History & Background
Legal status and constitution.
The Association is registered with the Registry of Friendly Societies under the Industrial and Provident Societies Act 1965 (registration number 21033R) and with the Tenant Services Authority under the Housing Association's Act 1985 (registration number L0249). The Association is an exempt charity and operates under the National Housing Federation Model Rules 2005. Standing Orders and Financial Regulations are reviewed on a regular basis.
The Association has a fully owned subsidiary Arcon Developments Limited that is registered under the Companies Act.
Brief History
The Association was formed in 1972 as Arcon Housing Association (Cost Rent) Limited and changed its name to Arcon Housing Association Limited in 1975. From then to the present date the Association has built over a 1,000 properties in Greater Manchester and 250 properties in Wales that were subsequently transferred to locally based Associations. Approximately 75% of the Association’s property portfolio is new build and 25% refurbished properties.
For the first twenty years the Association was managed by Wheeler Wood & Redmond, a firm of chartered surveyors. In the early 1990’s the operations were transferred in-house and continuity was maintained with partners and staff of Wheeler Wood & Redmond being appointed to positions with the Association. Consequently, the Association is in the fortunate position of being able to draw on experience that goes back over 30 years.
The main period of development was from 1975 to 1988 and activity in the 1990’s and 2000’s has centred round specialist housing, market rent and shared ownership schemes that have been funded out of reserves and by loans. Through the Northern Lights Group the Association has since 2007 recommenced developing properties with the aid of Social Housing Grant.
Housing Stock
The Group as at 31st March 2010 managed 1,069 properties. These consisted of 945 social housing properties for rent of which 231 are refurbished terraced houses. The Group also partly owns 25 shared ownership properties and 38 units of accommodation that are used for special needs purposes and are managed for the Association by means of lease arrangements. The Association also manages 27 market rent properties owned by its subsidiary Arcon Developments Ltd as well as 16 properties for the Fairfield Moravian Housing Association and 18 properties for 2 Almshouses for which it also acts as trustee. As at 31st March 2010 the Association had in development a grant funded scheme for 9 flats to rent in Stretford and a site in Eccles with planning permission for 6 houses.
The Association leasehold manages 53 properties purchased under the Right to Buy legislation.
Office Premises
The Association moved offices in 2008 from 1 Jacksons Row to 12 Lloyd Street Manchester M2 5ND. The move was made at the request of the Association’s landlord as they wish to rationalize and refurbish the Jackson’s Row building. Bruntwood have paid the Association’s relocation costs as well as a premium for surrendering the lease for Jackson’s Row. The new office space is slightly larger and the lease terms remain the same with a 15 year term, tenant break clause after 10 years and 5 yearly rent reviews that are linked to the retail price index. The office at 4,287 square feet meets the Association’s present and future space requirements and is fully accessible to the disabled.
Shareholding Membership
The Association’s shareholding and tenant associate membership policy distinguishes between tenant shareholding members and ordinary shareholding members.
All tenants are eligible to be tenant shareholders and those interested in participating in the management of the Association are encouraged to attend tenant forums at which tenant committee members are elected.
Ordinary shareholding members apply to the Association for admittance and if accepted by the Board, hold a £1 share in the Association. The purpose of ordinary shareholding membership is to provide an active pool of people who have expressed an interest in the Association and from whom new Board/Committee members may be drawn. Membership also allows the Association to enhance its accountability to the communities in which it operates.
Ordinary shareholding members have ultimate control of the Association as they have the power to appoint the Board and to change the rules of the Association subject to certain constraints. All members are invited to attend the Annual General Meeting of the Association which is held within 6 months of the end of each financial year (31st March). It is a function of the Annual General Meeting to receive the Annual Report, to appoint the Auditors and to elect Board members.
As at 31st March 2010, there were 31 shareholding members.
Board of Management
The work of the Association is governed by a voluntary Board who are elected by the members of the Association at the AGM. The term of office is 3 years with one third of the membership retiring and subject to re-election each year. Casual vacancies occurring between AGMs can be filled by the Board and in addition the Board may appoint co-optees to serve on the Board on such terms as the Board resolves. The Board shall consist of a minimum of 5 Board members and a maximum of 12 including co-optees. The Association has decided for the present not to make payments to its Board members.
The Board’s role is to determine the strategic direction and policies of the Association and monitor its performance. The Board is reviewing its meeting cycle and plans to meet 6 times a year or more frequently if circumstances require. There are also 3 Committees of the Board that have been established to consider the work of the Association in more detail. In addition 2 Committees exist to challenge and improve the accountability of the Board and management team.
- Finance Committee—responsible for financial issues.
- Business Development Committee—responsible for business development.
- Housing Management Committee—responsible for landlord and tenant matters and other relevant issues.
- Audit and Risk Management Committee—responsible for audit, internal control and risk management.
- Tenant Scrutiny Committee—responsible for service reviews and the establishment of tenant lead self regulation.
Each Committee meets according to its own cycle and chooses its composition and makes decisions on matters according to their own terms of reference.
It is the Association’s aim to recruit new Board members on a continuous basis and to identify new Board members with appropriate skills and experience.
Collectively, the Board should possess the qualities required to decide policy and procedure and monitor performance. In particular Board members should have skills and experience in the areas of local housing needs and markets, customer service and the needs and concerns of residents, property management and maintenance, general business skills including IT and personnel management, finance and accountancy, equality and diversity, working with communities and Local Authorities, development and building and strategic planning and risk management.
