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

Yvonne DaviesScrutiny & Empowerment Partners

yvonne@tenantadvisor.net07867 974659

Value for money -Resident Engagement

Scrutiny.net 12th February 2014

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

Training tenants in the 3 ‘E’sEconomyPrice 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?EffectivenessThe measure of the impact achievedQualitative or quantitative or both

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

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 resourcesIncrease inputs (resources) for proportionate

increase in results

VFM – links to key HCA messages

Transparency and accountability May 2012 - accounting standards – extra guidanceHonest self assessment Open to challengeBalance of listening to perspectives – your decisionConsultation and submission by 30th Sept each year

(or 6 months after year end) It will be harder for 2014

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 standardSome things are important ingredients:• Procurement and contract management?• Partnerships and shared services?• Business Processes?• Good practice?• Regulatory and legal requirements?

Regulatory activity• April 2012

New 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

Regulator judgements – what is expected

G1 to G2 DowngradeCapacity building• Conversation• ChallengeWhat is needed?• Priorities on spending• Look back and look forwardIn what?• Economic, Environment and Social outcomes

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

Where to find information• There is a mention in the accounting direction http

://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 standard http://www.homesandcommunities.co.uk/sites/default/files/our-work/regfwk-2012.pdf (see p 14).

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?

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 interventionSelf assessment; peer review; internal audit

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?

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?

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

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?

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

What does a statement look like?

Public statement Regulator statement

- Could be differentMight put more or less on the websiteWhat about Newsletter to tenants?

Contents of a statementIntroduction and backgroundGeneral introductionThe need for VFM Objectives of the programmeRegulatory requirements Stakeholders Views

Overall programme approach and deliverablesOverall approach to VFMVFM Service ReviewsUnderstanding our costsPerformance Management and demonstrating VFMThe role of technology Procurement

Programme monitoring, control and communication VFM Steering Group Governance and VFM ResponsibilityVFM Programme Communication

Progress to date, 12 Month Outlook – or longer?Achievements in the last 12 monthsForward outlook at the next 12 months

What else on the statement?Social ReturnSocial Return on InvestmentReinvestment of VFM Gains

Embedding VFMTraining and EducationVFM Cultural Assessments

Critical success factors

Review of VFM Statement – when?

Which parts might residents be interested in?

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

Thank-you – Discussion…so who is doing what on VFM?

yvonne@tenantadvisor.netTel: 07867 974659