is not a Member of the Partnership.

Registered Name 66 The registered name of the Partnership must be clearly shown on the outside of every

office or place where the Partnership’s business is carried out. The name must also be engraved clearly on the Partnership’s seal and printed on all its business letters, notices, adverts, official publications, website and legal and financial documents.

Documentation 67 The Partnership’s books of account, registers, securities and other documents must be

kept at the registered office or any other place the Board decides is secure.

68 At the last Board Meeting before the annual general meeting, the Secretary must confirm in writing to the Board that Rules 62 to 67 have been followed or, if they have not been followed, the reasons for this. The Secretary’s confirmation or report must be recorded in the minutes of the Board Meeting.

ACCOUNTS 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.

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 it has 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.

71 The Partnership must provide The Scottish Housing Regulator and the Financial Conduct 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.

THE AUDITOR

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72.1 Each year the Partnership must appoint, at a general meeting of the Partnership, a qualified auditor to audit the Partnership’s accounts and balance sheet. In this Rule “qualified auditor” means someone who is a qualified auditor under Section 91 of the Co-operative and Community Benefit Societies Act 2014.

72.2 None of the following can act as auditor to the Partnership:

72.2.1 a Board Member or employee of the Partnership; 72.2.2 a person who is a partner of, or an employee or employer of a Board Member

or employee of the Partnership; 72.2.3 an organisation which is a Member of the Partnership.

73 The Partnership must appoint an auditor within three months of being registered by the

Financial Conduct Authority. The Board will appoint the auditor unless there is a meeting of the Partnership within that time. The Board may appoint an auditor to fill in a casual vacancy occurring between general meetings of the Partnership. The Board shall take such steps as it considers necessary to ensure the continuing independence of the Partnership’s auditor including the periodic review of the need for audit rotation. The Partnership must send a copy of its accounts and the auditor’s report to The Scottish Housing Regulator within six months of the end of the period to which they relate.

74.1 An auditor appointed to act for the Partnership one year will be re-appointed for the following year unless:

74.1.1 a decision has been made at a general meeting to appoint someone else or specifically not to appoint them again; or

74.1.2 they have given the Partnership notice in writing that they do not want to be re-appointed; or

74.1.3 they are not a qualified auditor or are excluded under Rule 72.2; or 74.1.4 they are no longer capable of acting as auditor to the Partnership; or 74.1.5 notice to appoint another auditor has been given.

74.2 To prevent an auditor being re-appointed or to appoint another person as auditor, not

less than 28 days notice must be given to the Partnership that the matter requires to be discussed at the next meeting of the Partnership.

74.3 The Partnership shall give notice to the auditor who is to be asked to step down that the matter will be discussed at the next meeting of the Partnership. If possible the Partnership will also give proper notice of this matter to the Members but if this is not possible, the Partnership can give notice by advertising in the local newspaper at least 14 days before the meeting.

74.4 The retiring auditor may make representations to the Partnership or give notice that he/she intends to make representations at the meeting and the Partnership must tell the Members of any representations made by the auditor under Section 95 of the Co-operative and Community Benefit Societies Act 2014 .

ANNUAL RETURNS AND BALANCE SHEET

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75.1 Every year, within the time allowed by the law, the Secretary shall send to the Financial Conduct Authority the annual return in the form required by the Financial Conduct Authority.

75.2 The Secretary must also send:

75.2.1 a copy of the auditor’s report on the Partnership’s accounts for the period covered by the return; and

75.2.2 a copy of each balance sheet made during that period and of the auditor’s report on that balance sheet.

76 The Partnership must provide a free copy of the latest annual return and auditor’s reports to Members or people with a financial interest in the Partnership.

77 The Partnership must always keep a copy of the latest balance sheet and auditor’s report publicly displayed at its registered office.

78 The Partnership must comply with the requests of The Scottish Housing Regulator for annual returns.

SURPLUSES AND DONATIONS

79.1 The Partnership must not distribute its surpluses to Members.

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.

INVESTMENTS

80 The Partnership’s funds may be invested by the Board in such manner as is permitted

by its Investment Policy subject always to the requirement that the Partnership will comply with the Regulatory Framework and Regulatory Guidance issued by The Scottish Housing Regulator from time to time.

INSPECTING THE REGISTER

81 Any Member or person having a financial interest in the Partnership can inspect their

own account. They may also inspect the second copy of the Register of Members which shall be made available to them for inspection within seven days of the request of a Member or eligible person. The books must be available for inspection at the place they are kept at all reasonable hours. The Board may set conditions for inspecting the books. The Partnership will also maintain a register of the names of those Members who have given consent for this purpose which shall be made available for inspection within seven days of the request of any person.

DISPUTES 82 Every dispute between the Partnership or the Board and:

82.1 a Member; or

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82.2 a person aggrieved who has ceased to be a Member within the previous six months; or

82.3 a person claiming under the Rules of the Partnership,

shall be dealt with in accordance with these Rules and any procedures determined by the Board from time to time but without prejudice to all rights which any person may have to raise an action on the matter in any court with competent jurisdiction, including without prejudice the Sheriff Court in the Sheriffdom in which the Partnership's registered office is located.

STATUTORY APPLICATIONS TO THE FINANCIAL CONDUCT

AUTHORITY 83 Any 10 Members of the Partnership who have been Members for at least the 12

previous months can apply to the Financial Conduct Authority to appoint an accountant or actuary to inspect and report on the Partnership’s books on payment to the Financial Conduct Authority of the costs required.

84.1 One-tenth of Members can apply to the Financial Conduct Authority to:

84.1.1 appoint an inspector to examine and report on the affairs of the Partnership; or

84.1.2 call a special general meeting of the Partnership.

84.2 If there are more than 1000 Members in the Partnership, only 100 Members need to apply to the Financial Conduct Authority in terms of Rule 84.1.

COPIES OF RULES 85 The Secretary shall, on demand, provide a copy of the Rules of the Partnership free of

charge to any Member who has not previously been given a copy and, upon payment of such fee as the Partnership may require, not exceeding the amount specified by law, to any other person.

CLOSING DOWN THE ASSOCIATION

86.1 The Partnership may be closed down in either of the following ways:

86.1.1 by an order or resolution to wind up the Partnership as set out in the

Insolvency Act 1986 and/or Section 105 of the Housing (Scotland) Act 2010; or

86.1.2 in accordance with Section 119 of the Co-operative and Community Benefit Societies Act 2014 , by an instrument of dissolution to which not less than three-fourths of the Members have given their consent testified by their signatures to the instrument.

26

86.2 The prior approval of the Office of the Scottish Charity Regulator is required before the Partnership can be dissolved. The Partnership must submit its application for approval to the Office of the Scottish Charity Regulator not less than 42 days before the date on which the Partnership intends to dissolve.

87 If any property remains after the Partnership has paid its debts, this property will be transferred to such other charitable registered social landlord as determined by The Scottish Housing Regulator.

CHANGING THE RULES 88.1 Any of these Rules can be changed or deleted and new Rules can be introduced if:

88.1.1 three-quarters of the votes at a special general meeting are in favour of the

change(s); and 88.1.2 The Scottish Housing Regulator has approved the change(s).

88.2 Where an amendment of these Rules affects the purposes of the Partnership the prior

approval of the Office of the Scottish Charity Regulator is required. The Partnership must submit its application for approval to the Office of the Scottish Charity Regulator not less than 42 days before the date on which the Partnership intends to amend its purposes. Any other amendment of these Rules requires to be notified to them within three months of the change having been made.

88.3 The Partnership must apply to the Financial Conduct Authority to register every rule change as set out in treasury regulations. Each Member must receive a copy of the change. No change is valid until it has been registered by the Financial Conduct Authority.

88.4 The Partnership can change its name if:

88.4.1 three-quarters of the votes at a special general meeting are in favour of the change; and

88.4.2 the Financial Conduct Authority approves the change in writing. 88.4.3 the Office of the Scottish Charity Regulator has given its prior approval. The

Partnership must submit its application for approval to the Office of the Scottish Charity Regulator not less than 42 days before the date on which the Partnership intends to change its name.

88.5 If the Partnership changes its name in terms of Rule 88.4 it must inform The Scottish Housing Regulator in writing within 14 days.

88.6 The Partnership can change its registered office but must:

88.6.1 notify The Scottish Housing Regulator and the Financial Conduct Authority of the change in registered office within seven working days of the decision having been made; and

88.6.2 notify the Office of the Scottish Charity Regulator within three months of the change having been made.

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INTERPRETING THESE RULES

89.1 In these Rules, the following words and phrases have the meanings given below:

89.1.1 “A person claiming through a Member” includes an heir executor assignee or

nominee. This heading would be used in connection with disputes about the transfer of a Member’s share after his death. It would also cover executors of a former Member.

89.1.2 “Barra Tenant Member” means a Tenant Member residing in the geographical area of Barra.

89.1.3 89.1.4 89.1.5

“Board” means the Board of Management appointed in line with Rule 38. “Board Meeting” means a meeting of the Board. “Board Member” means a member of the Board.

89.1.6 “Board Member Group” means either (a) the total number of Tenant Board members on the Board at any time, called the Tenant Board Member Group; (b) the total number of Community Board Members on the Board at any time, called the Community Board Member Group; or (c) the total number of Independent Board Members on the Board at any time called the Independent Group;

89.1.7 “Chairperson” means the Chairperson of the Partnership referred to in Rule 59.1.

89.1.8 “Close Relative” means someone who is the spouse or civil partner of a person, or (being either of the same or different sex) who cohabits with that person, or is that person’s parent, grandparent, child, stepchild, grandchild, brother or sister.

89.1.9 “Community Board Member” means a Board Member elected from the category of Community Members.

89.1.10 89.1.11

“Community Member” means a Member of the Partnership who is a resident member of the community of the Western Isles and who is not a tenant of the Partnership and shall include any member of an organisation (other than the Council ) in terms of Rule 12. “Council” means Comhairle Nan Eilean Siar or any statutory successor to that body which is responsible as local authority for the Western Isles administrative area (or, if there is more than one such successor body, the body responsible for the housing function) and “Councillor” is an elected member of the Council.

89.1.13

“Financial Conduct Authority” means the registering authority for societies registered under the Co-operative and Community Benefit Societies Act 2014 and the Credit Unions Act 1979 set up in terms of the Financial Services Act 2012 or its successor body.

89.1.14 “Group” means the Partnership and any organisation which is its parent, its subsidiary or is a subsidiary of its parent.

89.1.15 89.1.16 89.1.17

“Harris Tenant Member” means a Tenant Member residing in the geographical area of Harris. “Independent Board Member” means a Member who is appointed to the Board pursuant to Rule 40.5; “Lewis Tenant Member” means a Tenant Member residing in the geographical area of Lewis.

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89.1.18 89.1.19

“Member” means a member of the Partnership whose name is entered in the Register of Members. “Membership Category” means any of the categories of membership of the Partnership as set out in Rule 7.2.

89.1.20 “Office Bearer” means the Chairperson, Secretary, and such other Officer Bearer appointed under Rule 59.1.

89.1.21 “Office of the Scottish Charity Regulator” means the body set up under the Charities and Trustee Investment (Scotland) Act 2005 to regulate charities in Scotland.

89.1.22 “organisation” means a legal body which exists separately and distinctly from its members and includes companies, building societies, community benefit societies, local authorities and so on and also for the purposes of these Rules includes unincorporated organisation such as social clubs, branches of political parties or trade unions and other voluntary bodies.

89.1.23 89.1.24

“Partnership” means the registered social landlord referred to in Rule 1 whose Rules these are. “property” includes everything which can be passed on by inheritance (including loans, certificates, books and papers).

89.1.25 “Register of Members” means the register of members referred to in Rule 64. 89.1.26 “Rules” means the registered Rules of the Partnership.

“Secretary” means the Office Bearer appointed by the Board to be the Secretary of the Partnership or anyone authorised by the Board to stand in for the Secretary.

89.1.27 “Taxes Acts” means Part 11 of the Corporation Tax Act 2010 as read with Schedule 6 of the Finance Act 2010 and any statute or statutory provision which amends, extends, consolidates or replaces the same.

89.1.28 89.1.29 89.1.31 89.1.32 89.1.33 89.1.34

“Tenant Board Member” means a Board Member elected from any one category of Tenant Members and included within the Tenant Board Member Group. “Tenant Board Membership Categories” means the three categories of Tenant Board Membership representing the geographical areas of (a) Lewis, (b) Harris, and (c) the Uists and Barra respectively and Tenant Board Membership Category shall be any one of these. “Tenant Member” means any person who is from time to time a tenant under a lease entered into with the Partnership and is a Member. “Tenant Membership Categories” means the four categories of tenant membership representing the geographical areas of (a) Lewis, (b) Harris, (c) the Uists and (d) Barra respectively and as referred to in Rule 7.2 and Tenant Membership Category shall be any one of these. “The Scottish Housing Regulator” means The Scottish Housing Regulator as established pursuant to Section 1 of the Housing (Scotland) Act 2010. “The Western Isles” means that local government administrative area for which the Council have responsibility.

89.1.35 “Uist Tenant Member” means a Tenant Member residing in the geographical areas of the Uists.

89.1.36 “Vice-Chairperson” means the vice-chairperson appointed in terms of the Partnership's standing orders.

89.1.37 Words in the singular also include the plural. Words in the plural also include the singular.

89.1.38 A reference to law or statute is a reference to that law or statute as re-enacted, amended or replaced.

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89.2 In the event of Sterling joining the Euro any sums of money referred to in Sterling in these Rules shall be redenominated into Euros at the rate of exchange applying for such redenomination as at the date of joining the Euro.

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APPENDIX 1

PROXY FORM You must use the wording shown below to appoint a representative to vote at a meeting for you. Please see Rule 27.1 for more details. I (insert name) am a member of (insert name) ______________ Limited. My address is: (please insert). I hereby appoint (insert name) who lives at (insert address) to be my representative and vote for me at the Partnership’s meeting on (insert date) and any other dates that meeting continue on.

Your name

Your signature

Date

31

APPENDIX 2

CANCELLATION OF PROXY You must use the wording shown below to reverse your application to send a representative to vote at a meeting for you. Please see Rule 27.4 for more details. I (insert name) am a member of (insert name) ______________ Limited. My address is: (please insert). I hereby revoke the appointment of (insert name) as my representative to vote for me at the Partnership’s meeting on (insert date) made by me on the (insert date). I no longer authorise the person referred to above to represent me at the meeting referred to above.

Your name

Your signature

32

SIGNATURE OF BOARD MEMBERS

Date

1.

2.

3.

4.

Members

5.

6.

7.

Secretary

CO-OPERATIVE AND COMMUNITY BENEFIT SOCIETIES ACT 2014

Registration Number R

Limited has today been registered

under

the Co-operative and Community Benefit Societies Act 2014.

Date


APPENDIX 2-CHANGES TO RULES

Rule

number

Reason for

amendment

Comment

4 2015

amendment to

model rules

New wording, which adds further detail on the use of the

Partnership's profits.

7.2 Requested

amendment

Rule 7.2.3 relating to the Council membership category has

been deleted.

7.7 Requested

amendment

This new rule provides for deemed admittance of an

Independent Board Member once they have been

appointed.

15 2015

amendment to

model rules

New rule relating to the Members not being entitled to the

Partnership's property.

37.2.1 Requested

amendment

Amendment to refer to Independent Board Members

instead of Council Board Members within the composition of

the Board.

(37.2.4) Requested

amendment

This rule has been deleted to remove the reference to an

Appointed Board Member within the composition of the

Board.

37.3 Requested

amendment

This rule has been amended slightly to ensure that vacant

positions for one category of Tenant Board Member can be

filled by candidates of another category, provided they are

eligible for election as a Tenant Board Member.

37.5 Requested

amendment

New wording to provide that candidates for Independent

Board Members do not need to be a Member to become a

Board Member but will do so once appointed.

37.9 2015

amendment to

model rules

New wording to clarify the 9 year rule for Board Members'

terms of office.

(40.3, 40.5

and 40.6)

Requested

amendment

These rules have been deleted on the basis that any

Member can vote for all categories of Board Members.

(40.8) Requested

amendment

This rule has been deleted as there will no longer be Council

Board Members.

40.6 Requested

amendment

This rule has been amended to incorporate the provisions for

Independent Board Members.

42 2015

amendment to

model rules

New wording to include references to sub-committee

members for co-optees.

43.2 2015

amendment to

model rules

New rule referencing the 9 year rule, providing that the

Board needs to be satisfied of a Board Member's continued

effectiveness before that person can stand for re-election.

59.5 Requested

amendment

The last sentence of this rule has been removed so that any

Board Member can be nominated as the Chairperson.

59.11 Clarification We have suggested a new rule for the appointment of a

Vice Chairperson to reflect the references to a Vice

Chairperson within the current rules.

89.1 Requested

amendment

The definitions have been updated to reflect the requested

amendments.


APPENDIX 3- CONSULTATION

TENANT PARTICIPATION OFFICER

The Tenant Participation Officer discussed the Rule Change with tenants

and the general view was that this would be a very good move for HHP. The

idea of recruiting board members based on their skill, ability and

experience to operate at board level will help to strengthen the

governance of the organisation.

It will also support the view that HHP is an independent functioning

organisation and place it in a stronger position. Good representation is

important but equally it is important that there is full tenant representation

and comprehensive support for tenants and all Directors to operate at this

level.

VIEW FROM COMHAIRLE TO FOLLOW


APPENDIX 4-TIMETABLE & ACTION PLAN

Item Description Responsible Timescale

1 Approve changes to Rules Board 24 May 2017

2 Job Descriptions and basis of Skills

Assessment prepared

Corporate

Governance Manager

10 June 2017

3 Rules updated Legal Advisor 10 June 2017

4 Tenant & Comhairle Consultation Corporate

Governance Manager

24 May 2017 –

23 June 2017

5 Consultation with Funder Director of Finance &

Corporate Services

23 June 2017

6 Scottish Housing Regulator (In

Principle) consent

Legal Advisor 23 June 2017

7 Arrange for Special General

Meeting of Members to approve

rule change

Corporate

Governance Manager

/ Membership

14 July 2017

8 Rules approved by SHR Corporate

Governance

Manager/Legal

Advisor

July 2017

9 Rules approved by FCA Legal Advisor July 2017

10 Skills Assessment Corporate

Governance Manager

21 July 2017

11 Advertise for Independent Board

Members

Corporate

Governance Manager

/ Personal Assistant

26 July 2017

12 OSCR Notification Corporate

Governance Manager

31 July 2017

13 Interviews and appointment Board/Executive Team 16 August 2017

14 New Board in place Chief

Executive/Corporate

Governance Manager

September 2017

15 Training Plan 2017/18 for Board

members

Corporate

Governance Manager

November 2017


Agenda Item 13

BOARD 28 June 2017

DEVELOPMENT PLAN 2017/18 TO 2021/22


PURPOSE OF REPORT

1.1 To update the Board on the Scottish Government Grant funding available for 2018/19 to 2020/21.

SUMMARY

2.1 The Scottish Government announced on 13 June 2017 the Resource Planning Assumptions (RPA) for Affordable Housing for the next three financial years which provides certainty on the level of funding available for housing. The amount allocated to the Comhairle is £25.147m which brings the total for 2017/18 - 2020/21 to £30.918m. This is a significant increase (£7.791m) from what is currently included in our Development Plan.

