Financial Statements 2017 Financial Statements 2017 | Page 25

Registered providers shall… How Accord delivers against these requirements “Understand the return on its assets, and have a strategy for optimising the future returns on assets – including rigorous appraisal of all potential options for improving VFM including the potential benefits in alternative delivery models - measured against the organisation’s purpose and objectives.” n In 2016 the Board took a considered decision to simplify the group structure. This process completed on 31 March 2017 and gives Accord the best platform to maximise return on its assets. For example the transfer of all social housing assets into the enlarged Accord HA released c£80m of balance sheet capacity. n As part of the simplification the Board was able to consider an alternative delivery model for governance whereby arrangements were also simplified and further enhanced to bolster the decision-making process. n The Asset Management and Stock Disposal strategy ensures stock disposal decisions are made on an informed and strategic basis as part of active asset management to achieve maximum return on investment. Considerations include high value, high investment, low yield, high tenancy turnover and location. n Accord’s approach to active asset management ensures that major investment into the stock portfolio is delivered in a way that ensures favourable long-term return on assets. n Investment and disposal decisions are informed by intelligence from Accord’s comprehensive Register of Assets and Liabilities. This Register has been externally validated. n Satisfied customers are considered to be a good measure of resources being invested appropriately. Accord undertakes a STAR survey to understand customer satisfaction levels and develop and enhance products and services. Satisfaction levels increased from 75.6% in 2015 to 81% in 2016. n External benchmarking agencies (e.g. HouseMark) and internal bespoke benchmarking exercises are used to assess peer performance. The Board is furnished with performance information including unit cost analysis to agree performance improvement measures. n As part of Accord’s commitment to financially sustainable Care and Support services around 50% of operating costs are invested in people through payroll. The return on this investment is measured through a number of performance indicators including attrition and sickness absence, twice-yearly performance appraisal and colleague engagement. n Accord’s organisation wide review of commercial property has resulted in the overall estate being reduced through a process of office consolidation resulting in delivery of modern working practices and increased customer contact. Two offices have been disposed of and the review is on-going. n Accord’s Board has recently approved a major expansion programme for the existing direct labour organisation (DLO) and post-implementation a largely in-sourced team will deliver the majority of Accord’s repairs and maintenance requirements driving significant cost efficiency, a demonstrable increased return on investment and an expected improvement in customer satisfaction when compared to out-sourced services. Financial Statements 2017 23