YORK HOUSING ASSOCIATION LTD
MINUTES of a meeting of the Board of the Association held on
Thursday 19 July 2012
at 2 Alpha Court, Monks Cross Drive, Huntington, York, YO32 9WN at 6.00pm
PRESENT: Board: Ruth Brigham (RB), Rick Elliott (RE), Jolyon Harrison (Chair), Janet Whipps (JW), Christine Burgess, Abdul Rashid, and Mike Leonard (ML).
Staff: Julia Histon (CE), Kate Spencer (OD), Paul Roberts (FD) and John Gilham (D&PD).
Observers: Sue Walters Thompson (SWT) and Will Trevor (WT)
Minute Taker: Sandra Parker (SP)
Action by
1 / TREASURY MANAGEMENT POLICYRichard Williams (RW) from BWNL attended the meeting for this first item only and gave an overview of the new Treasury Management Policy, the Scheme of Delegation of Treasury Authorities and the Treasury Procedure Guides which gives Board assurance that the significant changes in the funding markets, governance legislation (e.g. CIPFA), along with the Associations more structured approach to development are met.
Cash Management was discussed in detail with RW explaining ‘Fitch’ ratings and how the Association should use a financial institution with a Fitch rating of 1 or 2 in these current economic times, so if that financial organisation was to go ‘bust’ the government would support them by meeting their financial commitments. The FD is aware of the need to review selection criteria of banks immediately.
RB asked who would make the decision to exceed the limit of £0.5m deposit in the event of exceptional circumstances, to any one financial institution. (See page 6 paragraph 2.3 of the Treasury Management Policy). RW advised this situation would be unusual and Board would be notified. This section of the policy will be reworded to include the wording “Board to be notified”.
The day to day cash management is the responsibility of the Finance Manager with the Finance Director holding a weekly meeting with the Finance Manager to ‘sign off’ the cash flow forecast looking one year in advance. If any problems arose the FD would immediately inform the Board.
The FD advised that the monitoring of implementation would be made by Audit Committee through the annual treasury report with the annual treasury strategy being taken to Board.
The Board approved the Treasury Management Policy, Scheme of Delegation of Treasury Authorities and the Treasury Procedures Guide.
The Chair thanked RW for coming along to discuss and RW then left the meeting. / FD
FD
2 / APOLOGIES
Pat Walton (PW), Nigel Craddock (NC), Elspeth Harrow (EH) and Jed Din (O) all sent their apologies.
3 / DECLARATION OF CONFLICT
No Declaration of Conflict of interest was brought to the Chair’s attention.
4 / minutes of previous meeting held 17.05.12
The minutes were agreed as a true and accurate record of the meeting.
5 / matters arising
There were no matters arising to report against.
6 / REPORTS FROM COMMITTEES
Performance Committee Minutes 31.05.12
The Chair gave an overview of the minutes noting:
1. The arrears target figure has been reduced from 3% to 2.8% which will be more challenging as in the small HA benchmark average.
2. KS to check the category list against the anti social behaviour performance indicators.
CB asked for further clarification against the overspend on major repairs and the Chair advised this had been discussed in detail at the Performance Committee and the overspend was unsatisfactory.
Audit Committee Minutes 28.06.12
The FD gave an overview of the meeting noting that both the internal and external auditors had been present. The accounts, internal audit reports, treasury management report and risk management strategy had been discussed in detail. / KS
7 / CHIEF EXECUTIVE’S REPORT
The CE asked Board to note the various activities that had taken place since the last Board meeting asking members to note the following in further detail:
YACRO
At the 17.05.12 Board meeting, members asked SMT to carry out a due diligence report against 101 Robinson Court (property managed by YACRO for up to 14 single people which transferred to YHA as part of the Transfer of Engagements from Tuke Housing Association in February 2012).
Business Plan
At the 17.05.12 Board meeting, members asked SMT to add an addendum to the Business Plan to capture areas and circumstances in which management agreements will be pursued. It was agreed that SMT would bring a report to Board each time a proposal is received.
Board approved the addendum to the Business Plan.
There was a discussion about how management agreements come about and how proactive we could be to secure them? The CE explained that they often come as a result of networking, and are often a case of us operating in the right geographic area. However, she also said there are cases where being proactive can help e.g.: the CE advised that she is currently arranging meetings with Family HA and Harrogate Families HA to discuss possible partnerships.
