OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

← Hfhgb (Homes)

2024-06-30-accounts

HFHGB (Homes)

(Company Limited by Guarantee)

TRUSTEES’ REPORT AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[TH] JUNE 2024

Registered Company No: 03155218 Registered Charity No: 1053213

HFHGB (Homes)

CONTENTS

Page
REPORT OF THE TRUSTEES 1 – 8
INDEPENDENT AUDITORS’ REPORT 9 – 11
STATEMENT OF FINANCIAL ACTIVITIES 12
BALANCE SHEET 13
STATEMENT OF CASH FLOWS 14
NOTES TO FINANCIAL STATEMENTS 15 – 27

Page 1

HFHGB (Homes)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30[TH] JUNE 2024

The Trustees are pleased to present their report together with the financial statements for the year ended 30th June 2024.

Reference and Administrative details

Registered Office 268 Bath Road, Slough, SL1 4DX

Bankers

CAF Bank Ltd, 25 Kings Hill Avenue, Kings Hill, West Malling, Kent, ME19 4JQ

Auditors

Knox Cropper LLP, 65/68 Leadenhall Street, London, EC3A 2AD

Solicitors

Bates, Wells and Braithwaite London LLP, 2-6 Cannon Street, London, EC4M 6YH

Chief Executive

David Clare (resigned 24 October 2024)

Trustees of the Company

HfHGB (Homes) Trustees serve as directors of the company and members of the Board of Trustees. The following were members of the Board of Trustees during the year:

Alistair Mugford (Resigned 1 October 2024) Brian Clark (Resigned 5 December 2024) Ian Whitehead Gordon Holmes Ipeng Kiang (Resigned 1 October 2024) Henrietta Blackmore (Appointed 1 October 2024)

The Trustees confirm that the annual report and financial statements comply with current statutory requirements, the requirements of the charity’s governing document and the provisions of the statement of recommended practice SORP (FRS 102) “accounting and reporting by charities” (effective January 2019).

Structure and Governance and Management

HfHGB (Homes) (registered charity number 1053212) is constituted as a company limited by guarantee (registered number 3155218) and is therefore governed by its memorandum and articles of association. During the year, its sole member Habitat for Humanity Great Britain, and each Trustee had a legal liability of £10 each. Legal responsibility for the management and stewardship of the charity is vested in the Board of Trustees.

Strategic decisions and operational guidelines are made by the Board of Trustees, but the operations are managed by staff overseen by the board. Any decisions that affect the strategic vision of the charity are referred to the Board for a final decision to be taken.

Page 2

HFHGB (HOMES)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30[TH] JUNE 2024

Related Party Transactions

As of 30th June 2012, HfHGB (Homes) became the sole subsidiary of Habitat for Humanity Great Britain (Habitat GB): Habitat GB is the sole member and PSC (Person of Significant Control) of the HfHGB (Homes) board, whose national director became an ex officio member of the HfHGB (Homes) board from this date by extension of the sole membership. This relationship affected our accounts in that some of our funding was raised by HfH International (the parent charity in the USA) and passed to HfHGB (Homes) via Habitat GB. Where funds are passed through in this way, no deduction is made by Habitat GB. If Habitat GB are actively involved in fundraising for the donation, then a sum will be retained by them to cover fundraising costs.

During the year under review three Habitat GB trustees (Mr Alistair Mugford, Mr Gordon Holmes and Mr Ian Whitehead) were also trustees of HfHGB (Homes). In October 2019 the trustees of HFHGB and HFHGB (Homes) decided that it was strategically desirable for the operations and specified assets of HFHGB (Homes) to transfer to Habitat GB. Detailed planning was interrupted by the Covid Pandemic. In August and September 2023, the boards of HfHGB and HfHGB (Homes) reconfirmed their intention to proceed with the planned transaction. The date of Transfer was 1[st] October 2024.

Appointment and Recruitment of Trustees

Trustees are appointed by the Board of Trustees based on the skills needed by the board and the skills of potential board members. The trustees currently meet quarterly to review strategy and operational management.

Trustee Induction and Training

New trustees undergo an induction when they are appointed, to brief them on their legal obligations under charity and company law, the aims and procedures of the charity, the content of the memorandum and articles of association, the board and decision-making process, the business plan and recent financial performance of the charity. The trustee body as a whole is kept up to date with legal and statutory requirements via briefings. Updates are circulated of changes that may affect governance and operational best practice (e.g. Charity Commission and charity/company law updates).

Organisation

The Board of Trustees meets four times per year to discuss the current and future strategic development of the charity and any issues affecting the charity’s objectives.

The staff structure during this period was as follows: the CEO manages the day-to-day operations of the charity with the assistance of a Design & Construction Manager (DCM). The CEO is appointed by the trustees who may also be involved in the appointment of other staff together with the CEO. The DCM is employed to develop the relationships needed for new projects to start and manage relationships with key partners, and to manage the programming and future pipeline of projects. The construction sites are closely overseen by an experienced Construction Manager assisted by qualified site staff, who all report to the DCM.

Operational decision making is delegated to the CEO on behalf of the Board. Decisions related to governance, organisational strategy, the financial strategy and solvency of the charity or significant changes in operational policy are the responsibility of the Board. The Board is also responsible for the arrangements for setting pay and remuneration of key management.

Page 3

HFHGB (HOMES)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30[TH] JUNE 2024

Organisation (continued)

In anticipation of the transfer of operations from HFHGB (Homes) to Habitat GB, both organisations collaborated on the development of a new joint organisational strategy which will form the strategic direction both organisations from the end of June 2024. HFHGB (Homes) retains its own suite of policies, which are reviewed and approved by the Board of Trustees.

