Agenda ALMO BOARD MEETING

3 November 2020, at 5.30pm via Microsoft Teams *

1. WELCOME 5.30

2. APOLOGIES FOR ABSENCE

3. ANYTHING TO DECLARE

4. ITEMS FROM THE CHAIR

5. SIGN OFF OF THE 1 SEPTEMBER 2020 MINUTES Attached 5.30

6. FEEDBACK FROM - Group Board - ARCC - Repairs Working Party - CEP Update ART and Condition of Lettable Properties

Relevant Minutes Attached

5.30

7. REPORTS AND PRESENTATIONS

7.1 Housing Ombudsman Self-Assessment Attached 5.50 7.2 Annual Review of the Housing Revenue Account Attached 6.20 7.3 Deep Dive into Grounds Maintenance and Garden

Assistance 6.50

8. CLOSING ITEMSANY OTHER BUSINESSITEMS ON THE NEXT ALMO MEETING AGENDA

- Percentage of Justified Complaints

DATE OF NEXT MEETING – TO BE ARRANGED

* Members of the public wishing to attend this meeting should emailboardmeetings@nottinghamcityhomes.org.uk for joining details

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ITEM: 5 THE ALMO BOARD

3 NOVEMBER 2020 NOTTINGHAM CITY HOMES LIMITED

THE ALMO BOARD

MINUTES of the PUBLIC MEETING held on 1 SEPTEMBER 2020 at via Microsoft

Teams Board Members Adeola Adeleke

Geoff Bagnall Lynn Clayton Ingenesia Ngeenguno Dave Pitt Georgia Power Ethan Radford Michael Savage (Chair) Janet Storar Karen Humble

Also in Attendance: Josephine Abbott (Item 7)

Cathy Dobb (Minute Taker) Nick Eley (Item 8) Darrell Smith (Item 6.1) Sue Smith (Item 7) Kathy Sheldon Cath Stocks (Item 8)

Finance Manager Head of Governance Head of Voids Director of Construction, Repairs and Maintenance Services Head of Business Transformation Assistant Director of Tenancy and Estate Services Head of Housing Options

1 WELCOME, INTRODUCTIONS & CHAIR’S ANNOUNCEMENTS The Chair opened the meeting and welcomed Board Members. The Chair

welcomed Board Members Adeola Adeleke, Ingenesia Ngeenguno and Janet Storar.

2 APOLOGIES FOR ABSENCE Apologies were received from Sarita-Marie Rehman-Wall. 3 ANYTHING TO DECLARE Nothing declared. 4 ITEMS FROM THE CHAIR

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The Assistant Director of Tenancy and Estate Services (ADTES) informed Board

that the Customer Excellence Panel (CEP) has listed similar topics for review on their Forward Plans as the ALMO Board has on its Forward Plans. As well as showing that the CEP and the Board are in accord with the issues that they wish to discuss and review, it can lead to duplication of effort. Therefore, the ADTES worked with the Chair of the CEP and the Chair of the ALMO Board to look to find a way to avoid this duplication. It has been agreed that should the Board feel some aspects of the Deep Dive reporting needs further investigation, they are able to commission CEP to undertaken the investigation. CEP can ensure that the Service is scrutinised and report their findings to the Board.

5 SIGN OFF OF THE 7 JULY 2020 MINUTES The minutes were agreed as a true record. The Chair electronically approved the

minutes. 6 FEEDBACK FROM BOARDS AND COMMITTEES 6.1 REPAIRS WORKING PARTY 6.1.1 The Director of Construction, Repairs and Maintenance Services (DCRM) fed back

to the meeting the key actions from the Repairs Working Party held on 28 July 2020:

It was a positive meeting. The meeting agreed themes and established four Task and Finish groups; Engagement, Performance, Process and Technology. These groups are now operational and working to the agreed Action Plan.

Engagement – deals with Customer Satisfaction and looks to build stronger relationships across Construction, Repairs and Maintenance Service (CR&M) and Nottingham City Homes (NCH) in order to increase engagement and productivity. It is looking at the implementation of the National Federation of Schedule of Rates. Communication is also included in this group.

Performance - the remit is to review, set, communicate and monitor productivity expectations as part of the Performance Management Framework. The initial plan is to include performance management training with future Absence Management training being rolled out to managers.

Processes – this group will be completing reviews of Business Services, including Gas Servicing, and the Repairs Service Managers role to ensure processes are efficient.

Technology – this group will focus on ensuring the systems utilised within CR&M, mobile working, scheduling, telephony and support, are fit-for-purpose.

Each Task and Finish groups has an Action Plan

The Task and Finish Groups meet on a regular basis, and report back to, the Working Party.

Details on progress will be reported to the next ALMO Board. 7 REPORTS AND PRESENTATIONS

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7.1 QUARTER ONE MONITORING REPORT 7.1.1 The Finance Manager (FM) presented to Board Members the Quarter One

Performance Monitoring Report. The key financial items brought to the Board’s attention were:

The ALMO is currently underspending against its budget shown by the variance of £776k. This excludes the impact of the pending pay award which, at the current offer of 2.75%, would increase pay costs and hence reduce the underspend in Quarter 1 by £220k.

The forecast anticipates an overspend against budget for the full year of £289k. This mainly reflects that underspends to date will be needed in the remainder of the financial year (9 months) to complete repair and maintenance works that it was not possible to do in Quarter 1 due to COVID-19 restrictions, as well as additional costs that have arisen e.g. PPE.

The main risks in relation to the ALMOs spend this year coming within its forecast outturn position are as follows: Delivery of savings included in the 2020/21 budget; Impact of COVID-19 on budgets and/or fees; Delivery of services within revised expenditure targets and anticipated demand; and Level of sickness absence and its impact on actual available staff resources funded by budgets.

7.1.2 The Head of Business Transformation (HoBT) presented the Quarter One

Performance Monitoring Report. The key performance items brought to the Board’s attention were:

NCH is performing well compared with other organisation in the vast majority of areas benchmarked and that the targets set within NCH are stretching.

Performance has been severely impacted in some areas due to the impact of Covid-19 and the Board were made aware that this would continue to be a theme for some time to come. However, every department has been working through plans to mitigate the impact of the effects from the COVID-19 restrictions.

The STAR survey for Quarter 1 yielded a lower response rate than in previous quarters with only 22% of responses returned as compared to 34% in the previous quarter.

In this quarter, the weighting towards General Needs customers continued with twice as many surveys being sent out to them than Independent Living. Despite this, more Independent Living customers returned surveys, although with this weighting there was an increased return of surveys from General Needs customers compared to Quarter 4.

There is a seven-year high on tenant satisfaction with their neighbourhood.

The sector as a whole has experienced a decline in performance with NCH being impacted to a lesser degree, seeing seven performance measures being placed within the top quartile when compared to other housing organisations.

The Repairs service reverted to only delivering emergency repairs for the majority of this quarter and due to temporary increased capacity was able to deliver more first time fixes.

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Gas servicing has dropped to 99.86% at Quarter 1 and remains a sector wide problem on gaining access to customers’ homes. This relatively small fall from 100% places the measure in quartile four.

100% rent collection achieved for the quarter although the pull forward of the rent free weeks means that it is difficult to accurately gauge the current performance.

Re-let times has improved this quarter from 32.5 to 29.7 calendar days and is continuing to progress to the target figure of 25 calendar days. However, COVID-19 has severely impacted the number of lettable voids due to disruption during the first half of the quarter. This has now increased to 245. Performance is also impacted by longer services times from the utility companies.

Satisfaction with opportunities to participate fell in this quarter from 68% to 60%, which is potentially another effect from COVID-19 and the restrictions on face-to-face activities.

Overall satisfaction dipped but remains in in quartile one.

Right First Time repairs achieved its target of 98%

Work on EPC rating, Grander Designs Scheme and ACE Inspections were all paused due to COVID-19.

Electrical Installation Condition Report (EICR) is down to 93.38% due to experiencing 30% of properties being unable to access.

Fire Risk Assessments remains at 100%, as do all the remaining compliance areas.

7.1.3 Board agreed that they would benefit from receiving the Performance Monitoring

Report prior to the meeting, and this report will now be issued with the Agenda documents going forward.

7.2 DEEP DIVE INTO VOIDS AND LETTINGS 7.2.1 The Head of Housing Options (HoHO) and the Head of Voids (HoV) presented to

Board a deep dive into Void and Lettings. The key items brought to the Board’s attention were:

The service area includes; property clearance; safety checks; surveys; repairs; and the allocation and letting of homes. Last year 1,172 properties were let, with 374 let to date this year. There were 114 dispersed, plus 26 Market Rent properties.

The services has a number of staff, including 20.5 Support Staff; 18.8 in Void Clearance and seven in the Cleansing Team. There are 93 colleagues who undertake the works, including cleaning and clearance work.

The Capital budget is £2m with a Revenue budget of £2.9m.

The target for Lettable Voids is 150, with the number being 179 for the year ending 2019/20. It was previously forecast that the target would have been met this year if COVIDd-19 had not happened. The pandemic caused a significant impact in this area. The current number is 245 and a robust performance management is in place to address this.

