Society of St James Report and Flnancial Statements Year Ended 31 March 2024 Company Number.. 03009700 Charity Number: 1043664 Society of St James Annual report and financial statements for the year ended 31 March 2024 Contents Page: Reference and administrative Information 2-14 Report of the Board of Trustees incorporating a Strategic Report 1&18 Report of the independent auditors 19 Statement of Comprehensive Income 20 Statement of Changes in Reserves 21 Statement of Financial Position 22 Cash Flow Statement 2341 Notes formlng part of the financial statements Society of St James Reference and administratlve Information for the year ended 31 March 2024 Trustees and Dlrectors.. S Butterfill P Hillary G Marshall J Osman (appointed 15 October 2015) (appointed 27 October 2016) (appointed 12 October 2017) (appointed 12 October 2017, resigned 4 July 2023) (appointed 5 February 2019, resigned 31 December 2023) (appolnted 1 September 2020) (appointed 5 October 2021) (appointed 5 April 2022) (appointed 6 September 2022) (appointed 2 April 2024) (appointed 2 April 2024) (appointed 2 April 2024) (Chair) (Treasurer) R Hollis A Holdup A Davis JAsh A Chaudry A M Powell D Watson S Morgan Company Sacretary.. T Pickup T Marsh (until 2 July 2024) (from 2 July 2024) Senlor Staff T Pickup (Chief Executlve, retired 17 May 2024) T Marsh (Chief Executive, appointed 24 June 2024) A R Powell (Director of Finan￿ and Central Servlces) M Taylor (Operations Director) T Keall (Operations Director) N Wilsenham (Operations Director) G Nesbitt (Director of Asset Management) Reglstared Office: 125 Albert Road South Southampton S014 3FR Régistered Company Number: 03009700 Regulator of Soclal Houslng -Registration Number: LH4337 Raglstored Charity Number.. 1043664 Audltor8', CLA Evelyn Partners Limited Cumberland House 15- 17 Cumberland Place Southampton S015 2BG Sollcltors: Blake Morgan New Kings Court Tollgate Chandler's Ford Hampshire S053 3LG Bankers: Natwest 68 Above Bar Street Southampton S014 7DS Society of St James Report of the Board of Trustees Incorporatlng a Strateglc Report for the yéar ended 31 March 2024 Introduction The Board of Trustees presents its report and financial statements for the year ended 31 March 2024. which should be read in conjunction with the information on page 1. All Trustees are directors of the Charitable Company for the purposes of company law. Structure, Governance and Management The Society of St James (SSJI the Society) is a charitable company limited by guarantee and is registered with the Regulator of Social Housing {RSH) (number LH4337). The Ilability of the members is limited to their guarantee. In the event of SSJ being wound up during the period of the membership (or within the year following), members undertake to contribute such amounts as may be required, but not exceeding £10. SSJ is governed by the Board of Trustees, which meets at least quarterly. The Board has created four Committees to take specific interest in the areas of Personnel, Audit and Finance, Asset Management and Operations, who also meet at least quarterly. A Development Panel is also convened as required to provide a mechanism for Board supervision of new major projects as they arise. In line with good practice, SSJ also convenes a Directors, Remuneration Committee annually to appraise performance and set the Senior Management Team's salaries. SSJ'S policy is for these salaries to be broadly in line with median rates of pay for comparable posts as informed by independent specialists. Meetings are held both in person and virtually. During the year SSJ has helped to establish a Service User and Resident's Association (SURA) with the aim of ensuring Service Users have an independent body through which to Influence SSJ'S decision making. As a Registered Provlder (Housing Association) SSJ is required to meet the Standards set by the RSH, as its key regulator. In June 2023 the Board reviewed its own performance and the performance of the committees of the Board. It also revlewed the effectiveness of the current commlttee structure and systems in place to ensure that they provided effectlve governance arrangements for SSJ. The Chair of the Board also undertook appralsals with each of the Board members. The Board also recently reviewed the key risks facing SSJ and mechanlsms to ensure that they are addressed wlthin Board meetings and reports to the Board. The Board confirms that they comply wlth the Regulator of Social Housing governance and financial viabillty standard. SSJ seeks to recruit one or new Board members each year. The recrultment and induction process indudes a tour around some of SSJ'S projects and an introduction to SSJ'S work, Potential new Board members also attend a Board Meeting as observers befor8 appointment to the Board. All Board members serve In a voluntary capacity. it is not the policy of SSJ to remunerate Board members, The Chief Executlve reports to the Board, the senior staff report to the Chief Executive and the rest of the staff in tum report to the senior staff. SSJ has adopted the National Housing Federation Code of Governance and is working towards compliance with the 2020 edition. SSJ has made further progress this year towards achieving compliance with the Resident Engagement requirements., over the last 21 months our Servlce User Engagement Lead has organis8d numerous engagement and consuStation events and we have set up a Service User & Residents Assoclatlon (SURA). In order to work within the spirlt of the code and to follow good practice, the model of c￿prOduCtion is being followed as this area of work advances. The code requires a declaration of any areas of non-compllance. These are: 1) Resldent engagement - SSJ continues work to develop effective systems and processes in this area to make them fully compliant wlth the requirements of the code. 2) Slx-year maximum length of tenure on the Board - The code of governance provides flexibility to allow a Board member to stay on the board for up to 9 years if the organisation feels there Is good reason to do so. SSJ'S board has decided that, in Ilne with Charlty Commission guldance, a tenure of up to 9 years is preferable for the organisation. Society of St James Report of the Board of Trustees Incorporatlng a Strateglc Report (Continued) for the year ended 31 March 2024 Structure, Governance and Management {continued) The Trustees have given due conslderation to Charity Commission guidance on publlc benefit when reviewing objects and activities. Trustees are also mindful of the duties of Trustees under charlty law and have reviewed Charity Commission guidance and the Charities Governance Code checklist for larger charities in parallel with the RSH guidelines to ensure good governance practice. Objectlves and Actlvltles The Objectives of SSJ are: he relief of poverty, sickness, hardship and distress In particular but not excluslvely of persons who are homeless, unemployed or who have drug, alcohol or other substance addictions by the provision of housing, rehabllitation, care, support, education, trainlng and employment opportunities: in order to improve the individuals, opportunities and quality of life and to contribute to the wider community" SSJ seeks to achleve this through a range of activitles, which can be broken down between the following headings: Housing., Support. Care,. Substance Misuse Services. and Social Enterprise. SSJ agreed a 10-year strategy in the spring of 2019, to provide a long-term direction for its work which was reviewed in 2023-24. Further detail was provided in a 3-year Business Plan, agreed by the Board annually in October. The plan outlines how we wlll achieve our 5 overarchlng outcomes of.. Outcome 1: Meet the needs of homeless and vulnerable adults across our region Outcome 2: Provide safe accommodatlon and services that meet the needs of current and futures residents and service users Outcome 3: Be the provider of choice for contracted services for vulnerable indlviduals across Hampshire Outcome 4: Building the capacity and Infrastructure to support actual and planned growth each year Outcome 5: Work towards being a carbon neutral organisatlon. Housing SSJ provides a range of housing to homeless people In Southampton. Portsmouth and elsewhere In Hampshlre, ranging from hostels, through to shared housing to one-bedroom flats and two reglstered resldential care homes. SSJ also manages accommodation for homeless famllies in Southampton and Rushmoor. The numbers of bed spaces managed by SSJ are shown below: Bèds Owned Mana ed or leased Total aceslunits 2022 264 282 546 2023 280 240 520 2024 306 219 525 The reduction in managed or leased units was due to two main factors. Flrstly, the closure of the temporary accommodatlon unlt, North Lan8 Lodge (9 unlts) in Aldershot, whlch was replaced by the newly purchased Airport Lodge property. Secondly, SSJ ended a lease of 14 units that were substandard as the landlord was unwilling to make the necessary investment to brlng the property to an a¢￿ptable standard. For its owned property SSJ fulfils a full range of property maintenance obligations, from day-to-day repairs to managing a long-term repalrs and maintenance programme. As a Registered Provider SSJ offers tenancy or licence agreements, collects rents and generally fulfils the role of landlord. For leased or managed projects, SSJ fulfils some of the functions listed above, depending upon the form of agreement with the property owner. These often include maintenance obligations, offering tenancy and lI￿nCe agreements, and the collection of rent, Society of St James Report of the Board of Trustees Incorporating a Strateglc Report (Contlnued) for the year ended 31 March 2024 Objectlves and Activitles (continued) Support SSJ seeks to provide support beyond the services normally provided by a landlord to those living in its accommodation. This activity is largely funded through contracts from Local Authorities, under which SSJ received £3.247 million (2023 £2.946 million) during the year, enabling the employment of support staff in most residential projects. This increased as SSJ was successful in winning a number of contracts from local authorities and other statutory funders over the year. The support provided enables people previously homeless. with mental health issues and with substance misuse problems to maintain their housing and to develop skills to live independently in the community. SSJ is also supporting nlne residents in Aldershot in a homelessness hostel with Houslng Related Support being funded by fhe Local Authorlty The provision of Housing Related Support remains a major element of SSJ'S work, delivering services under contractual arrangements and being subject to a wlde range of inspection, regulatlon and monitorlng. In addition, as existing contracts explre, services are put out to competitive tender, so that a range of organisatlons have the opportunity to competitively bid to provide the service. These contractual arrangements are a crucial factor in forming a picture of the environment in which SSJ operates. Care Through St James Care, SSJ operates two reglstered care homes to create a specialist care service for people with backgrounds of homelessness, substance misuse and mental health issues. This provldes an appropriate environment forolderresidents who can no longer stay in their existing accommodation because of their increasing care needs. SubstanGe Misuse Services SSJ provides a number of non-residential services for people with substance misuse Issues. These servlces are provided In Portsmouth and elsewhere In Hampshire. Each area has a different structure for substance misuse services and SSJ provides a different