FRAMEWORK HOUSING ASSOCIATION STRATEGIC AND BOARD REPORT FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR TO 31st MARCH 2025 COMPANY REGISTRATION No: 3318404 FRAMEWORK HOUSING ASSOCIATION INDEX Page INFORMATION STRATEGIC REPORT 3-29 BOARD REPORT 30-31 INDEPENDENT AUDITOR'S REPORT 32-35 STATEMENT OF COMPREHENSIVE INCOME 36 STATEMENT OF FINANCIAL POSITION 37 STATEMENT OF CHANGES IN RESERVES 38 STATEMENT OF CASH FLOWS 39 NOTES TO THE FINANCIAL STATEMENTS 40-59 FRAMEWORK HOUSING ASSOCIATION INFORMATION AS AT 31st March 2025 THE BOARD: Ruth Hawkins Louise Harris Catherine Arkley Marcus Beale Tom Jackson Jane Bethea Nigel Turner Holly Dagnall Rob Main Chair Chair of Audit and Risk Management Committee Chair of the Governance, Remuneration and Appraisal Committee Chair of the Service Delivery Committee Appointed from 1 st January 2025 Appointed from 1 st January 2025 Retired on 31 st March 2025 Alan Davies Neil Jones Brigitte Scammell Paddy Tipping Sheona MacLeod SENIOR LEADERSHIP TEAM: Andrew Redfern Chief Executive Claire McGonigle Deputy Chief Executive Suzanne Williamson Director of Finance, Governance and Risk Steve Watson Director of Homelessness Services Apollos Clifton-Brown Director of Health and Social Care Dave Newmarch Director of Corporate Services COMPANY SECRETARY: Suzanne Williamson REGISTERED OFFICE: Val Roberts House, 25 Gregory Boulevard, Nottingham NG7 6NX Tel: (0115) 8417711 E-mail: info@frameworkha.org Beever and Struthers One Express, 1 George Leigh Street, Manchester M4 5DL Actons, 20 Regent Street, Nottingham NG15BQ National Westminster Bank Plc, Nottingham City Branch 148-149 Victoria Centre, Nottingham NG13QT AUDITORS: SOLICITORS: BANKERS: REGISTERED CHARITY No: REGISTERED PROVIDER OF SOCIAL HOUSING No: COMPANY REGISTRATION No: 1060941 LH4 184 331840 The Board Members present their Strategic Report, Board Report and Audited Financial Statements for the year ended 31st March 2025. Page 2 FRAMEWORK HOUSNG ASSOCIATION STRATEGIC REPORT PRINCIPAL ACTIVITIES The principal activities of Framework Housing Association are to provide accommodation, support, care, treatment, training, resettlement, and related services to homeless, vulnerable, and excluded people. At present these activities are carried out mainly in the cities of Nottingham, Lincoln, Le]￿ster & Sheffield and the counties of Nottinghamshire, Derbyshire, Lincolnshire & Northamptonshire. Framework's Objects, as set out in its Articles of Association, are to carry out the following activities for persons in need who are homeless (or threatened with the prospect of becoming homeless) andl or suffering from the effects of poverty, sickness, disability, old age, alcoholism, drug addiction, offending behaviour or any other mental or physical infinmity: To provide housing, treatment, rehabilttation, education, training and care To provide facilities, resources and Ser￿￿S to support andl or benefit them To provide. maintain or improve properties to deliver the above Ser￿￿S To promote further study of the nature, extent and consequences of the above social problems. Framework's Vision, as set out in the 2022-2027 co￿Orate Plan is that People experiencing Homelessness and Related Disadvantage are treated with Dignity, Respect and Compassion, and are empowered to reach their full potential. Framework's Mission Statement is: Working to tackle Homelessness, 111-health, Disadvantage and Exclusion, by: Providing holistic, person-centred programmes of housing, health, employment and support Challenging systems & influencing their design to deliver integrated services with better outcomes Preventing homelessness and its causes Advocating for service users and embedding their experien￿ in our work. ORGANISATION STATUS Framework is a Registered Charity (no. 1060941) and a Company Limited by Guarantee (no. 331840). In the event of winding up, the liability of each member is limited to £1.00. Framework is also a Registered Provider of Social Housing (no. LH4 184). These accounts are prepared in accordance with the Statement of Recommended Practice for Registered Social Housing Providers (2018) and the Accounting Direction for Private Registered Providers of Social Housing (2022). GOVERNANCE Board Framework is governed by a Board which is ultimately responsible for its activities and affairs. The Board Members are all Directors of the Company, Trustees of the Charity and Members of the Association. The current members of the Board are as listed above. The Board completed a suc￿Ssful recruitment campaign during the year, appointing new members which further strengthens the experience and skills among its Membership. These appointments form part of succession planning, to replace those whose expertise will be lost over the coming eighteen months as a Consequen￿ of the redU￿d term limits imposed by the National Housing Federation's Code of Governance (2020). Page 3 FRAMEWORK HOUSING ASSOCIATION STRATEGIC REPORT (continued) Framework's day-to-day management is delegated to its Chief Executive and Senior Leadership Team (SLT), with certain tasks passed to the Corporate Leadership Team (CLT). Oversight of other relevant activities is delegated by the Board to the Audit and Risk Management (ARM) Committee and the Service Delivery (SD) Committee. The former Governance, Remuneration and Appraisal (GRA) Committee has been replaced by a new Nominations and Remuneration (NR) Committee with effect from April 2025. The Board has agreed a list of Key Control Policies (KCPS) that it alone can amend. Changes to other policies can be made by Committees, the Senior Leadership Team or Corporate Leadership Team in accordance with their delegated authorities. The Board meets at least eight times per annum and holds an annual Conference. The standard term of office for each individual Board Member is three years. this may be extended subject to review. In accordance with the National Federation's Code of Governance (2020) Members usually retire after a second three-year term. Exceptionally, this six-year limit may be extended to meet specific governance or organisational needs. Compliance with Regulator of Social Housing's Governance and Financial Viability Standards and Consumer Standards In January 2024 Framework was the subject of an In-Depth Assessment (IDA) by the Regulator of Social Housing (RSH). The outcome was that Framework's G11 V2 rating for its compliance with the RSH Governance and Viability Standards was retained. The IDA did not include any rating of Framework's compliance with the RSH Consumer Standards. It is a regulatory requirement and a matter of good practice for Registered Providers of Social Housing to assess their compliance with the RSH Governan￿, Financial Viability and Consumer Standards. Framework's 2025 self-assessments of compliance with these have been received and discussed by the Board. It concluded the organisation remains compliant with all the RSH standards and no notifiable breaches of them have occurred in the year. Charity Commission Public Benefit Guidance Framework Board Members have regard to the Charity Commission's public benefit guidance when exercising their powers and carrying out the duties to which it relates. In the view of the Board, Framework's activity continues to deliver public benefit and it has not taken any decisions that depart from the guidance during the 2024-'25 financial year. Code of Governance Framework has adopted the National Housing Federation's (NHF) Code of Governance 2020. The Board assesses its compliance with the Code on an annual basis. The self- assessment for 2024-'25 concluded that Framework is fully compliant with the NHF Code. Statement of Board Members, Skills, Qualities and Experience The role of Board Members is set out in a written profile. The Board Member appraisal process assesses performance against this. The recent Board Member recruitment was informed by a Skills Audit, its outcome enhancing the housing, asset management and public health skills present on the Board, whilst also strengthening Committee membership. Committees of the Board The Board has established Committees, each of which have delegated authority to act on its behalf within detailed Terms of Reference (TOR). These are set out in appendices to 'Governance in Action, (Framework's Governance Policy). Page 4 FRAMEWORK HOUSING ASSOCIATION STRATEGIC REPORT (continued) In 20241,25 there were three Committees: the Audit and Risk Management (ARM) Committee, the Service Delivery (SD) Committee and the G0veman￿, Remuneration and Appraisal (GRA) Committee. The decisions taken by the ARM Committee relate to the identification and assessment of risks to the achievement of Framework's objectives and the creation and monitoring of systems, policies & procedures to manage them. Its current members are Louise Harris (Chair), Alan Davies, Tom Jackson, Sheona MacLoed and Rob Main. The SD Committee is responsible for ensuring that Framework has appropriate policies, structures, systems and procedures in pla￿ to offer safe, effective and high-quality seni]￿s. It also plays the primary role in monitoring their delivery. Its current members are Marcus Beale (Chair), Holly Dagnall, Paddy Tipping, Brigitte Scammell and Jane Bethea. The GRA Committee, which operated until March 2025, had a focus on governance structures, sU￿Ssion planning, skills audits, the appraisal of Board Members and staff remuneration. Its members were Catherine Arkley (Chair). Holly Dagnall, Paddy Tipping. Marcus Beale, Neil Jones and Briggitte Scammell. Following an Evaluation of Governance the Board approach the establishment of a Nominations and Remuneration (NR) Committee with a narrower remit, to replace the GRA Committee from April 2025. The Framework Community Forum (formedy the Service User Advisory Group) facilitates regular meetings between Board Members, senior staff and service users. It provides feedback both indirectly (through reports to the Board) and directly (with up to two of its representstives entitled to attend Board Meetings at any one time). CORPORATE STRATEGY AND OBJECTIVES Framework's Mission, as set out in its 2022-2027 Corporate Plan is: 'Working to tackle Homelessness, 111-health, Disadvantage and Exclusion, by= Providing holistic. person centred programmes of housing, health, employment & support Challenging systems and influencing their design to deliver integrated seN￿S with better outcomes Preventing homelessness and its (xuses Advocating for Servi￿ users and embedding their experien￿ in our worl( This is to be achieved by providing a range of services resting on four 'pillars' that together give strategic shape to the work of the organisation: Housing We house and support people who are homeless. prevent others from losing their homes and help them to sustain their tenancies, because all need a pla￿ to call their home. Health We offer specialist clinical & treatment ServI￿S to people with various health issues, because physical & emotional wellbeing is fundamental to a stable, independent and fulfilling life. Employment These services, including volunteering, build skills and employability, because people need financial stsbility. a sense of self-worth and control over their fvture. Support and Care Our support and care serVi￿S add to the quality and sustainability of life, nurturing confidence, building esteem and engaging people as part of a community, because this makes us all stronger. Page 5 FRAMEWORK HOUSING ASSOCIATION STRATEGIC REPORT (continued) Statement by the Directors in performance of their statutory duties in accordance with Section 172(1 > of the Companies Act 2006 The Directors (who are also the Board Members) consider that they have acted in good faith, in the way most likely to promote the Suc￿sS of the organisation for the benefit of its members as a whole (having regard to the stakeholders and matters set out in Section 172 (1) (a-f) of the Companies Act (hereinafter referred to as the Act)). The likely consequences of any decision in the long term Framework has a five-year strategic planning cycle, allowing the long-term consequences of decisions to be considered. The Corporate Plan sets out the organisation's strategic direction through the Vision and Mission Statements, Corporate Objectives, Values, Four Pillars and summaries of the Long-Term Financial Plan (LTFP) with its accompanying Strategies. The Annual Plan and Review records progress against the delivery of the Corporate Plan and reports this to the Board. The thirty-year LTFP is reviewed and updated on an annual basis and stress-tested against a range of scenarios and risks. The Financial Resilience Statement sets out the Board's approved mitigation plans and trigger points for these. All of these tools support the Board to reach decisions in the long-term interests of those who use Framework's servI￿s. The interests of the organisation's employees Framework recognises the importance of its employees in the delivery of its Mission and Objectives. Corporate Objective Six ('Valuing our People,) describes how it seeks to recruit and maintain a skilled, motivated, and resilient workforce that embodies its values and prioritises its Servi￿ users. Framework uses the 'lnvestors in People, standard to support the continuing development of its people strategies and employee engagement in order to deliver the Corporate Objectives agreed by the Board, promote the interests of its Servi￿ users and meet their needs. The need to foster the organisation's business relationships with suppliers, customers and others. Framework prioritises the needs of its service users, promotes their interests and measures its success by the difference made to their lives. Service users are engaged in its decision-making processes and in wider consultation to support and drive improvement. At strategic level the relationship between the organisation and those who use its services is fostered by: Board Members attending meetings of the Framework Community Forum and reporting back., The invitation for Community Forum representation at Board Meetings and Board Conference. Joint presentations to the Board by staff & service users. Visits to ServI￿S by Board Members. Framework aims to establish, develop and nurture strong relationships with commissioners and other key stakeholders such as central government departments, elected mayors, combined & local authorities, integrated care & place-based partnerships, the health & social care communities and county police & crime commissioners. Through them it seeks to influence the planning and development of service pathways and ne￿orkS that are responsive to the range of needs presented