board wolverhampton homes · agenda page 2 of 2 agenda item no. title 1 apologies 2 declarations of...

Agenda of 2

Wolverhampton Homes Board 7 April 2017

Time 9.30 am Public Meeting? YES Type of meeting Wolverhampton Homes

Venue Board Room, Hickman Avenue, Wolverhampton, WV1 2BY

Membership

Ann BennettAngela DaviesKevin FearonMary GriffithsPeter KnightJoy McLarenLinda MiddletonCouncillor Anwen MustonCouncillor Rita PotterLesley RobertsCouncillor Paul SinghCouncillor Tersaim SinghSue RobertsMark WardCouncillor Daniel Richard Warren

Information

If you have any queries about this meeting, please contact Sunita Bhandari.

Contact Sunita BhandariTel/Email 01902 554902 [email protected] Wolverhampton Homes, Hickman Avenue,

Wolverhampton WV1 2BY

Copies of other agendas and reports are available from:

Website https://wolverhamptonintranet.moderngov.co.uk Email [email protected] Tel 01902 554902

https://wolverhamptonintranet.moderngov.co.uk/

Agenda of 2

Agenda

Item No. Title

1 Apologies

2 Declarations of interest

3 Minutes of previous meeting - 10 February 2017 (Pages 3 - 10)

4 Matters arising

5 Outstanding Recommendations Tracking Report (Pages 11 - 12)

6a Presentation from the Way on progress

6b Wolverhampton Homes/The Way Youth Zone - progress report (Pages 13 - 18)

7a Audit Plan 2017 (financial statements) (Pages 19 - 44)

8a Supporting People in Need - progress report (Pages 45 - 54)

8b Click Start programme - verbal update from the Chair

8c Chief Executive's report (Pages 55 - 56)

Agenda Item 3

MINUTES

Meeting: WOLVERHAMPTON HOMES’ BOARD MEETING

Date: FRIDAY 10 FEBRUARY 2017

BOARD MEMBERS PRESENT:-

Sue Roberts MBEAnn BennettAngela DaviesKevin FearonJoy McLarenLinda MiddletonAnwen MustonMark WardDaniel WarrenPaul SinghRita PotterPeter KnightMary GriffithsTersaim Singh

STAFF IN ATTENDANCE: -

Lesley Roberts - Chief ExecutiveShaun Aldis - Director of OperationsSue Kunynec - Director of PeopleDarren Baggs - Assistant Director of HousingKevin Manning - Assistant Director of PropertyRuth Fletcher - Governance ManagerSunita Bhandari - Executive Assistant

Action 1541 Apologies

There were no apologies given at the meeting.

1542 Declaration of interest

Agenda Item 3

Any tenant related issues – Angela Davies, Joy McLaren, Linda Middleton, Sue Roberts, and Mark Ward.

Noted with interest, allowed to remain and join in the debate.

1543 Minutes of the previous meeting – 9 December 2016

Agreed as a true record.

1544 Matters Arising

There were no matters arising.

1545 Outstanding Recommendations Tracking Report

Ruth Fletcher presented this item.

Resolved:Board members noted the information within the outstanding recommendations tracking report.

1546 Procurement service update and medium term plan

Shaun Aldis presented this item. He stated that the briefing note provided a summary of the contracts that have been awarded by the City of Wolverhampton Council from January 2016 to December 2016. The contracts are either contracts for the joint or sole use of Wolverhampton Homes. The contracts that are planned to be procured before the end of the financial year (March 2017) were also listed.

In addition, the paper also provided a forecast of the potential procurement requirements for the medium term and the next 2-year period 2017/18 and 2018/19. Noted that this was extra information requested by the Board following the presentation of the Procurement Strategy to the Board at the meeting on 16 September 2016.

Sue Roberts queried whether WH will still have the same input in procurement issues since this became a shared service with the Council. Kevin Manning replied that there are specific references to

Agenda Item 3

social housing in the procurement strategy. The 3 members of WH staff who transferred to the Council’s Procurement department have since left but WH have a good working relationship with their account manager. Lesley Roberts advised that the Board are responsible for setting the procurement strategy, the Council provide advice on legal and procedural matters and decisions are made by WH.

Resolved:Board members noted the contents of the report.

1547 2017/18 Capital Programme

Shaun Aldis presented this item. He explained that the Capital Programme had been prepared following consultation with stakeholders. The programme details the scheme of work to be carried out to the social housing stock and it balances the investment needed to maintain/improve the stock against affordability, sustainability and tenant’s aspirations, in order to obtain the appropriate investment programme. Noted that the total cost of the programme is over £30M.


1548 Revenue budget 2017/18

Lesley Roberts presented this item. She explained that the total budget for WH for 2017/18 will be £47.3M. The budget will need to take account of an 1% pay award for employees and an additional pension contribution for employees from 1 April 2017. The pension contribution will increase from 13.5% of the salary to 19.2% of the salary. This will result in an increased cost of £890,000 to the budget. It was also noted that the past service lump sum contribution will also increase by an additional £105,000 to £339,100. Therefore, in total that is over an extra £1M in pension costs.

Noted that the report identifies that significant and increasing year on year savings are required over the next 10 years to balance the budget in the medium term. It is recommended that management identify a further £200,000 in savings during 2017/18 to reduce the

Agenda Item 3

pressure in later years.

The report also sets out a budget for 2017/18 which is based on maintaining current levels of expenditure. The expenditure forecast for 2017/18 is £747,000 higher than forecast income which means that £747,000 from reserves will be required to balance the budget.

Board members discussed the planned reduction of posts within the anti-social behaviour unit and the impact this could have on service delivery. It was suggested that a review should be undertaken to assess bureaucracy, workload and trends.

Resolved:Board members approved the revenue budget 2017/18.

1549 Wolverhampton Homes new brand

Shaun Aldis presented this item. He explained that Board members are being asked to comment on the proposals for a new and more modern brand/logo for WH and to select the most appropriate one from the 11 samples available. It is not intended to relaunch the brand and it will be replaced gradually as stationery runs out and fleet is upgraded etc. The new brand will also be more in line with the digital agenda.

A discussion was held by the Board on the most suitable logo and a consensus for number 7 was agreed subject to the middle being changed from yellow to white.

Resolved: Board members agreed to change the brand.

1550 Performance of Citywide gas servicing programme for 2016

Shaun Aldis presented this item. Shaun Aldis explained that failure to carry out annual servicing of gas appliances in tenant’s homes would represent serious threat to the organisation in terms of Health and Safety. Shaun stated that in 2005 the first WH report on gas safety identified that only 95% of properties had a valid gas certificate. Over, the last 6 years that figure has never dropped below 99.9%.

Agenda Item 3

Shaun Aldis reported that 200 WH tenants have disconnected their gas supply, all the tenants have been visited and 42 tenants have now been re-connected to the gas supply. The remaining tenants are still being visited with the intention of getting them re-connected.

Board members expressed concern regarding the tenants who do not have access to a gas supply. It was suggested that this could because of the high cost of gas and fuel poverty. It was noted that the WH energy team are helping tenants with information about cheaper gas suppliers and fuel poverty schemes.

Resolved: Board members agreed that the report would go the Audit and Service Delivery Committee.

1551 Performance of electrical testing and inspection programme

Shaun Aldis presented this item. Shaun Aldis explained that failure to ensure that electrical installations are safe and tested within regulations in tenant’s homes could pose a risk to the organisation in terms of Health and Safety. Additionally, inability to provide up-to-date electrical certificates in homes in the event of injury or fire could possibly leave the organisation open to prosecution.

The report provides an update on the delivery and performance of the city wide electrical testing and inspection programme that commenced in July 2015. Noted that 96.55% of the properties programmed have been completed with the remaining 3.45% of properties being progressed through the ‘no access’ procedure.

Shaun Aldis explained that category one repairs which are deemed to be considered as immediately dangerous and cannot be left by the visiting engineer have reduced significantly.


1552 End of year update from Board Champions

Angela Davies the Equality Champion reported that she had:-

Agenda Item 3

Contributed to and attended an event celebrating Migrant & refugee Week (June 2016) – representing Wolverhampton Homes.

Provided visible/ corporate leadership on World Mental Health Day- Oct 2016 (speaking out on Twitter/Facebook and featured on posters here at Wolverhampton Homes – saying that it matters and we have a responsibility to act and provide support to staff).

Attended two events towards the end of last year, celebrating Older Persons Day in October and celebrating Disabled Persons Day in December.

Regularly attends the Equality Circle Forum – and am an active member of the group- making sure that all Equality Impact Assessments are approved are scrutinised effectively.

As Chair of Equality and Diversity Steering Group have made strong links and relationships with many key organisations on behalf of Wolverhampton Homes.

