REGISTERED NUMBER: |
Report of the Directors and |
Financial Statements for the Year Ended 31 March 2023 |
for |
Action Housing And Support Limited |
REGISTERED NUMBER: |
Report of the Directors and |
Financial Statements for the Year Ended 31 March 2023 |
for |
Action Housing And Support Limited |
Action Housing And Support Limited (Registered number: 01548338) |
Contents of the Financial Statements |
for the Year Ended 31 March 2023 |
Page |
Report of the Directors | 1 |
Report of the Independent Auditors | 9 |
Statement of Comprehensive Income | 12 |
Balance Sheet | 13 |
Statement of Changes in Equity | 14 |
Cash Flow Statement | 15 |
Notes to the Cash Flow Statement | 16 |
Notes to the Financial Statements | 17 |
Action Housing And Support Limited (Registered number: 01548338) |
Report of the Directors |
for the Year Ended 31 March 2023 |
Trustee's Report 22/23 |
The trustees, who are the non-executive directors of the company, present their report with the audited financial statements of the charitable company for the year ended 31 March 2023. |
REFERENCE AND ADMINISTRATIVE DETAILS |
Company registration number: | 01548338 (England and Wales) |
Charity registration number: | 511265 |
Homes England registration number: | 4660 |
Members of the board: | Mr T De'Ath (Chair) |
Mr N Macpherson (Vice Chair) |
Mr I Knowles |
Mrs P Warnock |
Mr P Bayliss |
Chief Executive: | Mr A Stott |
Registered office: | 6 Genesis Business Park |
Sheffield Road |
Rotherham |
South Yorkshire |
S60 1DX |
Auditor: | Sutton McGrath Hartley |
5 Westbrook Court |
Sharrowvale Road |
Sheffield |
South Yorkshire |
S11 8YZ |
Solicitor: | Bailoran |
West Hill House |
Allerton Hill |
Leeds |
L27 3QB |
Solicitor: | Ward Hadaway |
5 Wellington Place |
Leeds |
LS1 4AP |
Solicitor: | Hill Dickinson |
50 Fountain Street |
Manchester |
M2 2AS |
Bankers: | Metro Bank |
58-64 Fargate |
Sheffield |
S1 2HE |
Action Housing And Support Limited (Registered number: 01548338) |
Report of the Directors |
for the Year Ended 31 March 2023 |
Bankers: | Unity Trust Bank Plc |
Nine Brindleyplace |
Birmingham |
B1 2HB |
PRINCIPAL ACTIVITY |
Principle Activities |
The Trustees, who are the non executive directors of the company, present their report with the audited financial statements of the charitable company for the year ended 31 March 2023. |
Action Housing and Support works for the public benefit through its principal activities of providing accommodation, support, education and employability training and related services to a wide variety of vulnerable people. Currently these activities are carried out in Yorkshire, Nottinghamshire and Derbyshire. The objective of the charity is expressed in its Articles of Association: |
'To educate and train and relieve poverty and sickness among persons who are suffering or who have suffered a legal restriction on their liberty in any penal or correctional establishment or through any means whatever including issues with learning difficulties, mental health, drug and alcohol, woman escaping domestic abuse, young people with multiple needs, sex workers and other vulnerable persons who require assistance to achieve and or maintain independence, also including (but not limited to) any orders made under the Mental Health Act or some other similar legislation and the families of such persons in such ways as the Board think fit and to further and promote the study of and research into all aspects and methods of the prevention of crime and delinquency and to obtain and make records of and disseminate information concerning the same, and to promote, support or carry on either alone or in co-operation with any subsidiary company of the Association or any other body, authority, or person, any project or scheme in connection with any methods of the prevention of crime and delinquency and to provide monies for such purposes whether by way of loans, grants, advances, gifts or otherwise as the Board think fit; |
To carry on for the benefit of the community the business of providing social housing and any associated amenities, services, advice or assistance. |
To promote or carry out any other charitable purpose that can be carried out by a company registered as a social landlord with the Tenant Services Authority or such similar authority from time to time. |
The aim of the company is to work to enable vulnerable people to establish a home and live responsibly in society.' |
REVIEW OF BUSINESS |
Organisational Status |
Action Housing and Support is a Registered Charity and a Company Limited by Guarantee, without share capital. Its governing instrument is the Articles of Association. |
Action Housing and Support is also a Registered Housing Provider and these accounts are prepared in accordance with the Companies Act 2006, the Housing Regeneration Act 2008 and the Accounting Direction for private registered providers of social housing in England 2019. |
Internal Controls, Governance and Risk Management |
A Board of Trustees governs the company. The Board exists to provide probity and governance to Action Housing and Support, set the strategic direction, ensure adherence to the Articles of Association, support the Executive Team as they run the business, appoint the Chief Executive and hold them to account, provide advice, scrutiny and fresh eyes, behaving as critical friends. |
Action Housing And Support Limited (Registered number: 01548338) |
Report of the Directors |
for the Year Ended 31 March 2023 |
Our Governance Framework covers the principles by which our organisation is constituted. It also records who take decisions, and how the decisions taken are recorded, communicated and implemented. Our organisation is a values-led, 'not for profit' organisation, and all income goes into running the organisation and the services delivered by it. |
The Trustees continually review the risks to which the charity is exposed. Systems are in place to mitigate those risks utilising our Risk Management Framework & Business Continuity Plan. |
Recruitment and appointment to the Board of Trustees is by a formal process as defined within the Code of Governance. Trustees undergo a period of induction in which they meet staff and clients, and are encouraged to attend events designed to promote their understanding of good governance. |
DIRECTORS |
Board Membership and Responsibilities |
The members below have served in office from 1 April 2022 to the date of this report, except where otherwise indicated: |
Mr T De'Ath (Chair) |
Mr N Macpherson (Vice Chair) |
Mr I Knowles |
Mrs P Warnock |
Mr P Bayliss |
No remuneration is paid to Trustees, in their capacity as Trustees, and as the company is limited by guarantee, none of the Trustees has any interest in the shares or retained reserves. |