The Average Relet Time (ART) has a target of 25 days. This is a challenging target as the calculation for this is calendar days as opposed to working days, meaning that weekends, bank holidays and the Christmas/Easter periods are all included. During year two of the Corporate

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Plan the overall ART was 32.5 days compared to 33.8 the previous year and 37.5 in 2017/18, demonstrating improved performance year on year and a continued trend with Quarter 1 this year being 29.7 days.

Customer satisfaction with the overall condition of their homes had a target of 91% for the year ending 2019/20 with performance at 94.09%. The target was increased for the 2020/21 period to 97%. A lower number of surveys were returned in the period, and only six people reported a negative response. Current performance is 89.09%.

The Service has faced a number of challenges due to COVID-19; a temporary halt on lettings was imposed and only priority cases were dealt with; changes to working practices; remote working; 50% of staff were shielding; supplier and providers were also impacted.

A proactive approach was undertaken with regard to; Risk Assessments; change in practices, embracing new technology such as Jabber and SharePoint; working with suppliers to ensure continued supply of furniture; commitment of, and support to, colleagues.

HouseMark reported letting activity across the sector fell by 77% compared to the previous month whereas NCH only fell 60% compared to March 2020. HouseMark reported overall 67% less lettings across the sector in May than normally expected but NCH only had 10% less than May last year, and again in June our lettings were only down 10% from last year. HouseMark have also provided some forecasting and predicted our void rent loss at end of June would be 2%, with this increasing to 2.09% over the year, slightly below the sector average forecast. Our actual void loss end June was 1.26%, and while this is an increase from 1.09% in March, we are still performing significantly better than their forecast.

Longer term challenges facing the services are; supporting Nottingham City Council’s (NCC) priority on Homelessness; balancing void work, customer satisfaction and performance; digital work scheduling software; and hard to let voids in Independent Living Schemes (ILS).

Priority actions for the Service are fast track voids; supporting NCC with Homelessness; delivering buybacks and Customer Satisfaction and improved lettings performance of Independent Living properties.

Forward Planning for the Service will include; fully digital sign up and improved marketing of properties, and the implementation of the National Federation Schedule of Rates.

Buybacks are administered by NCC with NCH providing the works to bring those properties back to a lettable standard. There were 60 Buybacks last year, with approximately 100 so far this year.

7.2.2 The Board felt it was a very good presentation and very informative. Board made a

suggestion that hard to let properties could be advertised through Rightmove, or similar agencies. This suggestion will be added to the Lettings Action Plan for further consideration. It was also confirmed that NCH would pay the moving fees of tenants who wish to downsize, or move from a more desirable property. It was also confirmed that void clearance costs can be recouped from tenants, and this can include costs for tenant damage over and above normal wear and tear.

7.3 COMMISSION SCRUITY REVIEW TO CEP AND OTHER AGREED ACTIONS

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7.3.1 The ADTES asked Board if they were assured by the presentation delivered, or whether they wished CEP to undertake a review and provided more in-depth tenant scrutiny. Board agreed to commission CEP to scrutinise the average re-let time (ART) and the condition of lettable properties. Board agreed for CEP to undertake this review once the Garage Scrutiny Review has concluded. CEP were requested to report a progress update on scrutiny of ART and Condition of lettable properties at the next Board meeting.

8 ANY OTHER BUSINESS

8.1 Board agreed the items for the November meeting as follows:

Deep Dive into Grounds Maintenance and Garden Assistance

Annual review of the use of the HRA – Report to be issued before themeeting

Housing Ombudsman Self-Assessment approval – Report to be issuedbefore the meeting.

Update from Repairs Working Party

Progress report from CEP on Average Relet Times (ART) and Condition ofLettable properties.

9 DATE OF THE NEXT MEETING

The next scheduled meeting will be on the 3 NOVEMBER 2020.

The meeting closed at 19:25

SIGNED………………………………………………… DATE ……………………..

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Return to Agenda

ITEM: 1.5 THE GROUP BOARD

XX 2021 NOTTINGHAM CITY HOMES LIMITED

THE BOARD

MINUTES of the PUBLIC MEETING held on 7 OCTOBER 2020 via Microsoft

Teams. Board Members Mike Khouri-Bent

Georgia Power Sarita-Marie Rehman-Wall Michael Savage Malcolm Sharp, MBE (Chair) Geoff Walker

Also in Attendance: Andrew Bruynseels (Item 15)

Cathy Dobb (Minute Taker) Steve Edlin (Item 11) Richard Holland Mark Lawson (Item 12) Dan Lucas (Item 13) Nick Murphy George Pashley Darren Phillips (Items 9 and 10) Kathy Sheldon Darrell Smith Sue Smith (Item 14) Linda Woodings

Head of Health and Safety Head of Governance Assistant Director of Asset Management Assistant Director of Housing Services Executive Assistant Policy and Planning Manager Chief Executive Company Secretary Assistant Director of Finance and Procurement Assistant Director of Tenancy and Estate Services Director of Construction, Repairs and Maintenance Service Head of Business Transformation Portfolio Holder for Planning, Housing and Heritage

1 WELCOME, INTRODUCTIONS & CHAIR’S APPOINTMENT 1.1 The Company Secretary opened the meeting and welcomed Board Members. The

meeting was held via Microsoft teams due to Covid-19. He informed Board that in accordance with Standing Orders, the Board is required to elect a Chair of the Board at its first meeting following the Annual General Meeting (AGM). Following a nomination process held on 16 September 2020 where Board Members were canvased for their nominations, Malcolm Sharp, MBE, was the sole Board Member to be nominated to be the Chair of the Board.

RESOLUTION:

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The Board agreed:

1. To the appointment of Malcolm Sharp, MBE as Chair of the Board for a period of one year.

1.2 Malcolm Sharp, MBE, assumed the Chair for the remainder of the meeting. 2 APOLOGIES FOR ABSENCE Apologies were received from Bill Blincoe, Vicky Evans, Rebecca Langton and

Audra Wynter. 3 DECLARATIONS OF INTEREST None. 4 ITEMS FROM THE CHAIR 4.1 The Chair thanked Assistant Directors and colleagues for covering the vacant

Directors’ positions whilst the posts were appointed to. Thanks were also given to all staff for their contributions during this difficult time.

4.2 The Chief Executive (CE) updated Board on the recent fire at a property that

Nottingham City Homes (NCH) manages in the Clifton area that claimed the life of a resident. NCH is supporting affected residents to return to their homes. We are awaiting the outcome of the investigation. In response to a question from a Board Member it was not believed cladding was a factor. Our thoughts are with the family and friends of the deceased.

5 CONFIRMATION OF MINUTES OF THE MEETING HELD ON 18 JUNE 2020 5.1 The minutes were agreed as a true record. The Chair electronically approved the

minutes. 6 MATTERS ARISING 6.1 Board were updated on the progress with the potential collaboration with

Nottingham Community Housing Association (NCHA). The CE stated that a number of areas had been identified where it would be valuable to have more detailed discussions on. Staff have been taking these discussions forward and the information is currently being collated. The CE informed Board that updates on the collaboration will be circulated to Board when available, rather than wait for a subsequent Board Meeting.

7 FEEDBACK FROM BOARDS AND COMMITTEES 7.1 ALMO BOARD 7.1.1 The Chair of the ALMO Board updated the Board Members on the ALMO Board

Meeting held on 1 September 2020 as follows:

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• The Board received an update from the Repairs Working Party. Four Task and Finish Groups have also been created; Engagement, Performance, Processes and Technology.

• Quarter 1 Finance and Performance monitoring was also discussed. • A ‘deep dive’ into Voids and Lettings was conducted. • The Board also commissioned the Customer Excellence Panel (CEP) to

scrutinise the average re-let time (ART) and the condition of lettable properties. CEP were requested to report a progress update at the next Board meeting.

• The Board agreed the November agenda, when there will be a ‘deep dive’ into Grounds Maintenance and Garden Assistance.

7.1.2 It was stated that certain properties are harder to let than others, such as some

specific older peoples’ properties that have stairs but no lifts. It was felt that advertising these properties in the right way could reach those people who are still able to use stairs.

7.1.3 Cllr Woodings thanked the ALMO Board for setting up the Working Party and Cllr

Radford has sent an email out to all Councillors asking for them to send on any difficult repairs’ issues that they have received from their constituents.

7.2 NOTTINGHAM CITY HOMES ENTERPRISE LIMITED 7.2.1 The Chair of the Nottingham City Homes Enterprise Limited (NCHEL) updated the

Board Members on the NCHEL Meeting held on 20 August 2020 as follows: • NCHEL now receives a more detailed suite of performance information so

that it is now better able to track performance of the Market Rent properties. • NCHEL has now taken oversight of the properties we manage under contract

for other providers. These currently comprise of PA, Zedra and Henley & Gellestrope.

