VALUE FOR MONEY 2017 / 18
1 . Introduction and context
Throughout the year Accord has continued to demonstrate that its strong commitment to value for money ( VFM ) is embedded in core operations and activities , and that value added services are delivered to customers and communities . VFM remains increasingly important in light of the ongoing rent reductions , a continuing Government appetite for Registered Providers to increase housing supply delivery and also the announcement of the most recent release of the Value for Money Regulatory Standard which has been in effect since 1 April 2018 .
Accord ably demonstrates that all resources are invested efficiently and effectively to maximise the return on investment , and this is supported by a clear understanding of how resources are committed . Accord ’ s Business Plan sets out strategic objectives and the activities and initiatives required to achieve these goals and support Accord ’ s vision . This ensures that resources are applied effectively and that processes are carried out efficiently when work is undertaken .
Accord considers its corporate performance in the context of both ensuring value for money and delivering against business plan objectives by measuring the actions taken to ensure services are not only high-quality , but deliver value for customers , communities and stakeholders . These activities are underpinned and supported by a Board approved VFM strategy which ensures that resources are used effectually .
The concept of value for money to Accord is to ensure the organisation continues to :
2 . Value for Money achievements – 2017 / 18
Value for money is an embedded and well established working practice within Accord , most recently demonstrated by the full simplification of the group structure in 2017 . In the last five years Accord has :
n invested over £ 155m in the delivery of new housing supply n improved social housing lettings operating margin by 8 %, from 29 % to 37 % n reduced social housing lettings total operating costs by 11 %, or £ 429 per unit n invested over £ 74m in maintaining and improving the Association ’ s existing homes . n invested £ 6,390 per home in maintenance and improvement works n invested over £ 272m in the local economy by employing an average of 3,200 colleagues from our communities n delivered around 1,200 new homes to our communities n generated £ 25million from the disposal of existing homes to fund the supply of new homes
Accord ’ s VFM achievements also include a significant number of non-cash examples of social value added . Furthermore , to ensure that VFM remains embedded within everything the Association does a further £ 6m of operating efficiencies have been identified and built into the 2017 / 18 budget – these efficiencies reflect the quantum of the impact of year three of the rent reduction regime . n procure goods and services economically for the right price ; n be effective in delivering the right services ; and n deliver activities efficiently and in the right way .
Accord ’ s Board has approved a revised VFM Strategy which has been updated to both support the delivery of Accord ’ s business plan and also the requirements of the new Regulatory Standard . The new strategy has been developed around four key strategic objectives , being : 1 . Increase operating margins and profitability ; 2 . Maximise efficiency in operating delivery models ; 3 . Increase efficiency in the development of new homes ; and 4 . Clear and transparent reporting of value for money .
10 Accord Housing Association