Provide support and leadership at all staff network groups – both Proud to Be Me and Equality Champions. Supported a wide range of projects currently being delivered:- older persons telephone befriending service- get active service for disabled tenants- counselling service for tenants suffering poor mental health, - supporting dementia ward at new cross hospital)

Attended the launch of black history month (Oct/Nov) along with Shabir – on behalf of Wolverhampton Homes.

. Attended the Holocaust memorial service on behalf of

Wolverhampton Homes in January 2017.

In Bob Smith’s absence, the following activities carried out by the Corporate Social Responsibility Champion were reported:-

Ongoing project for 2017 – Staff volunteering – Johnson Place (to be completed by June 2017).

Agenda Item 3

Ongoing project – Telephone befriending service for older and disabled tenants – very successful, spin officers are making regular referrals.

Other Projects successfully completed to date include: Poets Corner, Swan more Close and Princess Anne Road Community Gardens. Sites have been recently visited and are being used by families and their children.

Staff volunteering – staff are supporting the Dementia Ward at New Cross Hospital. (after 4 pm – on a fortnightly basis).

Launched a 12 months counselling service for tenants suffering poor mental health – funded by big lottery grant (we have started to refer to the service).

New project being worked on by the equality champions is – how we can better support young girls/ women - WH tenants who are on the fringes of guns and gang culture- in partnership with an organisation called square pegs- round holes (led by Simeone Green).

New project for 2017 – is to support Kingswood Trust – educational/ residential centre for young children.

Sue Roberts said that in her role as IT Champion she was working with Adam Dewitt-Bukater on the Click Start programme. The programme has been set up to help tenants and their families obtain the skills to use the internet, apply for benefits and apply for jobs on a one-to-one basis. A tutor has been appointed and another will be appointed shortly.

Sue Roberts stated that she would bring further details of the project to the next Board meeting.

Resolved:Board members noted the information. Sue Roberts to bring information on the Click Start programme to the next Board meeting.

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Agenda item 5

Outstanding RecommendationsApril 2017

Date AgendaNo.

Title of Report Recommendations Actions

15.04.16 5 Wolverhampton Homes/Citizens Advice Bureau Protocol

Board members requested a report in 12 months’ time which provided details of outcomes provided by the CAB.

Report to be presented to the June 2017 Board. (deferred from April Board meeting).

10.02.17 7B Click Start Programme

Sue Roberts to bring information on the Click Start programme to the next Board meeting.

Verbal update to be provided to the April Board meeting.

Agenda Item 6B

Wolverhampton Homes Board7th April 2017

Open report

Report title: Wolverhampton Homes/The Way Youth Zone – progress report

Status: For information

Author: Angela Barnes

Contact No: (01902) 552576

Recommendations: Note the progress made to date in relation to the relationship between Wolverhampton Homes and The Way

Approve the funding of further initiatives which seek to encourage attendance at The Way

Receive a further report to outline the progress made considering the new initiatives being developed by The Way

Key risks and contentious issues:

The cost to Wolverhampton Homes of being a Founder Patron is significant and therefore every effort must be made to promote and encourage take-up among children and young people living in Wolverhampton Homes-managed property

Management Summary

1.0 Purpose

1.1 The Way Youth Zone has been open since January 2016 and with Wolverhampton Homes (WH) being one of its Founder Patrons, Board is asked to note the work that has been done to build a working relationship with the youth zone with the aim of encouraging attendance by children and young people living in WH-managed homes, therefore ensuring they have the best possible chance of benefitting from the facilities on offer.

2.0 Background

2.1 On 18th September 2015, Board received a report which proposed that WH become a Founder Patron of The Way Youth Zone, uniting with other companies in the city to ‘help Wolverhampton’s young people lead healthier, happier and more aspirational lives by giving them somewhere to go, something to do and someone to talk to’.

2.2 The Way provides a range of facilities for children and young people:

Open 52 days a year, 7 days a week, every evening and weekend plus daytime during the school holidays;

Open to young people between the ages of 8 – 19 (up to 25 for those with disabilities);

Over 20 activities on offer from sport, fitness, dance, the arts, music and media as well as well-being and self-improvement;

Membership is £5.00 and admission is 50p

2.3 Board approved the proposal for WH to become a Founder Patron, agreeing the payment of £25,000 per year for three years. The first payment was made on 15th January 2016 and the second on 9th February 2017.

3.0 Working with The Way

3.1 Following approval of being a Founder Patron, contact was made with the then Chief Executive of The Way and its Development Manager with regular monitoring meetings being scheduled to chart progress in terms of developing a relationship.

3.2 Wolverhampton Homes is represented on The Way Board, with Kevin Manning, Assistant Director within the Operations Directorate sitting on the Board, strengthening the relationship further.

3.3 In the period following the opening of The Way, work was done by WH in relation to encouraging attendance:

WH Communications Team promoted the facility on the intra/internet; WH Tenant Engagement Team contacted tenants in a variety of ways (esendex,

email, by phone, in person and via social media) to promote The Way; Attendance of young people from Talent Match, Heath Town Football Team and other

local sports group was arranged by the Skills & Enterprise Manager; WH paid for the membership of 65 young people who attended during the first few

weeks of it being open

3.4 An information sharing protocol has been established to allow the sharing of data in relation to membership. In the initial stages, the ability to identify children from WH-managed homes was limited. This issue is now being addressed and more detailed information is available.

3.5 As of February 2017, 647 young people living in WH-managed homes were members of The Way, equating to 16% of all members. This means that 14.58% of all households with children/young people living in them (4437) are members of The Way.

3.6 Table 1 – number of children from each postcode area and number of properties managed by WH in each postcode area:

Postcode No. WH - managed property in postcode

No. young people who are members of The Way in postcode

WV1 – City centre, Horsley Fields, East Park

2006 79

WV2 – All Saints, Blakenhall, Parkfields 1430 108WV3 – Finchfield, Compton, Castlecroft 1076 46WV4 – Penn, Warstones, Merry Hill, Parkfields

1651 86

WV6 – Whitmore Reans, Perton, Pattingham, Tettenhall

1190 34

WV8 – Codsall, Rakegate, Pendeford, Bilbrook

3 3

WV9 – Pendeford 191 3WV10 – Low Hill, Bushbury, Heath Town, Fordhouses, Fallings Park

5019 167

WV11 – Wednesfield 3138 33WV12 – Short Heath, Lodge Farm 31 2WV13 – Shepwell Green, Willenhall 311 17WV14 – Bradley, Bilston Town 4056 70

3.7 With this information now available WH can do targeted work to encourage even more take up with the following already being done:

WH Tenant Engagement Team is currently contacting young people who attend the youth zone to ask them to be part of a promotional campaign which will outline the benefits of attending. Some printed communication will then be distributed to schools during the last week of term;

WH Communications Manager will be including membership of The Way as an additional prize in the children’s competition run in Tenants Update. There will also be the offer of free membership for 10 other young people drawn at random from the competition entries;

WH Communications Team will also be contacting 3,459 household with children and where the email address is known, offering free membership to the first 15 young people who produce the email at The Way;

The Express and Star annual poster event which WH takes part in will also be themed around The Way. Children from Long Knowle Primary School have been asked to create a poster which showcases the facilities of the youth zone with the poster then featuring in the paper during the school holidays

3.8 Work done by the Skills Development Team has also seen a strengthening of the links between WH and The Way:

WH’s Skills & Enterprise Manager has worked with The Way in the development of the ‘Get a Job’ programme (http://www.thewayyouthzone.org/get-a-job/) which aims

http://www.thewayyouthzone.org/get-a-job/

to support young people to gain employability skills such as CV writing, interview techniques and enterprise activities. The first two cohorts were supported by WH. It is hoped that with a new Enterprise Manager coming into post at The Way, this link can be rekindled and more work done in relation to this project;

WH Skills Development Manager has, on a voluntary basis, coached several rugby sessions at The Way and led on the induction of young people;

WH Skills Development Team also delivers the Impact Programme with the support of The Way

3.9 Links have also been forged in relation to dealing with anti-social behaviour and public order issues. A WH ASB Team Leader has been attending meetings chaired by The Way and involving the police to share information about such issues. While the meetings in their original format are not currently being held, it has been agreed with the Chief Executive of The Way that WH’s ASB Team Leader and WH’s ABC Officer will meet with their Youth Workers to share information so that work can continue, sharing information to help prevent situations arising or, where they do, both organisations being able to better respond to issues of concern.

3.10 The appointment of a new Chief Executive has led to discussions on key aspects of concern to WH tenants in terms of their children accessing The Way, most pertinently in relation to transport. Further, and of concern to Board members, proposed initiatives look to address the issue of the provision of youth work in the localities.

