2023-06-30-accounts

partnering for impact

Trustee’s annual report and financial statements for the year ended June 2023

table of contents

MESSAGE FROM OUR CHAIR & NATIONAL DIRECTOR	5
OBJECTIVES. PURPOSE, KEY ACTIVITIES	6
About us	6
Our values	6
How we spent our money	7
OUR IMPACT	8
Our year	10
Saving for a better future in Zambia	12
Tooling up to tackle homelessness	14
Community-led safe water in Uganda	16
FUNDRAISING, ADVOCACY AND PARTNERSHIPS	18
Corporate partnerships	19
Individual Giving	20
Philanthropy, trusts and foundations	21
Advocacy	22
Our work in Great Britain	24
FUTURE PLANS	26
STRUCTURE AND GOVERNANCE	28
Trustee recruitment	29
Management and employees	29
FINANCIAL REVIEW	30
Charitable income	31
Charitable expenditure	31
Reserves policy	32
Renumeration policy	33
Grant making policy	33
OUR APPROACH TO FUNDRAISING	34
Managing risks and uncertainties	36
Our approach to safeguarding	39
Compliance and legal	39
Going concern	39
STATEMENT OF RESPONSIBILITIES OF THE TRUSTEES	40
AUDITOR’S REPORT	41
ACCOUNTS	45
REFERENCE AND ADMINISTRATIVE INFORMATION	67

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a message from our Chair and National Director

It is with immense pride that we welcome you to our annual report for the year ended June 2023, a report that symbolises the unwavering commitment of our global family to a cause that unites us all: the pursuit of a world where everyone has a decent place to call home.

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Nicola Barclay - Chair Henrietta Blackmore - National Director
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In this year’s report, we look forward to sharing with you inspiring stories that demonstrate these transformative partnerships.

It is through partnerships, big and small, that we transform our vision into the sturdy foundations of brighter futures for families all over the world. This year in particular, we’ve had the extraordinary privilege of witnessing firsthand the incredible power that emerges when we join hands with our corporate partners, our generous individual supporters, and fellow organisations who share in our vision.

From innovative corporate-backed projects that bring safe homes to those in need, to the unwavering dedication of our individual supporters, and the alliances we forge with like-minded organisations and funders who help us to amplify our impact, our work would simply not be possible without these partnerships.

Partnerships are not just a component of our work; they are the very heartbeat that keeps us moving forward. They breathe life into our mission, fueling our efforts to alleviate housing poverty in some of the most vulnerable communities around the world.

In a time where the cost-of-living crisis weighs heavily on many people around the world, we remain steadfast in our commitment to making a difference. Together, we will continue to innovate, and with the collective strength of our global community, we’ll work to ensure that as many people as possible can have access to the safe and stable home they deserve.

It is through these collaborations that we’ve turned housing, access to financial services, and home improvement opportunities into a reality, transforming the lives of 822,798 people in 2022/23.

thank you!

On behalf of the entire board, we extend our deepest appreciation to our partners, supporters, colleagues around the globe, and the incredible team at Habitat for Humanity Great Britain.

It is your unwavering commitment that leads us along the way to a world where every family can build a stable future in a decent home. Together, we build. Thank you.

objectives, purpose, and key activities

about us

Our vision is of a world where everyone has a decent place to live. Our principal objective is to alleviate poverty by helping people who live in substandard housing access better living conditions.

We believe that a decent home helps to permanently break the cycle of poverty and allows the communities we partner with to achieve strength, stability, and self-reliance.

We believe decent homes are the heartbeat of strong communities, and so we also fight for land rights for women, upgrade urban slums and informal settlements, improve access to water and sanitation, and help communities become more resilient in the face of natural disasters.

The work carried out by Habitat for Humanity Great Britain is done so in accordance with the charity’s purpose, for the public benefit with regard to the Charity Commission’s public benefit guidance, and in accordance with the general framework for trustee decision-making.

We are a member of Habitat for Humanity International, a federated global housing charity that works in over 60 countries.

For the year ending June 2023, the global federation as a whole helped over 13.4 million people build or improve their homes. Since 1976, Habitat for Humanity has helped more than 59 million people.

How we spent our money:

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charitable
expenditure: 84%
charitable
expenditure and
fundraising costs
2022/23
raising funds: 16%
TOTAL EXPENDITURE: £2,881,640
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HFHGB (Homes): 25%
donations and
legacies: 16%
GB projects: 3%
charitable disaster risk reduction
expenditure and response: 10%
2022/23
advocacy: 12%
international
development: 34%
TOTAL CHARITABLE EXPENDITURE: £2,407,313
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our values

we put belief into action we believe in self-reliance with courage, passion, we place integrity and mutual and drive, we find practical respect at the heart of solutions everything we do

we believe in accountability we treat every partner with transparency and honesty

we believe in collaboration we deliver on our mission through partnership

we believe in continuous improvement we focus on learning, sustainability, and innovation to exceed expectations

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Our key activities
include:
international development
local projects in great britain
disaster risk reduction and
response
advocacy and campaigning
financial inclusion projects
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our impact

Our projects contribute to the United Nation’s Sustainable Development Goals (SDGs). The goals recognise that ending poverty must go handin-hand with strategies that improve health and education, reduce inequality, and spur economic growth - an ethos at the heart of Habitat for Humanity’s work since our founding over 40 years ago.

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Poland, Romania, and Hungary
Great Britain and Poland 1,755 people helped through our
response to the refugee crisis
7,582 people helped through
following the outbreak of war in
our Empty Spaces to Homes
Ukraine.
programme that works to turn
vacant properties into decent
homes for vulnerable people. Nepal
487,569 people helped through
our microfinance scheme, which
supports women in gaining access to
financial services.
Uganda
52,510 people helped through our
community led safe water project.
Cambodia
69 people helped through our
housebuilding and sanitation
Ethiopia
programmes which work with
24,487 people helped through our low-income families to build
India
housing, safe water, and improved climate-resilient homes and
We also continued to extend our energy utilisation programmes. 67,487 people helped through decent WaSH facilities.
our projects supporting medical
support to people who faced
care centres, distributing
dreadful upheaval after fleeing the
war in Ukraine. medical equipment, building
homes, and our ‘Solid Ground’
In this report, as we recount some advocacy campaign work.
of these stories of resilience and
transformation, we are immensely
grateful for the generosity and spirit Zambia
of our partnerships which help drive 181,339 people helped through our projects
our work forward. working with residents to improve access
to financial services and secure land rights,
Our work is far from finished, but we
remain dedicated to our belief that as well as the implementation of digitised
savings tools.
every family deserves the security of
a safe and decent place to call home.
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In the year 2022/23, Habitat for Humanity Great Britain continued to transform lives across the globe.

In Uganda, where we championed sanitation projects for families to have clean water, and in the rural communities of Cambodia, where the dreams of secure homeownership came to life, our innovative projects are making a big impact.

In Nepal, our microfinance schemes empowered individuals to reclaim their financial independence, unlocking doors to brighter futures. And our ground-breaking “Empty Spaces to Homes” initiative breathed life into disused, vacant properties in Great Britain and Poland, converting them into decent homes.

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People from all across our global community
our year of partners and supporters joined us to make
an impact throughout 2022/23 and we’re
excited to share some of these stories of
impact in this section.
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822,798
people helped through
our programmes - an
increase of 118% on
FY22
10
countries
where we’ve
supported families
to build or improve
their homes
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increase of 118% on
FY22
10
£3
countries
million where we’ve
raised to support supported families
our work to build or improve
their homes
one
vision
of a world where everyone
has a decent place to live.
536,415
1,100
views of our
hours of our
webpages
YouTube channel
watched
over
100
volunteers hosted at
our new Upcycling
Workshop to help
combat furniture
poverty
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Talisa Mawale is just one of the beneficiaries we helped in 2022/23 through our work in Zambia.

saving for a better future in Zambia

‘This document, which I hold in my hands, shows that our place is secure. I was among the first to acquire the occupancy licence. My children know that this is our land; no one will grab this piece of land from us. We now have a plan to build a safer house that will cope with shelter risks and hazards, and can have a supply of electricity and clean water. Soon, I hope to get money from our Savings Groups to improve my house’.

Through 2022/23, we were delighted to see the results of our Comic Relief-funded project in Zambia aimed at building financial inclusion and creating access to safe housing for women.

The project has been a resounding success, and we are delighted to announce that Comic Relief has agreed to extend their funding of the project through into 2025.

savings and study groups

To ensure we could have a community-wide impact, we worked with our colleagues in Zambia to facilitate savings groups and study circles where residents could learn about land tenure and housing rights, as well as develop financial literacy skills.

safe shelter training

We also rolled out our Participatory Approach for Safe Shelter and Settlements Awareness (PASSA) methodology amongst community members, which highlights the risks related to building in particular environments and details the importance of locally appropriate shelter and settlement practices.

occupancy licences

By working with communities to change attitudes towards the importance of housing rights, over 1,000 households have now acquired land tenure documentation. Obtaining this security has also resulted in communities making improvements to their housing units as land ownership becomes more certain.

1,058 households have acquired land occupancy licences as a result of the project.

going digital to improve financial security for residents

Alongside our Comic Relieffunded work in Zambia, our long-term supporter, LeoLion Foundation (formerly COINS Foundation), provided a grant to support 2,900 female members of Habitat for Humanity’s savings groups.

manage financial records. DreamStart Labs supported the project by training Habitat for Humanity staff and designated Savings Group Agents in the community in the use of the DreamSave mobile phone application.

The project worked with lowincome families to deliver socio-economic changes by improving the savings capacity and financial security of these residents.

Through this piloting period, we have achieved our target of digitising 145 savings groups with smart phones distributed to these groups to aid in digitising financial records.

Through increasing the savings potential of residents, community members are able to pay for essential housing documentation such as occupancy licences and title deeds, as well as make incremental home improvements.

We are also pleased with the low drop-out rate of the savings group (0.6%), demonstrating excellent engagement at the user level.

Given the success of the make incremental home pilot scheme, we are thrilled improvements. to be able to continue this To successfully implement work over the next four years this initiative, we collaborated thanks to the support of with DreamStart Labs Jersey Overseas Aid who to provide a world-class have pledged their generous technology solution for support in helping us expand savings groups to track the project to reach 60,000 savings goals, build individual beneficiaries by credit histories, and July 2027.