• Arboretum Phase 1 consultation with leaseholders has commenced. • Meadows Police Station development has been held up. Contractors are

ready to start but there is a delay with utilities. • Right to Buy (RTB) receipts, if not spent, have to be handed back to the

Government. Discussions are taking place with NCC to assist with this, such as NCC purchasing Ryehill. Although, as Ryehill was a Market Rent project, there could be a financial loss on this. It would come to Group Board for a final decision.

• NCHEL is looking at a private developer to develop the Grove Pub in Lenton. It is also looking to see if we could lease the property. If this is possible, it will come to Group Board for a decision in due course.

7.2.2 Board Members were informed that the new Directors would be Board Members on

NCHEL. Board Members also requested that consideration be given to the membership of NCHEL in future governance arrangements.

7.3 GOVERNANCE AND SELECTION COMMITTEE 7.3.1 The Chair of the Board updated the Board Members on the Governance and

Selection Committee (G&SC) Meeting held on 20 June 2020 as follows:

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• The Committee looked at the compliance level of Board Members, such as outstanding training and outstanding returns of compliance documents.

• The Chair reminded Board Members to complete and return the Self-Assessment forms in order that Appraisal meetings can be scheduled.

• A Board Member survey has been issued to all Board Members, asking about their experience with training and compliance at NCH. The survey results will highlight the barriers as to why training is not being undertaken and if the training is suitable for all Board Members.

7.4 AUDIT RISK AND COMPLIANCE COMMITTEE 7.4.1 The Chair of Audit, Risk and Compliance Committee (ARCC) updated Board

Members on the ARCC Meeting held on 20 June 2020 as follows: • The ARCC is reviewing the approach to risk with a view to getting it right for

the Group. There is a discussion next week with the external reviewers, and the outcomes will be brought back thereafter.

7.5 NOTTINGHAM CITY HOMES REGISTERED PROVIDER 7.5.1 Board were informed that currently there are currently void Dispersed Housing

properties that NCH is holding to assist NCC in housing homeless families as NCC are expecting the number of homelessness to increase in the coming months. While these properties are empty, NCH RP is not receiving income from these homes. This could have an impact on NCH RP’s finances.

8 COMPANY SECRETARY’S REPORT 8.1 VICE CHAIR 8.1.1 The Company Secretary informed Board that in accordance with Standing Orders,

the Board is advised to elect a Vice Chair at its first meeting following the AGM. Out of the potential candidates for this position one statement of interest was received from Sarita-Marie Rehman-Wall.

RESOLUTION:

The Board agreed:

1. To the appointment of Sarita-Marie Rehman-Wall to the position of Vice Chair of the Board for a term of one year.

8.2 INDEPENDENT AND CO-OPTED BOARD MEMBERS 8.2.1 Following the Governance and Selection Committee meeting held on 26 June 2020,

the Committee agreed that the existing Independent Board Member would be rolled over for an additional year. The Committee agreed to recommend Geoff Walker to the Board as an Independent Board Member for one year.

The Company’s Articles of Association provides for the Board to co-opt a maximum

of two Members, subject to reviewing the appointments on an annual basis. The maximum term of office is three consecutive years. The Chair of the Board

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recommends Vicky Evans and Bill Blincoe to the Board as Co-opted Board Members.

RESOLUTION:

The Board agreed:

1. To the appointment of Geoff Walker as an Independent Board Member for one year.

2. To the appointment of Vicky Evans and Bill Blincoe as a Co-opted Board Members with immediate effect for a term of one year.

8.3 ALMO BOARD MEMBERSHIP 8.3.1 In accordance with Standing Orders the Board is required to elect 10 Board

Members for the ALMO Board at its first meeting following the AGM. 8.3.2 Sarita-Marie Rehman-Wall, Adeola Adeleke, Karen Humble, Ingenesia Ngeenguno,

Michael Savage, Lynn Clayton, Geoff Bagnall, Georgia Power and Ethan Radford are put forward as Board Members of the ALMO Board, together with Janet Storar as a Co-opted ALMO Board Member for a period of one year.

8.3.3 The Company Secretary informed Board that Tenant Board Member, Dave Pitt,

stood down from the Board. His contribution to the ALMO Board was thanked. The Tenant Board Member vacancy will be recruited to as an in-year appointment.

RESOLUTION:

The Board agreed:

1. To Sarita-Marie Rehman-Wall, Adeola Adeleke, Karen Humble, Ingenesia Ngeenguno, Michael Savage, Lynn Clayton, Geoff Bagnall, Georgia Power and Ethan Radford being Board Members of the ALMO Board.

2. To Janet Storar being a Co-opted ALMO Board Member for a period of one year.

8.4 AUDIT, RISK AND COMPLIANCE COMMITTEE MEMBERSHIP 8.4.1 In accordance with Standing Orders, the Board is required to elect a minimum of

five Board Members for ARCC Membership at its first meeting following the AGM. 8.4.2 Following a selection process held on 16 September 2020, the Chair of the Board

recommended that Geoff Walker, Andrew Dickinson, Geoff Bagnall, Adeola Adekele and Bill Blincoe be members of the ARCC. Standing Orders state that the Chair of the ARCC must be an Independent Board Member and therefore the Chair of the Group Board has recommended Geoff Walker as Chair of the ARCC.

8.4.3 Board were informed that NCC has recommended Ethan Radford as the NCC

representative on the ARCC. RESOLUTION:

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The Board agreed: 1. The ARCC Membership as being Geoff Walker, Andrew Dickinson,

Geoff Bagnall, Adeola Adekele and Bill Blincoe. 2. To the appointment of Geoff Walker as Chair of the ARCC.

8.5 GOVERNANCE AND SELECTION COMMITTEE MEMBERSHIP 8.5.1 In accordance with Standing Orders, the Board is required to elect a minimum of

four Board Members for Governance and Selection Committee Membership at its first meeting following the AGM.

8.5.2 Following a selection process held on 16 September 2020, the Chair of the Board

recommended that Malcolm Sharp, MBE, Mike Khouri-Bent, Rebecca Langton and Karen Humble be members of the Governance and Selection Committee. The Committee will elect a Chair at its first meeting after the AGM.

RESOLUTION:

The Board agreed:

1. The Governance and Selection Committee Membership as being Malcolm Sharp, MBE, Mike Khouri-Bent, Rebecca Langton and Karen Humble.

8.6 TERMS OF REFERENCE REVIEW UPDATE 8.6.1 The Board were informed that as part of the Governance Review implemented last

year, it was agreed to review Terms of Reference annually. However, no changes are proposed to Terms of Reference at this stage, as there will be a thorough review in light of the forthcoming National Housing Federation (NHF) Code of Governance and the outcomes of the Robin Hood Energy (RHE) Action Plan.

RESOLUTION:

The Board agreed:

1. To note the update to the Terms of Reference review. 8.7 PARTNERSHIP AGREEMENT SUMMARY OF CHANGES 8.7.1 Board were informed that on 21 August 2020, NCH executed the updated

Partnership Agreement with NCC. The Partnership Agreement covers the next 30 years. The Board were informed that a summary of the key changes were included in the Board Papers.

RESOLUTION:

The Board agreed:

1. To note the key changes to the NCH/NCC Partnership Agreement. 8.8 BOARD MEMBERS’ EXPENSES

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8.8.1 The Company Secretary presented to Board a breakdown of Board expenses for 2019/2020 in accordance with Standing Orders.

RESOLUTION

The Board agreed:

1. To note the Board Member expenses. 8.9 BOARD REMUNERATION UPDATE 8.9.1 As part of the Governance Review which was implemented for September 2019, an

outstanding item that required further consideration was the review into Board Remuneration.

8.9.2 The Governance and Selection Committee at their meeting on 7 April 2020 deferred

the decision to agree to remuneration Board Members to the Partnership Forum. The Partnership Forum at their meeting on the 31 July 2020 agreed to defer the decision on Board Remuneration until a later date. This is was in recognition of the current NCC financial climate. The Chair of the Group Board considered that the report could be resubmitted to the G&SC to consider again in light of the recent RHE Action Plan.

RESOLUTION:

The Board agreed:

1. To note the update on Board Remuneration. 8.10 ROBIN HOOD ENERGY ACTION PLAN AND BOARD MEETING UPDATE. 8.10.1 The Company Secretary informed the Board that a meeting has been arranged with

Board Members on 12 November 2020 to discuss the Robin Hood Energy (RHE) Action Plan.

RESOLUTION:

The Board agreed:

1. To note the update on the Robin Hood Energy Action Plan. 8.11 BOARD AWAY DAY UPDATE 8.11.1 The Company Secretary informed the Board that an Away Day has been arranged

with Board Member on 13 November 2020 to discuss and consider the Corporate Plan 2021/2024.

RESOLUTION:

The Board agreed:

1. To note the update on the Board Away Day. 8.12 HOUSING OMBUDSMAN COMPLAINTS HANDLING CODE SELF-ASSESSMENT

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8.12.1 Board were informed that the Housing Ombudsman has introduced a new Complaint Handling Code that sets out requirements for member landlords that will allow them to respond to complaints more effectively and fairly. NCH will show compliance against the Code by completing the Housing Ombudsman Self-Assessment form. The Self-Assessment form will be reviewed by the Executive Management Team (EMT) and then with be brought to the ALMO Board, who will in turn make a final recommendation to the Group Board.

