-

1. PURPOSE OF REPORT 1.1 The purpose of this report is to inform tenants, leaseholders and staff on the current

financial position of Ascham Homes. It also is to consult on budget decisions being made by the Company.

2. EXECUTIVE SUMMARY 2.1 This report has a budget book attached as Appendix A. This provides a description

of services currently being provided by Ascham Homes and the key performance information. It identifies the funding available for these services in 2005/6 and 2006/7.

2.2 Ascham Homes has a 3 year strategy which helps it to plan how to fund its priorities, develop services and minimise annual cuts which if necessary, will be achieved in a planned and structured over a longer period of time.

2.3 The report also attaches as Appendix C, the budget pressures, savings and growth items identified at the Resource Allocation day. This document will be used for negotiation with the Council and consultation with staff and tenants.

3. RECOMMENDATION 3.1 Tenant Council is asked to:

3.1.1 Note the spending plans of Ascham Homes.

3.1.2 Comment on the budget consultation documents in Appendix C.

Date: 25 January 2006

ASCHAM HOMES

Tenant Council

Agenda item:

5 Status: Public

Ascham Homes’ Finances

Comment & Advice

Author: Mary Nuako, Head of Finance Telephone: 020 8496 4078

-

4. BACKGROUND

4.1 In May 2003, an agreement was made between the Council and Ascham Homes to provide a Housing Management Service.

4.2 A base budget was identified and allocated as a management fee to meet the costs of this agreement. This is the main source of income to Ascham Homes. The base budget was based on services existing at the time of disaggregation and has not been adjusted to include unavoidable costs that would have to be incurred by a new company; additional costs to improve services; and budget pressures arising from higher than expected inflation or changes in legislation.

4.3 The services currently being provided are attached as Appendix A. This provides a

description of services and key performance data. It identifies the funding available for these services in 2005/6 to 2008/9.

4.3 The projections of the management fee are derived from the London Borough of Waltham Forest’s Housing Revenue Account’s(HRA) business plan. The fee reduces annually because of the reduction in stock as a result of Right to Buy, and efficiency savings of 3%. These efficiency savings are a prerequisite of being able to balance the HRA business plan. (This figure was reduced to 1.5% by the Council in the 2005/6 budget).

4.4 The impact of this is an annual reduction of about 4.5% in the management fee.

This reduction is offset slightly by the provision for salaries and pension increases. There is therefore a funding gap each year, which needs to be met.

4.5 However, the company faces a number of spending pressures in line with its

priorities and inflation in a number of areas being higher than expected. 5. MEDIUM TERM FINANCIAL STRATEGY 5.1 At its meeting of 19 December 2005, Ascham Homes’ Board agreed the medium

term financial strategy for 2006/7 – 2008/9. This is a three-year plan, which helps the Company to look to the future and set a realistic strategy for it’s spending in the next 3 years with regard to its income. It allows the company to identify whether its plans are affordable and make decisions with the longer term in mind.

5.2 The way the strategy is managed is every year each service identifies what it needs

to be funded to be able to deliver Ascham Homes’ priorities. The priorities for the Company are the areas for service improvement that have been identified in Service Plans, the Business Plan, the Audit Commission recommendations, the accommodation and risk management strategies.

5.3 The strategic objectives identified in the business plan and are:

• Provide efficient and effective housing services; • Deliver decent homes by 2010; • Enable residents to be involved and influence services received;

-

• Ensure we respond to the diverse needs of all our residents; • Provide a safe and pleasant environment for our residents • Improve and develop our business through innovation and learning.

5.4 To provide efficient and effective housing services, Ascham Homes needs to

maximise resources and ensure the efficiency agenda is well embedded in all activities. The Decent Homes Strategy and the provision of essential repairs will help deliver Decent Homes. The highest risk for the company in 2006/7 is the achievement of a 2 star service. Maximising tenant satisfaction would help mitigate this risk. We have plans to move to Willow House in 2006/7 so we need to make provision for this.

5.5 The strategy requires the Company to address the shortfall by:

• Negotiating for additional funding from the Council • Agreeing efficiency savings - This could include areas where income can be

increased. • Identify areas where it can reduce spend as a result of the reduction in stock. • Identify additional areas of saving which would allow funding in lower priority

areas to be redirected to areas that are considered to be of higher priority.