Public Benefit

The trustees confirm that they have complied with the duty in the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit. The trustees have referred to this guidance when reviewing the charity’s aims and objectives and in planning future activities of the charity.

Risk Management

The trustees have overall responsibility for ensuring that appropriate systems of control, financial or otherwise, exist. They are responsible for safeguarding the assets of the charity, taking reasonable steps for the prevention and detection of fraud and other irregularities and providing reasonable assurance that:

The systems of internal control are designed to provide reasonable, but not absolute, assurance against material misstatement or loss. They include:

As part of its management of risk, the Board of Trustees ensures that a risk register is produced which:

Project risks are reviewed at the beginning of each project by the CEO and may be reviewed by the Board of Trustees. Organisational risks are reviewed every year by the Board of Trustees who may take independent professional legal and financial advice to ensure that risks are properly managed.

Objectives, Strategies, Activities and Achievements

Objectives

HfHGB (Homes) has two charitable objects:

Page 4

HFHGB (HOMES)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30[TH] JUNE 2024

Objectives (continued)

HfHGB’s (Homes) vision is to allow everybody access to a decent, affordable place to call home, particularly in London but looking for opportunities in other parts of Great Britain through empowering local people to meet their own housing needs, building vibrant sustainable communities in the process.

Strategies

HfHGB (Homes) has three key strategies which enable us to achieve our charitable objects:

  1. The first is to work alongside partners who have underused land or buildings and work with them to develop sustainable routes for increasing the uses and purposes of these buildings and sites. Our aim is to explore with the partner whether all or part of the site would be suitable for the provision of affordable housing or whether the sites would be better suited to provision of enhanced community facilities.

  2. The second strategy is to assist in the implementation of these kinds of projects. This may include project management or oversight, enabling the project to proceed by sourcing the necessary funding (grant, donations and debt), and possibly acting as the main contractor. Our strategy is to use the resources we can access to enable the development of both community facilities and affordable housing.

  3. Our third strategy is to carry out smaller refurbishment and maintenance works on buildings owned by partners utilising support from partners who are able to fund this level of work. This work provides considerable benefit for both the charity partner and more importantly their clients and beneficiaries. We offer a range of volunteer days, mainly with corporate supporters who also donate to the projects to cover core costs, materials and to create a margin for sustainability of the programme.

Achievements and Performance

The highlight of the year has been the completion of the Empty Spaces to Homes pilot programme with Barking & Dagenham Council. This programme has sought to convert vacant or derelict commercially owned spaces which need significant investment to refurbish to modern standards. These are then repurposed as affordable rented accommodation for young people leaving the care of the Borough. We completed our 4[th] property (Royal Parade) on 19[th] March 2024. These homes are providing shared kitchen and dining facilities, along with a private bedroom and ensuite for each resident (3 and 4-bed homes). The feedback we have had from the tenants, and the Council has been very encouraging.

In collaboration with HfHGB, we also continue to provide our Empty Spaces to Homes Toolkit (launched June 2023 - a free online learning tool) in partnership with our sponsors M&G Plc.

Consultancy projects have been less prominent, largely due to reduced capacity since Covid-19 and the slow programme recovery, coupled with our CEO taking extended leave during the year.

Staff pay increases in line with inflation (and where relevant, increased role responsibility) were implemented in January 2024.

Page 5

HFHGB (HOMES)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30[TH] JUNE 2024

Primary focus during July 2023 to June 2024

During the financial year we had a primary focus on moving forward with the transition of HFHGB (Homes) operations to Habitat GB. This involved the development and launch of a new joint organisational strategy at the end of June 2024, which will form the basis of the strategic direction both organisations going forward.

As a result of this focus, and the CEO’s extended leave, there has been reduced capacity in the team to take forward new business. This, coupled with the slow-down in consultancy activities, has meant a drop in income for HFHGB (Homes) this financial year.

However, we were delighted to be able to complete our major refurbishment and extension of Royal Parade and see it house new young tenants leaving care from the Borough of Barking & Dagenham.

We would like to thank the following companies who supported us with donations and volunteers:

M&G; P&G; Whirlpool; The Blackstone Group; Montagu Evans; Mattell; LandAid; Laing Trust; RBS; SitusAMC; Wells Fargo; Bank of America; Faegre Drinker; Epsilon; J P Morgan; Cheniere; B&Q; Albert Hunt; Henkel; CAF; RSHP; PRP Architects.

Financial Review

We had a deficit for the year to 30 June 2024 of £178,526 compared to the previous year deficit of £106,246. Our activities for the year were capital heavy with Royal Parade on site. The deficit for FY24 was due to the high cost of the Royal Parade works. Despite a rise in income, lower donations received meant a shortfall of funding, and the project was therefore completed from reserves. Thankfully the sale of Gordon Road went ahead and was able to provide a boost to working capital, realising a gain on disposal of £135,024.

Going Concern Statement

The trustees have assessed HFHGB (Homes)'s financial position and have a reasonable expectation that. after the restructuring. the remaining entity will have adequate resources to continue leasing the properties while making plans to dispose of all assets and liabilities within the coming 24 months. This assessment is based on the forecasted financials relating to lease income and expenditure which also considers receipts from sale of leases.

However, the trustees are aware of the general uncertainties and thus acknowledge potential risks to the going concern status, including:

Despite these risks, the trustees continue to adopt the going concern basis in preparing the annual financial statements, confident in the charity's ability to manage these challenges effectively.

