Value For Money Statement 2016 VFM Statement 2017 | Page 27

Commentary
The effects of the rent reduction were incorporated in the budget 2016/17. The 2017 saw financial results which exceeded budget
expectations and produced a record surplus for Accord.
Whilst the unit target was not achieved, the budget for sales income and surpluses from the sale of existing homes was broadly
in line with expectations demonstrating that whilst fewer units than anticipated were disposed those sold achieved a greater sale
price per unit.
For 2017, Accord significantly over-achieved budget surpluses
Through a programme of targeted efficiency and rationalisation the efficiency target of £250k was significantly exceeded without
compromise to the quality of service to front-line operations. Efficiency programmes remain under constant review.
Through an ongoing programme of office/commercial property rationalisation 2016/17 saw commercial locations consolidated thereby
substantially reducing Accord’s back office overhead and delivering against the agreed target.
Throughout 2017 further incremental growth has been seen in the in-house services through further in-sourcing of voids and routine
repair works. 2017/18 will see this activity significantly increase as we seek to maximise efficiencies.
The group structure was successfully simplified by March 31 2017 meeting the objectives set by the Board to deliver an enlarged Accord
with a leaner governance structure with a clearer line of sight in decision-making and to enable delivery of excellence in governance.
Under the direction of the Board, senior management completed a review of non-core services including an assessment of financial
performance, social value added and whether they complement core service. The results of this review have been used to inform
direction including the objectives for the 2017 Business Plan.
During 2016/17 substantial procurement efficiencies have been achieved through the ongoing in sourcing of development and
construction services which continue to drive VFM in the delivery of new homes. This was complemented by efficient procurement
practices in both the Asset Management function and IT department leading to the overall target being achieved.
During the year Accord has continued to attract external funding to support service development and delivery however the target of
£1m was not achieved, as a result of post-Brexit uncertainty in the grant funding marketplace and ongoing market pressures. Despite
this, Accord continues to seek out appropriate sources of grant.
Value For Money Statement 2017
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