WE SAID WE DID WE ACHIEVED WE WILL

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1 Value for Money Executive Summary. We are committed to delivering excellent value for money services (VFM) that are of the highest quality and reflect the needs and priorities of customers and the wider communities. We have broken the executive summary down into four distinct areas: Deliver homes and services that our customers want and need Support individuals, families and communities to achieve their potential Ensure the strength, stability and sustainability of our business Grow and Diversify Deliver value for money Deliver homes and services that our customers want and need Build more homes. Target: 73 homes. We attracted 945k additional grant from the Homes and Communities Agency and Worcestershire County Council. Generated 1.31m income from disposal of stock for reinvestment. Invested 17.24m in the development of new homes. Built 56 new homes and created 3 further homes through conversion in line with our business plan target. Development of the remaining homes in the 2015/16 programme will now complete in 2016/17. These were delayed to take account of bids for funding and the review of the development programme following the impact of the Chancellor s July 2015 budget. Our target for 2016/17 is to:- Build/commence on site a total of 147 homes (38 of which will be built in house by Oakleaf Commercial Services). Continue to look at conversion and disposal of stock where it achieves best value and delivers income to reinvest in new homes. Target 15 homes. Review the return on our assets. Target: Deliver maintenance costs at an overall 995k less than our Ark benchmark club peers. Complete 12 option appraisals on under performing stock. We implemented the outcomes of LEAN reviews on our kitchen and bathroom modernisation programmes. We tendered long term contracts with key members of our supply chain. Developed an option appraisal process to review our poorer performing stock (Class C). We delivered maintenance costs at an overall 1.12m less than our Ark benchmark club peers. We fixed prices with our supply chain for 4 years in line with the rent restructuring timetable. Completed 17 option appraisals and developed a future strategy to improve stock performance and contribution to the business. As a result of option appraisal work, we agreed the redevelopment of Springhill Rise to provide 16 new homes, diversifying the tenure and delivering long term benefits to the financial plan. Deliver maintenance costs at 837k against the latest benchmark figures from the Ark benchmarking club. Hold Oakleaf s prices at zero inflation, equivalent to 120k savings or 3.6m over the life of our 30 year financial plan. Complete option appraisals on the remaining 40 Class C schemes. Re-run the Ark ASAP Model to stress test our Asset Performance against recent government policy on Welfare Reforms and other changes in the operating environment. Review the performance of our stock. Target: 15 empty properties converted into Shared Ownership homes. Assessed each void property for value for money. Reviewed and updated our Disposals Policy to offer more choice and flexibility for Shared Ownership customers. Converted 17 high cost void properties to Shared Ownership, realising 1.1m for reinvestment in the Development programme. Disposed of 3 high cost void properties realising 274k for investment. Convert 15 high cost void properties to Shared Ownership. Carry out a sample Stock Condition Survey to validate/review our database and ongoing investment priorities. Increase the energy efficiency of homes to reduce costs and fuel poverty. Target: Install External Wall Insulation to 30 homes and upgrade 190 boilers to A rated standard. Procured a long term partnership contract on fixed prices to deliver the future External Wall Insulation programme. Revised our Energy/Fuel Poverty Strategy to ensure we comply with the Energy Act Completed External Wall Insulation to 29 homes. Upgraded 204 boilers to A rated standard. Maintained our SAP rating of 77. Improved the energy efficiency of 31 homes to an above average SAP rating of 77. Install External Wall Insulation to 24 homes. Upgrade 166 boilers to A rated standard. Replace windows to 344 homes to modern standards of thermal efficiency.

