VFM? Review your assets ASAP

Our Director Ian Winslet posted this blog recently.

The HCA has just released a review of the housing sector’s value for money statements for the past three years. As we all know, assets and their contribution always feature in this and this latest eleven page review is no different. Since I’ve always considered the world needs more ‘editors’, below is the ‘walking between meetings’ summary of the HCA’s summary.

Ark’s Strategic Asset Performance (ASAP) Model has now helped numerous associations to really understand the contribution that each house is making to the business and creates a real list of houses in the order that they make that financial contribution. In general the list runs from ‘how do we get more houses like that one?’ through to ‘hmmm, tell me again, why is that on our books?’ If you haven’t got a list like that, then you’ll need one.

Talk to us, and for the price of a few kitchens or bathrooms invested in houses that you shouldn’t have invested new kitchens and bathrooms in (your Ark model will tell you why), you can have a full assessment of your property assets that lays out exactly what contributes and what doesn’t. We’re exhibiting on stand F5 at the CIH conference and will be showcasing our ASAP model at an event on 29th June while we’re there.

In the meantime, a word from our Regulator;

  • We (the sector) are providing more quantitative evidence on the cost of running services than on the return on assets.
  • We are providing evidence of past savings more commonly than clear targets for future savings.
  • It was more common for us to highlight areas of strength than to admit areas that needed improvement.
  • We are starting to evidence the return on our assets and how this understanding informs business decisions
  • We are starting to evidence how the financial return on individual properties and groups of properties varies
  • We are starting to evidence how investment or the choice between retention or disposal of properties is being made
  • We are starting to evidence how active asset management is used to generate proceeds for reinvestment in the achievement of the organisation’s overall objectives.
  • It is still less common to see clear quantified targets for future savings, and over 3 years of self it is not always easy to follow a ‘golden thread’ from one year to another

If you want to see the full HCA review, click the link;

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/527806/Unit_Cost_analysis_-_VfM_self_assessments.pdf