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2024-03-31-accounts

Solo Housing (East Anglia)

(A Company Limited by Guarantee)

Company Number: 03266905 Charity Number: 1068017 Regulator of Social Housing number: 4696

Audited Financial Statements For the year ended 31 March 2024

Solo Housing (East Anglia) (A Company Limited by Guarantee)

Year ended 31 March 2024

Contents

Page No
Members of the Board and Professional Advisors 1
Report of the Board 2-7
Independent Auditor’s Report to the Members 8-11
Statement of Comprehensive Income 12
Balance Sheet 13
Statement of Changes in Reserves 14
Statement of Cash Flows 15
Notes to the Accounts 16-28

Solo Housing (East Anglia) (A Company Limited by Guarantee) Year ended 31 March 2024

The Board, who are also Directors for the purposes of company law and trustees for the purposes of charity law, submit the Annual Report and Audited Financial Statements for the year ended 31 March 2024.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the organisation’s governing document, the Companies Act 2006, the Statement of Recommended Practice for registered housing providers: Housing SORP 2018, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2022.

Members of the Board and Professional Advisors

Registered Name: Solo Housing (East Anglia)
Company Number: 03266905
Charity Number: 1068017
Regulator of Social Housing
Registration Number: 4696
Board (Trustees): April Archer
Alex Cole (Appointed 1 July 2024)
Tracey Dowse
Sarah Fish (Company Secretary)
Peter Goddard (Chair)
Alton Nutile (Appointed 1 April 2024)
Stephen Peattie (Appointed 1 July 2024)
David Sice
Abraham Williams (Appointed 1 April 2024)
Lisa Oakley (Removed 12 September 2023)
Martyn Sandford (Resigned 9 October 2023)
Phillip Ellick (Resigned 31 March 2024)
Mark Walsh (Resigned 31 March 2024)
Registered Office/Principal Office: 1stFloor – Axis House
6a Hillside Road
Bury St Edmunds
Suffolk
IP32 7EA
Chief Executive: Carolyn Howell (resigned 31 May 2023)
Andrew Meyer (appointed 5 June 2023)
Auditor: Lovewell Blake LLP
Chartered Accountants &
Statutory Auditor
Bankside 300
Peachman Way
Broadland Business Park
Norwich
NR7 0LB
Bankers: Lloyds Bank plc
3 Market Hill
Diss
Norfolk
IP22 3JZ

1

Solo Housing (East Anglia) (A Company Limited by Guarantee) Report of the Board for the year ended 31 March 2024

REFERENCE AND ADMINISTRATIVE DETAILS

Reference and administrative details are shown in the schedule of members of the Board and Professional Advisors on page 1.

PRINCIPAL ACTIVITIES

Principal activities are the provision of single person General Needs and Supported Housing, along with other specialist housing and support contracts and services, delivered directly or indirectly via Housing Management Agreements.

STRUCTURE

Solo was originally established in 1985 as the Campaign for Single Homeless People, becoming a Company Limited by Guarantee in 1996.

The organisation is governed by the Memorandum and Articles of Association and is a Registered Provider of Social Housing and a Registered Charity. The organisation therefore has two governing bodies; the Regulator of Social Housing and the Charity Commission.

REVIEW OF THE BUSINESS

Service Delivery 2023/24

During the period, a new Chief Executive joined the organisation and circa 160 bedspaces of accommodation at any one time was provided.

New oversight processes were introduced including suites of Key Performance Indicators (KPI’s) and over the year performance has taken an overall positive trend including in respect of complaints, where no interventions by the Regulator of Social Housing were required.

A new five year Business Plan (2023-28) was also launched in September 2023. In addition, a full ICT upgrade programme was rolled out and Head Office moved to Bury St Edmunds to better position the organisation to support growth plans across the whole of East Anglia.

A five year Asset Management Plan was also created with roll out started.

In respect of growth, the Board and Senior Leadership Team held an away day in March 2024 to explore the organisations growth and associated risk appetite.

A significant unplanned cost was identified in respect of an asset located at 1-2 Denmark Street, Diss, where the main drains collapsed requiring all tenants to be moved out for extensive repairs to be completed in 2024/25 at a cost of around £54,000.

Corporate Governance

Solo has adopted the National Housing Federation Code of Governance 2020 containing four key principles:

2

Solo Housing (East Anglia) (A Company Limited by Guarantee) Report of the Board for the year ended 31 March 2024

Governance and Financial Viability

The Board are committed to achieving good governance and being an effective provider of services, meeting both regulatory codes and standards. Such governance being achieved by having in place robust policies and procedures, along with a Scheme of Delegation and three Board Sub Committees of Audit & Risk, Business Development and Finance & Investment.