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Tooling up to tackle homelessness

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Through existing pilots
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In June 2023, we launched our Empty Spaces to Homes Toolkit, a comprehensive set of resources for local community-based organisations and charities across the UK to convert vacant commercial spaces into goodquality social housing.

Through existing pilots socially minded private sector in London and Warsaw, property owners can use as a Poland, and a further project guide to transform redundant planned for Scotland, we space, giving it a second life as have established a replicable housing. model for transforming empty In our experience, housing buildings into decent homes. can often be the bottleneck With the learning we’ve gained, that prevents organisations we have developed an openfrom helping the people they source toolkit to share this support to thrive and move model which local authorities, from crisis mode to long-term community groups, civil independence.

socially minded private sector property owners can use as a guide to transform redundant space, giving it a second life as housing.

The toolkit will support these organisations in unlocking more housing solutions to support vulnerable people in the community.

At our launch event, we were delighted to be joined by stakeholders, partners, and those who were keen to learn more about our Empty Spaces to Homes programme.

With the learning we’ve gained, we have developed an opensource toolkit to share this model which local authorities, community groups, civil society organisations, and

We’d like to say a special thank you to M&G plc, together with our Empty Spaces Coalition partners for their incredible support and advocacy of our Empty Spaces to Homes programme.

a transformational toolkit

Our toolkit for transforming empty spaces covers four key areas: community engagement, legal guidance, budgeting, and construction.

habitatforhumanity.org.uk/ emptyspacestoolkit

Over 10,000 young people who turn 18 leave the care system every year in Great Britain, and of those, onethird become homeless within two years.

Awet, is just one of these young people who found himself facing homelessness as he left his foster home. Through our partnership with M&G plc and Barking and Dagenham council, we fully refurbished an empty property above a parade of shops, transforming it into decent accommodation for vulnerable young adults. ‘The property is clean, and I have my own bathroom,’ says Awet, ‘I’m learning how to look after myself. How to cook, clean, and live by myself. I’m studying business at a local college, and I want to be successful in my future career’.

an app to spot empty spaces

an informative roadshow

The Empty Spaces Space Spotter app has been developed to harness the collective power of the public to provide crucial data on empty spaces.

Through 2023/24 we’ll be delivering a roadshow across three European markets, which will present our approach and background research to key civil society stakeholders.

habitatforhumanity.org.uk/ partners/the-coalition/

habitatforhumanity.org.uk/ empty-spaces-app

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community-led safe water in Uganda

The Guernsey Overseas Aid & Development Commission kindly committed £50,000 so that Habitat for Humanity Great Britain, in partnership with Habitat for Humanity Uganda, could implement a project with the aim of improving the health and wellbeing of over 55,000 beneficiaries. Focussed on Kadami, a poor parish in the rural sub-county of Mukongoro where 37% of residents do not have access to safe water and 80% of Kadami villagers are unaware of the dangers of consuming unsafe water, this project was vital in protecting lives.

Working in collaboration with district stakeholders, local officials, media, and community members, the event aimed to enhance participants’ understanding of the project’s framework, scope, progress factors, and potential barriers, clarifying its objectives, outcomes, and identifying risks. It also provided a platform to discuss risk mitigation strategies.

In the community, further project inception meetings were held, ensuring beneficiaries received comprehensive orientation and understood their roles in project implementation and sustainability. Empowered community members actively contributed by offering land, facilitating the drilling and installation of water systems, and establishing water kiosks.

To ensure communitywide engagement with the project, an event was held to kickstart the project activities.

A multi-faceted, holistic approach was essential in thoroughly tackling the WaSH challenges faced by the Kadami community.

By fostering stakeholder engagement and commitment to the project and forming key partnerships with local government and other organisations, our project incorporated:

The project has made a significant impact on improving access to clean and safe water within the community. 502 households, equivalent to 2,510 people, now have access to clean and safe drinking water. This exceeds the initial goal of 480 households.

A solar-powered deep well pump providing a sustainable supply of clean water.

Awareness sessions educating community members on safe water practices.

Additionaly, a total of 56,420 individuals (20% of the Kumi population) received WaSH and open defecation messages.

Testomonies from community members who have benefited from this initiative highlight a notable improvement in the health and overall well-being of both children and the wider community. with significant decrease in instances of diarrhoea and typhoid.

Essential supplies, such as Broadcasting messages on local handsoap, for residents to begin radio about the importance of implementing the learnings from good sanitation to reach more our training sessions. residents across the Kumi District.

Akello Rose, a mother of 10, tells us that she and her children had frequent episodes of diarrhoea and typhoid fever.

‘ We had reached a point where we had accepted our fate, believing that nothing could be done,’ she explains. ‘Now, I am very happy to have this clean water. It means a lot to me. My grandchildren will not drink the dirty water and will not suffer the challenges we faced before’.

502 households now have access to safe, clean drinking water.

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fundraising, advocacy, and partnerships

The Charity’s income during the year ended 30th June 2023 was £3,049,183; 3% up from the £2,950,514 in the year ended 30th June 2022.

corporate partnerships

Our corporate partners play a crucial role in enabling us to offer quality housing solutions, both domestically in the UK and on a global scale.

Through their financial contributions, donations of time and expertise, and unwavering support, we are able to address the global housing crisis.

In collaboration with M&G plc we have continued to build on our Empty Spaces to Homes programme across the UK and Europe by renovating buildings, transforming underutilised spaces into residences for marginalised communities, such as refugees, women escaping domestic abuse, young individuals leaving care, and low-income families.

As of now, we have successfully renovated 16 vacant spaces into homes in England (London) and Poland (Warsaw and Silesian Region). Furthermore, ongoing construction projects are expanding to new locations,

including Scotland, Ireland, and Germany.

With M&G’s support, we have launched a mobile app designed to identify vacant spaces that can be renovated into new homes to help combat the social housing crisis in the UK.

The M&G team dedicated over 250 hours, with over 73 colleagues supporting and attending workshops to help us transform an idea into a product.

The Empty Space Spotter App is now available to download, and users can help make a positive impact in their community by identifying empty spaces that can be transformed for vulnerable people.

We are proud that Blackstone has extended their partnership with us, supporting our Empty Spaces to Homes programme.

Blackstone also dedicates their time, with volunteer teams

participating in upcycling and assembling furniture, carrying out post-construction cleans, and putting finishing touches to renovated properties. Their efforts have played a vital role in creating welcoming homes for young individuals transitioning from the foster care system.

This year also saw Revantage embark on an extraordinary journey; 85 determined riders rode from London to Amsterdam. The Revantage London to Amsterdam Cycle Challenge raised over £210,000 to support our work. We are incredibly grateful to all the riders who tested their endurance and raised vital funds for Habitat.

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individual giving

Our email communications continue to keep our supporters up-to-date with how their support is making an impact across the Habitat for Humanity network, and our postal subscribers continue to engage well with our offline communications.

As the cost of living soared in 2022/23, we prepared for the impact this would inevitably have on our individual donors.

project building climateresilient homes in Cambodia (pictured below). Our supporters got behind every one of these impact stories and continue to ardently champion our work.

In a survey conducted by Charities Aid Foundation in early 2022, one in eight people said they were likely to reduce their charitable giving to cope with rising household costs.

This compassion for our cause is particularly evident in those supporters who so generously chose to remember our work through a gift in their Will.

However, a key challenge for us to address in our individual giving programme will be how we can strategically invest in acquiring new donors - both offline and online - to ensure sustainable growth of our unrestricted income. We will be exploring ways this can be addressed throughout 2023/24.

Despite this, our incredibly generous individual giving and legacy supporters helped us achieve our anticipated target raising a total of £305,801; a 27% increase on the previous year.

This is such an important part of our unrestricted fundraising, and so we have continued to promote this as a giving opportunity to our donor base, and we will be conducting testing of a marketing and communications campaign to further grow our number of legacy pledgers.

Throughout the year, we shared stories with our donors; from our work supporting refugees fleeing the war in Ukraine, to our innovative

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20,000
10,000
Mr Sample
1 Sample Steet
Sampleshire
SMA PL3
2,000
1,000
500
We’re delighted to see an average
No. of social media followers end of July 2023
open rate of 33% for our fundraising
and marketing emails sent to individual
supporters (in a 2021 study by Charity In a saturated and competitive marketplace,
Report, the sector average was 26.1%). attracting new followers is challenging.
We’re looking at ways we can further However, we are working towards a refreshed
develop this good engagement with our approach through 2023/24 which will focus
digital subscribers to grow both our legacy on content testing to ensure our content is as
and regular giving income streams. engaging and impactful as possible.
35 %
30%
25 %
20 %
15 %
10 %
5 %
facebook
linkedin instagram
twitter
tiktok
august email newsletter autumn email appeals october email newsletter christmas email appeals february email newsletter march email newsletter spring email appeals may email newsletter june email newsletter
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20,000
10,000
2,000
1,000
500
No. of social media followers end of July 2023
facebook
linkedin instagram
twitter
tiktok
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35 %
30%
25 %
20 %
15 %
10 %
5 %
email open rates
august email newsletter autumn email appeals october email newsletter christmas email appeals february email newsletter march email newsletter spring email appeals may email newsletter june email newsletter
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philanthropy, trusts, and foundations

It’s been another year of growth for Philanthropy, Trusts and Foundations, as we build on the emerging strategy we’ve been developing over the last two years.

where everyone has a safe place to call home, and donors who are prepared to work alongside us, putting their donations to use by investing in this innovation, are making a truly transformational contribution.

makers at the highest level. Our philanthropic donors and grantmakers are part of that vision, and we look forward to continuing to collaborate with them in its pursuit.

In the most recent year, we have been able to engage more grant makers to partner with us in supporting projects both here in Great Britain and around the world.

Increasingly, funders are valuing the opportunity to match fund projects, leveraging important funds to deliver programmes at scale. We’re grateful for their generosity in the last 12 months.

In the next year, we’d love to explore how we can bring together some of these very committed donors to work collaboratively for even more significant impact, to build a close connection with areas of work, and to connect as a community.

We will also be developing our burgeoning Ambassador Programme, a network of committed supporters who represent Habitat through talks and events, make connections, and help develop projects and initiatives.

We also very much value the personal passion of individuals who make significant donations, again to support existing projects, or to catalyse a new approach, or pilot. Innovating and responding to the changing needs of communities is vital in pursuing our vision of a world

Habitat has a bold vision for achieving greater housing equity worldwide, working both in communities and with policy

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advocacy

= home equals

In May 2022, Habitat for Humanity launched ‘Home Equals’ - a five-year global advocacy campaign dedicated to achieving policy change, at all levels, to ensure that people living in informal settlements have equitable access to adequate housing.