Every year the Board reviews the effectiveness of the way it operates and whether the Board collectively has the above skills and experience. At 31st March 2010, the Board consists of 12 members of whom 4 are women and 3 come from minority ethnic backgrounds. In addition there are currently 2 Committee members of whom 1 is a woman.
The Board of Arcon Developments Limited currently comprises 4 people of whom 2 are Board members of Arcon Housing Association.
Staff Structure and Organisation
At 31st March 2010, the Association had 24 members of staff of whom 5 were part-time. 10 of the staff are women and 2 come from minority ethnic backgrounds. Management services are provided to Arcon Developments Ltd by Arcon Housing Association by means of a management agreement.
Controls Budget, Accounting Systems and Records
The Rules of the Association define the activities of its governing body. In addition, delegated powers have been agreed within which the Committees are required to operate. The Association’s staff work within standing orders, financial regulations, and policies and procedures set by the Board.
The Association conforms to the requirements of the Tenant Services Authority which has a duty to monitor the performance and viability of Housing Associations. Financial statements are prepared each year in accordance with relevant legislation and accounting standards and are submitted within the time limits laid down by the Tenant Services Authority and Register of Friendly Societies. A budget is agreed with the Board prior to the start of each financial year. Management accounts are prepared quarterly and reviewed against the budget by the Board. Performance targets have been set for the main areas of operation and these are monitored regularly by management and Board both against historic performance and other north west Housing Associations.
IT
The Association has successfully used the Omniledger property management system since 2002 and works together with the provider as a client reference site on application improvements. The Association has appointed JM Computing Ltd to manage its IT infrastructure on a consultancy basis. During 2004/5 the majority of the Association’s hardware was replaced and this has allowed further improvements in the way the system is maintained. Also in 2004 the Association purchased a database application to be used in respect of stock condition surveys and decent homes standard assessments. In 2007 the Association revised and rebuilt its website so as to make its services more accessible and also reviewed and revised its disaster recovery procedures.
Audit, Inspection and Monitoring
In 2008 the Association tendered its external audit and appointed Beever and Struthers in place of Mitchell Charlesworth. All audit reports since the Association was founded have been unqualified.
The Association appointed BDO Stoy Hayward as its internal auditors with effect from 2005/6 and their programme of work is linked to the Association’s risk management appraisal system. Annual internal audit reports continue to state that Arcon has an adequate, effective and reliable framework of internal control. Reports from the external and internal auditors are made to the Audit and Risk Management Committee.
The Tenant Services Authority publishes a regulatory judgement of each Housing Association on its website and this includes a summary of its annual viability review. Arcon has received positive assessments for each area, with the Tenant Services Authority finding that in respect of viability the Association meets the expectations set out in the Regulatory Code however exposures exist which make it vulnerable to deterioration; in respect of governance that the governing body, supported by appropriate governance and executive arrangements, maintains satisfactory control of the organization and in respect of management that the association generally meets the standards expected given the context in which it works and the available resources.
ISO 9001:2008
Since 1998, all of the Association’s operations were assessed and registered as meeting the requirements of ISO 9001 quality management standard. During 2009 Arcon obtained accreditation under the new ISO 9001:2008 standard which places greater emphasis on customer feedback and continuous improvement and this accreditation is reviewed and renewed annually. The Association has appointed Productivity Management Services to carry out quality audits in accordance with a programme agreed each year.
Risk Management
The Association carries out an annual risk appraisal to map the risks faced by the organization and assesses the impact and probability of these occurring as well as an assessment of the Association’s strategy in managing them. Those risks that are classified as having a high net risk for the Association are reported to the Board. The Association carries out detailed project risk and financial appraisals for new developments and ensures that risk management is embedded within the organization. The Association recently redefined the terms of reference of the Audit Committee and renamed it the Audit and Risk Management Committee and placed a greater emphasis on its role in the risk management process.
NHF Governance and Regulation Codes
The Association has adopted the NHF Codes for members Excellence in Governance (with the exception that no maximum fixed terms of office are set for Board members), Excellence in Service delivery and accountability and Excellence in Standards of conduct.
Best Value, Value for money and Key Lines of Enquiry (KLOE)
The Association is committed to the application of best value and value for money in order to improve the quality, efficiency and effectiveness of the service it provides its tenants. Service review action plans are set and reviewed regularly in conjunction with the Tenant Scrutiny Committee and a programme of Value for Money reviews has been agreed. The Association also reviews its operations in line with the Audit Commission’s KLOEs.
Equal Opportunities and racial equality
The principle of equal opportunities underlies all of the Association’s activities from the provision of housing to the recruitment of staff. The Association’s equal opportunities policy requires all activities to be monitored from an equal opportunities perspective and there is also an annual review carried out by the Board.
The Association has developed a race equality and diversity strategy that addresses issues related to lettings, tenant satisfaction, dealing with racial harassment, staffing, governing body membership, tenant and resident association membership and the employment of contractors, consultants and suppliers.
Health and Safety
The Association appoints Health and Safety consultants to supervise all its major building and repair works. In respect of its general responsibilities, the Association appointed Productivity Management Services in 2005 to act as Health and Safety consultant following a full audit of the Association’s Health and Safety policy and procedures.