The Board are satisfied that value for money is achieved through the full provision of services at a rate which is below, or comparable to that of other local providers.

Composition and Role of the Board

The Board consists of nine members (up to a maximum of 12). Members at the time these accounts were prepared are shown on page 1.

During the period the following ceased to be Board Members on the dates shown:

The Board has agreed terms of reference and a schedule of significant matters reserved for its decision, which includes approval of the business plan, the allocation of financial resources, acquisitions and disposals, annual budgets, appointment of the Chief Executive, treasury policy and risk management.

Responsibility for day to day operations is delegated by the Board to the Chief Executive.

Recruitment and Training of the Board

Over the past year, new Board members have been recruited through the use of a third party agency who looks to provide candidates who have the relevant skills, knowledge and expertise to allow them to be an effective member of the Board.

During the current year a full training matrix and programme will be established to ensure all Board members, going forward, gain the training that is required.

Key Management Personnel Remuneration

The remuneration of the Chief Executive and Senior Leadership Team are set to reflect the market rate of pay for comparative roles. The remuneration of the Chief Executive is determined by the Board.

Public Benefit

The Board has paid due regard to the Charity Commission’s Guidance on public benefit and confirms, that Solo meets the public benefit test through the activities undertaken to fulfil its object: “To relive need, hardship and distress amongst persons who are homeless and single in East Anglia and to provide social housing to such persons who are without suitable accommodation.”

3

Solo Housing (East Anglia) (A Company Limited by Guarantee) Report of the Board for the year ended 31 March 2024

Internal Control Assurance

The Board has overall responsibility for establishing and overseeing a framework of delegation and system of internal control and for reviewing its effectiveness.

No system of internal control can provide absolute assurance or eliminate all risk. The system of internal control is designed to manage risk and to provide reasonable assurance that key business objectives and expected outcomes will be achieved. It also exists to give reasonable assurance about the preparation and reliability of financial and operational information and the safeguarding of the organisation's assets and interests.

Management responsibility has been clearly defined for the identification, evaluation and control of significant risks which are contained within the Strategic Risk Register. The Chief Executive and Senior Leadership Team consider this and look at ways to mitigate, with reviews by the Audit & Risk Committee and the Board undertaken each quarter. The current significant risks are considered to be:

Risks in relation to property compliance and health & safety are managed by the whole Leadership Team and reported to the Board each quarter.

Control Environment and Control Procedures

The Board retains responsibility for a defined range of issues and the organisation has a framework of Standing Orders, Delegated Authorities’ and Policies and Procedures which all employees are expected to comply with.

Performance Management and Financial Reporting Systems

Key Performance Indicators accompanied by detailed reports produced by members of the Senior Leadership Team are presented at each Board meeting and these provide good oversight as to the health of Solo and track against the Business Plan (2023-28).

Financial reporting also includes robust tracking against approved budgets and highlights the profit and loss position.

Fraud Prevention and Detection

Solo has a Whistleblowing Policy promoted to tenants, service users and employees. Where fraud is attempted, suspected or discovered, there is an Anti-Fraud and Corruption Policy in place to guide any investigation and reporting of findings.

A record of all reported losses and compensation (resulting from fraud or not) is maintained, the effects financial or otherwise and the implications for the system of internal control are recorded and reported to the Board quarterly.

No fraud was detected in 2023/24.

4

Solo Housing (East Anglia) (A Company Limited by Guarantee) Report of the Board for the year ended 31 March 2024

Value for Money

The Regulator of Social Housing published a Value for Money Standard which Solo must adhere to and includes a requirement to publish nine measures in a standard form to enable comparison across the sector, accepting that there will be variances associated with each business’s policies, strategy and focus.

----- Start of picture text -----
Metric 2024 2023
Reinvestment % 19.8% 25.7%
New supply delivered (social housing units %) -% -%
New supply delivered (non-social housing units %) -% -%
Gearing % (8.4)% (0.8)%
Earnings Before Interest Tax, Depreciation, Amortisation, Major Repairs Included 612.5% (400)%
(EBITDA MRI) interest cover %
Headline social housing cost per unit £16,927.93 £15,284.48
Operating margin (social housing) % 7% (3.8)%
Operating margin (overall) % 7% (3.8)%
Return on Capital Employed % 10.4% (5.1)%
----- End of picture text -----

FINANCIAL REVIEW

The organisation generated a net operating surplus for the year of £143,312 (2023: deficit of £65,402) before interest charges. After interest charges the organisation generated a total comprehensive income for the year of £119,493 (2023: expenditure of £81,571).

