Report of the Board of Management

The Board of Management presents its report and audited financial statements for the year to 31 March 2006.

Constitution

Greenoak Housing Association Limited (formerly Pinecroft Housing Association (SE) Limited) is a registered Industrial and Provident Society with the National Housing Federation's 1977 model rules for Charities.

On 1 July 2004, Pinecroft merged with Second Achilles Housing Association, and we then changed our name to Greenoak Housing Association in August 2004.

The annual statements to 31 March 2006 therefore represent the first full year of the merged organisation.

Principal activity

Greenoak's principal activity is to provide, manage and maintain high quality housing at affordable rents.

In accordance with our mission statement, we 'respond to the housing needs of the community, continuously improve services to a high standard, and promote sustainable communities.

Ian Phillips with residents at Apollo Place

Review of the year

The provision of affordable housing to rent, energy efficiency and condition of existing stock remain our priorities. We are preferred partners with five Local Authorities. Over the last 18 months, we have completed two eco homes excellent, fourteen in Woking and a rural scheme of twelve near Guildford. These developments were part funded by social housing grants and loan finance from the Nationwide Building Society. This year we have been awarded grant funding from the Housing Corporation through the Specialist bidding route for 12 houses in Storrington, near Horsham, where we are also undertaking a development on behalf of the local authority of 12 flats. We are also a preferred development partner with Mole Valley.

We have been successful in our bid for an Innovation and Good Practice grant to evaluate our eco homes plus model and disseminate good practice. This is due to be launched in October.

Our operating surplus for the year before interest charges was £331K compared with £154K the previous year, and after interest, a surplus of £172K compared with £60K in 2005.

Current and Future Operations

As a small operator in an environment where larger associations are getting larger, we specialise in producing new housing to the highest standard, especially in rural areas where we feel we can work well with local communities. Our status as a Specialist developer able to bid for Housing Corporation funding is crucial to this role.

Having completed our first two eco homes excellent schemes, we are continuing to evolve our eco homes model with a third scheme, this time with Horsham District Council in Storrington, West Sussex. This is linked to an Innovation and Good Practice Grant project to evaluate the model and disseminate good practice. Involvement of our residents is an integral part of the process.

We are continuing to seek partnership opportunities with other associations so that we can achieve continuous improvement in our efficiency and effectiveness and continue to develop our eco homes plus model.

Our Woking, Goldsworth Road office provides administrative and housing management services. Technical services are provided from our nearby office in St Johns, where our direct labour team are based.

We have recently contracted with Woking Borough Council for them to provide an out of hours emergency call service locally.

Quality and efficiency

We are members of a benchmarking group, SHAPE (Smaller Housing Associations Pursuing Excellence) and this enables us to collaborate, exchange examples of good practice and jointly commission services.

In benchmarking against each other, members are able to focus on areas to improve. In comparison with the sector in general, members' performance has compared well.

We also have an annual joint staff conference for training and networking. Our last conference was on efficiency and this year will focus on sustainable communities.

We were assessed as satisfactory in all areas of our support services by Supporting People teams in East Sussex and Surrey. Our contracts were successfully renewed.

Key financial strategies and policies

The key financial strategies and policies are as set out below:

Development and finance strategy

The provision of affordable housing to rent, energy efficiency and condition of existing stock remain our priorities. Resources continue to be directed at our development programme including bringing schemes through the planning and design stages in our areas of operation in Surrey and Sussex. We work in partnership with four Local Authorities to provide social housing, and also manage retirement leasehold schemes in two further Local Authority areas.

Long-term maintenance

The condition of our stock has been reviewed and a programme set for the future, to ensure that we continue to re-invest to maintain high quality homes that are energy efficient

Kirsty and Jordan

New developments will be funded by social housing grant and loan finance with the remaining finance being contributed by Greenoak from its own funds.

Reserves

Our reserves are held to finance new development and to re-invest in our existing housing stock.

Rent policy

Most of our properties are funded by social housing grant which enables us to charge affordable rents. We are working towards rent convergence as required by the Housing Corporation. This will in time result in rents for similar properties being broadly similar in each locality regardless of the social landlord. Under rent restructuring, rents should change each year by no more than 0.5% above RPI (retail price index) plus or minus £2 per week. Support services that would have previously been met through Housing Benefit are now met through Supporting People contracts.

Residents move into Normandy homes

Property disposal policy

Greenoak also owns properties acquired without social housing grant. These are let at below market rents and these allow us to house more families and single people. Our policy allows disposal of these properties where needed, to assist in funding grant-aided housing.

Value of properties

The housing properties of the Association are included in the Balance Sheet at over £10m. They are estimated to have a value in excess of £15M, based on existing use value (social housing) for grant-aided housing, and on open market value (subject to tenancies) for other properties.

Loan funding

We currently have an undrawn facility with the Nationwide Building Society of £1M.

Staff development and welfare

Staff members have annual performance reviews and they are encouraged to achieve their potential through external courses and internal training.

The health of our employees is important, and we make available health screening for all staff at our offices each year and enable free eye tests. We continue to provide two pension schemes with The Pensions Trust.

Adrian Buffery presenting Eco Homes Plus

Governance

Greenoak's Board recognises the importance of robust governance and has followed the NHF's Code of Governance. This was reviewed following the publication of the new code. Members undertake an annual appraisal of individual and collective performance.

Details about the Board members and their qualifications and experience are set out in this report together with length of service.

Board selection procedure:

An annual review takes place of the composition of the Management Board ensuring the continuing compliance with equal opportunities with particular regard to the following:

balance of skills required to meet corporate objectives
adequate representation by tenants and
representation of the community we serve

Advertisements are placed when vacancies occur, and at least every three years in local and national publications with the objective of recruiting at least two new members.

Three new members have been co-opted during the current year. No upper age limit or maximum length of service are set, but are addressed as part of individual performance appraisal.

The maximum term of service for the Chair is set at three years. Copies of the policy and procedures are available on request.

Board of Management

The Board of Management currently consists of twelve members as listed on page 1.

Board Members' length of service at date of report:

Ian Phillips 8 yrs
Charles Thorne 8 yrs
Gill Baker 12 yrs
Robert Mills 8 yrs
Franco Cirillo 1 mth
Laraine Phillips 3 mths
Bryn Edwards 3 mths
Stephen Horn 3 mths
Nashat Kotani 1 yr
Jean Usher 8 yrs
Vicki March 7 yrs
Tony Usher 11 yrs

Associated Greenoak Organisations

The Association has a relationship with the following organisations which are not subsidiaries:

Greenoak Community Focus Limited
Pinecroft Cost Sale Homes Society (Eastbourne) Limited
Eastbourne residents' summer Party

Eastbourne residents summer party

We have a management contract to manage the housing schemes owned by the other organisations, including the Trustees of The Retreat, Loxwood, a registered Charity.

The Report of the Board of Management was approved on 12 September 2006

Ian Phillips Chair
4 October 2006

The Retreat, Loxwood

Eastbourne Resident's 100th birthday

155 Goldsworth Road
Woking
Surrey GU21 6LS
Tel: 01483 747900
Fax: 01483 757654
www.greenoakha.org