Page 6

HFHGB (HOMES)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30[TH] JUNE 2024

Mortgage Repayments

Mortgage repayments from existing Habitat homeowners have continued to provide a reliable cash flow, with no material arrears to report. However, there are only 2 mortgages outstanding at the end of June 2024. As mortgages come to an end, arrangements to remove charges are organised with our solicitors, and updated Land Registry details are filed on behalf of our lenders.

Lease and Repair Income

The income streams from the leases that the charity has entered into have been steady through the year and performed in line with our expectations. Some leases expired during the year and end of lease arrangements were made with the owners for the return of their property, with appropriate dilapidations payments. There has also been the accrual of some income on behalf of owners where it was not possible to end a tenancy until the social housing tenant had been rehoused. These are contained within creditors in the financial statements.

Fundraising and other income

HFHGB (Homes) did not undertake direct fundraising activities during this period, working instead through the fundraising capacity of Habitat GB. This includes funding for projects connected to the Empty Spaces to Homes pilot project and the volunteer-based Upcycling programme, which HFHGB (Homes) helps to deliver in partnership with Habitat GB. Funding was mainly raised from corporate and philanthropic partners.

Where funds are passed to HFHGB (Homes) directly as a result of Habitat GB fundraising activities, costs are deducted. However, if Habitat GB disperses a portion of funds raised via Habitat for Humanity International to HFHGB (Homes), no deduction is made.

Fundraising of this kind is different to income which may be derived from leases or consultancy work which HFHGB (Homes) have contracted to deliver directly and with no involvement from Habitat GB.

Reserves Policy

Considering the organisational restructuring that took place from 1st October 2024, the trustees have reviewed the reserves policy for HFHGB (Homes). This policy is to maintain unrestricted reserves to ensure short term liquidity and long-term financial stability and sustainability. The reserves provide a buffer against unexpected financial challenges and enable management to respond swiftly to opportunities that align with the charity’s mission. The charity aims to hold unrestricted reserves equivalent to three months of operating expenses. These expenses include: loan repayments, required staff or consultancy costs payable by HFHGB (Homes), urgent repairs or maintenance obligations for lease properties, other costs related to management of assets and liabilities such as legal fees.

Reviewing the cash balance of £155,837 available at 30th June, the trustees confirm that this balance is sufficient to cover the mentioned operating expenses for the three months to 30th September 2024. From 1st October when all the operating activities are moved to HFHGB, the drafted financial forecast for the Legacy indicates a positive cash flow to the end of FY26.

The trustees will review this policy on an annual basis to ensure it remains appropriate for the charity’s financial needs and medium-term plans.

Page 7

HFHGB (HOMES)

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30[TH] JUNE 2024

Investment Policy

In order to comply with the provisions of the SORP (FRS 102), the trustees conduct an annual review of the investment policy for the financial reserves held by HfHGB (Homes). The investment policy enables the trustees to make the best judgements about how and where the reserves should be invested, taking into consideration the return against the risk of investment, the need for growth and the ease of access to the funds. The trustees would expect to place large sums of capital which are not needed for significant periods of time with qualified investment advisors with an instruction to pursue medium risk growth. The trustees would expect to place smaller sums of capital which were required to be readily accessible in a high-income earning account such as CCLA.

Ethical Investments

Whilst HfHGB (Homes) does not have a formal ethical investment policy, it will endeavour to follow ethical guidelines when investing money.

Plans for the Future

On finalisation of the Transfer Deed between HFHGB (Homes) and Habitat GB on 1 October 2024, the ongoing business of HFHGB (Homes) will focus solely on the management and disposal of the current asset portfolio and corresponding liabilities. These comprise certain properties and an associated management company, leases, mortgages and loans. A detailed Asset & Liability Management Plan is in place, overseen by the Trustees, which ensures that income, expenditure and disposal strategies continue to keep HFHGB (Homes) as a going concern.

The day to day leadership and management of HFHGB (Homes) will be the responsibility of the Habitat GB executive and staff, who will report to and consult with the HFHGB (Homes) trustees, in line with the governance requirements of the charity. As the sole member of HFHGB (Homes), Habitat GB will also be sighted on the financial status and management of the subsidiary.

Both the HFHGB (Homes) and Habitat GB Boards have formally approved the long term strategy for HFHGB (Homes) to be wound up and closed as a legal entity on the final disposal of its current assets and liabilities. This is estimated to take up to two years. No other activities will be undertaken by HFHGB (Homes) in the future.

Page 8 HFHGB (HOMES) REPORT OF THE TRUSTEES FOR THE YEAR ENDED 30711 JUNE 2024 Responsibilities in Relation to the Financial Statements The Trustees are responsible for preparing the Report of the Trustees and the financlal statements In accordance with applicable law and United Generally Accepted Accounting Prattice, Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements the trustees are required to: select suitable accounting policles and apply them consistentlyi observe the methods and principles in the Charity SORP. make judgments and estimates that are reasonable and prudent; prepare financial statements on the going concern basis unle55 It is inappropriate to presume that the charitable company wlll continue to operate. The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and which enable them to ensure that the financlal statements comply with relevant legislatlon and the trust deed. They are also responsible for safeguarding the assets of the charlty and hence taking reasonable steps for the pre4ention and detection of fraud and other irregularities. This report has been prepared in accordance with the special provisions of Part 15 of Companies Act 2006 relating to small companies. Thls report was approved by the Trustees on LICand slgned on Its behalf by: . Gordon Holmes (Trustee)

Page 9

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

HFHGB (Homes)

FOR THE YEAR ENDED 30TH JUNE 2024

Opinion

We have audited the financial statements of HFHGB (Homes) (the ‘charitable company’) for the year ended 30[th] June 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ 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 uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’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 trustees with respect to going concern are described in the relevant sections of this report.