PRINCIPAL FUNDING SOURCES

The organisations main source of income is rental income from individual tenants and/or housing benefit, along with providing services for other organisations.

RESERVES

All surpluses generated by Solo are transferred to reserves and included on the balance sheet.

The objective is to have unrestricted reserves sufficient to meet at least six months’ worth of costs should the organisation cease to operate. These reserves will include unrestricted cash and equity held within the freehold properties, owned by Solo, which would be released on sale or transfer to a similar organisation.

The reserves are held to cover costs such as salaries, mortgage repayments, lease payments to break points, dilapidations and repair costs and other operating costs. Whilst some income would be received during a period of decommissioning services, this would be used to cover property overheads and a contribution towards salaries.

Free reserves, being unrestricted net current assets, in the revenue reserve amounted to £334,916 (2023: £192,586) which amounts to around two months of unrestricted expenditure. The Board recognises that greater efforts are required to ensure six months free reserves are secured each year, however in line with the policy above there is equity within the properties owned by the charity which could be used should there be a need to do so.

In addition to the above, funds are held for restricted purposes in line with grant applications made for specific projects which amounted to £2,961 (2023: £38,974).

5

Solo Housing (East Anglia) (A Company Limited by Guarantee) Report of the Board for the year ended 31 March 2024

EMPLOYEES

Solo’s budgeted establishment as of 31 March 2024 was 27 FTE with no posts being paid below the Real Living Wage.

INVESTMENTS

It is Solo’s policy to ensure that all funds are managed effectively and it endeavours to secure interest revenue that meets budgetary expectations.

All investments are considered in relation to how they may impact on the balance sheet.

PLANS FOR FUTURE PERIODS

Notable activity planned is the approval of Solo’s new Growth Strategy and the development of 15 new flats, primarily to be used as move on accommodation and the remodelling of hostel accommodation at our asset located at 32 & 34 Victoria Road, Diss.

FUNDRAISING

As the organisation does not actively fundraise from the public, they are not registered with the Fundraising Regulator. Whilst the organisation does not actively fundraise, it is fortunate to receive some donations from the public. During the year the organisation has not received any complaints regarding its fundraising.

STATEMENT OF THE BOARD’S FINANCIAL RESPONSIBILITIES

The Board (who are also directors of Solo Housing (East Anglia) Limited for the purposes of company law) are responsible for preparing this Report of the Board and the financial statements in accordance with applicable law and regulations and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law and registered social housing legislation require the Board to prepare financial statements for each financial year. Under company law the Board 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 organisation and of the incoming resources and application of resources, including the income and expenditure of the organisation for that period. In preparing the financial statements, the Board is required to:

The Board is responsible for keeping adequate and proper accounting records that disclose with reasonable accuracy at any time the financial position of the organisation and to enable them to ensure that the financial statements comply with the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for private registered providers of social housing in England 2022. They are also responsible for safeguarding the assets of the organisation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

6

Solo Housing (East Anglia) (A Company Limited by Guarantee) Report of the Board for the year ended 31 March 2024

STATEMENT OF THE BOARD’S FINANCIAL RESPONSIBILITIES (continued)

In so far as the Board are aware that:

AUDITOR

A resolution to reappoint Lovewell Blake LLP as auditor will be put to the Annual General Meeting.

The Report of the Board has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Signed on behalf of the Board by:

Peter Goddard Chair

Date: 22 August 2024

7

Solo Housing (East Anglia) (A Company Limited by Guarantee) Auditors Report for the year ended 31 March 2024

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SOLO HOUSING (EAST ANGLIA)

Opinion

We have audited the financial statements of Solo Housing (East Anglia) (the ‘organisation’) for the year ended 31 March 2024 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Reserves, the Statement of Cash Flows, and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 organisation'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.

8

Solo Housing (East Anglia) (A Company Limited by Guarantee) Auditors Report for the year ended 31 March 2024

Other information

The other information comprises the information included in the Report of the Board, other than the financial statements and our auditor’s report thereon. The Board are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

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:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the organisation and its environment obtained in the course of the audit, we have not identified material misstatements in Report of the Board. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

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:

9

Solo Housing (East Anglia) (A Company Limited by Guarantee) Auditors Report for the year ended 31 March 2024

Responsibilities of the Board

As explained more fully in the Board’s responsibilities statement set out on page 6, the Board members (who are also the directors of the organisation for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Board determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board is responsible for assessing the organisation’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board either intends to liquidate the organisation or to cease operations, or has no realistic alternative but to do so.

Auditor responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-audit-of-the-fi/description-ofthe-auditor%E2%80%99s-responsibilities-for. This description forms part of our auditor’s report.