Organisational Development Programme
The CE thanked the Chair and RE for their assistance in recruiting the consultant, Central Consultancy and Training with SMT. A proposed date for a Board workshop would be discussed under AOB.
Appointment of replacement Development & Property Director
Paul Atkins has been appointed to replace John Gilham as D&PD. John retires in November with Paul commencing in October; giving a one month hand over period. The CE thanked all members who participated in the recruitment process.
Fire Risk Assessments
The OD advised that a fire consultant will now carry out all fire risk assessments and the Maintenance Surveyor will ensure recommendations that come out of the assessments are implemented. / CE
8 / development update
Auden House
Meeting held 18.07.12 with commitment given by contractor to deal with the overheating of communal areas and catering kitchen ventilation under ‘defects’.
7th Avenue
Site meeting held today, completion on target even though delays have been caused by the inclement weather.
Arc Light
The Building Surveyor is currently arranging further work with the contractor.
Scarborough Homeless Provision
The OD and D&PD met with Scarborough Borough Council (SBC) re another property which SBC would 50% fund. SMT will review and bring a report to Board.
Shared Housing Report
The D&PD advised of a proposed new approach to emptying the shared properties; whereby once a vacancy arises this is referred immediately to SMT for decision to either re-let or clear the property for conversion/disposal. Alternative accommodation and the entitlement to a ‘Home Loss and Disturbance Payment’ will be discussed with remaining tenants. Void losses would not be accrued as these would be recorded as ‘void but unavailable for letting’.
Board approved this new approach to emptying shared properties. / SMT
9 / 9.1
9.2 / INTERNAL CONTROLS ASSURANCE
Chief Executive’s Annual Report to the Board on Internal Control
Board approved the Chief Executive’s Annual Report on Internal Control which gives assurances that sufficient and suitable systems are in place and reviewed regularly.
Annual Report of the Audit Committee
Board approved the Annual Report of the Audit Committee which gives detail of the activities undertaken by Audit Committee during the year 2011/2012.
10 / impairment review
Board approved the impairment review which did not identify any properties requiring an impairment charge. (Where the balance sheet value of an asset exceeds its realisable value or value in use).
11
12 / APPLICATION OF GOING CONCERN PRINCIPLE
Board approved the application of going concern principle for the accounts 2011/2012.
ACCOUNTS FOR YEAR ENDED 31 MARCH 2012
The FD gave an overview of the accounts which the external auditors have given an unqualified audit report. Audit Committee met with the external auditors on 28.06.12 and reviewed in detail.
The following was noted:
· Shareholders should read 55 not 54.
· How the additional financial strength Tuke HA can be utilised was discussed. SMT are holding discussions with funders in September and will bring a preliminary paper to Board 04.10.12.
· Further to component accounting; the accounts to 31.03.11 have been restated.
· All Recycled Capital Grant will be utilised against 7th Avenue.
Board asked that their acknowledgement of the Finance teams’ hard work be given, following completion of the accounts on time, particularly given the significant accounting issues this year.
Board approved the annual report and financial statements for the year ended 31 March 2012 and authorised their signature by the Chair, Secretary and two other committee members. / SMT
13 / AUDITORS MANAGEMENT LETTER, YHA REPLY, LETTER OF REPRESENTATION
The FD asked members to note the Audit Committee had reviewed in detail at their meeting on 28.06.12.
The FD advised that both points raised by the external auditors had been raised the previous year:
1. Supplier Credit Terms - on occasion it can be difficult to adhere to supplier credit terms although the Association continually endeavours to do so.
2. Development Activity - the development activity is continually monitored to ensure we capitalise as much of the staffs time against schemes as possible.
Board approved the auditors’ management letter, YHAs reply and the letter of representation.
14 / SOCIAL HOUSING PENSION SCHEME (SHPS) REPORT
The FD advised the tri-annual valuation has revealed a deficit on the scheme of approx. £1m. As a result SHPS propose:
1. Imposing a further deficit contribution on employers
2. Increasing future service contributions of employees
3. Introducing a new CARE 120ths scheme.
Changes come into effect from 01.04.13 and the FD asked members to volunteer to join a working party to look at options to make a final recommendation to Board.
