2023-03-31-accounts - Target Housing Limited

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Contents				Page
Company information
Board report				2-12
Statement ofBoard's	responsibilities			13
Independent auditors'	report			14 —17
Accounting policies				18—20
Income and Expenditure		Account		21
Statement ofComprehensive			Income	22
Balance sheet				23
Cash flow statement				24
Notes to the financial	statements			25-35

Independent Auditors. report to the members of Target Housing Limited (Limited by Guarantee) For the year ended 31 March 2023 There are inherent limitations in the audit procedures described above and the more removed non- compliance with laws and regulations is from the events and transactions refiecled in the financial slalemenls, the less likely we are lo beeome aware of it. Also. the risk of not delecling a material misstalemenl due lo fraud is higher than the risk of not detecting one resulting from error. as fraud may involve deliberate concealment by. for example. forgery (x inlenlional misfepresenlalions. or through collusion. A further description of our responsibiltthes is available on the Financial Reporting Council's website at www.frc.org.uklaudilorslaudit-assurancelauditor-5-responsibililies-for-lhe-audil-of-the-fdes¢r1PIlon-0f -the-audilor's-responsibilities-for. This description fom15 part of our audilirfs report. Uso of our report This report is made solely to the housing association's members. as a bcmly, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and seCtn 137 of the Housing and Regeneration Act 2008. Our audit work has been undertaken so that we might slate to the association's members those fT7atters we are required lo stste to them in an auditor's report and for no other purpose. To the fullest extent permitted by law. we do not accept or assume responsibility to anyone other than the association and ils members as a body, for our audit work. for this reporL or for the opinions we have fomied. Simon Bladen. Senior Stslutory AudilL for and on behalf of Hawsons Chartered Accounlanls. Statutory Auditor Pegasus House 463a Glossop Road Sheffield S10 2QO -.2023 17

			(As restated)
	Note	2023	2022
Turnover		13,920,051	12,053,660
Less: Operating costs		(13,822,878)	(12,027,059)
Operating surplus	1	97,173	26,601
Interest receivable and similar income	5	453	86
Interest payable and similar charges	6	(121,270)	(63,539)
Oegcit on ordinary activities forthe year		~23,644	~36,352

						(As restated)
				Note	2023	2022
Deficit for	the year				~28844	~36,852
Actuarial	gains/(losses)	in respect of defined	benefit pension		(42,000)	114,000
scheme
					(65,644)	77,146
Total comprehensive		(expenditure)/income	forthe year		~65644	77148

						(As restated)
				Note	2023f	2022
Fixed assets
Properties at depreciated			cost	7	10,011,337	8,400,941
Other fixed assets				8	162,730	144,463
Total fixed assets					10,174,067	8,5454D4
Current assets
Debtors				10	1,099,306	850,111
Cash at bank and	in hand			9	758,316	1,566,886
					1,857,622	2,418,997
Creditors —amounts		falling due within one year		11	~4,589,295	~775D84
Net current assets					768,329	1,841,913
Total assets less	current		liabilities		10,942,396	10,187,317
Creditors —amounts		falling due after one year		12	(7,921,860)	(7,066,137)
Defined benefit liability				19	(267,000)	(302,000)
Total net assets					2,753,536	2,819,180
Capital and reserves
Revenue reserve				16	2,753,536	2,819,180
Restricted reserves				16
					2,753,536	2,819,180

						(As restated)
				Note	2023	2022
					6	f
Cash flow from operating	activities			17	565,126	334,251
Cash flow from investing	activities
Payments to acquire tangible		fixed assets			(2,187,774)	(4,440,240)
Receipts from sales of tangible fixed assets					900
Interest received					453	86
Net cash flow from investing		activities			(2,186,421)	(4,440,154)
Cash flow from financing	activities
Interest paid					(121,270)	(63,539)
Repayment of long term loans					(78,290)	(69,616)
Cash inflow from new borrowings					1,012,285	3,032,400
Net cash flow from financing		activities			812,?25	2,899,243
Net (decrease) in cash and cash equivalents					(808,570)	(1,206,660)
Cash and cash equivalents		at the beginning	ofthe		1,566,886	2,?73,546
reporting period
Cash and cash equivalents		at the end ofthe
reporting period					758,316	1,566,686
Cash and cash equivalents		consists of:
Cash at bank and in hand				9	758,316	1,566,886