10

Solo Housing (East Anglia) (A Company Limited by Guarantee) Auditors Report for the year ended 31 March 2024

Use of our report

This report is made solely to the organisation’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 137 of the Housing and Regeneration Act 2008. Our audit work has been undertaken so that we might state to the organisation’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the organisation and the organisation’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Bankside 300
Peachman Way
Broadland Business Park
Norwich
Mark Proctor FCA DChA (Senior Statutory Auditor) NR7 0LB
For and on behalf of Lovewell Blake LLP, Statutory Auditor
22 August 2024

11

Solo Housing (East Anglia) (A Company Limited by Guarantee)

Statement of Comprehensive Income (including Income and Expenditure account)

Year ended 31 March 2024

Note
Turnover
5
Operating expenditure
6
Loss on disposal of fixed assets
Operating surplus / (deficit)
4
Interest receivable
Interest and financing costs
8
Total comprehensive income/(expenditure)
for the year
7		 2024
£
2,033,480
(1,879,926)
(10,242)

_____
143,312
279

(24,098)
119,493		 2023
£
1,707,276
(1,772,678)
-
_____
(65,402)
-
(16,169)
(81,571)

There are no unrecognised gains or losses during the year other than as stated above.

The statement of comprehensive income and expenditure account reflects the activity during the year which is of a continuing nature.

Signed on behalf of the Board by:

Peter Goddard Chair

Alton Nutile Board member

Date: 22 August 2024

The notes on pages 16 to 28 form part of these financial statements.

12

Solo Housing (East Anglia) (A Company Limited by Guarantee)

Balance Sheet as at 31 March 2024

Company Registration Number: 03266905

Note
Fixed assets
Tangible fixed assets
12
Current assets
Debtors
13
Cash at bank and in hand
Creditors: Amounts falling due within
one year
14

Net current assets
Total assets less current liabilities
Creditors: Amounts falling due after
more than one year
15

Total net assets
Reserves
Income and expenditure reserve:
General Fund
16
Revaluation Fund
16
Restricted Funds
16

Total Reserves		 Total
Total
2024
2023
£
£
1,031,679
1,031,837
156,821
118,307
383,036
318,582
539,857
436,889
(201,980)
(205,329)
__
_
337,877
231,560
1,369,556
1,263,397
(297,525)
(310,859)
 __
__
1,072,031
952,538
1,039,555
884,049
29,515
29,515
2,961
38,974
_
____
1,072,031
952,538

These financial statements have been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006.

These financial statements were approved and authorised for issue by the Board and are signed on their behalf by:

Peter Goddard Chair Date: 22 August 2024

Alton Nutile Board member

The notes on pages 16 to 28 form part of these financial statements.

13

Solo Housing (East Anglia) (A Company Limited by Guarantee)

Statement of Changes in Reserves as at 31 March 2024

Revaluation
Fund
£
At 1 April 2022
29,515
Net (expenditure) for the
year
-
Total comprehensive
(expenditure)
-
At 31 March 2023 and 1
April 2023
29,515
Net income / (expenditure)
for the year
-
Total comprehensive
income / (expenditure)
-
At 31 March 2024
29,515		 General
Fund
Restricted
Funds
£
£
958,991
45,603
(74,942)
(6,629)
(74,942)
(6,629)
884,049
38,974
155,506
(36,013)
155,506
(36,013)
1,039,555
2,961		 Total
£
1,034,109
(81,571)
(81,571)
952,538
119,493
119,493
1,072,031

The notes on pages 16 to 28 form part of these financial statements.

14

Solo Housing (East Anglia) (A Company Limited by Guarantee)

Statement of Cash Flows as at 31 March 2024

Note
Cash flow from operating activities
18
Interest paid
Net cash generated from operating activities
Cash flow from investing activities
Payments to acquire fixed assets
Proceeds from sale of fixed assets
Interest received
Net cash flow from investing activities
Cash flow from financing activities
Loan repayments
Interest paid
Net cash flow from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at 1 April 2023
Cash and cash equivalents at 31 March 2024
Cash and cash equivalents consists of:
Cash at bank and in hand
Cash and cash equivalents at 31 March 2024		 2024
£
93,809
24,098
117,907
(16,733)
2,990
279
(13,464)
(15,891)

(24,098)

(39,989)

64,454

318,582
383,036
383,036
383,036		 2023
£
12,169
16,169
28,338
(5,224)
-
-
(5,224)
(19,204)
(16,169)
(35,373)
(12,259)

330,841
318,582
318,582
318,582

The notes on pages 16 to 28 form part of these financial statements.