Action Housing And Support Limited (Registered number: 01548338) |
Report of the Directors |
for the Year Ended 31 March 2023 |
STRATEGIC REPORT |
Operational Review |
Our activities focus on tenancy sustainment, the provision of accommodation, the prevention of offending and homelessness, the provision of domestic abuse services and supporting individuals to independent and self-sufficient living. The delivery of our services benefits individuals through the creation of opportunity, enabling them to realise their potential and lead fulfilling lives. |
Our funding currently enables the services we provide to be delivered to residents or people living in: |
- Rotherham |
- Sheffield |
- Mansfield |
- Chesterfield |
- Derby |
In 2022/23 services were again provided to more than 1,000 individuals with the duration of support ranging from responsive phone calls which in effect last minutes to detailed and specific support programmes lasting up to two years and in some instances even longer. We also continue to provide units of supported accommodation to people with complex needs together with the provision of specified accommodation. |
We have worked closely with Home England and by further utilising their affordable homes programme and working in partnership with our local authorities partners we intend to further develop our housing stock both in supported accommodation and general needs in the coming years. |
The impact of our work goes beyond those we help directly; it reduces the distress suffered by families, friends and the wider society. It reduces demands upon statutory services and the public purse in terms of a reduction in crime, anti-social behaviour, drug abuse, poor health and social exclusion, and assists in the building of cohesive neighbourhoods. |
The primary income sources of the Charity are rental income and contracts with local authorities. As mentioned above, Homes England provided development funding this year to enable us to increase our housing stock. We also received a number of smaller grants, which were used to purchase equipment and deliver activities to our client group across our programmes. |
The company maintained existing contracts and also renegotiated and won a new larger contract to provide its ARBOR services in Derbyshire. |
Having successfully worked with Rotherham council and Homes England in the previous year, delivering the RSAP (Rough Sleeper Accommodation Program) Action Housing successfully bid for and won new contracts to deliver this programme in Rotherham, Sheffield, Mansfield and Derby. |
This contract will run until the end of April 2024 and will mean an increase in the properties owned which will be specifically for Supported accommodation use. |
The organisation returned a healthy surplus for the third year in a row and continued to work to the board approved 3 business plan. This plan has subsequently been updated taking the organisation to 2025. |
The plan focuses on five key issues: - |
- Quality of service and investment in the services provided. |
- Investment in staff, their development and wellbeing. |
- Investment in accommodation. |
- Ensuring adequate reserves are accumulated and built upon. |
- Strengthening the balance sheet of the organisation. |
Action Housing And Support Limited (Registered number: 01548338) |
Report of the Directors |
for the Year Ended 31 March 2023 |
Trustees remain committed to the generation of income for the Charity and opportunity for our clients, but are clear that diversification must be appropriate and sustainable in the longer term. The Board continue to work with the senior team to ensure our continued success, development and growth. |
The charity's principal asset remains its staff and the Trustees acknowledge the contribution of every staff member and thank them for their work and commitment. |
Financial Review |
Action Housing & Support operates in a challenging financial environment and continues to experience restrictions on resources. Funding is on a contractual, cyclical basis and is often secured via competitive tender. Funding from the Communities and Local Government (administered by the local authorities) and in particular Housing Related Support, equates to 17% of all income. Our main source of income is via rental income from the units that we manage. This year we also received grant funding from Homes England, Derby City Council, Mansfield District Council. Rotherham Council and Sheffield City Council. |
As a result of the challenges previously outlined, overall, the organisation returned a £552,567 surplus on activities before taxation (2022 - £644,496). This included £72,000 (2022 - £118,000) for FRS 102 pension adjustments. Without these non-cash adjustments, the operating surplus would have been £624,567 (2022 - £762,496). |
The closing net assets at 31 March 2023 were £6,862,222 (2022 - £584,655) of which £446,831 (2022 - £403,254) was restricted funds and £4,608,391 (2022 - £4,027,401 was unrestricted reserves and £1,807,000 pension surplus reserve (2022 - £3,846,000) was a pension deficit reserve. |
The trustees have prepared a three year financial plan showing forecasts of income, expenditure and cash flow for the period to 31 March 2025. The forecasts show that the company will generate future surpluses and has sufficient cash reserves to be able to continue its operations for the foreseeable future. |
Reserves Policy |
The Trustees have reviewed the charity's needs for reserves in line with the guidance issued by the Charity Commission. The free reserves consist of unrestricted funds, net of fixed assets, and associated bank loans. Due to our strategic commitment to develop properties, which generate long-term income, our free reserves remain relatively low at £688,952 (2022 - £749,796). We have however been able to increase and grow the reserves in the past year. The level of reserves is monitored and reviewed by Trustees throughout the year as part of our ongoing management of risk. Our free reserves level is not assessed as a significant risk at present. We have in place a plan over the next three years to incrementally increase the level of free reserves held. |
Key Risks |
The main risks faced by the Charity are identified as: |
- Reduction in public sector funding for services to support vulnerable people due to a continuing austerity environment. The main controls for this are dedicated business development resource, researching and identifying new opportunities and the maintenance of positive relationships and open dialogue with commissioners, enabling service redesign rather than decommission. |
- Change in senior leadership. The board are committed to ensuring a new business strategy is in place underpinned by sustainable investment in resource capacity. |