RESOLUTION:

The Board agreed:

1. To note the Housing Ombudsman Self-Assessment. 2. To delegate to the ALMO Board the authority to approve the Self-

Assessment and submit on behalf of the Group. 8.13 BOARD MEMBER APPROVALS 8.13.1 NCH reviewed its governance and compliance arrangements to find ways of

reducing the risk of people contracting the Covid-19 virus which included the execution of official documents that require a wet signature from a Board Member. The Board approved the arrangement at the Group Board Meeting on 18 June 2020 and requested that this approval be reassessed in three months.

8.13.2 The arrangements have been used in the following instances:

• At the request of NCH, NCC has agreed to advance to the Company the sum of £4,810,000 as a loan subject to the terms and conditions of the Agreement. The loan will be used to purchase and provide homes as temporary accommodation for families who have approached the Council as homeless. Executed on 31 July 2020.

• TR5 transfer of portfolio of 100 titles from NCH to Nottingham City Homes Enterprises Limited (NCHEL), executed on 28 August 2020.

8.13.3 Board are now asked to again waive related Standing Orders and agree to make all

approvals electronically and to delegate the final execution of official documents to the EMT, where necessary. If agreed, all Board Member approvals will be recorded and reported to the next Board Meeting in line with the Group Scheme of Delegation.

RESOLUTION:

The Board agreed:

1. To approve official documents to be agreed by Board Members electronically.

2. To delegate the execution of these documents to the Executive Management Team for a period of six months, or two meetings whichever is later.

8.14 2021 BOARD MEETINGS CALENDAR UPDATE 8.14.1 The Board were informed that the 2021 Board Meetings calendar is currently being

drafted. The dates will take into account NCC Council meetings, and will be shared

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with NCC Democratic Services. It is expected that a draft calendar will be shared with Board Members in November, ready for implementation for the 2021 calendar year.

RESOLUTION:

The Board agreed:

1. To note the update to the 2021 Board Meetings. 9 FINANCE REPORT 2020/21 – QUARTER 1 (END OF JUNE 2020) 9.1 The Assistant Director of Finance and Procurement (ADFP) provided an update to

the Board on the Group’s current financial position at the end of Quarter 1, which includes income and expenditure up till the end of June 2020. The key items brought to the Board’s attention were:

• The Group’s management accounts show an underspend against budget of £212k at the end of Quarter 1 (QR1). This underspend is just over 1% of the profiled budget at QR1 (£19 million).

• The Group position for the full year is forecast to be overspent by £570k against the budgeted surplus by £305k, resulting in a potential deficit of £265k.

• However, Government grant totalling £426k has been received from Furloughing staff. The outturn position would therefore move to a surplus of £161k with the inclusion of Furlough Grant.

• All Directorates remain in budget or are underspending and this is the position forecast for the full year with the exception of CR&M, whose budgets have been significantly affected by the impact of Corona Virus and the availability of work. The majority of Government grant received (£426k) relates to the furlough of CR&M staff.

• Corona Virus has significantly restricted NCH’s operations and restricted access to tenants, their homes and our own offices. It will continue to have, an impact on budgets and the Group’s financial position this year and, as highlighted in the 2021/22 Budget Strategy, next year as well.

• Corona had given rise to additional costs, such as cleaning and PPE, impacted on income levels and made carrying staff costs a cost pressures whilst works ceased or were significantly reduced and could also have an indirect impact on NCH having led to a significant increase in Housing Revenue Account (HRA) rent arrears.

• As part of the approval of the annual Financial Statements, the Board confirms that NCH shall continue to operate as a Going Concern i.e. NCH shall continue to operate and will be able to meet its liabilities for a period of at least 12 months.

• The Group’s revenue reserves allocated against agreed priorities carried forward into 2020/21 totalled £1 million and there has been limited spend against these to date. Priorities are reviewed by EMT on a monthly basis and include a contingency reserve of £0.45 million.

• Reserves cover all commitments made to date by NCH Board and are forecast to leave an unallocated / contingency capital reserve of £2.3 million.

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9.2 It was confirmed to Board that NCH only applied for Furlough grant where income was lost because staff members were unable to work. It was also confirmed to Board that NCH currently has a sufficient stock of PPE for staff in stock.

RESOLUTION:

The Board agreed:

1. To note the financial position at the end of Quarter 1 and the forecast outturn position for the 2020/21 financial year.

10 BUDGET STRATEGY 2021/22 10.1 The ADFP provided Board with the details of NCH’s strategy for the 2021/22 budget

The key items brought to the Board’s attention were: • There continues to be pressure on NCC’s HRA which funds the majority of

NCH’s activities, and hence NCH’s fees are likely to fall next year in contrast to cost pressures on expenditure budgets that have been identified.

• The overall budget gap is estimated to be between £1.6million and £3.2million.

• NCH operates with an annual turnover of just over £77 million this financial year.

• NCC can increase HRA rents, and hence income, by up to CPI+1% p.a. each year and based on the current CPI rate, this would be 1.2%.

• The budget challenges facing NCH have been set out as either ‘optimistic’, ‘likely’ or ‘pessimistic’ and establishing a balanced and achievable 2021/22 budget will be challenging for the Company.

• NCH’s budget assumptions includes an allocation of £1.5million for new build/acquisition reserves (to help fund increases in NCH stock) and to provide a refund of management fee of £2.95m to NCC.

• The Budget Strategy requires all 2021/22 Service Plans to set out proposals for 5% and 10% savings on their recurrent expenditure budgets.

• EMT have instituted a jobs freeze across NCH. Any new recruitment must be authorised by a member of EMT before proceeding.

10.2 Board Members discussed the management refund to NCC and whether this should

be included in the base budget. This may not be transparent enough for Board Members and it was suggested to bring the refund as an option in the January Budget report alongside the savings proposed. The Chair stated that this issue had been raised with the Partnership Forum previously. The refund was described as paying back the shareholder any surplus that is accrued on NCH’s activities, and as such needed to be justified. Cllr Woodings informed Board that she would be happy to look at how the system was first set up, and compare it to how it is organised now.

10.3 Board Members also discussed the automatic rollover in the budget of the £1.5m set

aside for acquisitions and new builds. Board suggested that a formal recommendation be brought to Board in the January Budget report that covers this. The ADFP stated that the details of how the recommendations are reached are contained in the timetable for approval of the budget.

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RESOLUTION: The Board agreed:

1. To approve the 2021/22 Budget Strategy. 2. That rent increases for NCH social and affordable Homes of CPI+1% are

included in the 2021/22 budget. 11 BUILDING SAFETY COMPLIANCE POLICY 11.1 The Assistant Director of Asset Management (ADAM) provided Board with the

details of the Building Safety Compliance Policy. The key items brought to the Board’s attention were:

• NCH is committed to establishing, implementing and maintaining a policy of continuous improvement and performance of its Compliance related duties with regards to Gas Safety, Fire Safety, Control of Legionella and Water Hygiene, Asbestos, Electrical Safety and Lifting Equipment.

• The original Building Safety Compliance Policy was approved by Board in September 2019 and it was also agreed that there would be a review annually.

• The policy continues to be reinforced by a suite of management processes that goes behind these commitments to ensure key tasks and responsibilities are known and adhered to.

11.2 The ADAM informed Board of the key changes to the policy as follows:

• Asbestos within homes is now part of the compliance policy. Although this was done previously, it was not documented.

• Any property with an Electrical Installation Condition Reports (EICR) returned that has a recommended re-inspection date of less than five years will be reviewed to determine if a re-wire is required.

• In relation to Gas Management, in Market Rent properties where an in date gas certificate is available will be re-commissioned and a gas safety check completed in line with the Gas Safety Regulations.

• NCH has a programme of ‘Regular Tenant Contact’ and are developing a specific Resident Engagement Strategy for blocks +18m or +6 stories. These will ensure engagement with Block Champions and residents covering property safety; as part of these contacts residents are advised on the safety aspects of their building, their responsibilities and what to do in the event of fire. All residents in ‘High Risk’ blocks, defined as buildings above 18m or Independent Living Schemes, will receive a visit or phone call at least once per year.

• NCH will work to introduce a Permit to Work Scheme (PWS) that will require all third parties needing to work on our blocks to seek permission to do so before any work is commenced.

RESOLUTION:

The Board agreed:

1. To approve the Building Safety Compliance Policy 2.0. 12 FOUNDATION CHARITABLE INCORPORATED ORGANISATION REPORT

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12.1 The Executive Assistant (EA) presented to Board details on the proposed

establishment of a Foundation Charitable Incorporated Organisation (FCIO).The main areas presented for Board’s consideration were:

• The NCH Group Corporate Plan 2018-2021 proposes to “explore the potential to create a charitable arm for the benefit of our residents if this could access and raise funds to support tenants and tenants groups to improve their estates and provide new opportunities for the people who live in them.”