15

Solo Housing (East Anglia) (A Company Limited by Guarantee)

Notes to the Accounts For the year ended 31 March 2024

1 General information

Solo Housing (East Anglia) is a Company Limited by Guarantee, a private registered provider of social housing in England, United Kingdom. The address of the registered office is given in the information on page 1 of these financial statements. The nature of the Registered Provider’s operations and principal activities are described on page 2 of these financial statements.

2 Statement of compliance

These financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102), the Statement of Recommended Practice for Social Housing Providers 2018, and with the Accounting Direction for private registered providers of social housing in England 2022. The financial statements are also prepared under the requirements of the Housing and Regeneration Act 2008 and the Companies Act 2006.

The Registered Provider constitutes a public benefit entity as defined by FRS 102.

3 Accounting Policies

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

(a) Basis of Accounting

The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value.

The financial statements are prepared in sterling, which is the functional currency of the RP.

(b) Fund Accounting

The Revenue Reserve consists of unrestricted funds, including the revaluation fund, which are available for use at the discretion of the Board for the objectives of the organisation.

The Restricted Reserve consists of funds that the organisation has been provided with for a particular purpose and it is the policy of the trustees to carefully monitor the application of those funds in accordance with the restrictions placed upon them.

(c) Turnover

Donations are included in the year in which they are receivable, which is when the organisation becomes entitled to the resource.

Grants in respect of revenue expenditure are credited to the Income and Expenditure account on a receivable basis. Grants received in advance of the period to which they relate are shown within the Balance Sheet as deferred income and released to the Income and Expenditure account in the appropriate year.

Rental income, net of rent and service charge losses from voids, and other income is recognised within the Income and Expenditure account on a receivable basis.

16

Solo Housing (East Anglia) (A Company Limited by Guarantee)

Notes to the Accounts For the year ended 31 March 2024

3 Accounting Policies (continued)

(d) Government Grants

Government grants received as a contribution to revenue expenditure are recognised in the Statement of Comprehensive Income on a systematic basis over the period in which the landlord recognises the related costs for which the grant is intended to compensate. The related expenditure is included under operating expenses. Grants are recognised in the same period as the related expenditure provided the conditions for receipt have been satisfied and there is reasonable assurance that the grant will be received.

(e) Expenditure

Resources expended are charged in the Statement of Comprehensive Income on an accruals basis including VAT which cannot be recovered.

(f) Tangible Fixed Assets

Fixed assets costing more than £500 are capitalised and are included at cost, and are written off over their anticipated useful lives as follows:

Improvements to leasehold property Over period of lease Equipment 10% Reducing Balance Computer Equipment 25% Straight Line Motor vehicles 25% Reducing balance

(g) Housing Properties

Housing Properties have been revalued on an Existing Value in Use – Social Housing basis. The properties will be revalued every five years, with an interim valuation during the third year. The differences between the revalued amounts are transferred to/from the Statement of Comprehensive Income and revaluation reserve.

Improvements are works which result in an increase in the net rental income, such as a reduction in future maintenance costs, or result in a significant extension of the useful economic life of the property in the business. Only the direct overhead costs associated with new developments or improvements are capitalised. No depreciation is applied to the Housing Properties as they are subject to revaluation to market value every five years and thus any depreciation would be negligible.

(h) Leases

Rentals payable under operating leases are charged on a straight-line basis over the term of the lease.

(i) Pension Costs

The organisation operates a Defined Contribution Pension Scheme for employees. The assets of the scheme are held separately from those of the organisation. The contributions payable are charged to the Statement of Comprehensive Income as they fall due.

17

Solo Housing (East Anglia) (A Company Limited by Guarantee)

Notes to the Accounts (continued)

For the year ended 31 March 2024

3 Accounting Policies (continued)

(j) Debtors

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

(k) Cash at bank

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

(l) Creditors and provisions

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

(m) Financial instruments

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

(n) Redundancy

Where an obligation to make a redundancy or termination payment exists, the costs incurred by the organisation are accounted for on an accruals basis and included in wages and salaries.

(o) Going concern

The financial statements have been prepared on a going concern basis as the committee believes that no material uncertainties exist. The board have considered the level of funds held and the expected level of income and expenditure for the 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the Registered Provider to be able to continue as a going concern.