- Maintaining adequate cashflow, reducing contractual income and significant development activity. Main controls for this are active cashflow management and monitoring, careful budgeting, consideration of appropriate credit facilities and scrutiny and oversight by the Board of Trustees. |
- Comprehensive risk management procedures, with risks reported to Board twice yearly for review. |
Directors' Salaries |
The Board of Trustees have overview of senior pay and terms and conditions. Salaries are benchmarked by use of the ACEVO pay survey and national CIPD pay survey information. |
Action Housing And Support Limited (Registered number: 01548338) |
Report of the Directors |
for the Year Ended 31 March 2023 |
Investments |
The company's investment powers are set out in its Articles of Association and allow the company to invest funds not immediately required in securities and property, subject to such conditions as may be required by law. Those responsible for financial management remain mindful of the current economic climate and the need to invest to secure maximum income whilst managing associated risk. |
Plans for future periods |
Building on the work already carried out, in the forthcoming year we aim to: |
- Focus on the quality of service delivery |
- Focus on our employment practices and improve the quality and capability of our staff |
- Improve the quality of our housing stock |
- Increase the provision of specified accommodation |
- Develop more units of accommodation for general needs tenants |
- Develop and build ever-stronger strategic relationships, raising the profile of Action |
Events since the balance sheet date |
There are no other important events that have occurred since the balance sheet date which affect the company. |
Value for Money |
Action Housing & Support has developed over the years by tendering for services in a continual, competitive cycle. This cycle ensures that services and the value they provide are reviewed and tested against the open market. It also continues to develop its property portfolio, which has resulted in the increased provision of both general needs accommodation and also supported accommodation. During 2022/23, the organisation has focussed on delivering value for money through the following activity: |
- Tendering for the supply of specific contract works suited to the organisation's capabilities. |
- Realignment of managerial resources in proportion to support reductions in specific areas of work. |
Value for money remains critical to the organisation and to the successful submission of tenders. Plans for 2022/23 include: |
- Focus on performance and accountability of all budget holders |
- Continue to review and retender all contracts and suppliers of services |
- Continue to develop and implement systems and processes that will facilitate and support excellent customer service |
To comply with the Regulator of Social Housing Value for Money Metrics requirement, Action Housing and Support has calculated the following data: |
2023 | 2022 |
Metric 1 Reinvestment % | 13% | 9% |
Metric 2 New supply delivered (social housing units) | 6% | 4% |
Metric 3 Gearing % | 4% | 8% |
Metric 4 Earnings before interest, tax and depreciation % | 846% | 1413% |
Metric 5 Headline Social cost per unit | £12,392 | £11,699 |
Metric 6 Operating Margin % |
(social housing and overall the same) | 9% | 11% |
Metric 7 Return on capital employed % | 7% | 7% |
Action Housing And Support Limited (Registered number: 01548338) |
Report of the Directors |
for the Year Ended 31 March 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
Trustees' Responsibilities |
The trustees (who are also directors of Action Housing and Support for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). |
Company law and registered social housing legislation requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to: |
- select suitable accounting policies and then apply them consistently; |
- observe the methods and principles in the Housing SORP; |
- make judgements and estimates that are reasonable and prudent; |
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation. |
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for private registered providers of social housing in England 2019. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
In so far as the trustees are aware: |
- there is no relevant audit information of which the charitable company's auditor is unaware; and |
- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. |
AUDITORS |
The auditors, Sutton McGrath Hartley, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
Action Housing And Support Limited (Registered number: 01548338) |
Report of the Directors |
for the Year Ended 31 March 2023 |
This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Action Housing And Support Limited |
Opinion |
We have audited the financial statements of Action Housing And Support Limited (the 'company') for the year ended 31 March 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Reserves, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its surplus for the year then ended; |
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- have been prepared in accordance with the requirements of the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for private providers of social housing in England 2019. |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its surplus for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Trustees' Report, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Report of the Independent Auditors to the Members of |
Action Housing And Support Limited |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- the Trustees' Report has been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Directors. |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- the financial statements are not in agreement with the accounting records and returns; or |
- certain disclosures of directors' remuneration specified by law are not made; or |
- we have not received all the information and explanations we require for our audit. |
In addition, we have nothing to report in respect of the following matter where the Housing and Regeneration Act 2008 requires us to report to you if, in our opinion: |
- a satisfactory system of control over transactions has not been maintained. |
Responsibilities of directors |
As explained more fully in the board's responsibilities set out on page eight, the trustees (who are also the directors of the association for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the board are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the board either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Action Housing And Support Limited |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Our assessment of the susceptibility to material misstatement, whether by fraud or error, is made in a risk based |
