Value for Money
report 2015-16
Contents
INTRODUCTION ....................................................................................................................................... 2
OUR TENANTS – CASE STUDIES............................................................................................................... 7
OUR STAFF .............................................................................................................................................. 4
MANAGING OUR BUSINESS WELL........................................................................................................... 9
SOCIAL VALUE ....................................................................................................................................... 14
ENVIRONMENT ..................................................................................................................................... 17
ASSET MANAGEMENT ........................................................................................................................... 19
LOOKING FORWARD – 2016-17 PLAN................................................................................................... 22
1
INTRODUCTION
ABOUT CHAPTER 1
Chapter 1 exists to enable those with particular needs to live ordinary lives within their community.
We aim to provide safe, high quality social care, support and housing services to the homeless,
victims of domestic abuse, those suffering from drug and alcohol addiction, as well as people who
just need support through a difficult period in their lives
Although Chapter 1’s core service is the provision of housing and support services, we do also
provide a range of social and community value projects, including employment and training
opportunities, the provision of upcycling shops, contact centre for families and student
accommodation.
Our activities can be defined as the following:

Homeless projects - Accommodation and support for homeless, vulnerable people.

Family contact centres - Child-friendly environments for separated families needing support
with child contacts.

Refuges - Safe, secure places for people fleeing domestic abuse.

International student hostel - Safe, affordable accommodation for international students,
providing a home away from home.

Social Enterprise - Training and work opportunities for vulnerable people, which provide
invaluable services to their local community, which include our Second Chance Furniture Reuse project for families on low-incomes.
DELIVERING VALUE FOR MONEY IN CHAPTER 1
For Chapter 1, Value for Money (VFM) means making the best use of our property assets and other
resources available to us to deliver the highest standard of services and achieve the best outcomes
for our customers nationwide.
Chapter 1 strives to provide the best quality service it can for its tenants and the wider community,
in the most efficient and effective way available. Achieving Value for Money is absolutely integral to
the success of our business.
Following a review of our organisation in 2015, we have gained greater insight into how we need to
improve our approach to Value for Money so that we can be confident it remains central to our
corporate strategy, and the delivery of our business plan and our financial and asset management
strategies. Following the HCA regulatory judgement downgrading the association to V3 / G4, a
significant amount of work has been undertaken to transform the business whilst ensuring a value
and quality driven service is provided to all stakeholders and beneficiaries.
2
GOVERNANCE
Chapter 1 is governed by the Homes and Communities Agency (HCA) and the Charities Commission.
As a result of the downgrade mentioned above, the transformation of Chapter 1 concentrated on
the following key areas;
1.
2.
3.
4.
5.
6.
7.
The transfer of its general needs housing stock (PSL) to another housing provider
A full central services restructure
Achieving complete compliance across all regulatory standards
Establishment of a fully encompassing asset management strategy
Re-focused concentration on the core care and support services
Maintaining high quality student accommodation
Further development of Social Enterprise and Fundraising
The Board has performed appraisals on all its Trustees, to determine the current skillset within the
Leadership, to ensure that it is best placed to lead the organisation during this challenging time, and
to address the issues relating to Governance. A number of long serving Trustees stepped down and a
number of appropriately skilled Trustees were added to the Board by way of co-option to fill the
skills gaps found during the review. In September 2015, the Board appointed a new Chair.
In response to the day to day running of the charity, in May 2015, a new Chief Executive Officer took
up post. The CEO is responsible for ensuring the Executive Team structure is appropriate to respond
to the priorities now facing Chapter 1. A new Finance Director was appointed to the team in July
2015, and a new Director of Social Enterprise was appointed in February 2016. These appointments
were made to ensure a robust and experienced team would be in place to manage the operations of
Chapter 1 effectively, and deliver the key deliverable of the Transformation Business Plan.
The Board prepared a detailed Action Plan addressing all issues identified by the HCA following the
downgrade, with the assistance of the professional consultancy firm, Altair, in line with its Voluntary
Undertaking issued to the HCA in September 2015. A Business Improvement Manager was
appointed to manage the process of review and implementation with the aim of becoming HCA
compliant. The work performed by Chapter 1 was further independently verified by Beever and
Struthers and Chapter 1 was found to be compliant against all regulatory requirements.
MAIN ACHIEVEMENTS 2015-16
Chapter 1 has promoted a culture of continuous improvement throughout 2015-16 as demonstrated
by the work that has been done to centralise and update key organisational processes. This work has
included a complete review and update of all organisational policies and procedures, creation of
service risk maps, introduction of a new IT support system and creation of a centralised system for
managing repairs and planned maintenance.
3
VFM has gained buy-in from staff and clients across the organisation. Information on Chapter 1’s
VFM is now included in our service literature and is referenced in key organisational documents such
policies as well as being part of annual service reviews. Chapter 1 has a dynamic and established
client consultation process including a National Forum, Cluster Meetings, House Meetings, regular
Client Surveys and Client Champions Awards. This consultation mechanism has been used to raise
awareness of VFM with our clients.
“Chapter 1 has promoted a culture of
continuous improvement throughout
2015-16”
As an organisation we work closely with
Stakeholders at all levels and share best
practice on how we do this within the
organisation.
Services have developed a Stakeholder Register and a ‘Pyramid House’ model is used to illustrate
their service and social impact
outcomes. These tools are now being
used for service promotion and in
“As an organisation we work closely with
tendering.
Chapter 1 has developed a Social
Return on Investment template and
has undertaken a pilot programme
within the organisation. The findings
from these can be seen elsewhere in
this document.
Stakeholders at all levels and share best
practice on how we do this within the
organisation.”
In addition to this, Chapter 1 has achieved every significant milestone laid out in its Transformation
Plan, on time or significantly earlier. This is described in more detail below.
1. The transfer of its general needs housing stock to another housing provider
The majority of the general stock was operated under private sector lease arrangements
(PSL), and as a major business division had actually been making losses for several years.