2.2 Our five year Development Plan is being updated to take account of the announcement and will be available for the September Board meeting.

2.3 A copy of the Scottish Government press release is at Appendix 1.

COMPETENCE

3.1 The financial, legal and other constraints are detailed at paragraphs 5 and 6.

RECOMMENDATIONS

4.1 It is recommended that the Board note:

a) The RPA’s announced by the Scottish Government for 2018/19 to 2020/21 of £25.147m as shown at Appendix 1; and

b) The five year Development Plan for 2017/18 to 2021/22 will be updated in discussion with the Comhairle and the Development Workgroup and be presented to the Board in September 2017 for review and approval.

APPENDIX 1 Scottish Government Press Release


Writer of Report Dena Macleod Tel: 0300 123 0773


COMPETENCE

Financial 5.1 Provision has been made in the approved Business Plan for £9.688m of private finance to

deliver the Development Programme. The announcement by the Scottish Government of the additional funds available for affordable housing will result in the level of private finance required being increased in the region of £3 million.

5.2 The impact of increasing the development programme on the Partnership’s long term

finances will be fully assessed. A report will be brought back to the Board in September showing the available options to enable decisions to be taken.

5.3 Approval of our Funder will be required for any increase to the Development Programme

in the Business Plan.

RISK

6.1 Development is inherently risky due to the level of funds involved and the consequences of building the wrong type of properties in the wrong location. It is even more so at a time when there is general economic uncertainty, forecasts on population decline and weakening demand. Risk will be mitigated by carrying out feasibility work to ascertain the suitability and capacity of potential sites for development and working with the Community Planning Partnership to support the work they are undertaking to ensure the forecasts on population decline do not become a reality. The greater risk could be doing nothing.

6.2 Risk related to a particular development is assessed as part of the feasibility study.

6.3 Development has a lengthy lead-in time and significant work is required to ensure that the 2018/19 programme can be delivered on target. In particular the strategic direction needs to be set which will then inform site acquisition work particularly in rural areas. Site acquisition can be a difficulty and lengthy process and at present no land bank exists in rural areas. This should be based on strategic priorities.


Agenda Item 14

BOARD 28 June 2017

DEVELOPMENT PROGRAMME 2017/18


PURPOSE OF REPORT

1.1 To advise the Board of progress with the Development Programme 2017/18 and a proposed change to the current policy on how Shared Equity properties are allocated.

SUMMARY

2.1 Mackenzie Avenue is on site and progressing well. Issues raised by Building control as a result of the change in layout required to deliver savings, are being addressed and will not affect the overall timescales of the project.

2.2 The design work is underway by consultants LDN Architects and first draft of the design is being reviewed.

2.3 The design team for Tarbert Central submitted a planning application which received strong objections and will be considered by the Planning Committee on 20 June 2017. An update will be provided at the Board meeting.

2.4 Construction options for Corran Ciosmul are being reviewed to identify the benefits of “offsite construction”. Following completion of the review tender documents will be prepared for the next stage of the development.

2.5 Appendix 1 provides a summary of spend for the 2017/18 programme and details of the spend to date on individual projects can be found in the private papers.

2.6 The Development Workgroup met on 5 June 2017 to explore the options for landbanking and a draft note of the meeting is at Appendix 2.

2.7 TIG are currently redrafting the Policy on the allocation of Shared Equity properties to amend the basis from first come first served to the equivalent of a waiting list.

COMPETENCE

3.1 The financial, legal and other constraints are detailed at paragraphs 5 and 6.

RECOMMENDATIONS

4.1 It is recommended that the Board:

a) Note the progress on the Development Programme for 2017/18;

b) Note the forecast out-turn spend on the Development Programme for 2017/18 at Appendix 1; and

c) Delegate the approval of the revised Policy to the allocation of Shared Equity properties to the Development Workgroup.


COMPETENCE

Financial 5.1 There is a private finance budget of £1.2m for the 2017/18 Development Programme.

RISK

6.1 Development is inherently risky. Feasibility work to ascertain the suitability and capacity of potential sites for development helps to reduce risk. Feasibility studies are jointly funded by HHP and the Comhairle and are undertaken by Tighean Innse Gall.

6.2 Risk related to particular development is assessed as part of the feasibility study.

REPORT DETAILS

Progress on Site

Mackenzie Avenue (Melbost Phase 3 Stage 3 and Melbost Phase 4)

7.1 Work started on site in March 2017 and the handover of the first phase is planned for June 2018 with the final completion in September 2019.

Cameron Terrace, Lochs

7.2 TIG has been instructed to progress this site to tender. It is proposed that this be on a Design Build basis using the new HHP house designs.

Acquisition

8.1 An update is provided in the paragraphs below highlighting projects where there has been progress or significant change since the last meeting of the Board. The projects where there has been no change are:

• Stoneyfield

Tarbert Police Station

8.2 The property has now been acquired and the design team have commenced work.

Tarbert Central

8.3 The site is currently in the Comhairle’s ownership and there is a potential legal matter which requires to be addressed prior to the site being transferred to HHP. In addition 8 objections have been received to the planning application and this will need to be determined at Committee. An update will be provided at the meeting.

Other Sites Being Explored

8.4 There are a number of other potential development sites being explored: Perceval Road, Stag Road, Back Care Unit, Lochmaddy Police House, Lady Matheson School on Scotland Street, site at Tarbert (near Harris House), Balivanich, Scott Road Tarbert and the HIAL site at Stornoway airport.


Master Planning

9.1 Architects, Robert Potter and Partners have been appointed and master planning is underway with a view to the master plan being completed by September 2017.

9.2 An indicative project plan has been prepared showing when the project is likely to start on the ground showing a site start which is almost a year later than expected and provided for in our Development Plan. Concern has been raised by the Chief Executive and Director of Operations at both the Project Board and Project teams about the impact the delay may have on the funding currently available from Scottish Government.

9.3 This is an extremely important project for the islands and if it is to be delivered within a timescale that will maximise the utilisation of Scottish Government Grants for housing, additional staffing resources will be required at both the Comhairle and HHP. Item 25 on the agenda is a report outlining the additional resource required from HHP’s perspective.

APPENDIX

APPENDIX

1

2

Development Programme Forecast Out-turn 2017/18

Note of Development Working Group Meeting of 5 June 2017 (To be issued at

meeting)



Development Programme PROGRESS TO 31 MAY 2017 APPENDIX 1

Amend to

Budget 31 May 17 Remaining Out-turn Budget 31 May 17 Remaining Out-turn Budget 31 May 17 Remaining Out-turn Private Finance

AREA £ £ £ £ £ £ £ £ £ £ £ £ £

New Build 5,919,860 558,739 - 5,919,860 (4,291,800) (196,974) - (4,291,800) 1,628,060 361,765 - 888,160 (739,900)

Retentions 13,000 - 13,000 - - - - 13,000 - - 13,000 -

Shared Equity 1,216,430 265,757 89,680 1,306,110 (1,705,150) (60,956) - (1,705,150) (488,720) 204,801 89,680 (399,040) 89,680

Mortgage to Rent - - - - - - - - - - - - -

Land banking - - - - - - - - - - - - -

TOTAL 7,149,290 824,496 89,680 7,238,970 (5,996,950) (257,930) - (5,996,950) 1,152,340 566,566 89,680 502,120 (650,220)

OVERALL COMMENT ON PROGRESS OF PROGRAMME PROGRAMMES WITH TIME DELAYS

Projects on site progressing well Tarbert Central - planning concerns going to committee in June, failure to secure approval will have an impact on

MacKenzie Lane handed over May 2017. start date.

Mackenzie Avenue: work continues on site with small deviation to cash flow expected to be

caught up in June.

Tarbert Police Station purchase completed 17/04/2017 - planning proposals to be drafted

second quarter 2017/18.

Tenders and planning applications for Corran Ciosmul, Cameron Terrace and Tarbert Central

due to go out in the second quarter of 2017/18.

PROGRAMMES WITH PROJECTED BUDGET OVERRUNS PROPOSALS FOR BRINGING PROGRAMME WITHIN BUDGET

Melbost 3 Stage 3 and Melbost 4 -cost savings to initial tender identified and work is

progressing on this basis.

COST GRANTS & SALES PROCEEDS PRIVATE FINANCE

BRD-28JUN17-14 Development Programme 2017 18 Appendix 1 - summary 1 16/06/2017

Angus Smith Page 1 of 4 23/6/17

Agenda Item A&R 12

Board 14

APPENDIX ICT Strategy 2017 - 2020


Writer of Report Angus Smith Tel: 0300 123 0773

BOARD 28 June 2017

REVIEW OF ICT STRATEGY 2017 - 2020


PURPOSE OF REPORT

1.1 To present to the Board for approval the proposed revised ICT strategy for Hebridean Housing Partnership covering the period 2017 to 2020.

SUMMARY

2.1 This Strategy is focussed on the review, replacement and development of our core hardware infrastructure and software systems. A significant percentage of our IT equipment is now over 10 years old, and both hardware and software is rapidly coming to end of life status. This means that it will no longer be supported or maintained, or will be unable to meet HHP’s operation needs.

2.2 It also focusses on improving tenant inclusion – their access to services and information, as well as harnessing the opportunities provided by the internet and new equipment to better manage our assets.

2.3 The Strategy also aims to ensure that infrastructure and systems are developed in order to achieve real and measureable business efficiencies and cost savings.

2.4 This is taking place against significant and upcoming technological advances, changes in the ICT marketplace, increasing security threats, and the requirements of HHP’s own business plan. It has been developed in conjunctions with feedback from officers, tenants, service/support providers, and best practice across the Housing sector.

COMPETENCE

3.1 Issues relating to legal and financial matters as well as associated risks are detailed at section 5.

RECOMMENDATIONS

4.1 It is recommended that:

a) Audit & Risk Committee consider the revised ICT Strategy (2017–2020) and recommend approval to the Board;

b) Board approve the revised ICT Strategy (2017–2020) at Appendix 1.


COMPETENCE

Financial 5.1 There are total estimated costs of approximately £63K associated with the proposed ICT

developments over the next five years which have been identified initially. These costs are offset by potential financial savings and efficiency gains amounting to £145K. Both sets of figures, broken down by year are included for planning purposes.

5.2 The current approved budgets allowed for in the 30 year Business Plan provides for £35K

of expenditure per annum. Further costs identified above this level, together with savings identified, will be reported back to the Board for approval as development of the Strategy progresses.

Legal 5.3 The strategy aims to strengthen procedures and systems in relation to information

security; to better fulfil the requirements of the Data Protection Act and the forthcoming European General Data Protection Regulation (GDPR); and to lay the groundwork for the possible future inclusion of Housing Associations within Freedom of Information legislation.

RISK 6.1 HHP identifies and maintains a register of potential IT risks that the business may face.

As ICT is one of the critical areas the business relies on to function, it is one of the key functions addressed in HHP’s Business Continuity plan, for which procedures, testing and training are being developed.

6.2 HHP faces increasing operational and security risks due to the age of significant elements of both our hardware and software infrastructure, exacerbated by increasing obsolescence, breakdown and software ceasing to be supported.

6.3 HHP will mitigate these ICT risks through the implementation and regular review of this Strategy; appropriate and ongoing staff training; appropriate insurance cover; and ongoing development and testing of its business continuity processes.

REPORT DETAILS

7.1 The fundamental underpinnings of this strategy are unchanged in that it is designed to meet HHP’s Business Plan requirements and core objectives, but revisions are necessary to reflect ongoing and rapid technological and social changes over the last 5 years. In addition however, now that HHP has been in existence for 10 years, a more fundamental root and branch review of the equipment and software being used is required to ensure that these tools continue to be relevant and appropriate.

7.2 Relevant technological and social changes include:

The roll out of 4G availability and mobile services across the islands;

Faster speed Fibre broadband;

Increased expectation of online self-service and use of social media;

Software suppliers increasingly moving to supply their goods on a subscription only basis;


New Data Protection Regulations coming in from May 2018;

Increasing Cloud Hosting for services; and

Increasing internet connectivity capability of equipment (Internet of Things).

7.3 The strategy will therefore change from a fixed 4-5 year document, to a rolling 4 year model, which is continually reviewed and updated.

7.4 Its aims are consistent with the delivery of our core objectives:

To provide efficient service to our tenants and stakeholders and delivering value for money by procuring effectively;

To widen Digital Inclusion and to improve Tenant access to Digital Services;

To ensure that Security is at the forefront of all IT Development;

To ensure that HHP responds effectively and pragmatically to technological changes;

To enable staff to deliver a high quality and efficient service; and

To develop the requirements for internet enabled equipment to be installed in our properties for better asset management.

7.5 The strategy attached here is therefore intended to be an initial high level document, highlighting the general development areas needed to meet the requirements of our Business Plan, and the ways in which we will investigate and assess the future needs of the organisation.

7.6 As elements are implemented, and investigations and improvements are considered and progressed, they will be brought back to the Board for approval, and for specific decisions if required.

7.7 The development areas identified in the Strategy are:

a) Hardware

b) Software

c) Hosting

d) Telephony

e) Web Services

f) Network

g) Internet of Things/Asset Management

The Strategy also provides estimated costs and times frames for any changes, as well as:

i. Investigation of New services, products and infrastructure


ii. The development of software, including associated service contracts and maintenance agreements; and

iii. End of life technology and contract management. 7.8 We will continue to review of applications and support contracts to ensure: best value;

the implementation and development of systems to changing legislation (including Universal Credit); tenant needs; web and mobile services; the requirements of a future Repairs Contract; data management; and the maintenance of ICT security.

7.9 A greater emphasis is being placed on quantifying, measuring and reporting of cost and efficiency savings - to ensure that the benefits of proposed changes deliver their intended outcomes. KPIs will be developed to show progress here.

7.10 The strategy also looks to promote the development and use of untapped features and capabilities within our existing software and hardware infrastructure; changes to our processes to meet new challenges and current best practice; and the training of staff to ensure that systems are being fully and accurately utilised.

INFORMATION & COMMUNICATION TECHNOLOGY STRATEGY 2017-2020

Section Resources

Date Policy Approved 28 June 2017

Review Period 4

Review Due June 2020

Version 4.0

RSL No.359; A Registered Charity (No. SCO35767); A Registered Society under the Co-operative and Community Benefit Societies Act 2014 Reg No 2644R(S); Registered Social Landlord Reg No:359; Registered Property Factor: PF000183

APPENDIX 1

CHANGE HISTORY

Version No Date Change By

V 1.0 10 August 2006 First Draft Dena Macleod

V 2.0 13 February 2008 Revision for Period 2008 – 2011 Angus Smith

V3.0 9 February 2011 Revision for Period 2011 – 2016 Angus Smith

V4.0 1 February 2017 Revision for Period 2017 – 2020 Angus Smith

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1

HHP ICT STRATEGY 2017 - 2020

Introduction

1.1 This strategy has been produced for the management of Hebridean Housing Partnership. It should

not be reproduced or circulated to any other body without prior written agreement. 1.2 The scope of this Strategy is that of a high level document which defines the strategic direction

for Information and Communication Technology (ICT) in line with HHP’s Business Plan over a rolling four years period – currently 2017 to 2020.

1.3 It will be a continually assessed strategy, keeping abreast of technological development and

regulatory requirement, whilst providing the necessary authorisation and approval for specific procurement and implementations to meet HHP’s specific needs.

1.4 HHP’s vision is to provide good quality and affordable homes and to secure consistently excellent

housing services throughout the Outer Hebrides. We will use the opportunity provided by new technologies to support and improve the business processes of the organisation and its strategic objectives, with emphasis on delivering five main outcomes. These are:

a) Digital Inclusion: The delivery of improved services, information access and engagement for

the benefit of our tenants, members, partners, suppliers and staff;

b) The increase in efficiency of, and cost effectiveness of, our services and their delivery across

the whole of the Outer Hebrides, thereby freeing resources for other front-line services;

c) To develop best practice and appropriate operating, management and reporting tools and

procedures. This is to allow HHP and its Board and management to effectively meet the needs

of the business within its regulatory framework, and within a joined up, proactive and

cohesive structure;

d) To ensure that security and data security is at the forefront of how ICT is managed; and

e) To develop appropriate IOT (Internet of Things) technologies – improving the management of

our assets through the use of internet linked equipment.

1.5 The strategy will also seek to address and reflect changes and developments in the wider IT world, including:

a) The new Data Protection Regulations (GDPR) due to be implemented from May 2018;

b) The roll out of 4G and mobile services;

c) Cloud based resources – both for applications and hosting;

d) Faster speed Fibre Broadband;

e) Software increasingly being supplied on a subscription only basis;

f) A general expectation of self service and internet services

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2

Strategy Overview 2.1 The Strategy is formulated in such a way as to ensure that the general direction of ICT is not

constrained, rather it builds on the knowledge and experience gleaned from existing programmes of work to influence future change.

2.2 The Strategy encompasses six main developmental areas, which are co-dependent and

interrelated, and this increasing interrelation requires additional consideration and planning as we move forward. The areas are:

1. HHP Hardware

This is the equipment required by HHP in its operation.

PC’s

Laptops

Printers

Photocopiers

Monitors

Tablets

Security

Cameras

Information Screens

2. HHP Software

The software used by HHP in its operation.

Systems for Housing Management

Finance

Financial Modelling

Office Administration

Communication

Reporting etc.

3. Hosting

Externally Provided Hardware and Support

Server Specification

Local Servers

Helpdesk

4. Telephony

Fixed Telephony

Mobile Telephony

Video and Audio Conferencing

AMS

3

5. Web Services

Intranet

Mobile Working

Public Website/Apps

Social Media

6. HHP Network Arrangements

The network used by HHP in its operation.

Connectivity

Firewalls

Internal Network (Fixed and Wi-Fi)

Local servers

Email and web filtering

7. Internet of Things

Using technology and internet connectivity to monitor and better manage our assets in

realtime.