service in each area. These services work with over 1,000 people at any one time, provlding a range of interventions to people with issues with alcoho5 and drugs. Each project is commlssloned through competitive tendering and performance is carefully monitored by the commissionlng body, the relevant local authority. Employment and Training Opportunities SSJ manages Jamie's Computers which operates as a Social Enterprise. The aim of Jamie's is to generate income for SSJ and to create tralning and learning opportunities as well as work placements for vulnerable adults in the city of Southampton. The Café in the Park Is also a Social Enterprise, providing employment and volunteering opportunities in Portsmouth, as well as good quality food. Meaningful AGtivity Our sports activity programmes continued through to October 2023 and January 2024 with fundlng from the National Lottery. These programmes offer all kinds of activities. for both men and women, all aimed at Improving health and wellbeing, confldence and self-worth. After the lottery fundlng ceased SSJ was able to continue with the programmes working alongslde the SSJ Academy. which continued to operate following the successful pllot in the previous year, thanks to phllanthropic funding. SSJ was then successful in being awarded new lottery funding whlch has enabled the development of the SSJ Academy which formally launched in April 2024. marklng a more strategic approach to delivering a cross-SSJ timetable of actlvlties that our resldents and clients need, alongside the more therapeutlc support we offer through our contracted work. Society of St James Report of the Board of Trustees incorporatlng a Strategic Report (Continued) for the year ended 31 March 2024 Objectlves and Actlvitles (continued) MeaningfulActlvity (continued) The Academy consists of Meaningful Activities {Re-Fit), Education Pathways (Re-set) and Volunteerlng {Re- Connect) In addltion, we deliver Pathways, a volunteering service to match stable service users with volunteering opportunities within SSJ and in the communlty (including our Café and Jamie's). This is funded by the offi￿ of the Pollce and Crime Commissioner. Strategic Report - Achievements and perforniance SSJ had a Successful year wilh an annual turnover of £16.473 mlllion and an operating surplus of £437k. This represents 8 % growth in turnover on the previous year. SSJ was successful in winning a number of new contracts and tenders, as well as retaining many of our previous contracts. The results were also Improved by a number of factors, including additional funding recelved from local and central government as further work was commissioned by local authoritles. Housing development SSJ is committed to reducing rough sleeplng and homelessness for vulnerable adults by developing new housing. As a houslng associatlon, SSJ can access grants from Hom8s England and match these with borrowings to enable the purchase and refurblshment of property. During the year SSJ purchased 2 properties to provide move-on opportunities for 14 residents utilising these funding sources. In addition to the above the Department for Levelling Up, Housing and Communities provided a grant to SSJ through the local authority to acquire and develop 15 properties for Afghsn and Ukrainian refugee familles. By 31 March 2024 SSJ had acquired 12 of these properties, with contracts exchanged to purchase the remaining 3 properties in April 2024. Having increased its estate by 14 properties during the year, SSJ owned 57 resldential properties at the year-end. Worklng towards net zero carl)on During the year, following the completion of its EPC assessments on all the properties that are owned, SSJ was able to form a consortium with Silva Homes (part of the Abri Group) to bid to the Social Housing Decarbonisation Fund (SHDF) setup by the Department for Energy Securlty & Net Zero. In March 2024 SSJ was notified that the joint bid had been successful and SSJ has been awarded £181 k to support the property improvements required to bring its properties up to EPC grade C or above. SSJ will be worklng with contractors to complete the required programme of works within the next 2 years to comply with the terms of the SHDF wave 2.2. SSJ Quality Assurance Framework During 2023124 SSJ reviewed the SSJ Quality Assurance Framework and made a number of improvements. The 16 intemal audits undertaken in 2022123 were re-assessed solely on their improvement plans from fhat year whilst 7 new projects were added to the framework and subjected to full audlts during the year. The audit continues to cover 8 themes containing a total of 55 standards. This prO￿sS resulted in both service level improvement plans that wlll be overseen at Operational Director level and a 'whole organisation, improvement plan that will address cross-cutting themes and be overseen by the Chief Executive reporting to the Operations Committee. Society of St James Report of tha Board of Trustees Incorporating a Strategic Report (Contlnued) for thè year ended 31 March 2024 Strateglc Report - Achlevements and perfom?ance (continued) Fundraislng Fundraislng is resourced by a small team whose efforts have mainly been directed towards mobilisation, business planning and wider communication improvements. With limited resources, we have nevertheless achieved a number of successes. We have secured £850K from the National Loltery Community Fund (TNLCF) allowing us to deliver our SSJ Academy from 1st April 2024 with funding for 5 years. This marks a new strateglc partnership with the Lottery moving forward. We continue to receive funding from other philanthroplc bodies towards specific projects including the SSJ Academy. Corporate support has been particularly vibrant this year with a total of 13 organlsations approaching us to offer their support through volunteering, often bringing a budget with them. The ongoing support of our community networks has secured a steady stream of income. We are now working with SMART Marketing who are a team working to Improve supporter numbers through different channels. This is provlng to be a frultful partnership and a driver for the successful Christmas Campaign whlch realised a record income, New Chief ExeGUtive Trevor Pickup, SSJ'S Chief Executive for the last 31 years, retired on 17 May 2024. Trevor has left a lastlng legacy for SSJ and the many beneficiaries of its work. SSJ'S new Chief Executive, Tania Marsh, commenced on 24 June 2024. Tania was previously Director of Operations at Crisis. staff SSJ is completely dependent on the commitment of our staff to meet the challenging and demanding ne8ds of our environment and client base. The Trustees applaud our staff for all that they have achieved in these particularly difficult circumstances and would like to record their formal thanks and appreciation for their efforts. We have a diverse workforce, with an average of 318 FTE staff (280 in 2023) being employed over the last 12 months. We seek to be an Excellent Employer. We are currently, and aim to continue to be, a °National Livlng Wage" employer and have be@n paying staff at least these rates for the last five years. SSJ also relies on volunteers in our projects and servlces, and we are grateful for the contribution they have made. strategic Report - Plans for the Future There are slgnificant areas of unmet need within the areas of expertlse in which SSJ operates. In order to meet the charitable objectives of SSJ, it will need to continue to fulfil its existing role and to develop new services. SSJ will Continue to dellver Housing, Support. Care, Treatment and Training to vulnerable adults in Hampshire and surrounding areas. SSJ may also develop its work Into new geographic areas and into new types of services, in order to meet the needs of our existing and potential new servlce users andlor the requirements of new local authority tenders. This will include biddlng for new work through the tendering process. SSJ will also continue to work on speclfic proposals with local commissioners and seeking philanthroplc funding for projects or areas of work. The Board have agreed a number of priorlÉies for the coming year. Thes8 include.. Society of St James Report of the Board of Trustees incorporatlng a Strateglc Report (Contlnued) for the year ended 31 March 2024 Strategic Report - Plans for the Future (contlnued) Pmperty acquisition programme SSJ will continue to prioritlse the development of new property to help reduce homelessness and increase opportunities for our existing service users. By increasing our stock of move-on housing, SSJ can move more residents out of hostels, and therefore create spaces for more people to move from rough sleeping into accommodation. Support SSJ will continue to work with local authority partners to explore new opportunities within Southampton, Portsmouth and elsewhere in Hampshire, to meet the needs of homeless people, other vulnerable adults and specific priority groups within our target beneficiaries e.g., LGBTQ+ Veterans etc. As part of our commitment to be a trauma- informed organisation, SSJ will continue to train new in-house Reflective Practitioners to ensure that all frontllne staff and all managers have regular access to the benefits of Reflective Practice. SSJ will also continue to audit services against our Quality Framework, to Improve standards and outcomes. Working Towards net Zero Carbon SSJ is committed to being a net carbon neutral organisation. Over the year SSJ will continue to develop our understanding of our carbon footprint, and update our Environmental Plan, including steps to reduce our emissions over next 3 years, as a step to becoming carbon neutral. SSJ will also engage further with staff and Service Users about steps that could be taken now to have impact. SSJ now has funding in place to support the modernisation our properties to achieve the EPC °C" standard across our portfolio which wlll take place over the next 2-years. Strateglc Report - Principal Risks and Uncertainties SSJ faces a wide range of risks and uncertainties. many of which are collated annually in SSJ'S Business Risk Management Plan. The principal risks identlfied are as follows: Loss of contracts due to change of priorlties or financial pressures within Local Authoritl8s and the Government There is a risk of commissioners ending contracts and not replacing the service with any other provision. This is a significant financial risk to SSJ, with potential redundancy costs to be managed, and possible ongoing Commitments for18ased buildings. The risk Gan be mitigated by having good liaison with the commissioners and by the ability to redeploy staff into other services, which may be possible on occaslon. Changes to the Housing Benefit regime make our rents unaffordable to residents The Government is consulting with various stakeholders with regards to the impact any changes will have. SSJ is a member of the National Housing Federation (NHF) who are a very effective lobbying body and have made strong representations to the government. They have particularly stressed, and the government have said they have heard, that it is essential to ensure that there are no unintended consequences on the significant number of organisations that are relied upon to provide much needed accommodation utilising thls source of funding. Society of St James Report of the Board of Trustees Incorporatlng a Stratogic Report (Contlnued) for the year ended 31 March 2024 strateglc Report - Princlpal Risks and Uncertainties (continued) Maintenance.. Cost over-runs in day- to- day repairs SSJ has a mixed tenure of occupancy across the property portfolio. Many of the owned and leased properties are subject