3.11 Feedback from tenants showed clearly their concern about transport, the cost of which is a clear barrier to some children being able to go to The Way. WH had looked at the possibility of providing transport (Wigan Youth Zone have done this to some extent and with some degree of success) but the cost and the health and safety implications proved problematic. The Way has indicated that it intends to look to the business community to assist in relation to this matter so further discussion is needed to see what progress is being made.

3.12 The Chief Executive of The Way is attending WH Board on 7th April to provide an update on the new initiatives, with scope for WH to more work particularly in relation to profiling members so more targeted work can be done and in terms of forging better links around employability etc. These areas of work include:

Targets being set around membership levels; The Way to produce a bi-monthly newsletter which will be available to WH and can be

shared on the intra/internet; Forging links between The Way’s new Enterprise Manager and WH’s Skills and

Enterprise Manager; Funding opportunities (via the Youth Investment Fund) which would, if awarded, allow

The Way to support third sector organisations to work with young people in the localities, with funding also being used by The Way to develop their Young People & Leadership programme. It is felt that WH could play a key role in the latter by working with The Way to try and understand what young people want and how services can respond to their wishes

4.0 Financial and value for money implications

4.1 There is a need to ensure that funding given to subsidise the running of The Way is of benefit to as many children and young people living in WH-manged homes as possible.

4.2 The additional funding required for memberships as noted above will be in the region of £125.00.

5.0 Legal implications

5.1 There are no legal implications identified.

6.0 Human resources implications

6.1 There are no human resource issues identified.

7.0 Health and safety implications

7.1 There are no health and safety issues identified.

8.0 Equalities implications

8.1 Has an equality impact assessment been carried out. NO

8.2 Explanation:

There is no requirement to undertake an EIA given that there is no policy or procedure required in terms of The Way. However, it is proposed that, where possible, more profile information will be made available which can form part of subsequent reports to Board. Availability of data is subject to what is collected by The Way and subject to what can be reasonably shared under the terms of the Information Sharing Agreement.

9.0 Impact on the environment and community

9.1 The value of youth work as an educational process is widely recognised. For a great many children and young people, the opportunities for friendship, meaningful relationships and the acquisition of new skills is invaluable and works to build confidence and self-esteem. Such work, done in conjunction with partners such as WH, supports young people to address issues which may hinder their development, challenging them to be active and equal citizens and make a positive contribution to the community in which they live.

10.0 Long term consequences for the company

10.1 WH, in partnering with The Way, seeks to invest in young people and make them engage with others from across the city. Helping children and young people aspire to achieve their potential and to make a positive contribution for the sake of themselves and others can

only enhance the company’s reputation as an organisation which looks to the future and to sees young people as worth investing in.

11.0 Impact on business relationships with suppliers, customers and others

11.1 No impact identified.

12.0 Impact on the Wolverhampton Homes’ Management System

12.1 Will any new policy or policy updates have an impact on the management system.

NO

12.2 If yes and approved by board members, update to go on the management system by:

Date:

Officer responsible:

13.0 List of Appendices

13.1 None attached

Agenda Item 7A

Wolverhampton Homes Board

7th April 2017

Open Report

Report title: Audit Plan 2017 (Financial Statements)

Status: For Approval

Author: Jo McCoy

Contact No: (01902) 554415

Recommendations: The Board are asked to approve the attached Audit PlanKey risks and contentious issues:

The key risks highlighted as part of the audit plan are management override of internal controls, going concern and viability, agreement ofintercompany transactions and balances with the council, accountingfor pension costs and taxation.

Management Summary

1.0 Purpose

1.1 RSM Ltd were appointed to provide an external audit of Wolverhampton Homes’ Financial Statements for 2016/17 at the Annual General Meeting of the Board in September 2016. A plan of the audit has been proposed by RSM for the Board to approve.

2.0 2016/17 Audit

2.1 The audit plan sets out the engagement objectives and primary responsibility of the auditor to the Board. A deliverables schedule has been agreed with the Finance team responsible for producing the annual accounts under the terms of the Shared Services agreement with the council.

2.2 The annual audit of the Financial Statements is proposed to take place during May 2017. An audit findings report will be presented to the Resources Committee meeting on 21st July 2017 alongside the draft accounts.

3.0 Key Audit Risks

3.1 The objectives are prioritised around risk. There are five key business and audit risks highlighted within the plan, these are management override of internal controls, going concern and viability, agreement of intercompany transactions and balances with the council, accounting for pension costs and taxation.


4.1 The audit is required to report to the Board an opinion as to whether the financial statements of the company are prepared under International Financial Reporting Standards and show a true and fair view.


5.1 The audit is required to report to the Board an opinion as to whether the financial statements of the company comply with the Companies Act 2006.


6.1 There are no proposals within this report with Human Resource implications.


7.1 There are no proposals within this report with health and safety implications.



8.2 Explanation:

There are no proposals within this report


9.1 The report does not contain any proposals that affect the environment or the community.


10.1 The audit opinion of going concern and future viability is an external validation of the company’s future, the financial statements are a public document.


11.1 The audit opinion of going concern and future viability is an external validation of the company’s future to demonstrate to stakeholders.


12.1 Will any new policy or policy updates have an impact on the management system.NO


13.1 WHL 2017 Audit Plan

WOLVERHAMPTON HOMES LIMITED

Audit plan Year ended 31 March 2017

Presented to the Board

By RSM UK Audit LLP

on 7 April 2017

Draft 1

CONTENTS

1 Introduction and engagement objectives 2

2 Audit approach, scope and timetable 3

3 Key risks affecting our audit plan 5

4 Matters brought forward from previous year 7

Appendix A - Audit engagement team .............................................................................................................................. 8

Appendix B - Other matters relating to audit approach, scope and reporting ................................................................... 9

Appendix C - Pro-forma audit report (unmodified) .......................................................................................................... 12

Appendix D - Governance, control and independence ................................................................................................... 14

Appendix E - Financial reporting developments .............................................................................................................. 17

Our Report is prepared solely for the confidential use of Wolverhampton Homes Limited and solely for the purpose of

explaining the scope of the audit, our proposed audit approach, and to highlight the key risks that we will be focusing

our audit work upon, forming part of the ongoing communications we are required to make under International

Standard on Auditing (UK and Ireland) 260 – Communication with those charged with governance. Therefore, the

report may not, without our express written permission, be relied upon by Wolverhampton Homes Limited for any other

purpose whatsoever, be referred to in whole or in part in any other external document or made available (in whole or

in part) or communicated to any other party. RSM UK Audit LLP neither owes nor accepts any duty to any other party

who may receive our Report and specifically disclaims any liability for any loss, damage or expense of whatsoever

nature, which is caused by their reliance on our Report.

Wolverhampton Homes Limited Audit plan 31 March 2017

Draft 2

1 INTRODUCTION AND ENGAGEMENT OBJECTIVES

Introduction

The purpose of this document is to explain the scope of the audit, our proposed audit approach, and to highlight the

key risks that we will be focusing our audit work upon. This forms part of the ongoing communications we are required

to make under International Standard on Auditing (UK and Ireland) 260. For the avoidance of doubt, the auditor is not

required to design audit procedures for the specific purpose of identifying matters of governance interest, nor does the

audit relieve management or those charged with governance of their responsibilities. Throughout this document the

terms partner and principal are interchangeable.

Engagement objectives

Our primary responsibility as your auditor is to form and express an opinion as to whether the financial statements of

Wolverhampton Homes Limited (‘WHL’ or ‘the Company’) prepared under International Financial Reporting Standards

as adopted by the European Union show a true and fair view and comply with the Companies Act 2006.

We also report to you whether, in our opinion, based on the work undertaken in the course of the audit, the information

given in the Strategic Report and the Directors’ Report is consistent with the financial statements and the Strategic

Report and the Directors’ Report have been prepared in accordance with applicable legal requirements. We are also

required to state, in the light of the knowledge and understanding of the company and its environment obtained in the

course of the audit, whether or not we identified material misstatements in the Strategic Report and the Directors’

Report.

We will plan our work with a view to ensuring:

• minimum disruption to your staff and operations

• that reports submitted to you are constructive and clear, focusing on the issues that matter

• that surprises are avoided and that good communications are maintained with you throughout the assignment

Our engagement letter dated March 2017 sets out in detail our respective responsibilities.


Draft 3

2 AUDIT APPROACH, SCOPE AND TIMETABLE

Our audit approach will focus on those areas of the business that are considered significant to the results for the

period and the position at the balance sheet date.

Audit scope

Scoping objective

The audit is scoped to ensure that we will obtain sufficient and appropriate audit evidence in respect of:

• the significant business operations of the Company.

• other operations which, irrespective of size, are perceived as carrying a significant level of audit risk, whether

through susceptibility to fraud, or for other reasons.