Other information

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

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Page 10

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

HFHGB (Homes)

FOR THE YEAR ENDED 30TH JUNE 2024

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ Responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities 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 due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and 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, including fraud is detailed below:

Page 11

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF

HFHGB (Homes)

FOR THE YEAR ENDED 30TH JUNE 2024

Auditor’s responsibilities for the audit of the financial statements (continued)

There are inherent limitations in the audit procedures described above and, the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken, so that we might state to the charitable company’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 charitable company and the charitable company’s members as a body, for our audit work, for this report or for the opinion we have formed.

James Holland-Leader FCA (Senior Statutory Auditor) For and on behalf of Knox Cropper LLP, Statutory Auditor 65 Leadenhall Street London EC3A 2AD Date:

HFHGB (Homes)

STATEMENT OF FINANCIAL ACTIVITIES

(INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 30[th] JUNE 2024

Notes
INCOME FROM
Donations and Legacies
2
Investments
Charitable Activities
3
Other Income
4
TOTAL INCOME
EXPENDITURE ON
Raising Funds
5
Charitable Activities
6
TOTAL EXPENDITURE
Net Income/(Expenditure)
NET MOVEMENT IN FUNDS
TOTAL FUNDS BROUGHT FORWARD
TOTAL FUNDS CARRIED FORWARD
15		 Restricted
2024
£
143,180
-
-
-
143,180
-
152,962
152,962
(9,782)
(9,782)
14,166
£4,384		 Unrestricted
2024
£
7,789
174
603,191
135,024
746,167
10,206
904,716
914,922
(168,744)
(168,744)
951,443
£782,699		 Total
2024
£
150,969
174
603,191
135,024
889,358
10,206
1,057,678
1,067,884
(178,526)
(178,526)
965,609
£787,083		 Restricted
2023
£
273,649
-
-
-
273,649
-
392,583
392,583
(118,934)
(118,934)
133,100
£14,166		 Unrestricted
2023
£
38,578
92
320,124
-
358,794
16,767
329,339
346,106
12,688
12,688
938,755
£951,443		 Total
2023
£
312,227
92
320,124
-
632,443
16,767
721,922
738,689
(106,246)
(106,246)
1,071,855
£965,609

All the activities reported above relate to continuing operations.

The Notes on pages 15 to 27 form an integral part of these financial statements.

Page 13 AT 2024 2023 Notes FIXED ASSErs Tanglble Flxed Assets Programme Related Investments Work In Progress 769,469 29,524 90D,042 43,867 io li 798,993 1,017,071 CURRENT ASSETS Oebtors Cash at Bank and In Hand 12 119,206 155 837 275,043 174,OH 101843 275,887 CREDrroRS . Amounts falllng due wlthln one year 13 213 570 NET CURRENT ASSErs 61,473 51,594 CREDXTORS: Afflounts falllng due after more thart one year 14 (73,383) (103,056) NET ASSETS £787 083 £965 609 REsTricfED FUNDS UNRESTRicfED FUNDS Deslgnated FLJnds General Fund5 TOTAL FUNDS 16 4,384 14,166 15 782 699 £787 083 £965 609 These acojunts a￿ p￿Pared in accordan￿ wlth the spedal provlslons of Part IS of the Qjmpanfes Act relatyng to small companles and constftute the annual accounts requlred by the Companles Act 2006 and are for clrculation to rnernbe￿ of the company, The flnandal statements We￿ approved by the Trnstees on behalf by: 28 MertL and slgned on thelr Ian Whitehead (rrustee) Company No: 03155218 The notes on pages 15 to 27 fonn an intvjral part of th￿￿ financlal ststements,

Page 14

HFHGB (Homes)

CASH FLOW STATEMENT FOR THE YEAR ENDED 30[th] JUNE 2024

2024
£
£
Cash flows from Operating Activities (a) below
Net cash provided by/(used in) operating activities
(96,537)
Cash flows from Investing Activities
Investment Income
174
Payments to acquire tangible fixed assets
(6,215)
Proceeds from sale of fixed assets
175,000
Repayment of Programme Related Investments
14,343
Net cash provided by/(used in) investing activities
183,302
Cash flows from Financing Activities
Loan Drawdowns
-
Loan Repayments
(28,637)
Interest Paid
(4,134)
Net cash provided by/(used in) financing activities
(32,771)
Change in Cash and Cash Equivalents in the Year
53,994
Cash and Cash Equivalents at 1st July 2023
101,843
Cash and Cash Equivalents at 30 June 2024
£155,837
(a) Reconciliation of Net Income/(Expenditure) to Net Cash flow from
Operating Activities
2024
£
Net Income/(Expenditure)
(178,526)
Interest Income Received
(174)
Interest Paid
4,134
Depreciation
(Gain)/Loss on disposal of fixed assets
Expense of Work in Progress
103,414
(73,786)
66,560
(Increase)/Decrease in Debtors and Prepayments
54,838
Increase/(Decrease) in Trade Creditors and Provisions
(11,759)
£(96,537)
(b) Analysis of Changes in Net Debt
At 1st July
2023
£
Cash
101,843
Loans falling due within one year
(28,591)
Loans falling due after more than one year
(103,056)
£(29,804)		 2023
£
£
2,403
92
(9,985)
-
31,293
21,400
-
(27,621)
(6,202)
(33,823)
(10,020)
111,863
£101,843
2023
£
(106,246)
(92)
6,202
48,344
55,761
-
(40,499)
38,933
£2,403
Cash Flows
At 30th June
2024
£
£
53,994
155,837
(1,036)
(29,627)
29,673
(73,383)
£82,631
£52,827		 2023
£
£
2,403
92
(9,985)
-
31,293
21,400
-
(27,621)
(6,202)
(33,823)
(10,020)
111,863
£101,843
2023
£
(106,246)
(92)
6,202
48,344
55,761
-
(40,499)
38,933
£2,403
Cash Flows
At 30th June
2024
£
£
53,994
155,837
(1,036)
(29,627)
29,673
(73,383)
£82,631
£52,827
£52,827

The notes on pages 15 to 27 form an integral part of these financial statements.