Chapter 1 made the decision to transfer all PSL stock to an established PSL provider. The
transfer was benchmarked against other offers
to ensure best value for the charity, and was
validated by independent advisors.
The negotiated solution has saved Chapter 1 a
potential End of Lease liability of £450k, and
bad debt arears of £150k.
The transfer completed on the 18 April 2016,
almost 1 year ahead of schedule.
For the year ending 31 March 2016, Chapter 1 generated a social dividend of £1.2m when
comparing the affordable rents charged to market rents.
4
2. A full central services restructure
The restructure commenced in the last financial year, following review of the following
departments;
£500k




Finance
ICT
Property maintenance
HR
The restructure, mainly looking at staffing and efficiencies has
generated savings in excess of £500k per annum. A significant
component of this, is the Asset Management Strategy which is
discussed below.
3. Complete compliance across all regulatory standards
Although this does not have a direct cost saving, the entire exercise has resulted in making
Chapter 1 a leaner, more efficient organisation, where all operations and controls are
centrally managed and reported. This has included an overhaul of all Governance policies to
ensure that the Board has efficient insight into operations, and adequate decision making
capability and opportunity in line with standing orders.
4. A fully encompassing asset management strategy
Chapter 1 embarked in preparing its first fully integrated Asset Management Strategy. The
strategy was completed in July 2016 and provides up to date Return on Assets, as well as
Social and Deprivation values, future investments costs against current economic value and
market potential.
The Board can use this strategy to plan its acquisition and disposal strategy, something it has
not previously been able to do. Key achievements are summarised below. This has the
potential to be a significant time for Chapter 1, as the organisation has now acquired the
skills and tools to drive value and benefit from Chapter 1’s assets to ensure the organisation
can continue to provide good strong support and housing services even within the
challenging financial and operational environment in which it operates.
5. Concentration on the core care and support services
Chapter 1 is recognised for the quality and innovation of its holistic and impactful led care
and support services.
Social calculators are used to determine the true extent of social value achieved in the
community as a result of the additional services Chapter 1 provides outside of standard
contractual services (wrap-around services).
5
Chapter 1’s Care & Support services are unique in that each one, regardless of whether the
service is Supporting People related or not, is tailored to the individual, responds positively
to the community in which it is based and achieved macro-economic benefit for wider
society.
Chapter 1 has also been successful in retaining contracts upon retender, including two which
relate to wider regions than served before, generating improved economies of scale.
Chapter 1 is keen to ensure that surpluses are fed back into services where possible and
supports the corporate strategy.
6. Maintaining high quality student accommodation
Chapter 1 has one student accommodation block, and a contract with Imperial College
London. The cost per room is well below the market expectation for London, but as this is let
directly to the University, Chapter 1 is able to operate efficiently and provide a full and
warmer experience to students, many of which are from abroad.
Chapter 1 is very proud of this service, and although there are no immediate ambitions to
extend the service, the relationship with the University and students is a valued one.
7. Social Enterprise and Fundraising
Chapter 1 is passionate about the sector in which it operates, and in particular the client
group it aims to reach. Its core purpose is to enable people to live independently within their
communities, but with access to help and support as and when they need it.
The sector is under significant challenge and supported housing in particular will be severely
affected should proposed cuts to LHA come into force in 2018 or 2019.
To ensure that Chapter 1 can continue delivering its services and reach the most vulnerable
in society it has commenced its revised and ambitious Social Enterprise strategy to open a
number of second hand / upcycle retail and waste site shops across the country. The new
Director of Social Enterprise and Fundraising has extensive experience in this field, and
providing the strategy goes as planned, Chapter 1 will generate sufficient surplus to match
any loss of LHA rents and supported people grants.
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OUR TENANTS – CASE STUDIES
SOCIAL RETURN ON INVESTMENT
Social Return on Investment (SROI) is an important VFM indicator for a charitable organisation such
as Chapter 1 with a social mission to help the vulnerable. Measuring the societal impact of our work
is a valuable element of our overall VFM assessment. Calculating SROI has been introduced to
Chapter 1 this year and is therefore still in its infancy. As such, this year’s VFM report measures SROI
based on individual case studies using the New Economy Manchester database as the basis of
calculation.
Social value can be seen throughout our report, for example through the furniture saved from
landfill by our Social Enterprise projects and through the widening of the services provided by our
Care and Support division. In 2016/17 we look to extend this across all services, with the aim of
developing a reliable method of calculating SROI for a service as a whole.
CASE STUDY 1 - KS
SOCIAL RETURN ON INVESTMENT – CASE STUDY 1: KS
Crime & Anti-social behaviour
 Domestic violence - average cost per incident (fiscal, economic and social
values)
Health (including Mental Health) & Wellbeing
 Average cost of service provision for adults suffering from depression
and/or anxiety disorders, per person per year - fiscal and economic costs
Social Care
 Child taken into care - average fiscal cost across different types of care
setting, England, per year - would have gone to care
Human and emotional costs based on 10-month stay
TOTAL SOCIO-ECONOMIC SAVINGS ACHIEVED
“Since becoming a resident of Chapter 1,
KS's confidence has increased and her
English has improved.”
1
£2,386
£977
£43,896
£8,295
£56,004
KS1 moved to the UK several years ago. She is
in her 30's and has a young daughter with
behavioural difficulties. They moved to the
refuge in early 2016 as KS had suffered
financial, emotional and physical abuse from
her husband. Since becoming a resident of
Chapter 1, KS's confidence has increased and
her English has improved. KS's daughter has
been referred to Family Support.
Tenants names have been replaced with fictional initials in all case studies to ensure anonymity.
7
KS is now on Income Support having not had any money when she arrived at the service. KS had
wanted to move back to the area she originally lived in the UK. This was initially refused by the
council, however following support this has now been arranged.