• Focus Associates were engaged to advise on the feasibility of creating a charity and suggest how this might fit within the NCH group governance structure.

• Following consultation and expert advice, it is considered that a fully independent FCIO should be created.

• To best achieve the aims and objectives for the charity, it is recommended that the charity be independent of the NCH group structure. It should be constituted to best represent the interests of tenants, but supported by NCH, particularly as it gets established.

• The charitable objectives shall be to benefit social housing tenants and residents on social housing estates by supporting and enabling them to improve their neighbourhoods and communities and create better life opportunities for the people who live there.

• It will do this by working with existing Tenant and Resident Associations and community groups to identify community led projects and/ or services which improve the quality of life on our estates and seeking funds to deliver them.

• Trustee nominations from the NCH Boards where Board Members have a particular interest or experience of being involved in a community-led charity are welcomed.

• There is £25k in the base budget each year to fund the setting up and running of the Charity.

12.2 The Chair asked that any Board Member who is interested in being a Trustee on

this charity, to contact him directly. RESOLUTION:

The Board agreed:

1. To support the creation of a Foundation Charitable Incorporated Organisation that is independent of the NCH Group structure.

2. That the NCH Group will support the charity in its early inception through the application of allocated funding and staff resources.

3. For Board Members who are interested in being a Trustee, to contact the Chair of the Board.

13 NEW GOVERNMENT PROPOSALS AND EXTERNAL POLICY DEVELOPMENTS

WITH AN IMPACT ON NOTTINGHAM CITY HOMES 13.1 The Policy and Planning Manager (PPM) informed Board of the following key

issues: • It was noted that the government has been more active in the latter part of

the lockdown.

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• Publication of the Building Safety Bill and Fire Orders. • Publication of the Affordable Homes Programme. • The Planning White Paper published in August have proposals that

particularly effect Local Plans, development management and developer contributions such as Section 106 affordable housing contributions.

• There is also a Social Housing White Paper promised in the autumn • A White Paper on devolution and the potential reconfiguration of local

government in England may be published in the autumn.

13.2 The CE informed Board that feedback from the recent virtual Conservative Party

Conference with Robert Jenrick was that the Housing Minster was predominantly focussed on home ownership.

RESOLUTION:

The Board agreed:

1. To note the update and considers any relevant implications for the NCH Group.

14 GROUP QUARTER ONE PERFORMANCE REPORT 2020-2021 14.1 The Head of Business Transformation provided the Board with an update on how

NCH Group is performing. The key items brought to the Board’s attention were: • Performance for the first quarter of 2020/21 has been significantly affected by

the Covid-19 pandemic. To mitigate the effects of this, NCH has an action plan and it has been of rolling out its Recovery and Re-Invention plan.

• During the pandemic as part of our commitment to our tenants we contacted all 2,300 of our Independent Living Scheme residents, highlighting 13 isolated individuals with no family or friends not previously identified on any of the government or council lists.

• We also contacted approximately 5000 general needs households who we recognised as potentially vulnerable due to age or ill health.

• Of our 11 measures, four are exceeding target with seven under target. The impact of COVID-19 will make it a challenge to meet our final corporate targets in certain areas, especially new builds where site work was suspended for a number of weeks.

• The intake of new apprentices continues to be strong showing a commitment to helping our city residents into employment and we have already met the three year corporate target for this measure. Board were informed that the number of female and BAME apprentices continue to rise each year. The Company Secretary will provide Board Members with a breakdown of apprentices. It was also noted that this year is the fifth year of NCH’s Women in Construction scheme.

• The measures for private customers using community alarms and delivering additional supported living dwellings have also met their three year plan target.

• The measures for private customers using community alarms and delivering additional supported living dwellings have also met their 3 year plan target.

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• Sickness for Quarter 1 which we expected to be potentially hit hard by Covid-19 has only fractionally missed its quarterly target reflecting the hard work of all the teams involved with supporting our staff. The Company Secretary informed Board that the number of Sickness days for NCH is now at eight days, which is a significant drop.

RESOLUTION:

The Board agreed:

1. To note the contents of the report. 15 ANNUAL HEALTH AND SAFETY REPORT - 01/04/2019 to 31/03/2020 15.1 The Head of Health and Safety (HOHS) informed Board that the purpose of the

report is to give Board an overview of the health and safety management arrangements and objectives. The key items brought to the Board’s attention were:

• The Board has overall responsibility for setting the Health and Safety Policy and objectives, and has an oversight for health, safety and welfare of the organisation’s activities.

• Health and Safety is managed at an operational level by the Executive Management Team (EMT), supported by the Health and Safety Committee.

• Nottingham City Homes (NCH) is certified to BS OHSAS 18001:2007 Occupational Health and Safety Assessment Series, which is a widely endorsed recognition.

• NCH enjoys a strong relationship with Nottinghamshire Fire and Rescue Service (NFRS), with the Health and Safety Executive (HSE) enforcing workplace legislation in respect to the activities undertaken by NCH. There has been one Notice of Deficiency issued by NFRS in the reporting period. NFRS have joined the Building Safety Group

• There has been a reduction in the number of reported accidents and incidents. The number of RIDDOR reports have also reduced in comparison to the previous year.

• Whilst outside of the reporting period, the current Covid-19 pandemic has had a significant impact on the business.

• Progress against Health and Safety Policy objectives are moving along nicely.

• The move to ISO 45001 has now moved to September 2021, however there is still a desire to transition as soon as possible.

• The Health and Safety, and Employee Wellbeing Policy Statement has been revised and updated.

15.2 Board discussed the relevant Health and Safety statistics and noticed an increase in

reversing incidents. The HOHS informed Board that a focus has been put on this issue, and all vehicles now have reversing cameras installed which has reduced the number. Board was also informed that NCH insurance is due for renewal and review in February 2021.

RESOLUTION:

The Board agreed:

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1. To note the contents of the report.

16 ANY OTHER BUSINESS

Board discussed whether there was a need for more frequent Board Meetings. It was suggested that a less formal meeting could be held every other month. The Chair will consider this.

17 DATE OF THE NEXT MEETING

The next scheduled meeting will be in the new year.

The meeting closed at 19:23

SIGNED………………………………………………… DATE ……………………..

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Return to Agenda

ITEM: 1.4 AUDIT RISK AND COMPLIANCE COMMITTEE

NOTTINGHAM CITY HOMES LIMITED

AUDIT RISK AND COMPLIANCE COMMITTEE MINUTES of the PUBLIC MEETING held on 20 OCTOBER 2020 via Microsoft

Teams Board Members Geoff Bagnall

Bill Blincoe Andrew Dickinson Adeola Adeleke Ethan Radford Geoff Walker (Chair)

Also in Attendance: Andrew Brunyseels

Tom Moulsdale (Minute taker) Nick Murphy John Slater George Pashley Sue Smith Darren Phillips Heather Fry Sam McGrady Steve Edlin Steve Feast Adrian Cheetham Jo Clifford Wendy Adams

Head of Health and Safety Governance Officer Chief Executive Group Auditor, Nottingham City Council (NCC) Company Secretary Head of Business Transformation Assistant Director of Finance and Procurement Safer Neighbourhoods Housing Manager Director, DTP Assistant Director Asset Management Director of Housing Director of Property Director of Corporate Resources Nottingham on Call Manager

1 WELCOME, INTRODUCTIONS & CHAIR’S ANNOUNCEMENTS 1.1 The Chair opened the meeting and welcomed Committee Members. The Chair

introduced Sam McGrady, DTP representative, and explained she was attending the meeting in order to complete the final stage of their review of the Groups Risk Management Framework.

1.2 The Chair also thanked previous Audit, Risk and Compliance Committee (ARCC)

Member, Dave Pitt, for his years of service to ARCC and the Group. 2 APOLOGIES FOR ABSENCE

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None. 3 DECLARATIONS OF INTEREST 3.1 None declared. 4 CONFIRMATION OF MINUTES OF THE MEETING HELD ON 30 JUNE 2020 4.1 The minutes were agreed as a true record. The Chair signed the minutes. 5 FEEDBACK FROM 5.1 The Chief Executive informed members that the NCC Overview and Scrutiny

Committee had approved a Robin Hood Energy (RHE) Action Plan which had been signed off by their Executive Board. Consequently, NCC would be meeting with Nottingham City Homes (NCH) Board Members to discuss the implications for them. This has been arranged for the 12 November 2020. Meetings invitations have been issued to Board Members for this meeting.

5.2 The Committee queried when the 30-year Housing Revenue Account (HRA)

Business Plan will be available to NCH. It was explained that the Group has asked NCC to widen scope of works for the Business Plan, but does not anticipate receiving the plan in the near future. The Group has offered to support NCC where possible to progress this.

6 MATTERS ARISING 6.1 The Chair, reviewing section 7.4 of the previous minutes, asked how many

Dispensations Against Financial Regulations there has been last month, and whether the problems had been solved. It was expressed that the solution to wait for the implementation of Oracle Fusion is not sufficient and referenced that this has been raised by external auditors on multiple occasions.