by current and future service users. In relation to suppliers. Framework has a Procurement Policy setting out the principles and practice of its approach -this is aligned to Corporate Objective Four ('Organisational Strength and Resilience,). The Policy describes how the organisation works with its professional consultants and suppliers, in a spirit of partnership and high business ethics that reflect its Mission and Values. Framework sustains a database of donors and other supporters including former Board Members. staff & service users. Through this is maintains communication by providing periodic updates to individuals, faith-based and other community organisations that have traditionally supported Framework's charitable activity and advocated for its service users. Page 6 FRAMEWORK HOUSING ASSOCIATION STRATEGIC REPORT (continued) The impact of the organisation's operations on the community and environment Framework seeks to make a positive impact in the localities and communities where it operates by providing high quality, 'fit for purpose, accommodation with accompanying complementary services, based on the 'four pillars, approach. We work closely with local and health authorities to implement their strategies for tackling and preventing homelessness, rough sleeping, social exclusion, health inequality and inactivity. The offer can be summarised as providing a safety net for some, a springboard for others and sustsined engagement as needed to enhan￿ service users, contribution to the life of the community. At its heart is an integrated plan comprising elements of housing, health, support, and skills for employment, tailored to individual needs. The desirability of the organisation maintaining a reputation for high standards of business conduct As a Registered Charity and a Provider of Social Housing, Framework seeks to maintain high standards of conduct. The Board carries out annual assessments of its compliance with the Regulator of Social Housing's Standards, the Housing Ombudsman's Complaints Code and the National Housing Federation's Code of Governance. Policies exist to sustain compliance wtth the requirements of the Chartty Commission. Care Quality Commission, Data Protection offi￿ and Health & Safety Executive, with accompanying procedures and controls to ensure adheren￿ to all relevant laws and regulations. Framework is committed to the promotion of equity. diversity. inclusion, human rights, liberal values and the prevention of slavery & human trafficking. The need to act fairly as between members of the oryanisation The organisation's robust approach to governan￿ is set out by 'Govemance in Action., with a commiknent to comply with relevant laws, regulatory standards, and codes. This Key Control Policy supports the integrity of decision making and focuses it primarily on the needs of servi users rather than those of Board members, staff, volunteers or suppliers. Principal decisions In the past financial year, the Board has taken a substantial number of decisions to discharge its responsibilities as listed above. Among those that were material to the strategic priorities of the organisation andl or its key stakeholder groups, were: Implementation of recommendations arising from the In-Depth Assessment (IDA) and subsequent Evaluation of Governan￿. Establishment of the Service Delivery Committee with significant delegated authorities. with an accompanying enhancement of the Performance Assurance Dashboard (PAD). Occupation of Akins House (under the Rough Sleepers Accommodation Programme). the ongoing development of Grove House and the approval of Lee House and Sincil House (a total of 50 new, high-quality units under the Single Homelessness Accommodation Programme). A review and update of the Long-Tenn Financial Plan and supporting strategies aligned to the Objectives, wtth accompanying stress testing, mitigations & triggers to sustain viability. Self-assessments against the RSH Standards. The NHF Code of Conduct and the Housing Ombudsman Complaints Code to gain assuran￿ on our Complian￿ with these requirements. A review of the Equity. Diversity, and Indusion Policy and Action Plan to track progress. including the pr&sentation of more detailed servi￿ User infonnation by service. The Commissioning of research to evaluate the impact of the Lincolnshire Housing-Related Support Partnership, as a Case Study to illustrate the national Importan￿ of supported housing. A review of performance against the Value for Money Strategy. measuring the efficiency and effectiveness of how resources are deployed to meet Servi￿ users, needs. Review, update and approval of the following Key Control Policies in accordan￿ with the normal three-year cycle- Safeguarding Policies for Adults and Children. Digital Strategy, Whistleblowing Policy. Treasury Policy and the new People Strategy. Page 7 FIIAMEWORK HOUSING ASSOCIATION STRATEGIC REPORT (continued) CORPORATE PLANNING Framework's 20221,27 Corporate Plan is entitled 'Structure and Systems,. It argues for joined-up responses to severe and multiple disadvantage, within strategies to tackle rough sleeping, prevent homelessness, promote health, bring new supply to the labour market and enhance the wellbeing of individuals and communities. Leaving aside some isolated geographical pockets and a small number of time-limited pilots, these joined-up responses do not exist. The typical government response is a call for evidence in support of the case which, when produced, is routinely ignored in favour of a failing status quo. Recognising the above, the Corporate Plan attributes the catastrophic rises in homelessness, rough sleeping, inactivity & crime to deficient national strategy and local policy. These negative trends have continued, and in some instance worsened. through the life of the plan. However, 'Structure and Systems, also has internal dimensions. highlights the need not only to change the complex environment through which service users must navigate, but also the manner in which Framework carries out its own functions. These internal aspects include the enhancements that have been made to governance, leadership, financial planning, risk management, culture and service delivery. A priority has been to continue delivering safe and effective services within diminished resources - which effectively means fewer staff. So, whilst continuing to pursue outward-facing opportunities to 'join-up' or complement existing work, Framework is prioritising investment in its own structures and systems to support the modernisation of Its work. We are committed to meeting our statutory, regulatory, and contractual obligations whilst modernising our stock, reducing our carbon emissions and maintaining our financial viability. The headlines of this Strategy were scrutinised during Framework's In-Depth Assessment. The outcome (retention of a G1 1 V2 rating) reflects a strong track record of managing exposure to significant financial and other risks, in the context of tight operating margins. The Board commissioned an external Evaluation of Governance to build on this. Since then, it has restructured the Committees and recruited new Members under its Succession Plan. A strengthened Board is working closely with the Senior Leadership Team to implement the existing Plan and develop the strategic headlines of a new Corporate Plan from April 2027. PRINCIPAL RISKS AND THE OPERATING ENVIRONMENT The Association's Risk Register records its principal risks. These can be summarised as: Governance - failure to establish and maintain an effective Board with consequent loss or damage to commissioners and stakeholders, confidence in Framework. Legal & regulatory compliance - in governance. viability, consumer standards, complaints, health & safety. Servi￿ user participation, diversity, inclusion and data protection. Human resources - failure to deliver the People Strategy. resulting in poor recruitment and retention, inability to compete in the labour market and thus to deliver services. New business, contract and revenue funding - such as the loss of contributing contracts or failure to secure new ones for viable, properly resourced services. Asset management & property development- such as failure to optimise the use of our assets through appropriate development, disposal and re-modelling. Infrastructure & internal services - such as key system failure, the loss of personal data, contractors failing to meet their obligations and disruption to business continuity- Finance & treasury management- potentially affecting covenant compliance. Public relations- such as failure to influence the decisions affecting those we serve. Page 8 FIIAMEWORK HOUSING ASSOCIATION STRATEGIC REPORT (continued) CORPORATE OBJECTIVES AND ACTIVITY DURING THE YEAR Framework's activity in the year to March 2025 was directed towards the achievement of the six Corporate Objectives set out in the 2022-'27 Corporate Plan. These are: 1. Growth 2. Standards 3. System Change and Joined-up Services 4. Organisational Strength and Resilience 5. servi￿ User Participation and Empowerment 6. Valuing our People Each of the six Corporate Objectives is defined below, with summaries of the actions that have been taken to achieve them. Objective 1: Growth This Means: A further increase in the number of people we reach. In the year to March 2022 (the final one covered by the last Corporate Plan) Framework assisted 16.537 separate individuals. In the year to March 2025 (the third of the current plan) it served 19,172. Whilst the increase has not been linear, the long-tenn trend is clear. It reflects growing need, within which the complexity of the presenting need has also grown. The Corporate Plan envisaged broad stability in the pattem and geographical spread of our services. The intention was for growth to be tailored in a way that deepens our offer in existing or contiguous geographical areas. thus enhancing the range of options for servi users. This is challenging to deliver in an uncertain environment where political instability and financial constraints are a (x)ntinuing factor. In practice, some services have grown. others have been re-configured and some have ceased to exist - for Instan￿ due to de- commissioning. A numerical growth target was set for the Housing Pillar which requires capital investment for which provision has to be made within the Long-Term Financial Plan. This is not needed for the (revenue-dependant) Health, Support and Employment Pillars. sin￿ April 2022, Framework has completed 152 new units of high quality, purpose-built supported accommodation. This includes 30 under the Single Homelessness Accommodation Programme (SHAP) that were completed in the year under review. These comprise 15 at Grove House (Nottingham), on land purchased from the Anglican DI0￿Se of Southwell and Nottingham - providing accommodation with intensive support for women at nsk of rough sleeping" and 15 at Sincil House (Lincoln) on the site of a former public house for both men and women with high support needs who would otherwise be sleeping rough. Construction has re￿ntlY begun on a third SHAP scheme, and two other sites are in the pipeline for bids to the Affordable Homes Programme during 20251,26. Taking these into account we expect to reach (and slightly exceed) our tsrget of 200 new homes over the life of the Corporate Plan, ending in March 2027. Grovrth has also occurred in the non-housing pillars. New resources have been secured from the Office for Health Improvement and Disparities (OHID) through Nottingham City and Lincolnshire County Public Health teams, from the Department of Health (DOH) through the Nottinghamshire Integrated Care Board and from the Ministry of Housing, Communities and Local Government (MHCLG) through Changing Futures, to enhance and complement existing work. This has paid for proactive interventions for homeless people (including rough sleepers) with complex needs, both directly through partnerships with other specialist providers. Page 9 FRAMEWORK HOUSING ASSOCIATION STRATEGIC REPORT {continued) Objective 2: Standards This means: Our providing services, with accompanying systems, which are suitable for their intended purposes such as emergency or specialist supported housing, harm reduction, recovery and resettlement. and fit for publication as good practice examples. Service standards have a high profile in the social and affordable housing sectors. Proactive regulation of Consumer Standards by the RSH, the initiation of a Complaint Handling Code by the Housing Ombudsman, 'Awaab's Law, and the proposed Renters, Rights Bill, all reflect this. In the supported housing arena, there's an added dimension of con￿rn about 'rogue' providers who purport to serve vulnerable people using income that is intended for a different purpose, invariably in sub-standard accommodation. Framework's commitment to high standards of service delivery is expressed through its Asset Management and Development Strategy, Quality Assessment Framework, Standard Operating Procedures, Performance Assurance Dashboard and the establishment of its Service Delivery Committee. All of these were either created, or strengthened, in the year under review. Their impact is corroborated by the Tenant Satisfaction (Perception) Survey. now entering its third year. The second, in July 2024, showed that 85 % of the respondents were satisfied with the overall service they re￿iVed a 4 % increase on the previous year. Framework is piloting a version of the TSMS for non-residents - building on the foundation created by former Service User Satisfaction Survey. Central Government has recently consulted on its implementation of the Supported Housing (Regulatory Oversight) Act 2023, and Framework's response is robust. We regard the proposals for further regulation of supported housing as a deliberate and expensive distraction from the central issue - which is the non-resourcing of support. What is needed is a national, ring-fenced programme, as once existed, to fund the provision of housing- related support in a range of settings. Sadly, in its absence, we expect to see further rises in homelessness, rough sleeping and related social problems. The proposed system of licensing, which is complex, resource-intensive and in several respects unworkable, can only exacerbate this further. Notwithstanding this and other threats to existing services. Framework's approach is to deliver to the highest possible standard within the available resources and other constraints. The standards set are specific to their context and communicated to service users with support to highlight any failure to meet them. Where de-commissioning