Martlet Homes Limited - Hyde Housing Association

MARTLET HOMES LIMITED
REPORT OF THE BOARD AND OPERATING AND FINANCIAL REVIEW (CONTINUED)
Dynamics of the Social Landlord: External factors and risks
The main risks faced by the Association are reviewed on an ongoing basis by SMT, and reported to Board
on a quarterly basis. The definition of risk for this purpose is an event that could prevent the business plan
from being achieved if it were to crystallise. Risks are recorded in a risk register which also records key
controls to manage each risk, who is responsible for the control and how the control effectiveness is
monitored. Risks are analysed according to their impact and probability (i.e. high, medium and low) given
the current environment within which the Association operates. Martlet Homes Limited has identified the
key risks within its own area of operation and the table below identifies the key risks (as at the 31 March
2010) that could have an impact on future performance. The Hyde Group risk strategy requires regular
review of key risks by the Group Board and the Board of Martlet Homes Limited.
RISK CONSEQUENCES EXISTING CONTROLS/ACTIONS
Failure to achieve the
Short Notice Inspection
action plan.
Non-integration of
HydeMartlet staff into
effective operating
business units.
Failure to provide
effective customer
service centre resulting
in poor customer
experience.
Failure to comply with
legal & regulatory
requirements in respect
of health and safety of
residents, including gas
safety.
Failure to meet loan
covenants.
Cost of future pension
contributions for the
West Sussex pension
scheme greater than
planned.
Failure to meet
identified procurement
savings.
Prospects for improvement rating by
the Audit Commission will be judged
on the performance against the
action plan. A bad result could
impact future business plans.
Inconsistent service across the OBU;
local and Group policies not always
aligned; increase in silo working, all
of which can have an effect on
staff morale and customer service.
High level of abandoned calls and
increased waiting time for
customers. High level of customer
dissatisfaction with the service.
Damage to HydeMartlet’s
reputation, effecting future business
plans.
Failure to maintain 100%
compliance on gas safety checks;
putting residents at risk.
Potential re-negotiation and
reduction of current facility at less
favourable rates.
Higher employer contributions
following tri-annual review by
actuary.
If savings not made then will need
to reduce other costs to meet
overall budget surplus target.
• Each area of the plan has a SMT
sponsor and the extended team
includes colleagues from the Group.
• Plan agreed and submitted to TSA.
• HydeMartlet Staff Conference
• Review of governance
arrangements to bring into line with
Group.
• Implementation of client/contractor
split of Martlet Build.
• HydeMartlet values and
expectations act as a team target
across the three offices.
• Flexible staff arrangements in place
to manage peak periods.
• Manager post has been split
between customer service and
lettings to enable greater focus.
• Project team set up to manage
programme, additional resources
used to gain access to properties
and monitor dates.
• Moved to Hyde Group policy on gas
safety inspections.
• Quarterly returns provided to funders
• Regular contact and annual
meetings with funders.
• Financial covenants reported to the
Board in the Financial Performance
report.
• Defined benefits scheme has been
closed so number of employees
gradually declining.
• Defined contribution scheme for new
employees.
• Monthly budget meetings and
information provided to managers.
• Increase awareness of Value for
Money and efficiency amongst all
staff.
• Ensure that appropriate controls on
spending are being followed.
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