Together, with partners, governments, and communities, we can create lasting change so that people living in informal settlements have safe and secure homes.

“I am strong. I am thriving in the industry. The opportunity to transform Kibera and make a difference inspires me. I believe a new Kibera can be a reality.” ~ Milka, who oversees a team of six at a brick production facility.

A poorly built home in a disaster-prone area means families are more vulnerable to climate change.

A home without land rights means families live in fear of eviction with their futures on hold.

A home without access to clean water means families are at risk of lifethreatening diseases.

This isn’t fair. This isn’t right.

We believe it will take the power of communities coupled with policy change to ensure access to adequate housing for all.

Research by Habitat for Humanity and the International Institute for Environment and Development, sought to answer the question: what benefits would be realised if housing improvements took place on a massive scale so that everyone living in informal settlements has access to adequate housing.

Currently, the more than 1 billion people around the world living in informal settlements, such as slums or favelas, are often not treated as equals — their homes often lack basic services, land tenure security, and climate resilience.

With fewer barriers in their way, people in informal settlements can improve their homes, creating benefits for themselves, their families, and their communities.

Informal settlements hold infinite promise. In these bustling communities, innovation and entrepreneurship thrive. Even in the face of barriers, resilient residents of informal settlements are playing their part to create positive change.

Through an extensive literature review and a statistical modelling exercise, the report shows that adequate housing is a powerful catalyst for wellbeing and sustainability. Among the key findings are:

% 4 increase in life expectancy

Milka (left), 31, was born and raised in Kibera, Kenya, where she’s now raising her 16-year-old daughter. Milka knows first-hand the threats facing families in Kibera. Houses perched precariously on steep hills are at risk of collapsing during heavy rains. Power lines, a % common cause of fires in Kibera, hang haphazardly across the road. But Milka is undaunted. She’s determined to make changes so that the people of Kibera don’t fear losing a home to fire or floods. 28

Heading up a six-person production team at brick-making company Start Somewhere, her success is a testament to the potential that resides in informal settlements like Kibera – and the transformation residents can achieve to make life better for all.

increase in years of schooling

We know that the challenges relating to adequate housing can only be overcome through collective cooperation. As the leading global % housing organisation, Habitat for Humanity has deep experience to form effective alliances and to mobilise others to address complex housing issues at scale. The worldwide Habitat network enables 10.5 us to work at all levels – including directly with informal settlement families around the world and with governments to ensure adequate increase in housing for all.

increase in economic growth in some countries

At Habitat for Humanity Great Britain, we are committed to supporting this campaign, and over the next five years, we will be intensifying our efforts to prioritise community participation within our programmes, as well as seeking opportunities to influence the housing sector both at home and through our overseas work.

To read the research report in full, visit: habitat.org/ home-equals/research-report

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our work in Great Britain

The year ending June 2023 has been one of great challenge and even greater opportunity for the GB Homes team, who deliver much of our work in Britain. The year saw some modest growth in turnover, a breakeven year, and challenges navigating the rising inflation in UK construction and in the rental market. Alongside this, the continuing negative effects of the pandemic and Brexit on supply chains and the labour market, are now very palpable.

Despite the challenging context, we have much to be grateful for and celebratory about. We completed the third of our Empty Spaces to Homes projects at Woodward Road in Becontree, East London, and started our fourth project in Royal Parade Dagenham.

So far, this will bring the number of new bedrooms provided for young people leaving care to 14. The London Borough of Barking and Dagenham have a further pipeline of empty properties that are suitable for conversion to homes, which could provide a further 16 bedrooms.

This partnership with London Borough of Barking and Dagenham has been recognised nationally by the Empty Homes Network, as in May 2023, Habitat for Humanity GB won their annual Best Partnership Award this year.

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“Rather than an individual project, where two organisations have come together successfully, Habitat’s partnership with London Borough of Barking and Dagenham. has developed a sustainable model that works for all parties to create lasting change and provide solutions for the housing problem locally.” ~ Adam Cliff, Secretary of the Empty Homes Network, on awarding the Best Partnership Award to Habitat for Humanity Great Britain and London Borough of Barking and Dagenham.

We also launched our Empty Spaces to Homes Toolkit (which you can read more about on pages 14-15).

We are in active discussions with the London Borough of Barking and Dagenham about how to take the pilot model forward into a more mature phase of scaling up and increasing impact.

Through the Empty Spaces to Homes Coalition, we are also looking at how this can grow nationally and internationally.

Other notable achievements in 2022/23 were:

Only 2% of social housing in the UK currently comes furnished, leaving new residents already experiencing financial hardship struggling to find the funds to buy essential items such as a bed, fridge, or wardrobe.

In 2023, we also saw the completion of Claudia Jones Organisation’s office space and enhancements in their Stoke Newington facility. Volunteer support and donations from our corporate supporters, especially P&G and Montagu Evans, have enabled a much enhanced venue for their local service to Caribbean women-led families. The number of volunteer hours from our corporate partners was over 1,100 hours!

Our upcycling projects aim to help address this by furnishing the properties we are renovating in partnership with the London Borough of Barking and Dagenham council with high-quality repaired and upcycled items, creating opportunities for other households and communities facing economic hardship to furnish their own space.

We launched our Upcycling Workshop to refurbish and repair furniture with the support of staff from our corporate partners.

At the Oasisplay inclusive playground in Kennington, we were also able to carry out enhancements to play equipment and the playground environment.

In FY23, we hosted 108 volunteers at the workshop, with hundreds more booked in over the following year.

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future plans

In the ever-evolving landscape of both our fundraising streams and programmatic work, we have ambitious plans to seek opportunities to create an even bigger impact. The importance of innovation and partnerships has been critical to our success in 2022/23, and this will also play a key role in our plans for the year ahead.

retail opening new strategy our people

We are excited to be moving ever closer to the opening of our first ever charity shop, ReStore.

A new strategic direction is being developed with an emphasis on how we can build and influence change.

We can only achieve our vision through a commitment to our staff, who work hard in driving our mission forward.

At the heart of our new strategy will, of course, be the impact we deliver for our community partners. The housing crisis is both a local and global challenge, and so we’ll focus on how we, as an organisation, can develop more transformational partnerships to address housing challenges. We want to ensure all our partnerships are equitable and give the people we work for a voice.

Across other countries within the Habitat for Humanity network, ReStore has proven to be both a successful income source and a brand recognition tool for forging relationships with local communities. We are currently working to locate suitable premises and are confident of a 2024 opening.

At Habitat for Humanity Great Britain, we see firsthand the intersection between housing and the climate crisis. Our projects have always revolved around sustainability, and this commitment will remain at the core of our mission.

To fulfil our strategic ambitions, it is vital that we build a kind, inclusive environment where our people are able to flourish and produce the best work of their careers. A number of factors will be key to our success, including developing our future strategy and reshaping our teams across HFHGB and GB Homes to ensure everyone is able to play their part in delivering our mission.

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structure and governance

Habitat for Humanity Great Britain is a member of the Habitat for Humanity International network which has its headquarters in Atlanta, Georgia, USA.

our purpose

Our principal purpose is to alleviate poverty by helping people who live in substandard housing access decent, affordable homes.

Across the globe, over 1.8 billion people live in housing poverty and by 2030, the United Nations predicts that 3 billion, about 40% of the world’s population, will need access to adequate housing.

Our pioneering house construction initiatives, housing refurbishment projects, efforts in homelessness prevention, and our unwavering commitment to disaster response all unite under one vision: to build a world where every individual has a decent place to call ‘home’,

The work carried out by Habitat for Humanity Great Britain is done so in accordance with the Charity’s purpose, for the public benefit with regard to the Charity Commission’s public benefit guidance and in accordance with the general framework for trustee decisionmaking.

trustee recruitment

Our trustees recruit new members to the Board in accordance with the needs of the Charity. Nominations are voted on by the full Board.

is delegated to the National Director, Henrietta Blackmore, who was appointed in May 2023, and the Senior Leadership Team.

New Board members are provided with information on the organisation and with a personal briefing from the National Director and Chair.

The organisation is a charitable company limited by guarantee, incorporated on 18th January 1995 and registered as a charity on 25th January 1995.

We are always keen to ensure that our trustees bring a unique set of skills to the Board, so that collectively they can support all areas of the work that the charity does.

The company was established under a memorandum of association that established the objects and powers of the charitable company and is governed under its articles of association.

We have trustees with backgrounds in law, finance, construction, and retail, to name a few, and we are always willing to discuss the opportunity to join the board with potential new trustees.

All trustees give their time voluntarily and receive no benefits from the Charity. Any expenses reclaimed from the Charity are set out in Note 7 in the accounts.

Trustees can serve a maximum of three terms of three years.

The day-to-day operation of Habitat for Humanity GB

management and employees

Habitat for Humanity GB is committed to developing a strong and loyal staff team that is engaged in the work of the organisation.

We hold frequent team meetings where all members of staff are encouraged to present an update on their progress.

Funding to undertake relevant training and learning opportunities is also available. The Senior Leadership Team is responsible for the dayto-day management of the Charity. They meet every week by video conference call and review the management accounts and cash flow monthly.

These meetings provide a platform for our team to share successes, promote well-being, and for the National Director and Senior Leadership to keep staff updated on operational matters.

Continued professional development is encouraged amongst staff by creating annual objectives, which are reviewed with line managers.

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financial review

Financial data in this section relates to the consolidated accounts of the Charity and Habitat for Humanity GB (Homes), unless otherwise indicated.

charitable income

charitable income
	2023	2022 (restated)
Income from:	Total £	Total £
Donations and legacies	898,350	738,545
Charitable activities
Disaster risk reduction & response	470,617	508,380
Advocacy	176,406	407,439
International Development	880,252	908,931
International Volunteering	(9,847)	7,695
GB Projects	233,598	-
HFHGB (Homes)	396,672	379,390
Investments	3,135	134
Total income	3,049,183	2,950,514

Total income for the group in 2022/23 grew by just over 3% to £3,049,183 (previous year £2,950,514). Charitable activities were the biggest contributors to this income forming 71% of this income, followed by donations and legacies that brought in 29% of the total income.

charitable expenditure

charitable expenditure
	2023	2022
Expenditure on:	Total £	Total £
Raising funds	474,327	454,838
Charitable activities
Disaster risk reduction & response	279,537	716,545
Advocacy	337,301	207,063
International Development	993,285	926,932
International Volunteering	-	803
GB Projects	75,281
HFHGB (Homes)	721,909	555,299
HFHGB (Homes) - restated for FY22	-	30,936
Total expenditure	2,881,640	2,892,416

Charitable expenditure for the group in 2022/23 remained steady from £2,881,640 to £2,892,416. Expenditure on our disaster risk reduction and response activites was much lower this year due to the majority of our response to the Ukraine refugee crisis happening in 2021/22. We have been able to increase expenditure on our GB projects this year with no impact to our international development activities.