approach. |
In this approach, laws and regulations applicable to the entity, such as the Companies Act 2006, United Kingdom |
Generally Accepted Accounting Practice including Financial Reporting Standard 102, the Housing Regeneration Act 2008 and the Accounting Direction for private registered providers of social housing in England 2019, along with employment law, safeguarding legislation, data protection law and Health and Safety law. |
The policies and controls the entity has in place to comply with these laws are reviewed, by discussion, reviews of correspondence and registrations monitored by external bodies. The engagement team remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
Policies and controls relating to the risk of material misstatement as a result of fraud, management override of controls, and revenue recognitions are also considered. These are assessed by obtaining an understanding of the company's operations and control environment. The policies and controls have been reviewed by discussion, review and sample testing of accounting entries, including journals, challenging assumptions and judgements, reviewing and evaluating related parties transactions, and wider background searches. Testing of income recognition and fund accounting is also completed. |
We have ensured that the engagement team have appropriate levels of competence and experience to effectively |
monitor these risks and carry out work relevant to our assessment of each risk, including consideration of the sector the company operates in and its size and complexity. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
5 Westbrook Court |
Sharrowvale Road |
Sheffield |
South Yorkshire |
S11 8YZ |
Action Housing And Support Limited (Registered number: 01548338) |
Statement of Comprehensive |
Income |
for the Year Ended 31 March 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 |
Administrative expenses |
OPERATING SURPLUS |
Interest receivable and similar income |
553,589 | 644,997 |
Gain/loss on revaluation of assets | 5,725,000 | 1,502,000 |
6,278,589 | 2,146,997 |
Interest payable and similar expenses | 5 |
SURPLUS BEFORE TAXATION | 6 |
Tax on surplus | 7 |
SURPLUS FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Action Housing And Support Limited (Registered number: 01548338) |
Balance Sheet |
31 March 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 12 |
Housing properties for letting | 13 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
16 |
( |
) |
( |
) |
PENSION ASSET/(LIABILITY) | 20 | ( |
) |
NET ASSETS |
RESERVES |
Pension reserves | 19 | ( |
) |
Restricted reserves | 19 |
Income and expenditure account | 19 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Action Housing And Support Limited (Registered number: 01548338) |
Statement of Changes in Equity |
for the Year Ended 31 March 2023 |
Retained | Pension | Restricted | Total |
earnings | reserves | reserves | equity |
£ | £ | £ | £ |
Balance at 1 April 2021 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income |
Balance at 31 March 2022 | ( |
) |
Changes in equity |
Total comprehensive income |
Balance at 31 March 2023 |
Action Housing And Support Limited (Registered number: 01548338) |
Cash Flow Statement |
for the Year Ended 31 March 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Finance costs paid | 93,188 | 59,536 |
Defined benefit net interest cost |
Defined benefit current service cost | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Purchase of investment property | ( |
) | ( |
) |
Sale of tangible fixed assets |
Sale of investment property |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) | ( |
) |
Interest paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
2 |
1,068,054 |
Cash and cash equivalents at end of year | 2 | 1,615,409 | 1,360,022 |
Action Housing And Support Limited (Registered number: 01548338) |
Notes to the Cash Flow Statement |
for the Year Ended 31 March 2023 |
1. | RECONCILIATION OF SURPLUS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Surplus before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Gain on revaluation of fixed assets | (5,725,000 | ) | (1,502,000 | ) |
Finance costs | 1,022 | 501 |
Finance income | (1,512 | ) | (127 | ) |
849,267 | 935,771 |
Decrease/(increase) in trade and other debtors | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2023 |
31/3/23 | 1/4/22 |
£ | £ |
Cash and cash equivalents | 1,615,409 | 1,360,022 |
Year ended 31 March 2022 |
31/3/22 | 1/4/21 |
£ | £ |
Cash and cash equivalents | 1,360,022 | 1,068,054 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/4/22 | Cash flow | At 31/3/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,360,022 | 255,387 | 1,615,409 |
1,360,022 | 1,615,409 |
Debt |
Debts falling due within 1 year | (94,662 | ) | (13,965 | ) | (108,627 | ) |
Debts falling due after 1 year | (1,937,865 | ) | 62,159 | (1,875,706 | ) |
(2,032,527 | ) | 48,194 | (1,984,333 | ) |
Total | (672,505 | ) | 303,581 | (368,924 | ) |
Action Housing And Support Limited (Registered number: 01548338) |
Notes to the Financial Statements |
for the Year Ended 31 March 2023 |
1. | STATUTORY INFORMATION |
Action Housing And Support Limited is a |
Registered number: |
Registered office: |
2. | ACCOUNTING POLICIES |
Summary of significant accounting policies |
Status |
The company is registered under the Companies Act 2006 and has been a registered charity since 21 April 1981. The charitable company registered with the Regulator of Social Housing as a housing provider on 2 June 2011. |
General information and basis of preparation |
Action Housing and Support Limited is a private registered provider of social housing in the United Kingdom. The address of the registered office is given in the company's information on page 1 of these financial statements. The nature of the company's operations and principal activities are the provision of social housing. |
The company constitutes a public benefit entity as defined by FRS 102. |
The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102. the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Statement of Recommended Practice for Social Housing Providers 2018, and with the Accounting Direction for private registered providers of social housing in England 2019. The financial statements are also prepared under the requirements of the Housing and Regeneration Act 2008 and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling, which is the functional currency of the association, and rounded to the nearest £. |
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
Going Concern |