Sustainable Living Assistants (monitoring heating, lighting and electricity use)

Smoke and Carbon Monoxide detectors

Remotely managed Gas supply

Remotely managed stopcocks

Communal Lighting and access

2.3 The investigation and development objectives of each of these seven areas are detailed at Appendix 1.

2.4 For this Strategy to be successful;

a) There must be a real partnership between all those who manage, use and develop ICT.

b) ICT must be a key consideration in HHP’s business planning process.

c) A strategic and consistent view on how technology is applied across the organisation is

needed;

d) The delivery of new ICT must provide value for money and/or efficiency gains

e) There must be a commitment to develop the right ICT skills for all employees

f) The risks associated with ICT must be properly managed.

g) ICT must be developed and maintained over the period of the strategy

2.5 Appropriate staff training, as well as KPI’s and Targets will be developed in order to assess

progress, and will be considered as part of the review and reporting process.

AMS

4

Developing and Delivering the Strategy

3.1 HHP is committed to finding solutions for the delivery of services and facilities that best meet its

needs. These will be identified and achieved through research and training; knowledge sharing with

other Housing Associations and other similar organisations; and discussion and collaboration -

particularly with those groups and individuals (both internal and external) that are direct recipients

of the services provided.

3.2 Ensuring day to day delivery of the ICT Strategy, as approved, will be the responsibility of the

Director of Finance & Corporate Services, supported by a project team comprising of the Corporate

Resources Manager, the IT Officer and the Business Support Officer as well as representatives from

each of HHP’s operational teams (Housing Services, Finance, Property Services and Customer

Services).

3.3 Any significant deviations, either in terms of cost and/or direction will be referred back to the

Executive Team.

3.4 The current strategy has been developed in conjunction with, and with consultation and feedback

from:

HHP Business Plan (Business Planning Days 2016/7);

HHP Executive Team;

HHP Managers;

External Partners;

Internal Staff ICT survey 2015 and 2017;

Tenants Survey 2015; and

ICT User Groups

3.5 The way in which HHP services are delivered are constantly changing and many of these changes

cut across departments and areas. It is essential that we monitor and plan the changes and co-ordinate them so as to avoid opportunities being missed, to ensure that duplication is avoided, and that the strategy relates closely to objectives defined in our key planning documents.

3.6 Each Development Area within the ICT strategy (detailed at Appendix 1) and any new additions

wil be, where applicable, reviewed against five components. The five components are:

a) Project or initiative background; The reasons why the development is required and any

efficiencies and cost savings it can generate;

b) Other technology required in its delivery;

c) Delivery and implementation issues, and any impact on other services/processes;

d) The cost of procurement or other resources required in its delivery; and

e) How it will be developed and maintained going forward.

3.7 If additional IT solutions are required, we will aim to procure ‘off the shelf’ packages where

possible (i.e. no bespoke development) with an emphasis being placed on products that integrate with or are data compatible with our current software.

AMS

5

Threats to implementation 4.1 The strategy supports the priorities identified in HHP’s Business Plan, but the delivery of the

objectives may be influenced or adjusted in the short to medium term by factors such as:

a) The development of HHP’s business continuity plans;

b) The roll out of fibre and mobile internet connectivity in the islands;

c) Changes to legislation – for example, in relation to welfare reform or data protection;

d) Available finance to purchase/implement development

4.2 Meeting these challenges and achieving HHP’s objectives will require effective project management by the Project Team, with involvement from Officers, Management and Board Members within HHP - together with regular reviews of the strategy and its associated implementation plans.

Hardware/Software Procurement 5.1 HHP’s Standing Orders require, in relation to major purchases, prior consultation with and

approval by Board. It is recommended that the Corporate Resources team are involved in the evaluation of any new applications or services that require ICT support at the earliest possible opportunity.

Partnership Procurement 6.1 Opportunities for partnership procurement are being explored with other organisations, such as

other Housing Associations in Scotland who use the same software systems. As a Public Body, HHP has access to a number of Scotland and UK wide Framework agreements for the provision of ICT services.

Timescales and Priorities

7.1 Indicative timelines for the Strategy Implementation areas 1-6 are included at Appendix 2. Some

of the deadlines and targets are statutory and are therefore fixed. Others are dependent on the completions of evaluations and intermediary steps. The Strategy will therefore need to change and be flexible as technologies, reviews and business needs and priorities develop.

AMS

6

Strategy Review and Update 8.1 The Strategy will be reviewed as follows:

1) Ongoing review and update carried out by Corporate Resource staff, to confirm progress of

action plan, and the feasibility of its phased delivery timescales.

2) Regular review by the HHP’s Executive Team and Board, in with any amendments arising from

the review being factored into the Business Planning and Budget Setting processes.

AMS

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Appendix 1 ICT Developmental Area 1 - HHP Hardware

Objective

“Providing the equipment and resources required to deliver services.”

Deliverables/Development Requirements 1.1 PC’s & Servers

To implement a 3 year PC and printer replacement plan costed at £30K (£10K per year) – equipment to meet HHP’s current base specifications;

To replace PC’s with the PC, Laptop or Tablet most appropriate - based on job role and business continuity requirements;

o Review use of existing iPads for Board Members and develop replacement strategy o Consider use of tablets for Clerks of Works and Housing Officers in relation to mobile

working

To upgrade all desktops to Windows 10 Enterprise Operating System;

To upgrade our servers to Windows Server 2016 Operating System;

1.2 General

To review the use of VDI (Virtual Desktop Infrastructure) i.e. how we connect to and use software held in the datacentre, in light of improved connectivity, integrated internet access, and use of local systems

To replace Shared Office Printers;

To replace Photocopiers at the one million copy mark (estimated to be in 2019)

To contribute to reduced energy use by HHP;

To reduce paper printing;

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ICT Developmental Area 2 - HHP Software

Objective “Ensuring that our software is fit for purpose, and is the best solution for HHP’s needs.”

Deliverables/Development Requirements

2.1 General

Investigation of resource required for specialised coding and system development, against changes to current HHP processes where they can be made more efficient and less bespoke.

Investigation into automation of manual tasks and integration into systems where possible

To ensure that data held by HHP conforms to current and future data protecton requirements.

2.2 General Ledger

Review Financial System and other options and assess for suitability

Upgrade current system if necessary to meet business and hosting requirements

Investigate other financial systems

2.3 Housing Management System- Current

To develop a plan for workflow improvements

To develop improved arrears management processes

To develop letters and communication

Implementation of changes for Universal Credit

Improved integration with Repairs Contractor

To complete Planned Maintenance integration to Financial System

To integrate data from the Stock Condition Survey 2017

To review and provide training on CRM and development of html front end dashboard

Development of processes for areas such as Permissions and Anti-social behaviour

Review of processes in relation to Housing Act 2014 and any changes required by the updated Allocations Policy

To develop reporting tools to meet internal and ARC requirements

To investigate bulk SMS texting, and SMS texting built into automated processes

To investigate the ability to use incoming SMS for services

2.4 Housing Management System- Review

To review Housing systems requirements and whether the current system is fit for purpose

AMS

9

2.5 Document Management System

To develop the requirement and implement a solution that: o Improves invoice management; o Integrates with Finance and Housing Systems; o Provides a defined indexing system which allows fast searches and document retrieval.

2.6 Microsoft Office

To upgrade to Office 2016

To Investigate Office365 licensing options

2.7 Adobe Acrobat Pro/Reader

To review the use and licensing of PDF software

Investigation of alternatives

2.10 Personnel Software System Requirements to be developed and solutions sought

2.11 Contractors

To investigate software requirements should HHP decide to take the repairs function in-house.

1.12 Payment Systems

To allow credit and debit card payments to be taken at HHP Offices (Trial to begin in June 2017).

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ICT Developmental Area 3 - HHP Hosted Infrastructure

Objective “Defining and delivering the required wider hardware infrastructure.”


3.1 Hosted Solution

Review requirements in terms of processors, storage, memory, servers and backup;

Upgrade underlying software (Operating Systems, SQL, VMWare, Citrix, Office) ;

Investigate internet access through the hosted environment (with appropriate filtering etc.);

Tender for post 2018 provider;

Assess impact of increased licensing costs;

Assess any additional requirements of new or upgraded software;

3.2 Local Servers

Review use of local servers o whether the services that they host are better maintained locally, in the datacentre, or in

the cloud

3.3 Local Helpdesk

To review its hosting environment – local, datacentre, cloud

To require all issues to be logged and actioned through the helpdesk

To provide a solution for a secure door access system for Uist office

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ICT Developmental Area 4 - Telephony

Objective “Ensuring we have the right tools to speak and listen to the outside world.”

Deliverables/Development Requirements 4.1 General

To increase flexibility, mobile working and business continuity options.

4.2 Video and Audio Conferencing

To investigate solutions for video conferencing in both offices for peer to peer desk based connectivity

4.3 Mobile Phones

To Review requirements and use, in relation to 4G availability, Wi-Fi calling, telephony use, camera, tablet requirements and other requirements (thermal imaging, mobile working, applications).

4.4 Telephony

To investigate VOIP (Voice over Internet Protocol) and cloud based telephone systems. Initial investigation has identified potential annual savings of £13K per year.

To investigate other low cost options for telephoning HHP

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ICT Developmental Area 5 - Web Services: Intranet, Public Website & Mobile Working

Objective

“Promoting and enabling Digital Inclusion, and providing the equipment and applications for both tenants and staff to access and use HHP services.”


5.1 Intranet

To develop internal HHP intranet for information sharing and training – a one stop shop for

policies, procedures, plans and objectives

To improve document version control (see also Document Management under software)

5.2 Mobile Working

To investigate mobile working:

o By administrative staff who are away from the office; o By Housing Officers and Clerks of Work who require access to rent, allocations, repairs and

planned maintenance systems out on site and as they visit tenants; and o as part of the development of business continuity processes; and

To develop smarter and joined up working between systems and mobile staff members

Undertake three month trial of mobile working solution from MIS in 2017

5.3 Website/Apps

To assess requirements, and to develop our website and mobile applications to provide tenant based services for:

o Real-time Rent Information/statements o Rent and other payment collection o Repairs o Allocations (void properties, assets available, applications) o General contact, feedback and complaints o Surveys o Real-time chat o Investment programme o Policies documentation o Video information

Initial assessment of cost is £7.5K (based on current housing software system)

5.4 Social Media

To explore opportunities for tenants to communicate with HHP and be informed, and to promote the Partnership further through this medium.

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ICT Developmental Area 6 - HHP Network Arrangements

Objective

“Ensuring that HHP’s offices and data centre are linked efficiently and securely, and that data and access are managed appropriately”


6.1 Connectivity

To implement 40mb Asynchrous Fibre Connectivity between HHP Offices and our Datacentre (now being implemented)

To upgrade backup lines to faster broadband services

6.2 Firewalls

To replace the existing Office Firewalls for increased security and new internet links

6.3 Network (Fixed and Wireless (Wi-Fi))

To complete the network wiring in Stornoway Office

To replace the Wi-Fi system to allow office wide, and public/private access

To allow Citrix access through Wi-Fi

6.4 Email and Web Filtering

Email currently being managed through the hosted platform

Review options for web filtering in relation to upgraded internet connectivity

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ICT Developmental Area 7 – Internet of Things

Objective

“To improve asset management through the interconnection via the Internet of computing devices embedded in everyday objects, enabling them to send and receive data.”


6.1 General

To develop and cost appropriate specifications and technologies to be fitted in our new build

properties and in our current assets at the time of investment works or as part of equipment

replacement programs. Specifically related to:

a Sustainable Living Assistants

Monitoring of heating, lighting and electricity use in properties – to assess the efficiency and performance in day to day use.

b Smoke and Carbon Monoxide Detectors

Immediate warning to HHP should a detector stop functioning.

c Remotely managed Gas supply

The ability to remotely stop gas flow should a fault be detected, or should access be denied for an annual gas inspection, thereby limiting further damage or injury

d Remotely managed stopcocks

The ability to remotely stop water should a fault be detected, thereby limiting further damage or injury.

e Heating System Control

The ability to respond to heating system faults as quickly as possible, especially important for elderly or vulnerable tenants

AM

S

15

Appendix

2 – In

dic

ativ

e T

imeta

ble

s

1.

Hard

ware

4 year project timeline

IT Stream

Hardware Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

PC's/Laptops Replacement cycle Replacement cycle Replacement cycle Replacement cycle

Tablets Replacement cycle

Printers Replacement Stornoway General

Photocopiers Replacement Stornoway Replacement Uist

Cameras/

SecuritySet up Stornoway and Uist Set up in Uist Replacement Stornoway

Information

ScreensSet up Uist

Generator Purchase

2017 2018 2019 2020

AM

S

16

2.

Softw

are

Software

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct

Housing

Management

System

Under review

Accounting

SystemUnder review

BRIXX Training

Adobe

Acrobat

Pro/Reader

Autocad

Personnel

Software

System/Time

and

Attendance/

Door Entry

Document

Management Under review

2017 2018 2019

AM

S

17

3.

Ho

sting

IT Stream Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Hosted

SolutionCastle contract ends

Local Servers Replacement

Firewalls

Local

Helpdesk

2019

Extended hosting contract for Castle Hosting tender process

2017 2018

Dependancy on fibre

Replacement

AM

S

18

4.

Tele

ph

on

y

4 year project timeline

IT Stream

TelephonyJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Mobile

Landline/ VOIP

Contract ends

instant

messaging

conferencing

2017 2018 2019 2020

Mobile Phone contract ended

Testing of BT SIM's

Evaluate testingresults

Idenitify options from

testing

Procurement

AM

S

19

5.

We

b Se

rvices

IT Stream Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Internet

Intranet

Remote

working

Social media

2017 2018

Signed offWork in bothoffices to begin

Student placement to work on this

AM

S

20

6.

Ne

two

rk Arran

gem

ents

IT Stream Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Fibre Internet

Intranet

Firewalls

Wi-Fi/Internal

2017 2018 2019

Signed offWork in bothoffices to begin

Student placement to work on this

Dependancy on fibre


Agenda Item 16

BOARD 28 June 2017

TENANT PARTICIPATION UPDATE


PURPOSE OF REPORT

1.1 This report updates the Board on issues around tenant participation.

SUMMARY

2.1 The Board approved a Tenant Participation Strategy in June 2016 and activity is ongoing to deliver on this strategy. A summary of current activity is at Appendix 1.

2.2 Activity includes the establishment of a repair service scrutiny group and information on this group is at Appendix 2.

2.3 A funding request has been received from the Cearns Community Association and Western Isles Housing Association Communities Forum to support 6 places at the TPAS (Scotland) Annual Conference in November 2017.

2.4 The Forum wish to have a clear approach to funding expenses for tenants taking part in participation activities. This is set out at Appendix 4.

COMPETENCE

3.1 The legal, financial or other constraints to the recommendations in this report are contained in paragraph 5.

RECOMMENDATIONS


a) Board agree to fund 6 places for the Cearns Community Association and Western Isles Housing Association Communities Forum at the annual TPAS Conference in November 2017; and

b) Board approve refunding tenant expenses in line with the Forum’s policy at Appendix 4.

APPENDIX 1 Summary of Tenant Participation Activity

APPENDIX 2 Tenant Scrutiny Group on Repair Service

APPENDIX 3 Letter from Western Isles Housing Association Communities Forum

APPENDIX 4 Policy on Funding Tenant Expenses


Writer of Report John Maciver Tel: 0300 123 0773


COMPETENCE

Financial 5.1 The cost of each place at the TPAS Conference is £660 for twin occupancy. TPAS have

offered HHP 6 places for the cost of 5. 5.2 Six places would therefore cost £3,300. 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 5.4 There are no specific legal implications to the report.

RISK

6.1 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

7.1 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.

7.2 The tenant satisfaction survey in 2015 found that only 60% of tenants were satisfied with options for participation. It is also a clear expectation from the Regulator that Registered Social Landlords engage effectively with tenants.

7.3 TPAS have been engaged to work with HHP in developing tenant participation and communication and considerable activity is ongoing in all areas to encourage and promote participation.

7.4 At present a scrutiny group has been set up which is focusing on the repair service. This work is ongoing but the group have made some observations on the Repair Policy. Information on the group and their initial views and queries are at Appendix 1 for information. This will be discussed and tested further with the group and will inform the Repair Policy review which is programmed to start shortly.

Participation Activity

8.1 Appendix 1 to the report provides an update on current activity. In addition the annual HHP tenant event was held in the Town Hall in May 2017 and events are currently being organised for Uist and Barra.

TPAS Conference

9.1 The Annual TPAS (Scotland) Conference is being held between 3 and 5 November 2017. This is billed as the only Conference which is aimed primarily at tenants.


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 Cearns Community Association and the new Western Isles Housing Association Communities Forum which are Registered Tenant Organisations, for funding to enable 6 representatives to attend the Conference.

Tenant Expenses

10.1 The payment of expenses to tenants is important to ensure that they are able to participate effectively and to prevent cost being a barrier to tenant involvement. The Forum wish to ensure that a clear Policy is in place and they have provided a draft at Appendix 4 for approval.

10.2 Legitimate costs would be funded by HHP through existing community support budgets.

APPENDIX 1

TENANT PARTICIPATION ACTIVITY

Current Activities

Setting up of a tenant led scrutiny group on repairs.

Review of tenant participation section of the website working alongside the Customer Services Manager. This will provide clear easy to follow information for tenants regarding their housing service and participation and engagement information.

Contributions to the content and format of the Tenants Annual Report.

Ongoing work with the Western Isles Foyer and engaging with service users.

Review of tenant events and activities. An open drop in session has been held at the Bridge Centre, Stornoway over the past few months.

Contribution to the newly formed Communication Group. This will provide a space to pool ideas and resources to review and improve tenant faced communication.

Ongoing support for the tenant umbrella organisation (Western Isles Housing Association Communities Forum).

Ongoing and regular contact with all the tenant groups via email, Facebook, text and face to face.

Outline project plan developed for three HHP consultations planned for this year. The tenant consultations include rent, allocations and repairs.

Two new tenant information leaflets developed and printed and further ones being planned.

Review of letting standards and opportunities for tenants to review and feedback on these standards. Further work is planned to consider the change of tenancy process.

Scottish Housing Charter update session planned for this summer.

TENANT PARTICIPATION – TENANT SCRUTINY GROUP ON REPAIR SERVICE

SUMMARY This provides an interim report from the focus group. The work of the group is ongoing and they will produce a final report with recommendations later in the year. The group want to contribute to the policy review.

At this stage the recommendations section will focus on the repairs service and the Repairs and Maintenance Policy.