2 Deliver homes and services that our customers want and need Support residents through Welfare Reform. Target: Continue to offer a package of support including up to date information through websites and publications. Offered support through Vestia Job Coaches for those who are able to work. Identified residents who would be affected by each Welfare change and offered advice and support. Identified customers affected by changes in Universal Credit roll out and carried out a communication strategy to raise awareness. Worked with 6 Towns Credit Union to target loan sharks and offer customers affordable alternatives. Secured a grant to host a digital champion for the district to help recruit and train a team of local volunteers to support residents get online. Assisted over 200 residents affected by the Benefit Cap. Provided up to date information through our quarterly newsletter and on our websites. Assisted 76 residents to set up bank accounts through the Credit Union and contributed to the first year charges. Increased accessibility for customers by developing digital access and support. Continue to use our customer insight data to focus support on those tenants in need. Develop a Group wide Digital Inclusion Strategy and promote digital inclusion to ensure access for all. Review the implications of the Local Housing Allowance cap for residents and the Company. Review and revise our Welfare Reform Strategy to support residents to respond to the challenges. Assist 50 households to set up Credit Union bank accounts. Reduce our housing management costs. Target: Review our Care and Support Services to identify efficiencies/savings. Reduce our management costs by 5% per home per annum. Introduce online services to customers through a dedicated customer portal. Completed a Care and Support Services review within agreed timescales. Targeted the reduction in our management costs by 5% through LEAN reviews. Reviewed each vacant post to consider how the service could be delivered more efficiently. Outperformed the Care budget in 2015/16 by 200k Reduced our management costs per home per annum by 12% and moved 3 more of our services in to upper quartile performance against our peer group. Introduced online services to customers through a dedicated customer portal. Continue to deliver measured improvements in the costs of service areas, which are above benchmark peers. Reviews include: tenancy management, anti-social behaviour, and resident involvement. Introduce mobile technology for Neighbourhood Teams to increase efficiency and responsiveness. Reduce our management by a further 5% per home. Improve the process for modernising homes. Target: Review our equipment and adaptations process. Worked with our Tenant Scrutiny Committee to review our equipment and adaptations procedures. Implemented outcomes of the LEAN review of our modernisation process Invested 123k in equipment and adaptations to ensure homes continue to be accessible for residents. Completed 99.2% of adaptations within target timescales. Achieved 94.7% customer satisfaction. Reduced the average cost of a kitchen from 5.6k to 5.3k. Establish a Neighbourhood Panel to inform delivery and development of our Neighbourhood Strategy and monitor delivery and VFM of services and investment programmes. Continue the implementation of the LEAN review outcomes to reduce kitchen and bathroom costs to target levels. Improve the void property process. Target: Achieve average re-let time of below 19 days. Following a LEAN review we implemented the following changes: A new structure with a dedicated voids team Embedded new and efficient processes and systems Revised the Letting Standard incorporating feedback from customers Procured a scheduling and mobile working solution for Oakleaf Voids staff. Reduced average re-let period from 32 days to 18.9 days. Moved performance into the top quartile measured against our peers. Achieved customer satisfaction rates of 93.18%. Increased rental income of over 102k. Embed the new mobile and scheduling technology to improve efficiency further. Reduce void periods by a further 5% to 18 days in 2016/17. Achieve a turnaround target of 16 days by Deliver cost efficient and effective services. Target: Maintain current high performance areas and increase performance in at least one additional area. We benchmarked our services against a peer group of 14 large scale voluntary transfer (LSVT) housing providers. Focussed on void management and performance. Completed LEAN reviews in key service areas including Care and Support, Worcestershire TeleCare and Out of Hours Teams. Maintained high performance across previous top benchmark areas. Achieved upper quartile in 3 further areas; average void period, rent collection as percentage due, and overall current and former tenant arrears. Our target is to continue to maintain these high performance standards and increase performance in at least one additional benchmark area in 2016/17. Achieve high levels of customer satisfaction for our frontline services. Target: Continue to meet our customer satisfaction targets and review services and structures to drive down costs. Worked with a third party to run our customer feedback surveys with us. Carried out an updated STAR survey. Carried out localised and detailed surveys of services provided. Customer satisfaction across the Group in excess of 90% in most areas. Increased satisfaction in a number of areas including lettings. Fell just short of our overall target for Wyre Forest Community Housing in the area of customer service. Review and improve our service delivery to ensure we meet our targets of 90% across all service areas. Introduce feedback surveys on our digital services.