or other resourcing choices embed the likelihood - perhaps the inevitability, of such failure, hard decisions are required - and have been taken. Framework will not initiate, design, amend or continue with a service without reasonable assurance of its capacity to do substantially more good than harm. Growth is not pursued at the expense of standards. Services at Edwin House, The Level, within Nottingham Recovery Network (NRN) and in the Lincolnshire Treatment Pathway continue to be regulated by the Care Quality Commission (CQC), with the overall 'Good' rating maintained. Framework's leadership of NRN supports collaborative work with NHS and third sector partners to research and promote effective approaches to reducing the harm caused by substance misuse and its associated health complications. From 2024125, some of our specialist supported housing services for young people (those aged 16 and 17) have been registered with Ofsted. It remains to be seen what additional costs this will generate, and whether commissioners will cover them sufficiently for these services to remain financially viable. If not, they will be closed. Page 10 FIL4MEWORK HOUSING ASSOCIATION STRATEGIC REPORT (continued) Objective 3: System Change and Joined-up Services This means: Advocating for, planning and implementing System Change. Our definition of this is that it happens when services are designed and delivered around the needs of individuals not the other way round. Those presenting in need should not be expected to re-define their circumstances to fit the available offer. This 'joining-up' of services requires them to be comprehensive and diverse, with no significant gaps. Whilst Framework can 'join-up' some of its services, it can't achieve System Change alone. To do so requires partnership with other statutory and some voluntary, agencies to advocate for service users, promote a learning culture, share expertise and lobby for change. In particular. we are committed to: Participation in strategic planning and provider fora in the localities where we work. Building our capacty for data collection, analysis, thought leadership and research. Using our knowledge, leaming and service data to influence commissioning decisions. Enhancing offers with our fundraised resources, where there is demonstrable need. Contributing to the policy and influencing work of national bodies. Campaigning for and with people who experien￿ Severe & Multiple Disadvantage (SMD). In an environment of scarce resources. this external-facing work can easily be subordinated to the day-to-day issues that face our services - amounting, in many inStan￿S, to a battle for survival. Nonetheless, resources have been found to: Meet with Members of Parliament to make the case for housing-related support. Engage with local authorities to reduce the impact of Housing Benefit changes. Respond to consultations on housing regulation - including of supported housing. + Represent Framework at the MHCLG Ending Rough Sleeping Group, Nottinghamshire Integrated Care Partnership, Nottingham City Adult Safeguarding Board and the NHF Homelessness and Supported Housing Groups. Take a leading role in the Nottingham City Place-Based Partnership (Severe and Multiple Disadvantage Workstream) and the Lincolnshire Supported Housing Advisory Group. Services for rough sleepers, and those who experience Severe and Multiple Disadvantage (SMD) remain at the heart of our work in most areas. Several ServI￿S in this category are funded through central govemment grants, via local authorities. However. there is ongoing Un￿rtaIntY about their future resourcing - itself a systemic problem that needs to be solved. A recent innovation is the combined SMD service, integrating four strategic programmes, around the Nottingham City Rough Sleeper Prevention & Assessment Hub. It demonstrates improved outcomes through shared assessments, consent protocols. care planning and risk management. Framework regards its approach - in tailoring a seamless response around individual needs rather than organisational structures, as an example of good practice. Fundraised income continues to complement and enhan￿ key elements of joined-up service delivery. In 20241.25, allocations were made towards additional staffing for the street outreach team, the operation of the 24-hour rough sleeping hotline, expanded access to the training centre, digital inclusion for service users and a dedicated social worker to help users of our young peoples, services to cope with social and interpersonal challenges. The 'Access to Work, scheme supported individuals who are transitioning from benefits into employment. In addition. fundraised income helped to complete the package of capital funding for the new service at Grove House, enabling the Board to approve it. Page 11 FRAMEWORJ( HOUSING ASSOCIATION STRATEGIC REPORT {continued) Objective 4: Organisational Strength and Resilience This means: Consolidating and valuing the organisation not as an end in itself but as a vehicle for effective seNice delivery. Framework must be well governed and led with effective systems, the resources to fund its operations and the capacity to withstand external shocks. Framework has robust governance, policies, procedures, and reporting protocols to ensure compliance with the requirements of the Regulator of Social Housing (RSH), the Charity Commission, Care Quality Commission, Health & Safety Executive, Information Commissioner, and local commissioners and funders. It has a G1 1 V1 grading from the RSH and an Evaluation of its Governance took place in 2024. Ongoing financial viability is seen as an essential pre-requisite for future service development. Framework's ongoing viability, on reasonable assumptions, is demonstrated by its Long- Term Financial Plan (LTFP). This is periodically updated and stress-tested. It makes provision to invest in strong leadership, asset management, development, training, staff rewards, service user participation and carbon reduction. To continue building Organisational Strength and Resilience Framework is committed to: Targeting a minimum 3.0 % Operating Margin, with a minimum £4.5 million liquidity balance. Holding a list of mitigations (discretionary spend) to cease in response to financial pressure. Further increasing the efficiency of our Treasury Management (reducing the cost of liquidity) Further increasing the real value of salaries as and when resources permit. Investing in technology to facilitate agile working and improve the offer to service users. Identifying new sources of income to further diversify our funding sources. The 20241,25 Operating Surplus of £3.097 million represents a margin of 5.0 % - significantly ex￿edIng the target in the year under review. It compares with £1.748 million {3.1 % ) in 20231,24. Both secured covenant compliance. These positive results were consequent to a sustained, proactive focus among leaders and managers, on income generation, cost reduction, investment for efficiency and service transformation. Achievement of our financial targets was underpinned by better information flows - further development of the management accounts to enhan￿ reporting and analysis at service level. This has provided more transparency on cost recovery, ￿ntral overhead allocation and contribution to margin. The current financial position can be described as one where a relatively strong balance sheet, and reasonable liquidity, offer comfort in the context of small margins and high financial risks. Framework has a degree of resilience to withstand financial pressures. But the environment remains challenging due to a combination of static contract values, cost inflation, rises in the National Living Wage and (most recently) the unexpected increase in Employers National Insurance (ENI) contributions. Whilst ENI had no impact on the results for 20241,25 it is a significant drag on the 20251,26 budget, whose impact will endure. Tough decisions are required year on year, to hold Framework's expenditure within the envelope of available funding. There are many things (for instance in relation to psychologically informed environments, digital inclusion, resettlement and preparation for employment) to say nothing of proper rewards for staff, which simply can't be afforded. Unless government changes its attitude to the resourcing of services for vulnerable people especially housing-related support, the underlying situation will not change for the foreseeable future. Indeed, it is likely to deteriorate further. Page 12 FRAMEWORK HOUSEKG ASSOCIATION STRATEGIC REPORT (continued) Objective S= Service User Participation and Empowerment This means: Putting service users at the front and centre of decision-making. Compliance with the Tenant Involvement and Empowemient Standard is a regulatory requirement. Framework is committed to extending its principles to all service users not just those who live in our homes. This includes those whose voice is constrained by their experience of severe and multiple disadvantage. Part of our role is in empowering them to make, and be responsible for, their own choices this means accepting managed risk and eschewing paternalism wherever possible. To Empower both current and future Service Users we: Make strategic decisions (on the provision, expansion, amendment or cessation of ser￿￿S) according to their interests and needs. Seek to embed servi￿ User Paiticipation in our govemance, management and operations, using both formal and infomial channels to consult with them on proposed changes. Improve Servi￿ users, aC￿sS to infomiation, advice, counselling & digital serVi￿s, promoting and investing in these as a route to seniice transformation. Support willing participants to be visible influencers of commissioning decisions, if ne￿SSary challenging the underlying assumptions from their experienTr. Improve equality of access to services by seeking the removal of barriers caused by unnecessary restrtctions defined by political factors rather than individual need. In March 2024, the Board approved an updated Service User Participation Strategy, which has since guided efforts to strengthen service user involvement across Framework. Subsequent to this, and throughout 2024, the Participation Manager visited a wide range of services across all four 'pillars' to gather insights directly from service users. The feedback received from this has informed the introduction of Involvement Champions. a new Service User Survey (modelled on TSMS) for non-accommodation services, and the rebranding of all participation activities under the banner of 'Framework Community,. This is the way that service users themselves have asked for their activity to be presented. The Framework Community Forum, comprising service user representatives, is meeting regularly with Board Members and senior staff. There is a standing Agenda Item at Board meetings for feedback from the Forum, where its recommendations are fonnally reported and considered. In 2024 and 2025, service users have also contributed to the process of recruitment to replace key Board Members who have had to stand down under the 'six-year' rule. New mechanisms have emerged to promote Servi￿ user Influen￿ on commissioning. in particular, the Expert Citizen Group is helping to shaping the Changing Futures Programme, with indirect benefits for other services across the City of Nottingham. Framework has embedded, and continues to promote volunteering, training, and employment pathways for individuals with lived experience. These include traineeships, apprenticeships, digital engagement, and recruitment to front-line roles both within Framework and with partner providers. In May 2025 the Board again received and approved Framework's annual self-assessment of compliance with the Housing Ombudsman's Complaints Handling Code. a 'lessons leamed, approach continues to be used to drive improvement in this area - for all service users not just residents. Future strategy will continue to be influenced by Framework's values - 'Respond, Respect and Empower,. Support for these, and adherence to them in professional practice, is an attribute that we seek to recruit, nurture and reward in its staff. Page 13 FRAMEWORK HOUSNG ASSOCIATION STRATEGIC REPORT (continued) Objective 6: Valuing our People This means: Investing in the organisational capacity brought by effective leadership and management of a skilled, motivated and resilient workforce. Support is at the heart of Framework's offer to service users - its essence an encounter between people, one of whom helps the other to navigate an event or situation. Framework staff are known for the commitment, dedication and passion imbued in their work. sadly, financial constraints diminish the rewards for these qualities. We are committed to increasing the real value of their pay, as resources allow, and to incentivising loyalty through a positive culture with relevant supervision and training. To acknowledge the Value of our People we: Are improving pay and non-pay rewards to support the recruitment and retention of high- quality staff, relief workers and volunteers. Offer recognition. career development, one-to-one supervision and training opportunities in an emerging culture of innovation, devolved authority and accountability. Have programmes to develop the business acumen. information technology, data collection, analysis and negotiation skills that will equip our workforce to respond to these changes. Facilitate remote working, flexible hours. holiday purchase and other workl life balance initiatives within the constraints of efficient rota management. Promote an Action Plan of equality, diversity and inclusion events, activities and training overseen by the Diversity Leadership Group In September 2024, the Board approved a new People Strategy. It sets out plans to enhance recruitment, retention, staff supervision, training and engagement. These encompass both paid staff and volunteers - including those with lived experien￿. Recognising that people are Framework's greatest asset, the strategy is ambitious within the available resources and financial constraints. In addition, it reinforces the organisation's commitment to creating a positive, inclusive, and supportive working environment for all. The 20251,26 budget for 20251,26 included a 2.50/0 financial envelope for the annual Cost of Living award. Implemented from April 2025, much of the resource was directed towards the implementation of an amended pay structure for front-line delivery roles. Its purpose was to address the growing issue of pay compression issues, and to preserve some role differentials in the context