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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|
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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
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|||Note|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|
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||||Note|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|
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||||Company|Number —2787689||||
|---|---|---|---|---|---|---|---|
||||||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|
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||||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|
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|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|||
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|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|
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|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|
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|||||||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|
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|||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|
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|||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|
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|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||
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|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|
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|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|
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