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Value for money - R esident E ngagement S crutiny.net 12 th February 2014

Value for money - R esident E ngagement S crutiny.net 12 th February 2014. Yvonne Davies Scrutiny & Empowerment Partners yvonne@tenantadvisor.net 07867 974659. Value for Money – Resident and Stakeholder engagement . What is VFM? VFM Statements – Governance - what is required from you

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Value for money - R esident E ngagement S crutiny.net 12 th February 2014

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  1. Value for money -Resident EngagementScrutiny.net 12th February 2014 Yvonne Davies Scrutiny & Empowerment Partners yvonne@tenantadvisor.net 07867 974659

  2. Value for Money – Resident and Stakeholder engagement • What is VFM? • VFM Statements – Governance - what is required from you • Regulator recent comments and opinions • What could a statement look like? • How could customers get involved? • Training and supporting customers to get engaged in VFM

  3. Training tenants in the 3 ‘E’s Economy • Price paid for what goes into providing a service e.g. Salaries, buildings, computers, contracts, supplies – anything else? Efficiency • A measure of productivity • How much you get out in relation to what you put in – do all activities deliver VFM? Effectiveness • The measure of the impact achieved • Qualitative or quantitative or both

  4. Outcomes The optimum balance between the ‘E’s • Relatively low costs • High productivity • Successful outcomes - examples might include: • Improved performance • Reduced costs • Increased customer satisfaction, • Reduced waste • Added value

  5. Four ways of achieving value • Reduce inputs (level of resources) for the same results • Reduce prices (cost of resources) for same results • Improve results using the same resources • Increase inputs (resources) for proportionate increase in results

  6. VFM – links to key HCA messages • Transparency and accountability • May 2012 - accounting standards – extra guidance • Honest self assessment • Open to challenge • Balance of listening to perspectives – your decision • Consultation and submission by 30th Sept each year (or 6 months after year end) • It will be harder for 2014

  7. Governance The Board is responsible for co-regulation and the delivery of the economic and consumer standards. If VFM is deemed to be poor – its leads to a downgrade in the Governance standard Some things are important ingredients: • Procurement and contract management? • Partnerships and shared services? • Business Processes? • Good practice? • Regulatory and legal requirements?

  8. Regulatory activity • April 2012New value for money standard introduced which states landlords must publish annual self-assessments • 12 September 2013Research by Baker Tilly reveals a third of landlords have not considered value for money delivered by environmental works • 30 September 2013Deadline passes for value for money self-assessment • 5 December 2013The Homes and Communities Agency says it will downgrade governance ratings of a number of landlords over self-assessments • 10 January 2014A survey of 66 landlords by Housemark finds 4 in 10 organisations have struggled to understand the new rules • 27 January 2014The HCA hints that providers failing to meet value for money rules may be penalised when bidding for grant

  9. Regulator judgements – what is expected G1 to G2 Downgrade Capacity building • Conversation • Challenge What is needed? • Priorities on spending • Look back and look forward In what? • Economic, Environment and Social outcomes

  10. Regulator commentary • HCA published its long-awaited bidding prospectus for England, excluding London, for the 2015/18 programme. The HCA prospectus places a heavy emphasis on value for money, with 49 mentions of the phrase in the 52-page document. • The HCA refers to its regulatory arm’s plan to downgrade around a dozen landlords on 12 February for inadequate value for money self-assessments

  11. Where to find information • There is a mention in the accounting directionhttp://www.homesandcommunities.co.uk/sites/default/files/our-work/accounts_direction_sept_2012_full.pdf(see page 9). • Regulating the Standards sets out a little more (see page 10, and 13 in particular)http://www.homesandcommunities.co.uk/sites/default/files/our-work/regulating_the_standards_may_2012.pdf • The content of the self-assessment is covered in the VfM standardhttp://www.homesandcommunities.co.uk/sites/default/files/our-work/regfwk-2012.pdf  (see p 14). 

  12. Tenant perspective • Are we getting the minimum regulatory requirement? • What is extra and do tenants know you do it? • What about the private sector, what do they get? • What is measured - is it for customers or landlords? • Time in meetings “v” outcomes • How do we compare?

  13. What might tenants be interested in? • Getting things right first time • Using performance information for action • Benchmarking comparisons – like for like • Reducing wasted processes • Prevention and early intervention Self assessment; peer review; internal audit

  14. A role for tenants and stakeholders • Role for internal audit and scrutiny group • What about non involved customers? • How do customers/stakeholders influence services? • What has been achieved? • What has changed? • How long did that take? • How have tenants/stakeholders been involved setting and managing budgets?

  15. Questions for customers to ask • How is expenditure prioritised? • How is VFM planned? • How is VFM secured? • How is VFM delivered? • How is VFM tested? • Who is responsible for VFM and how do they lead/champion VFM? • What has been acheived? Who knows that?

  16. Tenant pride in their contribution • Cestria - allow local charities to apply for funding • Eastlands homes – stopped paper for tenant groups – no buffets – just biscuits unless its an all day event • East Durham Homes – tenant led VFM service panel – quarterly – projects in procurement and targets for efficiencies –n savings back to front line activities • Herefordshire Housing – officers Panel – with 2 tenants reps • Liverpool Mutual Homes - review of VFM in service involvement – 2 tenants to join the panel • Preston Community Gateway – brought estate management back in house • Salix Homes saved £250k on scrutiny to date, brought call centre back in house and reduced the number of SIPs • Knowsley Housing– saved the cost of cold calling on gas servicing • Golden Gates– improved void turnaround times

  17. Stakeholder Perspective • Stakeholders can lose or gain due to your VFM decisions • Reduce apprehension by explaining the purpose of their involvement • Identify the relationship, then the type and degree of impact • Some impacts are small but the stakeholder group could be big • Usual format is a meeting – but…. Can you join your consultation of stakeholders with that of tenants and make it interactive?

  18. Social Return on Investment –the Ripple effects • Impact of ASB team • Impact of Homelessness team • Impact of supporting people team • Impact on you • Education, Police, Fire, local GPs, your communities • A & E Department, Social Services • NHS, Social Services, families, other agencies • Budget Cost Centre > funding

  19. What does a statement look like? • Public statement • Regulator statement - Could be different • Might put more or less on the website • What about Newsletter to tenants?

  20. Contents of a statement Introduction and background General introduction The need for VFM Objectives of the programme Regulatory requirements Stakeholders Views Overall programme approach and deliverables Overall approach to VFM VFM Service Reviews Understanding our costs Performance Management and demonstrating VFM The role of technology Procurement Programme monitoring, control and communication VFM Steering Group Governance and VFM Responsibility VFM Programme Communication Progress to date, 12 Month Outlook – or longer?Achievements in the last 12 months Forward outlook at the next 12 months

  21. What else on the statement? Social Return Social Return on Investment Reinvestment of VFM Gains Embedding VFM Training and Education VFM Cultural Assessments Critical success factors Review of VFM Statement – when? Which parts might residents be interested in?

  22. More info • Social_hearts_business_heads - NHF outlines a comprehensive new approach to value for money that goes beyond the narrow requirements of the regulator to offer the sector an approach that will help boards and senior managers run effective, efficient and tightly focused social businesses. • Smaller HAs: Does size matter– Place Changers • How to guides on repairs and generally on VFM from the CIH

  23. Thank-you – Discussion…so who is doing what on VFM? yvonne@tenantadvisor.net Tel: 07867 974659

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