3. Performance against 2017 Value for Money targets
Included in Accord’s 2017 Value for Money Self-Assessment Statement were a number of targets and objectives for 2017/18. These
targets were all fully aligned with Business Plan objectives and performance is summarised below. Targets for future value for
money objectives, deliverables and areas for improvement are outlined in section 4.
2017/18 VFM target
Progress against targets
1. Manage the on-going impact of the second year of the
rent reduction regime c£3.5m Achieved The cost pressures associated with year two of the rent
reductions were fully absorbed in the 2017/18 budget
setting process – both budgeted and actual surpluses
were greater than those forecast in the ‘pre-rent
reduction’ business plan.
2. Exceed Board approved 2017/18 budget surplus Achieved In 2017/18 Accord again posted record surpluses of
c£10.7m which outperformed budget surpluses by
almost £1m.
Achieved In July 2017 a new £25m loan facility was secured at
competitive rates which would not have been achieved
with this lender with the pre-simplification structures.
The target efficiencies of £100k are fully embedded in
this facility.
Achieved New leaner and consistent operating delivery structures
have been implemented throughout the organisation
during 2017/18. These structures ensure Accord remains
focussed on excellent customer focussed services.
Efficiencies in operational staffing models, overhead
reductions and streamlined governance arrangements
have already realised efficiencies and savings
substantially in excess of the target of £300k.
Achieved During 2017/18 the repairs service was fully in-sourced
as planned with the team going live in December 2017.
Savings identified in the final four months of the 2017/18
financial year were c£300k. Further savings of £1.4m
have also been incorporated into the 2018/19 budget,
with even greater efficiencies to be delivered in future
periods.
6. Continue to achieve savings of a minimum of 10%
against externally validated budgets for construction
services as part of the delivery of the 2016-21 Shared
Ownership Affordable Homes Programme (SOAHP) Achieved In recently delivered projects led by Accord’s
construction services team a total of £4.8m of
efficiencies have been identified across nine individual
sites. These sites had a total development cost of
£43.7m.
7. As a minimum, deliver against budget but with a
stretch target to exceed budget by 10% for the sale of
new and existing homes Achieved 8. Achieve efficiencies against budget of 7.5% on treasury
debt servicing budgets Achieved
3. Secure new financing with a lower cost of finance
therefore realising the benefits of the group
simplification process, achieving savings of over £100k
4. As part of an ongoing review of operations through
Accord’s Change Programme, a leaner, more efficient
management structure will be implemented without
compromise to service standards and achieving savings
of over £300k
5. Accord will fully in-source its repairs and maintenance
service resulting in annualised savings of up to £2m
9. Year on year improved voids, lettings and arrears
performance in the Communities Directorate Ongoing
10. Procurement savings of £500k Achieved
11. Identify efficiencies of a further £100k through
rationalisation of commercial building portfolio Achieved
12. Year on year improved performance in social housing
cost per unit metrics calculations Achieved
Overall income generated from the sale of new and
existing homes (£5.7m) was 12% greater than budget
(£5.1m).
Through active treasury management substantial
savings against the debt service cost budget were
achieved. The target of 7.5% was surpassed with the year
end position reporting favourable performance against
budget of 10%, being £1.7m.
The desired performance improvements in housing
management KPIs in the Communities directorate have
not yet been fully achieved. A renewed focus has been
adopted to improve these measures.
Through the re-procurement of the HR and Payroll
systems, all corporate insurance services and the
procurement activity associated with the in-sourcing of
Accord’s repairs and maintenance services the target
procurement savings of £500k were achieved.
During the year Accord has divested of commercial
property and other underutilised non-housing
properties. Capital receipts generated have been
reinvested in new homes and have also identified
overhead savings in line with expectations.
As demonstrated throughout section 4 below, year on
year improvements across VFM metrics continue to be
identified.
Financial Statements 2018
11