Sandra to circulate a request for volunteers. / Board
SP
15 / IMPLICATIONS OF THE WELFARE REFORM ACT
The OD gave an overview of the report informing members how the Association is responding to the challenges the Welfare Reform Act will have on YHA and its tenants. The following immediate changes to the Allocations Policy were noted:
· Ceasing to allocate properties to households who will be classed as under-occupying under the new Act (regardless of their financial circumstances). As the choice based lettings system currently allows under-occupation we would need to communicate this change and make clear our position when advertising vacancies.
· Prioritising households in receipt of welfare benefits for transfers to smaller accommodation if they are classed as under occupying under the new Act.
· Allowing households who are classed as under-occupying under the new Act to transfer to smaller accommodation if they are in rent arrears (this is not currently allowed unless they have made an arrangement to repay and have been sticking to this for a number of weeks)
Board approved the immediate changes to the Allocation Policy.
16 / 16.1
16.2
16.3 / POLICY AND STRATEGY
Equality and Diversity Action Plan
The CE advised that further to the approval of the Equality and Diversity Strategy and Policy Statement at the 29.03.12 Board meeting, staff had met and developed an action plan with key actions.
She went on to give an overview of the action plan with the following being noted:
· Customer Service Excellence Award to be sought.
· The LGBT (Lesbian, Gay, Bisexual and Transgender) Rainbow Tick to be sought.
· Links with the York Racial Equality Network to be re-established.
· Training of new staff and refresher training for existing staff required.
· Contractor training to be arranged.
· EIA’s (Equality Impact Assessment) to be re-introduced.
· Customer profiling data to be utilised.
· CB asked if the Association carries out adaptations which the OD confirmed. She will re-publicise this again in the next tenant newsletter.
Board approved the Equality and Diversity Action Plan.
Risk Management Strategy and Map
The Chair advised Audit Committee had reviewed the strategy at their meeting 28.06.12. Some recommendations were made which were highlighted in red.
· A new risk of SHPS pension costs has been added.
· The map will now be reviewed at each meeting of the Audit Committee, with any changes being reported to the Board in the CE report, in line with internal audit recommendations.
· A major review of the map will also now take place as part of the annual business planning process.
Board approved the Risk Management Strategy and Map.
Sustainability Strategy
The D&PD gave an overview of the strategy, thanking the working group of Chair/ML/RE for assisting. CB apologised for not replying to the meeting request as she did not realise she was an Environmental Champion.
Board noted the draft sustainability strategy and agreed to wait until the new D&PD was in post to develop an action plan for its implementation before it is brought back to Board for approval. / OD
17 / NHF – The Bulletin
Board noted the above report.
18 / ANY OTHER BUSINESS
The CE asked members to consider an evening workshop date of 18 October 5.00pm to meet with the Organisational Development company, Central Consultancy and Training. All members agreed this date.
19 / APPOINTMENT OF NEW BOARD MEMBERS
The Chair advised that Sue Walters-Thompson and Will Trevor had now both attended three meetings.
Board approved them both becoming shareholders of the Association and nominated for full Board membership at the Annual General Meeting.
20 / DATE OF NEXT MEETING
4 October 2012
decisions
1. / The Board approved the Treasury Management Policy, Scheme of Delegation of Treasury Authorities and the Treasury Procedures Guide.
7. / Board approved the addendum to the Business Plan.
8. / Board approved the new approach to emptying shared properties.
9.1 / Board approved the Chief Executive’s Annual Report on Internal Control.
9.2 / Board approved the Annual Report of the Audit Committee.
10. / Board approved the impairment review.
11. / Board approved the application of going concern principle.
12. / Board approved the annual report and financial statements for the year ended 31 March 2012.
13. / Board approved the auditors’ management letter, YHAs reply and the letter of representation.
15. / Board approved the immediate changes to the Allocation Policy.
16.1 / Board approved the Equality and Diversity Action Plan.
16.2 / Board approved the Risk Management Strategy and Map.
19. / Board approved Sue Walters-Thompson and Will Trevor becoming shareholders of the Association and co-opted members of the Board.
Sandra Parker
PA/Committee secretary board member