Social housing in	come and expenditure
			(As restated)
		2023f	2022 E
Gross rents receivable		7,719,287	6,332,834
Supporting People	income	1,240,708	1,153,687
Revenue grants receivable		130,076	103,107
AASC income		4,406,807	4,062,564
Other income		423,173	401,468
		13,920,051	12,053,660
Social housing operating costs		(13,822,878)	(12,027,059)
Operating surplus		97,173	26,601
Operating surplus
Operating surplus	is stated after charging:
		2023	2022
		6
Auditors remuneration
-as auditors		4,290	3,900
- for non audit services		6,710	7,140
Depreciation		568,986	409,203

The average n	umbe	r	ofpersons employed during th	e year expressed in full time equivalent	s was:
				2023	2022
				No.	No.
Administration	staff			30	27
Housing development			staff	148	121
				178	148
Total employee	emoluments:			2023f	2022f
Gross salaries				4,095,636	3,324,970
Employers national		insurance		366,363	281,574
Pension contributions				178,423	202,924
				4,640,422	3,809,468

	f60,000was:	y
		2023	2022
		No.	No.
	In the band f100,001 - f110,000
	In the band f110,001 - 120,000
5,	Interest receivable
		2023	2022f
	Bank deposits	453	86
6.	Interest payable
		2023f	2022f
	Mortgage interest	121,270	63,539

Tangible fixed assets —housing properties (for letting)
	Properties
	6
Cost
As at 1 April 2022 (as restated)	9,664,393
Additions	2,107,870
Disposals
As at 31 March 2023	11,772,263
Depreciation
As at 1 April 2022	1,263,452
Charge for the year	497,474
Eliminated on Disposals
As at 31 March 2023	1,760,926
Net book value
As at 31 March 2023	10,011,337
As at 31 March 2022 (as restated)	8,400,941

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9.	Cash and cash equivalents	2023	2022
	Cash at bank and in hand	758,316	1,566,886
10.	Debtors	2023	2022
	All receivable within one year:	6
	Rents receivable	290,539	196,821
	Other trade debtors	622,160	535,720
	Prepayments and accrued income	186,607	117570
		1,099,306	850,111

	doubtful	debts in relati	on to social housing rent arr	ears.
11.	Creditors				(As restated)
	Amounts	falling due within one year:		2023	2022f
	Trade creditors			436,651	485,536
	Accruals	and deferred	income	442,594	157,772
	Bank loans			196,627	119,429
	Other loans			13,421	12,347
				1,089,293	775,084
12.	Creditors				(As restated)
				2023	2022
	Amounts	falling due after one year:
	Accruals	and deferred	income
	Bank loans			2,355,587	1,987,454
	Other loans			5,566,273	5,078,683
				7,921,860	7,066,137
	Included	within creditors are the following amounts		due after more than 5years
					(As restated)
				2023	2022
				6
	After more than five years			6,981,269	6,030,264

						2023	2022
						8	F
	Operating leases which expire:
	Within one year					280,181	261,925
	Within two to five years					348,216	528,362
	After five years					14,000	14,000
						642,397	804,287
14.	Accommodation		in management			2023	2022
	Social housing	properties		owned
	General		needs housing			106	88
	Social housing	properties		managed
	General		needs housing			471	428
	Non-social housing properties				managed
	Asylum		housing			363	349
	Total owned and		managed			940	865

