2022-03-31-accounts - Target Housing Limited

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Contents				Page
Company information
Board report				2-11
Statement ofBoard's	responsibilities			12
Independent auditors'	report			13—16
Accounting policies				17—19
Income and Expenditure		Account		20
Statement ofComprehensive			Income	21
Balance sheet				22
Cash flow statement				23
Notes to the financial	statements			24 - 33

Independent Auditors. report to the members of Target Housing Limited (Limited by Guarantee) For the year ended 31 March 2022 There are inherent limitations in the audit prcKedures described above and the more removed non- compliance with laws and regulations is from the events and transactions refiecled in the financial slalements, the less likely we are to become aware of it. Aso. the risk of not detecting a material misslalemenl due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by. for example, forgery or intentional mispresentatIOns, or through coIIu5ion. A further description of our respN)nsibilFties is available on the Financial Reporting Council's website at www.frc.org.uklaudilorslaudil-assurancelauditor-s-responsibililies-for-Ihe-audil-of-Ihe-fildescriplion-of -the-audilor's-responsibililies-for. ThTrs description fomis part of (Mjr audilorfs retKfft. Use of our report This report is made solely to the housing associalK>n's members. as a body. in accordan with Chapter 3 of Part 16 of the Companies Act 2006 and section 137 of the Housing and Regeneration Acl 2008. Our audit work has been undertaken so that we might stsle lo the association's members those mallers we are required lo stale lo them in an auditor'5 report and for no other purpose. To the fullest exlenl permilled by law, we do not accept or assume responsibilty lo anyone other than the association and ils members as a body. for our audit work. for this report. (K for the opinions we have formed. Simon Bladen, Senior Statutory Auditor for and on behalf of Hawsons Chartered Accwntants. Statutory Auditor Pegasus House 463a Glossop Road Sheffield S10 2QD .2022 16

		2022	2021
Turnover		12,231,814	10,122,921
Less; Operating costs		(12,074,527)	(9,070,236)
Operating surplus		157,287	1,052,685
Interest receivable and similar income		86	56
Interest payabfe and similar charges		(63,539)	(61,113)
Surplus on ordinary	activities for the year	93,834	991,628

			2022	2021
Surplus	for the year		93,834	991,628
Actuarial	gains/(losses)	in respect ofdefined benefit pension	114,000	(270,000)
scheme
			207,834	721,628
Total comprehensive		income for the year	207,834	721,628

			Company
				Note	2022	2021
					8
Fixed assets
Properties at depreciated		cost		7	8,289,599	4,378,564
Other fixed assets				8	144,463	71,929
Total fixed assets					8,434,062	4,450,493
Current assets
Debtors				10	850,111	719,517
Cash at bank and in hand				9	1,566,886	2,773,546
					2,416,997	3,493,063
Creditors —amounts	falling due within		one year	11	~Sltt613,	803,219
Net current assets					1,546,384	2,689,844
Total assets less current		liabilities			9,980,446	7,140,337
Creditors —amounts	falling due after		one year	12	(6,702,737)	(3,949,462)
Defined benefit liability				19	(302,000)	(423,000)
Total net assets					2,975,709	2,767,875
Capital and reserves
Revenue reserve				16	2,975,709	2,753,623
Restricted reserves				16	-	14,252
					2,975,709	2,767,875

			Note	2022	2021
				6
Cash flow from operating	activities		17	491,183	1,447,196
Cash flow from investing	activities
Payments to acquire tangible fixed assets Receipts from sales oftangible fixed assets				(4,392,772)	(1,955,901) 56,058
Interest received				86	56
Net cash flow from investing activities				(4,392,686)	(1,899,787)
Cash flow from financing	activities
Interest paid				(63,539)	(61,113)
Repayment oflong term loans				(274,018)	(224,659)
Cash inflow from new borrowings				3,032,400	2,550,000
Net cash flow from financing activities				2,694,843	2,264,228
Net (decrease)/Increase in	cash and cash equivalents			(1,206,660)	1,811,537
Cash and cash equivalents	at the beginning	ofthe		2,773,546	961,909
reporting period
Cash and cash equivalents	at the end ofthe
reporting period				1,566886	2.773,546
Cash and cash equivalents	consists of:
Cash at bank and in hand			9	1566,886	2,773,545

For the year	For the year	ended 31 March	2022
Social housing income and expenditure
			2022f	2021
Gross rents receivable			6,332,834	5,098,627
Supporting People income			1,153,687	805,398
Revenue grants receivable			281,261	216,731
AASCincome			4,062,564	3,600,926
Other income			401,468	401,239
			12,231,814	10,122,921
Social housing operating costs			(12,074,527)	(9,070,236)
Operating surplus			157,287	1,052,685
Operating surplus
Operating surplus is stated after charging:
			2022	2021
			6	F
Auditors remuneration
-as auditors			3,900	3,700
-for non audit services			7,140	6,362
Depreciation			409,203	249,257
Board and key management	personnel	remuneration

The ave	rage n	umber		ofpersons employed during th	e year expressed in full time equivalen	ts was:
					2022	2021
					No.	No.
Administration		staff			27	22
Housing	development			staff	121	96
					148	118
Total employee		emoluments:			2022	2021
						f.
Gross salaries					3,324,970	2,483,392
Employers national			insurance		281,574	198,916
Pension	contributions				202,924	125,807
					3,809,468	2,808,115