6. THE CURRENT FINANCIAL POSITION

6.1 Appendix B summarises the current financial position. Based on the October monitoring position it is anticipated that the projected outturn at the end of 2005/6 will be £19m.

6.2 Appendix B also details that we need £18.234m in 2006/7 to maintain spending at

the current budget level after taking 2.5% inflation into account. Unfortunately, the estimated funding available from the Council and interest in 2006/7 is £18.130m, which is a shortfall of £103,900.

6.3 A request for additional resources of a minimum of £507,000 has been

made to the Council to make up the shortfall in the base budget and the under provision for repairs inflation.

6.4 In 2006/7, there are some new costs that will have to be funded. These include

increased day- to-day repairs costs arising from the delay in Decent Homes programme, improved publicity and the additional costs that have to met to ensure that effective systems are in place prior to the inspection in June 2006 such as the project team. These have been identified as budget pressures and growth items.

7. ACTION PLAN 7. 1 On 30 November 2005, Executive Management Team (EMT) had a resource

allocation day. All service areas identified their budget pressures, their savings and growth options.

7.2 The options have been evaluated and have been summarised as a Consultation

document -Appendix C. Appendix 2 of this appendix shows the options considered

-

by EMT to be the options, which have higher spending priority in accordance with the Company’s priorities identified in paragraph 5.4 above. It also shows how these options will be funded. This includes funding from efficiency savings that will arise from improved performance in services. The additional income would accrue to the Council but the benefits should be split 83%/17% in accordance with the management agreement. It is a prudent estimate of the 83% benefit, which has been identified.

7.3 In January, these options will be presented to the Council, staff, tenants and

leaseholders for consultation. 7.4 In February/March 2006, the Council will set the HRA budget; and the Board will set

Ascham Homes budgets on referral from Resources Sub Committee. 8. RESOURCE IMPLICATIONS 8.1 All resource implications are incorporated in this report. 9. CONCLUSION 9.1 This report describes the services provided by Ascham Homes. 9.2 It explains the contents of the Medium Term Financial Strategy for 2006/7 to 2008/9

for Ascham Homes. The Strategy identifies the priorities, risks and options for managing the financial planning process.

9.4 The first stage of the budget process has started and budget pressures, savings and growth options have been identified for consultation.

Appendix A

BUDGET

BOOK

2005/6 - 2006/7

-

Chief Executive’s Office Description of Service: This budget is for the Chief Executive and his personal assistant. The budget in 2005/6 included the costs for the production of the business plan. This budget is currently overspending at £30,000 because there is no provision for having a company solicitor, which is a necessary cost for a company of this size. Previously this included the Project Team, which has now been established as a team in its own right within Internal Services (hence the reduction in Employee Expenses) Financial Information: Original Revised Forward Budget Budget Budget

2005/6 2005/6 2006-07 £ £ £ Employee Expenses 276,912 154,230 153,500 Premises --- --- ---Transport Related Expenses --- --- ---Supplies and Services 21,396 17,400 17,835 Agency and Contracted Services 27,000 27,000 6,675 Customer and Client Receipts --- --- --- 325,308 198,630 178,010 Key Performance Indicators: The current company solicitor is a legacy of the earlier arrangements. The firm is one of the oldest in the country and as such has established cost structures. They provide excellent services. A discussion will take place on capping costs so that the figure is not exceeded. FTE: 2

-

Company Board Description of Service: This budget covers the cost of having a Board of 15 directors. This includes the costs for the Board mentor, and Board expenses including conference attendance. It also includes the costs of Board elections, reports and training for Directors. Financial Information: Original Revised Forward Budget Budget Budget

2005/6 2005/6 2006-07 £ £ £ Employee Expenses 27,996 27,996 28,696 Premises --- --- --- Transport Related Expenses --- --- --- Supplies and Services 32,964 32,964 33,788 Agency and Contracted Services --- --- --- 60,960 60,960 62,484 Key Performance Indicators: N/A FTE: 0

-

Estate Services And Utilities Description of Service: The service covers 6,153 flats, communal areas, playgrounds and garage areas at 571 locations. The Service is delivered by mobile and residential caretakers. It provides:-

• Internal and external cleaning including cleaning communal windows every two months and sweeping internal stairs every three weeks, litter picking and mopping communal lobbies and lifts;

• A grounds maintenance service to 243 locations; • Parking control and vehicle removal to 32 estates; • Programmed and responsive bulk waste removal; • Tenancy enforcement around waste disposal and car-related activity; • Graffiti removal and handy-person repairs; • A specialist intensive cleaning team of two staff; • A concierge service of two staff at Northwood Tower.