Reserves note
2023		B/fwd f	Income f	Expenditure f	Pension F	C/fwdf
Restricted funds
SYF			1,303	(1,303)
RSAP			367	(367)
Clothworkers			1,000	(1,000)
Efficiency North			1,000	(1,000)
RMBC Adult care			50,000	(50,000)
Small individual	grants		5,974	(5,974)
Unrestricted funds		2,819,180	13,860,860	~13,884,584	~42.855	2,253,533
		2,819,180	13,920,504	(13,944,148)	(42,000)	2,753,536
2022 —As restated		B/fwdf	Incomef	Expendituref	Pensionf	C/fwdf
Restricted funds
SMITF Welcome Fund		1,667		(1,667)
BLFHull EU Revenue		8,517		(8,517)
SYCFCSE		70		(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		2,727,780	11,990,624	~I2, DI3.224	114,000	2,819,180
		2,742,032	12,053,746	(12,090,598)	114,000	2,819,180

Reconciliation ofo	perating su	rplus to	cash fl	ows from operating	activities
						(As restated)
					2023 8	2022f
Total comprehensive	(expenditure)/income		for the year		(65,644)	77,148
Interest payable					121,270	63,539
Interest receivable					(453)	(86)
Depreciation					558,986	409,203
(Profit) on disposal					(775)
(Increase) in debtors Increase/ (decrease)	in creditors				(249,195) 200,937	(130,594) (84,959)
Net cash flow from activities	operating				565,126	334,251
Analysis ofchanges	in net debt
		(As restated)
			2022	Cash flows	Non-cash	2023
					changes
Short term bcrrowings		(131,776)		78,290	(156,563)	(210,049)
Long term borrowings		(7,066,137)		(1,012,286)	156,563	(7,921,860)
Total borrowings		(7,197,913)		(933,996)		(8,131,909)
Cash and cash equivalents		1,566,886		(808,570)		758,316
Total net debt		(5,631,027)		(1,742,566)		(7,373,593)

as a result is as follows:
			2023	2022
			f000s	KOOOs
Fair value ofscheme assets Present value ofdefined benefit obligation Defined benefit pension scheme deficit			1,215 1,482 ~267	1,943 2,245 ~302
Defined benefit obligation
Changes in the defined	benefit obligation	are as follows:
			2023	2022
			8000s	6000s
Obligation at the start of the year			2,245	2,104
Service cost			7	54
Interest expense			61	46
Actuarial (gains) and losses			(739)	48
Benefits paid			(131)	(36)
Member contributions			35	25
Other			4	4
Obligation at the end ofthe year			1,482	2,245

				2023	2022
				SOOOs	EOOOs
Fair value at start ofthe year				1,943	1,681
Interest income				54	37
Return on plan assets, excluding	amounts	included	in net interest	(781)	162
Employer contributions				95	74
Member contributions				35	25
Deficit contributions				(131)	(36)
Fair value at the end ofthe year				1,215	1,943

				2023	2022
				ROOOs	ZOOOs
Deficit funding		liability at 1 April 2022		302	423
Actuarial	movements		duding the year	42	(114)
Current	service	cost	during the year	18	67
Deficit contributions			paid during the year	(95)	(74)
Defined	benefit	liability at 31 March 2023		267	302

The principal		a	ctuarial assu	mptions used are as follows:
					2023	2022
					%per annum	%per annum
Discount rate					4.88	2.79
Intlation (RPI)					3.20	3.59
Intlation (CPI)					2.74	3.20
Salary Growth					3.74	4.20
					75%of	75%of
Allowance for		commutation		ofpension for cash at retirement	Maximum	Maximum
					allowance	allowance
The mortality		assumptions		adopted at 31 March 2023 imply the following	life expectancies
						Life
						expectancy at
						age 65
						(Years)
Male retiring	in		2023			21.0
Female retiring			in 2023			23.4
Male retiring	in		2043			22.2
Female retiding			in 2043			24.9