to heavier use than general needs social housing, whlch creates a higher volume of repalrs and maintenance issues. The budget for repairs and maintenance is based on prevlous annual trends but can end up being overspent rf there is a particularly difficult year. To miligate the financial risk a financial contingency has now been set to cover any unforeseen overspends. Failure of complianGe - non- owned properties Approximately 420/0 of the property stock is leased from other landlords. Within the lease terms it is the landlord's responsibility to conduct cyclical servlcing such as gas and electrical safety checks. As thls function is outside SSJ'S direct control, it has established procedures to send reminders to the landlords ahead of any servicing expiry under lease and lo ensure that the work is carried out and certified. Hacking, or other malicious aGtivity (including by staff), due to failure to protect against Gyber threats There are a range of cyber threats facing SSJ, and ransomware attacks are considered to be the greatest risk, because attackers don't need to know much about our systems. The level of Impact depends on how easy it would be to recover from a threat being carried out. All systems are password protected and Contained within a firewall. If the Ransomware penetrates the firewall and the cloud servers, we would need to rely on our backups which include off-site backups. These are periodically tested and we have done partial restorations of files in the past. We also need to mltigate against the potential malicious actions by IT staff - this is continuously being monitored and improved. Fallure to upgrade & develop IT in line with organisalional growth SSJ is regularly required to update and upgrade its IT systems to meet increasing requirements from its servlces and customers, as well as enhanced security, data protection and regulatory changes. The risk is that procurement may not meet the needs of the organlsation due to flaws in systems selection or deficiencies in implementation. We aim to mitigate thls by creating plans that ensure that all projects are sufficiently resourced and supported by senior managers, an appropriately qualrfied IT team and external consultants as required. Failure to comply with the Decent Homes Standard specifically regarding the occurrgnce of mould in ourproperties. Risk of Glaims against us, or people getting ill The Decent Homes Standard outlines the minimum standards of property provided by Social Housing Landlords. Properties should be free from the 29 classified health and safety hazards including damp and mould. fire rlsks etc. To mitigate the risk of fallure of meeting the standard, SSJ conduct property condition surveys which build not only informed annual planned works programmes but trigger responsive repairs where necessary to address any immediate risk to residents. This is also supplemented by worklng with the Housing and Supported Teams and providing Glear lines of communication for residents to report property related Issues. The rglative Impact of the increased cost of living means s81f-contain8d aGGommodation becomes unaffordable to residents The current increase in the cost of living (food. utilities etc) could result in service users having to choose between food and heat. Wlth our clients already belng vulnerable this could have significant implications on the health ofour residents. All Servlce Users In shared houses have their heating Included in service charges, but those in self- contalned accommodation would be responsible for their own bllls and therefore more at risk. SSJ will continue to make referrals to food banks and perform regular welfare checks if concerns are raised. Society of St James Report of the Board of Trustoes incorporatlng a Strateglc Report {Contlnued) for the year ended 31 March 2024 Strategic Report - Fundraislng practlces SSJ receives support from the local communlty and benefits from numerous donations from schools, churches, business groups, social clubs and indivlduals. We benefit from having been chosen as the 'Charity of the Year" by various commercial companies and associations. SSJ runs a number of fundraising campaigns over the year to appeal for funds for specific activities, such as the Christmas appeal, as well as seeking donations towards our general activities. These campaigns are conducted by sending newsletters by email and by running social media campaigns. Staff also give talks and presentations, when invited, to various groups, which often leads to donations. The majority of our donations are one-offdonations, but a number of individuals have set up regular payments by standing order. Donations of food, clothing. Christmas presents and time from individual volunteers and from teams of volunteers is also valuable. Jamie's receives about 20 tonnes of computing and other IT equipment each month, which It processes and sells or recycles fo generate income. SSJ seeks to ensure an ethical approach to our appeals and campaigns and does not use external consultants to undertake fundraising on our behalf. Our mailing and email list is made up of members of SSJ and those who have either donated in the past or have asked to be added to the mailing list. We have not undertaken any mass maillng campaigns in the last year. In line with GDPR requirements we have also contacted everyone on the mailing list and confirmed that supporters wish to continue to receive information. We aim to post or email 2-3 newsletters a year to our supporters, so do not feel we are putting people under slgnlficant pressure to donate. SSJ is not a member of the institute of fundraisers and has not signed up to any voluntary regulatory framework. We deal carefully with any complalnts received, We are conscious of safeguardlng Issues and have previously not accepted large donations until some investlgation concerning the donor has been undertaken (and in some cases, returned the money). Strateglc Report - Flnanclal Revlew Financlal Position and Management Policies The year ended 31 March 2024 has seen an operating surplus of £437k (2023 - £444k), net cash generated from operatlng actlvities of £879k {2023 £1.484k) and EBITDA of £0.99m (2023 - £0.98m). SSJ remains in a sound financial position at 31 March 2024 and finished the year with cash of £811 k (2023 - £2,028k), following housing purchases towards the end of the year. Durlng the year SSJ invested £3.8m (2023 £1.7m) in acquiring and developing new Housing Property. The decrease in cash during theyear of £1,217k{2023 £1.216k increase) came about partly because the drawdown of new loan finance was delayed slightly beyond the year end with a new loan of £1.43m being drawn from SSJ'S facilities in April 2024. SSJ had undrawn facilities of £1.2 following thls drawdown. Year - end debtors increased from £854k to £1,394k but the vast majority of these were pald shortly after the year end. SSJ'S formal financial procedures have been ratified by the Audit and Finance Commlttee. The Board considers the internal control systems in use to be sufficient for purpose. For items of major expendlture, competitive quotes are requested to ensure SSJ receives the best value for money. Reserves The reserves policy reflects the nature of SSJ'S business and the sustainability of its sources of income from rent and contracts with local authorities. The Trustees seek to hold sufficient reserves to maintain financial stability while maximising the deployment of funds in pursuit of the charity's objectives and review the implementation of the Policy annually. The Trustees believe that it is prudent for the charity to hold a level of free financial reserves (general unrestricted funds less those held as fixed assets net of long-term debt) for the followlng purposes: Society of St James R8POrt of the Board of Trustees Incorporating a Strateglc Report (Continued) for the year ended 31 March 2024 Strategic Report - Flnancial Revlew (contlnued) Reserves (continued) To provide adequate short-term liquidity, and cover temporary timing differences in grant claims; To absorb setbacks and manage change should a major income stream fail. To enable the organisation to respond quickly to new opportunities. The Trustees have determined that the level of free reserves held by the charity should not normally fall below one months, total unrestricted operating costs which were £1 ,328k during the year (2023 £1,235k). Free reserves, which are calculated by subtracting the value of flxed assets (excludlng investments) from total reserves before adding back long-term liabilities and the next year's mortgage liability, were £134k at 31 March 2024 (2023- £1,373k). The decrease in free reserves at 31 March 2024 was almost entirely the result of the tlming of a drawdown of additional loan finance of £1.43m in April 2024. Due to the short-term nature of this reductlon in reserves the Trustees do not consider that this has any impact on SSJ'S financial performance. SSJ had £4,313k of total reserves at 31 March 2024 (2023 - £4,186k). Sources of Income The largest source of income for SSJ this year has again been net renlal and service charge income whlch has increased by 14.4 % to £6,664k (2023 - £5,825k) and now represents 410/0 of SSJ'S total income (2023 - 38 % ). The reasons for this increase in share of income are the general Increase in rent charges and the increase in bedspaces during the year, Rental income is usually collected directly from the relevant Local Authority in the form of Housing Benefit payments although payments for care provision have increased In this area. The percentage of SSJ'S income that it receives through housing support (previously Supporting People {'SP')) contracts has slightly increased during the year due to an Increase in value of one of the existing contracls and is now around 200/0 {2023 19 % ) of total income. Grant income from substance misuse services has increased by 9.40/0 to £4.772m (2023: £4.361 m) and represents 29 % of SSJ'S income (2023.. 290/0). Donations and awards from philanthropic trusts and the general public remain an important source of funding, with SSJ benefittlng from £153k in the year to 31 March 2024 (2023 - £274k). Property SSJ acquired fourteen properties during the year al a cost of £3.3m (2023 £1.5m). These costs. plus fees and development costs, are capitalised and depreciated over the useful life of the assets. Our properties are shown at their original cost in our accounts, less applicable depreciation. Properties used as security for borrowing are revalued regularly to comply wlth the terms of loan agreements. The 38 secured properties that are carried at £11.3m in our financial statements were most recenlly valued at £14.2m. Funding SSJ finances its property acquisltion programme through a combinatlon of grants and long-term debt. Government grants are amortised to income over the lrfe of the asset they funded and remain associated with that asset until it is disposed of. If an asset is dlsposed of the grant must be placed Into a Recycled Capital Grant Fund (RCGF) and held until it can be used to acquire or develop similar property to that for which it was originally awarded or is repayable rf this hasn't been achieved within 3 years. Government grant awaiting amortisation is shown in the accounts as a short or long-term creditor. Government grant that has been recycled through the sale of a property during the year Is shown in the RCGF in (see note 17). Other capital grants, such as lottery funding, are shown as income in the year that the purpose for which they were awarded was achieved. Such grants usually come with a requirement to repay if the asset whlch they helped acquire are disposed of within a certain period of time. In arranging external funding, SSJ aims to borrow money from a spread of lenders. on a long-term basis and with a mix of fixed and variable interest rates appropriate to balance the rlsk of interest rate rises with the annual cost of borrowing. 