of an above-inflation increase in the National Living Wage (NLW). This necessitated limitation of the increase to 1 % (which is below inflation) for other posts. Future NLW increases will continue to pose this challenge, especially if they aren't matched by uplifts to the value of housing-related support and other labour-intensive contracts. Learning and development (L&D) is a key focus of the People Strategy. Expert advice has informed the creation of a detailed plan to improve the quality, administration, and impact of L&D activities. It embodies a cultural shift towards a learner-led environment, underpinned by stronger engagement from line managers. This work will continue into 20251.26. The Cost-of-Living crisis has impacted on the disposable income of both staff and service users. Through the 'lt Pays to Work. campaign, alongside support with benefits management and budgeting, we are promoting paid employment as route from poverty towards financial independence. The opportunities include roles within Framework itself, where lived experience contributes to the diversity, stability and capacity of the workforce. This also helps to reduce our reliance on external agency staff. Framework is proud to have achieved, and to retain, the 'Gold' standard from Investors in People (IIP). This distinction is held by only 17 % of accredited organisations. Page 14 FRAMEWORK HOUSING ASSOCIATION STRATEGIC REPORT (continued) OTHER ORGANISATIONAL PRIORITIES Work with Rough Sleepers This continues in the Cities of Nottingham, Lincoln and Sheffield and across the County of Nottinghamshire. Whilst core homelessness pathways are contract-funded by the relevant local authority, we work through local partnerships to influence the funding the Government allocates to support Rough Sleepers and respond to the opportunities it brings. When combined with the allocation of fundraised income, Government funding adds specialist roles to existing street outreach teams and funds additional quick-access accommodation together with enhan￿MentS to drug, alcohol & mental health interventions. These allocations have been extended for a further year until March 2026, and it is hoped that some or most will continue beyond that point. If not, their wind-down will have a profound negative impact on Servi￿ users who are not normally prioritised within the core homelessness pathways. Within Framework's response to the Government's consultation on the implementation of the Supported Housing (Regulatory Oversight) Act. there was a strong focus on the impact for rough sleepers. The de-funding of supported housing is the biggest single factor that has driven the rise in rough sleeping over the past fifteen years. The proposed system of licensing will further exacerbate this. Our response argued against any further regulatory changes, until the fundamental issue of resourcing for support has been properly addressed. Treatment and Healthcare Services In April 2024, a new partnership to deliver Substance Misuse treatment serVi￿S across the county of Lincolnshire, was successfully mobilised. It is led by Turning Point with Framework as a specialist sub-contractor, focusing on proactive interventions for homeless people, rough sleepers and those with a history of involvement wth criminal justi￿. The other main partner is Double Impact. with whom we already work successfully in Nottingham. Notwithstanding a demanding timeline, the Lincolnshire Recovery Partnership (LRP) was launched on schedule and has been fully operational for the past year. This collaboration represents a significant step forward in our strategic objective to provide more integrated and co-ordinated responses for individuals experiencing Severe Multiple Disadvantage across Lincolnshire. So far, the LRP has provided structured treatment for over 3,500 individuals - each receiving tailored support through their recovery journey. The combined staff team comprises more than 160 skilled professionals, enabling the partnership to deliver high-quality, person-centred support at scale. They have facilitated more than 1,600 recovery group meetings. fostering peer-led support networks and community resilience. 31 individuals with lived experience have taken on delivery roles within the partnership, reinforcing the value of peer insight when designing and delivering specialist treatment. The positive outcomes include a much better service for supported housing residents. On tender, Framework was successful in securing a contract to provide Mental Health Stabilisation services in Nottingham City, from April 2024. This integrated service, co- produced with Changing Futures with input from our Clinical Psychologists, provides tailored interventions for people experiencing an exacerbation of their mental health symptoms. The initial task is to establish a baseline of stability, on which to build the initial stages of recovery. In its first year, the service received 1,185 referrals, allocating support to over 670 of these proving an effective complement to secondary mental health and social care. Page 15 FRAMEWORK HOUSING ASSOCIATION STRATEGIC REPORT (continued) OTHER ORGANISATIONAL PRIORITIES (Continued) Service Development - Nottingham City Homelessness Pathway The demise of the 'Supporting People, has had a multiplicity of negative impacts. Among them is the loss of arrangements for quality and outcomes monitoring, that ran alongside commissioning. It is now proposed that new National Standards be established to tackle some of the worst practices amongst poor (including some 'rogue') providers. Regrettably, the Government's concern about this encompasses no recognition of the need for a resource the provision of good quality support. In the absence of a programme to do this, protected by an iron-clad ring-fence, the proposed new standards will fail. Framework has attempted to highlight the risks inherent in regulation without resource, so far without success. Despite these and the many other threats to existing services, we are striving to ensure that they operate as effectively as possible for as long as they continue to exist. As part of this, a comprehensive assessment of our Nottingham City Homelessness Service Group was carried out in 20231,24. This culminated in significant enhancements that were implemented in the year under review. The changes included a restructuring of management tiers, the introduction of more sophisticated data measurement tools and the establishment of a robust development plan centred around five core commitments. These were.. Compliance with good practice and organisational standards - ensuring the consistent delivery of high-quality services measured against both statutory and internal benchmarks. A positive and integrated service user experience - the hallmark of which is planned, co- ordinated support that fosters positive outcomes. Empowerment towards sustainable, independent living. Safe, inclusive, and psychologically informed services - embedding these approaches across all elements of the offer. A supportive, empowering environment for competent staff - creating a workplace culture where they are engaged. developed. and empowered to succeed. Year one has already yielded measurable results including better communication, collaboration & accountability: clearer role definitions, operational efficiencies. decreased reliance on agency staffing, reduced voids, increased collection of service charges, faster throughput and other performance improvements. The Service Development programme will continue into 20251,26 and be rolled out to other pathways In Nottingham City and elsewhere. Department for Work and Pensions (DWP) - Risks to Service Users There is a long history of policies and initiatives by the Department for Work and Pensions that are detrimental for vulnerable people. Among these are inconsistencies in the timing of welfare benefit payments, and the DWP'S insistence on making large back payments directly to service users. Much financial exploitation and debt, many drug overdoses and dozens of unexpected deaths have their origins in the DWP'S intransigence. A regrettable consequence of the Supported Housing (Regulatory Oversight) Act is the cover it provides for the DWP to complicate the process of claiming and receiving Housing Benefit. It has urged local authorities to introduce new, onerous and sometimes impenetrable layers to the verification of HB claims by people living in Supported (Exempt) Accommodation. Framework is challenging this wherever possible, and highlighting the negative implications including further rises in homelessness and rough sleeping. Page 16 FRAMEWORK HOUSING ASSOCIATION STRATEGIC REPORT (continued) OTHER ORGANISATIONAL PRIORITIES (Continued) Landlord Health and Safety- Compliance and Performance Summary Framework's Asset Management Strategy prioritises safe, healthy environments for residents and staff, in line with evolving legislation and regulation. A robust suite of policies and procedures supports this work, reviewed every three years or sooner if circumStan￿S ne￿SSItate it. To ensure high standards, most health & safety compliance activity is carried out by specialist external contractors. Framework's Board receives quarterly updates on key Landlord Health & Safety Indicators. Performance in 20241,25 has been strong across all the areas. This is corroborated by internal audits as follows: Water Safety- Substantial Assurance Lift Safety- Substantial Assurance Asbestos - Substantial Assurance Electrical Safety - Moderate Assurance Compliance - Biannual audits of other areas not included in the above These results reflect an effective, proactive approach to health and safety management. Employment and Skills Employment and Skills Training (including opportunities to volunteer) remain an important pillar of Framework's service offer. This reflects our belief in them as powerful catalysts for positive change. Sadly, changes in the way that some of these activities are commissioned have intrOdU￿d much uncertainty around their future. In particular, the transfer of some budgets from the Department forwork and Pensions (DWP) to the East Midlands Combined Authority (EMCCA) has been disruptive. The GROW project continued to operate suc￿SsfUllY in Nottingham City and Newark & Sherwood, supporting individuals furthest from the labour market by building confidence, life skills. and pathways to employment. Funding for the Nottingham element has ceased so. from 20251,26, delivery will continue in Newark & Sherwood only. We are now in the third year of the Individual Placement Support (IPS) pilot, which is hosted by Nottingham Recovery Network. The project has demonstrated the value of employment in recovery from substance misuse, and work is now Unde￿aY with public health partners to trial an adapted model of IPS for people experiencing Severe and Multiple Disadvantage (SMD). It is shaped by service user feedback. We are seeking to embed the principle that'lt Pays to Work. more firmly in support planning. A pilot programme to upskill staff on how the benefit system interacts with the funding of supported housing, was so suc￿Ssful that the fundraised income was allocated to expand it. Year one of the 'Skills Plus and Home Skills, programme, funded by the National Lottery Community Fund, was successfully completed and will now continue until September 2026. This work is supported by corporate partners who have donated over 270 devices and thousands of SIM cards, extending digital access across multiple sites with a focus on those who are ready to move to more independent settings. Two major employment contracts commissioned by the DWP are due to end in December 2025. Despite this un￿rtaintY, over 687 individuals were supported during the year, achieving 362 job starts with challenging targets met. Framework continues to develop a responsive, user-centred employability model so it remains ready to respond to future opportunities, when they appear. Page 17 FRAMEWORK HOUSING ASSOCIATION STRATEGIC REPORT (continued) Supported Housing - Quality Improvement Project In the light of national concern about supported housing standards and the risk of badly targeted regulatory responses, Framework has an internal programme to strengthen the 'support' component of its housing offer. It reflects the decline and progressive de-funding of supported housing over the past fifteen years, with the dismantling of structures and systems to promote improvement and monitor outcomes. The proposed new licensing system does not address these issues. It would be complex and expensive to administer. the accompanying 'standards' seem designed to pigeon-hole residents into super-imposed categories and withdraw services from those who need them the most. Framework's Quality Improvement Project is designed to pull services in the opposite direction to that proposed by central government. It aims to include rather than exclude, challenge local authority 'gatekeeping', avoid 'cherry picking, of referrals and tailor interventions flexibly to individual need. The project takes into account the absence of adequate (or even of any) resources to fund support, the ongoing genericisation of services and the limited rewards for front-line staff. Due to the rising needs profile among those referred and presenting to supported housing services, it encompasses the necessity to strike a balance between intensive management (stopping bad things from happening) and support (encouraging and enabling positive things to happen). The Quality Improvement Project has developed new Standard Operating Procedures (SOP) for staff working in accommodation-based services. The first of these, for services with 24-hour staffing cover, fonns a template for those to be used in other contexts. The SOP modernises and rationalises the approach that Framework requires to support planning, record keeping, supervision. training, handover, resettlement work and locality management. It is accompanied by detailed guidance and a self-audit tool, modelled on the former Quality Assessment Framework (as used under 'Supporting People.), which managers and staff can use to guide the development of their services. Staff feedback on the first SOP is overwhelmingly positive, emphasising the confidence it has brought in the quality, effectiveness and safety of their work. The development of SOPS for street outreach services and dispersed accommodation is now underway - both are scheduled for implementation during the twelve months to March 2026. Supported Housing - Implications and Regulation and Licensing The government's approach to the future of supported