CASE STUDY 2 – PD
PD is a female, in her early 20's with severe
mental health difficulties and diagnosed with
Bi-polar type 2. PD had a Therapy dog which
she had to leave at her mother's home as
dogs could not be accommodated at the
service, but can visit.
“As her mental health has improved
so has her physical health”
PD was asked to leave the family home after a breakdown of the relationship and severe argument
with her mother. She ended up in a night shelter before being referred to Chapter 1. PD had been
sectioned and was in hospital 3 times prior to the family breakdown. On the last occasion she was in
hospital for 12 weeks.
PD was unable to manage her money when she moved into the service due to her mental health and
was unable to budget or make regular payments for rent etc. After attending a budgeting and
planning workshop run by staff she has now learnt preventative techniques to reduce her spending,
sell clothes on ebay and has a specific fund for when she has an episode.
With support from staff, PD is now receiving the correct benefits, is able to make regular payments
for rent and is currently saving towards a deposit and furniture for when she moves on. PD has
talked about how her Bi-polar affects her. Staff can recognise warning signs and PD has a good
relationship with her psychiatrist who is able to support her. PD now attends a Bi-polar support
group. She is more stable and no longer has episodes.
Due to her mental health PD could become reclusive when in the midst of difficulty and would not
eat, hiding away for up to 2 weeks at a time. She was encouraged to attend cookery classes at a
Chapter 1 service and get involved with other activities that would benefit her physical health.
As her mental health has improved so has her physical health - she eats regular meals, does yoga
and attends the local gym. PD has started a 6 module Dog Behaviour course. She has completed 2
modules so far and gained an A* in both. She has asked staff for help finding volunteer work and
plans to finish the course and pass her driving test by 2017.
PD has paid for this course herself.
PD now also has a better relationship with mother; she now recognises that her mother is anxious
and this can trigger her Mental Health. She regularly goes home Friday to Monday, which also gives
her the opportunity to spend time with her therapy dog, which currently lives with her mother.
PD would not have been able to manage a tenancy when she moved into the service. She has now
successfully completed the Tenancy Training course, has researched housing options and decided
that she wants to rent privately. She is currently working with estate agents in the area to find
somewhere suitable and affordable for both herself and her Therapy dog.
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SOCIAL RETURN ON INVESTMENT – CASE STUDY 2: PD
Housing & Homelessness
 Homelessness application - average one-off and on-going costs associated
with statutory homelessness
Health (including Mental Health) & Wellbeing
 Mental health inpatients, specialist services, hospital attendance - average
cost per bed day, all patients (adults, children and adolescents). £459 per
day.
TOTAL SOCIO-ECONOMIC SAVINGS ACHIEVED
£2,724
£19,278
£22,002
CASE STUDY 3 – KB
SOCIAL RETURN ON INVESTMENT- CASE STUDY 3: KB
Crime & Anti-social behaviour
 Anti-social behaviour - further action necessary
 Offender, Prison - Average cost across all prisons, including central costs
(costs per prisoner per annum) annual cost £34440, released from prison
6 months early on licence
Employment & Income Benefits
 Repaying: HB and DWP debt £12,000; Social fund £1,560; £600 court
fines
Housing & Homelessness
 Homelessness advice and support - cost of a homelessness prevention or
housing options scheme that leads to successful prevention of
homelessness
Health (including Mental Health) & Wellbeing
 Drugs misuse - average annual savings resulting from reductions in drugrelated offending and health and social care costs as a result of delivery
of a structured, effective treatment programme.
 Ambulance services - average cost of call out, per incident
 A&E attendance (all scenarios)
TOTAL SOCIO-ECONOMIC SAVINGS ACHIEVED
£2,019
£17,420
£14,610
£699
£3,727
£223
£117
£38,365
KB had been in care from 3 years old and had been severely abused sexually as a child caused
complex health needs. She had been within the criminal justice system since 13 with her first
custodial sentence at 14. KB has a child who was removed from her care aged 3 and placed with
family. Her child has experienced sexual abuse when in care.
9
KB was referred to Chapter 1 as an offender from
prison. Her licence condition stated that unless
there was appropriate accommodation, KB would
have to stay in prison for the remainder of her
sentence. KB held convictions for shop lifting, supply
of class A drugs, GBH and conflict whilst living in
shared accommodation. These offences had been
fuelled by her drug habit. Due to regular stays in
prisons, she had become institutionalised.
Furthermore, she owed debts to Housing Benefit a
DWP.
“Since moving into Chapter 1’s
supported housing, KB has
experienced the longest period
of stability in her life”
Since moving into Chapter 1’s supported housing, KB has experienced the longest period of stability
in her life. She has been able to clear the majority of her debts with one outstanding that will take a
further 5 years to pay. Three ASBO's have been completed and work with Persistent Prolific
Offending Officer finished within 4 months. KB was successful in maintaining conditions of her
licence, which has now ended.
With the support of Chapter 1, KB has been rebuilding relationship with daughter and now plays a
key role in her daughter’s life. KB has been clean of drugs for 6 months. She has addressed anger
management through meaningful activities like boxing and dog walking. Dogs visit the service
regularly and this was a key element in building working relationships with residents.
CASE STUDY 4 - GV
GV has been living in the hostel since September 2014 and is currently looking for move on
accommodation. Prior to moving into Chapter 1’s service GV was dependent on legal highs and
suffered from anxiety and depression. GV had been served notice and was facing homelessness due
to struggling with budgeting and accruing large debts. GV was keen on rebuilding her relationship
with her father that was strained due to drug misuse and was in an emotionally abusive relationship.
“GV has been
clean from
drugs since
February 2015”
Since living in Chapter 1’s hostel, GV has been working with Christians
Against Poverty on debt management and has put a savings plan in place,
pays her rent in advance and has developed good budgeting skills.