10 Society of St James Report of the Board of Trustees Incorporating a Strategic Report (Continued) for the year ended 31 March 2024 Strategic Report - Financial Review (continued) Fundlng (continued) SSJ maintained its borrowing relationshlps with five organisatlons during the year and drew down £823k of loan finance at a fixed rate of interest. At 31 st March 2024 80 % of borrowffings were at interest rates that had been fixed for more than 3 years at the time they were drawn (2023 61 % Cash and investments With operating cash inflows of approximately £1 .37m per month, SSJ manages Its treasury resources actively, holding most of its cash in instant access accounts. Under its Treasury Management Policy, SSJ is required to malntain ready access to SLrfficient SoUr￿S of liquidlty to meet the following month's cash operating costs plus the next three months, debt service costs. In addition, SSJ reviews annually the amount of liquidlty which must be met from readily available cash. The minimum amount was increased from £735k to £808k October 2023. SSJ malntained its cash balances at In excess of the minimum required under its Treasury Management Policy throughout the year save for two short periods where cash was slightly below the minimum due to delays in settlement of services invoiced to a local authority. This cash management has assisted SSJ in funding future property acquisitions when the receipt of new loan finance was delayed. SSJ sold Its investments during the year as the Trustees felt that these assets would be better served supportlng the property acquisition programme. 11 Society of St James Report of the Board of Trustees 5ncorporatlng a Strateglc Report (Contlnued) for the year ended 31 March 2024 Value for Money SSJ is committed to delivering effective and efficienl services to service users and embraces the Value for Money (VFM) methodology as required by the Regulator of Social Housing {RSH). SSJ agreed the Value for Money Policy in July 2013, whlch includes the following Statement of Intent: "The Society of St James seeks to ensure that all financial and other resources are used to achieve the greatest benefils for the Society, in working towards the furtherance of the aims of the organisation, as described in the governing documents." The requirements of the RSH require standard metrics to be shown in these accounts. the following shows these metrics for SSJ and is benchmarked against the most appropriate data (supported housing specialist providers (although these are all still large organisations with greater than 1.000 homes) from the RSH publication of value for money data for the sector for 2023. SSJ has also chosen to add two of its own benchmarks which appear below afler the requlred metrics. Required Metrics Benchmark Target (2023 data) (2024) 2024 2023 Metric 1 Reinvestment 0/0 Metric 2 - New supply delivered % Metric 3 - Gearing % Metrlc 4 - EBITDA MRI Interest Cover % Metric 5 - Headline social housing cost per unit" Metric 6A- Operating Margin 0/0 (social housing lettings only) Metric 6B- Operating Margin 0/0 (overall) Metric 7 - Return on capital employed (ROCE) ¥. 17.9Q/o 6.9% 12.60/0 196°/0 £9,220 £12,500 £12,488 £12,376 2.OQ/o 4.9% 1.70 2.10/0 3.0% SSJ additional metrics nla nla >93% <0.9 % 92.00 0.6¥0 Bad debts 0/0 Metrics 1,2 and 3 SSJ is well above the benchmark for these metrics due to its focus on providing additional accommodation. SSJ has expanded, and plans to continue to expand, its property assets by biddlng activelyfor housing grant and using borrowing to contribute to funding. The organisations in the sector included in the benchmark vary significantly in size and pursue a wide range of strategies. Some are not actively developing as much new supported housing andl or have a different funding model for property investment. Metric 4 SSJ has had a 'good year, but was impacted by the increase In Interest rates and in the level of borrowlng. This has meant that the target for EBITDA MRI Interest cover % was tight and narrowly achieved with a result that is better than the benchmark. As SSJ invests more In new properties the interest charges will increase and so thls metric is anticipated to drop in future years but will be managed effectively. Metric 5 SSJ has used an adjusted metric 5 to exclude support- only servlces. SSJ runs a number of support- only seNlces where another entity undertakes the houslng management and 'owns' the associated units,. these support costs are included within the social housing costs in Note 3 but the housing units that are supported are not included in SSJ'S housing stock. Under SSJ'S revised metric the cost per unit is reduced significantly compared with the standard metric and Is below the target. SSJ believes that using thls adjusted metric provides a more comparable and meaningful result than including costs of ServI￿S that do not have any housing units assoclated wilh them. 12 Society of St James Report of the Board of Trustees incorporating a Strateglc Report (Contlnued) for the year 0nded 31 March 2024 Value for Money (contlnued) SSJ alms to reduce cost per unit over time as it builds in scale. SSJ'S Social Housing cost per unit is always likely to be higher (and operating margln 0/0 lower) than the benchmark as a higher proportlon of SSJ'S housing stock is in supported housing. SSJ also bears the full costs of running support services {partly funded by grants), whereas most other providers fund fewer support services. Metric 6 SSJ'S Operating Margins are slgnlftcantly below the benchmark as it is a strategic decislon of SSJ to maximise deployment of annual income to provide services to vulnerable people., the Trustees consider an Operatlng Margin which leads to a retained surplus of 2 % generally provides an adequate sustainable surplus and SSJ is managed with the oblectlve of achieving recurring surpluses at that level. Metric 7 SSJ'S ROCE metric is comparable to the benchmark and thls year has marginally exceeded it. SSJ additional metrlcs SSJ has chosen two specrfic metrics for its internal performance which are crucial to monitor the level of housing income and that the efficiency of the service provided. The occupancy percentage is better than the previous year's performance. Systems are Improving to turn around voids more qulckly but SSJ suffers from a number of factors outside its control, including delays in referrals which have a negative Impact on percentage occupancy. The target bad debt percentsge has been narrowly missed this year but good rent collection policies from the Housing Management team have kept this at a sustainable figure. SSJ continues to benefit from direct payments of benefits. 13 Society of St James Report of the Board of Trustees Incorporating a Strategic Report (continued) for the year ended 31 March 2024 Statement of the Board of Trustees, responsibilities The Board members are responsible for preparing the report of the Board and the financial statements in accordance with applicable law and regulations. Company law and social housing legislation require the Board members to prepare financial statements for each financial year. Under thal law the Board members have elected to prepare the financlal statements in accordance with United Kingdom Generally Accepted Accounting practi￿ (United Kingdom Accounting Standards and applicable law, including FRS 102). Under company law the directors must not approve the financial statements unless they are satlsfied that they glve a true and fair view of the state of affairs of the society and of the surplus or deficit of the society for that period. In preparing these financial statements, the Board members are required to: select suitable accounting policies and then apply them consistently. make judgements and accounting estimates that are reasonable and prudent. state whether applicable UK Accounting Standards and the Statement of Recommended Practice for social housing providers (2018) have been followed, subject to any material departures disclosed and explained in the financi81 statements. and prepare the financial statements on the going concern basis unless it Is inappropriate to presume that the society will continue in business. The Board members are responsible for keeping proper accounting records that are sufficient to show and explain the society's transactions and disclose with reasonable accuracy at any time the financial position of the society and enable them to ensure that the financial statements comply with the Companies Act 2006. the Housing and Regeneration Act 2008 and the Accounting Direction for Private Reglstered Providers of Social Housing 2022. They are also responsible for safeguarding the assets of the society and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Board is responsible for ensuring that the Report of the Board is prepared In accordance with the Statement of Recommended Practice for social housing providers (2018). Financial statements are published on the society's website In accordance wlth legislation in the United Kingdom governing the preparation and disseminaflon of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the society's website is the responsibility of the Board Members. The Board Members, responsibility also extends to the ongolng integrity of the financial statements contained therein. Auditors All of the current Trustees have taken all the steps that they ought to have taken to make themselves aware of any information needed by the company's auditors for the purposes of their audit and to establish that the auditors are aware of that information. The Trustees are not aware of any relevant audit information of which the auditors are unaware. CLA Evelyn Partners Limited are deerned to be re-appointed as auditors. This report was approved by the Board of Trustees on and is signed on its behalf by: P Hlllary, Trustee 14 evelyn PARI NERS INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SOCIETY OF STJAMES Oplnlon We have audited the financial statements of Society of St James (the 'Society') for the year ended 31 March 2024 which comprise the Statement of Comprehensive Income, the Statement of Changes in Reserves, the Statement of Financlal Posltion, the Cash flow statement and the notes to the financial statements, including significant accounting pollcies. The financial reporting framework that has been applied In thelr preparation is applicable law and United Klngdom Accounting Standards, including FRS 102 'The Financlal Reporting Standard applicable in the UK and Republic of Ireland. (United Kingdom Generally Accepted Accountlng Practice). In our oplnlon, the financial statements: give a true and fair view of the state of the Society's affairs as at 31 March 2024 and of its income and expenditure for the year then ended., have been properly prepared in accordance wlth United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accountlng Direction for Private Registered Providers of Social Housing 2022. Basis for oplnlon We conducted our audit in accordance with International Standards on Auditing (UK) {ISAs (UK)) and applicabl8 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 Society in accordance with the ethical requirements that are relevant to our audlt of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities In accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to golng concern In auditing the financial statements, we have concluded that the directors. use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertalntles relating to events or condltions that, Indlvidually or collectively, may cast signlficant doubt on the Society's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to golng concern are described in the relevant sections of this report. Other Infomiatlon The other information comprises the information included In the Report and Financial Statements, other than the financial statements and our audttor's report thereon. The directors are responsible for the other information contained withln the Report and Financial Statements. Our opinion on the financlal 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 th8 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 thls other Information. we are required to report that fact. We have nothing to report in this regard. 