LBE wholly owned subsidiaries Striving for excellence - - PowerPoint PPT Presentation
LBE wholly owned subsidiaries Striving for excellence www.enfield.gov.uk Background/Context The Local Government 2003 allows local authorities to act commercially regarding any of their responsibilities The Localism Act 2011 granted
www.enfield.gov.uk
Striving for excellence
The Local Government 2003 allows local authorities to act commercially regarding any of their responsibilities The Localism Act 2011 granted additional responsibilities to local authorities i.e. anything an individual can do Enfield has set up 3 wholly owned subsidiaries
Went live 1st April 2014 Setup to Acquire and manage properties in the private rented sector Assist in managing increase in demand for housing Assist in increasing the supply of good quality properties in the private rented sector Assist in alleviating significant pressures in the temporary accommodation budget Set guidelines for property purchases based on financial model and demand for housing Agreed loan of £45M, balance @ end of January £7.6M
Target to purchase 200 properties by end of financial year, current forecast 170-180 Purchased 155 properties, 138 tenanted @11 Feb. Renovation time has reduced from 70 days in December to 35 days in January Income collection target exceeded for January Overall net target yield met across the portfolio
Went live 3rd October 2014 Setup to
Deliver the development of the 7 Small Sites and
manage the private rented units Increase the supply of affordable housing through building, utilising RTB receipts Assist in managing increased demand for housing Agreed maximum loan value £17.3M
Construction work has resumed at St Georges & Parsonage lane sites Circa 85% of Climate Energy Homes sub-contractors retained by Ariey Miller Forecast completion dates and cost of completion schedules imminent
Lea Valley Heat Network Limited
Went live 1st August 2015, trading as Energetix limited Setup to deliver low carbon energy Ambition to deliver lower cost energy compared to traditional fossil fuel energy First customers will be Ladderswood, Alma New avenue, and Meridian Water 2 Tier structure governance structure Holding Company-oversees the operating company, with Enfield being the sole shareholder Operating Company responsible for project delivery
Current business plan demonstrates project viability Further detailed scenario planning being undertaken
2 Boards
The Holding Company Board (HoldCo) Comprises of 3 Member Directors, 3 Officer Directors and up to 3 independent Directors The Operating Company Board (OpCo) Comprises of 6 Directors
The Board
Responsible for the strategic direction of the company , including safeguarding of company assets Meets monthly Comprises of 8 directors, 6 Council & 2 Independent Council directors No more than 3 elected members No more than 3 Council officers
Scheme of delegation approval levels > £50k, The board £5k - £50k, 2 Directors < £5k, Officers acting on behalf of the company Quarterly report issued to the Board detailing all decisions made HGL ltd only - Delegation of decisions on acquisitions to an Investment Committee EIL ltd only - Delegated authority to the Estate renewal team for Development & Property Management contracts
Accounting
Produce statutory accounts in accordance with IFRS Each company qualifies for consolidation as the Council has 100% ownership, i.e. control However exemption granted on grounds of materiality, endorsed by BDO for 2015/16 Financial management & company accounting support provided via an SLA with the Council External auditors HGL & LVHN - Moore Stevens ltd EIL ltd - GLS Ltd
1.Independent and Well Being Service limited Approval December 15, commence trading April 2016 Initial proposal , subject to Executive board will include a range of Adult social care services including Outreach, Integrated Community Equipment, New
2.Registered Provider company Approval November 15, to set up a Registered Provider(RP) & Procure an investment partner for the RP To assist with utilising RTB receipts to avoid returning funds to central government. £14.9M(30%), is returnable amount plus interest