housing is embodied in the Supported Housing (Regulatory Oversight) Act 2023, and the consultation on its implementation that closed on 15th May 2025. Aspects of the legislation for instance the establishment of a new National Advisory Panel for supported housing (which is delayed) and the requirement for local authorities to create strategies for it (which is already supposed to happen) are welcome. Unfortunately, neither the Act nor the consultation document indicate an understanding by government that this is essentially a problem of strategy and resourcing, not regulation. The Ministerial Foreword states,, Many providers offer safe and supportive environments for their residents, but a lack of effective regulation......has allowed unscnipulous and exploitative actors into the market,. The best way to eliminate substandard services run by bad actors is to commission better ones through responsible providers. The reason this doesn't happen is not a lack of regulation. It is poverty of both strategy and resources - especially in those localities where deprivation, and consequently the need for good quality supported housing, is greatest. In the absence of a national, ring-fenced programme to fund support, the complexity of licensing and the cost of its accompanying bureaucracy, will cause services to close. Page 18 FRAMEWORK HOus￿G ASSOCIATION STRATEGIC REPORT (continued) Consolidation Strategy This describes a plan to replace 80 % of Framework's inherited (and frequently dispersed) shared housing units with self-contained provision. By March 2025 the number of shared units was 76 (18 % ) lower than in April 2022, with 75 new self-contained units replacing them. The total number of shared units was actually eight more than in March 2024 - this reflects an increase in our contracted provision for Unaccompanied Asylum-seeking Children (USAC) from 32 to 48. For social, Se￿1￿ capacty and financial reasons the commissioners of supported housing for this group specify a preferen￿ for shared units. Bids to the Affordable Housing Programme are planned for the development of two pipeline sites (one in Nottingham and other in Lincoln) that would provide another thirty units by March 2027. If Suc￿sSfUl, these may facilitate further hand backs of shared housing. Service User Numbers In the year to March 2025 Framework assisted 19,172 individuals. 2,543 of these lived in its supported housing, 9,281 received health interventions, 5,746 used community-based support and 1.602 accessed education, training or employment (including opportunities to volunteer). This is a small decrease of 1.9 % on the total for the previous year (19,552). The number rose in both the housing {+247) and health (+951) pillars - the latter being mainly attributable to the new substance misuse treatment service in Lincolnshire. The reductions in the support and employment pillars are due to reducing contract capacities and values - an ongoing trend. Framework will continue to argue against this direction of travel, for the integrated and perS0n-￿ntred services that evidence shows wll produce better outcomes. Service Delivery Committee (SDC) The SDC was established from September 2024, to strengthen the governan￿ of Framework's front-line activities. In tts early months the Committee received and considered detailed presentations on the Qualty Assessment Framework, the Standard Operating Procedure for (24-hour) supported housing, and analysis of Serious and Untoward Incidents. The Committee has also undertaken an in-depth review of Complaints Reporting and Learning, and approved an enhanced version of the performan￿ Assuran￿ Dashboard. It has agreed a comprehensive workplan for 20241,25, its first full year. Leadership Academy During the year. sixteen staff members successfully completed the Leadership Academy Programme. This embodies Framework's commitment to sUc￿Ssion planning, staff development, and the intemal progression of leaders. The programme continues to strengthen and evofve, incorporating feedback and leaming from each new cohort. The intake of new participants will be paused for a year, partly to enable a focus on consolidating the development of individuals from the past two cohorts. This is seen as the best way to maximise the benefits of the investment made to date, both for the participants and for Framework as a whole. Academy 'graduates' will be supported to apply their leaming by working alongside experienced managers on strategic projects that contribute to the delivery of Framework's Corporate Objectives. Examples include pilots to encourage and in￿ntIVEse supported housing residents into paid employment, to reduce the level and duration of voids, to increase the rate of HB-ineligible charge collection and to support the participation of service users in governance and other decision-making. Page 19 FRAMEWORK HOUSING ASSOCIATION STRATEGIC REPORT (continued) Equity, Diversity and Inclusion The Board and Senior Leadership Team continue to foster a culture that celebrates difference, promotes respect, and values the unique contributions of all. Framework considers itself to be part of a Civil Society that values Equity, Diversity and Inclusion (EDI) as part of a healthy, vibrant community. The 2024 Board Conference included a dedicated session on EDI whose purpose was to refresh the Board's own understanding of its legal and moral responsibilities in this regard. This will better enable it to support and scrutinise the organisation-wide approach. The session included an exercise that supported participants to recall their experiences of both privilege and unfair discrimination. The strands of reflection on this were brought together by a small Task Group, culminating in a report to the March 2025 Board Meeting. Among the decisions was the replacement of the con￿pt of 'equality' with that of 'equity' in the organisation's EDI Policy, Action Plan and other decision making. Consideration was also given to the question of whether 'class' (or social mobility) should be added to the list of protected characteristics around which Framework gathers and analyses demographic and performan￿ information. The decision taken was not to do so, pending the outcome of wider societal debate on the issue. The Board re￿iVed its annual update on the implementation of Framework's EDI Action Plan, noting the significant further progress made across all five of its strategic objectives. The Diversity Leadership Group (DLG) and Anti-Racism Group have both sustained their work plans - in the latter case this included a series of 'in-person' listening events in the summer of 2024, with a focus on the priorities, aspirations and views of employees from ethnic minority backgrounds. The responses are contributing to the development of the organisation's EDI agenda. Anti-racism and other diversity training remains within the core offer. At service level, Framework continues to house and support a growing number of Unaccompanied Asylum-seeking Children (UASC) - these numbered 48 at the end of March 2025. The political dialogue around asylum complicates this work in a way that ne￿sSitateS our offering additional protection for this group of vulnerable young people- for instance from unwanted media attention, sometimes based on prejudice or the exploitation of it. The reality is that most UASCS are highly motivated to build a safe, sustainable life in which they contribute to social and economic life. We are proud to support them in realising their aspiration to do so. Framework is enhancing it systems to collect more granular data about the profile of its service users by protected characteristics, and any pattems that can be discerned about their experience of services or the outcomes they achieve. Informed by this information we are reviewing the Equity, Diversity and Inclusion Policy in accordan￿ with the three-year cycle. The updated version was due for presentation for the Board's approval, in May 2025. Gender Pay Gap At the end of the reporting year, two-thirds of Framework's Workfor￿ were female. The organisation's mean gender pay gap reduced to 5.32 % (from 6.29 % in 2024) compared to a national average of 9.4 % . The median Gender Pay Gap remained at o % {the same as in 2024) compared to a national average of 7 %. Framework's People Strategy promotes transparency, fairness, and equity in pay across the organisation. Page 20 FRAMEWORK HOUSING ASSOCIATION STRATEGIC REPORT (continued) VALUE FOR MONEY STATEMENT Frameworf( is strongly committed to achieving Value for Money (Vfm) in all its activity. Further success in bidding for, and winning, service contracts depends on our ability to do 'more for less, in a continuing climate of constraint in public (and especially local authority) funding. In some instances, viable bids are impossible within the financial parameters agreed by the Board to protect the organisation, so leaders can't proceed with them. In other instances, they may decide not to do so because the margins are too small or the risks too high. The positive impact of Vfm projects undertaken in the past year, on the 20241,25 financial out-turn, is estimated at £964k. This eX￿edS our target. The initiatives include: Voids Reduction Project Increasing the Recovery of HB-Ineligible servi￿ Charges. Utilisation of e-leaming, apprenti￿Ship levy and other efficiencies in training & developmenL Fundraising from corporate partners. some of whose 'in-kind' donations replace cash spend. Better Treasury Management - including the use of Revolving Credit Facilities. Supplier contract (including telephony) re-procurement, with accompanying re-configuration, robust negotiations andl or market testing. workfor￿ development to redu￿ relian￿ on agency staff and external specialisms. Active management of furniture, fitting and equipment costs through standardisation, recycling, fundraising and repair. 'Added value, offers when re-negotiating contracts and grant funding with commissioners. In addition, significant capital grants were secured through SHAP to support new development projects. These are planned to fill the gaps in existing services, thus increasing the effectiveness of the overall offer to homeless and vulnerable people. Framework reports annually on the seven Value for Money (Vfm) metrics set out by the Regulator of Social Housing in its Value for Money Standard. The figures in the table below have been calculated in accordance wth the Vfm standard (technical note) and are presented alongside their previous year comparators: Description Framework 2025r26 (Budget) 5.38Yo Framework 20241.25 Framework 20231,24 Social Hsg Median 20231,24 Measure Reinvestment by Cost 6.480/0 4.94Yo 7.70. New supply delivered by Units Gearing EBITDA-MRI Snterest Cover 4.030/. 0.640/. 1.720/0 1.40% -0.64Vo 0.340 5.63 % 638.490 261.320 Headline Social Housing Cost per Unit a) Operating Margin on Social Housing b) Operating Margin Overall Retum on Capital Employed £29.8k £29.4k £29.5k £5.1k 4.880/0 2.160/0 3.92 /0 20.40 % 5.000/0 2.16% 5.00% 2.130/0 2.800/0 Standard Metrics 1 (Reinvestment by Cost) is sensitive to the actual level of development within the financial year. Framework's development activity is dependent on the availability of capital funding and suitable sites, both of which change from year to year. In some years there may be no development at all. Standard Metric 2 (New Supply) is InflUen￿d by the same factors and by actual dates when new units become occupied. Page 21 FRAMEWORK HOUSING ASSOCIATION STRATEGIC REPORT (continued) Standard Metric 3 (Gearing) is low compared to many housing associations. This is because the primary constraints on our housing development are the availability of capital grants at levels sufficient to deliver viable schemes, and of ongoing revenue funding. Both of these are drivers of the operating margin. By contrast, the availability of loans is less constrained it would be possible to borrow more and thus develop more quickly. However, the risks involved in doing so are higher than the Board can tolerate given the margins on our support contracts. Note that due to the timing of capital grant receipts and associated expenditure the gearing metric is forecast to turn negative by the end of March 2026, before rising to 4.47 % twelve months later. The above-average cover reported by Metric 4 (EBITDA) reflects both the level of gearing and the low interest rates on some of our existing loans. As indicated by the forecast for 20251,26 this number is very sensitive to changes in the operating margin. Standard Metric 5 (Headline Social Housing Cost per Unit) is significantly raised by the inclusion of Intensive Housing Management and (primarily staff-related) support costs. Framework has twenty-eight separate locations where a twenty-four-hour staffing presence is required on 365 days per annum. 