15 evelyn PARI"NERS Oplnlon on oth6r matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Report of the Board of Trustees incorporating a Strategic Report for the financial year for which the financlal statements are prepared is consistent with the financial statements. and the Report of the Board of Trustees incorporating a Strategic Report has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exceptlon In the light of the knowledge and understanding of the company and its environment obtained In the course of the audit, we have not identified material misstatements in the Report of the Board of Trustees incorporating a Strategic Report. We have nothing to report in respect of the followlng matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion.. adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us. or the financial statements are not in agreement with the accounting records and returns. or certain disdosures of directors, remuneration specified by law are not made., or we have not received all the information and explanations we requlre for our audit. Responslbllities of dlrectors As explained more fully in the Statement of Board's Responsibllities set on page 14, the members of the board are the directors of the Society for the purposes of company law. The directors are responsible for the preparation of the financial ststements and for being satisfled that they give a true and fair vlew, and for such internal controls as the directors determine is necessary to enable the preparation of financial statements that are free from materia misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the Society's ability to continue as a going cOn￿rn, discloslng, as applicable, matters related to going Goncern and using the going concern basis of accounting unless the directors either intend to liquidate the Society or to cease operatlons, or have no realistic alternative but to do so. Auditor's responsibilitios for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. whether du6 to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a hlgh level of assurance, but Is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a materlal misstatement when it exists. Misstatements can arise from fraud or error and are considered material if. indivldually or in the aggregate. they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non0￿mplIanCe with laws 2nd regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, includlng fraud, is detsiled below.. We obtained 8 general understanding of the Society's legal and regulatory framework through enquiry of management Concerning: thelr understandlng of relevant laws and regulations and the entity's policies and procedures regarding compliance. We also drew on our existing understanding of the Society's industry and regulation. 16 evelyn PAIII Nl•fl4 We understand that the Society complies with the framework through: Updating operatlng procedures, manuals and internal controls as legal and regulatory requirements change; A risk assessment framework and register that Includes regular review and scrutlny by the Board and Audit and Finance Committee. An annual assessment of compliance with regulatory standards as applied to Registered Providers and enforced by the Regulator of Social Housing,. and The Board's close oversight through regular board meetings and compliance reporting. In the context of the audit, we considered those laws and regulations.. which determine the form and content of the flnancial statements,. which are central to the Society's ability to conduct its business,. and where failure to comply could result in material penalties. We identified the following laws and regulations as being of significance in the context of the Society: FRS 102, the requirements of the Companies Act 2006, the Charities Act 2011 the Housing and Regeneration Act 2008 and the Accounting Dlrection for Private Registered Provlders of Social Housing 2022. in respect of the preparation and presentation of the financial statements., Health and safety regulations., and Regulatory standards as applled to Registered Providers and enforced by the Regulator of Social Housing. We performed the following specific procedures to gain evidence about Complian￿ with the significant laws and regulations above: Performed a review of board minutes to identify any Indicators of known or suspected non-compllance with significant laws and regulations,. and Reviewed any correspondence between the Regulator of Social Housing and the Society. The senior statutory auditor led a discussion wlth senior members of the engagement team regarding the susceptibility of the Society's financial statements to material misstatement, includlng how fraud might occur. The key areas identified as part of the discussion were with regard to the manlpulation of the financlal statements through manual journal entries. The procedures carried out to gain evidence In the above areas included: Testing of a sample of manual journal entries, selected through applying speclfic risk assessments applied based on the Society's processes and controls surrounding manual joumal entries A further description of our responsibilities Is available on the Financial Reporting Council's website at: www.frc.org.uklauditorsresponsibillties. Thls description forms part of our auditorfs report. 17 ## **Use of our report** This report is made solely to the Society’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Society’s members 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 Society and the Society’s members as a body, for our audit work, for this report, or for the opinions we have formed. Julie Mutton Senior Statutory Auditor, for and on behalf of Cumberland House **CLA Evelyn Partners Limited** 15-17 Cumberland Place Statutory Auditor Southampton Chartered Accountants Hants SO15 2BG Date 26 September 2024 18 Society of St James Statement of Comprehenslve Income for the year ended 31 March 2024 Notes 2024 2023 £OOOs £0008 Turnover Operating costs 16,473 {16,036) 15,268 (14,824) Operating surplus 437 Interest receivable and similar income 23 Interest payable and similar charges (359) (259) Surplus for the year 101 193 Actuarial gain in respect of pension scheme 22 26 19 Total Comprehensive Income for the year 127 212 All activities of the charitable company are classed as contlnuing, The notes on pages 23 to 41 form part of these financial statements. 19 Society of St James Statoment of Changes in Reserves for the year ended 31 March 2024 Retainèd Earnings £OOOs Balance at 1 April 2022 3,974 Surplus for the year 193 Other Comprehensive Income 19 Balance at 31 March 2023 4,186 Balance at 1 April 2023 4,186 Surplus for the year 101 Other Comprehensive Income 26 Balance at 31 March 2024 4,313 20 Society of St James Statement of Flnancial Position at 31 March 2024 Company Registratlon Numbgr". 03009700 Notes 2024 £OOOs 2023 £OOOs Fixed assets Housing properties at cost less depreciation Intangible assets other fixed assets Investments 16,338 204 887 10 12,808 239 829 97 10 11 12 17,439 13,973 Current assets Debtors Cash at bank and in hand 13 1,394 811 854 2,028 2,205 2,882 Credltors: amounts falllng due within one year 14 2,312 1,838 Nèt current {liabilities}l assets (107) 1,044 Total assets less current Ilabllltlas 17,332 15,017 Creditors: amounts falllng due after more than one year 15 13,019 10,831 Total net assets 4,313 4,186 Capital and r•serve8 Retained earnings 4,313 4,186 Total Capital and Reserves 4,313 4,186 The financial statements on pages 19 to 41 were approved and authorised for Issue by the Board of Trustees on 17 September 2024 and are signed on its behalf b G Marshall Trustee P Hlllary Trustee The notes on pages 23 to 41 form part of these financial statements. 21 Society of St James Cash flow statement for the yèar ended 31 March 2024 Notes 2024 £OOOs 2023 £OOOs £OOOs £OOOs Net cash generated from operating actlvities 23 879 1,484 Cash flow from investing activities Acquisition. constructlon and works to tangible fixed assets Proceeds from the sale of fixed asset investments Proceeds from the disposal of housing property Grants received Interest received (4,246) (2,372) 87 51 395 700 1,789 23 Net cash used in Investing activitles (2,347) (1,218) Cash flow from financlng activities New loans (net of fees) Loans repaid Interest paid 819 (209) (359) 1,436 (227) (259) Net cash genarated from financlng activities 251 950 {Decr6ase)Ilncreasel in cash and cash equlvalents (1,217) 1,216 Cash and cash equivalents at beginning of year 2,028 812 Cash and cash equivalents at end of year 811 2,028 22 Society of St James Notes formlng part of the financlal statements for the year ended 31 March 2024 Accountlng pollcles Society of St James (°the Society") is a private Gompany limited by guarantee and incorporated in England and Wales. It Is a registered provider of soclal housing with the Regulator of Social Housing and the address of the registered office is 125 Albert Road South, Southampton, S014 3FR. Basls of accounting The financial statements have been prepared in accordance with UK Generally A¢￿pted Practice {UK GAAP) includlng Financial Reporting Standard 102 (FRS 102) and the Housing SORP 2018: Statement of Recommended Practice for Registered Social Housing Providers and comply with the Accounting Direction for Prlvate Registered Providers of Social Housing 2022. The financial statements are prepared under the historical cost convention as modified by the revaluation of certaln fixed assets at the date of transition under the 'deemed Cost. option of FRS 102 and as modified by the revaluatlon of investments. The Society meets the definition of a Public Benefit Entity under FRS 102 These financlal statements are single entity statements and not consolidated group accounts. Consolidation is not required as the other group member, Jamle's Computers Limited, was dormant throughout the reporting period. Going Goncern After making enquiries, the Board has revlewed forecasts and further information that has reassured it that there Is a reasonable expectation that the Society has, and wlll continue to receive, adequate resources to contlnue in operational existence for the foreseeable future, being a period of at least ￿e1ve months after the date on which the report and financlal statement are slgned. For this reason, It continues to adopt the going concern basis in the financial statements. The prlncipal accounting policies of the Society are set out below. i. t Signrfic8ntjudgem8nts and estimates The preparation of financial statements in conformlty with generally accepted accounting practice requires management to make estimates and judgements that affect the reported amounts of assets and liablllties as well as the disclosure of contlngent assets and liabilltles at the Statement of Financial Position date and the reported amounts of revenues and expenses durlng the reporting perlod. Signrficant management judgements The following are the significant management judgements made In applying the accounting pollcies of the Soclety that have the most significant effect on the financial statements 1. 