Financial Information: Original Revised Forward Budget Budget Budget

2005/6 2005/6 2006-07 ESTATE SERVICES - 5500 £ £ £ Employee Expenses 1,299,432 1,307,906 1,419,471 Premises Related Expenses 676,104 559,912 458,290 Transport Related Expenses 122,316 122,316 125,374 Supplies and Services 207,900 207,408 212,593 Agency and Contracted Services --- --- --- Towing and Clamping Income (135,000) (135,000) (138,375) 2,170,752 2,062,542 2,077,353 Key Performance Indicators: Estate Services have three key performance targets for 2005/6:-

• At least 95% of estate inspections should result in an ‘A’ or ‘B’ score • At least 25% of estate inspections should be joint inspections with estate

champions • At least 95% of estates should be inspected every month. • Visit 90% of new tenants on estates within 6 weeks

FTE: 70

-

Customer Services Description of Service: Customer services act as an efficient and effective initial contact point into the company where customers approach the company for information, advice or services via face-to-face contact, phone or e-mail. They

• Deal with all queries at reception • Provide advice and assistance to any calls • Deliver a responsive repairs service • Ensure support is given to day to day repairs strategic partnership • Support day to day strategic partnership • Conduct company surveys • Administer door entry keys and issue fobs • Take customer services to tenants unable to gain access to the service

e.g. sheltered homes Financial Information: Original Revised Forward Budget Budget Budget

2005/6 2005/6 2006-07 £ £ £ Employee Expenses 588,000 588,000 580,200 Premises Related Expenses --- --- ---Transport Related Expenses --- --- ---Supplies and Services 24,720 20,020 13,346 Agency and Contracted Services --- --- --- Income --- --- --- 612,720 608,020 593,546 Key Performance Indicators: Customer Services key measurable targets for 2005/6:

• Answer 90% of telephone calls politely and helpfully within 5 rings • That callers wait no more than 3 minutes in the queue for Ascham

Direct • Answer 95% of letters within 10 working days, 100% of members

enquiries in 7 days • Answer 100% of complaints in 28 days

FTE: 22

-

Tenancy Enforcement Description of Service: This budget covers the Head of Resident Services and the Tenancy Enforcement Team. The tenancy enforcement team provides a tenancy management services to the 10,700 Council tenanted and 1800 leasehold properties managed by Ascham Homes. Functions include:

• Tackling anti social behaviour including harassment, domestic violence, nuisance and neighbour disputes.

• Processing succession requests. • Carrying out new tenant visits. • Carrying out property audits. • Taking action against squatters and unauthorised occupants. • Taking enforcement action under any breach of the tenancy agreement

including refusal of access for repair works. • Representing Ascham Homes at contract panels • On request attending Tenant and Resident Association meetings. • Representing the Company on various forums including safety net. • Managing the Travellers Site. • Processing changes to tenancy types. • Acting as Professional Witnesses • Maintaining the Company’s aggressive customer lists. • Working with other Registered Social Landlords, police, voluntary and

statutory organisations and the Council on community wide initiatives Financial Information: Original Revised Forward Budget Budget Budget

2005/6 2005/6 2006-07 £ £ £ Employee Expenses 737,544 659,538 666,300 Premises Related Expenses 5,004 5,004 5,000 Transport Related Expenses --- --- --- Supplies and Services 184,476 99,480 76,217 Agency and Contracted Services --- --- --- Income --- --- (15,000) 927,024 764,022 732,517

-

Key Performance Indicators: The Key indicators for the tenancy enforcement team are:

• 25% of Neighbourhood Nuisance cases reported lead to a successful result

• 90% of calls to be answered within 5 rings • Carry out 1150 property audits • Manage unauthorised occupants and squatters effectively, i.e., remove

unauthorised occupants in 98 days or less meeting process targets • Ensure adequate low level support to vulnerable tenants • Ensure 90% of all new tenants in street properties are visited within 6

weeks FTE: 18

-

Community Advice And Information Service Description of Service: The Service leads on resident involvement for the Company. It provides services to the London Borough of Waltham Forest’s 10,700 tenants and 1,800 leaseholders. It operates from the Tenant Resource Centre based at 195 Wood Street, E17 which also operates as a resource for tenants and leaseholders. Functions include:

• Developing new Tenant and Resident Associations and providing advice and assistance to existing Tenant and Resident Associations.