The focus group have agreed to take a closer look at two elements of the overall repairs and maintenance service. These are Air Source Heat Pumps and planned & cyclical maintenance.

The work of the focus group sits under the tenant scrutiny structure. It is essential to consider the pace and method when forming a tenant group to undertake work and tasks associated with scrutinising service areas and performance. This can be a fragile process and requires a tenant centred approach to developing this process.

INTRODUCTION

Tenant Scrutiny in Context

Tenant Scrutiny is about tenants being actively involved in reviewing how housing services are being delivered and how they can be improved. This approach provides an opportunity to develop partnership working between tenants and landlords to deliver excellent housing services.

Tenant led inspections are a popular way of involving tenants improving housing services. This is a process where tenants independently inspect a housing service to review how well it is working and to identify recommendations for improvement.

This approach allows tenants to inspect housing services from a tenants perspective

Hold service providers to account

Contribute to improvement in housing services, whilst ensuring policies and

procedures are clearly understood and implemented

Inform policy development and delivery

Ensure resources are used effectively and service delivered provide value for money

Benchmark and share good practice

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APPENDIX 2

The benefits are:

Opportunities to involve new people in tenant participation activities

Building capacity of organisations and individuals

Involving tenants in a constructive and practical way

Enhancing the landlords customer care focus

Developing relationships between tenants, tenants organisations and landlord staff

Meeting the requirements of the Scottish housing regulator and Scottish Social

Housing Charter

Driving forward improvements on housing services

FOCUS GROUP RECRUITMENT

A number of recruitment drives have been undertaken over the past 18 months, via social media, word of mouth, through RTO’s and Homeward to test the idea of a focus group. A number of tenants were approached under the umbrella of the Western Isles Communities Housing Association Forum and asked to form a focus group.

SELECTING A SERVICE AREA

The Forum had pre-selected a number of areas from tenant feedback. The repairs service was selected by tenants following feedback in the tenant satisfaction survey. The repairs and maintenance service is comprised of numerous service areas. Following a presentation detailing the whole service, the tenants selected to focus on ASHP and planned maintenance.

The group will also consider and review the draft letting standards, change of tenancy process and rechargeable repairs at a later point in its work programme.

SCRUTINY PROCESS

The focus group is following an agreed plan. This will include:

Administration

Agreeing term of reference for the project and code of conduct.

Agreeing the scope of the project

Information and relevant fact finding regrading repairs.

Understanding procedures and policies

Reality checking

What happens in practice

Tenant feedback

RECOMMENDATIONS

What the tenants liked

The group have now met on four occasions to consider information, reports and the Policy.

The tenants have identified good practice and information relating to repairs and maintenance.

Findings & Recommendations

Appendix 2.1 outlines the group suggestions and recommendations with regards to the HHP Repairs and Maintenance Policy.

FINDINGS RECOMMENDATIONS FROM THE GROUP

Repairs & Maintenance Policy Review

The repairs focus group went through the policy. The numbering

relates to the paragraphs in the policy. The bullet points are

general recommendations.

3.5 The section on keeping in repair the structure and exterior of all dwellings. Can this be more clearly defined for example what is included.

4.1 Record keeping – Suggest that this includes multiple reports about repairs.

5.1 The group would like to discuss improvement in terms of the information provided to tenants.

5.2 Tenants would like to be kept informed about the repairs and would also like the procedure of having repair request number implemented.

6.1 This section needs to be much clearer and information provided about what and why tenants are expected to pay. The group suggest an indicative cost of rechargeable work is developed into an information leaflet for tenants.

9.7 This area will be considered in further detail by the group.

The tenants would like the policy to clarify who is responsible for first service, and when it is a contractor installation, is the cost included in the installation cost?

10.1 Does this mean that it can be 10 or 15 years before particular schemes are visited maintenance?

11.2 How does this impact on the rent payable by the tenant?

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APPENDIX 2.1

13.1 The section on tenant consultation – The tenants welcome the opportunity to get involved in all areas of consultation as outlined in this paragraph. It is their experience that this has not been implemented in terms of choices or consultation. The tenants queried the choice of primary heating statement.

15.1 Handyman service. Tenants would like this service to be better publicised as many tenants are unaware of this service and how it works.

17.1 Aids and adaptations – The budget is around 120k per annum.

Paperwork & Administration

The group recommend that the database for the investment and

repairs work is amalgamated into one database. The group

understand that this is being undertaken and would like to know

the timescale.

Staff Roles & Decision Making

The above information can support the Customer Services Team to

identify the issue and solution and get it right first time if people

know the makeup and fabricate of the building?

Communication

The group would like to see all contractors undertake training in

terms of customer services and trade competencies. There is a

variation in the quality of work from the contractors. Various

trade, health and safety, competency, knowledge and practice

based training.

The group would like to highlight and stress the importance of

keeping tenants informed throughout the process from reporting a

repair to having it completed. They feel that this area requires

further work.

The group suggest an increase in the opportunity and feedback in

terms of tenants surveyed and satisfaction. The group recommend

that following each contractor visit tenants are offered an

opportunity to feedback. Only 5% of tenants were surveyed in

2016/17.

Standards & Value for money

The group would like to suggest more considerations given to stock

standardisation in terms of minimising costs, knowledge and

availability of parts.

Consideration and review the time taken to carry out certain

repairs, possible wasted journeys when the equipment is not

available in the van or not enough and have to go back for stock.

This has quite an impact when travelling to Ness or Harris.

The group suggest using photos as a way of communicating

directly and visually the repair.

Use of photos, apps for improving efficiency – FES FM Ltd have

included the use of photos in their enhanced contract.

The group would like to understand what happens when the

repairs, post investment works, appears to be loaded on to the

repairs budget when the contractor is still responsible.

The group would like more information about value for money –

trips out without the right/any equipment in the van, efficiencies

in terms of travel, communication between the two organisations.

The group would like clarification about the post repair

satisfaction note/survey. Is there a process for tenants to sign off

the work/job.

The group queried the use of resources deployed in supporting

tenants use their heating systems correctly? Can HHP develop

guidance/instructions for all heating systems, particularly new

ones? This is a particular issue in the first year and suggest

investigating other methods.

APPENDIX 4

WESTERN ISLES HOUSING ASSOCIATION COMMUNITIES FORUM

TRAVEL EXPENSES GUIDANCE

Bus, Train, Ferry and Plane Amount Please provide

You have to make your own arrangements using the most cost effective transportation. This can be booked and pre-paid through the Tenant Participation Worker.

Bus/Train ticket to the form unless a return ticket/or bus pass is used. These can be produced if requested.

Car use - Mileage

Car sharing is encouraged. The journey mileage including the return journey can be claimed. The allowance payable for car travel will not exceed the allowance payable for public transport for the same journey.

45p per mile Mainland rate 30p per mile

The driver has to complete the form detailing the mileage and the amount claimed. Please note that it is the responsibility of the car driver to have the relevant legal documentation including motor insurance for the vehicle

Taxi Fares

Taxi sharing is encouraged. Taxis will only be paid if the tenant/resident is unable to use public transport due to health and/or mobility problems. This should be agreed in advance with the Tenant Participation Development Worker.

Please attach the taxi receipt to the form.

Car Parking

This can be claimed for the period of the event.

Actual cost will be paid

Please attach the car parking ticket to the form.

Carers & Childcare Allowances

Carer expenses will be paid if you have to provide care for a family member(s). Care expenses will only be paid to registered care organisations or child minders. Family members providing care will not be paid expenses.

Payment will be made directly to the registered care organisation or the registered child minder.

APPENDIX 4

Subsistence Guidance (Food & Accommodation)

Amount Please provide

Allowances for meals (food and non alcoholic drink). Cash may be given to the tenant/resident before the event. This should be discussed with the Tenant Participation Worker. Overnight accommodation can be booked and prepaid through the Tenant Participation Development Worker.

Breakfast - £10.00 Lunch - £10.00 Late evening meal after 8pm £25.00 Accommodation will be from £75.00 - £85.00

Please attach all receipts to the form and any under spend must be returned to a Tenant & Community Engagement Officer as soon as possible after the event.

Telephone Calls

Where an individual makes telephone calls in relation to their involvement in the costs of the calls will be refunded.

Please attach a photocopy of your itemised bill highlighting the relevant calls on the form.

Incidental Expenses

Tenants and residents may incur other incidental expenses such as costs for Printer paper, Printer, cartridges, internet access, postage, stationary or mobile phones for which reasonable costs can be reimbursed where there has been prior agreement.

Please attach the relevant receipts to the form.

MAKING A CLAIM Prior agreement from Tenant Participation Development Worker must always be obtained for attendance to events when expenses are to be claimed. All people making a claim have to complete the Tenant & Community Engagement Expenses Form (See Appendix One) and attach the relevant receipt(s). These forms are available from the Tenant Participation worker Tenant & Customer Services Team The completed form must be given to the Tenant Participation Development Worker who will authorise and arrange for payment. PAYMENT Payments up to £100 will be paid from Petty Cash within 3 working days. Payments over £100 will be paid directly to the individual or organisation’s bank account within 30 days.


Agenda Item 17

BOARD 28 June 2017

LEASE OF GROUND IN PLASTERFIELD


PURPOSE OF REPORT

1.1 The report provides information on a request received from the group Men’s Shed Stornoway to erect a shed in Plasterfield.

SUMMARY

2.1 A request has been received from a new group, Men’s Shed Stornoway, to erect a shed on an area of ground owned by HHP in Plasterfield. This request and supporting papers are attached at Appendix 1.

2.2 The area of ground was in the past part of the garden of number 76 Plasterfield. However, it is not being maintained by the current tenant and is in fact fenced off from the remainder of the garden. The area is largely unmaintained although the neighbouring residents are doing some tidying up work.

2.3 There is support from the neighbours, community and elected members for the proposal which seeks to provide a facility to improve community interaction and to enable the community to be more pro-active in improving the area and environment. Information is still required from the group on some of the details of their proposal. In particular we wish confirmation on the exit strategy should the group fail. However the Board are requested to approve the principle of the proposal and to delegate the decision on final approval to the Chief Executive.

COMPETENCE


RECOMMENDATIONS

4.1 The Board are asked to approve that:

a) In Principle permission be given to Men’s Shed Stornoway to erect a shed in Plasterfield and that annual rental be in line with garage site rental; and

b) The final decision be delegated to the Chief Executive subject to agreement being reached with the group on the detailed terms and conditions.

APPENDIX 1 Letter from Men’s Shed Stornoway Dated 30 May 2017 and Supporting Papers




COMPETENCE

Financial 5.1 There are no direct financial implications for the proposal. It is proposed that the rental

charged be set in line with garage site rents which are £100.19.

Legal 5.2 The detailed terms and conditions will be agreed with the Men’s Shed group. The

proposal is consistent with HHP’s charitable aims.

RISK

6.1 The most significant risk is that the group fails and that the shed is left on site. An exit strategy will be agreed with the group which mitigates this risk.


Agenda Item Board – 18 A&R - 13

AUDIT & RISK 27 June 2017

BOARD 28 June 2017

COMMUNITY GRANTS POLICY


PURPOSE OF REPORT

1.1 This report presents a proposed policy to address community requests for financial assistance for consideration by the Board.

SUMMARY

2.1 The Board agreed on 1 February 2017 to develop a policy framework for community requests for financial assistance.

2.2 A draft Policy is attached at Appendix 1 which sets out a framework for the provision of grants to community groups. In particular it is a requirement of the policy that any proposals benefit HHP tenants.

2.3 The draft Policy draws heavily on approaches taken by other RSLs. It is proposed that formal consultation with tenants be undertaken.

COMPETENCE


RECOMMENDATIONS


a) Audit & Risk Committee consider the Draft Community Grants Policy at Appendix 1 and recommend approval to the Board;

b) Board approve Draft Community Grants Policy at Appendix 1.

APPENDIX 1 Draft Community Grants Policy




COMPETENCE

Financial 5.1 There is no budget provision for a scheme of this nature at present. The Board would

require to consider this issue as part of the annual budget setting process.

Legal 5.2 Any funding provided to external groups would require to be consistent with HHPs

charitable aims.

RISK

6.1 There are no specific risks associated with the report.

COMMUNITY GRANT FUND

Section Operations

Date Policy Approved by Board 28 June 2017

Review Period 3


Version 1.0

A Registered Charity (No. SCO35767); A Registered Society under the Co-operative and Community Benefit Societies Act 2014

Reg No 2644R(S); Registered Social Landlord Reg No:359; Registered Property Factor: PF000183

APPENDIX 1

CONTENTS

COMMUNITY GRANT FUND ..............................................................................1

Policy Change History ...................................................................................1

Interpretations & Abbreviations .......................................................................2

Introduction ..............................................................................................3

Aims .......................................................................................................3

Eligible Groups ...........................................................................................3

Priorities ..................................................................................................3

Healthy Living and Well Being ........................................................... 3

Environmental Improvements and Sustainability ..................................... 3

Young People, Children and Older People ............................................. 3

Employment Training and Skills ......................................................... 4

Community Support and Safety .......................................................... 4

Decision Making ..........................................................................................4

Application Process ......................................................................................4

Condition of Grant .......................................................................................4

Ineligible Projects .......................................................................................4

Equal Opportunities .....................................................................................5

Policy Review .............................................................................................5

1

POLICY CHANGE HISTORY

Version Change Applied Date By

1.0

2

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

3

COMMUNITY GRANTS POLICY

INTRODUCTION

1.1 The HHP Community Grant Fund is available to support small scale community projects that will improve the quality of life for residents and make a real difference to the neighbourhoods which HHP serve. The fund offers up to £ TBD* for projects which aim to make a difference to the lives of our tenants, residents and their communities.

*to be determined

AIMS

2.1 The policy seeks to support activity by local groups to improve the lives and environment in their area.

ELIGIBLE GROUPS

3.1 The fund is open to charities, tenant and residents’ groups and voluntary organisations. There must be a benefit to HHP tenants residing within the area from the project being proposed.

3.2 Groups must be based in an area which serves one or more HHP estates or streets. Normally groups should have a registered bank account with two signatories who are not related and who don’t live at the same address?

3.3 It may however be possible to fund projects where the group do not have a bank account and where the costs can be paid directly by HHP.

PRIORITIES

4.1 Successful applicants will be able to demonstrate that their project supports one or more of the following priorities.

Healthy Living and Well Being

4.2 We aim to support residents to live happy, healthy and fulfilled lives, with access to the care and support services they need. We are particularly interested in projects which aim to reduce isolation, build connections and friendships

Environmental Improvements and Sustainability

4.3 We aim to make our neighbourhoods greener and cleaner places to live and to assist our residents to live more sustainable lifestyles. We are particularly interested in projects which actively engage people in improving spaces or places as well as projects which support greener lifestyle choices.

Young People, Children and Older People

4.4 We want to support the most vulnerable in our communities. We want to provide opportunities for our young people and to ensure our elderly are supported.

4

Employment Training and Skills

4.5 We aim to support residents in developing skills and accessing training opportunities in order to enter into, and sustain, employment. We are particularly interested in projects which aim to increase employability, gain qualifications and help people progress into work. We also aim to ensure that everyone is able to access the basic financial services products that are needed to participate in a modern society. We are interested in projects which increase the confidence of people to manage their money.

Community Support and Safety

4.6 We aim to ensure that our communities are safe places to live and are equipped with the infrastructure they need to shape their aims and aspirations. We are particularly interested in projects which aim to bring the community together and to make our communities feel safer and increase a sense of belonging and pride.

DECISION MAKING

5.1 Decisions on whether projects will be supported are made by the Board of HHP.

APPLICATION PROCESS

6.1 Applicants to the fund will be required to submit an application form providing details of their project and group.

6.2 All applications will be assessed and a report will be presented to the next meeting

of the HHP Board following completion of this assessment. 6.3 Applicants will be notified of the decision as quickly as possible thereafter.

CONDITION OF GRANT

7.1 It will be a condition of any grant offer that the applicant will work with officers to record expenditure, to monitor progress and to share stories. Officers will work to support successful applicants to make sure that the project is a success.

7.2 The grant offer will set out the payment arrangements for the grant and the

timescale for the grant.

INELIGIBLE PROJECTS

8.1 The following activities are not eligible for funding and will not be supported.

Routine repairs or maintenance.

Political or religious activities.

Ongoing running costs e.g. insurance, utility costs, rent, salaries

Funding individuals or projects which only benefit one person

Fixtures and fittings e.g. chairs, tables etc. unless the project cannot run without the specialised equipment

Sponsorship or projects which are motivated mainly by marketing or branding

Alcohol

5

EQUAL OPPORTUNITIES

9.1 HHP is committed to providing fair and equal treatment to all its customers and service users and will not discriminate against any individual, household or group on the grounds of:

sex or marital status;

race or colour;

disability;

age;

sexual orientation;

language or social origin;

employment status or;

other personal attributes, including beliefs or opinions such as religious beliefs or political opinions.

POLICY REVIEW

10.1 This policy will be reviewed every 3 years in line with the Policy Review Schedule.

Making our house your home

Dena Macleod 28-Apr-17

BOARD ITEM 19

A&R ITEM 14

POLICY REVIEW JUNE 2017

Audit & Risk 27 June 2017 Board 28 June 2017


Purpose of Report

1.1 To consider and approve the policies due for review this month.

Summary

2.1 The Board has agreed a schedule for reviewing its policies and there were four

policies due for review this month.

2.2 The following policies have been revised and can be found at Appendices 1 to 4:

• Equal Opportunities;

• Training and Development;

• Risk Management; and

• Repairs and Maintenance.

2.3 There have been minor changes made to all the polices to reflect current

management arrangements and changes to legislation. The exception to this is the

Repairs and Maintenance policy which is being updated for lettable standard and

repairs target. The Repairs and Maintenance policy will require to go out for

consultation before being approved.

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 Audit & Risk Committee consider the revised policies and

recommend approval to the Board.

Board approve the:

a) Equal Opportunities Policy at Appendix 1;

b) Training & Development Policy at Appendix 2;

c) Risk Management Policy and Strategy at Appendix 3; and

d) Repairs and Maintenance Policy at Appendix 4 for consultation.

APPENDIX 1 Equal Opportunities Policy

APPENDIX 2 Training & Development Policy

APPENDIX 3 Risk Management Policy and Strategy

APPENDIX 4 Repairs and Maintenance Policy (To Follow)

Background Papers:

Writer of Report: Dena Macleod


Competence

Financial

5.1 The costs involved in implementing the revision to the policies are:

Policy Costs Notes

Equal Opportunities None

Training and

Development

Training Budget for 2017/18

Risk Management None

Repairs and

Maintenance

To be

determined

once lettable

standard

agreed

The voids budget for 2017/18 was

increased by £70K to allow for an

improved lettable standard. The revised

lettable standard may require funding in

excess of the £70K allocated.