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reserves policy

Charity free reserves are the Charity’s unrestricted funds that are freely available to spend on any of the Charity’s purposes. This figure is calculated as total unrestricted funds, excluding fixed assets and designated funds.

The trustees set the target level of reserves for 2020 as six months of the budget for operating costs, which approximately equates to £415,000. This level of reserves was determined based on consideration of the following:

• The Charity is operating in a constantly changing environment. In particular, the current economic and political environment carries risks, which the trustees aim to manage appropriately.

• In the unexpected event that the Charity ceases to operate as a going concern, a minimum of three months of operating costs would be required.

• Habitat for Humanity International’s Global Village Contingency Policy assesses the level of risk attached to our volunteer programme.

• It determines the amount of contingency required in case of civil unrest or natural disasters, or to cover events such as currency fluctuations. The trustees consider Habitat for Humanity GB’s target reserves level as sufficient in this context.

• New fundraising opportunities are developing, and the trustees would like to have the ability to invest in building capacity and resources to leverage these.

For the year ended 30th June, 2023 the free reserves for the group stand at £318,000 (2022: £247,600). This has grown by 28% and would cover almost five (5) months of operational costs if the Charity was to run into fundraising and operational difficulties.

Despite the challenging year, management is determined to build up these reserves to the level recommended by the trustees.

The trustees monitor the level of reserves held on a quarterly basis as part of routine management reporting, which includes the unrestricted fund balance at the end of each quarter.

Should the level of reserves fall or be expected to fall below that set in the policy, the trustees, in consultation with the management team, will agree on a process for restoring them over time.

remuneration policy

Habitat for Humanity GB is acutely aware of the need to be accountable to our supporters and ensure our work is managed to the highest standards.

We set competitive salaries, which ensure we can attract and retain the best qualified staff who will make the most effective use of resources.

We regularly review the ratio of funds spent on staff in the UK to funds spent on programmatic work to confirm that our approach is appropriate and effective.

The Executive Committee of the Board determines the remuneration package of the National Director by consulting relevant experts and reviewing organisations of similar size.

The Executive Committee works with the National Director and senior management team to review staff salaries, and ensure amendments are appropriate for Habitat for Humanity GB salaries to remain competitive, determine pension arrangements, and ensure that contractual terms are fair to the individual and the Charity.

Further information on our salary payments can be found on page 58. During the year, the following staff earned more than £60,000.

	Year	2023	2022
	£60.000 - £70,000	3	1
	£70,0001 - £80,000 £80,001 - £90,000	1	1 -
	£90,001 - £100,000		-

grant making policy

We make payments to Habitat for Humanity GB (Homes) and to Habitat for Humanity International network members overseas in order to further our charitable activities.

In respect of grants to overseas projects, to ensure transparency and proper use, the transfer authorisation process involves three parties: Habitat for Humanity GB, the Habitat for Humanity International area office for Europe, Middle East and Africa and the recipient Habitat for Humanity organisation.

Partnership Agreements are established between Habitat for Humanity GB and any implementing partner for all major projects we fund, and the viability and standing of our partner organisations are reviewed during the agreement process and throughout the project cycle by means of our monitoring role. In addition to controls in place within the Habitat for Humanity International network, all grant payments are subject to internal financial controls and Habitat for Humanity GB transfer policies. This helps to ensure an appropriate level of management control is exerted over grants made from unrestricted and restricted funds.

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our approach to fundraising

Aligning our fundraising practices with industry standards and the code of conduct outlined by the Fundraising Regulator is a fundamental cornerstone of our fundraising strategy.

and we thank them for their ongoing support, and for their expertise in helping us secure press coverage for our Empty Spaces to Homes toolkit launch.

Honesty and transparency with our funding partners and supporters is essential and at the core of our values.

partners and donors. Their trust in and support of our work means the world to us, and we simply couldn’t do the work that we do without them.

We are constantly reviewing and refining how we fundraise to ensure we uphold excellent levels of care for both our donors and beneficiaries.

In 2022/23, at Habitat for Humanity Great Britain, we continued to conduct the majority of our fundraising without external consultants or agencies. We are delighted to continue our partnership with Montieth and Company, a global communications consultancy, who support our work on a pro-bono basis

We’re committed to open and honest communication with our supporters and we always hold ourselves to the highest standards of transparency and respect when seeking the valuable support of our

All fundraising activities from our corporate partners, individual supporters, philanthropists, trusts, foundations, volunteering, and digital activities are overseen by our Director of Development.

In 2023/24, the Development team will undergo expansion as a new volunteering coordinator will join the team (recruited Oct 2023). This role will play a crucial part in working with our corporate partners to facilitate overseas volunteering trips.

These efforts are part of our strategy to rejuvenate and rebuild this essential income stream for our work, which was temporarily halted during the pandemic.

Habitat for Humanity GB is registered with the Fundraising Regulator and is committed to complying with the Fundraising Regulator’s Code of Fundraising Practice and Fundraising Promise.

We maintain regular communication with all our supporters, ensuring they

are well-informed about how we allocate our funds and keeping them updated on the progress of our projects. Out of a total of 155,000 communication touchpoints with our supporters, we received no complaints from the public during 2022/23.

We are continuing to monitor General Data Protection Regulations (GDPR) to ensure compliance.

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Some of the risks we currently face are:

managing risks and uncertainties

Habitat for Humanity GB operations are inherently risky.

Our finances can be easily affected by change in public sentiment and economic performance.

Due to the nature of our charitable activities, the work we deliver across the world often takes place in countries that are more prone to environmental, societal, and political risk.

To help mitigate these risks, on a periodic basis the trustees review with management the major risks the Charity faces. This is achieved through a risk register review process and through our regular Board and subcommittee meetings.

This vigilant approach helps to ensure that we remain resilient and adaptable, with the aim of allowing us to continue providing safe and decent housing solutions to those in need, even in the face of uncertainty.

Our dedication to proactive risk management is a testament to our promise of stability and security for the communities we serve.

It is through diligent risk management that we hope to safeguard our ability to create a world where every individual can enjoy the fundamental right of a safe place to call home.

reputational risk

One of our most precious assets is our reputation. The Board and management ensure that we have in place policies and process that are explicitly designed to help us deliver our work in a way that ensures the impact our charitable objectives require, as well as to protect our reputation. To mitigate this risk, we prioritise three areas:

1. Financial controls – to properly look after the donations by our supporters and partners.

2. Corporate partners – we partner with companies whose values and behaviours align with our own.

3. Safeguarding processes – to ensure we fulfil all our obligations to beneficiaries, volunteers, staff, and the communities where we operate.

cost of living crisis

The cost of living crisis will undoubtedly have an impact on our donors and staff - as well as the people and communities we serve. We are already seeing the impact across the globe as the cost of some building and construction materials has risen, sometimes adding a 30% increase to planned project budgets. Our Senior Leadership team closely monitor income throughout the year and reforecast where appropriate.

income generation

A key risk continues to be maintaining an adequate level of unrestricted funds. This is monitored quarterly by the trustees and the management team have in place clear plans to help address this risk, including increased investment into both corporate and philanthropy fundraising streams, as well as developing a new trusts, foundations, and major donor strategy. We also continue to test ways of acquiring new individual donors in the most cost effective way, together with improving our cost recovery systems in relation to our programmatic work.

volunteer safety

As we look to launch our first retail store and relaunch some of our overseas volunteering work, we continue to monitor the safety of our teams. Our volunteer work often entails working in environments, such as building sites, that come with increased risk to personal safety. Our volunteering programme is carefully assessed for risk and our volunteer teams will continue to be led by experienced and well-trained Team Leaders, themselves volunteers, who are rigorously trained in risk management and crisis management. Volunteers who join us in 2024 as part of our ReStore team will undergo robust training in health and safety protocols, including safe handling, protective equipment safeguarding, and safe tool use.

our approach to safeguarding

Habitat for Humanity Great Britain is dedicated to helping individuals and families build strength, stability and self-reliance through safe, decent and affordable housing. In keeping with that commitment, we have no tolerance for sexual exploitation, abuse or harassment.

Nothing is more important than the welfare of our volunteers, our staff and the people our mission calls on us to serve.

We work to prevent sexual exploitation, abuse and harassment by adhering to safeguarding policies developed in partnership with Habitat for Humanity International.Staff and members of the communities where we work are encouraged to report incidents of abuse or harassment, including through our confidential reporting system Habitat Ethics and Accountability (HEAL).

Any staff member who files a report or is a witness providing information related to such a report is protected against retaliation. Habitat for Humanity Great Britain remains accountable to the families we partner with as well as the supporters who share our vision of a world where everyone has a decent place to live.

Over the past five years, in consultation with the wider Habitat for Humanity International network and our regulators, we have worked hard to improve our safeguarding incident reporting systems.

compliance and legal

We operate in a highly regulated environment and the appropriate management and security of personal data is a key risk.

We mitigate this risk by investing in robust and secure systems to manage and store personal data, train staff in the requirements of the General Data Protection Regulation Law, and to ensure management keep data security as a top priority.

As a member of a global federation, we report to the Charity Commission cases of sexual abuse or harassment involving: country programmes we have funded, either currently or historically; country programmes where we have sent volunteers; or any UK national across the entire Habitat network.

We remain vigilant and continue to strengthen not only our training programmes and screening of employees and volunteers but also our systems for promoting thorough reporting and transparency.

Capacity has been developed across the entire global network to ensure more robust training and procedures around safeguarding. Safeguarding training forms a key part of the induction process for all staff and trustees. Our network also continued to roll out a safeguarding visualisation toolkit to support communities in realising their rights in preventing sexual exploitation, abuse, and harassment by promoting a ‘speak up’ culture.

In addition to safeguarding cases, Habitat for Humanity Great Britain remains committed to reporting all serious incidents in the categories defined by the Charity Commission, including allegations regarding cybercrime, fraud, major governance issues or financial loss, and those involving volunteer safety.

going concern

We have set out above a review of financial performance and the Charity’s reserves position. We believe that we have adequate financial reserves to continue to deliver against our plans and adequate resources to continue in operational existence for the foreseeable future.