The company has net assets of £6,862,222. This is a significant change from last year's position of net assets of £584,655 and is largely due to the movement on the defined benefit pension asset/liability of £5,653,000. |
The trustees have prepared a three year financial plan showing forecasts of income, expenditure and cash flow for the period to 31 March 2025. The forecasts show that the company will generate future surpluses and has sufficient cash reserves to be able to continue its operations for the foreseeable future. Therefore, the Trustees believe it is appropriate for the financial statements to be prepared on a going concern basis. |
Action Housing And Support Limited (Registered number: 01548338) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover represents rental and service charges income receivable in the year net of rent and service charge losses from voids, revenue grants from the government (local authorities) and Homes England. |
Grants |
Government grants are received from Homes England in respect of housing properties. These grants are recognised at the fair value of the asset received or receivable. Where the assets are accounted for using the model then the government grant is accounted for using the accruals model. The difference between the fair value of the asset and the consideration is recognised as a liability and amortised over the useful economic life of the asset. The amortisation is recognised within turnover. Where the assets are accounted for using the valuation model then the government grant is accounted for using the performance model so that turnover is taken once the performance conditions have been met. |
Government grants received as a contribution to revenue expenditure are recognised in the statement of comprehensive income on a systematic basis over the period in which the landlord recognises the related costs for which the grant is intended to compensate. The related expenditure is included under administrative expenses. Grants are recognised in the same period as the related expenditure provided the conditions for receipt have been satisfied and there is reasonable assurance that the grant will be received. |
Social Housing Grants |
Social Housing Grants (SHG) are made by Homes England to assist with acquisition or development. SHG grants are included in deferred income and released in line with the depreciation of the assets. |
Action Housing And Support Limited (Registered number: 01548338) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Housing properties |
Social housing properties are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended, such as the cost of acquiring land and buildings, development costs, interest charges on loans during the development period and expenditure on improvements. Expenditure on improvements will only be capitalised when it results in incremental future benefits such as increasing rental income, reducing maintenance costs or results in a significant extension of the useful economic life of the property. |
Major components of housing properties are depreciated at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows: |
Structure | 100 years |
Roofs | 60 years |
Kitchens | 10 years |
Bathrooms | 15 years |
Windows and doors | 20 years |
Boilers and fires | 12 years |
Electrics | 30 years |
Mechanical systems | 20 years |
Freehold land is not depreciated. Housing properties under construction are not depreciated until they are in use and the useful economic lives of all tangible fixed assets are reviewed annually. |
Other |
Other tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. |
Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows: |
Land | Not depreciated |
Buildings - freehold | 50 years straight line |
Buildings - long leasehold | Over lease term |
Office furniture | 5 years straight line |
Office equipment | 4 years straight line |
Computer equipment | 3 years straight line |
Impairment |
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. |
If such indication exists, the recoverable amount is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in expenditure through the statement of comprehensive income. |
Action Housing And Support Limited (Registered number: 01548338) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Debtors and creditors receivable / payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income and expenditure in other administrative expenses. |
Rights of social landlords to have improvement works carried out to properties by a third party (such as a local authority) are recognised as prepayments where payment has occurred in advance of the works being carried out and receipts in advance from the same third party recognised as liabilities. Assets and liabilities of income and expenditure are not offset. |
Tax |
The company is considered to pass the tests set out in Sch. 6, para. 1 of the Finance Act 2010 and therefore it meets the definition of a charitable company for the UK corporation tax purposes. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Pt. 11, CH. 3 of the Corporation Tax Act 2010 or s. 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. |
Action Housing And Support Limited (Registered number: 01548338) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks of paint, papers, sheets, blankets, cutlery and crockery are not taken, and items are charged in the accounts as an expense when purchased. The trustees do not consider that the value of stock is either significant or material. |
Leases |
Rentals paid under operating leases are charged in the income and expenditure account as incurred. |
Pension costs |
The company operates a defined benefit pension plan for the benefit of its employees. A liability for the company's obligations under the plan is recognised net of plan assets. the net change in the net defined benefit liability is recognised as the cost of the defined benefit plan during the period. Pension plan assets are measured at fair value and the defined benefit obligation is measured on an actuarial basis using the projected unit method. Actuarial valuations are obtained at least triennially and are updated at each balance sheet date. |
Employee benefits |
When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. |
Restricted reserves |
Restricted reserves are those reserves which are only expendable in accordance with the wishes of the funder or regulatory body. Restricted reserves include funds raised in response to a specific appeal. Revenue and expenditure cannot be directly set against restricted reserves but is taken through the income and expenditure account and then a transfer to restricted reserves is made as appropriate. |
Judgements and key sources of estimation uncertainty |