5.5 full time equivalent staff are needed to maintain a single person duty rota for 168 hours per week. In practice the minimum requirement is usually a presence of three or more staff in daytime hours, and a minimum of two overnight. In addition to these 'core' housing services our dispersed (or 'move-on) units also require more visiting staff than mainstream social housing. These and other factors (the higher turnover of residents, contract clauses that artificially increase voids and greater wear & tear on buildings) are all upward drivers of unit costs. whose impact is greater at a time of salary and other cost inflation. Standard Metrics 6a) and 6b) (Operating Margins) both show an increase in the overall margin compared to previous years. This reflects the focused work that has been done on income maximisation and efficiency. Despite our ongoing target, which is to sustain a minimum Operating Margin of 3 % ultimately rising to 4 % (whilst keeping serVI￿S safe and effective) tho Board is not expecting this to happen in 20251,26. Indeed, the latest Long-Term Financial Plan projection does not show us reaching this figure again until 2038 - after which it is sustained. The ongoing impact of static contract values in an environment of cost inflation is now exacerbated by rises in the National Living Wage and - most recently, in Employers, National Insurance contributions. The need for a national, ring-fenced programme to resource the provision of support, has never been greater. Until it retums the viability of supported housing and related services will continue to be marginal, at best. Notwithstanding this ongoing challenge, our aspiration remains that the identification of new income streams combined with an enhanced Fundraising Strategy and further efficiencies both in services and the central office, will enable us to overcome it. The ideal is to keep services safe and effective whilst reaching a minimum 3.0 % margin. It seems likely that this will continue to happen in some years, but not others. Standard Metric 7 (Return on Capital Employed) reflects the same underlying factors as the operating margin. The strong performance reported for the year under review should be regarded as unusual - and unlikely to be repeated in 20251,26 and beyond. Framework's Additional VFM Metrics Framework reports on its own set of Vfm metrics to complement the standard ones. The 20241,25 figures are presented overleaf, alongside comparative data for the previous year and forecasts for 20251.26 derived from the budget that the Board has approved. Page 22 FIL4MEWORK HOUSING ASSOCIATION STRATEGIC REPORT (continued) The purpose of these additional metrics is to assist the Board in assessing how efficiently the organisation is being run, the impact of changes to services and of measures to enhan efficiency. They also illustrate the variation in cost of providing services per individual and (to a lesser extent) per hour, both between and within the pillars. This arises because the specialism of the staff who deliver a service varies according to its nature. Framework Vfm Measure Budget 20251,26 (£) 2024r25 (£) 2023r24 {£) Cost per Service User by Pillar: Housing Health Employment Support Cost per Hour of Service by Pillar. Housing Health Employment Support Central Cost as a /0 of the Total 13,675 1,653 1,020 1,305 13,237 1,652 961 1,432 13,362 1,565 741 1,479 39.31 42.36 27.02 26.24 49.76 41.24 23.04 24.09 41.13 43.37 23.37 25.82 20.01° 22.42 /0 21.820 The housing metric (in terms of cost per service user, rather than per hour) is sensitive to small changes in the throughput to and from direct access and similar services. These residents are the sub-set of our service users with the highest and most complex needs. Increased staffing and other costs due to inflationary pressures in areas such as energy, insurance and maintenance all impact on this metric. The new properties developed or acquired as part of the Single Homelessness Accommodation Programme (SGHAP) and the Rough Sleepers Accommodation Programme {RSAP) have accompanying revenue funding to support the resettlement process - thus increasing the housing cost metric on a 'per service userf basis whilst helping to reduce the amount 'per hour,. The health, employment and support interventions encompass a broader range of people so their cost (per person) is lower than for housing. Against this, the 'health' pillar requires more highly paid professionals (including nurses) so the cost (both per service user and per hour) is higher than for 'employment' and 'support'. 2024 saw further changes in the specifications and delivery mechanisms of support and employment services; both have helped to control the cost (per service user) whilst increasing the amount (per hour). Value for Money in the coming year The Value for Money (Vfm) Strategy is a key element of Framework's Long-Term Financial Plan, through which we hope to sustain services for as many individuals as possible even in a challenging environment. It describes the quest for an optimal balance bebNeen high productivity, controlled costs and successful outcomes for Servi￿ users. It sets targets in these and other areas and describes the actions that Framework is taking to achieve them. These include annual reporting of the Standard Vfm Metrics and the use of additional ones specific to Framework. The year-on-year comparisons allow the Board to monitor the success of the Strategy in releasing resources for front-line service delivery. Framework's Value for Money Strategy was last updated in 2022 alongside the Corporate Plan. as part of the strategic planning cycle. The next review will take place to support the new Corporate Plan from April 2027. In the meantime Board receives an annual update on delivery against the Strategy. Page 23 FRAMEWORK HOUSING ASSOCIATION STRATEGIC REPORT (continued) The approved budget for 20251,26 includes expenditure levels with an increased efficiency target of £1,161 million. Our plans to realise it focus on the maximisation of income through proactive void management, enhancements in the collection of HB-ineligible service charges and close working with commissioners on contract values and performance. Reductions in agency costs are targeted through investment in our workforce and processes. Investment in technology continues to support agile working, process automation and the effectiveness of systems. Further efficiencies are planned and expected as a result of the Asset Management Strategy and the re-procurement of major supplies. Another dimension of Vfm is the enhancement of our service offer at a time when local authority and other statutory funding is under renewed pressure despite increased and more complex presenting needs. This is supported by the Fundraising Strategy, to resource the bespoke design of services wherever possible, around the needs of their users. Significant aspects of this 'joined-up' offer include: Basic items (food, toiletries and clothing) for those in immediate need. Our practi￿ in PIE (Psychologically Informed Environments) & TIC (Trauma Informed Care). Outreach to Substan￿ misusers and people with physical & mental health issues. facilitating rapid aC￿sS to specialist treatment. The availability of clinical psychologists. nursing and social work professionals. Support into employment- including training and preparation for interviews. An 'Access to Work, fijnd to assist those caught by the benefits trap. Rent deposits, guarantees, fumiture and equipment for those establishing a tenancy. PENSIONS For most staff our pension contributions are on a 'defined contribution. basis complying with the auto-enrolment law but uncompetitive with the 'defined benefit. (final salary) schemes still seen in the public sector. This is a factor in the non-retention of employees who are attracted to better paid roles with local authorities and other statutory bodies, which also carry membership of better-resourced pensions. A small number of Framework staff were inherited via TUPE with a right to remain in the Local Government Pension Scheme - hence the annual pension adjustment to the accounts based on actuary advice. PAY RATIOS The Board is committed to reporting on the ratio between the highest and lowest paid Framework employees. In 20241.25 this was 5.0 (20231,24: 5.1). The ratio between the highest salary and the median was 4.2 (20231,24 4.4). A recent benchmarking exercise showed that in the wider third sector, the average ratio between the highest and the lowest salary is 7.0, and that between the highest and the median salary is 5.0. STREAMLINED ENERGY AND CARBON REPORTING ('SECR') Framework's estimated carbon dioxide emissions (C02e) for the year to March 2025, were 28 tonnes lower than for the previous year. Whilst the usage of gas has increased, that of electricity and fuel for transport have both decreased. This is attributable to.. Changes in the configuration of properties The positive impact of our energy reduction campaign Greater frequency of meter readings, including the installation of smart meters. A decrease in staff travel due to changes in service structures. Page 24 FRAMEWORK HOUSING ASSOCIATION STRATEGIC REPORT (continued) The Asset Management Strategy approved in 2022 has been updated to increase investment in carbon emission reduction. At the end of the financial year there were ninety- six Framework properties that fell below an Energy Performan￿ Certificate (EPC) 'C' rating. The plan is to reduce this number to zero (improvement, disposal and replacement) over the next four years, The focus of remediation work will be to optimise the thermal efficiency of the extemal fabric, and combine this with efficient heating & low energy lighting. The same principles are embedded in Framework's development programme {both new-build and refurbishments). Our plans are designed to meet the recommendation by the UK Committee on Climate Change that a carbon emission position of 'net zero, must be reached by 2050. To support progress towards this target, significant upgrades are taking place to modemise heating systems. These include the retrofitting of High Heat Retention Storage Heaters at Blakeney House in Nottingham, a similar upgrade to the electric heating at Potter Street and better use of technology to optimise energy use during off-peak tariff periods. In addition a total of seventeen (A+) energy-rated gas boilers have been installed across various service locations, further enhancing the energy performance of Framework's housing stock. A funding application has been submitted to the Midlands Net Zero Hub under the Warm Homes Fund - Wave 3. It seeks a grant of £470,000 to be match-funded by Framework, enabling energy efficiency improvement work on fifty-two residential units over a three-year period, with the objective of achieving a minimum EPC rating of 'C' for each. All new developments are compliant, on completion, with the latest building regulations. They incorporate solar photovoltaic (PV) systems to support the on-site generation of renewable energy. The rollout of electric vehicle (EV) charging infrastructure continues, with facilities at the Central Offi￿, Faraday Court and (shortly) at Grove House. The medium-term plan is to extend EV charging to all locations with on-site parking, wherever it is feasible. Framework's energy reduction campaign continued into 20241,25. It is supported by enhanced data on energy usage at property level, informing targeted communication and focused action on those sites where the highest usage is recorded. Where feasible we continue to repla￿ payment meters (which are expensive for residents) with 'Smart' meters, including in our leasehold properties. Residents who wish to establish their own schemes to reduce energy consumption are offered encouragement and support to do so. The table below provides a summary of our energy use during the year in accordan￿ with the requirements of the Streamlined Energy and Carbon Reporting legislation. The associated greenhouse gas emissions, showing a reduction of 28 tonnes compare to last year, have been calculated using the UK Government's GHG Conversion Factors for Company Reporting. Note that as in previous years the figures include no adjustment for additional carbon that may be produced due to staff working from home. Measure 20241,25 20231,24 UK Energy Use in kwh {1) 11,174,326 10,851,363 Associated Greenhouse gas emissions Tonnes CO2 equivalent 2,181.48 2,210.05 Intensity ratio Emissions per Property 1.69 (1) UK energy use covers all Framework activities. Page 25 FRAMEWORK HOUSING ASSOCIATION STRATEGIC REPORT (continued) FINANCIAL REVIEW OF THE YEAR Financial results Framework's turnover in 20241,25 was £61.94 million, an increase of £4.68m on the comparable figure for 20231,24 which was £57.26m. A component of the increase was higher receipts from rent and service charges, due partly to the annual uprating but also to new properties coming into management. Another source of new income was from central Government for enhan￿MentS to substance misuse and mental health services - specifically for rough sleepers and those at risk of sleeping rough. The headline operating surplus was £3.1 million (a 5.00 % margin), this being an increase of £1.35 million on the 20231,24 figure (£1.75m). In the year under review the out-turn exceeds the 3.0 % (rising to 4.0 % ) target in the Corporate Plan. Due to rises in the National Living Wage (NLW) and Employers National Insurance (ENI) we expect the outcome for next year (20241.25) to fall significantly below the plan target. The 20241,25 out-turn constitutes the baseline for an updated Long-Term Financial Plan, which is also informed by the Asset Management and Development Strategy. Provision is made for re-investment in our housing assets to sustain their quality, safety, energy efFiciency, lending and book values. A comprehensive Asset and Liability Register is maintained. Due to continuing pressures on both income and expenditure, there remains a strong organisational focus on managing the risks to Framework's financial position. In particular, the combination of static / redU￿d contract values and an organisational aspiration to increase the real value of salaries - not least to aid recruitment and retention, is an increasing pressure. During 20241.25 we have embedded procedures to reduce losses from voids, maximise the collection of HB-ineligible service charges, redu￿ the use of agency staff, utilise new technology and further rationalise the design and delivery of services. These measures at the front-line are accompanied by further steps to drive efficiency in 'back office, functions through reductions in the cost of office furniture, training and professional fees. We have achieved a substantial reduction in the cost of maintaining liquidity by negotiating Revolving Credit Facilities and other changes in treasury management Reserves Reserves are retained at a level that allows Framework to continue providing and further developing its services, whilst managing the risks associated with future growth plans. The budget and thirty-year forecast are reviewed and re-set annually to achieve this. After deduction of grant liabilities Framework had net assets of £34.04 million at 31 st March 2025 (2024: £31.11 m). The majority of these {£30.48m in 2025) comprise the equity in fixed assets (nearly all of which is housing stock) leaving £3.56 million of free reserves. This is just 6.0 % of operating expenditure but liquidity is supported by the availability of loans and Revolving Credit Facilities, both managed tightly to control the cost of resourcing the development programme as and when funds are needed to deliver it. Impairment The Board has considered whether any impairment of assets should take place. After reviewing the potential indicators including empty properties, any increases in voids or falls in rental income it concluded that there is no need for a write down of any carrying value. Page 26 FRAMEWORK HOUSING ASSOCIATION STRATEGIC REPORT {continued} FINANCIAL REVIEW OF THE YEAR (continued) Capital Structure and Treasury Policy Framework's long-term borrowings are 20 to 25-year loans, at a combination of fixed and variable interest rates, from Natwest and Charity Bank. The value of loans outstanding at 31st March 2025 has been redu￿d, compared to 2024, by the establishment of an additional Revolving Credit Facility (RCF) worth £4.6 million (undrawn to date) and by loan repayments. The role of RCFS in the Treasury Strategy is to replace existing variable rate borrowing to sustain liquidity whilst minimising its cost. This was a significant factor in the improved financial out-turn for 20241,25. In addition, our future growth plans will be part- funded by lending from a new counterparty- CAF Bank, which was finalised during the year. Cash-flow remains strong with all banking covenants met and the projections show continued complian￿. The year-end cash balan￿S were slightly below LTFP forecasts due the timing of development schemes and their accompanying grants. Our reserves will continue to be invested primarily in asset management and property development during 20251,26. Drawing on specialist professional advi￿, the Board has updated the Treasury strategy to inform future investment and financing decisions. Going Concern After making appropriate enquiries the Board believes that Framework has sufficient funding in pla￿. and expects the Association to be compliant with its debt covenants even in the event of severe but plausible downside scenarios. The Board is confident that Framework will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements. Therefore, the statements have been prepared on a 'Going Concem, basis. INTERNAL CONTROLS ASSURANCE The Board is responsible for ensuring that Framework has adequate systems in place to deliver effective and efficient operations, reliable intemal and external reporting, and compliance with applicable laws & regulations and internal policies. The existence of such adequate systems should mean that the most significant risks to the achievement of the Association's objectives are recognised, managed and minimised. Acknowledging that no system can eliminate all risk. the intemal controls must provide reasonable assurance of the identification and effective management of the major risks. The Board has again considered and updated its Risk Appetite Statement, in the light of which the Senior Leadership Team periodically reviews the Risk Register and Heat Map. The outcomes inform oversight of risk identification and management by the Audit and Risk Management (ARM) Committee. Any ne￿SSary steps arising from this are enacted directly within the authortty of the Committee or senior leaders, or recommended to the Board. Page 27 FRAMEWORK HOUSING ASSOCIATION STRATEGIC REPORT (continued) INTERNAL CONTROLS ASSURANCE (continued) The internal controls framework has been summarised and analysed on a 'Three lines of Defen￿, model. The following sources of assurance were considered by the Board in reaching its conclusion on the adequacy of the internal control framework: Risk Management Policy in place with active monitoring of the Risk Register by the Audit and Risk Management (ARM) Committee Internal management oversight from Framework's Senior Leadership Team Regular Review of Key Control Policies overseen by the Corporate Leadership Team Performance Assurance Dashboard (PAD) and the reporting of Key Performance Indicators both to the Service Delivery Committee and the Board Quality Assurance Framework (QAF) used by all services Standard Operating Procedure (SOP) used by core accommodation-based services with adaptations now in development for other services Reporting, monitoring and analysis of Serious and Untoward Incidents (Suls) Service User Involvement and Feedback Health & Safety Management Systems External Quality Management Accreditations (including Cyber Essentials and specialist reviews for Information Security Management and Health & Safety) Internal Audit Programme delivered by Mazars and External Audit by Beever & Struthers Regulator of Social Housing rating G11 V2 (March 2024) with annual self-assessment against the Standards Annual self-assessments against the National Housing Federation Code of Governance and the Housing Ombudsman's Complaint Handling Code Fraud Policy and Whistleblowing Policy At its meeting on 15th May 2025, the Board considered the effectiveness of Framework's internal control systems in managing the most significant risks to the delivery of the Association's Corporate Objectives. It affirmed its satisfaction that: There is sufficient evidence to confirm that adequate systems of internal control existed throughout the 20241,25 financial year and that these systems remain in operation. These systems are aligned to an ongoing process for the management of the most significant risks faced by the Association- They provide reasonable assurance that the financial and operational information produced by the Association is reliable, and that its assets and interests are safeguarded. There are no weaknesses in the controls that are sufficiently serious to Cause a mis- statement or material loss that would require disclosure in the financial statements. Fraud Management Framework has a Code of Conduct and other policies designed to reduce the risk of fraud in relation to the activities of Board Members, management and staff. The Association complies with relevant regulatory requirements in this respect. A register is maintained of all actual and attempted frauds, and this is presented annually to the Board. The Chief Executive is required to bring to the Board's attention, any significantfraud that may occur during the year. Page 28 FRAMEWORK HOUSING ASSOCIATION STRATEGIC REPORT (continued) Self-Appraisal by the Board and Committees The Board and its Committees self-appraise their own performance and Framework's compliance with the legal and regulatory frameworks in which it operates. This is supported by a Protocol on Regulatory Reporting, and by the Internal Controls Assurance Register that provides a check on compliance, monitored by the Audit and Risk Management Committee. PUBLIC BENEFIT AND FUNDRAISING ACTIVITIES As a Registered Charity, Framework is subject to the provisions of the Charities Acts 2011 and 2016. These create an obligation to demonstrate explicitly that the organisation's aims are for the public benefit. The Board is satisfied that by providing services to homeless, vulnerable and excluded people in furtherance of its charitable objects as described above, Framework is complying with its public benefit duty. Framework raises funds directly from the public to resource aspects of its activity that aren't covered from statutory sources. This work is carried out by a specialist team of salaried employees, supported by volunteers. Third paty professional fundraisers are not involved. Framework is registered with the Fundraising Regulator and continues to comply fully with its Fundraising Promise. No complaints were received about fundraising activity during the year. To protect vulnerable people and others Framework does not employ cold calling for fundraising, nor are supporters approached more than three times per annum. Targeted 'asks' are restricted to those who have already indicated their support for the organisation. Approved by the Board on 17th July 2025 and signed on its behalf by= Ruth Hawkins (Chair) Page 29 FRAMEWORK HOUSING ASSOCIATION BOARD REPORT BOARD MEMBERSHIP The members below, who are considered directors for Company Law purposes, have served in office from 1 st April 2024 to the date of this report except where otherwise indicated. Ruth Hawkins Chair Louise Harris Chair of Audit and Risk Management Committee Catherine Arkley Chair of Governance, Remuneration & Appraisal Committee Marcus Beale Appointed as Chair of the Service Delivery Committee (12.09.2025) Tom Jackson Appointed 01.01.2025 Jane Bathea Appointed 01.01.2025 Holly Dagnall Alan Davies Rob Main Brigitte Scammell Neil Jones Paddy Tipping Sheona MacLeod STATEMENT OF DIRECTORS, RESPONSIBILITIES IN RESPECT OF THE STRATEGIC REPORT, THE BOARD REPORT, AND THE FINANCIAL STATEMENTS The directors are responsible for preparing the Strategic Report, the Directors Report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with UK Accounting Standards and applicable law (UK Generally AC￿pted Accounting Practice), FRS 102 the Financial Reporting Standard applicable in the UK and Republic of Ireland. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company, and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to.. select suitable accounting policies and then apply them consistently; make judgements and estimates that are reasonable and prudent. state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements. assess the company's ability to continue as a going concern. disclosing, as applicable, matters related to going concern. and use the going concern basis of accounting unless they intend either to liquidate the company or to cease operations, or have no realistic alternative but to do so. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the association's transactions, to disclose with reasonable accuracy at any time the financial position of the association and enable them to ensure that the financial statements comply with the: Companies Act 2006 Housing and Regeneration Act 2008 and Accounting Direction for Private Registered Providers of Social Housing 2022. Directors are responsible for internal control as they determine is necessary, enabling the preparation of financial statements that are free from material misstatement, whether due to fraud or error. They have general responsibility for taking such steps as are reasonably open to them to safeguard the association's assets and to prevent and detect fraud and other irregularities. Page 30 FRAMEWORK HOUSING ASSOCIATION BOARD REPORT (continued) DIRECTORS, INDEMNITY Appropriate Directors, and Officers, Liability Insurance cover is in place in respect of all the Association's directors. POLITICAL DONATIONS AND EXPENDITURE No political donations were made in the year ended 31st March 2025 (2024- £ nil) and there was no other expenditure on political activity in the year (2024 - £ nil). EMPLOYMENT Framework aspires to retain a diverse workforce with the skills and understanding to achieve its goals by the provision of quality services responsive to a range of individual needs. At 31 st March 2025. 11.90 % of the workforce was registered as disabled (2024- 12.49 % ). On the same date 23.02 % of the workforce was defined as Black, Asian, Minority Ethnic and Refugee (BAMER) (2024 - 21.35 % ). When calculating these statistics. the 10.05 % of respondents who chose not to share this information are included in the total denominator but excluded from the numerator categories reported above. Framework is committed to involving its employees in the planning and development of ServI￿S through staff consultation, employee surdeys. infomiation-sharing and staff communication. The Staff Council. meeting six times per annum, is a formal structure through which leadors consult with elected employees and trade union representatives to infonm them of, and discuss, changes affecting the organisation and its employees. Direct consultation occurs wherever there are changes that fundamentally affect the work of staff. FINANCIAL INSTRUMENTS The Association does not enter into any hedging transactions. It does not have any abnormal exposure to price movements, changes in credit conditions, liquidity constraints or cash flow risks arising from its trading activities. AUDITOR Beever and Struthers Limited were re-appointed as Framework's extemal auditor during the year. STATEMENT AS TO DISCLOSURE OF INFORMATION TO THE AUDITOR The directors have taken all ne￿SSary steps to make the auditor aware of any relevant audit infomiation and to establish that they are aware of that information. As far as the directors are aware, there is no relevant audit information of which the Association's auditor is unaware. Approved by the Board on 17th July 2025 and signed on its behalf by: Ruth Hawkins (Chair of the Board) Page 31 FRAMEWORK HOUSING ASSOCIATION INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FRAMEWORK HOUSING ASSOCIATION Independent Auditor's Report to Framework Housing Association Opinion We have audited the financial statements of Framework Housing Association (the 'Company') for the year ended 31 March 2025 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Reserves, the Statement of Cash Flows and the notes to the financial statements, including a summary of significant accounting policies in note 1. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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: give a true and fair view of the state of the Company's affairs as at 31 March 2025 and of its income and expenditure for the year then ended. have been properly prepared in accordance with 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 Accounting Direction for Private Registered Providers of Social Housing 2022. 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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, Including the Financial Reporting Council'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 Board's 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 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 Board with respect to going concern are described in the relevant sections of this report. Page 32 FRAMEWORK HOUSING ASSOCIATION INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FRAMEWORK HOUSING ASSOCIATION (continued) Other information The other information comprises the infomiation included in the annual report, other than the financial statements and our auditor's report thereon. The Board is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to detennine whether this gives rise to a material misstatement in the financial statements themselves. If. based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other 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 strategic report and the directors, report for the financial year for which the financial statements are prepared is consistent with the financial statements. and the strategic report and the directors, report have been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understsnding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors, report. 