18 Identrfication of housing property components Housing property depreciation is calculated on a component-by-component basis. The Identrficatlon of such components is a matter of judgement and may have a material impact on the depreciation charge. The components selected are those which reflect how the major repairs to the property are managed. Estimation uncertainty Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabllitles, income and expenses is provided below, Actual results may be substantially different. 23 Society of St James Notes forming part of the financial statements for the year ended 31 March 2024 Accountlng policies (contlnued) 1. Ib Goodwlll Goodwill is written off over its useful economic life. belng 10 or 20 years depending upon the nature of the asset and the applicable accounting standards at the time it arises. I. IG Bad debt provision Trade debtor balances are recorded in the Society's statement of financial position and comprise a relatively large number of small balances. A full line by line revlew of trade debtors is carrled out at the end of each month. Whilst every attempt is made to ensure that the bad debt provisions are as accurate as possible, there remains a risk that the provisions do not match the level of debts whlch ultimately prove to be unGollectable. Additionally, a provision is made against 50 % of resident's credit balances. 1. Id Useful lives of depreciable assets Management reviews its estimate of the useful lives of depreclable assets at each reporting date based on the expected utility of the assets. Uncertainlies in these estimates relate to technological Obsolescen￿ with regard to IT equipmentlsoflware and any changes to decent homes standard requiring frequent replacement of components. 1. le Dilapidations A number of Ilabilities are recognised in the accounts to reflect the management's vlew of the potential Ilabilities that the Society has to pay for dilapidations to premises that It rents during and after its tenure in them. Experlence of previous dilapidations claims, and settlements has informed these estimates. l. If Multi-employer pension obligation The Society participafes in a variety of pension schemes adminlstrated by the Pensions Trust. the Growth Plan scheme has certain guarantees associated with It that require participating employers to make additional contributions to it should the scheme be in deficit. The Society has a contractual obligation to make deficit contributlons over a number of years and the present value of these future contributions is measured and reported in the Financial Statemenls. The rate used to calculate the present value is the equivalent single discount rate which, when used to dlscount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contrlbutions. 1. Ig Local Government Pension Scheme (LGPS) Valuations The Society is an admitted body to the Hampshire LGPS following transfers of staff formerly working in the public sector. The scheme actuaries estimate the Ilabilities of the Hampshire LGPS using a number of key assumptlons including rates of inflation. mortality. discount rate., and future salary increases. Variances in these assumptions may impact the pension liability and annual expense. 1.2 Turnover Turnover includes rental and service charge income from residential propertles in respect of the year and any other income such as legacies. Fees or grants receivable from local authorities in respect of revenue are credited to the Statement of Comprehensive Income in the same period as the expenditure to which they relate. Grants received for housing properties are recognised in income on a systematic basis, 24 Society of St James Notes forming part of the flnancial statements for thè year ended 31 March 2024 Accountlng policies (continued) 1.3 Interest Payable Interest payable on loan finance during the development of new property assets is capitalised as a development cost of the new asset for whlch the loan was drawn. All other interest payable is charged to the Statement of Comprehensive Income in the year to which it relates. 1.4 G¢￿d￿lI1 Positive goodwill arising from the purchase of care homes (representing the excess of the purchase price of the business over the valuatlon of the assets acquired) has been capitalised and. subject to impairment reviews as required, is amortlsed by equal charges to the Statement of Comprehensive Income. over the period from which economlc benefit is derived, as follows: Radstock Residential Care Home: 20 years Linden House Residential Care Home: 10 years 1.5 Housing properties Freehold housing properties are stated at cost. Cost Includes the cost of acqulring land and buildings, development costs, and expendlture incurred in respect of improvements. In accordance with the SORP, component accounting has been adopted. The components of a property have therefore been identified and when a component is replaced the cost is capitalised as a component of the property. Other repair work is charged to the Statement of Comprehensive Income. Freehold land is not depreciated. DepreGiation is charged so as to write down the cost of freehold properties other than freehold land to their estimated resldual value on a straight line basls over their estimated useful economic lives at the following rates: Component Years Component Structure 50 Boiler and Heatlng System Roof 30 Windows and Doors Electrlcal Wlring 20 Solar Panels UPVC wlndows and doors.. 20 years; wooden windows.. 5 years Bathrooms and Kllchens are depreclaled at the shorter rate where there ar8 shared facllltles Years 10 5or20 12 Component Bathrooms" Sub structure Kitchens" Years 10or20 10 5or10 1.6 Leasehold property and leasehold improv8ments Leasehold housing property and leasehold improvements are accounted for in the same way as Freehold housing property other than depreciation which is charged over the life of the lease. or uslng the rates in the table above, whlchever is the lower. 1. 7 Other freehold propety Other freehold properties are stated at cost, Cost includes the cost of acquiring land and buildings, development costs. and expenditure Incurred in respect of Improvements. Depreciation is charged so as to write down the cost of other freehold properties other than freehold land to thelr estimated residual value on a straight line basis over their estlmated useful economic lives of 50 years. Freehold land is not depreciated. 25 Society of St James Notes forming part of the financlal statements for the year ended 31 March 2024 Accounting pollcles (continued) 1.8 Other fixed assets Expendlture on other tangible fixed assets is capitalised only when it has a life of more than one year and has a value of more than £1,000. The Gost of other items is written off as incurred. Depreciation is provided on these tangible fixed assets at rates cslculated to write off cost over their expected useful lives, using the straight line method at a rate of between 25 % to 500/0 per annum. The Society took the transltional relief to include ￿rtain other fixed assets at fair value at the date of transition to FRS 102, known as deemed cost. 1.9 Government Grants- Housing Property Government grants include grants receivable from Homes England, local authorities and other government organisatlons. Government grants received for housing properties are recognised in income over the useful lrfe ()f the longest life components on a pro rata basis under the accrual model. The unamortised element of the government grant is recognised as deferred income in creditors. Grants due from government organisations or received in advance are included as current assets or liabilities. 1. 10 Government Grants - Other fixed assets Capital grants received for other fixed assets are held as creditors and recognised on a straight line basis over the useful economlc life of the asset for which they have been used to acqulre. 1. I l Revenue Grants Grants relating to revenue are recognised in the Statement of Comprehensive Income over the same period as the expenditure to which they relate. Until the revenue grants are r￿ognISed as income they are recorded as liabilities. 1. 12 Investments Investments are valued at current market value with changes in value from year to year being recognised within the Statement of Comprehensive Income. 1. 13 Operating leases Annual rentals under operating leases are charged to the Statement of Comprehensive Income on a stralght line basis over the term of the lease. The aggregate benefits of any lease incentive are recognised as a reduction in expenses over the term of the lease. 26 Society of St James Notes forming part of the financial statements for the year ended 31 March 2024 (Contlnued) Accounting policies (continued) 1. 14 Pension Gosts The Society operates a number of pension arrangements for its employees. Penslons Trust- Defined Contribution The Society operates a defined contribution scheme through The Pensions Trust. The accounting charge for the period represents the employer contribution payable. Penslons Trust Growth Plan- Defingd Benefit The Growth Plan is a multi-employer defined benefit scheme through The Pensions Trust. It Is not possible in the normal course of events to identify the share of underlying assets and liabilities belonging to individual participating employers. Accordingly, due to the nature of the scheme, the accountlng charge for the period under FRS102 represents the employer contribution payable. The scheme currently has a shortfall of assets compared to liabilities and a deficit payment plan which has been agreed between the participating employers and Trustee of the scheme. In line with FRS102 requirements, this cash payment plan has been recognised as a liability in the Statement of Financial Position and is measured at the reporting dale by discounting fhe future cash outflows at the rate of AA corporate bond. The unwinding of this discounting is recognised as a finance charge In the period to which it relates. Hampshire County CounGiI Pension Fund The Society participates in a defined beneflt pension scheme which provldes benefits based on final pensionable salary. The assets of the scheme are held by the Harnpshire County Council Superannuation Fund, The pension costs relating to the scheme are a¢¢ounted for in accordance with FRS102. Current service costs and interest costs relating to the net defined obligation are included in the income statement In the period to which they relate. When applicable. actuarial galns and losses as well as any other re measurements are recognised in other comprehensive income. Where a scheme is in surplus in accordance with FRS102 28.22 the asset can only be recognised to the extent that the entity is able to recover the surplus either through reduced contributlons in the future or through refvnds from the scheme. 1. 15 Taxation The Society has charitable status and therefore is not subject to Corporation Tax on surpluses derived from charitable activities. 1.16 Value added tax The Society is VAT registered and is able to recover all VAT Incurred at Jamie's Computers and part of the VAT on Head Office costs. All other VAT incurred Is Included within the category of expenditure to which it relates. 