3 Support individuals, families and communities to achieve their potential Provide Apprenticeship opportunities. Target: Extend Apprenticeship opportunities and aim to provide 1 apprentice for every 1m spent through procurement. Delivered an Apprenticeship programme that provides opportunities for learning across the Group and its supply chain. Supported 37 apprentices. 96% of our apprentices are on target to complete their Apprenticeship, against the national target of 70%. Recognition by the National Apprenticeship Service as one of the top 100 apprentice employers in the UK for the third year running. A Group apprentice was the winner of the National Apprenticeship Service Intermediate Apprentice of the Year award Continue to offer Apprenticeships throughout our business and use our procurement strategy to increase opportunities. Ensure over 80% of apprentices on target to complete their Apprenticeship. Retain recognition as one of the top 100 Apprenticeship Employers. Encourage young people into training and work. Target: Continue to support Business Class and work with partners, contractors and suppliers to develop work placement and career advice programmes for young people. As part of a Business Class Partnership with other Worcestershire businesses, we worked with schools to raise young people s awareness of the world of work and career opportunities. We hosted and attended a programme of Business Class events with local schools. Provided a series of work placements for pupils from Baxter College. We will continue to support Business Class and work with partners, contractors and suppliers to develop work placement and career advice programmes for young people. Ensure children and young people get the best start in life. Improve the resilience of families. Target: Continue to deliver the Worcestershire County Council (WCC) Stronger Families and Early Help contracts and meet all contract requirements. We delivered the WCC Stronger Families contract (part of the Government s Troubled Families Programme). Were part of a consortium delivering 0-19 years Early Help Services in Wyre Forest. Provided key worker support to over 1000 families with complex needs. Achieved an outcome of 98% against a target of 80% for young people at risk of not going in education, employment or training going into a positive destination. Supported almost 80% of families from most deprived areas in Wyre Forest access support from children centres. Continue to deliver the contracts and meet all contract requirements. Work with WCC to inform and shape the future service within a reduced budget. Support residents to play a full role in decisions made about their homes, services and communities. Target: Provide involvement and Community Development training to 50 residents. Supported the Central Tenants Forum, Tenant Scrutiny, Communications and Neighbourhood Groups. Supported new tenants to become involved through Neighbourhood inspections. We will support Housing Management colleagues to consult effectively and efficiently with tenants in reviewing the landlord service. Delivered a varied programme of training to residents. 70 residents received training during the year. Deliver a training programme to 50 residents. Continue to support clubs and activities which help to reduce social isolation. Developed involvement opportunities within Sheltered Housing Schemes. Worked with residents to set up Voices a residents group with members from across our sheltered schemes aimed at continually improving standards in the schemes and informing the delivery of activities to reduce social isolation. Continue to develop Voices and identify further opportunities to support activities to reduce social isolation through our Corporate Social Responsibility Strategy. Achieve full Quality Assured Tenant Scrutiny accreditation. Supported the Tenant Scrutiny Committee to prepare for national accreditation. Achieved part 1 of Quality Assured Tenant Scrutiny accreditation and awaiting outcome of Part 2 assessment. Achieve full Quality Assured Scrutiny Accreditation.

4 Support individuals, families and communities to achieve their potential Continue to support residents to obtain the skills and confidence to join our Boards. Marketed opportunities to join our boards and deliver training programmes for existing and prospective members. Successfully recruited to vacancies during the year. Supported 3 tenants to be active members of our Boards. Review support and training delivered to Tenant Members as part of our planned governance review. Support the Tenant Scrutiny Committee to conduct 4 service reviews. Worked with the Tenant Scrutiny Committee to develop the scrutiny process and complete reviews that add value from a customer and business perspective. Completed 3 Tenant Scrutiny reviews with changes implemented in working practices as a result. The reviews took longer than anticipated and the Committee agreed in future to target 3 reviews a year. We will ensure tenants have the skills to fully participate in shaping services for the future and holding TCHG to account. We will support the Tenant Scrutiny Committee to conduct 3 service reviews: Gas and solid fuel repairs, Starter Tenancies and Property and Person at Risk Process. Continue to support Big Local Projects. Acted as the Locally Trusted Organisation for DY10 Big Local, which will see residents decide on priorities for investment of 1m in the Horsefair, Greenhill and Broadwaters areas of Kidderminster. Received recognition from Big Local for the quality of the DY10 Community Plan. Continue to work with DY10 to deliver their community plan and invest their grant in sustainable community improvements. Continually review our resident involvement structure and carry out annual impact assessments. Supported groups to measure the impact of their involvement activities. Impact assessments completed and improvement plans agreed. Undertake a review of Resident Involvement to ensure we are delivering a positive impact and VFM for residents and the Group. Continually review training and support needs. Carried out a review. Agreed and delivered a revised programme of training at a reduced cost. Re-consider training and support needs and the most cost effective delivery methods as part of the planned resident involvement review.