• the appropriateness of the going concern assumption used in the preparation of the financial statements.

It is anticipated that the profit and loss account and balance sheet will be tested through corroborated analytical

procedures and audit assurance obtained that the results of those procedures accord with our audit expectations and

underlying audit evidence. We may carry out detailed testing of transactions and period end balances where our risk

analysis or the results of our analytical procedures indicate that additional audit assurance is required. Alternatively,

we may seek to place reliance on the controls operating within the Company if other audit procedures prove

inappropriate or inadequate.

During the course of our audit we will maintain sufficient awareness of the Company to ensure that our audit risk

assessments remain valid. In achieving a soundly based risk assessment, the information provided by internal audit,

together with that passed to us by management is critical.

During the course of our audit work we will consider the qualitative aspects of the financial reporting process including

the appropriateness of the accounting policies adopted, the reasonableness of any estimates and the adequacy of

disclosures made by the Company, to include all items that have a significant impact on the relevance, reliability,

comparability, understandability and materiality of the information provided by the financial statements.

Timetable and communication plan

We have set out below the key actions to be taken by RSM UK Audit LLP and WHL each month to ensure the

reporting timetable is met:


Draft 4

Timetable and communication plan

March – April 2017 • Reconfirm engagement letter is up to date

• Carry out IT controls testing

• Initial planning meeting with WHL, Paul Oxtoby and Jamie Roberts of

RSM UK Audit LLP, including fraud discussion

• Confirm timetable

• Confirm audit independence to WHL

• Send updated Information Requirements (“deliverables”) and skeleton accounts to WHL by 31 March 2017

• Prepare draft audit plan for submission to WHL

• Distribute audit plan for management review, prior to the Board meeting

on 7th April 2017

May – June 2017 • Confirm audit scope and approach with WHL

• Distribute draft financial statements (and audit deliverables to be available on request) to RSM UK Audit LLP one week in advance of the agreed date for commencement of the audit fieldwork (28 April 2017)

• Clarify audit issues arising from preliminary analytical review

• Commence audit fieldwork on 8 May 2017.

• Review assumptions surrounding adoption of going concern basis in the

preparation of the financial statements including forecasts and

covenants

July – September 2017 • Prepare draft audit findings report and submit to WHL management for

comment

• Discuss audit findings with management at Audit Clearance Meeting – (date TBC – 23

rd June 2017 at 10.00 suggested)

• Final audit findings report presented to Resources Committee Meeting on 21 July 2017

• Approval of Letter of Representation and financial statements by WHL

on 15 September 2017

Deliverables

A detailed deliverables schedule has been agreed with Joanna McCoy. The above timetable assumes that the

deliverables schedule is adhered to. We will notify WHL on a weekly basis where delays in deliverables impact on the

achievement of the timetable set out above.


Draft 5

3 KEY RISKS AFFECTING OUR AUDIT PLAN

Overview of key business and audit risks affecting our audit plan

Set out on the following pages is an overview of those matters that we consider to be the key business and audit risks

arising from our preliminary risk assessment for the 31 March 2017 audit, together with our proposed audit approach

to these risks. The risk assessment process is designed to ensure that we focus our audit effort on the areas of

highest audit risk to the WHL financial statements. This risk assessment and our responses will be updated throughout

the engagement to ensure that all areas of material risk to the financial statements are addressed by our audit.

Management override of internal controls

Key area of audit focus/risk

As management are separate from those charged with governance, we are

required to consider the possibility of material misstatements in the

financial statements resulting from management override of controls.

Our approach • Significant journal entries will be reviewed to confirm they represent

genuine adjustments

• Where accounting policies are subject to estimation or judgement, the

estimate will be reviewed to ensure it has been prepared on a

reasonable basis

• The business and control environment will be reviewed with

management to identify areas of control weakness. Where weaknesses

are identified in the control environment, reliance will not be placed upon

tests of those controls

Going concern and viability


The Company’s current Management Agreement runs to 2028 with interim

reviews. Significant savings are budgeted for the short and medium term.

The directors have a responsibility to ensure that there is sufficient

evidence that the company remains a going concern and that the financial

statements are properly prepared on this basis.

Our approach • Review the Company’s budgets and cash flow forecasts for the period of

a minimum of one year from date of approval of the financial statements

• Assess the status of any interim review discussions and obtain

confirmation that the Council is not aware of any intention to, or reason

why, it might terminate the Management Agreement or otherwise impact

the viability of the Company.


Draft 6

Agreement of intercompany transactions and balances with Wolverhampton City Council (“the Council”)


There is a risk that certain transactions between the Company and the

Council may not be documented in a manner that clearly determines the

appropriate accounting treatment, particularly in distinguishing which party

is acting as an agent or principal.

Our approach • Review the accounting treatment of any such transactions identified

• Obtain direct confirmation from the Council of the management fee, SLAs and reverse SLAs for the year

• Review reconciliations performed over inter-entity balances.

Accounting for pension costs


The requirements of IAS 19 (revised) in accounting for pension costs must

be followed and the responsibility for the use of appropriate assumptions

rests with the directors of the Company.

Our approach • Obtain and review the instructions provided to the actuary to confirm

compliance with the requirements of IAS 19 (revised)

• Review of the actuary’s report and supporting assumptions and ensure

that the pension liability is accounted for and disclosures made in line

with IAS 19 (revised).

Taxation


The Company has mutual trading status for the activities that are carried

out with the Council. Certain of its activities, such as rental income, and

new commercial streams of income fall outside this exemption.

Our approach • Review activities that fall outside the mutual trading exemption and

ensure appropriate inclusion within the corporation tax provision and

disclosure in the financial statements.


Draft 7

4 MATTERS BROUGHT FORWARD FROM PREVIOUS YEAR

The following “house-keeping matter was identified:

Transaction posting dates

Fact and potential consequence It was noted during the audit that there have been a number of transactions

posted in 2015/16 but dated as either pre-financial year or post-financial

year on the Aggresso system. It was noted that whilst a handful of these

transactions are due to late receipt of invoices, a number are due to

inputting errors

Possible action Consider implementing an exception report for posting dates not within

expected parameters.


Draft 8

APPENDIX A - AUDIT ENGAGEMENT TEAM

Staff contact Role Telephone No email

Paul Oxtoby Audit Principal 0121 214 3123 [email protected]

Jamie Roberts Audit Manager 0121 214 3259 [email protected]

Kathryn Mason Supervisor 0121 214 3100 [email protected]

Harry Carlisle Assistant 0121 214 3100 [email protected]


Draft 9

APPENDIX B - OTHER MATTERS RELATING TO AUDIT APPROACH, SCOPE AND REPORTING

Liaison with internal audit

Management will provide copies of all internal audit reports. We will review and liaise with internal audit, as necessary.

Reliance on internal controls

During the planning phase of our audit we will re-confirm our understanding of the business environment established

by the directors, including internal controls, relevant to the audit. Where we plan to place reliance on internal controls,

we will test the operation of those controls. If our examination of internal controls leads us to believe there may be

significant deficiencies therein, we will report our findings to you.

Qualitative aspects of accounting practices and financial reporting

We will discuss with you any areas where our experience as auditor leads us to believe that accounting practices and

financial reporting could be improved.

Materiality

The directors have primary responsibility for ensuring that annual financial statements are free from material

misstatement or error. In accounting terms, a material error is one that, if it were unadjusted, would cause a user of the

financial statements to alter his view of those statements or the results or the financial position of the entity being

reported on. Materiality, therefore, is incapable of monetary definition, since it has both quantitative and qualitative

elements. It is necessary to consider not only the impact of an error on the financial statements as a whole, but also on

the individual accounting items affected. Additionally, the cumulative impact of all unadjusted errors must be

considered.

Auditors examine financial statements on a test basis. The level of testing we will carry out is based on our

assessment of the risk that an item in the financial statements may be materially misstated (see below). As such, as

well as for the reasons stated in the preceding paragraph, it is neither practical nor appropriate to give an indication of

the value of an item we would consider to be material although, clearly, we do relatively more work in areas where the

risk of misstatement is considered to be high.

A key element of our annual audit planning is to make an assessment of the risk that the financial statements might

contain material errors. We base this assessment on our knowledge of the Company and understanding of its

business and of the industry in which it operates. We assess risk both at the overall financial statement and at the

individual item levels. Risk assessments may be amended as the audit progresses. The nature and volume of audit

work we will conduct are directly related to the outcome of our risk assessments.

Going Concern

The economic difficulties of recent years and the subsequent paucity of available credit have resulted in far greater

focus, by both directors and auditors, on the appropriateness of adopting the going concern assumption used in the

preparation of financial statements. As auditor it is our responsibility to consider management’s assessment of the

Company’s ability to continue as a going concern together with any relevant disclosures in the financial statements in

order for them to show a true and fair view.