Page 15

HFHGB (Homes)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th ] JUNE 2024

1. ACCOUNTING POLICIES

(a) Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention, and in accordance with the Statement of Recommended Practice (SORP), “Accounting and Reporting by Charities” (FRS 102), the Financial Reporting Standard 102 and the Companies Act 2006. The company is a public benefit entity.

The financial statements are prepared in sterling, which is the functional and presentational currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The Trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern. The Board has considered the principal risks and uncertainties on the short and long term health of the Charity, and is content that the measures taken, combined with sufficient reserves, provides assurance that the going concern basis is appropriate in preparing the financial statements.

(b) Company Status

The company, which is a registered charity, is limited by guarantee and is controlled by Habitat for Humanity Great Britain who are the sole member. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity.

(c) Fund Accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors which have been raised by the company for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

(d) Income

All incoming resources are included in the Statement of Financial Activities when the company is legally entitled to the income, it is probable the income will be received and the amount can be quantified with reasonable accuracy.

HFHGB (Homes) enters into commercial contracts with a local authority to undertake renovation work on empty local authority properties. Contract revenue and contract costs are recognised as revenue and expenses respectively by reference to the stage of completion at the reporting date. The Charity uses the measured valuation method to determine the amounts to be recognised in the period. The value of works is calculated by surveyors by reference to the contract sum breakdowns up to the end of the reporting period for each contract.

(e) Expenditure

All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resources.

Page 16

HFHGB (Homes)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th ] JUNE 2024

1. ACCOUNTING POLICIES (Continued)

Direct costs, including directly attributable salaries, are allocated on an actual basis to the key areas of activity. Overheads and other salaries are allocated between the expense headings on the basis of time spent. Support costs are those costs incurred directly in support of expenditure on the objects of the Charity and are allocated on the basis of staff cost.

Fund-raising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities.

Governance costs are those incurred in connection with enabling the charity to comply with external regulation, constitutional and statutory requirements and in providing support to the Trustees in the discharge of their statutory duties.

(f) Tangible Fixed Assets and Depreciation

All assets costing more than £500 are capitalised.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following basis:

Freehold property - 2% straight line
Plant and equipment - 20% straight line
Computer Equipment - 33% straight line
Short Term Leasehold Properties - Over Life of Lease

(g) Short Term Leases

As part of the empty homes projects, HFHGB (Homes) enters into short term leases with either the local authority or housing association to enable the charity to generate rental income which will fund the cost of the renovation. The costs of the renovation are capitalised and depreciated over the life of the lease to the extent that future rental income will be received. Where the renovation expenditure is funded from grant income, the expenditure is charged to the statement of financial activities.

(h)

Programme Related Investments

Programme related investments are stated at cost price at the balance sheet date.

Stocks are valued at the lower of cost and net realisable value after making due allowance for projected losses on long term contracts. Cost includes all direct cost and an appropriate proportion of fixed and variable overheads.

(j) VAT

The charity is registered for VAT.

(k) Taxation

HFHGB (Homes) is a registered charity and is potentially exempt from taxation in respect of income and capital gains received within the categories covered Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that such income or gains are applied to exclusively charitable purposes.

Page 17

HFHGB (Homes)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2024

1. ACCOUNTING POLICIES (Continued)

(l) Financial Instruments

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

(m) Debtors

Debtors are amounts owed to the Charity. They are measured on the basis of their recoverable amount.

(n) Cash at bank and in hand

Cash at bank and in hand is held to meet the day to day running costs of the Charity as they fall due. There are no other cash equivalents held by the Charity.

(o) Creditors

Creditors are amounts owed by the Charity. They are measured at the amount that the Charity expects to have to pay to settle the debt. Amounts which are owed in more than a year are shown as long term creditors.

(p) Significant Management Judgements and Estimation Uncertainties

The following are the critical judgements and key sources of estimation uncertainty that the Board has made in the process of applying the charity’s accounting policies and that have the most significant effect on the amounts recognised in the financial statements:

Empty Homes Project Funding

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

Useful lives of depreciable assets

Management reviews its estimate of the useful lives of depreciable assets at each reporting date based on the expected utility of the assets. Uncertainties in these estimates relate to ‘technological obsolescence’ with regard to IT equipment/software and any changes to lease terms. The accumulated depreciation at 31 March 2024 was £391,993.