• Representing the company on the Black and Minority Ethnic Housing Forum.

• Workings with voluntary and community groups to encourage take up of services and representation in the companies’ involvement and participation opportunities.

• Providing training and good practice advice to Ascham Homes Managers and staff on improving and developing resident involvement opportunities.

• Working with the Council and other partners to develop resident involvement initiatives and opportunities to improve service delivery and community cohesion.

• Monitoring and evaluating Ascham Homes resident involvement policies and procedures and making recommendation for improvement and change.

Financial Information: Original Revised Forward Budget Budget Budget

2005/6 2005/6 2006-07 £ £ £ Employee Expenses 155,448 197,980 217,000 Premises Related Expenses --- --- 32,630 Transport Related Expenses --- --- --- Supplies and Services 92,976 89,676 91,918 Agency and Contracted Services 17,004 17,004 22,429 Income --- --- (40,000) 265,428 304,660 323,977

-

Key Performance Indicators: • All tenants and leaseholders will be able to access the service and we will

ensure that we are not indirectly discriminating against any sectors of the community.

• All Equality impact assessments due will be produced by March 2007. • To increase the number of tenants and residents associations from 35 to

41 • That 11% of tenant representatives are from Black and Minority Ethnic

communities • Review training provided for Tenant and Resident Associations by January

2007. • Produce 10 Policy Performance and Process Note’s for key aspects of the

services • Hold four surgeries in community group venues by March 2007

FTE: 6.5 + 4 voluntary

-

Tenant Management Organisations (TMOs) Description of Service: This budget covers the management fee paid to Sansom and Acacia TMO and Friday Hill TMO to provide a devolved housing management and maintenance service. Financial Information: Original Revised Forward Budget Budget Budget

2005/6 2005/6 2006-07 £ £ £ Employee Expenses --- --- --- Premises Related Expenses 32,160 32,160 27,322 Transport Related Expenses --- --- --- Supplies and Services 4,404 4,404 4,514 Agency and Contracted Services 871,212 871,212 892,992 Income --- --- --- 907,776 907,776 924,829 Key Performance Indicators: • TMO tenants will receive a high quality housing management and repairs

services • Satisfaction with the housing management service will increase. • Rent collected as a % of rent due – minimum 96% • % of arrears cases over 7 weeks – max 15% • NOSPs served as % of tenants in arrears – max 25.8% • % of tenants evicted for rent arrears – 0.33% FTE: N/A

-

Property And Investment Description of Service: The Property and Investment group deal with all property and contract related matters concerning the maintenance and improvement of the councils stock and associated open spaces .The group is also responsible for carrying out works when a dwelling is vacated to turning properties around with minimum delay. The group delivers the following services to tenants –

• Decent Homes Strategy, Capital Programme, MRA and Energy • Responsive Repairs and Empty Homes • Planned/Programmed Maintenance • Stock Data Management

Financial Information: Original Revised Forward Budget Budget Budget

2005/6 2005/6 2006-07 £ £ £ Employee Expenses 1,680,396 1,680,396 1,672,700 Premises 96 96 98 Transport Related Expenses --- --- --- Supplies and Services 23,076 15,504 15,892 Agency and Contracted Services --- --- --- Income (330,000) (330,000) (338,250) 1,373,568 1,365,996 1,350,440 Key Performance Indicators: To achieve targets within funding available To achieve 650 Decent Homes this year and 100% by 2010 To increase tenant satisfaction with the services we provide To achieve top quartile in our KPIs and BVPIs We will aim for ‘zero defects’ in major works by ensuring that our partnering

and contractual arrangements are equally responsible for quality A Project Initiation Document will be produced to identify responsibilities and

co-ordinate the various actions and procedures from other documents/data. FTE: 44

-

Housing Repairs Description of Service: The budget provides for day to day and planned repairs service to housing properties. These include

• Routine ad hoc repairs, • Servicing empty properties between lettings • External and limited internal redecoration programme. • Gas servicing • Servicing electrical installations and lifts • Asbestos control including removal and disposal as required.