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 4

The Governing Body bases its decisions on good quality

information and advice and identifies and mitigates risks

to the organisation’s purpose

4.3 The governing body identifies risk that might prevent it from achieving the

RSL’s purpose and has effective strategies and systems for risk management

and mitigation, internal control and audit.

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.


Report Details

Background

9.1 The Board has put in place a system for reviewing all its polices which is generally on a

three year cycle. There are a number of polices due for review at each Board

meeting and where there are only minor amendments the policies will be collated

into one report.

Policy review

9.2 Minor changes have been made to the policies with the exception of the Repairs and

Maintenance Policy which has been updated for proposed changes to the lettable

standard and repairs targets.

9.3 The Repairs and Maintenance Policy will be issued for consultation and a final policy

brought back to the Board in September 2017 for approval.

Item Description Changes

1 Equal Opportunities Minor

2 Training and Development Minor - removed Para on change

management which is no longer

relevant.

Updated Para 13 to replace Skill

Seekers with Modern

Apprenticeships

3 Risk Management Minor

4 Repairs and Maintenance Lettable standard improved and

change to repairs targets

�Equal Opportunities Policy

Effective Date: � July 2017

Review Date: � June 2020

Approved by HHP Board: 28 June 2017

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APPENDIX 1

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EQUAL OPPORTUNITIES POLICY

INTRODUCTION

1.1 HHP is committed to promoting an environment of respect, understanding,

encouraging diversity and eliminating discrimination by providing equal

opportunities for all. HHP has a consistent approach to promoting equality

through the entire employment relationship from the recruitment process to

the termination of employment.

1.2 All employees are required to abide by this policy which covers discrimination

by and towards members of the public, governing body, contractors and

staff from other agencies.

AIMS

2.1 This Policy aims to:

• Integrate equality and diversity practices.

• Ensure that employees are treated with fairness and respect from each

other, members of the public, governing body members and contractors.

• Require HHP to implement fair employment practices ensuring that job

applicants and employees receive equal treatment.

• Ensure that people are recruited and employees promoted solely on the

basis of their own merit, ability and potential.

• Promote an environment appropriate to the needs of those from all walks

of life and a culture that respects and values difference and promotes

dignity, equality and diversity.

BACKGROUND

3.1 U.K Governments have been addressing equality and diversity issues for many

years. As Government tackled inconsistencies in previous legislation the new

Equality Act 2010 was introduced. The introduction of the Act saw previous

discrimination legislation abolished and replace with one single piece of

legislation. This policy is compliant with the current legislation.

DEFINITIONS

Diversity

4.1 HHP is committed to valuing and managing people’s differences to enable

all employees to contribute and realise their full potential.

4.2 Making sure people are treated fairly and given fair chances.

4.3 It is not about treating everyone in the same way but there is recognition that

people’s needs are met in different ways. Equality focusses on areas covered

by the law and described as Protected Characteristics of race, sex, disability,

age, gender reassignment, marriage and civil partnership, pregnancy and

maternity, religion or belief and sexual orientation.

2 | P a g e

Direct Discrimination

4.4 Treating someone less favourably than another based on a protected

characterisation.

Indirect Discrimination

4.5 A policy, practice, procedure or criteria that applies to everyone in the same

way but might disadvantage a particular protected group and which cannot

be justified in relation to the job.

Harassment

4.6 Conduct that violates a person’s dignity or creates an intimidating, hostile,

degrading, humiliating or offensive working environment. The intention of the

perpetrator is irrelevant. It is the impact which determines whether

harassment has taken place.

Implementation of the Policy

4.7 While the Director of Finance & Corporate Services will be responsible for,

implementing the operation of this policy, it is the responsibility of every

manager, supervisor and employee to ensure that the terms of the policy are

observed. All new employees and Board Members will receive training on this

policy as part of the induction process. Copies of the policy are freely

available.

4.8 Appropriate training and guidance will be available to promote equality and

diversity among staff.

4.9 Breaches of the Equal Opportunities Policy will be regarded as misconduct

and will lead to disciplinary action.

RECRUITMENT POLICY

5.1 HHP’s Recruitment Policy is consistent with the Equal Opportunities Policy. All

staff involved at any stage in the recruitment and selection process will

receive equality and diversity awareness training. This is to ensure that

everyone involved in recruitment will not discriminate knowingly or

unknowingly by asking questions which may lead to discrimination.

TRAINING AND DEVELOPMENT

6.1 Training and development opportunities will be given to all staff according to

their job role. All employees must be able to participate and enjoy training

opportunities or activities without discrimination or fear of harassment.

MONITORING AND REVIEW OF POLICY

7.1 Responsibility for monitoring the application of this policy will rest with the

Chief Executive.

7.2 The policy will be reviewed every three years with amendments being made

as appropriate and communicated to all staff and relevant stakeholders.

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POLICY REVIEW

8.1 Policies are regularly reviewed to take account of

• Changes in legislation, rules, regulations and guidance

• Changes in the organisation

• Best practice

8.2 The policy will be reviewed on a three year cycle.

3

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HANGE HISTOR



2.00 Updated in line with legislative

changes February 2014 Angus Lamont

3.00 June 2017 Dena Macleod

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Word Interpretation




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]


Phone:0300 123 0773

�Training & Development Policy




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APPENDIX 2

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TRAINING & DEVELOPMENT POLICY

INTRODUCTION

1.1 The policy applies to all employees of Hebridean Housing Partnership (HHP).

AIMS

2.1 Employees are the organisation’s most valuable asset. The aim of this policy is

to develop a well managed, corporately driven, training and development

initiative which will maximise the employee’s personal development along

lines which will aid the Partnership in meeting its objectives and maximising

corporate performance.

POLICY PRINCIPLES

3.1 The Partnership is fully committed to the training and development of all its

employees and Board Members. We are committed to the principles of

lifelong learning and recognise that, in times of change, the adaptability and

flexibility of the workforce will help determine whether we thrive or fail.

Lifelong learning is about helping all individuals, of all backgrounds and

abilities, to enhance their employability in a rapidly changing economy and

developing individuals’ self fulfilment through their achievements. HHP will

strive to:

(i) offer consistently high quality learning opportunities.

(ii) promote equality and widening of access to training and

development opportunities.

(iii) increase the use of e-learning and opportunities to learn on-line.

(iv) continuously seek out new methods and forms of learning.

(v) seek opportunities to work with local training providers and University of

the Highlands and Islands to provide training, where appropriate.

3.2 The Board is committed to the training and development of all staff. Training

and development will be used as a means of supporting change and

improving quality. HHP will communicate to their staff how their work as an

individual contributes to the achievement of the overall business objectives.

The Training Policy will be aligned to the Partnership’s Business Plan.

3.3 The Board will positively encourage equal access to training and

development from all staff.

CORPORATE TRAINING PLAN

4.1 The Partnership will develop a Training Plan that will define how the

development needs of the organisation will be met over the period of the

plan, within budget parameters and in line with business planning objectives.

4.2 Progress towards meeting those needs will be reviewed on an annual basis.

The Staff Appraisal Procedure will contribute to the process.

4.3 Responsibility for assessing training needs rests with line managers at staff

level, whilst the Chairman is responsible for the Chief Executive’s assessment.

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4.4 Budget responsibility for training overall rests with the Chief Executive.

4.5 Corporate responsibility for the delivery of the Training Plan rests with the Chief

Executive.

INDUCTION TRAINING

5.1 All newly recruited staff will undertake a general induction course.

5.2 All staff newly recruited or transferred between departments will receive

appropriate departmental induction training.

5.3 All staff newly recruited or transferred between departments will participate in

the Staff Appraisal Process to identify training needs. The outcome will be an

introductory individual training plan.

5.4 All staff will receive mandatory training in Health and Safety Awareness.

INDIVIDUAL TRAINING PLANS

6.1 All staff will receive the necessary training to be able to carry out the duties

required of their post effectively.

PERSONAL DEVELOPMENT

7.1 Everyone has a responsibility for his own personal development.

7.2 All staff should:

(i) take individual responsibility and ensure they develop the skills needed

to achieve their goals or objectives.

(ii) identify their strengths and weaknesses and how they can build on

strengths and address weaknesses.

(iii) set clear development objectives – making objectives achievable,

realistic and challenging.

(iv) consider the needs of the organisation – including objectives to

develop as a team member.

(v) allow sufficient time and resources to achieve development

objectives.

(vi) participate in an annual performance appraisal and six-monthly

reviews of progress and performance against objectives with their

Manager and revise plans as appropriate.

(vii) compare self-perception with feedback on their performance from

their Manager and seek to improve future performance as a result.

7.3 Managers will analyse business plan objectives and through the appraisal

process will identify training needs required to enable staff to deliver the

objectives.

7.4 As part of its commitment to Equal Opportunities, the Partnership will ensure

that staff are exposed to awareness training in relation to disadvantaged

groups.

7.5 Training records will be maintained for all staff.

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PERFORMANCE APPRAISAL

8.1 Performance Appraisal is critical to both manager/staff. Staff must be

engaged in the process for it to have validity. Encouraging self-examination

and some element of self-target setting best enthuses motivation and

commitment.

8.2 The Partnership has a Performance Appraisal Scheme.

DEVELOPING STAFF: MANAGEMENT RESPONSIBILITIES

9.1 Managers have a responsibility to ensure appropriate training & development

opportunities are made available for all staff. Managers should:

(i) involve staff in identifying their own development needs – and assist

them in identifying their own strengths and weaknesses.

(ii) discuss development needs and plans with staff and gain their

commitment in planning how to meet identified needs.

(iii) be clear about the objectives of development plans – these should be

relevant and realistic.

(iv) balance business needs with individual aspirations – plans should help

develop the skills required to meet current/future demands and career

aspirations.

(v) use available resources effectively – when developing plans with staff.

(vi) participate in an annual performance appraisal with staff and six-

monthly reviews of progress and performance to check against

objectives and revise plans as appropriate.

9.2 Training and development needs will be jointly agreed by Managers and staff

at appraisal interviews.

PROFESSIONAL MEMBERSHIP FEES

10.1 The Partnership will reimburse annual fees paid by employees for membership

of professional institutions subject to the following criteria:

(i) Membership must be directly relevant to the work of the Partnership.

(ii) Only one set of fees will be reimbursed where the employee is a

member of more than one institution.

(iii) Receipts for claims are to be submitted to and endorsed by the Chief

Executive/Board.

10.2 Payment will be made net of tax.

EQUALITY OF ACCESS TO TRAINING AND DEVELOPMENT

OPPORTUNITIES

11.1 All staff will have equal access to suitable training and development

opportunities.

11.2 All training and development opportunities will be communicated effectively

throughout the organisation.

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FURTHER EDUCATION AND VOCATIONAL TRAINING

12.1 Staff will be encouraged to consider a range of training and development

opportunities such as, further education, vocational training, short external

courses, in-house training, conferences and seminars, mentoring and

coaching.

12.2 Employees wishing to pursue part-time vocational courses directly relevant to

their career development with the Partnership will be given the opportunity to

discuss with their Manager any assistance which can be given.

12.3 Attendance on further education courses shall be at the recommendation of

their Manager and Executive Team.

12.4 When an employee is pursuing an approved course of study, he will be

eligible for financial assistance as detailed below:

(i) Full salary;

(ii) All prescribed course fees and other approved educational expenses

arising from employee’s attendance at a course;

(iii) All travelling expenses incurred arising out of the course and

associated practical placements;

(iv) Accommodation costs incurred for courses up to 5 days, up to a

maximum of the Partnership’s subsistence for absences of 24 hours or

more;

(v) Accommodation costs incurred for course over one week up to a

maximum of 24% of the Partnership’s subsistence rate for absences of

24 hours or more;

(vi) A meal allowance for lunch as per the Subsistence Rates, paid per day

to all trainees attending block release courses over one week; and

(vii) A special claim form for claiming training expenses is obtainable form

the Personnel section. may be given with approved costs and fees.

12.5 Where possible, subject to the needs of the service, employees will be given

the opportunity to attend day release and appropriate block release courses

leading towards approved qualifications.

12.6 In order to qualify for assistance it will be necessary for employees to have

their manager’s authorisation as to the course of study which they wish to

undertake.

12.7 Continuity of assistance will be subject to satisfactory performance on the

part of the employee concerned.

12.8 The fees paid are to be regarded as a loan. The loan will be written off 12

months following the relevant course/examination. The Partnership will have

a right to require the employee to refund the full or a proportion of the cost of

fees where the employee voluntarily leaves their employment within those 12

months, or where the employee or the training institution prematurely

terminates their course or where the employee is dismissed summarily from

their employment.

12.9 Withdrawal from a course will result in repayment of the fees paid on the basis

above, unless:

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(i) the employee, on presentation of written justification, has obtained the

Board’s agreement to withdrawal.

(ii) The employee has had to withdraw due to long-term sickness, maternity

leave or redundancy.

12.10 Where financial assistance is given for the full purchase cost of reference

books these books will, upon completion of the course or relevant section of

the course, become the property of the Partnership and will be placed in the

library.

MODERN APPRENTICE

13.1 The Partnership is committed to providing training programmes for young

people. The training programmes provided for young people will be planned

and incorporate recognised qualifications, relevant training and practical

experience.

13.2 An employee who:

(i) is aged 16 or 17;

(ii) is not receiving full-time secondary or further education; and

(iii) has not attained qualifications from secondary education

may take time off during working hours in order to undertake study or training

leading to a relevant qualification. If an employee is 18 years old and is

undertaking study or training leading to a relevant qualification, and began

this course of study prior to becoming this age, the employee may also take

reasonable time off to complete the training or course of study.

PERFORMANCE MONITORING

14.1 In order to assess the impact of training and development on meeting

objectives and improving future effectiveness, the Partnership will:

(i) Review current training requirements of staff through Staff Appraisal

Process;

(ii) Seek to establish in advance the anticipated benefits of training;

(iii) Undertake post training evaluation;

(iv) Assess contribution of training and development to the achievement of

the organisation’s objectives and performance; and

(v) Use the results of the evaluation process to assess future training

requirements.

14.2 Board to receive annual report on expenditure of training budget against

expenditure and an evaluation of the outcomes of the training plan and how

the training has contributed to the achievement of the Business Plan

objectives.

COMPLAINTS

15.1 Individuals who feel they are unjustifiably denied a career development

opportunity may use the grievance procedure to pursue their complaint.

REVIEW

16.1 The Board will review the Policy every three years.

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HANGE HISTOR



3.0 No changes made 06.01.14 Seonaid Paton

4.0 Deletion of Trade Union training as

covered in the Special Leave Policy 13.06.17 Seonaid Paton

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Word Interpretation




Personnel Section PA and Corporate Governance Admin Officer








Phone:0300 123 0773

�Risk Management Policy &

Strategy




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APPENDIX 3

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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.

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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 Management 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 The Chief Executive will ensure that appropriate officers will provide the Audit

& Risk Committee with an annual review of risk which will comprise an

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assurance report which reviews the risk management framework and the

operation of the process, including any key risks that have materialised.

10.6 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.

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

Strategy to Audit & Risk

Committee

Chief Executive

Each meeting of Audit & Risk

Committee will review the Risk

Register

Risk Co-ordinator &

Management Team

December Agree risk capacity for next

business year

Management Team &

Board Business Planning

Day

February Report on risk capacity from

Business Planning Day to Board

Management Team/Risk

Co-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.

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HANGE HISTOR



2.0 Revised Risk Management Cycle

Timetable June 2014 A Lamont

3.0 Minor Amendments June 2015 A Lamont

4.0 Review and no changes June 2016 A Lamont

5.0

Minor Amendments to reflect

changes in management

arrangements Par 9.2

June 2017 Dena Macleod

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Word Interpretation











Phone:0300 123 0773

REPAIRS & MAINTENANCE POLICY

Section Operations

Date Policy Approved by Board 25 June 2014

Review Period Every 3 Years


Version 2.1

RSL No.359; A Registered Charity (No. SCO35767); A Registered Society under the Co-operative and Community Benefit Societies Act 2014

Reg No 2644R(S); Registered Social Landlord Reg No:359; Registered Property Factor: PF000183

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ITEM 19 - APPENDIX 4

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CONTENTS

REPAIRS & MAINTENANCE POLICY .....................................................................1

Policy Change History ...................................................................................1

Interpretations & Abbreviations .......................................................................2

Introduction ..............................................................................................3

Aims .......................................................................................................3

LEGAL OBLIGATIONS .....................................................................................4

RECORD KEEPING ........................................................................................4

INFORMATION TO TENANTS .............................................................................5

Reporting Repairs ............................................................................................................................. 5

Tenants Handbook ............................................................................................................................ 5

RECHARGEABLE REPAIRS ................................................................................5

TENANTS’ RIGHT TO CARRY OUT ALTERATIONS AND IMPROVEMENTS ............................6

RIGHT TO COMPENSATION FOR IMPROVEMENTS .....................................................6

CATEGORIES FOR REPAIR AND MAINTENANCE ........................................................6

Emergency Repairs – 4 hours or 24 hours ..................................................................................... 7

Urgent Repairs – 3 days or 7 days .................................................................................................. 7

Routine Repairs – 20 days ................................................................................................................ 7

Planned Maintenance ....................................................................................................................... 8

Long Term Planned Maintenance and Improvements ................................................................ 8

STOCK CONDITION SURVEY .............................................................................8

CHANGE OF TENANCY ...................................................................................8

RIGHT TO REPAIR ........................................................................................8

Exceptions .......................................................................................................................................... 9

TENANT CONSULTATION ................................................................................9

INSURANCE ................................................................................................9

HANDYMAN SERVICE ................................................................................... 10

PROCEDURES FOR REPAIRS AND MAINTENANCE .................................................... 10

AIDS & ADAPTATIONS .................................................................................. 10

BUDGETING ............................................................................................. 10

CONFLICT OF INTEREST ............................................................................... 10

Review................................................................................................... 10

BREACHES OF POLICY ................................................................................. 10

1



2.1

Revisions to incorporate Board decisions and position with factoring. Revisions to ensure consistency with other policies.

2



Word Interpretation




All references to the masculine gender in this policy shall read as equally applicable to the feminine gender

3

REPAIRS & MAINTENANCE

INTRODUCTION

1.1 The Hebridean Housing Partnership, referred to as ‘the Partnership’, believes that the quality of its maintenance service is of great importance, not only to ensure the satisfaction of tenants but to protect the value of its housing stock.