7 AUDIT 7.1 INTERNAL AUDIT 7.1.1 NEW BUILD 7.1.1.1 The Audit Manager, NCC, presented the New Build 2020/21 Internal Audit report.

The report provides significant assurance with no recommendations for improvement made.

7.1.1.2 The Chief Executive expressed his approval of the New Build Team and all the

work they have completed in this area. It was explained that three years ago the Group would not expect to get a clean audit in this area, so to achieve significant assurance this time round is a significant milestone for the Group.

7.1.2 ECINS

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7.1.2.1 The Audit Manager, NCC, presented the E-CINs review Internal Audit report. The report provides significant assurance with three medium priority recommendations.

7.2 OUTSTANDING INTERNAL AUDIT ACTIONS 7.2.1 The Head of Business Transformation (HBT) reported that the Audit Register

contains six audit recommendations that have yet to be implemented of which three are high level and three are medium level. This compares with 14 at the end of the previous quarter. There have been two audit actions added from new audits.

7.2.2 The Chair thanked officers for the progress made and queried the outstanding

recommendation regarding the annual review of the Allocations Policy. It was explained that the business has moved on since this recommendation was made, and that this is NCC’s allocations policy which we implement and monitor.

RESOLUTIONS:

The Committee agreed to:

1. Confirm that they are satisfied with the progress made by appropriate managers in implementing the agreed audit actions.

2. Approve the revise target dates as shown in the report. 7.3 TELECARE SERVICES ASSOCIATION (TSA) AUDIT AND ACCREDITATION 7.3.1 The Nottingham on Call Business Manager (NoCBM) provided the Committee

with detail of the outcome of the 2020 Telecare Services Association (TSA) audit inspection of Nottingham on Call (NoC). The Audit was very successful with NoC awarded TSA accreditation.

7.3.2 Achieving and maintaining the TSA Quality Services Framework (QSF)

accreditation is paramount to the success of NoC as this demonstrates to existing and potential customers that NoC operates a quality service. The accreditation against a set of 13 separate modules sets the benchmark for the way NoC should operate and deliver its services and includes a robust set of Key Performance Indicators (KPIs) that reflect the importance of delivering a consistent and professional service to some of the most vulnerable people in society. Attainment of accreditation also ensures that NoC is in a position to bid for external contracts which generally stipulate that bidders must hold the TSA accreditation.

7.3.3 The Committee thanked the NoCBM and her team for all their work in achieving

this accreditation. RESOLUTIONS:

The Committee agreed to:

1. Note the content of the report.

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8 RISK 8.1 GROUP RISK MANAGEMENT 8.2 The Head of Risk Management (HRM) explained that the Risk Management

Framework sets out how the NCH Group manages its risks. The overall responsibility for risk management within the Company lies with the NCH Group Board although it relies on the ARCC to scrutinise the provisions in place and provide it with a level of assurance that arrangements are in place to mitigate key risks. A summary of the Group’s key risks were highlighted for the Committee’s attention.

8.3 The Chair explained that he had asked for these additional risks to be included

for this meeting. This was to assure business continuity and management of risks during the Group transition of Executive Management as well as ongoing review of the Group’s Risk Management Framework.

8.4 The Committee queried the different risk appetite levels for the different areas of

business. It was explained that the Group has a dynamic approach to risk appetite, with an exceptionally low risk appetite for Health and Safety and a higher tolerance for new business ventures. The Chair stated that the Committee need to understand how to financially manage these risks as there is no connection to the financial position at ARCC.

8.5 The Chair highlighted that the Group has difference approaches the risk

dependant on the area, the lack of consistency means that not all risk registers contain risk owners or deadlines. The Company Secretary acknowledged the comments stated that for specific risks, such as COVID and Brexit, that actions are in place but the changing nature of these items causes difficulty in structuring reports. The Chief Executive added that the query regarding different risk register templates will be assessed as part of the DTP review. However, it was noted that there will have to be a difference between a strategic and operation risk register. It is important that the Committee has confidence in the mitigating actions.

8.6 The Committee noted the level of high level risks in the Arboretum Risk Register.

The Chair stated that an Arboretum Gateway Review is being arranged in the near future. At that meeting it will be determined if the actions taken are sufficient enough to mitigate the known risks.

8.7 The Committee held a discussion on the Group’s unassigned capital reserves

and expressed their expectation of further updates within the upcoming budgets assumptions Group Board report. The Assistant Director of Finance and Procurement (ADFP) explained that, in the worst case scenario, funding will not been committed in some area schemes if cash flow issues occur. The Chair expressed the ARCC’s interest to manage risk but not compromise our delivery priorities.

8.8 The Committee noted the monthly financial monitoring report provided to NCC,

and queried if there are any concerns that should be brought to ARCC’s attention. It was explained that the monthly monitoring reports were set up to allow NCC to understand their wholly owned companies, in light of the RHE action plan. Areas

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of concern included outstanding loans from NCC which leave the Group in a negative cash flow position. All the companies are very different in nature so judging them by the same KPIs may cause confusion. The Groups financial monitoring report will be presented to NCC in January. Any concerns will be raised with NCC at that time.

8.9 DISPENSATIONS FROM FINANCIAL REGULATIONS 8.9.1 The Committee noted the Dispensations against financial regulations to be

reported for this meeting. 8.10 EMPLOYEE FRAUD REPORTING 8.10.1 The Committee noted the employee fraud cases reported to the Committee since

the last meeting. 8.10.2 The Chair stated that the Committee is predominantly interested in the lessons

learned from these cases, what can the Group put in place to stop these cases happening again, or has the fraud been acknowledged at the right point.

8.11 NEW CASES OR MATERIAL CHANGES TO PREVIOUISLY REPORTED HIGH

RISK CASES 8.11.1 The Chair asked about the employment case detailed in this report. It was

explained that every opportunity was being taken to mediate and close the case but so far the individual, who no longer works for the Company, has chosen not to engage or co-operate. The Chair acknowledged that the case was being managed as well as it could, and that fees are still likely to be incurred regardless of action taken.

RESOLUTIONS:

The Committee agreed to:

1. Note the content of the report. 9 COMPLIANCE 9.1 ANNUAL STANDARDS AND ACCREDITATIONS REPORT 9.1.1 The Head of Business Transformation (HBT) explained that the report is an

update to the report brought to the Audit Committee in 2019 that sets out how NCH and Nottingham City Homes Registered Provider (NCH RP) meet the regulatory standards set out by the Regulator of Social Housing. The specific Consumer Standard has been shared with NCC as it applies to stock they are responsible for. The anticipated Social Housing White Paper is expected to require enhanced regulatory standards which have already been outlined in the 2018 Social Housing Green Paper and set out as obligations by the regulator since 2018. Housing providers such as NCH and NCH RP must comply with these regulatory standards which are defined as both Economic Standards and Consumer Standards.

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9.1.2 The Chief Executive stated that the Regulator of Social Housing (RoSH)

standards are expected to increase, therefore it is important that the Group is disciplined in addressing these as soon as they are known. A report on this will be taken to NCH RP as specific regulatory standards apply to them, while Consumer Standards only apply to social housing stock.

9.2 PROPERTY SAFETY COMPLIANCE REPORT – UPDATE 9.2.1 The Assistant Director of Asset Management (ADAM) provided ARCC with an

update on how the company is managing its responsibility for property safety compliance and regulation. It was reported that NCH’s updated Building Safety Compliance Policy 2.0 was approved by the NCH Group Board on 7 October 2020.

9.2.2 The Committee sought assurance that the Group is undertaking all action

necessary relating to gas servicing. The ADAM confirmed that the Group is logging all attempts to gain access to properties in line with current guidance. As long as the Group can evidence that this has taken place then the Group will not be held to account.

RESOLUTIONS:

The Committee agreed to:

1. Note the content of the report. 9.3 NCC/NFRS FIRE SAFETY INSPECTIONS 9.3.1 The Company Secretary information the Committee that NCC and Nottingham

Fire and Rescue Service (NFRS) have joined up to inspect fire protection measures in Multiple-Occupancy Residential Buildings (MORBs) across the City.

9.3.2 NCH’s high rise housing is due to be inspected at the end of this or the start of

next year. Further information is awaited on Independent Living Schemes. Full Fire Risk Assessments are carried out on each building with a communal areas and high rise stock on an annual basis. Further information will be brought back to ARCC once the outcome of inspections are known.

RESOLUTIONS:

The Committee agreed to:

1. Note the content of the report. 10 ITEMS FOR DISCUSSION 10.1 REVIEW OF ARCC TERMS OF REFERENCE 10.1.1 In light of the recent RHE Action Plan from NCC and impending legislation, and

their possible implications for NCH, the Chair of the Committee requested that the

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Committee reviews, and comments on, the revised Terms of Reference for the ARCC. This is in preparation to a full review of the Groups Governance processes and Standing Orders at the Group Board in the next year.

