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 additional responsibilities to local authorities i.e. anything an individual can do � Enfield has set up 3 wholly owned subsidiaries
1. Housing Gateway Limited (HGL ltd) � Went live 1 st 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
HGL ltd - Progress to date � 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
2. Enfield Innovations Limited (EIL ltd) � 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
EIL Ltd - Progress to date � 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
3. Lea Valley Heat Network(LVHN ltd) � Lea Valley Heat Network Limited � Went live 1 st 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
LVHN ltd - progress to date � Current business plan demonstrates project viability � Further detailed scenario planning being undertaken
Governance arrangements – LVHN ltd � 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
Governance arrangements-HGL & EIL ltd(1) � 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
Governance arrangements-HGL & EIL ltd(2) � 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 & Financial governance � 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
Future companies 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 options etc � 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
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