1.2 Maintenance Procedures set out how the Maintenance Policy will be implemented and are contained in a separate document.

1.3 The Partnership’s policy on the procurement of maintenance works is detailed in the Procurement Policy. The policy details the procurement route options and the selection and appointment of consultants and contractors.

AIMS

2.1 The Partnership recognises that the quality of the repair and maintenance service provided to tenants is extremely important and the service provided must be responsive, efficient and cost effective.

2.2 The aim and key features of the repair and maintenance policies will be:

(i) to ensure that the Partnership discharges its legal responsibilities for repairing and maintaining its properties;

(ii) to maintain clear property records together with a system for recording reported repairs, works instructed, any insurance details, completion dates and final costs;

(iii) to ensure that tenants and factored owners are fully informed of both their responsibility and the Partnership’s responsibility for repairs and maintenance;

(iv) to determine clear rules for the re-charging of repairs where appropriate;

(v) to ensure that tenants are fully informed of the procedures for reporting repairs and of the procedures for seeking approval to carry out tenants’ improvements and the right to compensation;

(vi) to ensure the Partnership confirms with the Right to Repair

(vii) to ensure that the Procurement for Building Works is adhered to for the selection of contractors, the selection of procurement routes and the procedures for inviting and accepting tenders;

(viii) to ensure that aids and adaptations are administered in line with the Special Needs Housing Policy and the Occupational Therapy referral process;

(ix) to agree clear delegation of responsibilities for the authorisation, execution and monitoring of works. The Repairs and Maintenance policy will allow for emergencies to be dealt with effectively;

(x) to ensure that the Partnership’s performance in carrying out its repair and maintenance functions is adequately managed;

(xi) to ensure the policy is effectively discharged the Partnership will appoint a senior manager with this responsibility;

(xii) to ensure that all works are carried out within an agreed budget that is monitored periodically;

4

(xiii) to maintain the probity of the Partnership, due regard will be given to any conflicts of interest arising from the implementation of repairs and maintenance; and

(xiv) to ensure that the Repair and Maintenance Policy remains adequate for its purposes the Partnership will review the policy every three years.

LEGAL OBLIGATIONS

3.1 The Partnership will meet all its legal requirements in terms of repairs, maintenance and also improvements carried out by tenants and will comply in all respects with the Housing (Scotland) Act 2001 and any amending or superceding Regulations.

3.2 The respective liability of landlord and tenant for repairs and maintenance will be clearly defined in the Minute of Lease or Scottish Secure Tenancy Agreement, a copy of which will be provided to all tenants. Any disputes regarding the respective liability for repairs and maintenance will be referred to the Board of Management for consideration.

3.3 The Partnership will fully support its tenants’ rights to carry out improvements as part of its policy of maintaining its houses to the highest standard and will seek to assist any tenant wishing to avail him/herself of this right.

3.4 All operations carried out by the Partnership will comply with the appropriate Building Regulations 1948 and any amending or superseding Regulations.

3.5 The Partnership is legally required, through the Scottish Secure Tenancy Agreement, to do the following:

Keep houses in a condition which is habitable, wind and watertight and, in all respects, reasonably fit for human habitation. Ensure all repairs will be carried out within a reasonable period.

Keep in repair the structure and exterior of all dwellings and common areas;

Keep in repair and proper working order installations for the supply of water, gas, electricity, sanitation, space and water heating; etc

Undertake tenant consultation;

Permit reasonable tenants’ alterations and improvements;

Offer compensation for improvements at termination of tenancy

RECORD KEEPING

4.1 The Partnership will maintain the following records:

(i) A record will be maintained on a scheme by scheme basis to record details of the specification, fittings and fixtures of each house.

(ii) A record will be kept for each property and each scheme detailing:

Details of repairs reported and/or maintenance

Details of repair and maintenance instructions issued to Contractors

Cost of repairs and maintenance

Details of recoveries due from tenants/insurance company/others

(iii) A record of tenant improvement applications, together with supporting documentation on approvals, inspections, etc.

5

(iv) An insurance Register will be maintained to record the level of cover for each property and the date of policy renewal.

INFORMATION TO TENANTS

5.1 The Partnership recognises that it has a duty to keep tenants informed of repair procedures and tenant/landlord obligations in respect of repairs and maintenance. Information for tenants will be clear and precise and the information provided will incorporate:

(i) the Partnership’s Policy on Repairs and Maintenance.

(ii) The Scottish Secure Tenancy Agreement.

(iii) Periodic Circulars on repairs procedures, right to repair, right to compensation for improvements, etc.

Reporting Repairs

5.2 The Partnership will provide an emergency service for reporting repairs. During working hours general and emergency repair requests can be reported to any of the area offices. All tenants requesting a repair will be given a repair request number that the caller can use to follow through a repair.The Partnership has an arrangement with Comhairle Nan Eilean Siar to provide a service that will allow all emergency repair requests outwith working hours to be reported and actioned via the Faire control centre that is staffed round the clock.

5.3 The Partnership has an appointment system for routine repair works.

Tenants Handbook

5.4 The Partnership will publish and inform all tenants of their responsibilities and the Partnership’s responsibilities in carrying out repairs and the Partnership’s policy and rules in relation to repairs and maintenance.

5.5 The Partnership will publish information on performance against repairs and maintenance targets annually.

RECHARGEABLE REPAIRS

6.1 The Partnership recognises that there may be occasions when a tenant requests that the Partnership carry out a repair that is the responsibility of the tenant. The Partnership may agree to such requests where there is Health and Safety concern for the well being of the tenant or other occupants of the property.

6.2 Invoices for such work will be charged out to tenants on a monthly basis.

6.3 Rechargeable repairs are these where damage has been wilfully or negligently caused the property by the tenantsm their household or by visitors to their home. Damage which is due to fair wear and tear will not be recharged.

6

TENANTS’ RIGHT TO CARRY OUT ALTERATIONS AND IMPROVEMENTS

7.1 The Partnership shall fully support its tenants’ right to carry out improvements. Applications to carry out improvements (other than internal decoration) shall be made in writing to the Partnership and considered by the relevant Senior Manager and approval shall not be unreasonably withheld.

7.2 Permission will normally be granted subject to the following conditions:

(i) The Partnership must be satisfied that any proposed improvements will meet relevant standards of safety and workmanship.

(ii) The work will not detract from the future letting of the property.

(iii) Upon receipt of an application, the Partnership will normally advise the applicant of whether they can proceed within twenty-eight days.

(iv) An inspection will be required before any work proceeds and will be required upon completion.

(v) On termination of a tenancy, the Partnership shall have the power to make a payment to the tenant that it considers to be appropriate in respect of any work carried out by the tenant.

(vi) If an applicant is not satisfied with the outcome of an application to carry out an improvement, then the tenant shall have the right to question that decision through the Partnership’s Complaints Policy.

RIGHT TO COMPENSATION FOR IMPROVEMENTS

8.1 In the Housing (Scotland) Act 2001 Section 30 imposes the duty for landlords to compensate for qualifying works.

When the tenant has carried out certain improvement works with the consent of the Partnership they are entitled to be compensated for the cost of those works when the tenancy comes to an end.

8.2 “Qualifying Works” are only those works which were started after 30 September 2002.

8.3 Compensation is not payable when any of the following criteria apply:

The work was carried out without the Partnership’s consent

The value of work is less than £100

The tenancy has been terminated by a court order

The tenant is exercising Right to Buy

8.4 A tenant must lodge their claim for compensation in the period from 28 days before termination of the tenancy to 21 days after.

The Partnership will respond within 28 days and will assess the appropriate compensation based on the regulations that apply at that time.

CATEGORIES FOR REPAIR AND MAINTENANCE

Repairs and Maintenance Targets

7

9.1

Priority Completion target

Emergency Complete within 4 hours or 24 hours

Urgent -Priority 1 Complete within 3 days

Urgent - Priority 2 Complete within 7 days

Routine Day to Day Repairs Complete within 20 days

The definition of repairs to be carried out in these categories is set out below.

Emergency Repairs – 4 hours or 24 hours

9.2 This category will include any repair defined by the Right to Repair scheme or where there is a risk to health and safety or is required to avoid serious damage to property,

Eg. a) Electrical Fault

b) Water Burst or loss of water

Urgent Repairs – 3 days or 7 days

9.3 These are repairs which are defined by the Right to Repair scheme or which are

essential work which is needed to prevent or remove serious inconvenience to

tenants or which if not attended to quickly could result in damage to the property.

Routine Repairs – 20 days

9.4 These are repairs that do not fall into the emergency or urgent categories and which can wait a short time before they are dealt with.

Performance Management

9.5 A Perofrmance Management system is in place and performance will be measured on indicators including:

% completions within target

Tenant Satisfaction

Right First Time

Appointments arranged and kept

Quality of completed work

9.6 The Performance Management will develop and evolve. Performance measures will not be confined to the above.

8

Planned Maintenance

9.7 A 5 year planned maintenance programme will be implemented to maintain the fabric of properties and their environment and to take a preventative approach to maintenance. An annual cyclical maintenance programme will also be undertaken to fulfil legal requirements and protect Health and Safety. These works include

a) Gas Servicing (annually) ;

b) Air Source Servcing (annually);

c) Communal lighting, fire detection systems, stairlifts/hoists, door entry systems, communal TV/satellite systems (annually or more frequent);

d) Cleaning of gutters and downpipes (every 2 years); and

e) Flue Cleaning for solid fuel heating systems

Long Term Planned Maintenance and Improvements

9.8 This category will include works of replacement and/or renewal of fixtures and fittings to maintain and improve the housing stock for example:

a) Replacement of kitchen units

b) Replacement of bathroom fittings

c) Replacement of heating systems

d) Re-roofing

9.9 The relevant Senior Manager will prepare an annual long-term planned maintenance investment strategy for Board of Management approval.

STOCK CONDITION SURVEY

10.1 The Partnership will carry out a systematic condition survey every five years. The survey will be rotated across the stock to ensure all houses are visited. The information gathered will include the energy efficiency of the stock. The stock condition survey will inform the long-term investment strategy for maintenance.

CHANGE OF TENANCY

11.1 Before the commencement of a new tenancy the Partnership will inspect the house and identify any works necessary to make the house wind and watertight and reasonably fit for human habitation.

11.2 The Partnership will notify the tenant of any work that requires to be carried out where that work will not be complete before the tenancy commences.

RIGHT TO REPAIR

12.1 Under the Housing (Scotland) Act 2001, Scottish Secure Tenants and short Scottish secure tenants have the right to have small urgent repairs carried out by their landlord within a given timescale. This is called the Right to Repair scheme. The scheme covers certain emergency or urgent repairs up to the value of £350. These repairs are known as ‘qualifying repairs.’

12.2 The Partnership must attend and make secure or provide a facility by the stated deadline or the tenant has the right to:

9

1. Instruct another contractor from the Partnership’s list of approved contractors to do the work;

2. Receive compensation. The amount tenants may be eligible for is calculated at £15 and then £3.00 for every working day in the period, commencing on the day after the last day of what would have been the maximum and ending with the day on which the qualifying repair is completed, subject to a maximum amount of £100.

12.3 Any outstanding debts to the Partnership will be deducted from any compentsation to be paid.

Exceptions

12.4 These rights do not apply if:

1. There are circumstances of an exceptional nature beyond the control of the landlord or the contractor who is carrying out the repair that prevent the repair being carried out.

2. The repair value is over £350 (the scheme only applies to small urgent repairs).

3. Access has not been available for the contractor or surveyor.

TENANT CONSULTATION

13.1 The setting of priorities for long term maintenance will involve tenants and will be taken forward in accordance with the Tenant Participation Strategy and in consultation with Registered Tenant Organisations.

13.2 Consultation will take place with tenants on any major review of the policy or significant changes in the way the services are delivered.

13.3 The specification of components incorporated in improvement programmes e.g. windows, doors, kitchen units and sanitary ware, will be to a high standard. Tenants will have the opportunity to participate in the improvement works to their homes by having an input into some of the works carried out to their homes, including:-

A choice of primary central heating fuel source from solid fuel, electric, mini bulk gas or mains gas (where available)

Customised kitchen layouts and specification

The opportunity to contribute financially to a higher specification for selected works e.g. fire surround, decorative standard.

The list is not intended as exhaustive and each contract will be considered on its own merits and appropriate tenant choices included in the contract.

INSURANCE

14.1 Where repairs are the subject of insurance claims, the insurance company shall be notified as soon as possible of the impending claim and the minimum requirements of the insurance company in terms of inspection, number of quotations, etc., will be complied with.

10

HANDYMAN SERVICE

15.1 The Partnership has an in-house handyman service throughout the islands to provide a fast and effective response to minor repairs, which are outiwth the scope of any contract and to provide an enhanced service to the elderly and disabled.

PROCEDURES FOR REPAIRS AND MAINTENANCE

16.1 The Partnership will develop detailed Procedures for Repairs and Maintenance which will include standard reports to the Board of Management, record keeping, recording of repairs, instructing works, , insurance procedures, decoration allowances, the repair of voids, rechargeable repairs, tenant satisfaction surveys, out of hours emergencies etc.

AIDS & ADAPTATIONS

17.1 The Partnership has will carry out aids and adaptations to existing properties to meet tenants’ special need subject to budgetary provision and support from Scottish Government.

BUDGETING

18.1 The Partnership will produce an annual maintenance and repair budget for all areas of expenditure, which will be approved by the Board of Management and reviewed quarterly in order that adjustments can be made, as required.

CONFLICT OF INTEREST

19.1 No Company may be used where any Director or Manager is a relative of any Board or Staff Member. The Partnership will at all times comply with Part 1 of Schedule 7 of the Housing (Scotland) Act 2001.

REVIEW

20.1 Policy is to be reviewed every three years. The Board of Management recognises that all policies and procedure should be reviewed regularly and monitoring of the effectiveness of the policies and procedures should be by considering periodic reports from staff.

20.2 The Board of Management shall receive the following reports:

(i) Planned maintenance Investment Strategy (Annually)

(ii) Performance against Investment Strategy (Quarterly)

(iii) Repairs and Maintenance Budget (Annually)

(iv) Budget – v – Actual (Quarterly) (‘Actual’ to include committed items)

(v) Repairs and Maintenance Performance against Targets (Every 6 months – Contract Service Review)

(vi) Repairs and Maintenance Tenant’s Satisfaction Survey (as required)

BREACHES OF POLICY

21.1 If a Board Member knowingly breaches the conditions of this policy this will be grounds for removal from Office in accordance with the Partnership’s procedures for removal of a Board Member.

11

21.2 If a staff member knowingly breaches the conditions of this policy this will be grounds for disciplinary action.

Iona France Page 1 of 2 16/6/17

Agenda Item 20

BOARD 28 June 2017

REVIEW OF CORPORATE REGISTERS: ENTITLEMENTS, PAYMENTS & BENEFITS, MEMBERSHIP, GIFTS & HOSPITALITY


PURPOSE OF REPORT

1.1 To assure 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.

SUMMARY

2.1 In order to ensure good governance, probity and transparency, HHP must keep a number of registers recording business transactions and working practices across a number of areas.

2.2 Registers are updated regularly and reviewed annually to ensure compliance in accordance with Rule 64.

2.3 This report is concerned with the following registers and seeks to give assurance to the Board that they are functioning appropriately:

• Membership Register;

• Entitlements, Payments & Benefits Register; and

• Gifts & Hospitality Register.

COMPETENCE

3.1 There is no financial constraint to the recommendation in this report being implemented. Legal aspects are detailed at 5.4.

RECOMMENDATIONS

4.1 It is recommended that the Board notes this review.

Background Papers HHP Rules and Standing Orders

Guidance Note 5: Regulatory Standards of Governance and Financial

Management

Writer of Report Angela Smith Tel: 0300 123 0773

Iona France Page 2 of 2 16/6/17

COMPETENCE

Financial 5.1 There are no financial constraints to the recommendation in this report being

implemented.

Legal 5.2 There is a legal and regulatory requirement to ensure that registers are kept by the

Partnership.

RISK

6.1 The risks of not keeping and reviewing registers could lead to the Partnership being in breach of statute and regulation. It could also lead to a perceived lack of transparency and probity from tenants and other stakeholders.

REPORT DETAILS

Membership Register

7.1 The Membership Register is fully up to date in accordance with Rule 64. Members’ names and addresses are detailed in addition to the names and addresses of the Office Bearers of the Partnership, their positions, and the dates they took and left office.

Entitlements, Payments & Benefits Registers

7.2 The Scottish Housing Regulator’s Guidance Note 5: Regulatory Standards of Governance and Financial Management does not prohibit payments and benefits to staff and connected persons, but requires that RSLs manage them within a clear policy framework to ensure transparency, honesty and propriety.

7.3 Payments and Benefits to employees and connected persons are controlled by the Entitlements, Payments & Benefits Policy and recorded in three registers, as follows:

• The Entitlements, Payments & Benefits Register (general) records instances of applications for housing or LIFT properties being made;

• The Entitlements, Payments & Benefits Register (special exceptions) records instances of benefits being granted, such as houses being allocated and ‘de minimis’ payments being made; and

• The Entitlements, Payments & Benefits Register (transactions) records any transactions between connected persons and, for example, contractors that may be on HHP’s Framework. Permissions are sought from the Chief Executive in instances like these and full disclosures made and retained on staff personal files.

7.4 All of the Entitlements, Payments & Benefits Registers are fully up to date.

Gifts & Hospitality Register

7.5 In May 2017 the Gifts & Hospitality Policy was discontinued as its requirements were fully covered by the Entitlements, Payments & Benefits Policy. Gifts and hospitality to and from the Partnership are now controlled by the Entitlements, Payments & Benefits Policy. The Gifts & Hospitality Register was retained for continuity and it is fully up to date.

7.6 Gifts to the Partnership are raffled and the proceeds are donated to local charities throughout the year.


Agenda Item 26

BOARD 28 June 2017

BUSINESS PLAN 2015/16 - 2019/20 - YEAR 3 MONITORING REPORT


PURPOSE OF REPORT

1.1 To enable the Board to monitor progress on the Business Plan Action Plan agreed in March 2017.

SUMMARY

2.1 The 5 Year Business Plan 2015/16 – 2019/20 was updated and approved by the Board on 15 March 2017.

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 Objectives Monitoring Report



BUSINESS PLAN OBJECITVES- MONITORING REPORT 2015/16 TO 2019/20

OBJECTIVE 1 - Placing tenants at the centre of everything we do

REF ACTION REQUIRED MILESTONES TIMEFRAME LEAD OFFICER PROGRESS

1.1 Provide opportunities for tenants to engage in service review and design

Annual report of opportunities provided


Work ongoing with Western Isles Housing Association Communities Forum. Focus group meeting held on Repairs – April & May 2017.