There are no judgements (apart from those involving estimates) which have been made in the process of applying the above accounting policies that have had a significant effect on amounts recognised in the financial statements. |
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include: |
Property valuations - the carrying value of property and annual impairment reviews are subject to assessment involving estimates on future rental yield and state of repair of the properties. |
South Yorkshire Pension Fund Liability - the present value of the liability depends on a number of factors that are determined on a actuarial basis using a variety of assumptions. Any changes in these assumptions will impact the carrying value of the pension liability. |
Loans and borrowings |
Loans and borrowings are initially recognised at the transactions price including transactions costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a financial transaction it is measured at fair value. |
Provisions |
Provisions are recognised when the RP has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated. |
Provisions for cyclical maintenance or major works to existing stock are not made unless they represent commitments or obligations at the Balance Sheet date where there is no discretion to avoid or delay the expenditure. |
Action Housing And Support Limited (Registered number: 01548338) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
3. | TURNOVER |
The turnover and surplus before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
Rental income is included in the accounts after providing bad debts of £144,927 (2022: £152,123) and net of rental voids incurred during the year to the value of £372,502 (2022: £403,044). |
Homes England and other grant income contains £76,254 (2022: 69,599) of amortised grant, the remainder relates to non-capitalised grant income. |
4. | STAFF COSTS |
All employees were involved in direct charitable services, with a proportion of time of some staff taken up by administrative duties. |
2023 | 2022 |
£ | £ |
Wages and salaries | 1,577,629 | 1,485,435 |
Social security costs | 139,765 | 130,113 |
Other pension costs | 137,100 | 195,093 |
1,854,494 | 1,810,641 |
Agency costs | 14,784 | 19,997 |
Total | 1,869,278 | 1,830,638 |
Other pension costs include net income totalling £31,000 (2022: £3,000 net cost), being the net pension costs movement as disclosed in note 17 to the accounts and in accordance with FRS 102. |
Action Housing And Support Limited (Registered number: 01548338) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
The average number of employees, including members of the executive team, calculated on a full time equivalent basis was 64 employees (2022: 58). Full time staff work 39 hours per week and each correspond to 1 FTE. Part time staff have their hours pro-rated. |
One member of staff received a redundancy payment of £10,302 during the year (2022: 1 employee totalling £1,454). |
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was: |
In the band £100,000 and £110,000 - 1 (2022: Nil). |
In the band £90,000 and £100,000 - Nil (2022: 1). |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest |
Action Housing And Support Limited (Registered number: 01548338) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
6. | SURPLUS BEFORE TAXATION |
General needs | Supporte d housing | Central office | Restricted | 2023 Total | 2022 Total |
£ | £ | £ | £ | £ | £ |
Income |
Rental income | 723,104 | 4,044,775 | - | - | 4,767,879 | 4,405,429 |
Contracted income | - | 1,009,562 | - | - | 1,009,562 | 651,500 |
Other grants | 31,794 | - | - | 3,270 | 35,064 | 16,000 |
Commercial premises | - | - | 38,229 | - | 38,229 | 37,623 |
Other income | 4,801 | - | (1,451 | ) | - | 3,350 | 391,740 |
Homes England | - | - | - | 76,254 | 76,254 | 181,164 |
Turnover from SHL | 759,699 | 5,054,337 | 36,778 | 79,524 | 5,930,338 | 5,683,456 |
Operating expenditure |
Salaries | (279,135 | ) | 1,091,239 | (484,120 | ) | - | (1,854,494 | ) | (1,814,571 | ) |
Other staff costs | (1,465 | ) | (39,328 | ) | (81,028 | ) | - | (121,821 | ) | (122,201 | ) |
Premises costs | (1,988 | ) | - | (179,526 | ) | - | (181,514 | ) | (165,858 | ) |
Office costs | - | - | (127,675 | ) | - | (127,675 | ) | (85,213 | ) |
Insurance | - | - | (126,431 | ) | - | (126,431 | ) | (107,175 | ) |
General costs | (13,310 | ) | (41 | ) | (271,948 | ) | - | (285,299 | ) | (181,902 | ) |
Support costs | (4,109 | ) | (43,647 | ) | (10,127 | ) | (5,047 | ) | (62,930 | ) | (61,751 | ) |
Maintenance / van costs | (66,778 | ) | (15 | ) | - | - | (66,793 | ) | (67,892 | ) |
Housing costs | (766,252 | ) | 1,383,789 | (1,025 | ) | (48 | ) | (2,151,114 | ) | (2,026,235 | ) |
Depreciation | (148,553 | ) | (94,514 | ) | (60,976 | ) | - | (304,043 | ) | (334,354 | ) |
Pension service/ finance costs | - | - | (103,000 | ) | - | (103,000 | ) | (115,000 | ) |
Profit/(loss) on sale of tangible fixed assets | 6,853 | - | - | - | 6,853 | 43,566 |
Operating expenditure on SHL | 1,274,737 | 2,652,573 | (1,445,856 | ) | (5,095 | ) | (5,378,261 | ) | (5,038,586 | ) |
Operating surplus/ (loss) on SHL | (515,038 | ) | 2,401,764 | (1,409,078 | ) | 74,429 | 552,077 | 644,870 |
Action Housing And Support Limited (Registered number: 01548338) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
Included within general costs is auditor's remuneration for the year totalling £18,000 (2022: £17,124), this expenditure related solely for audit services. |
7. | TAXATION |
Analysis of the tax charge |
No liability to UK corporation tax arose for the year ended 31 March 2023 nor for the year ended 31 March 2022. |
8. | ACCOMMODATION OWNED, MANAGED AND IN DEVELOPMENT |
Number of units at end date 2023 |
Number of units at end date 2022 |
Social housing |
General needs housing | 120 | 117 |
Sustainable tenancy | 26 | 19 |
Supported housing | 31 | 28 |
Total Social housing | 177 | 164 |
Non-social housing |
General needs housing | 18 | 18 |
Sustainable tenancy | 101 | 102 |
Supported housing | 130 | 151 |
Total Non-Social housing | 249 | 271 |
Total owned and managed | 426 | 435 |
9. | TRUSTEES REMUNERATION AND BENEFITS |
During the prior year one trustee was paid remuneration for their role as Chief Executive, not in their capacity as a trustee. They resigned as a Trustee on 14 October 2021. Remuneration for this period was £Nil (2022: £60,290). Employer pension contributions for this period totalled £Nil (2022: £9,564). |
Trustee expenses |
There were no travel expenses paid to Trustees (2022: £Nil). |
10. | BOARD AND KEY MANAGEMENT PERSONNEL REMUNERATION |
The total remuneration for key management personnel, including employer's national insurance amounted to £309,192 (2022: £231,059). |
During the year total pensions of £46,008 (2022: £34,563) were payable to key management personnel. |