We believe that there are no material uncertainties that call into doubt the Charity’s ability to continue and that new opportunities in the coming year will provide increased funding. The accounts have therefore been prepared on the basis that the Charity is a going concern.

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statement of responsibilities of the trustees

• State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements.

This annual report includes a director’s report, as required by company law.

The trustees (who are also directors of Habitat for Humanity GB for the purposes of company law) are responsible for preparing the trustees’ annual report including the strategic report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity 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.

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the charitable company and group and of the incoming resources and application of resources.

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. So far as the trustees are aware, there is no relevant information of which the charitable company’s auditors are unaware. Additionally, the trustees have taken all the steps that they ought to have taken as trustees to make them aware of any audit information and to establish that the charitable company’s auditors are aware of that information.

This includes the income and expenditure of the charitable company or group 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 Charities SORP 2019 (FRS 102).

• Make judgments and estimates that are reasonable and prudent.

auditors

Azets Audit Services, having expressed their willingness to continue in office, will be deemed reappointed for the next financial year in accordance with section 487(2) of the Companies Act 2006 unless the company receives notice under section 488 (1) of the Companies Act 2006.

In preparing this report, the trustees have taken advantage of the small companies’ exemptions provided by section 415a of the Companies Act 2006.

Preparing the accounts for a small company does not require the preparation of a strategic report. However, much of the typical content of a strategic report is included in the trustees’ report. The trustees’ annual report has been approved by the trustees on 30 January 2024 and signed on their behalf by:

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auditor’s
report
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Nicola Barclay Chair 30 January 2024

independent Auditor’s Report to the Trustees and Members of Habitat for Humanity Great Britain

other information

opinion

We have audited the financial statements of Habitat for Humanity Great Britain (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 30 June 2023 which comprise Consolidated Statement of Financial Activities, the Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including 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).

The other information comprises the information included in the trustees annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. 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. 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 course of 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.

In our opinion the financial statements:

• give a true and fair view of the state of the group’s and parent charitable company’s affairs as at 30 June 2023, and of the group’s incoming resources and application of resources including its income and expenditure for the year then ended;

We have nothing to report in this regard.

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

opinions on other matters prescribed by the Companies Act 2006

• have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006.

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the trustees’ report incorporating the strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable 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.

• the directors’ report included within 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 group and parent charitable 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 in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 require us to report to you if, in our opinion:

• adequate and proper accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent charitable company’s 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; or

• the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.

responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the parent charitable company 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 trustees determine is 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 trustees are responsible for assessing the groups and parent charitable 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 trustees either intend to liquidate the group or parent charitable company or to cease operations, or have no realistic alternative but to do so.

auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with regulations made under those Acts.

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 an auditor’s report 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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www. frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

extent to which the audit was considered capable of detecting Irregularities, including fraud

Irregularities, including fraud, are instances of noncompliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

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In response to the risk of irregularities and noncompliance with laws and regulations, including fraud, we designed procedures which included:

• Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;

• Reviewing minutes of meetings of those charged with governance;

• Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

• Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias;

• Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

• Ensuring the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. More experienced audit team members were allocated to perform work on certain audit areas such as the review of minutes, disclosures and management override

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. The primary responsibility for

the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company’s trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees those matters we are required to state 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 charitable company, the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Paul Creasey (Senior Statutory Auditor) For and on behalf of Azets Audit Services Statutory Auditor and Chartered Accountants Egham

Azets Audit Services is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

30 January 2024.

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consolidated statement of financial activities

balance sheets

(incorporating an income and expenditure account for the year ended 30 June 2023)

				2023			2022
	Note	Unrestricted	Restricted	Total	Unrestricted	Restricted	Total
							(restated
		£	£	£	£	£	£
Income from:
Donations and legacies	2	834,306	64,044	898,350	508,623	229,922	738,545
Charitable activities
Disaster risk reduction &	3	-	470,617	470,617	-	508,380	508,380
response
Advocacy	3	-	176,406	176,406	-	407,439	407,439
International Development	3	-	880,252	880,252	-	908,931	908,931
International Volunteering	3	(9,847)	-	(9,847)	7,695	-	7,695
GB Projects	3	-	233,598	233,598	-	-	-
HFHGB (Homes)	3	320,216	76,456	396,672	326,040	53,350	379,390
Investments		3,135	-	3,135	134	-	134
Total income		1,147,810	1,901,373	3,049,183	842,492	2,108,022	2,950,514
Expenditure on:
Raisingfunds	5	428,585	45,742	474,327	421,509	33,329	454,838
Charitable activities
Disaster risk reduction &	5	81,561	197,976	279,537	28,831	687,714	716,545
response
Advocacy	5	158,751	178,550	337,301	39,281	167,782	207,063
International Development	5	166,967	826,318	993,285	97,758	829,174	926,932
International Volunteering	5	-	-	-	803	-	803
GB Projects	5	38,930	36,351	75,281		-
HFHGB (Homes)	5	291,130	430,779	721,909	256,319	298,980	555,299
GB Homes - restated		-	-	-	30,936	-	30,936
expenditure for FY22
Total expenditure		1,165,924	1,715,716	2,881,640	875,437	2,016,979	2,892,416
Net income / (expenditure)		(18,114)	185,657	167,543	(32,945)	91,043	58,098
for theyear
Transfers between funds		27,614	(27,614)	-	865	(865)	-
Net movement in funds		9,500	158,043	167,543	(32,080)	90,178	58,098
Reconciliation of funds:
Total funds brought forward
As originallyreported	23	1,226,910	1,116,646	2,343,556	1,235,575	1,026,468	2,262,043
Prioryear adjustment		(30,936)	-	(30,936)	-	-	-
As restated		1,195,974	1,116,646	2,312,620	1,235,575	1,026,468	2,262,043
Total funds carried forward		1,205,474	1,274,689	2,480,162	1,203,495	1,116,646	2,320,141

as at June 2023

The Group

The Charity

		2023	2022	2023	2022
			(restated)
	Note	£	£	£	£
Fixed assets:
Tangible assets	11	975,291	1,070,851	2,087	3,527
Programme related investments	18	43,867	75,160	-	-
		1,019,158	1,146,011	2,087	3,527
Current assets:
Debtors	12	256,614	432,800	153,251	310,938
Cash at bank and in hand		2,826,334	1,446,012	2,724,491	1,334,149
		3,082,948	1,878,812	2,877,742	1,645,087
Liabilities:
Creditors: amounts falling due within	13	1,382,732	541,181	1,229,120	376,056
oneyear
Net current assets		1,700,216	1,337,630	1,648,622	1,269,031
Creditors: Amounts falling due after	14	239,212	163,500	136,156	31,794
more than oneyear
Total net assets		2,480,162	2,320,140	1,514,553	1,240,764
Funds:
Restricted income funds	10	1,274,690	1,116,646	1,260,524	983,545
Unrestricted income funds	10
As originally reported in FY22		1,205,472	1,234,431	254,029	257,219
Prior year adjustment		-	(30,936)	-	-
As restated		1,205,472	1,203,495	254,029	257,219
Total funds		2,480,162	2,320,141	1,514,553	1,240,764

The Financial Statements were approved and authorised for issue by the trustees on 30 January 2024 and signed on their behalf by:

Company no: 3012626 Charity no: 1043641 Scotland: SCO48638

Gordon Holmes Director, Honorary Treasurer

Nicola Barclay Director, Chair of the Board

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consolidated statement of cash flows

for the year ended 30 June 2023

The Group

2023 £ £	2022 £ £
Cash flows from operating activities
Net cash provided by (used in) operating activities(see note below) 1,264,126	57,345
Cash flows from investing activities:
Dividends, interest and rents from investments 3,135	134
Purchase of fixed assets (9,985)	(47,981)
Repayments of investments 31,293	35,435
Net cash provided by investing activities 24,443	(12,412)
Cash flows from financing activities:
Repayments of borrowing (48,260)	(26,705)
Financing costs (6,202)	(6,182)
Cash inflows from new borrowing 125,000	-
Net cash provided by financing activities 70,538	(32,887)
Change in cash and cash equivalents in the year 1,359,107	12,046
Cash and cash equivalents at the beginning of the year 1,446,012	1,777,933
Change in cash and cash equivalents due to exchange rate 21,214	41,662
Cash and cash equivalents at the end of the year 2,826,333	1,831,641
Reconciliation of net income / (expenditure) to net cash flow from operating activities
2023 £	2022
	£
Net income / (expenditure) for the reporting period
(as per the statement of financial activities) 167,543	89,034
Depreciation charges 49,784	73,258
(Gains)/losses on investments -	-
Dividends, interest and rent from investments (3,135)	(134)
Interest paid 6,202	6,182
(Profit)/loss on the disposal of fixed assets 55,761	-
Increase (Decrease) in stocks -	-
Foreign exchange loss/(gain) (21,214)	(41,662)
(Increase)/decrease in debtors 123,307	(95,179)
Increase/(decrease) in creditors 885,879	25,847
-	-
Net cash provided by / (used in) operating activities 1,264,126	57,345
All cash and cash equivalents at 30 June 2023 and 30 June 2022 were held as cash at bank and in hand.
Analysis of changes in net funds 1st July 2022 £	Cashflow 30th June 2023 £
Cash 1,446,012	1,380,321 2,826,333
Loans falling due within one year (37,061)	(14,457) (51,518)
Loans falling due after more than one year (163,500)	(75,712) (239,212)
1,245,451	1,290,152 2,535,603

1. accounting policies

a) basis of preparation

Habitat for Humanity Great Britain is a charitable company limited by guarantee, registered in England and Wales. The registered office is disclosed on page 2. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

These financial statements consolidate the results of the charitable company and its wholly-owned subsidiary HFHGB (Homes) on a line by line basis. Transactions and balances between the charitable company and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two companies are disclosed in the notes of the charitable company’s balance sheet. A separate statement of financial activities for the charitable company itself is presented in note 24.

b) public benefit entity

The charitable company meets the definition of a public benefit entity under FRS 102.

c) income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. Income from charitable activities includes income from restricted grants, received contractual arrangements and from performancerelated grants which have conditions that specify the provision of particular goods or services to be

provided by the charity.