Working with a volunteer counsellor, GV has developed coping strategies
for her anxiety and depression. Furthermore, GV has been clean from
drugs since February 2015 following partnership work with the local drug
support agency, resulting in an improved relationship with her father.
GV’s confidence has soared, resulting in her terminating relationships
that had a negative impact. GV successfully completed Tenancy Training,
is working full time for the last 2 and a half months and is paying full rent
at the hostel.
1
SOCIAL RETURN ON INVESTMENT – CASE STUDY 4: GV
Employment & Income Benefits
 Job Seeker's Allowance - Fiscal and economic benefit from a workless claimant
entering work. Savings cost based on employment for the last 2.5 months.
 Housing Benefit - client working covers higher amount of fees based on 2.5
months working
Housing & Homelessness
 Homelessness advice and support - cost of a homelessness prevention or
housing options scheme that leads to successful prevention of homelessness
Health (including Mental Health) & Wellbeing
 Counselling services in primary medical care. Savings based on client using inhouse volunteer counsellor sought by Mulberry House team for 3 months.
TOTAL SOCIO-ECONOMIC SAVINGS ACHIEVED
£2,150
£1,000
£699
£676
£4,525
CASE STUDY 5 – DL
SOCIAL RETURN ON INVESTMENT – CASE STUDY 5: DL
Crime & Anti-social behaviour
 Domestic violence - average cost per incident
Employment & Income Benefits
 Job Seeker's Allowance - Fiscal and economic benefit from a workless
claimant entering work, part time work and maintaining claim. Worked for
last 3 months cleaning on 3 jobs. Estimate of JSA saved over last 3 months.
Housing & Homelessness
 Ongoing cost of temporary accommodation (B&B) whilst homelessness
decision made.
Health (including Mental Health) & Wellbeing
 Average cost of service provision for adults suffering from depression
and/or anxiety disorders, per person per year - fiscal and economic costs
Social Care
 Human & Emotional cost (DA stats) over 5 months
TOTAL SOCIO-ECONOMIC SAVINGS ACHIEVED
£2,836
£1,290
£365
£977
£4,147
£9,615
DL came to Chapter 1 having fled an abusive, controlling relationship. She needed somewhere safe
to go as the perpetrator had also been a close family friend and had turned her family against her.
DL was not allowed to go out on her own and the perpetrator controlled her finances.
“DL came to Chapter 1 having fled an abusive, controlling relationship”
DL is very focussed on getting herself sorted and did not want to be on benefits as she had always
worked. She now has several private cleaning jobs and is on JSA. DL has found a major issue for her
is that help with housing is available for people with dependent children, but not for single women
2
with no dependants. She wants to stay in the area and the Council have now offered help with a rent
deposit.
3
OUR STAFF
RESTRUCTURING
Due to the HCA downgrading Chapter 1, a number of key personnel changes were made within the
organisation to ensure that Chapter 1 was able to adequately tackle the governance and financial
management issues identified. These changes included the investment in new staff in key
management positions as well as utilising consultants with relevant expertise. As a result, Chapter 1
has been able to successfully tackle the issues raised by the HCA in their September 2015
downgrading.
STAFF SATISFACTION
Staff turnover for the period 2015/16 was 29.3%
(2014/15: 33.63%).
“the organisation’s staff are its
most valuable asset”
Chapter 1 affirms that, the organisation’s staff are its most valuable asset and 2015/16 saw the start
of the establishment of the Chapter 1 People for People Strategy. During 2015/16 the Chapter 1
Leadership conducted a Staff Satisfaction survey. The summary of the best and worst of the
responses are summarised below. Although there are a number of areas where Chapter 1 is planning
to improve in response to the staff survey, it should be remembered that the context of these
results is in the midst of a period of intense and sometimes demanding organisational change as a
result of the HCA downgrade and necessary improvements to the organisation.
The Chapter1 Leadership recognises that it can build from this base.
CHAPTER 1 STAFF SURVEY 2015-16
The below tables outline the top 10 and bottom 10 results of the Chapter 1 Staff Survey.
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TOP 10 RESULTS
I believe my manager is effective in managing,
supporting and developing me, including setting me…
77%
I feel supported in doing my job well
78%
I feel I am achieving the goals of my job
79%
I like working for Chapter 1
80%
As an employee, holiday allowance is important to me
85%
It is important for me to feel part of a community with
my fellow colleagues at Chapter 1
85%
I enjoy my job
85%
As an employee, flexible working is important to me
87%
I know where to find policies & procedures
89%
I have shared food practice with colleagues
90%
BOTTOM 10 RESULTS
I know who is on the Board of Trustees
28%
I would not change anything about my role
29%
I am satisfied with the pay I receive for the job I do
29%
I feel confident about my overall job security
I feel Chapter 1 has effective internal communication…
I would not change anything about my workplace
I am pleased with the career advancement…
I feel secure in my job
I find the intranet easy to use
I am satisfied with the job related training that my…
34%
34%
35%
37%
38%
47%
50%
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STAFF SICKNESS AND ABSENTEEISM
Chapter 1 has not had an efficient or effective Human Resources Information System (HRIS) in place
that has enabled the organisation to effectively monitor and collect data on short-term and longterm absences across the organisation. For the period 2015/16 there were 26 instances of long term
absence2 (2014/2015: 21 instances).
“give staff more access to their data,
Implementation of a new HRIS (Access
streamlining communications and
Select) began in the year and will be
providing an accurate, audited central
fully complete and rolled out in
2016/17. The system will benefit
record of all staff.”
Chapter 1 in many ways, removing our
inconsistent manual and paperintensive processes such as holiday and
sickness recording and establishing organisation-wide processes, giving HR greater overview in the
management of absence. Furthermore, the system will give managers more control over the data
held on their teams.
When full self-service arrives in April 2017, it will give staff more access to their data, streamlining
communications and providing an accurate, audited central record of all staff. Chapter 1 will also be
able to report directly against any data held on the system, such as the direct cost of sickness/staff
turnover.
