Delivering our objectives efficiently
Value for money self assessment 2012/13
What is Value for Money?
Value for Money (VFM) is defined at Rooftop simply as business effectiveness or delivering the Group’s objectives as efficiently as possible. The approach is to promote and embed VFM into all working practices across the Group.
The VFM goal
The Group has achieved the VFM goal in 2012/13 two years ahead of schedule. This was reported to Board in March 2013, along with the updated VFM strategy. A new VFM goal will be developed in early 2013/14. The VFM goal was, by March 2015, to deliver cashable efficiency gains valued at £3 million. The savings reported to Board in March 2013 amounted to £3.9 million.
Rooftop’s arrangements to ensure delivery of VFM
In order to ensure delivery of VFM, Rooftop is continuously measuring, evaluating, learning and reporting on the current embedded practices (or new opportunities) and then making decisions to best use resources to deliver the Group’s objectives. Particular processes of note for 2012/13 are:
- Setting up the Resident Excellence Panel (REP).
- Development of a social impact assessment model for improved decision making.
- Detailed benchmarking of back office and overhead costs presented to Board in September 2012.
- Detailed benchmarking of front line services presented to Board in November 2012.
- Developed a VFM toolkit as part of the VFM strategy including a social return on investment.
- Carried out a full asset management service review.
Progress on goals and objectives
We commenced the 2012/13 business year with 13 goals. At year end, all of the 13 goals were in green status (on track). Of the 29 projects due for completion in 2012/13, 24 were completed and five were extended into 2013/14 following a change of scope caused by external changes to our environment.
Some key achievements specific to our objectives include:
- The introduction of the new Rooftop website significantly enhanced our ability to provide online services. Web traffic is up 40% and over 1,700 users (predominately residents) have signed up to fully access services online. The website is smartphone friendly and now 15% of traffic is from such devices (up from 1% in one year).
- Improved complaints process with more resident involvement.
- Stock investment and asset management service review leading to significant service improvement.
- The target to achieve 35 hours a week of volunteer activity has been achieved, at a labour saving of £19,000 per annum.
- The progress towards digital inclusion has moved on well, with new Wi-Fi access for residents being piloted at The Court, Broadway, and other initiatives with Worcestershire CC (National Broadband Programme) and Procurement For Housing (National Social Tenant Tariff).
- HCA development programme progressing well and on target with several locations starting on site, including Blakes Hill, North Littleton, a Sustainable Homes Code 6 scheme.
- The goal of providing two positive activities for young people has been exceeded in delivering three Olympic school events, two Party in the Park events and opening events at new development schemes and a pocket park. It is estimated that over 1,500 young people benefited from the activities offered.
- The Employability project had a successful first year with 47 residents receiving employment support during 2012/13 of which 10 (21%) are now in employment.
- As a result of strategic partnerships with contractors and The ExtraCare Charitable Trust, 39 jobs have been created in 2012/13 of which 16 are apprenticeships.
- A SAP energy rating improvement across our stock of 0.8 points (from 66.97 to 67.79). Goal to achieve SAP rating of 70 by March 2015.
- Photovoltaic (PV) panels have been fitted to 56 properties which has increased the SAP rating by 7 points per property. Air heat source units have been fitted to 13 properties increasing the SAP rating by 10 points per property.
- We have created 48 additional parking spaces including 23 individual off-road spaces in a very narrow street at Railground, Pershore.
Best use of resources
- VFM goal achieved two years early with £3.9 million of cashable efficiency gains.
- Net capital receipts reach £3.2 million (£2.1 million in 2012/13).
- Remodelling of office premises in Gloucester and bringing the ICT disaster recovery solution in house will achieve overhead savings of £22,000 per year.
Rooftop’s plans for 2013/14
Agreed actions from the VFM strategy
- ICT service review.
- Implement the new scrutiny plan for the Resident Excellence Panel.
- Implement a cost sharing vehicle for delivery of maintenance.
- Compare the relative return (including social return) of an ExtraCare Village and a general needs development.
- Consider stock rationalisation by comparing the NPV or return on assets and opportunity costs involved in managing some stock that is not in our core geographic area.
What Rooftop has achieved:
The overall trend for the Group, as reported to Board throughout the year, in benchmarking and efficiency reports is sector leading with improving resident satisfaction and increasing operating margin.
The difference between the 2011/12 sector median performance of 26.4% and the Rooftop 2011/12 operating margin of 38.2% is £3.3 million in cash terms. The equivalent difference for upper quartile is £2.4 million.
The Group has completed some significant developments in 2012/13. Some specific achievements are commented on below.
Hampton regeneration scheme
This regeneration project has seen the demolition of 49 existing defective precast reinforced concrete homes.
Working in partnership with Bellway Homes the area has been transformed and now provides 150 new homes for rent, shared ownership, new build homebuy and outright sale.
In total, Rooftop delivered 101 homes within this project, all achieving Sustainable Homes Code level 3 with some achieving Code level 4. With all homes having the benefit of Solar Thermal/Photovoltaic panels generating up to 2kw per hour this Solar village means that 1,500 kilowatt hours in free electricity is produced each year. Across all homes this will be 151,500 Kilo watt hours per year a saving in fuel costs to this community of £21,000 per annum (based on a cost of 14p per kwh) and saving 77 tons of CO2 to protect the environment.
Mill Lane garage site redevelopment
In March 2012, work started on the redevelopment of the former garage court in Mill Lane Close, Pershore. This development completed in March 2013. The garages had not been in use for some time and had become prone to vandalism and antisocial behaviour. The works included demolishing over 50 redundant and vandalised garages and building in their place seven new affordable homes for local families. There are five two-bedroom houses and two three-bedroom houses. Some of these properties were available for shared ownership.