27 Society of St James Notes forming part of the financlal statements for the year ended 31 March 2024 (Continued) q. q7 Fin8ncial Instruments Financial assets and financial liabilities are recognised in the Stalement of Flnancial Posltlon when the Society becomes a party to the contractual provisions of the instrument. Trade and other debtors and creditors are classified as baslcfinancial instruments and are measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provlslon is established when there is objective evidence that the Society may not be able to collect all amounts due. Cash and cash equivalents are classlfied as basic financial instruments and comprise Gash in hand and at bank, short-term bank deposits with an original maturity of three months or less and bank overdrafls which are an integral part of the Society's cash management. Interest - bearing bank loans, overdrafts and other loans which meet the criteria to be classified as basic financial instruments are initially recorded at the present value of cash payable to the bank, which is ordinarily equal to the proceeds received net of direct issue costs. These liabilities are subsequently measured at amortised cost, using the effective interest method. The effectlve interest rate is the rate that exactly discounts estimated future cash flows through the expected life of the financial asset or liability or, where deemed appropriate, a shorter period to the net carrying amount on initial recognition. i. 18 Development staff costs Where staff costs are directly attributable to the development of new property assets these costs wlll be capitalised as a development cost of the new asset. 28 Society of St James Notes formlng part of the financial Statements for the year ended 31 March 2024 (Continued) Operatlng surplus 2024 £OOOs 2023 £0008 Operating surplus is stated after charging.. Depreciation housing properties other fixed assets 475 215 35 25 408 186 36 20 Amortlsation of goodwill Auditors, remuneration as auditors (excluding VAT and expenses) other serVi￿S rent (net of service charges) service charges land and buildings Rent losses from bad debts 41 36 670 21 19 683 Operating lease costs Income and Expendlture from Soclal Housing Activities 2024 £OOOs 2023 £OOOs Income Rent receivable net of identifiable service charges and voids Service charges receivable Revenue and capital grants relating to lettings Revenue and capital grants from other sooial housing activities 4.551 2.113 4.369 4,923 3.937 1.888 4,252 4,552 Turnover from social houslng actlvlties 15.956 14,629 Social housing activity expenditure relatlng to lettings Other social housing activity expendlture 10,494 4.899 9,909 4,282 Total expenditure on social housing activity 15,393 14,191 Operating surplus from social housing activities 563 438 Void losses 490 505 Staff costs 2024 £OOOs 2023 £OOOs Wages and salarles Employer National Insuran￿ Contributions Employer pension contribution Costs 8,889 708 612 8,146 656 572 10.209 9,374 Company penslon scheme contributlons are made to pension schemes operated on the company's behalf by TPT retirement solutlons (formerly the Pensions Trust) and Hampshlre County Council. 29 Society of St James Notes forming part of the flnancial statements for the year ended 31 March 2024 (Continued) Staff costs (contlnued) The average number of staff directly employed by Ihe company during the year (expressed in full time equivalents) was.. 2024 Number 2023 Number Housing and support Substance misuse Social enterprise Finance Administration 200 80 13 176 69 12 16 15 318 280 Senior Management Team's emoluments (including Key Management Personnel) The aggregate emoluments of the Senior Management Team, including the Chief Executive, were: 2024 £OOOs 2023 £OOOs Wages and salaries Employer National Insurance Contributions Employer pension contribution costs 398 46 50 378 47 48 494 473 Remuneration payable to the highest paid Director excluding pension 87 83 For the year ended 31 March 2024 the number of employees whose annual emoluments including pension contributions were £60,000 or more were: 2024 Number 2023 Number £60,000 to £70,000 £70.000 to £80,000 £80.000 to £go,000 £90,000 to £100,000 The Chief Executive is a member of the 'Growlh Plan, pension scheme that is administered by TPT retirement solutions (formerly the Pensions Trust) and was available to all staff until 1 July 2012. As with all staff In this scheme the Chief Executive sacrificed 5°/0 of his salary during the financial year in order for the company to contribute 14 % of salary {as listed above) to the scheme. There are no enhanced or special terms for the Chief Executive's pension and he was an ordinary member of the scheme during the financial year. The Chlef Executive has no other pension arrangements to which the company contributes. The Chief Executive has retired since the end of the financial year. No member of the Board of Trustees received any remuneration in either the current or comparative years. 30 Society of St James Notes formlng part of the financial statements for the year ended 31 March 2024 (Contlnued) Intèrest receivablo and slmilar income 2024 £OOOs 2023 £OOOs Interest receivable and investment income 23 Interest payable 2024 £OOOs 2023 £OOOs Mortgage interest Unwinding of discount factor in respect of the pension growth plan Less capitalised interest 385 269 {27) {10) 359 259 Tax on surplus on ordinary activities Society of St James is a registered charity and, as such. is exempt from liability to taxation on Income and capital gains derived from its charitable activltles. Housing property Prop6rty in development Leasehold land Freehold land and property and property held for lettlngs held for lettings £OOOs £OOOs Total £OOOs £OOOs Cost At 1 April 2023 Additions: new properties works to existing properties 2,828 1,454 12,139 1,233 177 {719) (22) 14.967 3,819 186 1,132 Transfers: Disposals: components replaced 719 (22) At 31 March 2024 1,132 5.010 12,808 18,950 Depreciation At l April 2023 Charge for the year Transfers: Disposals: components replaced 327 108 1,832 367 (7) (22) 2,159 475 (22) At 31 March 2024 442 2,170 2,612 Net book value At 31 March 2024 1,132 4,568 10,638 16,338 At 31 March 2023 2,501 10,307 12,808 As at the year end, the total cost of housing properties includes capitalised interest of £1 Ook (2023: £73k). 31 Society of St James Notes forming part of the financial statements for the year ended 31 March 2024 (Contlnued) 10 Intanglble assets Goodwill £OOOs Cost at 1 April 2023 and 31 March 2024 421 Amortlsation At 1 April 2023 Charge for the year 182 35 At 31 March 2024 217 Net Book Value At 31 March 2024 204 At 31 March 2023 239 11 Other flxed assats Freehold Leasehold Property Improvements £OOOs £OOOs Motor Offlce Houslng vehicles Equlpment Equipment £0008 £OOOs £OOOs Total £OOOs Cost At 1 April 2023 Additions Disposals 278 728 109 (10) 164 34 (4) 272 42 (3) 535 96 1,977 281 (17) At 31 March 2024 278 827 194 311 631 2,241 Depreciation At 1 April 2023 Charge for the year Dlsposals 40 366 94 (4) 136 19 (4) 190 43 (1) 416 52 1,148 215 (9) At 31 March 2024 47 456 151 232 468 1,354 Net book value At 31 March 2024 231 371 43 163 887 At 31 March 2023 238 362 28 82 119 829 On a historical cost basis, the freehold property would have been included at: 2024 £OOOs 2023 £OOOs Cost Aggregate depreciation 296 (106) 296 (103) Depreciated cost 190 193 32 Society of St James Notes fomiing part of the flnancial statements for the year ended 31 March 2024 (Continued) 12 Investments Llsted Unlisted £OOOs £0008 2024 £OOOs 2023 £OOOs Cost or valuation Valuation at 1 April 2023 Disposal at cost Realised loss on investment 87 (85) (2) 10 97 (85) {2) 148 (51) Cost or Valuation at 31 March 2024 10 10 97 Historic Cost at 1 April 2023 Disposal during the year 22 (22) 10 32 (22) 45 (13) At 31 March 2024 10 10 32 All listed fixed asset investments are stated at market value. The unlisted investment is held at cost and represents 1000/0 of the share capital of Jamie's Computers Limited. Jamie's Computers Limited has its registered office at 125 Albert Road South, Southampton, S014 3FR. Jamie's Computers was dormant throughout the 8 periods from 1 April 2016 to 31 March 2024. Jamie's Computers Limited had £10,000 of unpaid share capital and £9,500 reserves at 31 March 2023 and 31 March 2024. 13 Debtors 2024 £OOOs 2023 £OOOs Trade Debtors: Rent and service charge Less Provision for doubtful debts Rent and service charge (net of provision for doubtful debts) Other trade debtors (net of provision) Grants receivable Other debtors Prepayments and accrued income 391 319 72 1,109 14 19 180 525 221 304 308 24 218 1,394 854 All amounts shown under debtors fall due for payment within one year. 14 Credltors." Amounts falling due wlthln on6 year 2024 £OOOs 2023 £OOOs Secured mortgage Trade creditors Grants in advance Taxation and social securlty Intercompany creditor (Jamle's Cornputers Ltd) Other creditors Accruals and deferred income Pension creditor (TPT) Deferred capital grant (Note 16) 231 695 670 165 10 294 55 232 580 381 173 10 287 51 186 117 2.312 1,838 33 Society of St James Notes fomilng part of the financlal statements for the year ended 31 March 2024 (Continued) 15 Creditors: Amounts falllng due after more than one year 2024 £OOOs 2023 £OOOs Deferred capital grant (note 16) Secured mortgages (net of fees) Pension creditor Recycled Capital Grants 5,535 7,484 3,771 6,873 181 13,019 10,831 The mortgages are repaid on a monthly basis over terms ranging from 15 to 30 years. Rates are either variable with a margin over Bank of England base rate or SONIA. or flxed. The remalning terms on these loans are between 4 and 23 years. A variable rate of interest was charged on £1,818k of mortgage balances (2023 £2,809k). The varlables rates applied are: 2024 2023 £OOOs £OOOs SONIA + 0.65 % on the mortgage balance of Bank of England {BoE} base rate + 2 % on the mortgage balance of Bank of England (BOE) base rate + 2.550/0 on the mortgage balance of 262 289 928 1,592 1.556 1,818 2,809 2024 £OOOs 2023 £OOOs A fixed rate of 3.20/0 was charged on mortgage balances of A fixed rate of 2.90/0 was charged on mortgage balances of A flxed rate of 3.7070/0 was Gharged on mortgage balances of A fixed rate of 6.4450/0 was charged on mortgage balances of A fixed rate of 5.750/0 was charged on mortgage balances of 604 2,223 1,480 823 907 646 2,306 1,480 6,037 4,432 The mortgages are secured by fixed charges over 38 of the Society's properties. The mortgages are repayable as follows: 2024 £OOOs 2023 £OOOs In less than one year In more than one year but less than two years In more than two years but less than five years In more than five years 231 242 508 6,874 232 256 567 6,186 7,855 7,241 34 Society of St James Notes forming part of the flnanclal statements for the year ended 31 March 2024 (Contlnued) 16 Deferred Capital Grant 2024 £OOOs 2023 £OOOs At 1 April Grants received in year Released to income in the year Transfer from l{to) RCGF 3,888 1.789 (137) 181 3,471 700 (103) (180) At 31 March 5,721 3.888 Amounts to be released within one year Amounts to be released in more than one year 186 5,535 117 3,771 5,721 3.888 17 Racycled Capltal Grant Fund {RCGF) 2024 £OOOs 2023 £OOOs At 1 April Grants recycled Interest accrued Recycling of grant new property 181 180 (181) At 31 March 181 Amounts to be relessed wlthln one year Amounts to be released in more than one year 181 181 18 Commitments 2024 £OOOs 2023 £OOOs Capital commitments Expendlture authorised by the board, but not contracted 414 750 The expenditure was completed by 16105124 and funded through both borrowings and grant 35 Society of St James Not6s forniing part of the financial statem6nts for th6 year ended 31 March 2024 (Continued) 19 Houslng stock The houslng stock of the charltable company comprised the following types of property. 