5 Ensure the strength, stability and sustainability of our business Restructure our business to deliver our vision and maximise efficiency. Target: Embed our new Group structure and achieve projected savings. Established Oakleaf Commercial Services as a separate commercial subsidiary able to win third party contracts and invest additional surpluses into Group activities. Completed first year of merged Wyre Forest Community Housing and Wyre Forest Sheltered Housing companies with revised governance arrangements. Achieved first full year efficiency savings of 240k in 2015/16 from restructure and refinancing. Carry out a full governance review (part of a planned three year review programme). Achieve maximum financial and social value from our assets and services. Target: Work with partners to secure European funding to support people in to employment. Meet and where possible, exceed our financial targets. Procured long term contracts with key partners at fixed rates for a minimum of 4 years. Through procurement created additional Apprenticeships and funding for community projects. Submitted 3 applications for European Social Investment Funding (ESIF) to help long term unemployed people into work. Agreed budgets including challenging growth targets for the year. Targeted procurement and working with our supply chain will deliver our 56k savings over the next 4 years. Through procurement we created 10 new Apprenticeships throughout the lifetime of the contracts. Secured 15k funding for a community project plus 80 hours of support for social outcomes at our new Extra Care development, Berrington Court. Successful in 2 out of 3 bids, securing a possible 2m of grant to support over 600 people into employment. All companies outperformed their budgets. Increase the financial and social value from our non-social housing business. Continue to review our procurement strategy to maximise VFM across the Group. Apply our new social value measurement model to 4 areas of our service during 2016/17. Establish our 2 (ESIF) employment projects with Jobs Coaches (employed by partners) working across Worcestershire to help people into work. Continue our pensions review. At 31st March 2016, our cumulative pension deficit is 23.26m. We are currently reviewing pensions with PWC, to advise the Board on future options. This will be completed in 2016/17 following release of the Worcestershire County Council 2016 pension revaluation. Continue to exceed financial targets. Improve benchmarking to understand how our works costs compare to others and use this as a driver for greater efficiency. Target: To develop our works costs benchmarking data to obtain up to date performance data. Worked with Ark to develop their maintenance benchmarking club and refine performance measures. Compared our costs of delivering repairs, kitchens, central heating, roofs and windows in 2015/16 with costs for 2014/15. 6 out of 9 of our maintenance services were delivered below sector benchmarks. Continue to develop our benchmarking across our service areas and update each year. Use the HCA Unit Cost data to inform our future strategy and target setting. Compare return on Asset Performance against our peers and across years. Reduce the cost of kitchens and bathrooms in 2016/17 and bring gas servicing in-house in 2017/18 so that all our maintenance costs are below updated sector benchmarks. Ensure our service reviews deliver processes that are efficient, effective and joined up. Target: Develop a customer portal which will provide self-service opportunities for customers to access services online and reduce service delivery costs in the longer term. Restructured our Worcestershire TeleCare business. Reviewed our Out of Hours Call Handling and CCTV monitoring and restructured our services to deliver improved customer service and efficiencies in costs to customer and Company. Introduced an online service to customers via a customer portal. Created a dedicated website for Berrington Court Extra Care Development, so potential customers can access information online. Achieved restructuring and reviews in accordance with agreed targets and timescales. Reduced service charges for CCTV Services for over 100 customers. New customer portal providing self-service opportunities for customers to access services online. Increased the number of visits to all Group websites by over 10%. Created efficiency savings for housing management which have reduced management costs per property per annum. Carry out Phase 2 of a Group wide review of our Care and Support Services in WFCH, WTC and Vestia to explore opportunities for greater collaboration and efficiency across Group Companies. Invest further in the development of our websites and maximise the use of different social media platforms to communicate with customers and stakeholders. Actively promote our customer portal and encourage selfservice delivery options. Complete other service reviews detailed elsewhere in the document.