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: 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 retums. or certain disclosures of directors, remuneration specified by law are not made; or we have not received all the infomation and explanations we require for our audit. In addition, we have nothing to report in respect of the following matter where the Housing and Regeneration Act 2008 requires us to report to you if, in our opinion: a satisfactory system of control over transactions has not been maintained. Page 33 FRAMEWORK HOUSING ASSOCIATION INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FRAMEWORK HOUSING ASSOCIATION (continued) Responsibilities of directors As explained more fully in the Statement of Directors, Responsibilities set out on page 30, the Board is 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 Board determines 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 Board is responsible for assessing the Company's ability to continue as a going con￿rn - disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board either intends to liquidate the Company or to cease operations, or has 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. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.or .uklauditorsres onsibilities. This description forms part of our auditor's report. Extent to which the audit was considered capable of detecting irregularities, including fraud We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. In identifying and addressing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following- We obtained an understanding of laws and regulations that affect the Company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws and regulations that we identified included the Companies Act 2006, the Statement of Recommended Practice for registered housing providers (Housing SORP 2018), the Housing and Regeneration Act 2008, the Accounting Direction for Private Registered Providers of Social Housing 2022, tax legislation. health and safety legislation and employment legislation. We enquired of the Board and reviewed correspondence and Board meeting minutes for evidence of non-compliance with relevant laws and regulations. We also reviewed the controls the Board has in place. where necessary, to ensure compliance. We gained an understanding of the controls that the Board has in place to prevent and detect fraud. We enquired of the Board about any incidences of fraud that had taken place during the accounting period. Page 34 FRAMEWORK HOUSING ASSOCIATION INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FRAMEWORK HOUSING ASSOCIATION (continued) The risk of fraud and non-compliance with laws and regulations was discussed within the audit team and tests were planned and performed to address these risks. We identified the potential for fraud in the following areas: laws and regulations related to the construction and provision of social housing recognising the regulated nature of the Company's activities. We reviewed financial statements & disclosures and tested the supporting documentation to assess compliance with the relevant laws and regulations discussed above. We enquired of the Board about actual and potential litigation and claims. We perfonmed analytical prO￿dureS to identify any unusual or unexpected relationships that might indicate risks of material misstatement due to fraud. In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias. Due to the inherent lirnitations of an audit. there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordan￿ with auditing standards. For example. as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-complian with laws and regulations and cannot be expected to detect all fraud and non-complian with laws and regulations. Use of our report This report is made solely to the 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 Company's members those matters we are required to state to them in an auditorfs 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 Company and the Company's Members as a body. for our audit work, for this report, or for the opinions we have formed. Richard Graham (Senior Statutory Auditor) For and on behalf of Beever and Struthers Statutory Auditor One Express 1, George Leigh Street Manchester M4 5DL Date: '&1 Page 35 FRAMEWORK HOUSING ASSOCIATION STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31st MARCH 2025 Note 2024125 2023124 £000 £000 Turnover 61,936 57,264 Operatillg expenditure Operating surplus Surplus on disposal of property Financc income (58,839 3,097 1,748 133 228 182 Interest and fu￿nCIng costs (517) (613) Surplus for the year 2,941 1,317 Actuarial (10ss)/gain in rcspect of pension schemes 16 (11) Total comprehensive income for the year 2,930 1,321 The rcsults all relate to continuing activities. The accompanying notes forn] an inlegral part of the financial statements. Pag& 36 FRAMEWORK HOUSING ASSOCIATION STATEMENT OF FINANCIAL POSITION AS AT 31st MARCH 2025 Note 2024125 2023124 £000 £000 FIXED ASSETS Tangible assets: Property, Plant and Equipment Depreciation 11 11 102,416 96,818 (18,446) (16,941) 83,970 CURRENT ASSETS Debtors 12 4,379 8,544 12,923 3,700 6,020 9,720 Cash and Investments 13 CREDITORS: AMOUNTS FALLING DUE WITHtN OINE YEAR 14 (9,364) (7,510) NET CURRENf ASSETS 3,559 2,210 TOTAL ASSETS LESS CURRENT LIABILITtES 87,529 82,087 CREDITORS: AMouNfs FALLING DUE AFTER MORE THAN ONE YEAR Deferred government grants Long Tenn Loans Defmed benefit pension liability 15b 15a 16 45,117 8,369 40,900 10,074 53,486 34,043 50,974 31,113 NET ASSETS CAPITAL A￿D RESERVES Called up Share Capital 17 Equity in Housing Properties & Other Fixed Assets 23 Liquid Reserves 23 30,484 3,559 28,903 2,210 34,043 31,113 The f￿￿ncial statements on pages 36 to 59 were approved and authorised for issue by the Board and signed on its behalf on 17th July 2025 by Ruth Hawkins Chair Andrew Redfern Chief Executive Suzanne Williamson Company Secretary Page 37 FRAMEWORK HOUSING ASSOCIATION STATEMENT OF CHANGES IN RESERVES INCOME & EXPENDITURE RESERVES Equity in Houslng Propertles & Otlier xed Assets Llquld R¢serves Total Reserv¢s Note £000 £000 £000 At Isl April 2024 Surplll$ for ￿ar Actuarial loss in respeci of p¢nsion schemes Reserves Transfer 28,903 2,210 2,941 2,941 16 Revenue Reserves As at 31st March 2025 30,484 3,559 34,043 £000 £000 £000 At Isl April 2023 Su￿[￿& for year Actuarial in r¢spect of pension sch¢m¢s RL&etves-I'ransf¢r 24.396 5.396 29.792 1.317 1.317 16 4,507 14.£071 Revenue Re8erYes #$ llt 31st March 2024 28,903 2,210 The accompanyirtg notes forni all int¢8ral part of th￿¢ financial s(atetnents. PEge 36 FRANIEWORK HOUSING ASSOCIATION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31st MARCH 2025 Note 2024125 2023124 £000 £000 Cash generated from operating activities Surplus for the year Adjustment for non cash items Depreciation of propety, plant and equipment {In¢re&seyDecrease in Debtors Increasel(Decrease) In Creditors Pension costs less contribution payable (Profil) on disposal of property, plant and e(wipm¢nt Government grants utilised in the year Interest received Int¢r¢sl payable Amounts charged to financing costs 2,941 1,317 1,632 1,686 (1.320) 1.968 128 12 14 16 1,771 143 15b (536) (619) (182) 613 (124) 517 16 Cash generated by operating aetivities 5,285 3,467 Cash flows from investing activities Purchase of property. plant and equipment Pr(￿eedS from the sale of Property, plant at]d equipment Grants received Interest received (i,898) 305 4,809 228 (4,229) 1.435 182 Net cash flows from investing activities ! j)6) (2,612) Cash fli)ws from finaacing activities Interest Paid New Loans Loan repaytnents Net cash flows from financing activities (613) 1,200 (4,074) {3,487) 75 (1,15?) j2,19a) Nerfdecrease)liucrease cash and eash equivalent5 2535 2,632) Note 2024125 £000 2023124 £000 Cash and e2sh equivalents at beginlling of year Nct (d¢cT¢aseyincrease in cash and cash equivalents Cash and cash equivalents at end of year 13 6,020 2,535 8,652 {2:632) 6,020 13 8,555 Page 39 FRAMEWORK HOUSING ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH 2025 I ACCOUNTING POLICIES The principal accounting policies are summarised below. They have all been applied consistcntly throughout the year and to the preceding year. General information and basis of accounting The financial statements have been prepared under the historical cost convention, and whcre applicable modified to includc certain items at fair value, in accordance with Financial Reporting Standard 102 (FRS 102) issucd by the Financial Reporting Council and comply with the Statement of Recommended Practicc for registered social hvusing providers 2018 (SORP), the Housing and Regeneration Act 2008 and the Accounting Direction for private registered providers of social housing 2019. Framework Housing AssoLiatÈon is a public bcncfit entity, as defmcd in FRS 102 and applies the relevant paragraphs prefixed 'PBE' in FRS 102. (b) Turnover and Operating Costs Turnover represcnts rent and service charges reccivable (net of rcnt and Se￿iCe charge losses from voids) in respect of supporting peoplc and community care contracts, revenue grants receivable, amounts receivablc in respect of scrvice level agreements and donations. Service charge income is rccognised whcn cxpenditure is incurred as this is considered to bc the point at which the servicc has been perfornied and the rcvenue recognition criteria mct. Operating costs incurred in thc dcIivery of thesc services comprise expenditurc on serviccs, managemcnt, bad debts, fund-raising, publicity and dcprcciation. (c) Propertyg plant and equipmcnt - housing properties Housing properties arc stated at cost Icss accumulated dcpreciation and accumulated impairnient los.ses. Cost includes the cost of acquiring land and buildings, directly attributable dcvelopment costs and borrowing costs directly attributdble to the constrnction of ncw housing properties during thc developmcnt. Capitalisation ceases when substantially all the activities that are necessary to get the assct ready for usc are complete. Expenditure on existing housing properties is capitalised when an idcntifiable componcnt is replaced and thi,$ replacemcnt cost is more than £5,000. Expcnditure incurrcd on the acquisition of furniture and equipment will be recorded in the Statement of financial position where the purchased cost per item is £5,000 or more, or, where the aggregate cost of items in a single capital project, is greater than £5,000. Dcpreciation is charged so as to write down the net book value of housing properties to their estimated residual value, on a straight line basis, over their use￿1 economic lives. Freehold land is not dcprcciated. A full years depreciation is charged on assets in the year of purchase, but no charge is made in the year of disposal. Page 40 FRAMEWORK HOUS]NG ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH 2025 I ACCOUNTING POLICIES (CONTINUED) (c) Property) plant and equipment - housing properties (continued) or com onents Major components of housing properties, which have significantly different patterns of consumption of economic benefits, are treated as separate assets and depreciated over their expected useful economic lives at the following aunual rates. Land Buildings- Superstructure Buildings-Roof Buildings-Heating Systems Buildings - Electrical systems Buildings - Fixtures & Fitting,, Furniture and Equipment rovements 33/0 Where there are improvements to housing properties that are expected to provide incremental fiiture benefits, th¢s¢ are capitalised and added to the carrying amount of the property. Any works to housing properties which do not replace a component or result in an incremental future benefit are charged as expenditure in the Statement of Comprehensive Jncome. Leaseholders Where the rights and obligations for improvillg a housing property reside with the leaseholder or tenant, any works to improve such properties incurred by the Association is recharged to the leaseholder and recognised in surplus or deficit in the Statement of Comprehensive Income along with the cottesponding income from the leaseholder or tenanL (d) Impairrnent of social housing properties Properties held for their social benefit are not held solely for the casb inflows they g¢neTate and are held for their service potential. An assessment is made at each reporting date as to whether an indicator of impairnient exists. Jf such an indicator exists, an impairnient assessment is carrted out and an estimate of the recoverable amount of the asset is made. Where the carrying amount of the asset exceeds its recoverable amount, an impainnent loss is recognised in surplus or deficit in the Statement of Comprehensive Income. The recoverable amount of an asset is the higher of its vaIue in use and fair value less costs to sell. Where assets are beld for their service potential, value in use is detennined by the Present value of the asset's remaining service potential plus the net amount expected to be received from its disposal. Depreciated replacement cost is taken as a suitable measurement model. An impairnient loss is reversed if the reasons for the impainnent loss have ceased to apply and included in surplus or deficit in the Statement of Comprehensive Income. Impairment indicators used by the Association are: empty properties without an a￿eed plan to bring into use, pernianent increase in voids, or reduction in rental income. Page 41 FRAMEWORK HOUSING ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH 2025 I ACCOUNTING POLICIES (CONTINUED) (e) Social Housing Grant and other Government Grants Where grants are received from government agencies such as Homes England, local authorities, devolved government agencies, health authorities and the European Commission which meet the defillltion of government grants they are recognised when there is reasonable assurancc that the conditions attached to thcm will be complied with and that the grant will be received. Government grants are recognised Using the accrual model and are classified either as a grant relating to revenue or a grant rclating to assets. Grants relattng to revenue arc recognised in income on a systematic basis over the period in which rclated costs (for which the grant is intended to compensate) arc recognised. Where a grant is reccivable as compensation for cxpenses or losses alrcady incutTcd or for the purpose of giving immediatc financial support with no future rclated Losts, it is recognised as revcnue in the period in which it bccomes reccivable. Grants relating to assets arc recognised in income on a systetnatic basis over the expccted useful life of thc asset. Grants received for housing propertics are reLognised in income over thc expected usecul life of the housing propety 8truclure. Where a grant is received specifically for components of a housing property, the grant is recoglliscd in incomc over the cxpected uscful lifc of the componcnt. Grants rcceived from non-govcrnment sources are rccognised as revenuc using the pcrforniancc modcl. (O Recycling of grants Wherc there is a rcquircment to either rcpay or recycle a grant received for an asset that has been disposed of, a provision is included in the St