1.2 Continue to support and work with Western Isles Housing Association Communities Forum to ensure tenants voices and views are heard

Review of Tenant Participation Strategy


Completed June 2016.

Hold tenant events in Stornoway, Tarbert, Barra, Balivanich and North & South Uist

Annually Area Managers & Service

Development Manager

All events for 2016 held.

Event held in Stornoway – May 2017 and events being planned for Uist and Barra.

Review staff resource for tenant involvement

May 2017 Service Development

Manager

Contract for renewal of tenant participation support tendered and TPAS appointed – April 2017.

Tenant Participation Action Plan-delivering key objectives

September 2014

Service Development

Manager

Completed. Reviewed annually. Next review due Sept 2017.

1.3 Engage wider community Contribute actively to Community Planning Partnership Management and Outcome Groups

Chief Executive & Director of Operations

Membership of CPP, Health & Wellbeing & Communities sub group.

OHCPP Board Member Chief Executive Member of Partnership and Population Sub Group.

APPENDIX 1



Priority Outcome Group Chief Executive Membership of the three priority groups

1. Sustainable Population Priority Group

2. Sustainable Economic Growth Priority Group

3. Improving Quality of Lift Priority Group

By Executive Team.

Chief Executive Membership of Child Protection Committee.


Membership of Health & Social Care Planning Group.

1.4 Build partnership and identify further opportunities to improve life outcomes for tenants and residents

Opportunities identified Director of Operations

Work ongoing on poverty awareness through Poverty Action Group and Welfare Reform Officers Group.

Lobbying of SSE ongoing with partners locally and Highlands & Islands Group.

Clauses and initiatives in connection with NHS, Skills Scotland and community groups incorporated into 2015-19 Investment Framework.



1.5 Seek funding opportunities to support service development

Ongoing

1.6 Develop customer centered culture in individuals and teams

Team building day held June 2017 Executive Team Team Day held 7 June 2017 – feedback to be collated.

1.7 Review the current structure of Board Membership in May in light of ONS classification

Rules Review May 2017 Chief Executive Completed.

Rules Update Sept 2017 Chief Executive Report with changes discussed at Board.


OBJECTIVE 2-Investing income in a sustainable way


2.1 Better understand the needs of our tenants by improving the collection and the use of customer profile data and thereby target efforts to assist maximizing benefit uptake and manage introduction of Universal Credit

Customer profiles for tenants affected by Bedroom Tax

February 2018 Service Development

Manager

Data being collected at tenant contact.

Process to be developed.

Profiles for impact of Universal Credit

February 2018 Service Development

Manager

2.2 Develop IT systems to enable recording and management of customer data

IT system in place February 2018 Service Development

Manager

Project plan in place and on schedule.

2.3 Use Tenant Participation Development Services from TPAS to create communication and involvement mechanisms

Mechanisms in place Annual review of strategy

November 2017


Contact made with groups and Community Associations.

Informal tenants group set up.

TPAS social media page set up.

Focus Group in place.

2.4 Carry out follow up Tenant Satisfaction Survey Action Plans

Action Plan to Board November 2015

Service Development

Manager

Completed

Deliver Plan November 2016

Service Development

Manager

Completed



2.6 Carry out Tenant Satisfaction Survey

Survey complete August 2018 Service Development

Manager

2.7 Work with partners to deliver the affordable warmth strategy for our tenants

Fuel poverty report November 2017

Investment Manager

Actions largely complete.

Partnerships in place with SSE and Citrus and local agencies.

2.8 Identify further works to improve energy efficiency of homes and seek to fund a programme to deliver this

Develop and cost proposals for next stage of insulation works

Investment Manager

Complete. Further measures being evaluated to improve under-floor insulation.

Window double glazing programme complete

2016 Investment Manager

Complete

Insulation programme within framework

2016-2019

Asset & Contracts Manager

Additional works being carried out using Eco/Government funding.

2.9 Action Plan for SHQS abeyances and exemptions

Abeyances to be dealt within time frame of investment plan

2016-2019 Investment Manager

Abeyances being addressed as opportunity arises.

Exemptions Investment Manager

Heating programme continues to address exemptions

Programme excluding abeyances

Investment Manager

2016/17 complete. 2017/18 works ongoing

2.10 Continue to strengthen partnership working with CNES, TIG, Greenspace, community organisations etc

6 month/annual review for feedback

Chief Executive & Director of Operations

Members of Health & Social Integration Planning group

Regular meetings in place with TIG/CNES

Members of Western Isles Fuel Poverty Action Group and ESCO



Energy Monitoring Bid submitted to Local Energy Scotland in collaboration with Greenspace.

Working with Community Trusts.

2.11 Engage with CNES and other Community Planning Partners to identify housing requirements for future population demographic projections

Contribute to development of Local Housing Strategy and highlight HHP priorities

Contribute to LOIP

July 2017 Chief Executive &


Participation in MOWG.

Member of Community Planning Partnership Population Workgroup.

Housing needs assessment being updated to inform Business Plan. Can’t be updated until Local Housing Strategy completed.

2.12 Ongoing work to co-ordinate all strategic plans in relation to housing

Meeting held with Chair of Housing & Communities Committee.

2.13 Contribute to Health & Social Integration Plan

Participate in Health & Social Care Integration Forum

March 2016 Chief Executive Membership of Health & Social Care Planning Group. Political feed in to new build programme – special needs.

Business Planning Session January 2016

Executive Team Commitment in Business Plan update Year 2.

2.14 Develop and agree Asset Management Strategy

Review Asset Management Strategy

Strategy in place

Annual review undertaken

May 2016

May 2017

Investment Manager & Asset

& Contract Manager

Complete.

Update report to Board – May 2017.

2.15 Work with partners to address fuel poverty

Reduce % of tenants in fuel poverty from 63% to under 60%

Re-survey in 2017

Investment Manager

Membership of ESCO.



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.

Engagement with key stakeholders to inform decision

Meetings held with OFGEM via Investment Working Group and CNES and TIG invited to contribute.

Working to support CNES with lobbying of SSE.

Working with Highlands & Islands Group to pursue projects.

2.16 Prepare Action Plan for the Energy Efficiency Standard for Social Housing (EESSH)

Plan agreed

Measured through ARC on a yearly basis

Achieve EESSH by 2020

Review in 2017

Investment Manager

EPC’s issued after every heating replacement, C.O.T and insulating works.

S.C.S will add additional EPC information.


OBJECTIVE 3 – Delivering continuous improvement


3.1 Complete Self Assessment Plan

Self Assessment inspection

Plan complete Inspection November

2015


Completed. Accreditation received 1 December 2015

3.2 Re-assess self assessment methodology

Decision taken February 2017 Corporate Governance Manager

HHP will begin to work towards Level 2 Accreditation with group self assessment to be completed with Quality Scotland on 19 July 2017.

3.3 Implement new performance measures agreed by Finance Working Group linking performance with resources

New P.I Report – more in line with ARC requirements

Executive Team

agreement November

2015

Update


Some financial performance measures include in Resources Annual Performance Report.

New reports in place and we are seeking feedback from Board and staff regarding use etc.

3.4 Arrange to visit 2 of the top performing RSL’s in peer group to benchmark X P.I

Benchmarking report revised targets

September 2017


Executive Team will select the areas to be benchmarked.


OBJECTIVE 4 – Providing efficient effective housing services of high quality


4.1 Improve core service performance on range of indicators to achieve top quartile performance

Arrears < 2.5% of gross debit (to be reviewed as Welfare Reform develops)

Quarterly Area Manager Year end figure of 1.7% for current tenants.

Void loss < 0.8% Monthly & End of Year

Area Manager Ahead of target when low demand excluded. Low demand is having significant negative impact on performance.

Average re-let time (excluding difficult to let less than 20 days)

Monthly & End of Year

Area Manager Average re-let @ 16 days in 2016/17.

Performance continues to be affected by low demand.

Repairs on target > 95% On contractual target

Reviewed monthly & annually

Asset & Contracts Manager

Contractual Performance at 98% on target.

Reporting systems being revised to enable reporting from Active H system.

4.2 Report on all indicators that are in top quartile

Report provided September Corporate Governance Manager

Prepared for Business Plan in February 2017.

4.3 Improve customer access to information and service

Further develop website to provide better information, improve accessibility to services – on-line services available

December 2016

I.T Officer

Corporate Resources Manager

Website has been rebuilt.

New added functionality added for improved mobile phone access.



4.4 Empower individuals to deliver for customers

Review delegated authorities

Refresher event on delegated authorities for all staff

June 2017 Executive Team Meeting with Manager to review and implement.

4.5 Improve performance reporting and management systems to provide a tool to drive performance

75% of relevant ARC reports from Active H for ARC submission 2017

31 May 2017 Corporate Governance Manager & Service

Development Manager

Working on I T system reporting to enable more effective control of accessing month-end data.

4.6 Achieve Committed to Excellence accreditation

Implement Self Assessment Action Plan

Review progress

Inspection November

2015

Executive Team

Corporate Governance

Officer

Accreditation received December 2015.

4.7 Repairs Service Review (Part of wider review of services which are provided externally)

Instigate long term project on review of future service.

Team in place to review bringing repairs service in house

2020 Director of Operations

Project to be established.

4.8 Improve services to factored properties and transparency of charges.

Written procedure in place

Visit other Housing Associations experienced in factoring

March 2017

December 2017

Service Development

Manager & Area Manager

Process review ongoing.



4.9 Value for Money – develop approach

Value for Money Strategy prepared

31 July 2017 Director Finance & Corporate Services

Ground work on measure underway.

4.10 Develop measures/definitions of effectiveness and efficiency

Publish service standards and targets as part of Charter reporting

30 September 2017

Service Development Manager & Finance &

Business Services Manager

Tenant Report published October 2016.

4.11 Publicise quality standards for customers

To be incorporated into above & leaflets for each service provided as they are developed

By 31 August each year

Service Development Manager & Corporate Governance Manager

Tenant Report published October 2016.

4.12 Identify cost of implementing proposed rent structure

Decision taken on whether implementation is affordable


On hold due to Universal Credit.

4.13 Consult on proposed rent structure

To be determined by above


On hold due to Universal Credit.

4.14 Develop tenants report. Feedback from stakeholders required

Review approach to ARC report annually

May/June 2016


Feedback received and incorporated into report which has been published and sent to all tenants.



4.15 Determine business case for providing student and/or furnished accommodation using hard to let houses

Review need/demand and property type and location

31 December 2017


Position with UHI developments being clarified prior to progressing further.

Business modelling for student accommodation in Stornoway


Position with UHI developments being clarified prior to progressing further.

4.16 Carry out a study on affordability of rents

Affordability Study commission

20 June 2017 Director of Operations

Scope of work to be clarified. Initial investigation through SCS household survey.

Complete 30 November 17


Impact Assesses 31 December 2017



OBJECTIVE 5 – Being a good employer that attracts and retains high quality staff


5.1 Appraisals and training needs request to be completed.

All SDA’s completed on time

By 31 August each year

Chief Executive Review process for 2017

10 % complete.

5.2 Training Plan to be prepared.

Training Plan to be delivered

Effectiveness of training to be assessed

Training Plan prepared

Training Plan delivered

Training Plan reviewed

Following SDA completion

November each year

Admin Officer (Corporate Resources)

Prepared due to Board November 2015.

5.3 Staff survey Survey undertaken September 2015 Executive Team Action Plan being implemented.

Review of results November 2015

5.4 Annual pay review Recommendation for 2017/18

May 2017 Chief Executive Consultation underway.

5.5 Review grading structure Recommendation on grading structure/implementation

2017/18

2018/19 (implementation)

Chief Executive Identifying external consultants to support work.

Staff meeting held.

5.6 Review opportunities to participate in Modern Apprentice Scheme, provision of trainee posts and secondments

Review undertaken 31 March 2018 Chief Executive Meeting held with Skills Development Scotland. Report to September 2017 Board meeting.

5.7 Review of induction process New induction process implemented

September 2017 Director of Finance & Corporate Services

New member of staff inducted in May. Induction process revised with detailed 1st week plan in diary ensuring they had the correct training and completed Risk Modules.



5.8 Review of appraisal system New or revised system September 2018 Chief Executive Initial review underway.


OBJECTIVE 6 – Delivering Value for Money


6.1 Identify overhead costs v direct service delivery and benchmark these

Define overhead v direct identifying benchmarking partners


Initial work done – appropriate benchmarking partners to be selected.

6.2 Develop peer review against top quartile RSL’s

Partners identified and information obtained

May 2017 Corporate Governance Manager

Peers reviewed prior to Business Plan being finalized to determine where HHP want to be.

6.3 Identify duplication and inefficiencies in processes and streamline these

Detailed process maps developed for key areas including:

Service Development

Manager

Investment Investment complete

January 2016

Investment process map complete.

Factoring August 2017 Factoring process mapped and being reviewed.

Repairs August 2017 I T development required including gateway for contractors.

6.4 Identify costs/unit in investment and repair programmes and identify implications of reducing these

Monitor during contracts and at budget setting to increase scope of investment programme

Annually by the June Board

Asset & Contract Manager

Ongoing analysis of repair costs.

Regular reports to Board.

6.5 Explore opportunities with partners to achieve savings

Development of Procurement Strategy

31 December 2016

Corporate Resources Officer

Report to Board November 2016.



6.6 Deliver new build programme in a more cost effective way reducing per unit cost

Analysis of costs of current approach.

31 August 2017

Executive Team

6.7 Subsidiary activity – review options that subsidiary can undertake

Subsidiary active T.B.A Director of Finance & Corporate Services

Resources Team restructured to provide support for the development of the Subsidiary.

6.8 Undertake review of impact of LIFT properties in the Stornoway area

Survey successful applicants.

Carry out market analysis to ascertain demand.

March 2016

December 2017

Chief Executive Development Workgroup review following completion of Local Housing Strategy.

6.9 Undertake review of demand/need for 3+ bedroom houses in some rural areas e.g South Lochs, Bragar, Uig, North Uist, South Uist & Barra

Annual Allocation Report to Board.

June – Annually


June 2016.

Update to Business Planning Day – January 2016 and Board report March 2016.

Report to Board – June 2017.

6.10 Provide temporary accommodation to CNES as required

Annual Review Annually Director of Operations

Ongoing

Review of allocations to homeless applicants as required by CNES

Annual Review

6.11 Review SLA with Homeless Service with CNES

Annual Review. 4th quarter of financial year

Area Manager To be reviewed by March 2017.



6.12 Review arrangements with Foyer in relation to leased properties

Arrangements to be concluded

Operating model to be agreed


Discussion commenced regarding operating model.

6.13 Work to prevent homelessness amongst HHP tenants through tenancy breakdown

Joint working arrangements in place with partners e.g CPN Team, CAB and Social Work.

Ongoing

Area Managers

Liaison arrangements in place with CPN Team and CAB.

Quarterly meetings to continue.

In place – ongoing.

Tenancy sustainability after 1 year > 90%.

Ongoing Sustainability rate at 90% for new tenancies.

6.14 Provide advice and assistance to housing applicants on options and ensure effective signposting

Eviction rate < 0.15% Ongoing ARC lead monitoring

Housing Officers continue to work with tenants to aim to achieve the targets.

Explore formal accreditation on advice and assistance

To start in July 2017 with continuous refreshers

Service Development

Manager/Corporate Resources Admin

Officer

Develop housing options information for applicants to support advice provision

Service Development Manager/Area

Manager


OBJECTIVE 7 – Making the biggest impact on the economic well being of communities throughout the Outer

Hebrides that resources allow


7.1 Support local suppliers and contractors.

Source majority of supplies locally

Ongoing Investment Manager/Corporate Resources Officer

Support of local economy now formal aspiration/requirement of HHP’s Procurement Strategy.

7.2 Apprenticeships – commitment from contractors to recruit and retain apprentices.

All major contracts to include recruitment & retain apprentices

Ongoing Asset & Contracts Manager/Investment

Manager

In place and ongoing.

7.3 Support CNES/CPP (check) Strategy of making Stornoway a University town.

Working in partnership for student/lecturer accommodation

Ongoing Chief Executive

7.4 Participate in Economic Outcome Group.

Ongoing Chief Executive

7.5 Examine opportunities for pilot projects for innovative developments that link with community projects

Opportunities explored 2017-2020 Executive Team


Agenda Item 27

BOARD 28 June 2017

INVESTMENT PROGRAMME 2017/18 MONITORING REPORT


PURPOSE OF REPORT

1.1 To provide an update on the delivery of the 2017/18 Investment Programme.

SUMMARY

2.1 The works for the 2017/18 programme are being delivered through the Investment Framework. The report provides information on progress of works at Appendix 1 and a financial update at Appendix 2.

COMPETENCE

3.1 The legal, financial or other constraints to any recommendations in this report being implemented are detailed in paragraph 5.

RECOMMENDATIONS

4.1 It is recommended that the Board notes the 2017/18 Investment Programme progress and financial updates at Appendices 1 and 2.

APPENDIX 1 2017/18 Progress Report

APPENDIX 2 2017/18 Financial Update


Writer of Report Angus E MacNeil Tel: 0300 123 0773


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 2017/18 Investment Programme is approved at £4.227m.

Works are being procured and costs at Appendix 2 will be updated as surveys are completed.

5.3 Proposals for the use of the unallocated budget will be presented to the September 2017

Board meeting.

Legal 5.4 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. 5.5 Financial Regulations require that actual forecast and progress on the Investment

Programme be reported to each routine meeting of the Board.

RISK

6.1 There are risks highlighted in the Risk Register which are relevant to Investment including specifically failure of a major contractor.

6.2 An approved grant application for the sum of £246k for general adaptations was confirmed by the Scottish Government on 14 June 2017. This full funding will now supersede the temporary allocation of £100k previously set up within the budget.

REPORT DETAILS

Progress of 2017/18 Programme

7.1 Tendering of Lots is currently in progress as detailed at Appendix 1.

7.2 Tendering of Lots is being staggered in order to afford contractors on the Framework every opportunity to tender for each Lot. Feedback is provided to the contractors after tendering for each Lot.

7.3 The Board agreed in June 2015 to switch window and kitchen replacement at Church Road, Berneray. The programme has been adjusted to reflect this decision.

Additional Works – Unallocated Budget

8.1 Works continue to be prioritised and costed in order to provide recommendations to the Board in September 2017. EESSH related works are being considered as a priority in relation to this budget and discussions with external agencies in relation to grant funded initiatives are continuing to minimise the impact on budgets. Common area improvements are also being evaluated to address abeyances from SHQS.