Page 18

HFHGB (Homes)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2024

2.
VOLUNTARY INCOME
M&G
P&G
Whirlpool
John Laing Trust
BP
LandAid
Realty
Tradeweb
TraskRabbit
Wells Fargo
Bank of America
Wesco
Northern Trust
SEI
Cheniere
Henkel
Epsilon
Europa Capital
Quaker
M&G
P&G
Whirlpool
The Blackstone Group
Montagu Evans
Mattel
LandAid
Laing Trust
RBS
SitusAMC
Wells Fargo
Bank of America
Faegre Drinker
Epsilon
J P Morgan
Cheniere
B&Q and Albert Hunt
Henkel
Habitat For Humanity (Parent)
Other		 Restricted
2024
£
14,657
10,035
5,017
20,319
1,900
34,000
-
6,387
5,941
13,930
3,188
2,509
12,543
2,509
6,706
2,235
-
1,304
-
143,180
Restricted
2023
£
46,855
-
3,757
73,457
28,253
10,964
10,000
40,000
2,087
2,762
6,165
25,754
1,043
-
-
-
10,133
6,300
6,119
-
£273,649		 Unrestricted
2024
£
-
-
-
-
-
-
7,300
-
-
-
-
-
-
-
-
-
439
-
50
7,789
Unrestricted
2023
£
-
12,895
-
-
-
-
-
-
2,384
3,405
8,290
-
1,192
1,755
1,220
7,068
-
-
-
369
£38,578		 Total
2024
£
14,657
10,035
5,017
20,319
1,900
34,000
7,300
6,387
5,941
13,930
3,188
2,509
12,543
2,509
6,706
2,235
439
1,304
50
150,969
Total
2023
£
46,855
12,895
3,757
73,457
28,253
10,964
10,000
40,000
4,471
6,167
14,455
25,754
2,235
1,755
1,220
7,068
10,133
6,300
6,119
369
£312,227

Page 19

HFHGB (Homes)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2024

3. CHARITABLE ACTIVITIES

CHARITABLE ACTIVITIES
Professional fees
Contract works
Volunteer facilitation grants
Rental Income -Short Leasehold Properties		 Restricted
Funds
£
-
-
-
-
£-		 Unrestricted
Funds
£
23,948
472,440
5,992
100,811
£603,191		 2024
Total
£
23,948
472,440
5,992
100,811
£603,191		 2023
Total
£
4,518
216,488
2,500
96,618
£320,124

HfHGB (Homes) retains an equity interest in the properties which are subject to mortgage as set out in note 10. During the year, none of these properties were sold (2023: none).

4. OTHER INCOME

Gain on disposal of property Restricted
Funds
£
-
£-		 Unrestricted
Funds
£
135,024
£135,024		 2024
Total
£
135,024
£135,024		 2023
Total
£
-
£-

5. COST OF RAISING FUNDS

Staff Costs
Other Support Costs		 2024
£
10,165
41
£10,206		 2023
£
16,681
86
£16,767

Page 20

HFHGB (Homes)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2024

6. ANALYSIS OF CHARITABLE ACTIVITIES

Construction & Renovation Project Expenditure
East Street
Nithdale Road
Broad Street
Gale Street, Barking & Dagenham
Friends Meeting House, Tunbridge Wells
Claudia Jones
M&G Research Project
Woodward Road
New Hope, Watford
Bolton Crescent Maintenance
Other Project Costs
Winterisation Programme
Empty Spaces to Homes (ES2H)
Upcycling Programme
MSQ Dumfries
Royal Parade
Ringstead Road
Amortisation of Project Costs
Ringstead Road, Lewisham
Friends Meeting House, Tunbridge Wells
East Street
Nithdale Road
Interest Expense
Ringstead Road, Lewisham
East Street, Barking & Dagenham
Development Advisory and Management Services
Kingsley Hall/Livability
St. Leonards Church, Chesham Bois
Choumert Road, Peckham
Other Project costs
Nationwide Sponsored Training Scheme
Support Costs
Governance Costs		 2024
Restricted
£
-
-
-
-
-
-
-
-
-
1,025
-
-
5,894
43,621
-
100,522
-
-
-
-
-
-
-
-
-
-
1,900
152,962
-
-
£152,962		 2024
Unrestricted
£
632
1,727
1,289
4,596
8,048
5,189
935
5,894
2,799
-
20,000
1,205
-
-
1,393
478,850
371
16,964
14,725
66,524
2,971
1,518
2,556
2,607
1,371
27
-
642,191
242,636
19,889
£904,716		 2024
Total
£
632
1,727
1,289
4,596
8,048
5,189
935
5,894
2,799
1,025
20,000
1,205
5,894
43,621
1,393
579,372
371
16,964
14,725
66,524
2,971
1,518
2,556
2,607
1,371
27
1,900
795,153
242,636
19,889
£1,057,678

Page 21

HFHGB (Homes)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2024

6. ANALYSIS OF CHARITABLE ACTIVITIES (Continued)

Construction & Renovation Project Expenditure
East Street
Nithdale Road
Broad Street
Gale Street, Barking & Dagenham
Friends Meeting House, Tunbridge Wells
Claudia Jones
M&G Research Project
Woodward Road
Bolton Crescent Maintenance and planning
Other Project Costs
Gale Street Workshop
Winterisation Programme
Empty Spaces to Homes (ES2H)
Upcycling Programme
MSQ Dumfries
Royal Parade
Ringstead Road
Amortisation of Project Costs
Broad Street
Ringstead Road, Lewisham
Friends Meeting House, Tunbridge Wells
East Street
Nithdale Road
Interest Expense
Ringstead Road, Lewisham
East Street, Barking & Dagenham
Development Advisory and Management Services
Kingsley Hall/Livability
St. Leonards Church, Chesham Bois
Choumert Road, Peckham
Other Project costs
Nationwide Sponsored Training Scheme
Business Development Costs
Support Costs
Governance Costs		 2023
Restricted
£
-
-
-
4,460
-
39,217
-
176,640
6,952
-
31,873
-
-
-
-
105,057
-
-
-
-
-
-
-
-
-
-
-
28,384
-
392,583
-
-
£392,583		 2023
Unrestricted
£
560
1,165
2,671
-
4,080
1,872
6,832
19,640
5,334
5,328
4,287
670
1,395
28,877
3,750
3,671
329
(4,323)
16,965
14,725
14,262
4,235
2,133
2,956
1,189
1,882
1,607
-
15,045
161,137
142,428
25,774
£329,339		 2023
Total
£
560
1,165
2,671
4,460
4,080
41,089
6,832
196,280
12,286
5,328
36,160
670
1,395
28,877
3,750
108,728
329
(4,323)
16,965
14,725
14,262
4,235
2,133
2,956
1,189
1,882
1,607
28,384
15,045
553,720
142,428
25,774
£721,922