18

Solo Housing (East Anglia) (A Company Limited by Guarantee)

Notes to the Accounts (continued)

For the year ended 31 March 2024

4 Turnover and Operating Surplus / (Deficit)

Supported
housing		 2024
2023
Turnover
Operating
Expenditure
Loss on
disposal
Operating
Surplus
Turnover
Operating
Expenditure
Operating
(Deficit)
£
£
£
£
£
£
£
2,033,480
(1,879,926)
(10,242)
143,312
1,707,276
(1,772,678)
(65,402)
2,033,480
(1,879,926)
(10,242)
143,312
1,707,276
(1,772,678)
(65,402)

5 Turnover

Donations
Grants receivable
Government grants received (including Housing Related Support Grant)
Housing benefit and rental income (net of voids and non-collectable rent)
Other income
Voids (including out of commissions of £106,822 (2023: £110,699) and non-
collectable rent of £13,136 (2023: £9,045))		 2024
£
2,336
74,799
616,853
1,332,921
6,571
2,033,480
(218,160)		 2023
£
2,621
49,850
437,210
1,213,835
3,760
1,707,276
(173,596)

6 Operating costs

Staff costs (note 11)
Rent - operating leases
Water, insurance, electricity and rates
Maintenance, repairs and furniture
Office costs
Travelling expenses
Professional fees
Depreciation
Bank charges
Other costs
Bad debt write off
Third party agency
 2024
£
669,694
422,945
177,316
200,212
79,550
20,287
113,839
3,659
1,226
53,465
67,406
70,327
1,879,926		 2023
£
651,138
383,998
154,934
260,476
82,481
24,285
54,941
1,389
1,498
78,262
26,348
52,928
1,772,678

19

Solo Housing (East Anglia) (A Company Limited by Guarantee)

Notes to the Accounts (continued)

For the year ended 31 March 2024

7 Surplus / (Deficit) on Operating Activities

This is stated after charging
Service charge and rental losses from bad debts
Staff pension contributions
Depreciation
Auditor’s remuneration - Auditor’s remuneration - current year
- Auditor’s remuneration - prior year
- Payroll
- Xero work / training
- Irrecoverable VAT on all fees
Operating lease rentals		 2024
£
67,406
44,719
3.659
13,333
5,500
1,783
346
4,197
427,882		 2023
£
26,348
43,936
1,389
11,265
7,556
1,126
1,960
4,382
374,081

8 Interest Payable and Similar Charges

Interest on bank loans 2024
£
24,098
24,098		 2023
£
16,169
16,169

9 Taxation

The organisation is a registered charity qualifying for exemption from corporation and capital gains tax to the extent that its income is applied for its charitable purposes.

10 Emoluments of the Board and key management personnel

Three Board members received expenses totalling £795 (2023: £nil and nil members). No Board members were entitled or received any remuneration.

The remuneration paid to Chief Executive was as follows:

Total emoluments (excluding pension contributions) 2024
£
72,888		 2023
£
61,036

The Chief Executive is an ordinary member of the defined contribution pension scheme operated by the organisation, and no special arrangements are in place. Solo Housing (East Anglia) paid £5,212 (2023: £4,356) into the pension scheme on behalf of the Chief Executive Officer.

A total of £965 (2023: £2,175) was reimbursed to the Chief Executive Officer during the year in respect of travel and office costs incurred.

Key management personnel remuneration amounted to £129,884 (2023: £110,356) in respect of four employees (2023: two employees).

20

Solo Housing (East Anglia) (A Company Limited by Guarantee)

Notes to the Accounts (continued)

For the year ended 31 March 2024

11 Staff costs

aff costs
Wages and salaries
Social security costs
Other pension costs
Particulars for employees:
The average number of employees during the financial year were as follows:
Number of administrative staff
Housing and support staff
Total
The full time equivalent number of employees during the financial year was:		 2024
£
580,403
44,572
44,719
669,694
2024
8
15
23
20		 2023
£
562,869
44,333
43,936
651,138
2023
7
17
24
20

One employee received remuneration of more than £60,000 during the year in the banding of £60,000 to £70,000. (2023: no employees received remuneration of more than £60,000).

The organisation operates a defined contribution pension scheme. At the year end there is an amount included within creditors of £3,812 (2023: £3,960) owing to the scheme.

Key management personnel remuneration amounted to £129,884 (2023: £110,356) in respect of four employees (2023: two employees).

Wages and salaries includes statutory redundancy pay of £nil (2023: £506).