8.2 Projects will be prioritised to achieve or to maintain SHQS and to meet EESSH.

8.3 The Stock Condition Survey being carried out in the coming months may also identify further works to be carried out.

2017/18 Current Progress Appendix 1

Works Notes Contractor Progress to end May

Lewis and Harris

Window and Doors 17 units *TBC Tender to be issued w/c 12 June

Heating 83 units *TBC Tender to be issued w/c 12 June

Gas Heating 86 units Alex Murray Construction On site

Bathrooms & Showers 16 units Alex Murray Construction On site

Kitchens 80 units O'Mac Construction Site start 4 July

Roofing 7 units *TBC Tender issued. Return 16 June

Roughcasting 6 units *TBC Tender issued. Return 16 June

Electrical Works 400 units *TBC Tender to be issued w/c 19 June

Environmental 61 units *TBC Tender to be issued w/c 12 June

OT Referral based Alex Murray Construction On site

Energy efficiency - Rooms in roof Insulation

Investment pogramme to be revised upon completion

of works with 100% funding which are currently on

site

Uist and Barra

Windows 8 units *TBC Tender to be issued w/c 12 June

Bathrooms & Showers 5 units *TBC Tender issued. Return 21 June

Kitchens 39 units *TBC Tender issued. Return 16 June

OT Referral based FES FM Ltd On site

Energy efficiency - Rooms in roof Insulation

Investment pogramme to be revised upon completion

of works with 100% funding which are currently on

site

* TBC - To be confirmed

Page 1 of 1

INVESTMENT PROGRAMME FINANCIAL UPDATE APPENDIX 2

Line SUMMARY ACTUAL

Initial Revised Spend to Revised Revised Slippage/ Over/ at

Budget Budget 31 May 2017 Budget Budget Saving B/F 31 Mar 18

£ £ £ £ % £ £

1 INVESTMENT -VAT

2 Roofs & Roughcast 109,760 109,760 - 109,760 100% - - 109,760

3 Insulation 144,840 144,840 - 144,840 100% - - 144,840

4 Total Externals 254,600 254,600 - 254,600 100% - - 254,600

5 Internal

6 Kitchens 446,250 446,250 - 446,250 100% - - 446,250

7 Bathrooms 61,200 61,200 - 0% - - 61,200

8 Heating 1,770,740 1,770,740 4,531 0% - 2,000 1,772,740

9 Windows 257,990 257,990 3,050 0% - - 257,990

10 Total Internal 2,536,180 2,536,180 7,581 446,250 18% - 2,000 2,538,180

11 Other

12 Smoke Detectors & Fire Doors 116,000 116,000 - 116,000 100% - - 116,000

13 Fencing 233,260 233,260 12,760 220,500 95% - - 233,260

14 Total Investment VAT 3,140,040 3,140,040 20,341 3,119,699 99% - 2,000 3,142,040

15 INVESTMENT -NON VAT

16 OT Works 120,000 120,000 3,599 116,401 97% - - 120,000

17 Showers 44,400 44,400 - 44,400 100% - - 44,400

18 Subsidence - - - - - - -

19 Total Investment Non VAT 164,400 164,400 3,599 160,801 98% - - 164,400

20 INVESTMENT-5RSL

21 Insulation 17,040 17,040 - 17,040 100% - - 17,040

22 Kitchens 90,000 90,000 - 90,000 100% - - 90,000

23 Heating 77,440 77,440 - 77,440 100% - - 77,440

24 Smoke Detectors - - - - - - -

25 Total Investment 5 RSL 184,480 184,480 - 184,480 100% - - 184,480

26

27 Unallocated & Efficiency Budgets

28 Unallocated budgets 738,310 738,310 - 738,310 100% (2,000) 736,310

29 Efficiency Savings - - - - -

30 Total Budget Available 738,310 738,310 - 738,310 100% - (2,000) 736,310

31

32 Total Investment 4,227,230 4,227,230 23,940 4,203,290 99% - - 4,227,230

2017-2018 BUDGET REMAINING FORECAST OUT-TURN

BRD-28JUN17-27 Investment Programme 2017-18 Appendix 2 - SUMMARY ONLY

Summary

16/06/2017

18:35


Agenda Item 28

BOARD 28 June 2017

FUEL POVERY UPDATE


PURPOSE OF REPORT

1.1 To update Board on the investment works and other initiatives which are in place to reduce the impact of fuel poverty on HHP tenants.

SUMMARY

2.1 Fuel Poverty has been recognised as a problem in the UK since the mid-1970s when there was an observation that many people had difficulty in paying their energy bills due to low income and high and rising fuel costs. At the time fuel poverty was broadly defined as not being able to afford to keep warm. Since then, the concept of fuel poverty has gained increasing political recognition and is now a cross-cutting policy issue at the forefront of poverty and climate change strategies.

2.2 The Outer Hebrides has the highest level of fuel poverty in the United Kingdom.

2.3 HHP continues to tackle fuel poverty primarily through the Investment programme but is also proactive in other initiatives through the Affordable Warmth Strategy and Business Plan objectives.

2.4 A household fuel poverty survey will form part of the Stock Condition survey in 2017 which will provide an update on the level of fuel poverty amongst tenants.

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 this report is noted.


Writer of Report Peter O'Donnell Tel: 0300 123 0773


COMPETENCE

Financial 5.1 Measures to address fuel poverty have been incorporated and costed as part of the

investment framework. 5.2 Government funding of £430k was achieved in 2016/17 which allowed works to be

brought forward and opportunities continue to be pursued.

Legal 5.3 There are no legal duties in considering this report.

RISK

6.1 Fuel poverty is recognised within the HHP Risk Register. Increased energy costs and the impact on tenants’ income can affect their ability to sustain their tenancy.

REPORT DETAILS

Investment Works

7.1 Fuel poverty primarily affects HHP homes off the gas grid although tenants with gas can also find themselves in difficulty. The triggers of fuel poverty are as follows:

• Energy efficiency of the home;

• Fuel costs; and

• Household income.

7.2 Work is ongoing to finance these as far as possible as set out below.

Energy Efficiency

8.1 To date HHP has installed 680 heat pumps, 61 infrared systems, 24 quantum storage systems and 91 new gas condensing boilers. All our homes have loft and cavity insulation where possible. 259 houses with a room in the roof have now been insulated with a combination of HHP and Scottish Government funding.

8.2 There is Board approval in place for a further 355 new heating systems and plans for another 178 heating systems to be installed in 2019. Recent Government funding has enabled HHP to progress more insulation works than anticipated resulting in the current insulation programme being largely completed. A revised plan is now being deployed.

8.3 The energy efficiency of HHP homes can be improved through other factors such as improving double glazing, increasing cylinder insulation, switching tariffs and installing under floor insulation. Our rolling investment programme will continually improve the energy efficiency of our homes but under floor insulation is proving extremely difficult to both fund and install. Government funding is predominantly concentrating on wall insulation and HHP were recently unsuccessful in bidding for a small under floor insulation project. Our investment team will continue to seek opportunities to fund this work.


Fuel Costs

9.1 The volatility of fuel costs can have a big impact on tenants’ energy bills. Recent SSE price increases have taken tariffs for storage heating customers to an unprecedented level, reaching 21.9p per kWh. Although this is offset by lower heating and hot water costs of 11.06p per kWh at peak times there is still a 12% rise on both tariffs and this only increases the possibility of tenants slipping further into fuel poverty.

9.2 A cap put on prepayment meters has resulted in a safety net for a lot of tenants as their tariffs did not increase. This price cap is in place till 2020 and the levels are updated on 1 April and 1 October each year so prices could still go up or down throughout the year. The price cap will cease when smart meters have been rolled out which is still predicted to be in 2020.

9.3 HHP is working with Citrus Energy to protect tenants on expensive tariffs and help them switch where possible. There is, however, still a large proportion of tenants who favour SSE and refuse to switch. This brand loyalty still provides the toughest challenge to moving tenants to cheaper tariffs.

Household Income

10.1 The ability to influence household income is generally outwith the control of HHP but it should be noted that our yearly spend on development, investment and repairs brings is worth £9m annually to the island economy and allows the construction industry in particular to employ local workers and bring in much needed apprenticeship schemes.

10.2 HHP continues to signpost tenants to appropriate agencies for further help on income maximisation where benefit checks and debt reduction can bring much needed support.

Energy Monitoring

11.1 HHP will be using the 2017 heat pump servicing programme to undertake a survey for those tenants with heat pumps. The survey will ascertain whether tenants are happy with the following aspects of their heating:

• comfort;

• control;

• usage;

• satisfaction; and

• electricity supplier.

11.2 As part of the servicing HHP has asked FES to log meter readings to enable running costs to be evaluated. Our next review of fuel poverty will include these running costs and the outcome of the survey.

Hebrides Energy

12.1 The Hebrides Energy project being delivered by Comhairle Nan Eilean Siar and other partners including HHP suffered a set back when their provider, GB Energy, collapsed. Discussions are ongoing with potential new partners and all options are being explored.


Highlands and Island Housing Associations (HIHA)

13.1 In April 2017 the HIHA group produced an update on the analysis of the difference in electricity costs for standard tariffs between north and south Scotland where previously SSE had charged around 2p extra to supply electricity to the north. Since 2015 SSE has halved the difference between costs north and south. In 2015 the difference in costs was £128 but by April 2017 this had reduced to £72. Their standard rate in North of Scotland now costs 1.2p more per unit than the South whereas in 2015 the difference was 2.4p. This would indicate that the lobbying by the Highlands and Islands group along with other pressures has proved successful although there is still work to be done to reduce this gap to 0.7p which OFGEM has identified as the true differential in supply costs.

Funding Opportunities

14.1 In the previous fuel poverty review HHP was bidding for two streams of funding to deliver an academic study on heating and energy within HHP homes and developing an energy efficiency brochure. Unfortunately both bids, although well received, failed to receive any funding.

14.2 In December 2016 HHP bid for insulation funding through the Home Energy Efficiency Programme for Scotland Area Based Scheme (HEEPS ABS). The scheme was administrated through Comhairle Nan Eilean Siar and HHP were successful in receiving an initial funding of £340k. Due to our progress and ability to take on more works, two further sums of £50k were given to HHP taking our total to £440k which enabled 89 room in roof properties to be insulated.

14.3 In May 2017 HHP was approached by an insulation firm to explore the possibility of accessing Energy Company Obligation (ECO) funding to enable more room in roof properties to be insulated at no cost to HHP. ECO funding now has a particular strand to address funding for housing associations where homes have an EPC of ‘E’ or less. A trial was carried out at Caladh Siar, Harris, to assess installation standards which was successful and we are now surveying properties for further works to be carried out this year. Updates will be brought to the Board through the Investment reports.

Mina Maclean Page 1 of 2 16/6/17

Agenda Item 29

BOARD 28 June 2017

HOUSING ALLOCATIONS - ANNUAL REPORT 2016/17


PURPOSE OF REPORT

1.1 This report provides statistical information on housing allocations during 2016/17 and outlines a number of the key issues surrounding supply and demand for housing.

SUMMARY

2.1 The report at Appendix 1 is the seventh 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 needs to be closely monitored. The demand as demonstrated by waiting lists is not high particularly outwith the Stornoway area. This information should 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.

COMPETENCE

3.1 There are no financial implications to the report.

RECOMMENDATIONS


a) The report at Appendix 1 is noted; and

b) The quotas for allocating properties in Stornoway remain at 50% for homeless applicants.

APPENDIX 1 Housing Allocations Report for 2016/17


Writer of Report Mina Maclean Tel: 0300 123 0773

Mina Maclean Page 2 of 2 16/6/17

COMPETENCE

Financial 5.1 There are no direct financial implications in the report.

Legal 5.2 There are no specific legal implications in the report.

RISK

6.1 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.

�Allocations Report

2016/17

Author: � Mina Maclean Senior Housing Officer (Allocations)

Publication Date: � June 2017

aglsmi

Typewritten Text

APPENDIX 1

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ALLOCATIONS REPORT 2016/17

Contents

AIMS ..................................................................................................... 2

WAITING LIST AT 31 MARCH 2017 ............................................................. 2

PERCENTAGE OF DEMAND BY AREA .......................................................... 4

BREAKDOWN OF APPLICANTS ON WAITING LIST FROM 2010-2017 (INCLUDING

SUSPENDED & DEFERRED) ......................................................................... 5

APPLICATIONS RECEIVED DURING 2016/17 ............................................... 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 ............................................................ 13

LOW DEMAND PROPERTIES...................................................................... 15

HOMELESS APPLICANTS .......................................................................... 15

QUOTAS FOR ALLOCATING HOUSES ......................................................... 15

CONCLUSION ....................................................................................... 15

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ALLOCATIONS REPORT 2016/17

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 2017

2.1 The map below shows the number of applicants on the waiting list at 31

March 2017 and incorporates first choice area of preference:

3 | P a g e

2.2 As can be seen demand is highest at the main centres of population and is

currently weaker in the rural areas.

2.3 The waiting list broken down to show waiting and transfer applicants

(excluding 25 suspended and 57 deferred) is below:

2.4 Overall the waiting list has remained about the same as it was at 31 March

2016, however there has been a reduction of nearly 20% over the last five

years.

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PERCENTAGE OF DEMAND BY AREA

3.1 The chart shows that the largest demand by a considerable distance is for the

Stornoway area with 59% of applicants recording this as their preference. The

next largest areas of demand at 5% are Back/Tong, Tarbert,

Creagorry/Kileravagh and Eoligarry/Scallery.

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BREAKDOWN OF APPLICANTS ON WAITING LIST FROM 2010-2017 (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.

4.2 There has been an 8.6% decrease in the total number of applicants from 31

March 2016 and a 6.2% decrease in waiting list applications. Since 31 March

2011 waiting list applications have fallen by 20%

APPLICATIONS RECEIVED DURING 2016/17

5.1 The total number of applications received during 2016/17 was 453 an

increase of 10% from the previous year.

5.2 The average time taken to process these applications was 4 days.

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PERCENTAGE OF WAITING AND TRANSFER APPLICATIONS BY HOUSEHOLD

TYPE

6.1 Single people make up 54% of the applicants with 31% aged 26-59. 28% of

applicants are households with children.

6.2 In 2013/14 the figures were 51% of applicants were single with 28% aged 26-

59. 25% applicants were households with children.

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PERCENTAGE OF APPLICANTS BY ETHNIC ORIGIN

7.1 The chart below shows that the largest applicant group is white Scottish at

77% with 16% of applicants being of other white British origin. White Irish and

other white backgrounds make up 4%. 1% did not provide information.

7.2 In 2013/14 the percentage of White Scottish was 75% with 12% being white

British origin. White Irish and other white background was 4%. 7% did not

provide information.

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NUMBER OF CANCELLED APPLICATIONS

8.1 During the year 269 applications were cancelled. The primary reason for

applications being cancelled was due to non-return of review forms and

there were 120 applications cancelled as a result of this. The rolling review

process is important in keeping data live and up to date.

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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 25 applications suspended, 6

are suspended because of current tenant arrears, 4 are suspended because

of former tenant arrears and 3 because of conduct issues. 12 applicants are

suspended for refusing two offers of housing which met their choices.

9.2 57 applicants do not wish to be housed at present and are deferred until such

time as their circumstances. 2 applicants are deferred pending further

information.

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HOUSING SUPPLY

10.1 In total 203 (excluding new build) were re-let during 2015/16. There were 37

lets made to transfer applicants. There were 11 Direct Lets.

10.2 The number of relets by area is shown below. 54 lets (26.6%) were in the

Stornoway area with 18 lets (8.9%) in Balivanich and 19 lets (9.36%) in

Lochboisdale.

10.3 In the 2013/14 report the figures were 95 lets (49.48%) in the Stornoway area, 7

lets (3.64%) in Balivanich and 7 lets (3.64%) in Lochboisdale.

11 | P a g e

10.4 71 lets (33%) were for 1 bedroom properties and 73 lets (34%) were 2 bedroom

properties. 66 lets (31%) were of 3 bedroom properties.

10.5 In the 2013/14 report the figures were 65 lets (33%) of 1 bedroom properties

and 84 lets (43%) of 2 bedroom properties.

10.6 The graph below shows applicants housed during the year by household type

and by ethnic origin. 14% of lets were to couples with children, 13% were to

couples, 18% were to single parents and 44% were to single people. These

figures are broadly in line with the proportion of households on the waiting list.

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10.7 70% of lets were to white Scottish applicants and 27% to other white groups.

This is broadly in line with the make-up of waiting lists.

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. 46% of

questionnaires were returned and 90% of tenants said they were satisfied with

the condition of the house. 4% were dissatisfied due to decoration and the

condition of the property.

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REASONS FOR TERMINATIONS

12.1 The reasons for terminations are, 10% moved to the private sector, while 14%

moved to the mainland.

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.

0 200 400 600 800 1000

2 apt

3 apt

4 apt

5 apt

983

487

440

0

0

536

299

0

Homeless List - No of Days

7A (Balivanich)

3C (Stornoway)

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0 200 400 600 800 1000 1200

2 apt

3 apt

4 apt

5 apt

175

1000

1061

0

308

0

0

0

441

91

33

0

Transfer List - No of Days

7A (Balivanich)

5A (Tarbert)

3C (Stornoway)

0 200 400 600 800 1000 1200 1400 1600

2 apt

3 apt

4 apt

5 apt

1300

490

954

0

1485

243

0

0

396

265

375

0

Housing List - No of Days

7A (Balivanich)

5A (Tarbert)

3C Stornoway)

15 | P a g e

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 13 properties which could not be let due to a

lack of demand. The longest void period on one property is currently 41

weeks.

14.2 Overall 180 houses are now classed for ARC purposes as being low demand.

Annual void loss has increased steadily in recent years from 0.5% in 2013/14 to

0.8% in 2016/17. Further information and potential interventions will be

reported to future Board meetings.

HOMELESS APPLICANTS

15.1 In total 52 statutory homeless applicants were housed during 2016/17. Of

these 22 were housed in the Stornoway area. This is 42% 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% of re-lets in the Stornoway area. There has

been no request by the Comhairle to amend the current quota. Of all

allocations made throughout the Western Isles 26% were made to statutory

homeless applicants.

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 any

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 54% 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 511 applicants on the waiting list excluding transfer applicants. This

figure includes suspended and deferred applications. If deferred applicants

are excluded the figure is 469. When this is compared to the supply of

housing at an average of approximately 200 per annum the level of demand

16 | P a g e

per vacancy is not high. This position is consistent with previous years and is

an important issue 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.






Phone:0300 123 0773

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