The highest paid director received £104,073 (2022: £99,835) remuneration. Employer pension contributions of £28,784 (2022: £11,470) were paid into a personal pension scheme with no enhancements applied. |
Action Housing And Support Limited (Registered number: 01548338) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
11. | SURPLUS/(DEFICIT) |
Surplus/(deficit) is stated after charging: |
2023 | 2022 |
£ | £ |
Auditor's remuneration (including expenses and benefits in kind) for audit |
18,000 |
17,124 |
Depreciation of housing properties and components | 228,766 | 222,169 |
Depreciation of other tangible assets | 75,276 | 112,184 |
Grants released against depreciation | (76,254 | ) | (69,599 | ) |
Rent losses from bad debts | 144,927 | 152,123 |
Operating lease rentals | 1,152,274 | 1,072,099 |
12. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Long | and |
property | leasehold | fittings | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2022 |
Additions |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
Action Housing And Support Limited (Registered number: 01548338) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
13. | HOUSING PROPERTIES FOR LETTING |
Land and buildings | Leasehold improvements | Total |
£ | £ | £ |
COST |
At 1 April 2022 | 7,167,972 | 1,281,921 | 8,449,893 |
Additions | 1,202,573 | 2,647 | 1,205,220 |
Disposals | (50,675 | ) | - | (50,675 | ) |
At 31 March 2023 | 8,319,870 | 1,284,568 | 9,604,438 |
DEPRECIATION |
At 1 April 2022 | 724,905 | 630,920 | 1,355,825 |
Charge for the year | 108,719 | 120,047 | 228,766 |
Eliminated on disposal | (6,104 | ) | - | (6,104 | ) |
At 31 March 2023 | 827,520 | 750,967 | 1,578,487 |
NET BOOK VALUE |
At 31 March 2023 | 7,492,350 | 533,601 | 8,025,951 |
At 31 March 2022 | 6,443,067 | 651,001 | 7,094,068 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors (gross social housing rent arrears) |
Provision for bad and doubtful debts | (174,601 | ) | (210,716 | ) |
Trade debtors (other) | 185,515 | 156,962 |
Prepayments and accrued income |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 17) |
Trade creditors |
Social security and other taxes |
Other creditors |
Accruals and deferred income |
Deferred income capital grants | 76,254 | 82,268 |
Bank loans totalling £1,984,333 (2022: £2,032,527) are secured by a first legal charge over freehold and leasehold residential properties owned by the charity. The above loans are repayable monthly over a 25 year period at rates of interest charged at 2.5% over the bank's base rate, with a bullet repayment at the end of year ten (2027). |
Action Housing And Support Limited (Registered number: 01548338) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 17) |
Other creditors |
Deferred income capital grants | 2,869,424 | 2,498,345 |
Bank loans, other creditors and deferred income re capital grants include aggregate amounts of £4,324,181 (2022: £3,796,614) which fall due after five years and which are payable by instalments. |
17. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 1,454,757 | 1,559,217 |
18. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
Action Housing And Support Limited (Registered number: 01548338) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
19. | RESERVES |
BF 01.04.22 | Income | Expenditure | Transfers | Gains/ (losses) | CF 31.03.23 |
£ | £ | £ | £ | £ | £ |
Unrestricted reserves |
General reserves | 4,027,401 | 5,843,743 | (5,269,606 | ) | - | 6,853 | 4,608,391 |
Pension reserves | (3,846,000 | ) | - | (72,000 | ) | - | 5,725,000 | 1,807,000 |
181,401 | 5,843,743 | (5,341,606 | ) | - | 5,731,853 | 6,415,391 |
Restricted reserves |
South Yorkshire Offender Partnership | 7,036 | - | - | - | - | 7,036 |
Homes England | 359,304 | 76,254 | (30,900 | ) | - | - | 404,658 |
Derbyshire Domestic Abuse | 14,668 | - | (2,761 | ) | - | - | 11,907 |
Foundation Derbyshire | 1,730 | - | (1,730 | ) | - | - | - |
Open Gate Trust | 273 | - | - | - | - | 273 |
Arbor PCC | 885 | - | (885 | ) | - | - | - |
Church on the Bus | 123 | - | - | - | - | 123 |
Morrisons Foundation | 4,222 | - | - | - | - | 4,222 |
Anonymous | 13 | - | (13 | ) | - | - | - |
Mansfield District Council | 15,000 | - | - | - | - | 15,000 |
B&Q Foundation Stonecross | - | 5,000 | (1,388 | ) | - | - | 3,612 |
403,254 | 81,254 | (37,677 | ) | - | - | 446,831 |
Total reserves | 584,655 | 5,924,997 | (5,379,283 | ) | - | 5,731,853 | 6,862,222 |
Restricted reserves consist of the following: |
South Yorkshire Offender Partnership: Hope renovation project education and resources in Rotherham. |
Homes England: Bringing empty homes into use within the private sector. |
Derbyshire Domestic Abuse: The provision of resources to ensure that our support line in Derbyshire is accessible by all victims of domestic abuse including those from marginalised/isolated communities. |
Foundation Derbyshire: To fund educational, developmental and life enhancing experiences as chosen by our young people in Chesterfield. |
Open Gate Trust: Provision of Lifewise sessions at Newbold Court. |
Action Housing And Support Limited (Registered number: 01548338) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
Arbor PCC: Funding for client activities and equipment to deliver bikes, water bottles, walking kit, entry to museums, etc. |
Church on the Bus: Microwaves for Newbold Court clients. |
Morrisons Foundation: Provision of client activities, hobbies and interests at Newbold and Highfield Road. |
Anonymous: To help individuals or families in need, due to hardship or distress, in Nottinghamshire. |
Mansfield District Council: Works at the Carr Bank Pavilion to make accommodation safe and comfortable. |
B&Q Foundation Stonecross: To fund the provision of kitchen equipment for Stonecross and a sofa for Resource Centre. |
Action Housing And Support Limited (Registered number: 01548338) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
Prior year reserves |
BF01.04.21 | Income | Expenditure | Transfers | Gains/ (losses) | CF31.03.22 |
£ | £ | £ | £ | £ | £ |
Unrestricted reserves |
General reserves | 3,305,275 | 5,493,999 | (4,815,439 | ) | - | 43,566 | 4,027,401 |
Pension reserves | (5,230,000 | ) | - | (118,000 | ) | - | 1,502,000 | (3,846,000 | ) |
(1,924,725 | ) | 5,493,999 | (4,933,439 | ) | - | 1,545,566 | 181,401 |
Restricted reserves |
South Yorkshire Offender Partnership | 7,036 | - | - | - | - | 7,036 |
Homes England | 328,927 | 170,333 | (139,956 | ) | - | - | 359,304 |
Derbyshire Domestic Abuse | 14,668 | - | - | - | - | 14,668 |
Foundation Derbyshire | 2,000 | - | (270 | ) | - | - | 1,730 |
Open Gate Trust | 200 | - | 73 | - | - | 273 |
Arbor PCC | 260 | 625 | - | - | - | 885 |
Church on the Bus | 123 | - | - | - | - | 123 |
Morrisons Foundation | 4,670 | - | (448 | ) | - | - | 4,222 |