21

Solo Housing (East Anglia) (A Company Limited by Guarantee)

Notes to the Accounts (continued)

For the year ended 31 March 2024

12 Fixed Assets

Housing
Properties
for letting
(at
valuation)
Leasehold
Property
Improvements
(at cost)
Other Fixed
Assets
(at cost)
£
£
£
Cost/Valuation
As at 1 April 2023
1,018,280
-
122,056
Additions
-
8,960
7,773

Disposals
-
-
(109,121)

As at 31 March 2024
1,018,280
8,960
20,708

Depreciation
As at 1 April 2023
8,280
-
100,218
Charge for the year
-
78
3,581
Charge for the year
-
-
(95,888)
As at 31 March 2024
8,280
78
7,911
Net book value
As at 31 March 2024
1,010,000
8,882
12,797
As at 31 March 2023
1,010,000
-
21,838
The net book value of land and buildings comprised:
2024
£
Land and buildings:
Freehold
910,000
Long leasehold
100,000
1,010,000		 Total
£
1,140,336
16,733
(109,121)
1,047,948
108,498
3,659
(95,888)
16,269
1,031,679
1,031,838
2023
£
910,000
100,000
1,010,000

During 2021 all of the properties were valued externally by Jones Lang LaSalle on an Existing Value in Use – Social Housing basis. The properties will be revalued every five years, with an interim valuation during the third year.

If the properties were included at historical cost, the carrying value would be presented as:

Properties at historical cost
Cumulative historical cost depreciation
Net book value		 2024
£
1,444,337
(321,917)
1,122,420		 2023
£
1,444,337
(294,513)
1,149,824

22

Solo Housing (East Anglia) (A Company Limited by Guarantee)

Notes to the Accounts (continued)

For the year ended 31 March 2024

13 Debtors

ebtors
2024
£
Debtors (gross of social housing rent arrears)
232,607
Doubtful debt provision
(109,473)
Prepayments and accrued income
33,687
__
156,821
reditors: Amounts falling due within one year
2024
£
Trade creditors
41,294
Accruals
55,137
Deferred income
75,154
Other creditors
10
Bank loans and overdrafts
15,891
Other taxes and social security and pension
14,494
____
201,980		 2023
£
155,124
(43,775)
6,958
______
118,307
2023
£
60,247
45,940
63,503
1,132
18,448
16,059
______
205,329

14 Creditors: Amounts falling due within one year

The deferred income relates to grants received in the financial year which relate to future years.

2024
£
Deferred income brought forward
63,503
Released during the year
(63,503)
Deferred during the year
75,154
Deferred income carried forward
75,154		 2023
£
19,489
(19,489)
63,503
63,503		 2023
£
19,489
(19,489)
63,503
63,503
63,503

The bank loans included within creditors falling due within one year of £15,891 (2023: £18,449) are secured on housing properties owned by the organisation. The payment terms and conditions of each bank loan are given in note 15.

23

Solo Housing (East Anglia) (A Company Limited by Guarantee)

Notes to the Accounts For the year ended 31 March 2024

15 Creditors: Amounts falling due after one year

Bank loans and overdrafts 2024
£
297,525		 2023
£
310,859

The bank loans included within creditors falling due after more than one year are secured on housing property owned by the organisation. Included in bank loans due after one year is £233,960 (2023: £233,170) which fall due after five years and which are payable by instalments.

One bank loan is on a repayment basis repayable over 25 years and is secured on a housing property. Interest is calculated at a variable rate of 2.5% over base.

The second bank loan is on a repayment basis repayable over 20 years and is secured on a housing property. Interest is calculated at a fixed rate of 6.256% over 20 years.

The third bank loan is on a repayment basis repayable over 25 years and is secured on a housing property. Interest is calculated at a variable rate.

16 Reserves

Revaluation
Fund
Revenue
Funds
Restricted
Funds
£
£
£
As at 1 April 2023
29,515
884,049
38,974
Net income / (expenditure)
-
155,506
(36,013)
__
__
_
As at 31 March 2024
29,515
1,039,555
2,961
Revaluation
Fund
Revenue
Funds
Restricted
Funds
£
£
£
As at 1 April 2022
29,515
958,991
45,603
Net (expenditure)
-
(74,942)
(6,629)

_
___
As at 31 March 2023
29,515
884,049
38,974		 Total
£
952,538
119,493
_
1,072,031
Total
£
1,034,109
(81,571)
_
952,538

24

Solo Housing (East Anglia) (A Company Limited by Guarantee)

Notes to the Accounts For the year ended 31 March 2024

16 Reserves (continued)

The restricted reserve consists of:

The restricted reserve consists of:
Expenditure Balance at
Balance at /transfers in 31 March
1 April 2023 Income year 2024
£ £ £ £
Tesco Grant - 3,000 (39) 2,961
Feasibility Fund 24,474 - (24,474) -
Awards for All Grant 9,500 - (9,500) -
Women’s Accommodation Service 5,000 - (5,000) -
38,974 3,000 (39,013) 2,961
The restricted reserve consists of:
Balance at 1 Income Expenditure Balance at 31
April 2022 /transfers in March 2023
year
Feasibility Fund 24,474 - - 24,474
Tesco Starter Grant 547 - (547) -
Awards for All Grant 9,500 - - 9,500
Women’s Accommodation Service 5,635 46,739 (47,374) 5,000
Off The Street Project 5,447 7,500 (12,947) -
Football Tournament - 1,710 (1,710) -
45,603 55,949 (62,578) 38,974

The Tesco Grant represents funding towards community projects.