Page 22

HFHGB (Homes)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2024

7. RESOURCES EXPENDED

Staff Costs
Outside Labour
Materials
Other construction costs
Insurance
Legal & Professional
Other Office Expenses
Financing Costs
Depreciation of fixed assets
Amortisation of short-term leases
Bad Debts		 Activities for
Raising Funds
£
10,165
-
-
-
-
-
41
-
-
-
-		 Charitable Activities
Direct
Costs
Support
Costs
Governance
Costs
2024
Total
£
£
£
£
120,245
185,704
12,446
308,887
70
-
-
70
487,651
3,821
-
491,472
4,846
105
-
4,951
1,708
13,276
-
14,984
59,585
22,535
7,314
89,434
15,790
14,431
129
30,391
4,074
60
-
4,134
-
2,230
-
2,230
101,184
-
-
101,184
-
474
-
474
£10,206 £795,153
£242,636
£19,889
£1,067,884
Staff Costs
Outside Labour
Materials
Other construction costs
Insurance
Legal & Professional
Other Office Expenses
Financing Costs
Depreciation of fixed assets
Amortisation of short-term leases
Bad Debts		 Activities for
Raising Funds
£
16,681
-
-
-
-
-
86
-
-
-
-		 Charitable Activities
Direct
Costs
Support
Costs
Governance
Costs
2023
Total
£
£
£
£
103,618
66,564
17,829
204,692
8,404
-
-
8,404
276,864
3,291
-
280,155
33,746
223
-
33,969
2,941
7,292
-
10,233
64,645
50,373
7,377
122,395
11,500
12,141
568
24,295
6,139
63
-
6,202
-
2,481
-
2,481
45,863
-
-
45,863
-
-
-
-
£16,767 £553,720
£142,428
£25,774
£738,689

8. NET INCOME/(EXPENDITURE)

The operating result is stated after charging.

Depreciation
Payments to auditors in respect of audit services
Payments to auditors in respect of other services		 2024
2023
£
£
103,414
48,344
7,300
7,350
-
-

Page 23

HFHGB (Homes)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2024

9. TANGIBLE FIXED ASSETS

COST
At 1stJuly 2023
Additions
Disposals
At 30thJune 2024
DEPRECIATION/
AMORTISATION
At 1stJuly 2023
Charge for the Year
Disposals
At 30thJune 2024
NET BOOK VALUE
At 30thJune 2024
At 30thJune 2023		 Office, Land &
Buildings
Plant &
Machinery
Short Term
Leasehold
Properties
Total
Schemes in
Development
£
£
£
£
30,160
20,050
1,140,247
1,190,457
73,162
5,050
1,165
-
6,215
-
(35,210)
-
-
(35,210)
(73,162)
-
21,215
1,140,247
1,161,462
-
1,836
16,676
271,903
290,415
-
-
2,230
101,184
103,414
-
(1,836)
-
-
(1,836)
-
-
18,906
373,087
391,993
-
£-
£2,309
£767,160
£769,469
£-
£28,324
£3,374
£868,344
£900,042
£73,162

10. PROGRAMME RELATED INVESTMENTS

Cost or Valuation
At 1stJuly 2023
Additional loans in Year
Repayments
At 30thJune 2024
Repayable within one year
Repayable in more than one year		 2023
£
43,867
-
(14,343)
£29,524
14,166
15,358
£29,524		 2023
£
75,160
-
(31,293)
£43,867
12,209
31,658
£43,867

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

Page 24

HFHGB (Homes)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2024

11.
WORK IN PROGRESS
2024
£
Building Renovation
-
New Building Construction
-
Total
£-
2024
£
Balance Brought Forward
73,162
Additional Costs in the year
5,050
Disposals
(78,212)
Balance Carried Forward
£-
12.
DEBTORS
2024
£
Trade Debtors
37,167
Prepayments
469
Other Debtors and Accrued Income
73,966
VAT
7,604
£119,206
13.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024
£
Trade Creditors
46,316
Social Security and Other Taxes
982
Accruals and Deferred Income
134,669
VAT
-
Sinking Fund
1,976
Loan – Repayable within one year
29,627
£213,570
14.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024
£
Loan – balance repayable in 1 – 5 years
69,701
Loan – balance repayable in more than 5 years
3,682
£73,383		 2023
£
-
73,162
£73,162
2023
£
122,321
6,602
(55,761)
£73,162
2023
£
702
5,403
135,680
32,260
£174,045
2023
£
61,731
4,005
99,054
-
30,912
28,591
£224,293
2023
£
84,884
18,172
£103,056

The loans are secured against the assets of HfHGB (Homes) under a fixed and floating charge. The first loan is repayable in monthly instalments of £1,485.06 which include interest charged at a rate of 3.75%. The term of the loan is 9.5 years from the date of drawdown of the loan. In 2019 an additional loan of £100,000 was drawn down, and in 2020 a further £23,500 was drawn down to fund the East Street development. It is repayable over 10 years from the date of completion and interest is chargeable at 3.25%.