Grants listed under income from charitable activities are undertaken for the charitable purposes of the charity. Income related to International Volunteering is included within the income from charitable activities as HFHGB recognises the obligation to provide volunteer placements upon meeting of fundraising targets by volunteer teams.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

Income raised by HFHGB (Homes) is retained by the subsidiary and used to further its charitable objects.

The functional and presentational currency of the group is sterling.

d) donations of gifts, services, and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution. On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

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e) interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

f) fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

g) expenditure and irrecoverable tax

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably.

Expenditure is classified under the following activity headings:

• Costs of raising funds relate to the costs incurred by the charitable company in inducing third parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose

• Expenditure on charitable activities includes the costs of delivering services, advocacy and awareness raising undertaken to further the purposes of the charity and their associated support costs

• Other expenditure represents those items not falling into any other heading.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

h) allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on staff time, of the amount attributable to each activity. The support and governance costs of the subsidiary are allocated directly to the HFH (Homes) charitable activity in the consolidated accounts and therefore no other costs are allocated here.

Cost of Generating Funds	43%
Disaster risk reduction and	5%
response
Advocacy	16%
International Development	22%
GB Projects	13%

Fundraising and promotion costs are apportioned between fundraising and charitable activities either directly or on the basis of the content percentage measured in the number of pages, occupied by each activity. Website and other digital publicity costs are apportioned based on the website content percentage, measured in the number of pages, occupied by each activity. The average allocations for publicity materials, website and digital are:

Cost of Generating Funds	25%
Disaster risk reduction and	25%
response
International Development	25%
International Volunteering	25%

i) operating leases

Rental charges are charged on a straight-line basis over the term of the lease. Lease incentives are recognised over the lease term on a straightline basis.

j) tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities.

Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Where fixed assets have been revalued, any excess between the revalued amount and the historic cost of the asset will be shown as a revaluation reserve in the balance sheet.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Furniture and fixtures	10 years
Computers and IT equipment	3 years
Other equipment	5 years
Short-term leasehold properties	Over life of lease

k) short-term leases

As part of the empty homes projects, HFHGB (Homes) enters into short term leases with either the local authority or housing association to enable the charity to generate rental income which will fund the cost of the renovation.

The cost of the renovation is capitalised and depreciated over the life of the lease to the extent that future rental income will be received. Where the renovation expenditure is funded from grant income, the expenditure is charged to the statement of financial activities.

l) grant making

Grants payable to other HFH entities are recognised as expenditure when payment is due, in accordance with the terms of the contract (Grant Funded Activities Agreement or Term Sheet). Grant payments that are subject to the recipient fulfilling performance conditions are only accrued when any remaining unfulfilled conditions are outside of the control of HFHGB. Amounts owed to implementing affliates for contracts in place at year-end are accrued only

if funds transfer approvals have been achieved but awaitng further approval from the area office. Such payables are disclosed as part of Note 13 under accruals.

m) investments in subsidiaries

Investments in subsidiaries are recognised at cost.

n) debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

o) cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Cash balances exclude any funds held on behalf of service users.

p) creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

q) employee benefits

Short term employee benefits (including holiday entitlement and other non-monetary benefits) and contributions to defined plans are recognised as an expenses in the period in which they are incurred. The company recognises an accrual for accumulated annual leave accrued by employees as a result of service rendered in the current period for which employees can carry forward and use within the next year. The accrual is measure at the salary costs of the respective employee in relation to the period of absence.

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r) pensions

HFHGB offers a Group Personal Pension defined contributions scheme to all staff. In line with the relevant staging date, from February 2017, HFHGB implemented changes to this scheme aligning it with the auto-enrolment requirements.

s) foreign currencies

HFHGB holds funds in GBP and USD. The value of USD account balance in GBP is stated at the closing rate at the balance sheet date. Transactions in foreign currencies are translated at the exchange rate ruling at the date of transactions.

t) programme related investements

Programme related investments are stated at cost price at the balance sheet date. Such investments are subject to review and any diminution in value is charged to the statement of financial activities.

u) financial instruments

The Group only has financial assets and liabilities of a kind that qualify as basic financial instruments. These are initially recognised at transaction value and subsequently valued at their settlement value.

v) judgements of key sources of estimation uncertainty

The preparation of financial statements requires management to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on a continuing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key judgements and sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described as follows:

• Timing of income recognition

• Carrying value of programme related investments

• Carrying value of short term leasehold properties used as part of the empty homes projects

“ Empty Homes Project Funding: As part of its primary purpose trading, HFHGB (Homes) enters into commercial contracts with a local authority to undertake renovation work on empty local authority properties. Under the existing contract arrangements, HFHGB (Homes) charges 76% of its renovation costs to the local authority which is invoiced in arrears in accordance with a value of works calculated by surveyors. Funding for the Empty Homes Project is also raised from corporate donors through its parent charity. This restricted funding is usually received in advance of the renovation work and is used to provide working capital for the project. The charity has received legal advice that such use as working capital for the Empty Homes Project expends the restricted funds received from corporate donors, with the resulting accounting policy being to charge the cost of the renovation work to the restricted funds, up to the level of the funds available, notwithstanding that 76% of the costs are recoverable from the local authority. This utilisation of restricted funds is deemed a significant judgement because donors may have an expectation that their funding would not be utilised to fund a project to the extent that the costs of the project are already due to be funded under a commercial contract.

w) going concern

The trustees have reviewed the Group’s forecasts and operating plans some of which have been risk weighted to take into the uncerternities in the fundraising environment. Whilst it is difficult to predict the potential implications on the delivery of the group’s social value, its operations and income streams with certainty, on the basis of this analysis, the trustees have a reasonable expectation that the group will have adequate resources to continue in operational existence for the foreseeable future and it is therefore appropriate to adopt the going concern basis of accounting for these financial statements.

2. income from donations and legacies

2023 Unrestricted Restricted Total £ £ £	2022 Total £
Individuals 185,922 - 185,922	173,013
Churches & Civic Groups 1,120 - 1,120	2,385
Companies and Employee Fundraising 332,634 63,000 395,634	124,724
Foundations, Organisations and Institutions 47,898 - 47,898	39,890
Major Donors 38,782 - 38,782	28,340
Legacies 119,879 - 119,879	66,517
HFHI transfers - - -	200,000
Gifts in Kind 20,703 - 20,703	50,000
Gift Aid recovered 81,118 - 81,118	42,891
UK Projects 6,250 6,250	-
Other - 1,044 1,044	10,785
834,306 64,044 898,350	738,545

Gifts in kind relate to office rental services donated in the year by Construction Industry Solutions Limited (COINS), now Leo Lion Ltd. Robert Brown who is a Director of HFHGB is also the CEO of Leo Lion Ltd.

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3. income from charitable activities

			2023	2022
	Unrestricted	Restricted	Total	Total
	£	£	£	£
Disaster Risk Reduction and Response:
M & G Plc	-	22,500	22,500	-
Standard Chartered	-	-	-	82,517
Rolls Royce	0	417,180	417,180	29,702
Schutz Engel Trust	0	-	-	20,520
Paprika	0	-	-	9,000
Daughters of Jesus	0	9,000	9,000	-
Lloyds of London	0	403	403	-
Other	-	21,534	21,534	366,641
Sub-total for Disaster Risk Reduction and Response	-	470,617	470,617	508,380
M & G Plc	-	114,720	114,720	296,587
COINS Foundation	-	-	-	-
Blackstone	-	-	-	110,152
John Laing Charitable Trust	-	40,000	40,000
Stitching TCC Foundation	-	10,553	10,553
The Albert Hunt Trust	-	5,950	5,950
B & Q Foundation	-	4,183	4,183
Arnolld Clarke Community Foundation	-	1,000	1,000
Other	-	-	-	700
Sub-total for Advocacy	-	176,406	176,406	407,439
International Development:
JOAC	-	244,518	244,518	244,898
Towerbrook	-	34,281	34,281	108,849
Miller Homes	-	-	-	22,500
GOAC	-	22,000	22,000	-
Touchstone	-	-	-	90,431
COIN	-	100,000	100,000	150,000
Stiching TCC Foundation	-	29,567	29,567	31,225
Martin Howden	-	10,425	10,425	-
Comic Relief	-	18,186	18,186	16,751
Lloyds of London	-	4,706	4,706	167,481
Saffery Read	-	45,980	45,980	35,520
Chris Endsor	-	262,500	262,500	-
Forrester Family Trust	-	35,000	35,000	-
Allan & Nesta Ferguson Charitable Trust	-	22,500	22,500	-
Neale Kemp	-	20,000	20,000	-
Paprika Finance	-	8,500	8,500	-
Chalk Cliff Trust	-	4,250	4,250	-
Peter Stebbings Memorial Charity	-	4,250	4,250	-
Evan Cornish Foundation	-	3,400	3,400	-
Peter Flynn	-	2,500	2,500	-
Carmela and Ronnie Pignatelli Foundation	-	2,125	2,125	-
CB & HH Taylor Charitable Trust	-	2,125	2,125	-
The Grace Trust	-	1,700	1,700	-
St Mary’s Charity	-	850	850	-
Ian Askew Charitable Trust	-	425	425	-
Other	-	464	464	41,276
Sub-total for International Development	-	880,252	880,252	908,931

			2023	2022
	Unrestricted	Restricted	Total	Total
	£	£	£	£
International Volunteering:
Corporate Teams	-	-	-	7,695
Open Teams	(9,847)	-	(9,847)	-
Friends and Family	-	-	-	1,699
Sub-total for International Volunteering	(9,847)	-	(9,847)	7,695
GB Projects:
Lords Group Trading Plc	-	6,119	6,119	-
Faegre Drinker	-	3,220	3,220	-
Situs AMC	-	3,805	3,805	-
Schroder Charity Trust	-	4,250	4,250	-
Situs AMC	-	4,717	4,717	-
Royal Bank of Canada	-	6,440	6,440	-
Benefact Trust	-	8,080	8,080	-
Wells Fargo Foundation	-	19,027	19,027	-
Garfield Weston Foundation	-	27,000	27,000	-
Bank of America Charitable Foundation	-	32,190	32,190	-
Postcode Innovation Trust	-	118,750	118,750	-
Sub-total for GB Projects	-	233,598	233,598	-
Rental Income	96,618	-	96,618	98,150
Volunteer Facilitation Grants	2,500	-	2,500	10,170
Affiliate Pass - Through Funds	-	40,202	40,202	-
Europa Capital LLP	-	8,000	8,000	-
Montague Evans	-	28,254	28,254	-
Whirlpool	-	-	-	41,667
Other	-	-	-	11,683
Professional Fees	4,518	-	4,518	58,379
Contract Works	216,488	-	216,488	153,302
HMRC Job retention scheme	-	-	-	5,432
Other income	92	-	92	607
Sub-total for HFH HOMES	320,216	76,456	396,672	379,390
Total income from charitable activities	310,369	1,837,328	2,147,697	2,211,835

Income from charitable activities includes restricted grants by donor over £30,000. ‘Other’ includes smaller grants.