Chapter 1 is also working to implement a recruitment module which will centralise and streamline
our recruitment processes and allow managers to request staff through the central system. We will
also be rolling out a Learning and Development Module enabling Chapter 1 to organise and manage
its Staff Development Programmes.
Finally, as the system is modular and highly customisable, it will be able to cope with a changing
organisation, or change of business requirement.
INVESTING IN STAFF – TRAINING AND DEVELOPMENT OPPORTUNITIES
Chapter 1 is an Accredited Training Centre for the Chartered Institute of Housing (CIH) and Ascentis.
Chapter 1 organises and delivers learning and development opportunities both centrally and locally.
During 2015-16, 83 courses were organised centrally and 103 local courses were attended by
2
Based on National Institute of Health and Care Excellence (NICE) guidelines that long-term sickness is absence
from work lasting four or more days.
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Chapter 1 staff. In total staff attended 799 training days during 2015-16. This is a 37% increase on
training days for the same period last year.
Approximately £100k was spent during 2015 -16 on
staff learning and development, which is on a par
with the previous year. This amount includes the
cost of learning events, staff time and travel and
means our staff training is now being delivered in a
much more efficient way, supporting Chapter 1’s
VFM objectives.
Chapter 1 is an Accredited
Training Centre for the
Chartered Institute of Housing
(CIH) and Ascentis.
Centrally organised courses focussed on the delivery of Chapter 1’s core business by:






Training staff in how to use our systems to record client data accurately e.g. Capita support
and QL.
Enabling staff to support clients based on their needs e.g. Linkwork skills.
Upskilling staff to deliver Tenancy training to clients to enable them to maintain their own
tenancy when they move on to their own accommodation.
Supporting staff to reflect and develop on how they work with clients e.g. CIH Level 3
Certificate in Supporting Homeless People.
Offering health and safety courses and refreshers to keep staff updated e.g. Emergency First
Aid at Work, Fire Awareness, Health & Safety Workshops for Managers.
Running Licence Workshops to ensure that Managers and staff fully understand the latest
legislation and are in the best position to support our clients.
Locally staff have taken up opportunities to attend both paid and free learning events relevant to
their specialism and area of expertise. These have covered a wide spectrum of courses from
CAFCASS Training, Suicide Workshops, and Financial Capability Training to a Legal Highs Workshop –
all enabling staff to better support our clients.
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Chapter 1 also invested in staff learning and development through:






The Learning & Development Journal – which all new staff are required to successfully
complete during their probation period
E-Learning – staff have access to over 150 E-Learning courses through Chapter 1’s E-Learning
provided by the Charity Learning Consortium.
The Staff Conference – a two-day
conference was held in October 2015 and
attended by 150 staff. This was an
“Staff have access to over 150
opportunity for staff from across the whole
E-Learning courses”
organisation to network, exchange ideas,
learn new skills and find out about the
future of the organisation.
Sabbatical – enabling Chapter 1 employees
(with a minimum of 10 years’ service) personal development opportunities outside the usual
confines of the job.
The Learning & Development Fund, which is an opportunity for staff to apply for funding
towards a course that will benefit their own personal development and the work that they
do at Chapter 1.
During 2015-16 Chapter 1 has trained up and supported staff to deliver courses in Capita
Support and Tenancy Training.
In 2016-17 our approach to staff learning and development will continue to be directly related to
business performance. Our priority areas include Management Development Training and Repairs.
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MANAGING OUR BUSINESS WELL
PROCUREMENT
VFM improvements were sought for all major IT contracts. The following cost savings have been
made:
Item
Encryption
Mobile phone data use
SharePoint licensing
Mobile Telephony
Intranet
Cost savings to date
Amount saved
£1,000
£3,647
£9,450
£20,400
£8,400
£42,897
Anticipated cost savings of £10-15k per annum are expected from August 2016 in relation to the
lone worker contract.
Social Enterprise has contributed to VFM in the year via reviewing procurement in a number of
areas. These are outlined below.
Mattresses for Xenia
WiFi
Mattresses for xenia were being purchased at a
cost of £50 from Gailarde, with additional sums
of £17 per single and £25 per double mattress
being charged to dispose of old mattresses.
Our wifi contract for student accommodation at
Xenia was renegotiated in the year, increasing
the reach and speed of the connection, whilst
reducing costs. Initially there was a cost for wifi
of £120 per room at 12mpb/s with access in
communal areas and limited access in
bedrooms with an additional sum of £14,800
quoted to install wireless service in all rooms.
Following discussions, we have negotiated that
the provider will install the cabling free of
charge, increase the speed to 100mpb/s and
reduce their annual fee to £105 per room over
the next 5 years amounting to a saving of 12.5%
per room per annum.
Following a review of procurement in this area,
we are now purchasing superior quality remanufactured mattresses from R&R Beds at
£50 including collection and disposal of old
ones. Additionally, the old mattresses are then
dismantled and remade into new ones,
reducing the environmental impact of disposal.
Nuneaton shop
Atherstone Food-bank and shop
We negotiated a lease on a shop unit in
Nuneaton. The landlord initially wanted to
charge £37,000 rent and £27,400 service charge
per year. We negotiated a rent and service
agreement for £15,800 per year for 3 years,
with a one year break clause.
This project lost £27,000 last year. We have
transferred the operation and the shop lease to
a Community Kitchen operator called
Eudomania and the one member of staff was
TUPE’d across. This will result in a major
improvement in the profitability of our
remaining Nuneaton operations and free up the
van for 1.5 days per week to support new shop
operations.
9
BENCHMARKING
Below, the organisation sets out the 2015-16 financial performance data and the VFM gains in our
Self-Assessment.