2024 Number 2023 Number Leased supported units Owned supported units 219 306 240 280 525 520 20 Legislatlve provisions Society of SÉ James is a company limited by guarantee and is registered with the Charity Commlsslon and the Regulator of Social Housing. 21 Commltments under operatlng leases The company had outstanding commitments forfuture minimum payments under non-cancellable operating leases as set out below.. Land and bulldings 2024 2023 £OOOs £OOOs Operating leases which 8xpire: Within one year In to flve years After five years 621 2,272 518 697 1,920 576 3,411 3,193 22 Penslon Schema The Society of St James participates in a variety of pension schemes administrated by TPT retirement solutions, previously the Pensions Trust (the Trustee) and pays contributions at a variety of rates. For members who jolned any of the schemes prior to 1 July 2012 the Society paid contributlons at the rate of 9Q/o of salary and members paid contributions at the rate of 50/0 of salary during the accounting period. For members who have transferred into the Society's employment due to TUPE regulations and have relevant employment rights, orwho were employed before 1 July 2012, and opted to join one of the pension schemes prior to 30 November 2012, the Society pald contributions at the rate of 60/0 of salary and members paid contributions at the rate of 50/0 of salary during the accounting period. For members who joined the Society on or after 1 July 2012, or who opted tololn the pension after 30 September 2012, orwho were auto enrolled, the Society paid contributions of 30/0 whilst members paid contributions at the rate of 5 % of salary during th8 accounting period. All schemes, apart from the Growth Plan (the scheme). are defined contribution schemes. The Society participates in the scheme, a multi-employer scheme which provides benefits to some 638 non-associated participating employers. The scheme is a defined benefit scheme In the UK. It is not possible for the Society to obtsin sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore, tt accounts for the scheme as a defined Contribution scheme. Society of St James Notes forming part of the flnanclal statem6nts for the year gnded 31 March 2024 (Continued) 22 Penslon Scheme {contlnued) The scheme is subject to the funding leglslation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together wlth documents issued by the Pensions Regulator and Technlcal Acluarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK. The scheme is classified as a'last-man standing arrangement,. Therefore, the Society is potentlally liable for other particlpating employers, obligations rf those employers are unable to meet their share of the scheme deficit following wlthdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficlt on an annuity purchase basis on withdrawal from the scheme. A full actuarial valuation for the scheme was carried out at 30 September 2020. This valuation showed assets of £800.3m, liabllitles of £831.9m and a deficit of £31.6m. To eliminate thls funding shortFall, the Trustee has asked the partlclpatlng employers to pay additional contributions to the scheme, Deficit contributions requlred from the Soclety of St James from 1 April 2022 to 31 January 2025 were reduced and are now set at £7,656 per annum (payable monthly). Where the scheme Is In deficlt and where the Society has agreed to a defi¢itfunding arrangement the Society recognlses a liabillty for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value Is calculated using the discount rate detailed In these dlsclosures. The unwinding of the dlscount rate is recognised as a finance cost. Present Values of Provision 2024 £0008 2023 £0008 Present Value of Provlslon 13 Reconciliation of Opening and Closing Provisions 2024 £OOOs 2023 £OOOs Provlslon at start of period Unwinding of the discount factor (interest expense) Deficit contributions paid Remeasurements- impact of any change in assumptions Remeasurements - amendments to the contribution schedule 13 21 {8} (8) Provision at end of perlod 13 Income and Expenditure Impact 2024 £OOOs 2023 £OOOs Interest expense Remeasurements- impact of any change in assumptlons Remeasurements - amendments to the contrlbutlon schedule Assumptions 2024 2023 2022 Rate of discount 5.31 5.52 2.35 The dlscount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributlons. 37 Society of St James Notes forming part of the financial statements for the year ended 31 March 2024 (Contlnued) 22 P8nsion Scheme (continued) The following schedule details the deficlt contributions agreed between the Society and the scheme at each year end period; 2024 2023 2022 £OOOs £0008 £OOOs Year 1 Year 2 Year 3 Hampshlre County Councll Pension Fund The Society commenced participatlon in the Local Government Pension Scheme (LGPS) administered by Hampshire County Council on 1 November 2016. The disclosures below relate to the funded liabilities wlthin the Hampshire County Council Pension Fund (the "Fund.) whlch is part of the Local Government Pension Scheme (the "LGPS"). The funded nature of the LGPS requires participatlng employers and their employees to pay contributions into the Fund, calculated at a level intended to balance the pension liabilities with investment assets. The last actuarial valuation was at 31 March 2019 and the contributions to be paid until 31 March 2024 resulting from that valuation are set out in the Fund's Rates and Adjustment Certificate. The Fund Administering Authority. Hampshire County Council is responsible for the governance of the Fund. The assets allocated to the Employer in the Fund are notional and are assumed to be invested in line with the Investments of the Fund for the purposes of calculating the return to be applied to those notional assets over the accounting period. The Fund is large and holds a significant proportion of its assets in liquid investments. As a consequence, there will be no significant restriction on realising assets if a large payment is required to be paid from the Fund in relation to an employer's liabillties. The assets are Invested in a diversified spread of investments and the approximate spllt of assets for the Fund as a whole is shown in the disclosures. The Administering Authority may invest a small proportion of the Fund's investments in the assets of some of the employers participating in the Fund if it forms part of their balanced investment strategy. Reconciliation of funded status to Balance Sheet 31 March 2024 31 March 2023 £OOOs £OOOs Fair value of assets Present value of funded defined benefit obligalion 1.371 (828) 1,222 (752) Funded status 543 470 Unrecognised asset (543) (470) Liability recognised on balance sheet 38 Society of St James Notes formlng part of the financial Statements for the year ended 31 March 2024 (Continued) 22 Penslon Scheme (contlnued) The key actuarlal assumptions on which the Scheme Actuary's calculations are based are as follows: 31 March 2024 31 March 2023 Yo per annum Yo per annum Discount Rate CPI inflation Pension increases Pension accounts rate of revaluatlon Salary increases 4.85 2.75 2.75 2.75 3.75 Mortality Assumptions The mortality assumptions are based on the recent actual mortallty experience of members within the Fund and allow for expected future mortality improvements. Sample Ilfe expectancies at 65 resulting from these mortality assumptions are shown below. Assumed Llfe expectancy at 65 Male Member aged 65 at accounting date Member aged 45 at accounting date Female Member aged 65 at accounting date Member aged 45 at accounting date 2024 2023 22,1 22,6 23.3 23.8 24,7 25.7 25.7 26.7 Asset allocation in the scheme is as follows: 2024 2023 Equities Property Bonds Cash Other 55 58 37 16 18 Total 100 100 Amounts recognlsed In Income Statement 2024 £OOOs 2023 £OOOs Operating cost Current service cost Interest on net defined benefit asset 37 (1) Expense recognised in Income Statement 38 85 39 Society of St James Notes formlng part of the financial statemonts for the year ended 31 March 2024 (Continued) 22 Pension Scheme (continued) 2024 £OOOs 2023 £OOOs Amounts recognlsed In other Comprehenslve Income Asset galnsl (losses) arising during the period Actuarial galns due to change in financial assumptions Actuarial gains due to changes in demographic assumptions Actuarial (losses) due to liability experience Adjustments In respect of paragraph 28.22 of FRS102 (112) 530 19 (99) (318) 20 (26) (30) Total amount recognised in other Comprehensive Income 26 19 Changés to present value of the defined beneflt obllgation 2024 £OOOs 2023 £OOOs Opening defined benefit obligation Current service cost Interest expense on defined benefit obligation Contributions by participants Actuarial (gains)I losses due to change in financial assumptions Actuarial {gains)I losses due to changes in demographic assumptions Actuarial lossesl (gains) due to Ilability experience Net benefits paid out 752 37 36 10 (20) (8) 26 (5) 1,083 86 29 10 (530) (18) (99) (7) Closing defined benefit obllgatlon 828 752 Changes to the fair value of ass6ts 2024 £OOOs 2023 £OQOs Opening fair value of assets Interest income on assets Remeasurement (losses)I gains on assets Contributions by employer Contributions by participants Net benefits paid out 1,222 57 54 33 10 (5) 1,231 (112) 66 10 (7) Closlng falr value of assets 1,371 1,222 Actual Return on Assots 2024 £OOOs 2023 £OOOs Interest income on assets Gainl (loss) on assets 57 54 34 (112) Actual return on asset8 111 (78) 40 Society of St James Notes forming part of the flnanclal statements for tho year ended 31 March 2024 (Contlnued) 23 Reconclliation of operating surpluses to net cash Inflow from operating activities 2024 £OOOs 437 35 (137) 659 2023 £OOOs 444 36 (103) 594 Operating surplus Amortisation of intangible fixed asset Amortisation of deferred capital grant Depreciation of tangible fixed assets Deficit on disposal of fixed assets (Increase)IDecrease in debtors Increase in creditors Pension scheme adjustment (541) 400 26 392 94 19 Net cash Inflow from operating activities 879 1,484 24 Analysls of change in net debt At 1 Aprll 2023 £OOOs 2,028 Cash Flow £OOOs {1,217) Other £OOOs At 31 March 2024 £OOOs 811 Cash at bank and in hand Debt due within one year Debt due after one year (232) (6,873) 232 (842) (231) 231 (231) (7.484) Total {5,077) (1,827) (6,904) 25 Related party transactlons Related party transactions have been recorded between the Society and the brother-in-law of a senior member of staff, with the brother-in-law providing Handyman maintenance servlces to the Soclety. The total expenditure with the related party during the year was £16k (2023: £26k) wlth less than £1 k outstanding at 31 March 2024 (2023.. £1k). Related party transactions have been recorded between the Society and the daughters of a director and a senior member of staff. Both were employed at the Society's care home with the total emoluments to two members of staff during the year was £5k. Additionally. SSJ paid £20,000 to the Big Difference, a local food redistribution charity that is managed by Above Bar Church of which Trevor Pickup, Chief Executlve, Is Trustee and an elder. The payment facilitated the weekly provision of food to SSJ'S Yood banks, in Southampton and Portsmouth. No other related party transactions have occurred with regards to the Trustees and Senior Staff as listed on page 1 of these accounts, other than remuneration paid to Key Management Personnel set out in note 5. 26 Post Balance Sheet Events There were no post balance sheet events. 27 Controlling party At 31 March 2024 the ultimate controlling party was the Trustees and Dlrectors of the Society of St James, 41