Value For Money Statement 2016 VFM Statement 2017 | Page 23

2013 2012
29% 26%
£3,416 £3,408
£106 £77
Direction
of travel:
Year on year
Direction
of travel:
Over trend
period
2017 observations and commentary
Social housing operating margin is consistent with 2016 data with performance over the
benchmarking period showing a significant improvement as the focus on VFM has become further
embedded in core operations
This metric performance has deteriorated slightly in 2017 following a sustained period of
improved performance over the trend period. The 2017 increase is reflective of real inflationary
cost pressures. The Board remains sighted on this key metric and management remains
committed to reducing the overall cost base through a number of efficiency measures.
Performance on voids and bad debts both show improvement on 2016 data as continued focus on
these key indicators of operating effectiveness continue to be a priority for Accord.
£58 -£1 £1,172 £1,295 21% 16% Overall this metric has decreased by a small margin which reflects the overall decrease in
turnover identified in the 2016/17 financial statements
3.6% 3.2% Despite turnover decreasing, improved operating surpluses are consistent with 2016 as
Accord demonstrates tangible VFM through increased cost management. This has resulted
in no deterioration in this indicator since 2016, but continued improvement over the
benchamarking period
£10.1m £5.8m Accord continues to see a year-on-year improvement in this indicator.
2.5% 4.0% The percentage of the pay bill committed to the Executive remains very low and performance is
consistent with prior periods, with an overall improvement over the benchmarking period.
4.2% 4.0% The average interest rate indicator has performed consistently well again with 2017 results being
comparable to 2016
Further improvement of this indicator has been identified as Accord’s Asset Management function
continues to bear down on costs while maintaining excellent service standards as evidenced by
the high service satisfaction rates.
Accord’s Board continues to be sighted on benchmarking and performance improvement information. The Board uses this
information, along with other financial and operational KPIs, to understand Accord’s cost base comparative to the wider
marketplace and to challenge officers on matters of performance. This information is also used in the business planning sessions
where members will challenge the Executive over targeted areas of performance such as increased efficiency on key unit metrics.
Value For Money Statement 2017
21