10.1.2 The Chair queried, that as part of the review, should ARCC receive more financial reporting to better understand the Groups position to risk. The Chief Executive explained that the NCC public interest report highlights that training was a particular issue for RHE, with five representatives having no experience in the energy sector. Consequently, the Group needs assurance that ARCC, along with all entities within the Group structure, has the appropriate training and development needed to undertake their remit.

RESOLUTIONS:

The Committee agreed to:

1. Note the content of the report.

11 ANY OTHER BUSINESS

11.1 None.

12 DATE OF THE NEXT MEETING

The next scheduled meeting will be confirmed at a later date.

The meeting closed at 18:42

SIGNED………………………………………………… DATE ……………………..

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Return to Agenda

Housing Ombudsman Complaint Handling Guide and Self-Assessment

Jacquie Beacroft Customer Experience and Insight Manager

Date 3 November 2020

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Summary This report outlines the proposals and guidelines set out in the new Housing Ombudsman Complaint Handling Guide published in July 2020. It can be found by clicking here.

The Ombudsman consulted with a wide range of groups and organisations across the sector including National Housing Federation (NHF), Housemark, Tenant Participation Advisory Service (TPAS), Chartered Institute of Housing (CIH) and residents with the response being the publication of the code.

The aims of the code are:

• To provide a framework to promote high quality complaint handling • To promote better practice for all • Ensure greater access and consistency to complaints • Faster resolution of complaints • Use learning from complaints to drive service improvements • Set right culture for organizations both at board level and frontline

The Code also requests that Housing providers undertake a self-assessment against the new criteria. The timescale for the completion of self- assessment is to be undertaken and signed off by Group Board by 31 December 2020 with any actions to be completed no later than March 2021 and for the assessment to be published for customers to view. Group Board has delegated sign off of the Self- Assessment form to the ALMO Board.

Report Detail This report provides information on our implementation of the new Complaint Code and Scheme recently published by the Ombudsman and seeks agreement on how to handle complaints in the future. Details of Nottingham City Homes’ (NCH) self-assessment and progress against the new Code to date are attached in Appendix 1.

Whilst NCH currently meets many of the standards in the proposed code and self- assessment, some areas will need review. The current complaints policy can be found by clicking here. The Policy includes Complaints, Comments and Compliments. Work is in progress to review the existing policy. This will include adopting a clear 2 Stage Internal Complaints process with an initial pre formal complaint stage to look at ensuring wherever possible customer dissatisfaction or complaint can be resolved at first point of contact. This is a key component of the new Code.

Complaints performance is reported to Board on an annual basis and quarterly information is included within the corporate performance report. A full tenant-led review of the complaint service took place last year and many of the requirements contained within the code were identified prior to this and have been introduced. Whilst the code is prescriptive in certain areas, there are still some areas of discretion.

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The new Code defines a complaint as follows

“A complaint shall be defined as an expression of dissatisfaction, however made, about the standard of service, actions or lack of action by the organisation, its own staff, or those acting on its behalf, affecting an individual resident or group of residents”

One consideration is for a designated complaints panel to be integrated into the review/scrutiny panel on a quarterly basis to review overarching trends and learning form complaints and customer feedback. Outcomes could be integrated with information from satisfaction surveys including STAR surveys.

The code also requires clear time frames for responses to be set out to help manage customer expectations. It requires fairness in complaint handling, with a customer focused approach and regular communication throughout the process to keep the customer informed. Final outcomes should be discussed and shared with the customer prior to sending formal response. The Code aims to ensure organisations are embracing complaints and feedback and that for those raising complaints they feel that the process is easy, accessible and comfortable.

The timescales set out in the Code are:

• All complaints to be logged and acknowledged within five working days of receipt • Stage One complaints to be answered within 10 working days of receipt • Stage Two complaints to be answered within 20 working days from request to escalate.

Overall, many of the actions are quick wins such as accessibility/publicity/information and signposting. Work is also underway to ensure we advertise and communicate how to complain and what to expect in terms of communication, timescales and signposting to Ombudsman Services throughout the process for customers to be informed and advised.

The complaint reporting is likely to feature in additional regulatory reporting requirements contained within the Social Housing white paper and these will be incorporated into any complaint handling process.

Self-assessment-Action Plan The self –assessment included as Appendix 1 shows our current position at this time and provides a clear update on areas within the code we are already fully compliant on. There are several areas in progress which will continue to be developed as indicated. These include having a clear internal process for resolving complaints and to develop a first fix approach across the organisation for customer’s issues to be resolved at a pre complaint stage. Alongside this a full training and development package will be available for all staff to handle complaints consistently and feel empowered to deal with issues.

From a customer’s perspective the NCH website will allow a greater self-serve for customers to identify issues, look at specific service area, related service standards, policies and Frequently

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Asked Questions (FAQ’s) to ensure they are fully aware of all information to raise concerns and make a complaint or to be better informed and manage expectations.

Communication throughout the complaint process will be reviewed to ensure there is more regular contact with the customer or those representing them, and ensure all issues are being handled correctly. Also prior to any adverse responses being sent customers will have the opportunity to discuss these with the officer handling the complaint.

Learning from complaints and dissatisfied customers is pivotal in improving service delivery and customer service and is seen as a very important component in supporting delivery of the Corporate Plan.

Work around outcomes and trends from complaints will continue to be used and reported at all levels within the organisation. These will also be shared and explained to customers on a regular basis using various social platforms.

Strategic overview and service improvement will be presented with actions from quarterly meetings with engaged customers and senior managers to ensure on-going scrutiny and engagement is present.

Recommendations: To agree the self - assessment action plan and associated actions and timescales

Regular updates on the action plan reported to ALMO Board and annual review of compliance against code.

Financial / Legal / OD Implications The report was circulated to Legal, Head of HR and Assistant Director of Finance and Procurement for comment. Any comments and observations made have been included and noted within the report.

Appendices and Background Papers Appendix 1 Self-Assessment

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Appendix 1

Self-Assessment Action Plan

1 Definition of a complaint Current position Action required Outcome/Evidence Complete/In Progress/Not Started

Timescale

Does the complaints process use the following definition of a complaint?

An expression of dissatisfaction, however made, about the standard of service, actions or lack of action by the organisation, its own staff, or those acting on its behalf, affecting an individual resident or group of residents.

This definition is not included in current policy

This will be included in revised Complaints Policy

Added in draft Complaints Policy and guidance

In progress. First Draft to be discussed EMT and CEP for comments Oct/Nov 20

February 2021

Does the policy have exclusions where a complaint will not be considered?

Already in existing policy

Will be maintained in new policy so no specific actions/changes required

New policy to be provided with self-assessment Complete

September 2020

Are these exclusions reasonable and fair to residents?

Policy is agreed by tenant board, and agreement to its publication suggests satisfaction with its fairness. Additionally, the exclusions do not stop tenants making complaints, they only stop them making the same complaints again, or directs them to

N/A Provide details of policy review process with new policy Complete

September 2020

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the relevant appeals process in place of a complaint

2 Accessibility Current position Action required Outcome/Evidence Complete/In Progress/Not Started

Are multiple accessibility routes available for residents to make a complaint?

We already offer access to complaints by multiple channels – telephone, email, social media

Improve online availability by adding online complaint form to website. Leaflet also to be produced giving simple guide on complaint process

Complaint form drafted and submitted to marketing to be put on website.

Leaflet to be produced in line with process from new policy

In progress

February 2021

Is the complaints policy and procedure available online?

Not available online Add to website Added to website by Marketing

team Complete September

2020

Do we have a reasonable adjustments policy?

Yes Need to save copy of relevant policy

In progress October

2020

Do we regularly advise residents about our complaints process?

Information is available in new tenants pack. After that, only available online or on request

Communication plan to be made with Marketing to publicise more

Meeting held with Marketing, plan in progress In progress

December 2020

3 Complaints team and process Current position Action required Outcome/Evidence Complete/In Progress/Not Started

Is there a complaint officer or equivalent in post?

Yes N/A Provide details of team structure Complete N/A

Does the complaint officer have autonomy to resolve complaints?

Yes N/A Complete N/A

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Does the complaint officer have authority to compel engagement from other departments to resolve disputes?

Yes N/A Complete

N/A

If there is a third stage to the complaints procedure are residents involved in the decision making?

Currently tenant involvement at second stage (TCP)

Tenant involvement to be included in escalation process and in proposed quarterly performance monitoring/ scrutiny panel for Complaints to be considered to review trends/outcomes

To be proposed in revised Policy as part of on- going learning and development from Complaints/Feedback/Satisfaction

In progress

February 2021

Is any third stage optional for residents?

No third stage N/A New policy will be two stage Complete N/A

Does the final stage response set out residents’ right to refer the matter to the Housing Ombudsman Service?

Yes, details are provided at conclusion of both stage 1 and 2

N/A Complete

September 2020

Do we keep a record of complaint correspondence including correspondence from the resident?

Yes N/A Complete

September 2020

At what stage are most complaints resolved?

Stage 1

99% of complaints for both 2018/19 and 2019/20

N/A

In 2018/19 2,243 complaints, 23 went to formal stage 2. In 2019/20 2,236 complaints, 25 went to formal stage 2. Annual report can be given as evidence as it shows these figures.