Financial Information: Original Revised Forward Budget Budget Budget

2005/6 2005/6 2006-07 £ £ £ Repairs Day-to-Day Fabric - MTC 1,713,359 1,713,359 1,753,499 Repairs Day-to-Day Specialist 200,000 200,000 205,000 Gas Servicing/repairs 1,450,000 1,450,000 1,486,250 Minor voids (routine) 490,000 490,000 502,250 Minor voids (non routine) 570,000 570,000 584,250 Asbestos 131,000 131,000 134,275 Electrical works and Lifts 440,000 440,000 451,000 Electrical 357,000 357,000 365,925 External Decs 550,000 550,000 563,750 Tenants Decoration Allowances 85,425 85,425 87,561 Assisted Decorations 30,000 30,000 30,750 Special Build 100,000 100,000 102,500 Litigation 105,000 105,000 107,625 Trees 0 103,196 105,776 Other 230,628 230,628 239,088 6,452,412 6,555,608 6,719,498

-

Key Performance Indicators: To make and keep 95% appointments To turn around empty properties in 28 days To complete 98% of jobs on time To complete 88% of jobs right first time To reduce the number of emergency orders to 15% To reduce the time of reporting a routine repair to finish to 10 days To maintain the proportion of planned and programmed expenditure compared to responsive expenditure at 70%/30% To maintain the proportion of expenditure on emergency and urgent repairs compared to non-urgent at 12% To complete 100% of Gas Servicings in the year FTE: N/A

-

Right To Buy(RTB) and Leasehold Services Description of Service: The RTB & Leasehold Services section processes Right to Buy applications from council tenants and also processes applications from tenants of London & Quadrant Housing Trust with the Preserved Right to Buy. The section also calculates and bills service charges for 1,760 leaseholders who have bought council flats and 400 leaseholders transferred to London & Quadrant Housing Association, deals with general leasehold enquiries, account queries & provides all non-estate based leasehold services. The section is split into two teams, the ‘Property’ team and the ‘Accounts’ team. The Property Team process the RTB applications, calculate service charges, resale enquiries and general leasehold enquiries. The Accounts team produce & issue major works service charges, deals with account enquiries and carry out service charge recovery. Financial Information: Original Revised Forward Budget Budget Budget

2005/6 2005/6 2006-07 £ £ £ Employee Expenses 417,349 396,349 394,400 Premises --- --- ---Transport Related Expenses --- --- ---Supplies and Services 45,408 40,908 41,931 Agency and Contracted Services 36 36 37 Income (112,008) (112,008) (114,808) 350,785 325,285 321,559 Key Performance Indicators: To maintain & improve on our current high levels of performance 96% RTB notice service on time, 110% service charge collection To assist the Company in finding and implementing an efficient and effective

integrated computer system To clear the backlog of major works service charges still to be billed To reduce the level of arrears To ensure and support S20 compliance

FTE: 13

-

Rent and Accounting Services Description of Service: This team deals with Rent and Garage rent collection, Current and Former Tenant Arrears, Debt recovery and Litigation. It also deals with Sign up of new tenants and manages account queries. It gives advice including rent payment methods, supporting people and housing benefit and liaises with Council departments for support to tenants. It also administers the Tenant’s Insurance Scheme. The total rental income collected is over £43m from 10,500 tenants and current arrears outstanding of £3.3m. Financial Information: Original Revised Forward Budget Budget Budget

2005/6 2005/6 2006-07 £ £ £ Employee Expenses 783,000 783,000 779,200 Premises --- --- ---Transport Related Expenses --- --- ---Supplies and Services 141,648 140,496 144,008 Agency and Contracted Services --- --- ---Income (17,004) (17,004) (17,429) 907,644 906,492 905,779 Key Performance Indicators:

• Improve BVPI66a performance to top quartile by 2008/9. • Achieve 101% in year collection rate for current tenants. • Reduce the level of current and former tenant arrears. • Improve the escalation policy either through IT or additional staff • Increase rent received from tenants who pay by direct debit and online • Reduce garage arrears, and promote new lettings • Reduce the number of new tenants getting into debt by 25% • Sustain tenancies through pre-court and pre-eviction case work • Ensure adequate low level support to vulnerable tenants and those in debt • Ensure overarching debt strategy with the Council

FTE: 25

-

Budget And Finance Description of Service: This budget covers the Head of Finance, the cost of insurance, external audit and the Budget and Finance team. This team deals with all payments to suppliers including contractors and petty cash. The Section also sets the budget and manages budget monitoring for revenue of £18m and capital of a minimum of £15m. It collects the Management Fee and Capital income from Council. It reconciles the Bank account, deals with Treasury management and is responsible for preparing the statutory financial Accounts and CIS and VAT returns. The team manages Mobile Phones for the Company and provides general financial advice. Financial Information: Original Revised Forward Budget Budget Budget