4. other income

4. other income
2023 Unrestricted Restricted Total £ £ £	2022 Total £
Investment income 3,135 - 3,135	134
Other Incoming Resources -	-
Total other income 3,135 - 3,135	134

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5. analysis of expenditure

Charitable activities

				Disaster Risk						Support and	2023	2022	Basis of
	Cost of raising funds			Reduction and Response	Advocacy	International Development	International Volunteering	HFH GB Homes GB Projects		governance costs	Total	Total	alloca- tion
			£	£	£	£	£	£	£	£	£	£
Staff costs		290,140		43,322	85,668	133,254	-	196,415	14,424	154,145	917,368	780,163	Staff
													time &
													cost
Recruitment			-	-	-	-	-	-	429	-	429	20,665	Direct
costs
Training			-	-	40	-	-	-	686	2,304	3,030	1,787	Direct
Consultancy			6,990	-	200	11,000	-	-	8,338	3,176	29,704	31,400	Direct
costs
Grants to			-	189,140	135,710	751,251	-	-	0	-	1,076,101	1,487,909	Direct
HFH Projects
Grants			-	-	-	-	-	-	0	-	-	-	Direct
returned
International Project expenses				-	24,747	-	-	-	0	-	24,747	-	Direct
Domestic			-	-	-	-	-	314,124	0	-	314,124	223,445	Direct
project
expenses
GB Homes			-	-	-	-	-	-	0	-	-	30,936	Direct
- Restated
expenditure
for FY22
Project			-	-	-	-	-	48,344	8,226	(8,226)	48,344	72,371	Direct
depreciation
Fundraising		30,523		30,870	38,487	30,859	-	-	42	1,501	132,282	34,964	Direct
and													and
promotions													content
													%
Office costs		33,241		2,575	10,136	10,064	-	24,197	6,633	12,235	99,081	96,181	Direct
Travel costs			6,463	633	3,604	5,253	-	-	1,713	2,270	19,936	7,389	Direct
Audit and			-	-	-	-	-	-	0	17,940	17,940	17,350	Direct
accountancy
Legal and			259	-	-	-	-	122,395	0	1,536	124,190	65,725	Direct
professional
Bad debt expense				-	-	-	-	-	0	-	-	(1,683)	Direct
Other		13,043		1,161	3,479	4,614	-	10,233	3,376	4,827	40,733	56,021	Direct
expenses
Foreign			-	-	-	-	-	-	0	21,214	21,214	(41,662)	Direct
exchange loss
/ (gain)
Bank charges			784	-	-	-	-	6,202	2,522	2,909	12,417	9,455	Direct
and interest
Sub-total	381,443			267,701	302,071	946,295	-	721,910	46,389	215,831	2,881,640	2,892,416
Governance			8,101	1,032	3,073	4,098	-	-	2,520	(18,824)	-	-
costs
Support costs		84,783		10,804	32,157	42,891	-	-	26,373	(197,007)	-	-	Staff
													time
Total	474,327			279,537	337,301	993,284	-	721,910	75,282	-	2,881,640	2,892,416
expenditure
2023
				2023 £	2022 £
Depreciation				98,128	73,258
Auditors' remuneration (excluding VAT)				22,300	20,700
Foreign exchange (gains) losses		or		21,214	(41,662)
Operating lease expenses				2,222	3,095

6. grants for HFH projects

All transfers were made to the national HFH organisations except those marked * which were made to HFHI as the entity managing the funds on behalf of the country organisation.

Disaster Risk Reduction & Response Advocacy International Development 2023 Total Country/ Region £ £ £ £	2022 Total £
Bangladesh - - 4,675 4,675	-
Cambodia - - 2,191 2,191	87,911
Ethiopia - - 141,796 141,796	253,256
Hong Kong - - 10,553 10,553	-
India - 710 - 710	277,211
Kenya - - 4,250 4,250	11,050
Lebanon - - 37,125 37,125	-
Malawi - - 202,285 202,285	261,928
Nepal - - 225,356 225,356	-
Romania - - 31,340 31,340	29,452
South Africa - - 25,000 25,000	-
Sri lanka - - 41,280 41,280	44,400
Uganda - - 22,000 22,000	-
Ukraine 189,140 - - 189,140	427,701
Zambia - - 3,400 3,400	50,000
UK Projects - 135,000 - 135,000	45,000
Total 189,140 135,710 751,251 1,076,101	1,487,909

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7. staff costs

8. staff numbers

The average number of employees (head count based on number of staff employed) during the year was as follows:

Staff costs were as follows:

Staff costs were as follows:
	2023	2022
	£	£
Salaries and wages	792,108	666,052
Redundancy and termination costs	-	3,500
Social security costs	78,717	62,765
Employer’s contribution to defined contribution pension schemes	25,502	18,935
Contract labour	-	36,067
Total	896,327	787,319
During the year, the following staff earned in excess of £60,000:
	2023	2022
£60,001 - £70,000	3	1
£70,001 - £80,000	1	1
£80,001 - £90,000	-	-
£90,001 - £100,000	-	-

The total employee benefits including pension contributions of the key management personnel were £339,776 (2022: £372,608).

The charity trustees were not paid or received any other benefits from employment with the charity in the year (2022: £nil). No charity trustee received payment for professional or other services supplied to the charity (2022: £nil).

Nicola Barclay the Chair of the Trustees was reimbursed £1,782 this year for travel expenses; (2022: £120).

2023 No.	2022 No.
Raising funds 4.9	5.9
Advocacy and DR3 0.6	1.8
International Development 1.8	2.2
International Volunteering 2.5	-
GB Projects 1.5	-
HFHGB (Homes) 5.0	5.0
Governance 0.7	0.7
Support 1.9 18.9			2.1
			17.7

9. analysis of group net assets between funds

9. analysis of group net assets between funds	9. analysis of group net assets between funds	9. analysis of group net assets between funds	9. analysis of group net assets between funds	9. analysis of group net assets between funds
The Group The Charity 2023 2022 2023 2022 General unrestricted Restricted funds Total funds Total funds General unrestricted Restricted funds Total funds Total funds £ £ £ £ £ £ £ £
Tangible fixed assets	975,291 -	975,291 1,070,851	2,087 -	2,087 3,527
Programme related investments	43,867 -	43,867 75,160	- -	- -
Net current assets	425,527 1,274,690	1,700,217 1,337,630	388,098 1,260,524	1,648,622 1,269,031
Long term liabilities	(239,212) -	(239,212) (163,500)	(136,156) -	(136,156) 31,794
Defined benefit pension asset / (liability)	- -	- -	- -	- 0
Net assets at the end of the year	1,205,473 1,274,690	2,480,162 2,320,141	254,029 1,260,524	1,514,553 1,240,764

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10. movements in funds

	At the start of the	Fund	Incoming	Outgoing resources &	At the end of the
	year	movement	resources & gains	losses	year
	£		£	£	£
Restricted funds:
HFHGB
Grants over £30,000
JOAC	3,910	-	244,518	(246,956)	1,472
COINS Foundation	-	-	100,000	(100,000)	-
Lloyds of London	23,321	-	5,109	(28,597)	-167
M & G Plc	455,946	(21,500)	137,220	(225,066)	346,600
Towerbrook	70,666	-	34,281	(71,621)	33,326
Blackstone	33,022	(5,114)	-	(20,457)	7,451
Rolls Royce	29,697	-	417,181	(41,033)	405,845
Chris Endsor	-	-	262,500	(190,683)	71,817
Saffery Read	-	-	45,980	(41,480)	4,500
Forrester Family Trust	-	-	35,000	(35,000)	-
Bank of America Charitable Foundation	-	-	32,192	(32,192)	-
Postcode Innovation Trust	-	-	118,750	(12,931)	105,819
John Laing Charitable Trust	-	-	40,000	(40,000)	-
HFHI Investement Agreement	147,959	-	-	(93,178)	54,781
Smaller Grants	85,506	(1,000)	353,984	(289,428)	149,061
Non-reportable donors (restricted donations)	133,520	-	11,659	(65,159)	80,020
Sub-total for HFHGB	983,547	(27,614)	1,838,374	(1,533,781)	1,260,524
HFHGB Homes
Grants over £30,000
Tunbridge wells DC/Society of friends	-		-	-	-
Bank of America	-		-	-	-
Smaller Grants	133,100		63,000	(181,935)	14,166
Sub-total for HFHGB Homes	133,100		63,000	(181,935)	14,166
Total restricted funds	1,116,647	(27,614)	1,901,373	(1,715,716)	1,274,690
Unrestricted funds:
HFHGB
General unrestricted funds	257,219	27,614	827,225	(858,029)	254,029
HFHGB Homes
General unrestricted funds - as originally reported	969,691	-	320,585	(307,897)	982,379
Prior year adjustement	-30,936	0	0	0	-30,936
As restated	938,755	0	320,585	-307,897	951,443
Total unrestricted funds	1,195,974	27,614	1,147,810	(1,165,926)	1,205,472
Total funds	2,312,621	-	3,049,183	(2,881,641)	2,480,162

11. tangible fixed assets

The Group

The Charity

		Short Term			Fixtures,		Fixtures,
	Assets under	Leasehold	Office, Land	Plant &	fittings &		fittings &
	Construction	Properties	& Buildings	machinery	equipment	Total	equipment	Total
	£	£	£	£	£	£	£	£
Cost
At the start of the year	122,321	1,352,998	30,160	17,287	31,597	1,554,363	27,262	27,262
Additions in year	6,602	-	-	3,383	-	9,985	-	-
Disposals in year	(55,761)	(212,751)	-	(620)	-	(269,132)	-	-
At the end of the year	73,162	1,140,247	30,160	20,050	31,597	1,295,216	27,262	27,262
Depreciation
At the start of the year	-	438,791	1,734	14,917	28,070	483,512	28,070	28,070
Charge for the year	-	45,863	102	2,379	1,440	49,784	1,440	1,440
Eliminated on disposal	-	(212,751)	-	(620)	-	(213,371)	-	-
At the end of the year	-	271,903	1,836	16,676	29,510	319,925	29,510	29,510
Net book value
At the end of the year	73,162	868,344	28,324	3,374	2,087	975,291	2,087	2,087
At the start of the year	122,319	914,207	28,426	2,370	3,528	1,070,851	3,528	3,528

Assets under construction comprise renovations to Short Term Leasehold properties prior to them being available for letting.