Draft 10

When making its assessment, if management is aware of material uncertainties related to events or conditions that

may cast significant doubt upon the ability to continue as a going concern, those uncertainties shall be disclosed.

Management’s assessment must cover a period of at least twelve months from the date of approval of the financial

statements. As auditor we shall consider the appropriateness of management’s use of the going concern assumption

and related disclosures.

“Guidance on the Going Concern Basis of Accounting and Reporting on Solvency and Liquidity Risks - Guidance for directors of companies that do not apply The UK Corporate Governance Code” was issued by the Financial Reporting Council (FRC) in April 2016. The guidance is intended to assist directors of ‘non-Code’ companies in applying the relevant requirements in accounting standards and company law, including the requirements of new UK and Ireland GAAP and the strategic report. The guidance replaces the FRC’s “Going Concern and Liquidity Risk: Guidance for Directors of UK Companies 2009” and “An Update for Directors of Companies that Adopt the Financial Reporting Standard for Smaller Entities (FRSSE): Going Concern and Financial Reporting”.

Dealing with errors

We will record and investigate all potential errors that we discover during our work and, except for matters which we

judge to be clearly trivial, communicate our findings to management directly responsible for the preparation of the

company’s financial statements. These matters will include the adequacy of disclosures made within the financial

statements. Management must decide which errors are material and therefore require adjustment if the financial

statements are to show a true and fair view. We will ask management to provide us with written explanations

supporting any decision not to make adjustments, which we will discuss with them. If we cannot agree with

management’s decisions, we will consider the implications for our audit opinion.

In accordance with the requirements of ISA (UK and Ireland) 260 ‘Communication with those charged with

governance’, we are required to report to you all known adjusted and unadjusted errors (including those relating to

disclosures within the financial statements) unless they are considered ‘clearly trivial’. We will request written

representation that you are comfortable with any unadjusted errors and the reasons for adjustment not being made.

Fraud

In accordance with the requirements of ISA (UK and Ireland) 240, we will consider the susceptibility of the Company to

fraud, taking account of the business and control environment established and maintained by the directors, as well as

the nature of transactions, assets and liabilities recorded in the accounting records. However, the principal

responsibility for the prevention and detection of fraud rests with management, who should not rely on the audit to

discharge those functions. We will request a written representation that you have disclosed to us the results of your

assessment of the risk that the financial statements may be materially misstated as a result of fraud.

We will report, as soon as practicable, any suspected or discovered fraud which comes to our attention, even if the

potential effect on the financial statements is immaterial, unless there is a legal or regulatory requirement to report

direct to a third party.

Compliance with law and regulations

We will report, as soon as practicable, any suspected or actual non-compliance with law or regulations which comes to

our attention, unless there is a legal or regulatory requirement to report direct to a third party.


Draft 11

Audit scope limitations

We do not anticipate, at the time of writing, any limitations to the scope of our audit. Should any factors arise during

the course of our audit that may limit our scope, we will inform you immediately and seek to have the limitation

removed.

Information and access

We will request a written representation that you have provided us with all relevant information and access as set out

in the current letter of engagement, and that all transactions have been recorded and are reflected in the financial

statements.

Audit Report and Scope of an Audit

ISA 700 (revised) The Auditor’s Report on Financial Statements provides auditors with options as to the disclosure in

the audit report of the scope of an audit. Those options are:

1. Cross refer to a “Statement of the Scope of an Audit” that is maintained on the Financial Reporting Council website;

or

2. Cross refer to a “Statement of the Scope of an Audit” that is included elsewhere within the Annual Report; or

3. Include a prescribed description of the scope of an audit.

It is RSM policy to adopt option (1) unless there is a compelling reason why an alternative should be adopted. We

believe this policy achieves the objective of brevity within the audit report whilst at the same time providing members

with the option to review the detailed audit scope as promulgated by the Financial Reporting Council on its website.

The pro-forma unmodified audit report in Appendix C is drafted on the basis that option (1) is adopted.


Draft 12

APPENDIX C - PRO-FORMA AUDIT REPORT (UNMODIFIED)

Pro-forma audit report

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WOLVERHAMPTON HOMES LIMITED

Opinion on financial statements We have audited the financial statements on pages... to ... The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union. In our opinion the financial statements:

give a true and fair view of the state of the company’s affairs as at 31 March 2017 and of its [profit]/[loss] for the year then ended;

have been properly prepared in accordance with IFRSs as adopted by the European Union; and

have been prepared in accordance with the provisions of the Companies Act 2006. Scope of the audit of the financial statements

A description of the scope of an audit of financial statements is provided on the Financial Reporting Council’s website

at http://www.frc.org.uk/auditscopeukprivate

Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the Strategic Report and the Directors’ Report for the financial year for which the

financial statements are prepared is consistent with the financial statements and, based on the work undertaken in the

course of our audit, the Strategic report and the Directors’ Report have been prepared in accordance with applicable

legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the

audit, we have not identified any material misstatements in the Strategic Report or the Directors’ report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to

you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors’ remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Respective responsibilities of directors and auditor

As more fully explained in the Directors’ Responsibilities Statement set out [on pages … to …], the directors are

responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and

International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing

Practices Board’s (APB’s) Ethical Standards for Auditors.

http://www.frc.org.uk/auditscopeukprivate

http://www.frc.org.uk/auditscopeukprivate


Draft 13

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the

Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those

matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted

by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as

a body, for our audit work, for this report, or for the opinions we have formed.


Draft 14

APPENDIX D - GOVERNANCE, CONTROL AND INDEPENDENCE

Quality reviews

Independent quality reviews are carried out by our Quality Assurance Department on a rotational basis as

recommended by the Risk Advisory Group and agreed by the Board of RSM UK Audit LLP. The reviews are

undertaken by experienced principals and staff not connected with the audit. The inspection includes testing of the

effectiveness and quality of our audits and a continuous improvement programme exists to ensure that standards are

maintained and improved.

Personal independence

All RSM personnel must adhere to strict regulatory, professional and internal independence requirements related to

investments or business relationships with clients. All principals and staff must annually certify their compliance with

these personal independence rules.

RSM UK Audit LLP is authorised by the Institute of Chartered Accountants of Scotland (“ICAS”) to carry out statutory

audits. Members of this Institute and other Accounting Bodies are bound by their relevant Ethical Code which covers,

inter alia, objectivity, independence, confidentiality and integrity.

Paul Oxtoby is a member of the Chartered Institute of Certified Accountants (“ACCA”) and is required to maintain

relevant Continuing Professional Development via training courses and seminars and, as an audit principal, must be a

Responsible Individual as defined by Audit Regulations.

In addition, RSM UK Audit LLP has internal requirements that must be met by all principals undertaking audit work.

These include internal authorisation to undertake audit work and hot and cold reviews of working files for listed and

other selected clients. These are in addition to external reviews carried out by the ICAS Quality Assurance Department

and, where appropriate, the Financial Reporting Council’s Audit Quality Review team.

Principals of RSM and family members are forbidden to invest in any client that is an audit client of RSM UK Audit LLP

and a restricted client list, which is regularly updated, is maintained. Staff (including family members), other than

members of the audit team may, subject to complying with internal procedures, invest in audit clients. These

restrictions are reinforced in both the RSM UK Audit LLP Members’ Agreement and staff terms and conditions of

employment.

Auditor independence

In accordance with International Standard on Auditing (UK and Ireland) 260 “Communication with those charged with

governance” and Ethical Standard 1 (revised) “Integrity, objectivity and independence”, the following are details of all

the relationships (including the provision of non-audit services) between RSM UK Audit LLP and its related entities and

Wolverhampton Homes Limited and its related entities and directors that may reasonably be thought to bear on RSM

UK Audit LLP’s independence and the objectivity of the audit engagement principal, Paul Oxtoby, and the audit staff,

the threats to auditor independence that these create, the related safeguards that are in place, and why they address

such threats together with any other information necessary to enable an assessment of auditor objectivity and

independence to be made:


Draft 15

1. Non-audit services provided by related entities to Wolverhampton Homes Limited and its related entities and

directors:

RSM UK Tax and Accounting Limited (formerly Baker Tilly Tax and Accounting Limited)

Prior to these services being provided RSM UK Audit LLP procedures require a conflict threat assessment to be

undertaken. Only if appropriate safeguards can be and are implemented is the non-audit service provided.

Service provided Threat posed Safeguard applied and why it addresses the threat

Fees

Corporation tax

compliance services,

including iXBRL tagging of

financial statements

Self-review Tax work is undertaken by

a separate team, reporting

to a separate Authorised

Individual (Graham Batty).