			2022	2021f
	Bank deposits		86	56
6.	Interest	payable
			2022f	2021
	Mortgage	interest	63,539	61,113

Tangible fixed assets —housing	properties	(for letting)
			Properties
Cost
As at 1 April 2021			5,275,074
Additions			4,277,977
Disposals
As at 31 March 2022			9,553,051
Depreciation
As at 1 April 2021			896,510
Charge for the year			366,942
Eliminated on Disposals
As at 31 March 2022			1,263,452
Net book value
As at 31 March 2022			8,289,599
As at 31 March 2021			4,378,564

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9.	Cash and cash equivalents						2022	2021
							6
	Cash at bank and in		hand				1,566,886	2,773,546
10.	Debtors						2022	2021
	All receivable within one year:
	Rents receivable						196,821	208,108
	Other trade debtors						535,720	421,402
	Prepayments and accrued income						117,570	90007
							850,111	719,517
	Included within	rents	receivable	is a provision		off215,553(2021:6204,668) in respect of bad and
	doubfful debts	in relation to social housing			rent arrears.
11.	Creditors						2022	2021
	Amounts fatling	due within one year:					6
	Trade creditors						485,536	376,597
	Accruals and deferred		income				253,301	298,489
	Bank loans						119,429	116,201
	Other loans						12,347	11,932
							870,613	803,219
12.	Creditors						2022	2021
	Amounts falling	due after one year:
	Accruals and deferred		income					1,464
	Bank loans						1,987,454	1,466,266
	Otherloans						4,715,283	2,481,732
							6,702,737	3,949,462
	Included within	creditors are the		following	amounts		due after more than 5years:
							2022	2021
	After more than	five years					6,186,634	3,421,264

						2022	2021
						8
	Operating leases which expire:
	Within one year					261,925	216,832
	Within two to five years					528,362	616,557
	After five years					14,000	30,986
						804,287	666,375
14.	Accommodation		in management			2022	2021
	Social housing	properties		owned
	General		needs housing			88	51
	Social housing	properties		managed
	General		needs housing			428	321
	Non-social housing properties				managed
	Asylum		housing			349	324
	Total owned and		managed			865	696

		B/fwd F	Incomef	Expenditure 8	Pension F	C/fwd 6
Restricted funds
SMITF Welcome Fund		1,667		(1,667)
BLF Hull EU Revenue SYCFCSE		8,517 70		(8,517) (70)
SYFSprinklers			1,955	(1,955)
Children in Need		3,998		(3,998)
Clothworkers			1,000	(1,000)
Efficiency North			1,000	(1,000)
RMBC Adult care			50,000	(50,000)
Small individual	grants		9,167	(9,167)
Unrestricted funds		2,753,623	12,168,778	~12,060,602	114,000	2,975709
		2,767,875	12,231,900	(12,138,066)	114,000	2,975,709

		2022	2021
		6	E
Total comprehensive	income for the year	207,834	721,628
interest payable		63,539	61,113
Interest receivable Depreciation		(86) 409,203	(56) 249,257
(Profit) on disposal (Increase)/decrease	in debtors	(130,594)	(6,018) 28,953
(Decrease)/Increase	in creditors	(58,713)	392,319
Net cash flow from activities	operating	491,183	1,447,196

required to meet their share ofthe scheme deficit o the scheme.	n an annuity purchase basis on withdrawal	from
The present value ofthe defined benefit obligation,	fair value ofassets and the defined benefit	liability
as a result is as follows:
	2022	2021
	8000s	6000s
Fair value ofscheme assets Present value ofdefined benefit obligation Defined benefit pension scheme deficit	1,943 2,245 1,681 2,104 ~332~423

Changes	in the defined benefit obligation are as follow	s:
		2022	2021
		KOOOs	EOOOs
Obligation	at the start ofthe year	2,104	1,576
Service cost		54	30
Interest expense		46	38
Actuarial	(gains) and losses	48	468
Benefits paid		(36)	(36)
Member	contributions	25	24
Other		4	4
Obligation	at the end ofthe year	2,245	2,104

				2022	2021
				8000s	KOOOs
Fair value at start ofthe year				1,681	1,385
Interest income				37	34
Return on plan assets, excluding	amounts	included	in net interest	162	198
Employer contributions				74	76
Member contributions				25	24
Deficit contributions				(36)	(36)
Fair value at the end ofthe year				1,943	1,681

				2022	2021
				ROOOs	FOOOs
Deficit funding		liability at 1 April 2021		423	191
Actuarial	movements		during the year	(114)	270
Current	service	cost	during the year	67	38
Deficit contributions			paid during the year	(74)	(76)
Defined	benefit	liability at 31 March 2022		302	423

The principal	actuarial assu	mptions used are as follows:
			2022	2021
			%per annum	%per annum
Discount rate			2.79	2.17
Inflation (RPI)			3.59	3.28
inflation (CPI)			3.20	2.86
Salary Growth			4.20	3.86
			75%of	75%of
Allowance for	commutation	ofpension for cash at retirement	Maximum	maximum
			allowance	allowance
The mortality	assumptions	adopted at 31 March 2022 imply the following	life expectancies

The mortality	a	ssumptions adopted at 31 March 2022 im	ply the following life expectancies
			Life
			expectancy at
			age 65
			(Years)
Male retiring	in	2022	21.1
Female retiring		in 2022	23.7
Male retiring	in	2042	22.4
Female retiring		in 2042	25.2