2005/6 2005/6 2006-07 £ £ £ Employee Expenses 259,428 259,428 258,100 Premises --- 309,996 317,746 Transport Related Expenses --- --- ---Supplies and Services 80,280 80,112 82,115Agency and Contracted Services --- --- ---Income (71,004) --- --- 268,704 649,536 657,961 Key Performance Indicators:

• Financial Accounts completed within statutory timescales • Pay suppliers by BACS wherever possible and within optimum timescales • Monthly budget monitoring reports to budget holders, EMT, the company

board and Council • Maximise use of PS Financials accounting system including commitment

accounting. • Effective monitoring of the efficiency strategy (subject to resources) • Effective monitoring of the capital and revenue repairs budgets (subject to

resources) • Rechargeable repairs system fully implemented

FTE: 6

-

Internal Services Description of Service: This budget covers the costs for the Head of Internal Services and the Business Support Group – the key functions of this group include management of office premises, health and safety and procurement of supplies and services [non repairs]. The premises budget was reduced in 2005/06 because the management of the company’s insurances was transferred to the Budget and Finance team. The budget for 2006/07 reflects a further reduction in this budget. This is because the Council under the terms of the management agreement should cover the costs associated with the move to Willow House. Financial Information: Original Revised Forward Budget Budget Budget

2005/6 2005/6 2006-07 £ £ £ Employee Expenses 192,492 192,492 191,600 Premises 913,464 603,468 318,555 Transport Related Expenses 55,800 55,800 57,195 Supplies and Services 214,380 245,672 333,814 Agency and Contracted Services 20,004 20,004 20,504 Income --- --- --- 1,396,140 1,117,436 921,668 Key Performance Indicators:

• Accidents at work reduced by 5% • Procurement requests responded to within 5 working days

FTE: 5

-

Service Level Agreements Description of Service: This budget is for services purchased from the London Borough of Waltham Forest. The description and standards of service are set out in Service Level Agreements [SLAs]. These services are regularly reviewed and monitored to ensure that best value is being achieved. During 2006/07 it is anticipated that two SLAs will be terminated. Financial Information: Original Revised Forward Budget Budget Budget

2005/6 2005/6 2006-07 £ £ £ Employee Expenses --- --- ---Premises 146,112 146,112 149,765 Transport Related Expenses --- --- ---Supplies and Services --- --- ---Agency and Contracted Services 859,812 859,812 881,307 Income --- --- --- 1,005,924 1,005,924 1,031,072 Key Performance Indicators: [Each SLA has its own set of performance indicators] Services being purchased in 2005/06 include: Portfolio Management Building Cleaning Porters Internal Audit Building Design and Consultancy Legal Translation, transcription and interpreting Out of hours call centre

FTE: N/A

-

Information Technology (IT) Description of Service: This group provides system support for the iWorld housing management system and leads on working with other groups to find IT solutions to support the business. The network and additional support services are provided through a Service Level Agreement [SLA] with the London Borough of Waltham Forest and this is managed through the company’s IT group. The cost of the SLA is included in this budget heading. Financial Information: Original Revised Forward Budget Budget Budget

2005/6 2005/6 2006-07 £ £ £ Employee Expenses 181,632 261,632 260,800 Premises --- --- ---Transport Related Expenses --- --- ---Supplies and Services 680,436 600,028 487,050 Agency and Contracted Services 90,000 111,000 92,250 Income --- --- --- 952,068 972,660 840,100 Key Performance Indicators:

• All Helpdesk calls responded to within 4 working hours • Urgent calls resolved within 8 working hours • Non urgent calls resolved within 16 working hours

FTE: 7

-

Human Resources Description of Service: The key role of this group is to implement the Human Resources strategy where the main focus is on both recruitment and retention and learning and development. The group supports managers within the company, enabling them to meet their performance objectives. This support includes working with them to reduce sickness levels, giving advice and guidance on staffing issues and helping them to develop their teams. Financial Information: Original Revised Forward Budget Budget Budget

2005/6 2005/6 2006-07 £ £ £ Employee Expenses 389,460 389,460 389,439 Premises --- --- ---Transport Related Expenses --- --- ---Supplies and Services 3,012 3,012 3,087 Agency and Contracted Services --- --- ---Income --- --- --- 392,472 392,472 392,526 Key Performance Indicators:

• Reduce number of agency staff by 10% per year • Average number of days lost due to sickness reduced to 8 days • Turnaround times for recruitment – 12 weeks from advert placement to

start date FTE: 6

-

Complaints and Service Improvements Description of Service: This group logs and monitors all stage one complaints, compliments, Local Councillor and Member of Parliament enquiries. It leads on learning from complaints through service improvements. Stage two complaints and Local Government Ombudsman enquiries are dealt with by the London Borough of Waltham Forest. The Complaints Team also co-ordinates all Freedom of Information and data protection requests. It also audits the quality of correspondence for the company. The team are involved in complaints and customer care training, ensuring that good practice is cascaded around the company. Financial Information: Original Revised Forward Budget Budget Budget

2005/6 2005/6 2006-07 £ £ £ Employee Expenses 104,676 104,676 104,200 Premises --- --- ---Transport Related Expenses --- --- ---Supplies and Services 13,992 13,992 14,342 Agency and Contracted Services --- --- ---Income --- --- --- 118,668 118,668 118,542 Key Performance Indicators: • 100% of stage one complaints acknowledged within 5 days • 90% of stage one complaints responded to within 28 days • 95% of councillor and MP enquiries responded to within 7 days • 100% of correspondence from the public requiring a response answered

within 7 days • Freedom of Information requests acknowledged within 5 days • Freedom of Informatin requests completed within 20 days FTE: 3

-

Project Team Description of Service: The Project Team budget includes only the employee costs and a budget for a specific project, the Resident Information Pack. The employee costs cover the Performance and Innovation Officer, the Communication and Information Co-ordinator and funding for project officers who are working on specific tasks. The work includes the monitoring of the overall performance of the company, producing performance reports for various groups including the Board, Executive Management Team and Contract Panels. The communication function includes the production of various documents including the Ahead newsletter. Costs other than employee costs are charged to the relevant cost centre within the company. Financial Information: Original Revised Forward Budget Budget Budget

2005/6 2005/6 2006-07 £ £ £ Employee Expenses --- 162,678 122,100 Premises --- --- ---Transport Related Expenses --- --- ---Supplies and Services --- 79,992 ---Agency and Contracted Services --- --- ---Income --- --- --- --- 242,670 122,100 FTE: 2

-

APPENDIX B

Projected revenue position ASCHAM HOMES LIMITED Summary Income and Expenditure Account - ANALYSIS BY DEPARTMENT Original Revised Projected Forward Forward Forward Budget Budget Outturn Budget Budget Budget

2005/6 2005/6 2005/6 2006-07 2007-08 2008-09 £ £ £ £ £ £

INCOME INCOME 18,540,048 18,540,048 18,590,048 18,057,300 18,057,300 18,057,300 INTEREST 0 71,004 100,004 72,779 72,779 72,779 TOTAL INCOME 18,540,048 18,611,052 18,690,052 18,130,079 18,130,079 18,130,079 EXPENDITURE CHIEF EXECUTIVE 386,268 259,590 282,484 240,494 240,494 240,494 RESIDENT SERVICES 3,975,924 3,739,244 4,070,786 3,727,392 3,727,392 3,727,392 PROPERTY SERVICES 8,733,756 8,829,380 9,386,166 8,994,767 8,994,767 8,994,767 FINANCE SERVICES 1,527,133 1,881,313 1,869,481 1,885,299 1,885,299 1,885,299 INTERNAL SERVICES 3,865,272 3,849,830 3,491,781 3,386,007 3,286,007 3,286,007 TOTAL EXPENDITURE 18,488,353 18,559,357 19,100,698 18,233,960 18,133,960 18,133,960 (SURPLUS)/DEFICIT BEFORE TAX (51,695) (51,695) (410,646) 103,881 3,881 3,881 Projected outturn based on October budget monitoring statement Main reasons for variance in 2006/7 from projected position last year: Additional funding required for repairs service net £104,000

-

APPENDIX C

BUDGET CONSULTATION DOCUMENTS

Contents App Title 1 Summary – current financial position 2 Options which have higher spending priority in line with

the Company’s priorities 3 Full summary of options including those which have been

given a lower priority which the Council may consider making funding available for.

4 Budget Pressures 5 Savings 6 Growth