Work undertaken is

straightforward with no

complex or contentious

elements. As such, the

audit team is considered

competent to assess the

tax risk implicit in the

advice.

Management Informed and

knowledgeable client

management exist (Jo

McCoy) are considered

client informed

management and take

responsibility for any

relevant accounting entries

and disclosures for the

financial statements and

the entity's tax affairs and

decisions on any

contentious or

judgemental items, if / as

necessary.

Self-interest Arrangements are not on a

contingent basis and are

not considered significant

in the context of the audit

fee.

£3,500

Taxation advice in

connection with the

possible development of

brownfield sites

Management Informed and

knowledgeable client

management exist (Jo

McCoy) are considered

client informed

management and take


Draft 16

responsibility for any

relevant accounting entries

and disclosures for the

financial statements and

the entity's tax affairs and

decisions on any

contentious or

judgemental items, if / as

necessary.

Self-interest Arrangements are not on a

contingent basis and are

not considered significant

in the context of the audit

fee.

£1,700

“Related entities” of RSM UK Audit LLP for the above purpose (and for the fees section – see section 4) include:

• All firms that are members of the RSM International independent network of member firms and, for services up to

14 April 2015, members of the Baker Tilly International independent network of member firms;

• Companies in which RSM UK Audit LLP members are directors, details of which are available from your audit

principal,

• All entities within the Baker Tilly UK Holdings Limited group.

In our professional judgement, RSM UK Audit LLP is independent within the meaning of regulatory and professional

requirements and the objectivity of the principal, Paul Oxtoby and the audit staff, is not impaired.

This confirmation has been prepared for the sole use of Wolverhampton Homes Limited. It must not be disclosed to a

third party, or quoted or referred to, without RSM UK Audit LLP’s written consent. No responsibility is assumed by

RSM UK Audit LLP to any other person.


Draft 17

APPENDIX E - FINANCIAL REPORTING DEVELOPMENTS

Financial reporting developments

Latest developments

Periods commencing on or after 1 January 2017

Amendments to IAS 7: Disclosure initiative (Not yet endorsed by the EU)

In January 2016, the IASB published “Amendments to IAS 7: Disclosure initiative” with the objective of ensuring that

disclosures help users of financial statements to evaluate changes in liabilities arising from financing activities.

To achieve this objective, the amendment requires the following changes in liabilities arising from financing activities to

be disclosed (to the extent necessary to enable users to evaluate those changes):

(i) changes from financing cash flows; (ii) changes arising from obtaining or losing control of subsidiaries or other businesses; (iii) the effect of changes in foreign exchange rates; (iv) changes in fair values; and (v) other changes.

Liabilities arising from financing activities are defined as liabilities ‘for which cash flows were, or future cash flows wil l

be, classified in the statement of cash flows as cash flows from financing activities’. The new disclosure requirements

also relate to changes in financial assets if they meet the same definition.

The amendments indicate that one way to fulfil the new disclosure requirement is to provide a reconciliation between

the opening and closing balances in the statement of financial position for liabilities arising from financing activities.

This is a departure from the December 2014 exposure draft that had proposed that such reconciliation be mandatory.

The amendments require changes in liabilities arising from financing activities to be disclosed separately from changes

in other assets and liabilities if an entity provides the disclosures required by the amendment in combination with

disclosures of changes in other assets and liabilities.

Comparative information is not required for preceding periods when the amendments are first applied.

Effective date: Periods beginning on or after 1 January 2017, with earlier application permitted.


IFRS 15 Revenue from Contracts with Customers (Endorsed for use in the EU on 29 October 2016)

In May 2014, the IASB and the US Financial Accounting Standards Board (FASB) jointly issued a converged standard

on the recognition of revenue from contracts with customers. The IASB has issued the standard as IFRS 15 Revenue

from Contracts with Customers and it will replace IAS 18 Revenue, IAS 11 Construction Contracts and related

interpretations.


Draft 18

The core principle of the new standard is for entities to recognise revenue to depict the transfer of goods or services to

customers in amounts that reflect the consideration to which the entity expects to be entitled in exchange for those

goods or services. The new standard will also result in enhanced disclosures about revenue, provide guidance for

transactions that were not previously addressed comprehensively (for example, service revenue and contract

modifications) and improve guidance for multiple-element arrangements. There are 63 examples in the Illustrative

Examples which accompanies the standard.

The final standard retains the following 5 step approach set out in the earlier exposure drafts:-

1) Identify the contract(s) with a customer – A contract is any agreement between parties that creates enforceable

rights and obligations.

2) Identify the performance obligations in the contract – Performance obligations are promises to transfer distinct

goods or services to a customer.

3) Determine the transaction price – The transaction price is the amount of consideration in a contract that an entity

expects to be entitled to in exchange for transferring the promised goods or services to a customer.

4) Allocate the transaction price to the performance obligations in the contract – The transaction price is typically

allocated on the basis of the relative stand-alone selling prices of each distinct good or service promised in the

contract.

5) Recognise revenue when (or as) the entity satisfies a performance obligation – A performance obligation may be

satisfied at a point in time or over time. The amount of revenue recognised is the amount allocated to the satisfied

performance obligation.

For some entities, the new approach may not significantly affect the amount or timing of revenue recognition; however,

for some businesses, notably those involved in entertainment and media; software; telecommunications and real

estate, there could be a significant impact which may require changes to accounting systems and processes.

Effective Date: IFRS 15 was initially issued with an effective date of 1 January 2017. In September 2015, the IASB

confirmed a one-year deferral of the effective date for IFRS 15 to periods commencing on or after 1 January 2018.

Companies applying IFRS continue to have the option to apply IFRS 15 earlier if they wish to do so provided that fact

is disclosed.

The FASB standard also has an effective date of periods commencing on or after 1 January 2018.

Clarifications to IFRS 15 Revenue from Contracts with Customers (Not yet endorsed by the EU)

Background The IASB and the FASB formed the Joint Transition Resource Group for Revenue Recognition (TRG) after issuing the new standard on revenue to support its implementation by entities. Many of the issues discussed by the TRG were resolved without the need for further action. However, five topics (identifying performance obligations, principal versus agent considerations, licensing, collectability, and measuring non-cash consideration) were identified as requiring consideration by the Boards. In addition, some stakeholders asked for practical expedients. After considering the five topics and possible practical expedients, the IASB issued targeted amendments in April 2016 in three areas of IFRS 15 as well as some transition relief. The IASB concluded that it was not necessary to amend IFRS 15 with respect to collectability or measuring non-cash consideration.


Draft 19

Identifying performance obligations IFRS 15 requires an entity to identify performance obligations on the basis of distinct promised goods or services. The IASB has added the clarification that the objective of the assessment of a promise to transfer goods or services to a customer is to determine whether the nature of the promise is to transfer each of those goods or services individually or instead, to transfer a combined item or items to which the promised goods or services are inputs. Principal versus agent considerations IFRS 15 requires an entity to determine whether it is the principal in the transaction or the agent when another party is involved in providing goods or services to a customer on the basis of whether it controls the goods or services before they are transferred to the customer. The IASB has amended and extended the application guidance to clarify that:

an entity must determine whether it is a principal or an agent for each specified good or service promised to the customer and could be a principal for some specified goods or services and an agent for others;

that the indicators provided for assessing control are not a conclusive list; and

that the indicators should not be viewed in isolation as they are not the only ones and may be more or less relevant depending on the nature of the specified goods/services and contractual conditions. Other indicators may exist which are more persuasive.

Licensing When an entity grants a licence to a customer that is distinct from other promised goods or services, the entity has to determine whether the licence is transferred at a point in time or over time on the basis of whether the contract requires the entity to undertake activities that significantly affect the intellectual property to which the customer has rights. To clarify when an entity's activities significantly affect the intellectual property, the IASB has amended the application guidance to clarify that the activities significantly affect the intellectual property if:

the activities are expected to significantly change the form (e.g. design) or the functionality of the intellectual property; or

the customer’s ability to benefit from the intellectual property is substantially derived from, or dependent upon, the entity’s activities (e.g. activities supporting or maintaining the value of a brand which is being franchised).

Additionally, the IASB has extended the application guidance with respect to the specific guidance in IFRS 15 for a sales-based or usage-based royalty promised in exchange for a licence of intellectual property (“the royalties constraint”). Transition relief The IASB has provided further additional (optional) practical expedients including relief for entities choosing full retrospective application and for entities choosing to recognise the cumulative effect of initially applying IFRS 15 at the start of the period in which it first applies the Standard (“the modified retrospective method”). Interaction with the FASB The FASB has published more extensive amendments to the US revenue standard (Topic 606). In addition, while the IASB has announced that it will no longer attend TRG meetings and that IFRS 15 will not be subject to further changes, the FASB has stated that it will continue to address implementation issues and attend TRG meetings. Effective Date: The amendments are effective for annual reporting periods beginning on or after 1 January 2018 (the same effective date as IFRS 15). Earlier application is permitted.