Complete

September 2020

4 Communication Current position Action required Outcome/Evidence Complete/In Progress/Not Started

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Are residents kept informed and updated during the complaints process?

Communication with customer takes place at beginning of complaint and at conclusion of complaint in all cases, and during investigation in most cases

Ensure communication with customer takes place during investigation, include as mandatory step in new policy

In progress

December 2020

Are residents informed of the landlord’s position and given a chance to respond and challenge any area of dispute before the final decision?

This happens sometimes as part of communication during investigation, but is not mandated in policy

Make part of new complaint policy

In progress

February 2021

Are all complaints acknowledged and logged within five days?

Yes N/A Complete September

2020

Are residents advised of how to escalate at the end of each stage?

Yes, details of escalation options are included in every complaint response

N/A Complete

September 2020

What proportion of complaints are resolved at stage one?

99% in 2018/19 and 2019/20 N/A Provide copy of 2019/20 annual

report which shows this data Complete September

2020

What proportion of complaints are resolved at stage two?

Almost all Complaints are resolved at Stage ! As above of those which are escalated to Stage 2 almost all are resolved.

N/A Provide copy of 2019/20 annual report which shows this data Complete

September 2020

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What proportion of complaint responses are sent within Code timescales?

• Stage one Stage one (with extension)

• Stage two Stage two (with extension)

2019/20 figures Stage One 2,237 complaints In target – 1,707 (with ext) – 1,826 Stage Two No set timeframe for stage 2 as Tenant Panel

Complete

September 2020

Where timescales have been extended did we have good reason?

Yes, extensions are agreed only when necessary to ensure the customer can be given a full and comprehensive response and these are agreed with Customer directly and confirmed in writing with reason for extension request.

N/A Will be included in new policy Complete

September 2020

Where timescales have been extended did we keep the resident informed?

Yes, customers are advised either by the investigating officer, or by means of an ‘Interim letter’

N/A Will be included in new policy, interim letter template can be given as evidence

Complete

September 2020

What proportion of complaints do we resolve to residents’ satisfaction?

Unknown

Develop a complaint handling satisfaction survey to be sent at closure of

In progress

November 2020

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complaint process

5 Cooperation with Housing Ombudsman Service Current position Action required Outcome/Evidence

Complete/In Progress/Not Started

Were all requests for evidence responded to within 15 days?

Yes, requests are monitored and responded within requested timeframes

N/A Complete

September 2020

Where the timescale was extended did we keep the Ombudsman informed?

Yes, if delays are expected the Ombudsman are informed at the soonest opportunity

N/A Complete

September 2020

6 Fairness in complaint handling Current position Action required Outcome/Evidence Complete/In Progress/Not Started

Are residents able to complain via a representative throughout?

Yes, we take complaints from anyone able to act on a customer’s behalf

N/A Will continue as part of new policy Complete

September 2020

If advice was given, was this accurate and easy to understand?

Yes, we use clear simple wording and avoid unnecessary jargon and offer follow-up communication if anything is unclear

N/A Will continue as part of new policy Complete

September 2020

How many cases did we refuse to escalate? What was the reason for the refusal?

In last 18 months, only 4 cases have been refused escalation. Two were due to being requests only for

N/A Will continue as part of new policy Complete

September 2020

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compensation (these were directed to compensation team to assist). The other two were refused by the panel themselves on the grounds that the escalation related to matters beyond the scope of the initial complaint

Did we explain our decision to the resident?

Yes, when escalation is refused a letter is sent to explain

N/A

Refusal letters can be sent as examples. CEP reviewed all correspondence a spart of recent scrutiny

Complete

September 2020

7 Outcomes and remedies Current position Action required Outcome/Evidence Complete/In Progress/Not Started

Where something has gone wrong are we taking appropriate steps to put things right?

Yes, one of the four key areas considered as part of an investigation is what steps we are taking to put it right

N/A Will continue as part of new policy Complete

September 2020

8 Continuous learning and improvement Current position Action required Outcome/Evidence

Complete/In Progress/Not Started

What improvements have we made as a result of learning from complaints?

Learning data is recorded on each complaint and fed back to relevant teams

Need to obtain some examples of improvements made from learning data

Examples of triaging some complaints on behalf of service where we can access work programme such as fencing/planned works and provide early resolution to

In progress

November 2020

40

customer/Access to information regarding work programmes can provide and update directly with customer. Other areas to be investigated

How do we share these lessons with: a) residents? b) the board/governing body? c) In the Annual Report?

We currently share learning data with board and in quarterly/annual reports, but not with customers

Start showing improvements via ‘You Said, We Did’ on social media and/or NCH news for customer awareness

Produce quarterly performance EMT reports

Monthly pivot information to CR&M re trends and changes in improvements/adjustments made

Annual Complaints report to EMT and ALMO Board.

Need to develop Annual Customer Complaints Report/Integrate with Annual Performance Plan

In progress

December 2020

Has the Code made a difference to how we respond to complaints?

Has provided greater focus and spotlight particularly around accessibility and communication. Addressed current Policy and process to have 2 internal stages for resolution as proposed in draft Policy.

To be adopted in comms plan and revised Policy with actions already taken to uplift and improve information around existing process and policy on an interim basis.

In progress

December 2020

What changes have we made?

Amended current Policy and stages, increased communication and signposting around how to

In progress

December 2020

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complain. More social media and digitally friendly for customers to be informed and make contact in their preferred method.

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Return to Agenda

Housing Revenue Account

Darren Phillips

3 November 2020

43

2020/21 Housing Revenue Account (HRA) The latest position for the Housing Revenue Account (HRA) 2020/21 is shown in the table below. The main variance is a reduction in rental income due to rising arrears caused by the economic impact of Covid-19 on tenants

It is possible that rent arrears may increase by £2.3m in the current year, so the budgeted contribution to the Bad Debt Provision has been increases. Arrears are currently £0.9m higher than this time last year however the two week rent free period has been brought forward. There have also been an increase in Universal Credit claims. The current position impacted by Covid-19 means that the position forecast for the full year is an overspend of £0.3m, which will reduce the working balance to £7.3m. The working balance is held to allow for unexpected costs or loss of income i.e. a contingency. The working balance has been increased from £4m a few years ago to the current balance based on increasing the contingency for the impact of Universal Credit. Management budgets are in the table above but not all of this budget comes to Nottingham City homes (NCH), which is shown in the table below:

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Management Original Budget

£m

NCH 22,649

Tenant Incentive Scheme 2,000

Public Realm 3,104

CCTV 1,381

Retained Housing 4,391

33,525

Within the budgets NCH receives there are also number of services provided by Nottingham City Council (NCC). The Pie Chart below shows how the expenditure budgets in the HRA are made up, as well as the total of NCH HRA budgets that are returned to NCC.

The main risks in relation to the HRA this year are anticipated to be the impact of:

Corona Virus on rent arrears and potentially bad debts. Universal Credit on cost of collection and bad debts. Right To Buys on rental income of (homes sold to tenants, with reduces rental income).

HRA Debt Costs£15m

NCC Retained£8m

Depreciation£29 m

Bad Debt Provision

Responsible Tenants Reward Scheme

Repairs & Maintenance Fee

£27m NCH services£13m

NCC Services£7m

NCC Refund£3m

Management Fee£23m

Total HRA Budget = £105mNCH management & maintenance = £40m Deprecation and debt = £45mRetained or returned to NCC = £20m

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NCC is able to increase the rents charged each year by Consumer Price Index (CPI) +1%. The majority of HRA budgets are for staffing resources services which have increased in the last few years due to the pay award (2% in 2019/20 and 2.75% this year) and employer pension contributions (rose from 14% in 2019/20 to 17.8% this year). When we consulted with tenants they told us that they strongly supported maintaining the investment in home and services and as costs, such as employees, continue to rise this can only be done if rents are increased too.

In addition to the budgets in the HRA that support the maintenance of tenant’s homes, the HRA Capital Programme ensure we continue to invest in the Housing stock. The programme over the next five years totals £247m and this year’s spend is anticipated to be just under £55m.

One of key parts of the Capital Programme is ‘Building a Better Nottingham’. These budgets deliver additional homes for tenants and go some way to replacing the housing stock lost to Right to Buys. This year these budgets total over £22m.

Both the HRA and the HRA Capital Programme contribute to the ALMOs budgets as follows which we report on quarterly:

Contact officer Name: Darren Phillips

Address: Loxley House, Station Street, Nottingham NG2 3NJ. Tel: 0115 746 429: E-mail: darren.phillips@nottinghamcityhomes.org.uk

Date: 21st October 2020

2021 BUDGET

£'000Income

Management Fee AL10 22,649Repairs Fee AL11 26,884Capital Fee AL13 1,623Capital Works AL12 6,480Other Income AL1 3,058

60,693Expenditure

Employee Costs AL2 35,147Non-Pay Costs 21,342NCC Refund ### 2,950Earmarked for Reserves 1,500

60,940

AL 247

ALMO (HRA)

Total

(Surplus) / Deficit Position

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