Grants over £30,000 include multi-year grants; value in the financial year may be lower. ‘Domestic Projects’ include grants and donations received by HFHGB and restricted to HFHGB Homes. ‘Non-reportable donors’ include donations restricted to specific countries, themes, or projects.

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12. debtors

12. debtors
The Group 2023 £	The Charity 2022 2023 £ £	2022 £
Trade debtors 702	56,182 -	-
Other debtors 205,347	356,060 140,349	299,668
Prepayments 18,305	16,244 12,902	11,270
VAT 32,260	4,314 -	-
256,614	432,800 153,251	310,938

13. creditors: amounts falling within one year

The Group 2023 £	The Charity 2022 2023 £ £	2022 £ 21,258 20,268 100,000 225,031 9,499 - 376,056
Trade creditors 96,827	32,354 105,777
Taxation and social security 26,872	22,733 22,867
Deferred income 868,633	100,000 868,633
Accruals 307,970	318,097 208,916
Loans 51,518	37,061 22,927
Other creditors 30,912	30,936 -
1,382,732	541,181 1,229,120

HFHGB Deferred Income: This is income received in advance of its planned activities implementation timeline. £368,633 of this income is a grant from JOA for the microfinance project in Zambia that took off in FY24. £300,000 is a grant from Postcode Lottery Justice fund given to finance the community hub project as part of the ReStore business plan, and £200,000 is money from HFHI in regards to the fundraising capacity building support that began in FY22.

14. creditors: amounts falling due after more than one year

The Group 2023 £	The Charity 2022 2023 £ £
		2022 £ 31,794 - 31,794
Loans: balance repayable in 1-5 years 190,384	131,301 105,500
Loans: balance repayable in more that 5 years 48,828	32,199 30,656
239,212	163,500 136,156

Habitat Homes: The loans are secured against the assets of HfHGB (Homes) under a fixed and floating charge. The first loan is repayable in monthly instalments of £1,485.06 which include interest charged at a rate of 3.75%. The term of the loan is 9.5 years from the date of drawdown of the loan. In 2019 an additional loan of £100,000 was drawn down, and in 2020 a further £23,500 was drawn down to fund the East Street development. It is repayable over 10 years from the date of completion and interest is chargeable at 3.25%. HFHGB: The loan outstanding here is £159,083. Of which £31,561 is balance on the £50,000 taken in 2020 under the government’s Covid-19 Bounce Back Loan arrangement at a rate of 6.5%. £127,522 is outstanding out of the £125,000 taken in 2022 from PostCode Lottery for ReStore operations at a rate of 3%.

15. financial instruments

15. financial instruments	15. financial instruments	15. financial instruments
The Group The Charity 2023 2022 2023 £ £ £			2022 £ - - 299,668 299,668 21,258 100,000 41,293 225,031 387,582
Financial assets
Debt instruments measured at amortised cost:
Programme related investments 43,867	75,160 -
Trade debtors 702	56,182 -
Other debtors 205,347	356,060 140,349
249,916	487,402 140,349
Financial liabilities
Measured at amortised cost
Trade creditors 96,827	32,354 105,777
Deferred income 868,633	100,000 868,633
Loans 290,730	200,561 159,083
Other creditors 30,912	318,097 208,916
1,287,102	651,012 1,342,409

16. operating lease commitments

The charity’s total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:

following periods:
	Property		Equipment
	2023	2022	2023	2022
	£	£	£	£
Less than one year	-	-	2,222	3,095
One to five years	-	-	422	2,644
	-	-	2,644	5,739

Restated lease amount payable over one - 5 years is FY22 from £2,384 to £2,644.

17. related party transactions

Gordon Holmes: No fund were recieved from Gordon Holmes, a trustee and treasurer to the board of trustees. 2022: £7,435

COINS: Constructions Industry Solutions Ltd (Foundation) donated £100,000 in restricted funds. Robert Brown (CEO) of COINS is a trustee of HFHGB. 2022: £150,000. The Charity also received a gift in kind of office space for 147 days worthy £20,137 from COINS.

Towerbrook donated £34,281 in restricted funds. Gordon Holmes (CEO) of Towerbrook is a trustee of HFHGB. 2022: £108,849.

HFHI - £100,000 was received from HFHI as restricted funding for additional capacity needed to deliver on the new strategy. This is in addition to the £300,000 received in FY21 of which £200,000 was recognised as income in FY22 and £100,000 was booked as deferred income. The £100,000 received this year has also been deferred as it’s planned for costs in FY24. HFHGB remains an independent UK charity controlled by the Directors/Trustees.

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18. programme investments

18. programme investments
2023 Cost or Valuation £	2022 £
At 1st July 2022 75,160	110,595
Additional Loans in Year -	-
Repayments (31,293)	(35,435)
At 30th June 2023 43,867	75,160
Repayable within one year 28,283	32,653
Repayable in more than one year 15,584	42,507
43,867	75,160

The values stated relate to houses built by HFHGB (Homes) in partnership with low income families which have been sold at cost price with interest free mortgages. This core activity involves the charity disposing of assets at less than market value, requiring permission from the Charity Commission. The Charity Commission has cleared the way for HFHGB (Homes) to sell houses without further reference to the Commission.

19. capital commitments

At the balance sheet date, the group had no capital commitments (2022: None).

20. contingent assets or liabilities

There were no contingent liabilities as at 30 June 2023 (2022: None).

21. legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

22. subsidiary details

HFHGB (Homes), Registered Office: 93 Gordon Road, London, SE15 3RR, Registered Company No: 03155218, Registered Charity No: 1053213, is a wholly controlled subsidiary of HFHGB. HFHGB (Homes) total income for the year was £632,443 (2022: £585,100) and total expenditure for the year was £738,689 (2022: £570,278). As at 30 June 2023 HFHGB Homes held £14,166 in Restricted Funds (2022: £310,601) and £951,444 in Unrestricted Funds (2022: £799,712).

23. prior year adjustment

The arrangement for three leased properties, at Kings Grove, Nithdale, and Ringstead Road, is that HFHGB (Homes) are required to set aside 10% of lease receipts for the purpose of bringing the properties up to a standard in which the properties are in a satisfactory condition to be re-let at the end of the lease. Required maintenance costs are to be deducted from these funds. During the year it was identified that HFHGB (Homes) is required to pay any excess funds not spent on maintenance costs to the landlord. A prior year adjustment has therefore been processed in the accounts to include this liability to the landlords. The adjustment amounted to an increase in creditors at 30th June 2022 amounting to £30,936, with a corresponding reduction in reserves.

24. HFHGB single charity SOFA

			2023			2022
	Unrestricted	Restricted	Total	Unrestricted	Restricted	Total
	£	£	£	£	£	£
Income from:
Donations and legacies	833,937	1,044	834,981	508,510	219,922	728,432
Charitable activities
Disaster risk reduction & response	-	470,617	470,617	-	508,380	508,380
Advocacy	-	176,406	176,406	-	407,439	407,439
International Development	-	880,252	880,252	-	908,931	908,931
International Volunteering	(9,847)	-	(9,847)	7,695	-	7,695
GB Projects	-	233,600	233,600	-	-	-
HFHGB Homes	-	76,455	76,455	-	53,350	53,350
Investments	3,135	-	3,135	134	-	134
Total income	827,225	1,838,374	2,665,599	516,339	2,098,022	2,614,361
Expenditure on:
Raising funds	411,819	45,741	457,560	406,518	33,329	439,847
Charitable activities
Disaster risk reduction & response anand Advocacy	81,561	197,977	279,538	28,831	687,714	716,545
Advocacy	158,752	178,550	337,302	39,282	167,782	207,064
International Development	166,967	826,318	993,285	97,758	829,174	926,932
International Volunteering	-	-	-	803	-	803
GB Projects	38,930	36,351	75,281
HFHGB Homes	-	248,845	248,845	(17,352)	266,311	248,959
Total expenditure	858,029	1,533,782	2,391,811	555,839	1,984,310	2,540,150
Net income / (expenditure) before transfers	(30,804)	304,592	273,788	(39,500)	113,712	74,211
Transfer between funds	27,614	(27,614)	-	865	(865)	-
Net income / (expenditure) for the year	(3,190)	276,978	273,788	(38,635)	112,847	74,211
Reconciliation of funds:
Total funds brought forward	257,219	983,546	1,240,765	295,854	870,698	1,166,552
Total funds carried forward	254,029	1,260,524	1,514,553	257,219	983,545	1,240,764

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company number: 3012626 charity number:

1043641 (England and Wales) SCO48638 (Scotland)

registered office and operational address: 268 Bath Road, Slough, SL1 4DX

trustees:

Trustees who are also directors under company law, who served during the year and up to the date of this report were as follows:

Nicola Barclay Chair

Susan Revell Vice Chair

Gordon Holmes Treasurer

Ian Whitehead Trustee

Cynthia Laumuno Trustee

Rick Hathaway Trustee

Alistair Mugford Trustee (appointed February 2023)

Holly Carter Trustee (appointed August 2023)

Julien Gagnon Trustee

Robert Brown Trustee

Ross Avery Trustee (appointed November 2023)

key management personnel: Henrietta Blackmore National Director

Tessa Kelly Director of Development

Victoria Bakulumpagi Director of Finance

Akira Akazawa Director of Impact

David Clare

Chief Executive Officer, HFHGB (Homes) (appointed 23 May 2022)

patrons:

H.R.H The Duke of Gloucester KG GCVO The Rt. Hon. Alistair Burt MP The Rt. Hon Sir Simon Hughes Terry Waite CBE Michael Kirkwood CMG

bankers:

National Westminster Bank Plc, 1 Town Hall Buildings, Bridge Street, Banbury, OX16 5JS

solicitors:

Bates Wells, London LLP, 10 Queen Street Place, London, EC4R 1BE

auditors:

Azets Audit Services, Gladstone House, 77-79 High Street, Egham, TW20 9HY

Habitat for Humanity Great Britain

268 Bath Road, Slough, SL1 4DX

Tel: [phone]

habitatforhumanity.org.uk