Key Performance Indicator
Number of lettings
Average re-let times
Rent collected – supported housing
Current arrears – supported housing
Former arrears – supported housing
Void losses – supported housing
Emergency repairs completed within
target
Urgent repairs completed within target
Routine repairs completed within target
Agency staff costs as % of payroll
SP block grant income as % of turnover
Operating costs as % of turnover
Chapter 1
2015/16
Chapter 1
2014/15
1,535
11.1 days
99.4%
6.95%
6.36%
7.09%
100%
1,602
12.5 days
98.8%
7.8%
3.9%
10.7%
92.7%
Peer Group
Median*
2013/14
483
18 days
96.62%
6.37%
1.55%
6.75%
97.7%
100%
80.4%
6.66%
19.78%
97.83%
89.6%
94.8%
4.64%
23.67%
100.5%
96%
92%
5.98%
13.33%
93.54%
* Source: Housemark
CHANGE MANAGEMENT PROJECTS
It has already been described above, that over the last 12 months, since Chapter 1’s regulatory
judgement, down grading it to V3 / G4, there has been a tremendous activity, in line with the
Corporate Transformation and the Change Management Plans established to return the organisation
into a compliant entity.
The table below summarises some the benefits achieved and savings in the process;
Project title
Project scope
Project status
Savings
Risk Register
To develop an integrated risk register
managed by the Audit and Risk
Committee. The Register must also be
integrated and part of the Financial
Regulations document, and therefore
fully implemented throughout the
organisation
Complete
Not directly
applicable, but
increases internal
controls throughout
Legal Registers
Implementation of Legal Actions
Register, and central procurement to
ensure value for money for relevant
savings
To develop a formal reporting process
and suite of accurate reports to reflect
Chapter 1’s financial position.
To enable all departments to monitor
and review performance against agreed
KPIs.
Postponed,
recommence in
October 2016
Not yet quantifiable
Complete
Not directly applicable
but will result in
increased
management
performance
Financial
Reporting
Timetable
10
Rent Project
Property
Management
Financial
Authority &
Standing
Orders
People Strategy
Finance Team
Restructure
PSL Scheme
Appraisal
Numerous issues with rent life cycle
requiring complete overhaul
Chapter 1 has not been adequately
resourced to properly manage its
property portfolio and the increasing
regulatory demands placed to ensure
safety and quality.
Property Management is a significant
project and covers a number of areas;
Day to day repairs
Operating systems
Approved supplier lists / review
Compliance
To ensure adequate approval for
expenditure and decisions
Chapter 1 does not have an effective
People Strategy, and therefore is very
risk averse when managing employee
situations
Restructure seeks to ensure that team
is fit for purpose, all tasks are
performed and reporting is accurate
and useful in order to manage and lead
the business.
Review is to identify options available
to Chapter 1 in order to generate
maximum value to the organisation
Complete
Not yet quantifiable
Complete
Staff savings of £97k
Reactive repairs
reduced by 31%,
annualised to £132k
Negotiation on
compliance contracts
savings in excess £25k
Complete
Started, due for
completion 31
March 2017
Complete
Complete (transfer
to another provider
Saving on Property
Consultant £20k
Not directly
applicable, but
increases internal
controls throughout
Not directly
applicable, but should
enhance productivity
through motivation
Not directly
applicable, but
increases internal and
financial controls
throughout
Potential EOL
liabilities of £450k
Potential FTA
liabilities of £150k
Assets and
Liabilities
Register
VFM
Monitoring and
Reporting
VAT/tax
structure
efficiencies
Contracts
Review
To develop a centralised register
encompassing all property assets and
liabilities, alongside all other material
assets and liabilities (i.e. contracts).
To develop adequate processes to
ensure that Chapter 1 is VFM
compliant. Despite the fact that VFM is
active in many areas, Chapter 1 was not
able to demonstrate this effectively.
Reviews were required to determine
whether:
- Chapter 1 can reclaim any historic
VAT
- what percentage of VAT be reclaimed
going forwards on operations
- value in the use of the trading
company, taking into account the
growing social enterprise and
commercial arm
Chapter 1 has not in the past
maintained a central register for leases
or contracts held for services or
products. A detailed register is required
Complete but
continually
improving
Complete but
continually
improving
Not directly
applicable, but
increases internal
controls throughout
Expectation of
improvements ongoing
Claims in progress,
one relating to
hostel VAT recover,
development VAT
and ongoing efficient
VAT structures
Active claim;
£1.2m hostel claim
£300k development
Ongoing savings;
£120k per annum.
This has been
completed alongside
the Asset & Liability
register project. All
Not directly
applicable, but
increases internal
controls throughout
11
Operating and
financial
systems
IT
Infrastructure
Policies and
Procedures
Internal Audit
Finance policies
and procedures
Purchase ledger
procedure
review
External
reporting
register
Declassification
of PSL units
to ensure negotiation occurs on
contract review and where possible
batch ordering to obtain beneficial
rates
A detailed and all-encompassing review
of all systems used by Chapter 1. Early
review has suggested that systems in
place are expensive, inappropriate and
do not deliver what Chapter 1 requires.
An early review of IT showed that it was
inadequate, not fit for purpose and was
detrimental to Chapter 1 and its core
services. An IT strategy was developed,
concentrating on data security,
outsourced provision, efficiency and
ease of use. Project will look at all IT
related services, including telephony,
security, support and general service
communication
To centralise management of all policy
and procedure documentation, with
version and date control.
High risk policies to be reviewed
annually by the board, including
treasury management, Health and
safety, safeguarding, IT security and
data protection.
Re-install internal audit firm and ensure
findings are appropriately managed and
actioned.
Following the new internal control
review, reporting timetable and finance
restructure, all policies and procedures
required review and update
accordingly.
The current PL procedure is manual,
cumbersome, open to error, delays and
issues, and does not take advantage of
simple technology. There is also no PO
or WO procedure.