The Feasibility fund was set up to research the feasibility of enterprise propositions.

Tesco Starter Grant represents funding which was received towards tenant welfare packs.

Awards for All Grant was received towards the potential head office move.

Female Offender Project (Women’s Accommodation Scheme) fund was set up with funding from Nationwide to fund a support worker salary.

Off the Street Project funding received to fund a support worker salary.

Football Tournament represents funding towards the Suffolk Recovery Football Tournament.

25

Solo Housing (East Anglia) (A Company Limited by Guarantee)

Notes to the Accounts For the year ended 31 March 2024

17 Analysis of net assets between funds

Revaluation
Reserve
£
Fixed assets
29,515
Net current assets
-
Long term liabilities
-
_
As at 31 March 2024
29,515
Revaluation
Reserve
£
Fixed assets
29,515
Net current assets
-
Long term liabilities
-
___
As at 31 March 2023
29 515		 Revenue
Reserve
Restricted
Reserve
£
£
1,002,164
-
334,916
2,961
(297,525)
-
__
_
1,039,555
2,961
Revenue
Reserve
Restricted
Reserve
£
£
1,002,322
-
192,586
38,974
(310,859)
-
_
__
884,049
38,974		 Total
£
1,031,679
337,877
(297,525)
_
1,072,031
Total
£
1,031,837
231,560
(310,859)
_
952,538

18 Reconciliation of operating surplus to cash flow from operating activities

2024
£
Net income/(expenditure) for the year
119,493
Depreciation on tangible fixed assets
3,659
(Increase) in trade and other debtors
(38,514)
(Decrease) / increase in trade and other creditors
(792)
Loss on disposal of asset
10,242
Interest received
(279)
93,809
9 Analysis of changes in net debt
At 1 April 2023
Cashflows
At
Cash at bank and in hand
318,582
64,454
Debt due within one year
(18,448)
2,557
Debt due after one year
(310,859)
13,334
(10,725)
80,345		 2023
£
(81,571)
1,389
(4,701)
97,052
-
-
12,169
31 March
2024
383,036
(15,891)
(297,525)
69,620

19 Analysis of changes in net debt

26

Solo Housing (East Anglia) (A Company Limited by Guarantee)

Notes to the Accounts

For the year ended 31 March 2024

20 Accommodation owned, leased and managed

commodation owned, leased and managed
2024 2023
Units Units
Supported housing (social rent plus enhanced housing management and 107 113
service charges)
General housing (social rent) 4 3
111 116

Of the above bed spaces, 20 are owned by the organisation.

In addition to the above the organisation manages 6 general needs units on behalf of East Suffolk Council.

The organisation leases 29 units which are managed by The Benjamin Foundation. No income or expenditure is included within the accounts, other than a monthly administration fee which is received from the Foundation as all risks and rewards are held by The Benjamin Foundation.

21 Lease commitments

The total future minimum lease payments under non-cancellable operating leases are as follows –

Land and Buildings
Not Later than one year
Between 2 and 5 years
Plant and machinery
Not Later than one year
Between 2 and 5 years		 2024
£
223,995
40,000
263,995
2024
£
19,458
50,267
69,725		 2023
£
208,032
-
208,032
2023
£
-
-
-

Solo Housing has various ongoing leases in connection with residential property ranging from 6 months to 7 years. However, they are only committed for a period of six months. Other non-residential property leases exist with ongoing commitments.

In addition to the above the organisation leases 9 properties for which no expenditure is included within these accounts as the properties are managed by The Benjamin Foundation.

22 Other Commitments

A significant unplanned cost was identified in respect of an asset located at 1-2 Denmark Street, Diss, where the main drains collapsed requiring all tenants to be moved out for extensive repairs to be completed and expended in 2024/25 at a cost of around £54,000.

27

Solo Housing (East Anglia) (A Company Limited by Guarantee)

Notes to the Accounts

For the year ended 31 March 2024

23 Related Party Transactions

One of the Board members purchased an obsolete item of IT equipment from the organisation for £75.

24 Members Liability

In the event of winding up the Organisation, the Member’s Liability is limited to £1 each.

25 Legislative Provisions

The organisation is a Registered Charity formed under the Companies Act 2006. Registered Charity number 1068017. The organisation is registered with the Regulator of Social Housing and its Registered number is 4696.

28