In Depth Assessment Pilot at St Vincent’s Bolton at Home 17/03/16

Background – why did we do it! The IDA journey The major themes Our thoughts on the process The outcomes and beyond

Our Pledges

IDA – The Journey Volunteered as a Placeshaper – 1 of 2 RP’s in the pilot Learning opportunity Lots done on stress testing Began process February Scoping meeting February

IDA – The Journey Extensive document list requested Board meeting attended Follow up meeting Team of 4/5 at HCA Lots of interaction & further info requests Feedback meeting in June

Themes - Risk Risk appetite Risk plan – is it robust Golden thread through business Board governance around risk Market risk analysis Risk triggers

Themes - Risk Diversification risk Subsidiary risk & liabilities Cross-group liabilities Risk plan monitoring Exit strategies Exposure to cuts

Themes - Governance Structure Lots of focus on skills Detail of any reviews Who is making decisions? Compliance with code

Themes - Governance In depth review or papers Relationship with subsidiary board Governing documents Committee structure and skills Effectiveness Attendance and contribution

Themes – Treasury/Finance Gearing Loan documents Headroom Covenants Stress testing & scenario analysis – multi variant Deep dive into business plan

Themes – Treasury/Finance Reconciliation year on year with FFR Funding position Development cashflow Comparison with 1/4ly return & other business docs Recent letters on data accuracy

Themes – Stock Condition Global accounts – spend per unit Stock condition data Aligned with business plan 100% survey 2015 Understanding assets – NPV etc.

Themes – Corporate Plan/Performance How was it derived How is it measured Actions by the board Golden thread Link to KPI’s Strong reporting

Themes - Development Reconciliation of AHP bid with returns Assumptions – understanding committed & non- committed Exit strategies – costed Contractual risks

Themes – Assets/Liabilities On a journey Resource intensive Focus on liabilities within the A & L register Include all liabilities including contracts and obligations

What Next for VFM?

Thoughts on the Process Read across board papers, strategy day papers and other business documents Validating our claims, e.g. 10% saving made on VFM – how was this done and measured Risk management & exit strategies e.g. supported housing risk

Thoughts on the Process Don’t underestimate the time requirement Lots of opportunity for contextual discussion and explaining/sharing more detail on themes Document requirement is extensive Focus on liaison with CEO/FD

Thoughts on the Process Proportionate approach tailored to the organisation – well calibrated Focussed on whole business then a deep dive Interactive, helpful learning opportunity Used as a catalyst to take a good look at the business

Outcomes No Regulatory Judgement – maintained V1/G1 No major findings but: 100% stock condition survey results Risk monitoring at board level VFM monitoring and compare with targets

Outcomes Performance - monitoring / benchmarking Stress testing – deflation/further cuts etc Some board papers needed further detail Board skills and recruitment journey Golden thread from plans, targets & budgets

Outcomes Recognised strengths – good grip on the business Good understanding of where we are and our work on future strategy No room for complacency – operating environment is tough……..

Sector Risk Profile Just when you thought it was all over….. New/increased risks following our IDA Right To Buy £12 bn welfare cuts Rent decreases GM Devolution LHA Cap

Thank you Any questions?