Voluntary Action Rotherham | 5,000 | - | (5,000 | ) | - | - | - |
RMBC Section 106 | - | 616 | (616 | ) | - | - | - |
Anonymous | - | 1,000 | (987 | ) | - | - | 13 |
Mansfield District Council | - | 15,000 | - | - | - | 15,000 |
Land Aid | - | 1,381 | (1,381 | ) | - | - | - |
Derby City | - | 629 | (629 | ) | - | - | - |
362,884 | 189,657 | (149,287 | ) | - | - | 403,254 |
Total reserves | (1,561,841 | ) | 5,683,583 | (5,082,653 | ) | - | 1,545,566 | 584,655 |
Action Housing And Support Limited (Registered number: 01548338) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
20. | EMPLOYEE BENEFIT OBLIGATIONS |
Certain employees of Action Housing and Support Limited participate in the South Yorkshire Pension Fund, a defined benefit, funded statutory scheme administered by the South Yorkshire Pensions Authority in accordance with the Local Government Pension Scheme Regulations 1995. An actuarial valuation of this fund was carried out in accordance with the Regulations as at 31 March 2019. |
The pension cost is assessed every three years in accordance with the advice of a qualified independent actuary. The assumptions and other data that have the most significant effect on the determination of the contributions are as follows: |
The end of year figures for the market value of the assets and split of the assets between investment categories have been calculated as at 31 March 2023. The corresponding figures for the start of the year have been calculated as at 31 March 2023. The major assumptions used by the actuary were: |
Latest full actuarial valuation | 31 March 2019 |
Market value of assets at date of the last full valuation | £8,440 million |
The amounts recognised in the balance sheet are as follows: |
Defined benefit |
pension plans |
2023 | 2022 |
£ | £ |
Present value of funded obligations | ( |
) | ( |
) |
Fair value of plan assets |
1,823,000 | (3,826,000 | ) |
Present value of unfunded obligations | ( |
) | ( |
) |
Surplus/(Deficit) | ( |
) |
Net asset/(liability) | ( |
) |
The amounts recognised in surplus or deficit are as follows: |
Defined benefit |
pension plans |
2023 | 2022 |
£ | £ |
Current service cost |
Net interest from net defined benefit asset/liability |
532,000 |
433,000 |
Past service cost |
678,000 | 634,000 |
Actual return on plan assets |
Action Housing And Support Limited (Registered number: 01548338) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
20. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
Changes in the present value of the defined benefit obligation are as follows: |
Defined benefit |
pension plans |
2023 | 2022 |
£ | £ |
Opening defined benefit obligation |
Current service cost |
Contributions by scheme participants |
Interest cost |
Benefits paid | ( |
) | ( |
) |
Remeasurements: |
Actuarial (gains)/losses from changes in demographic assumptions |
686,000 |
- |
Actuarial (gains)/losses from changes in financial assumptions |
(8,655,000 |
) |
(478,000 |
) |
Oblig other remeasurement | 1,525,000 | 55,000 |
Changes in the fair value of scheme assets are as follows: |
Defined benefit |
pension plans |
2023 | 2022 |
£ | £ |
Opening fair value of scheme assets |
Contributions by employer |
Contributions by scheme participants |
Interest received | 429,000 | 318,000 |
Benefits paid | (227,000 | ) | (182,000 | ) |
Remeasurements: |
Return on plan assets (excluding interest income) |
(938,000 |
) |
1,079,000 |
Assets other remeasurement | 219,000 | - |
Action Housing And Support Limited (Registered number: 01548338) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
20. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
The amounts recognised in other comprehensive income are as follows: |
Defined benefit |
pension plans |
2023 | 2022 |
£ | £ |
Actuarial (gains)/losses from changes in demographic assumptions |
(686,000 |
) |
- |
Actuarial (gains)/losses from changes in financial assumptions |
8,655,000 |
478,000 |
Oblig other remeasurement | (1,525,000 | ) | (55,000 | ) |
Return on plan assets (excluding interest income) |
(938,000 |
) |
1,079,000 |
Assets other remeasurement | 219,000 | - |
5,725,000 | 1,502,000 |
The major categories of scheme assets as amounts of total scheme assets are as follows: |
Defined benefit |
pension plans |
2023 | 2022 |
£ | £ |
Equities |
Government bonds | 3,585,000 | 3,816,000 |
Property |
Cash/liquid | 156,000 | 159,000 |
15,586,000 | 15,899,000 |
Principal actuarial assumptions at the balance sheet date (expressed as weighted averages): |
2023 | 2022 |
Rate of inflation |
Rate of increase in salaries |
Rate of increase in pensions |
Discount rate |
Action Housing And Support Limited (Registered number: 01548338) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2023 |
20. | - continued |
Mortality assumptions |
The current mortality assumptions include sufficient allowance for future improvement in mortality rates. The assumed life expectations on retirement aged 65 are: |
2023 | 2022 |
Retiring today/current pensioners |
Males | 20.5 | 22.6 |
Females | 23.7 | 25.4 |
Retiring in 20 years/future pensioners |
Males | 21.5 | 24.1 |
Females | 25.2 | 27.3 |
Amounts recognised in the income and expenditure account: |
2023 | 2022 |
Current service cost | (146,000 | ) | (201,000 | ) |
Effect of curtailment or settlements | - | - |
Past service cost | - | - |
Net interest cost | (103,000 | ) | (115,000 | ) |
Administrative costs | - | - |
(249,000 | ) | (316,000 | ) |
Amounts recognised in the statement of total recognised gains and losses: |
2023 | 2022 |
Actuarial gains / (losses) | 5,725,000 | 1,502,000 |
21. | RELATED PARTY DISCLOSURES |
In the prior financial year, WINTAI Services Ltd was engaged to provide a statutory data protection service and also data protection consultancy services. A Director of WINTAI Services Ltd is a family member of Atholl Stott, the CEO. Fees for this work totalled £1,188 (2022: £2,023). At the year end, the balance owed to WINTAI Services Ltd was £nil. |
Niall Macpherson Property Services, owned by Niall Macpherson, a Trustee, provided technical consultancy services, to review the property portfolio for impairment. Fees for this work totalled £1,500 (2022: £1,650), which are included in accruals. |
An annual membership fee was paid to Women in Social Housing (WISH). WISH was engaged to provide management training which was contracted out to Compassionate Leaders. Helen Greig, a Co Opted Trustee, was the Managing Director of WISH and resigned from wish on 31 January 2022. Fees for annual corporate membership totalled £996 in the 2022 financial year. |
Hill Dickinson LLP provided professional services to the association during the year. Paula Warnock, a Trustee, is a partner at Hill Dickinson LLP. Fees for this work totalled £16,988 (2022: £800) and the year end balance was £Nil (2022: £Nil). |