An entire review of the system is
required to ensure operational
efficiency, control and internal
customer service.
Implement a register to track all key
reporting dates to ensure no delays.
Complete project to de-register the PSL
units if considered appropriate to do
so.
data is held in one
centrally maintained
source.
Scheduled
for
November 2016.
Not
directly
applicable,
but
increases
internal
controls throughout
Complete,
and
review underway.
Investment
necessary to upgrade
at site.
Third party contract
savings of £43k.
Complete
Not directly
applicable, but
increases internal
controls throughout
In place and on
going
Not directly
applicable, but
increases internal
controls throughout
Not directly
applicable, but
increases internal and
financial controls
throughout
Complete
Not yet started. To
be integrated with
full systems review
to commence
November 2016.
Complete
See PSL scheme
appraisal above.
Not directly
applicable, but
increases internal
controls throughout
As above
12
New budget
process and
templates
The current budget process does not
serve the organisation. A suitable
timetable, plus workshop is required in
conjunction with new templates and
mechanisms for improvement.
Process to
commence 1
December 2016.
Not directly
applicable, but
increases internal and
financial controls
throughout
13
SOCIAL VALUE
CASE STUDIES
Preston Contact Centre: Casper
Through our long standing work and
recognised research, Chapter 1 acknowledges
that children are often adversely affected by
their parents’ separation process and this in
turn affects their physical and emotional wellbeing, impacts upon their own personal
futures and their ability to learn and
successfully develop relationships.
“Chapter 1 acknowledges that
children are often adversely affected
by their parents’ separation”
The concept is based upon the Kubler-Ross Loss Cycle which looks at emotional regulation and is the
normal range of feelings experienced when dealing with change. It was decided that this principle
could be delivered in a child friendly way.
A script has been created which integrates key elements of learning and is presented as a child
friendly approach to real situations that children encounter when their parents separate.
Animation was thought to be a great means of retaining the child-centred approach with the benefit
of having a resource that can be easily replicated and has extensive ‘selling’ opportunities.
In partnership with UCLAN’s animation team the first episode of ‘Jessie’s Story’ has been brought to
life in an animation. A further 4 episodes have yet to be created and this will then be distributed as
a full resource together with activities for children and resources to help parents recognise the
important messages delivered throughout the animation.
SUPORT: Breaking the cycle of homelessness
“a range of
activities
designed to help
homeless clients
progress towards
independent
living”

SUPORT programme works with ten of our centres across England. It
involves a range of activities designed to help homeless clients
progress towards independent living, and most importantly, be able to
maintain this independence in the long term (so breaking the cycle of
homelessness that so many experience).
The difference the programme makes:
 Increase contact and build greater trust with support workers, so
assisting them to better plan their futures and address personal
issues.

Gain qualifications which will increase their employability and so
improve their chances of progressing onto independent living.
Develop improved social and personal skills, through increased social contact with others.
14

Gain in self-esteem, by supporting and leading
sports sessions in the community,

Have better awareness of the importance of
personal health in relation to independent living
Overall the programme has decreased client long term
dependency and improved the chance of successfully
living independently in the future.
“the programme has
decreased client long term
dependency and improved
the chance of successfully
living independently in the
future”
Suport consists of 3 elements:
1) A health and wellbeing workshop: Targeted at participants with poor health,
and poor eating habits. It consists of a 3hr workshop teaching clients the
importance of healthy lifestyles and personal health in order to move to
living independently. This will be followed by informal weekly catch ups with
our project workers, and monthly check-ups to gauge progress.
2) Pop-up sports: Informal weekly sports sessions. These will be 1-on-1 and
group sessions with clients and our support workers in sports such as
Trivolle, Boules, and Table-Tennis (requiring little equipment or space).
These will be an alternative to client support meetings, with informal
support provided in personal development and action planning. Clients will
also take Sports Leader qualifications, and Activator courses, and over the
year will lead sessions, arrange tournaments, and put together a newsletter.
3) Doorstep sports: Sports activities in the local community, with clients and
other homeless people involved. Clients will assist with leading sessions and
undergo relevant workshops. The sessions will allow staff to maintain
contact with clients when they move to living independently, enabling them
to continue accessing support and guidance.
The programme has received funding from Comic Relief for the sum of £49,230 with a start date of
January 2017 and is delivered as a ‘wrap-around’ for traditional Care & Support activity.
2nd Chance Furniture
In May 2016, 2nd Chance Furniture team were declared the national winners of the 2016 Best
Community Recycling Initiative at the Let’s Recycle awards. The event was held at the Landmark
15
hotel in London and pit 2nd Chance Furniture against leaders in the waste reduction field from all
over the UK.
“National winners of the 2016 Best Community
Recycling Initiative”
2nd Chance Furniture is well known locally for selling a wide range of good quality second-hand
furniture and other household items, primarily to those on low income whilst offering discounts to
those on means tested benefits. The award was for its work across its three sites. The Nuneaton
superstore is in its 10th year of trading and 2nd Chance in Atherstone runs the largest foodbank in
Warwickshire in partnership with North Warwickshire Borough Council. In partnership with
Warwickshire County Council and FCC environment the re-use shop at Judkins waste site has also
diverted a huge range of items from landfill.
16
ENVIRONMENT
Chapter 1 is committed to minimising the impact of its activities on the environment. To achieve this
Chapter 1’s approach involves:




Minimising waste by evaluating operations and
ensuring they are as efficient as possible;
Actively promoting recycling both internally and
externally amongst its clients and suppliers;
Sourcing and promoting products aimed at
reducing their environmental impact;
Meeting government targets of reducing CO2
emissions.
“Chapter 1 is committed to
minimising the impact of its
activities on the environment”
Examples of the above can be found in our Central Office/Student Hostel refurbishment where
Chapter 1’s energy efficient improvements include a solar thermal hot water system which has
resulted in a reduced carbon footprint and savings on our energy costs
Chapter 1 has a number of social enterprise schemes that provide significant environmental impact,
such as 2nd Chance, a furniture recycling store, recycle shop on a council estate, and a food bank.