IFRS 16 Leases (Not yet endorsed by the EU)

In January 2016, the IASB issued its new standard on Leases, IFRS 16.

http://www.iasplus.com/en-gb/news/2016/01/trg


Draft 20

The new standard recognises a leased asset and a lease liability for almost all leases and requires them to be

accounted for in a consistent manner. This introduces a single lessee accounting model and eliminates the previous

distinction between an operating lease and a finance lease.

The expense recognised in profit and loss is consistent with the charge recognised under IAS 17 with regards to

finance leases in that it will comprise a depreciation charge on the leased asset and an interest charge on the lease

liability. For leases previously classified as operating leases, this will replace the expense for lease payments.

Short-term leases (less than 12 months) and leases of low-value assets (such as personal computers) are exempt

from the requirement to recognise a leased asset and lease liability. Instead, lessees can recognise the lease

payments as an expense over the term of the lease either on a straight-line basis or on another systematic basis more

representative of the pattern of the lessee’s benefit.

The lessor accounting model is largely unchanged as it retains the classification of leases as operating or finance

leases and the different methods of accounting for them.

Effective Date: Periods commencing on or after 1 January 2019. Early application is permitted but only if companies

also apply IFRS 15 Revenue from Contracts with Customers at the same time. Transition exemptions from full

retrospective application are available.

The leasing project was a joint project between the IASB and the FASB (the US standard setting body). The FASB

issued its standard on leases in February 2016 with similarities to IFRS 16 but retaining a dual lessee accounting

model for capital leases (similar to finance leases) and operating leases.

Other regulatory matters

Mind the Gender Pay Gap

The difference in pay between men and women has been a debate for some time. The Office of National Statistics is

reporting that on average women earn 19.2 per cent less than men in full time roles. In an attempt to overcome the

gender pay gap the government has published draft regulations.

The new regulations will apply to all employers in the private and voluntary sector with 250 employees or more. From

April 2017 these new regulations will require reports to be published on the company website on an annual basis.

Even if you are a smaller charity our advice is to keep listening. As your employees become aware of the regulations

and start to query the gender pay differences in your organisation you could be left open to sex discrimination, equal

pay and/or constructive dismissal claims.

Agenda Item 8A

Wolverhampton Homes Board7 April 2017

Open Report

Report title: Supporting People In Need – Progress Update

Status: For Information

Authors: Jin Takhar

Andrew Finch

Contact No: (01902) 554650

Recommendations: Members are asked to:1. Note the progress made since the project was launched in

April 2016.2. Note the key findings as outlined in section 3.11.3. Note that a key finding is the requirement for a plan for more

intensive housing management due to the volume of cases, some of them complex.

4. Note that a further communications plan is required to ensure that new referrals are made from across the business.

5. Endorse continued work on this project as summarised in section 4 of this report.


We must adequately identify and meet the needs of all sections of the community we serve – as featured within the Equality Act 2010. Failure to meet legislative requirements is not tolerable. As the programme progresses there is a risk that we will not be sufficiently resourced to effectively deal with both the volume and complexity of tenant support needs.

Management Summary

1.0 Purpose

1.1 To update members on the progress made to date, following board approval of the Supporting People in Need (SPIN) Policy in December 2015 and its subsequent launch in April 2016.

1.2 To outline to Board members the findings and outcomes to date.

2.0 Background

2.1 Wolverhampton Homes recognises that a proportion of its tenants may have support needs which need to be met to enable them to sustain their tenancy and to live in the community independently.

2.2 The approved policy therefore sets out Wolverhampton Homes’ commitment towards identifying with and supporting new and / or existing tenants who are, or who may become vulnerable and thus require ‘a different approach’ and support whilst in their tenancy. It is an overarching document to be applied across our business. The Policy provides a clear focus for the organisation towards identifying & supporting vulnerable people in all aspects of our service delivery.

2.3 The policy has taken the broadest possible view of people who are or may be vulnerable. The definition adopted by WH is as follows; Wolverhampton Homes will look to provide support and tailor services for any individual or household who may experience difficulty with meeting the obligations of the tenancy conditions, as well as support with everyday living.

2.4 A risk matrix, which is a suite of 29 indicators has been adopted to help identify tenants who may need additional support.

2.5 The main aim of SPIN is to: Ensure we identify vulnerable tenants, who need a tailored service, to maintain their

tenancy. Provide tailored support to help them manage and sustain their tenancy, this will be

assessed and provided at a local level through housing management and housing support teams, as well as support from some external services.

2.6 Benefits of the ‘roll out’ of the SPIN Policy and Supporting Procedures to date include; Increased WH’s understanding of the number of tenants in need of support and the type

and level of support required. Systemised current working practices across the organisation in relation to SPIN. Improved data management systems – to ensure customer profiling information is

consistently gathered and refreshed and loaded onto Northgate and the Access Database.

The Project team continues to meet monthly with the Director of People, to ensure that the roll out of the policy and procedures continues to remain fit for purpose and is fully owned by all service areas.

3.0 Progress made to date – following board approval of SPIN Policy

3.1 During February and March 2016, the SPIN project team developed and rolled out a programme of staff training and trade briefings. This was to ensure that all staff were fully

aware of our corporate priority and responsibility for identifying and supporting our potentially vulnerable tenants.

3.2 Our new SPIN procedures went live in April 2016

3.3 Early indications, following data analysis, suggested that we had 9,889 tenants having some known level of possible vulnerability. It was clear that it was an almost impossible task, with current resources, to maintain even an annual contact with all these tenants.

3.4 During the following three months - May to July 2016, the work was piloted and prioritised around: a) assessing all ‘live cases’ referred onto housing support b) assessing the top 100 cases with high accumulative SPIN scores c) assessing all cases where we had had no contact with the tenant for over 18 months d) telephone contacts were made to tenants to validate disability disclosure data held on Northgate.

3.5 At the end of the pilot in July 2016, just under 1000 ‘awaiting assessment /contacts’. had been completed. Early findings indicated that 1 in 4 contacts made required additional help and support and ongoing contact. Tenants were identified as having a wide range of social care support needs. We also identified a relatively small number of tenancy breaches (hoarding, cluttered properties, untidy gardens), and property neglect and self-neglect concerns.

3.6 Having completed just under 1000 contacts during the pilot stage, SMT recommended that housing management teams focus their attention on contacting those tenants indicated as having high support needs only (our red cases – tenants with multiple needs / high accumulative scores).

. 3.7 As at July 2016, figures showed that a total of 8.889 SPIN tenants were awaiting assessment

– of which 5,399 were red cases / indicated as having high support needs. The remaining 3,490 cases were amber and green cases. Amber cases potentially require a medium level of social care and support and green cases require low level support to live independently.

3.8 In August 2016, SMT agreed to allocate additional resources, for 4 full time (temporary) Spin Officer posts for a period of 12 months. The main aim being to assign a dedicated post to each management area, to assess and complete/validate the backlog of 5,399 red cases awaiting assessment. This additional resource would help housing management to manage more complex, time consuming cases in a more intensive and structured way and relieve existing estate managers to focus time on rent arrears work.

3.9 The remaining backlog of 3,490 cases (amber and green cases) will be picked up by existing Estate Managers (EM’s). EM’s are not yet proactively reviewing the backlog of amber and green cases but they are completing SPIN assessments when needed as part of their routine contact with tenants.

3.10 By mid-October, the 4 spin officer posts were recruited and appointed to. A detailed staff training programme was delivered and thereafter, fortnightly project meetings held to discuss performance issues and targets to be achieved.