Page 25

HFHGB (Homes)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2024

15.
NET ASSETS BY FUND
2024
Fixed Assets
Current Assets
Creditors due within one year
Creditors due in more than one year
2023
Fixed Assets
Current Assets
Creditors due within one year
Creditors due in more than one year
16.
RESTRICTED FUNDS
2024
Adventure Playground
Young Persons Training
Programme
Empty Spaces to Homes
2023
Adventure Playground
Young Persons Training
Programme
The Claudia Jones Organisation
Empty Spaces to Homes		 Restricted
Unrestricted
Designated
Total
£
£
£
-
798,993
798,993
4,384
270,659
275,043
-
(213,570)
(213,570)

-
(73,383)
(73,383)
£4,384
£782,699
£787,083
Restricted
Unrestricted
Designated
Total
£
£
£
-
1,017,071
1,017,071
14,166
261,721
275,887
-
(224,293)
(224,293)

-
(103,056)
(103,056)
£14,166
£951,443
£965,609
Funds as at
1st July 2023
Incoming
Resources
Resources
Expended
Funds as at
30th June 2024
£
£
£
£
1,167
-
(1,025)
142
6,142
-
(1,900)
4,242
6,857
143,180
(150,037)
-
£14,166
£143,180
£(152,962)
£4,384
Funds as at
1st July 2022
Incoming
Resources
Resources
Expended
Funds as at
30th June 2023
£
£
£
£
1,821
6,299
(6,953)
1,167
24,526
10,000
(28,384)
6,142
-
39,217
(39,217)
-
106,753
218,133
(318,029)
6,857
£133,100
£273,649
£(392,583)
£14,166

The Young Persons Training Programme is a programme being run in conjunction with Barking College for young persons with learning disabilities.

The Claudia Jones Organisation runs a women's centre in East London. The funds are for renovation of the centre.

Page 26

HFHGB (Homes)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2024

16. RESTRICTED FUNDS (continued)

The Adventure Playground fund represents income received for the development of an adventure playground in Southwark.

The Empty Spaces restricted fund represents the Gale Street, Woodward Road and Royal Parade redevelopment projects to redevelop unoccupied commercial space in Barking and Dagenham into residential spaces for vulnerable young people. This fund also represents income received for the upcycling of unwanted, secondhand goods which are repurposed by HFHGB (Homes) to put into the properties of other projects that they currently undertake.

17. EMPLOYEES

EMPLOYEES
Wages and Salaries
Employer’s NI
Pension Costs
Capitalised Staff Costs – Short Leasehold Projects
Other Staff Costs		 2024
£
150,771
15,955
3,634
£170,360
7,118
163,242
£170,360		 2023
£
170,296
17,946
3,811
£192,053
581
191,472
£192,053

The total employee benefits of the 2 members of the senior management team amount to £76,847 (2023: £99,592).

Total redundancy benefits amount to £Nil (2023: £Nil).

The average number of employees during the year was 4 (2023: 5).

One employee earned between £60,000 - £70,000.

18. TRUSTEES REMUNERATION AND EXPENSES

None of the trustees received any remuneration and no other expenses have been incurred during both the current and preceding year.

19. CAPITAL COMMITMENTS

Capital expenditure that has been contracted for but
has not been provided for in the financial statements
Total		 2024
£
4,220
£4,220		 2023
£
497,218
£497,218

Page 27

HFHGB (Homes)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30[th] JUNE 2024

20. RELATED PARTY TRANSACTIONS

HFHGB (Homes) is a wholly controlled subsidiary of Habitat for Humanity Great Britain, a charitable company registered in England and Wales. The company number of Habitat for Humanity Great Britain is 3012626, and the registered charity number is 1043641 (SCO48638 - Scotland). The principal objective of Habitat for Humanity GB is to alleviate poverty by helping people who live in substandard housing to access better living conditions. Control is exercised by the parent of HFHGB (Homes) via mutual Trustee Board members. During the year under review two Habitat for Humanity Great Britain trustees (Mr Brian Clark and Mr Ian Whitehead) were also trustees of HfHGB (Homes), together with Tum Kazunga (CEO of Habitat for Humanity Great Britain and Ex-officio Trustee of HfHGB (Homes). The address from which the public can obtain the consolidated accounts of Habitat for Humanity Great Britain, which include the accounts of HFHGB (Homes), is 10 The Grove, Slough, Berkshire, SL1 1QP.

Some of the funding received by HFHGB (Homes) was raised by Habitat for Humanity GB. During the year, £117,841 (2023: £248,858) of funding was received through Habitat for Humanity GB. The amount of funding due from Habitat for Humanity GB at the year-end amounted to £40,511 (2023: £123,682), which is included within other debtors and accrued income.

21. COMPANY LIMITED BY GUARANTEE

The company, which is a registered charity, is limited by guarantee and is controlled by Habitat for Humanity Great Britain who are the sole member. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity.

22. SUBSEQUENT EVENTS

The following non-adjusting events have occurred since 30 June 2024:

On finalisation of the Transfer Deed between HFHGB (Homes) and Habitat GB on 1 October 2024, the ongoing business of HFHGB (Homes) will focus solely on the management and disposal of the current asset portfolio and corresponding liabilities. These comprise certain properties, leases, mortgages and loans. All other activities of HFHGB (Homes) have been transferred to Habitat GB, which are material to these Financial Statements. A detailed Asset & Liability Management Plan is in place, overseen by the Trustees, which ensures that income, expenditure and disposal strategies continue to keep HFHGB (Homes) as a going concern.

The estimated financial impact is that once activities have been fully transferred, the residual income retained by HFHGB (Homes) will consist of rental income from short leasehold properties amounting to approximately £100k, with mortgage and associated expenditure amounting to approximately £55k p/a.