2nd CHANCE
2nd Chance comprises of a furniture re-use outlet, and a Re-use shop based at the local HWRC waste
site.
We strive to ensure that no one goes without the items they need to make their house into a home.
We seek to make all goods affordable to those on low incomes by offering a substantial discount to
those experiencing hardship. In 2015/16 the two Furniture Re-use outlets collected, refurbished and
sold 165 Tonnes of furniture, bric-a-brac and electrical items that would otherwise be destined for
landfill.
As well as collecting from members of the public, we work closely with the
FRN, to support IKEA with their takeback scheme which is collected on a
weekly basis, assessed for suitability and prepared for resale. At present we
have a re-use rate of 51% and any mattresses unfit for purpose are
deconstructed and recycled.
165t
saved from
landfill
In partnership with Warwickshire County Council and FCC environment we
now operate a re-use shop at the Judkins HWRC waste site. We have diverted a huge range of items
from landfill, with FCC and Chapter 1 staff and volunteers working alongside each other to inform
and direct the public at the site whilst spreading the re-use message. 2015/16 saw an increase in
tonnages re-used from 68T in 2014/15 to 138T.
17
“We seek to encourage and
educate our volunteers
about the value of re-use
and re-cycling”
We seek to encourage and educate our volunteers about
the value of re-use and re-cycling through not only our day
to day activities but also through training workshops open
to the public ranging from energy efficiency, composting
and upcycling. Chapter 1 accepts and recycles ink jet
cartridges with any income going towards supporting its
charitable purposes.
In 2016 we set up a washing machine testing bay to further
increase the volume of white goods that we are able to
divert from landfill.
Plans for 2016-17 include greater community outreach, the set-up of a Community Repaint scheme
and the opening of a further 6 outlets.
2nd Chance is an accredited Furniture Re-use Network, Approved Re-use centre (ARC) member.
Chapter 1 is a recognised with the Social Enterprise Mark and were the National winners of the Let’s
Recycle 2016 Best Community Recycling Initiative.
18
ASSET MANAGEMENT
OUR ASSETS
Chapter 1, by virtue of the type of service it provides to a number of client groups, can categorise its
assets in a number of ways;
SERVICE BREAKDOWN
Supported
Housing
32%
General Needs
56%
Students
10%
Care Homes
0%
Affordable
Rent (GN)
2%
BUILD TYPE
Purpose
Built
5%
Converted
36%
Other (PSL)
59%
19
Service
Turnover
£’000
6,030
125
1,431
8,964
1,956
General Needs
Care Homes
Student
Supported Housing
Other support & social
enterprise
TOTAL
This table summarises income by
service type. Supported housing
accommodation, representing
31% of total units, generates 48%
of income
18,507
Lettings during the year:
Total number of
lettings
General needs
552
Sales to other
24
Total sales
24
Supported housing
983
Newly built rental accommodation, built
by or for the RP
Units transferred to the registered
provider for rent
30
Total stock acquired during the year
98
Total
1,535
68
RETURN ON ASSETS
Key financial ratios
2016
2015
2014
1.3%
(1.6%)
(1.7%)
Operating costs per home inc SP (£)
11,374
11,368
11,813
Operating costs per home exc SP (£)
9,236
9,183
8,971
181
(194)
(506)
Return on assets
Operating surplus per home (£)
ASSET MANAGEMENT STRATEGY
We aim to make the most efficient use of resources when investing in or divesting of our stock. A
decision was made in the year to divest our PSL portfolio as it was loss-making. This consisted of the
transfer of 829 leases and occupancy agreements for a consideration of £1, even the portfolio
20
represented negative NPV. The transfer has also resulted in the removal of potential end of lease
liabilities and former tenant arrears totalling. This has enabled Chapter 1 to focus on the core
provision of care and support services, alongside social enterprise to provide additional financial
support to the former.
The most important piece of work that Chapter 1 commenced during the last financial year was its
Asset Management Strategy. This piece of work encompassed a great deal;
1. Centralising the repairs and maintenance function to ensure management of quality, budget
and approved suppliers
2. Ensuring compliance across all properties
3. Completing a fully encompassing Asset Management Strategy
Chapter 1 has now completed all parts of this project.
All of this has now been achieved, and Chapter 1 can legitimately state that it has an asset
management strategy amongst the best in the Sector. The achievements are summarised
below;
21
LOOKING FORWARD – 2016-17 PLAN
Chapter 1 will continue to promote a culture of continuous improvement building on the work from
last year.
We will ensure that the tools developed as part of our review of the VFM 2015-16 statement are
regularly reviewed and updated to reflect the changing environment we work in.
The Social Return on Investment pilot will undergo a final review and will then be rolled out to all
services across the organisation. This will enable us to analyse in more detail the Value for Money
we are delivering to clients.
2016/17 Pledges
Organisation
To continue with our Transformation Plan
Procurement
Continue to renegotiate contracts as they fall due, seeking more favourable terms and
improved services where required
Asset
Ensure integration of the Asset Management Strategy throughout the organisation
Management
Tax
To successfully pursue our claim for a VAT rebate from HMRC
Organisation
Strive for best practice in all areas of the organisation
Governance
Complete all Central Projects ensuring HCA compliance
Governance
Continue to monitor and amend Policies and Procedures in line with best practice where
required
Care &
Support
Retain all Care and Support services up for renewal and continue to be successful in bids
for new contracts
Social
Enterprise &
Fundraising
Successfully roll-out the new Social Enterprising & Fundraising strategy, providing
additional income to subsidise Care & Support services in light of Government cuts.
HR
Continue with the development and subsequent roll-out of the People Strategy
HR/IT
Full implementation of the new HRIS (Access Select)
22