. 3.11 The findings as at March 24th 2017 show:

a) 2,046 (37%) red cases have been contacted and assessed.

b) There has been a reduction in the total number of red cases outstanding which is now standing at 3353 (63% still to be contacted and assessed).

c) Of the total 2,046 cases contacted, 920 (45%) are deemed to be self-sufficient, this means that they have appropriate support packages and care arrangements in place to manage their home and sustain their tenancy.

d) However, 1,126 (55%) cases contacted need additional support and therefore require regular/frequent contact from Wolverhampton Homes and/or external agencies. The type of support required varies and ranges from external specialist agency support, (such as, ACCI, Eyes, Aspiring Futures, Disability 1 Voice, CAB, Neighbourhood Support, Social Services, Independent Living, Food Bank) to ‘in-house’ housing support (this to include money smart team - personal budgeting support, family/121 support through CWC tenancy sustainment team and intervention/support provided by WH housing support team). The level and the extent of support required also varies from monthly contact to more intensive support e.g., more frequent contact that requires a high degree of support and intervention.

e) Referrals have been made for the 1,126 cases to either an external specialist agency or to ‘in-house teams’ or tenancy sustainment team at CWC as indicated above.

f) Observations to date show that these cases have at least one or more impairment (top four being physical, hearing, visual or learning) with at least one or more indicator associated (top four being chronic ill health, financial hardship, poor mental health, drug/alcohol abuse.) We have also noted that age is a significant factor, figures showing that a number of frail/ older tenants are struggling with maintaining their homes. We have found evidence of poor living conditions in a number of the contacts made. (clutter/hoarding/ general condition of property being poor and well-being concerns also identified).

g) EM’s or SPIN officers do not have the capacity to follow up the outcomes of the support referrals made as there are too many. Therefore, we are currently unable to measure the impact we are making on the tenant/sustainment of the tenancy for every support referral.

h) Of additional concern, Housing management are not getting many new support referrals

from across the business, this includes repairs and contractors. Only 3 in the last month despite awareness raising with staff and contractors and this is not felt to be credible.

i) 26 tenancy breaches have been identified as a direct result of SPIN contacts made to date: o 22 cases where age is a key indicator (frail/ elderly) with associated ill health/ mental

health and or a disability relating to living conditions and are not able to look after their home – property neglect/ poor conditions/clutter/hoarding/untidy gardens identified .

o 3 cases where the tenant, a young person, was experiencing poor mental health/ property neglect/poor conditions/clutter/hoarding or untidy garden/ rubbish identified.

o 1 case where the tenant, who has a learning and a physical impairment, has carried out unauthorised repairs.

A range of actions have been taken to include, social services intervention, ASB injunction, official warning issued to Estate Managers working closely with tenants and their families to agree/ monitor improvements & clean ups.

j) Although 26 tenancy breaches are open as indicated above, the SPIN officers have identified many more that because of a timely intervention have not escalated and therefore have been resolved very quickly.

k) As the project progresses there is the potential for identifying more ‘unknown issues/ more complex cases’ as we work through the lower scoring tenants who we know less about already.

l) There has been positive feedback from many tenants and their families who have appreciated the care and support being provided by WH through the SPIN Project. Please refer to Appendix A for a selection of anecdotal evidence of how the SPIN Project has made a positive difference to the quality of life for some vulnerable tenants.

4.0 Actions and Plans Moving Forward

4.1 There is a need to develop a further, more robust staff communication plan. This will ensure that all staff and contractors, whether they are a repairs operative or a contractor undertaking gas safety checks, are fully aware of the importance of, and the requirement to, make ‘customer in need of support referrals’ to SPIN officers.

4.2 The project team will continue to meet with SPIN officers monthly to discuss performance and monitor the targets in relation to, the total number of red cases contacted and assessed and determine the volume of cases where tenants require ongoing support and contact from Wolverhampton Homes.

4.3 The aim is to assess, and have contacted, all high need/ red cases by 31st December 2017 and as part of this determine how many of these would benefit from on-going contact and support.

4.4 To help meet the target above – the project team have agreed an approach that will help to better manage the future workload of SPIN Officers. (SPIN Officers will no longer focus on the indicators associated with rent arrears/financial hardship or

safeguarding, as the project team are confident that Wolverhampton homes have already robust procedures and specialist officers in place to pick these concerns up.

4.5 Depending on the numbers of tenants requiring on-going contact and support post 31st December 2017, there are likely to be resource implications, which will impact on the level of support and frequency of contact that can be sustained and achieved longer term. The true extent of the sheer numbers of tenants that need additional support to sustain their tenancies, by looking after their homes and themselves, cannot be overlooked.

4.6 A further discussion with senior housing managers and SMT to explore options and put together a plan to address the need for more intensive housing management support provision is planned.

4.7 Future plans and proposals will consider reviewing & reshaping existing services, to allow the release of additional resources and investment required to provide more intensive housing management support. It is not realistic for Housing & Social Care Services to pick these cases up and to provide the level of support required.

4.8 We will therefore carefully consider options and future plans and will look to provide a solution and feedback to board at the right time.


5.1 Depending on the numbers of tenants requiring on-going contact and support , post 31st December , there may be resource implications, which may in turn have a bearing on the level of support and frequency of contacts we can sustain/ achieve longer term.


6.1 No specific issues.


7.1 No specific issues. 8.0 Health and safety implications



9.1 Has an equality impact assessment been carried out. YES :

9.2 Explanation: EIA was undertaken on the SPIN Policy in November 2015 - prior to Policy being approved by Board in December 2015.


10.1 Supporting people to sustain tenancies will have a positive impact on the wider community and should increase the general wellbeing of tenants and their ability to manage their homes better .


11.1 SPIN Policy will need to be reviewed on a three yearly basis and amended to reflect changing demands and priorities .




13.1 Will any new policy or policy updates have an impact on the management system.

No


Appendix A: Impact of Spin Project - Anecdotal Evidence

Appendix A: Impact of Spin Project - Anecdotal Evidence

1. "I attended a pre-arranged SPIN visit at Connaught House. The tenant was elderly and his nearest relative lived in Manchester. The tenant didn't answer the door and though I persisted for 10 minutes, there was no response. I went outside and looked up at the flat and noticed a light was on. So, I went back in the block and spoke with the neighbour who stated she had not seen the tenant for a couple of days. She then informed me that she had a key and so, concerned for the tenant, I entered the flat. I found him lying on the bedroom floor. He told me he had been there since 4pm on Saturday - it was now 11am on Monday! He was in a bad state, so an ambulance was called and I gave him some water as he had not had a drink since falling. Had it not been for SPIN, the tenant may not have been found until it was already too late."

2. "I visited an elderly tenant in November 2016. We hadn't heard from him in over 12 months. We talked and I soon learnt he had no friends or family. I noticed he had a lot of light bulbs around the property. When I asked him about them, he said his lights didn't work and hadn't been working for three months. His only source of light during the evenings was his television. I checked his fuse box and found that it had tripped. I quickly put this right for him. I also found that his shower rail had been pulled down; it soon became clear that he had slipped in the shower and had pulled it down with him. I contacted social services who were aware of the gentleman and made a referral to the Community Support team. His Estate Manager is now aware of the situation and checks up on the tenant to make sure he's okay."

3. "I visited a tenant with mental health issues. She had refused access previously, to the point that the police had to force entry and the lady was detained under the Mental Health Act. Her gas had been capped after several failed attempts to service her boiler. When I got in touch with her she told me she wanted her gas reconnected. I soon realised she required further support and so I made a referral to her old support worker, who paid her a visit that same day. Her gas was reconnected and she's now receiving support again with regard to her mental health."

4. "I visited an elderly lady who took a long time to answer the door. She was 90 years old and her only son lived in Dover. She was unable to use her arm and was finding it very difficult to take care of herself and manage her home. I completed a safeguarding referral for her which resulted in a care package being put in place."

5. "When visiting an elderly tenant, I smelled gas. The tenant then told me that her fire had

been condemned that morning by an external company who had fitted a new cooker for her. I called Homes Direct and arranged for National Grid to attend as it was an emergency. The tenant was very upset, so I stayed with her until it was resolved. She was very grateful for me being there put her at ease."

6. "I completed a SPIN assessment for an elderly tenant, who advised me that her daughter was living with her after being discharged from Penn hospital because she had nowhere else to go. After speaking to the neighbours, I realised that the daughter could often be heard shouting at her mother at night and at members of their family when they came to visit. They also informed me that they thought the daughter was financially abusing their mother. A safeguarding referral was made and both social services and the police are now involved to ensure both mother and daughter are receiving the support and treatment they need."

Agenda Item 8C

Wolverhampton Homes Board7 April 2017

Open report

Report title: Chief Executives report

Status: For decision

Author: Sunita Bhandari

Contact No: 01902) 554902

Recommendations: Board members are asked to approve further dates for the Resources and Audit & Service Delivery Committees.


The Chief Executive’s report is intended to ensure that the Board is kept informed of issues affecting Wolverhampton Homes and where necessary approves the decisions and actions proposed by the Chief Executive and Senior Management Team.

Management Summary

1.0 Purpose

1.1 Members are asked to approve further dates for the Resources Committee and Audit and Service Delivery Committee as below:-

Resources Committee:-

27 October 2017

Audit and Service Delivery Committee:-

20 September 201728 November 2017

Meetings will commence at 9.30am and will be held in the Board Room at Hickman Avenue.












9.1 No speficic issues.




11.1 No specific issues


12.1 Will any new policy or policy updates have an impact on the management system.NO

12.2 If yes and approved by board members, update to go on the management system by:

Date:

Officer responsible:


13.1 There are no appendices.

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