6 Ensure the strength, stability and sustainability of our business Streamline our office accommodation. Target: Consolidate our depot operations to improve efficiency. We purchased a site and developed a new depot and office to co-locate our Oakleaf Grounds, PVC-u windows, timber joinery and fleet operations and waste operations. We closed 4 leases and co-located teams generating ( 23k) part year savings on running costs. Created 35k of operational savings on grounds maintenance following relocation to a single site, which was invested back into service improvements following consultation with the Central Tenants Forum. Review the long term viability of Oakleaf s Forest House operation, with a view to co-locating with whole Oakleaf operation onto one site at Finepoint to reduce running costs. Review processes for training and developing our staff to ensure our people have the right skills for the future and minimum non-productive time. Target: Roll out new more efficient Personal Performance Reviews (PPR) for all staff and create efficiencies in training through procurement and creative delivery models. Implemented the PPR process across the business. Increased level of e-learning. Reduced lost time for attendance at training. Identified savings to the training budget within a year. Trained all managers and staff on the new PPR process. 27% reduction in lost time for attendance at training (510 days in productivity). Training spend for employee of 193 against a sector median of 385. Top quartile performance when benchmarked against our peers. Deliver 33% of training interventions through e-learning. Aim to reduce lost time due to attendance at training by a further 10%. Investigate m-learning (mobile phone learning) so that workforce phones/tablets can be utilised to their full potential. Continue to challenge training providers to reduce costs and validate time required to deliver programmes. Complete a time/work study with Oakleaf Commercial Services to establish the most cost effective time to deliver essential off the job training. Grow and diversify We will achieve our the financial growth targets. Target: 16% of our activity will be nonhousing related. We will achieve a Group turnover of 34.6m. We will achieve a net surplus for the Group of 3.7m. Secured grant to reduce costs or expand our services. Achieved additional grant of 945k for the provision of new homes. Achieved 11.9% increase in overall Group turnover to 41.8m. Achieved a net surplus of 3.37m. Revise our targets following the restatement of the Group s business plan in September Development programme spend above 10m. Group capital spend programme at 15.9m. Improve net surplus by 10%. Group turnover 42m. Ensure we retain a Board with the necessary skills to lead the organisation and support the delivery of the Business Plan. Target: Continue to review skill requirements as we move into new areas of business and recruit accordingly. Board skill requirements reviewed: - Annually as part of business review/planning. - When considering new business. - As part of succession planning and ahead of each recruitment exercise. Maintained highly skilled Boards/Committees throughout the year. Recruited suitable skilled Members to all vacancies at first attempt. Maintained upper quartile performance on recruitment costs. Review Board skills, training and development as part of our planned Governance Review. Maintain highly skills Boards and Committees. Maintain upper quartile performance on recruitment costs.

7 Deliver Value for Money We will deliver our Value for Money targets within our 2015/16 Statement. Targets: Outperform our Business Plan which incorporates Value for Money savings. Targeted LEAN reviews within service areas. Reviewed all vacancies to consider whether to fill, hold vacant, or refocus roles as part of efficiency in service delivery. Carried out a central overheads review on apportionment of costs as agreed with subsidiaries. Through procurement reviews and retendering of facilities identified efficiency savings. We made a number of operational savings in 2015/16, some against the budget set and some against the level of costs compared to the previous year. However, all of these savings were against the Business Plan and therefore rolled forward, benefitting the long term Plan. Achieved 723k savings across the Group against budget. Outperform our Business Plan Achieve the following Value for Money targets: ( 000s) Summary of VfM savings 2015/16 Loan interest ( 000s) 253 Overall operational savings against Business Plan Loan interest savings from fixing longterm debt Care24 restructure 204 Professional services 104 Housing Management 171 Marketing and Tenant Participation 5 Central Services restructure (including HR and Business Development) Marketing and Tenant Participation Internal Catering Total Vestia Services Professional Services Rents and Rates IT running costs Worcestershire TeleCare Services Equipment and furniture Clothing and uniforms Energy costs Cleaning costs Savings generated in 2016/17 will be rolled forward into a healthier 2017/18 Business Plan which will enable the Group to reflect on improving services, extending services and extending further the number of new homes to be built.