Value for money standard
1 Required outcomes
1.1 Registered providers must:
a. clearly articulate their strategic objectives
b. have an approach agreed by their board to achieving value for money in meeting these objectives and demonstrate their delivery of value for money to stakeholders
c. through their strategic objectives, articulate their strategy for delivering homes that meet a range of needs
d. ensure that optimal benefit is derived from resources and assets and optimise economy, efficiency and effectiveness in the delivery of their strategic objectives.
2 Specific expectations
2.1 Registered providers must demonstrate:
a. a robust approach to achieving value for money – this must include a robust approach to decision making and a rigorous appraisal of potential options for improving performance
b. regular and appropriate consideration by the board of potential value for money gains – this must include full consideration of costs and benefits of alternative commercial, organisational and delivery structures
c. consideration of value for money across their whole business and where they invest in non-social housing activity, they should consider whether this generates returns commensurate to the risk involved and justification where this is not the case
d. that they have appropriate targets in place for measuring performance in achieving value for money in delivering their strategic objectives, and that they regularly monitor and report their performance against these targets.
2.2 Registered providers must annually publish evidence in the statutory accounts to enable stakeholders to understand the provider’s:
a. performance against its own value for money targets and any metrics set out by the regulator, and how that performance compares to peers
b. measurable plans to address any areas of underperformance, including clearly stating any areas where improvements would not be appropriate and the rationale for this.